Commercial Real Estate Situation Analysis

You begin to develop your commercial real estate marketing strategy the same way you usually begin a marketing strategy (Exhibit 30.2), with a Situation Analysis that covers 1. Customers. Potential sellers and buyers 2. Competitors. Other organizations vying for the business 3. Organization. The capabilities of your organization what you are good at and not so good at 4. Environment. The key players and key trends in your marketplace what you think will happen next All these areas have been...

Conclusions

Commercial real estate consists of many different types of property, each requiring its own expertise. The commercial real estate practitioner must be clear as to what types of property he or she will handle. In addition, he or she must decide what types of services to provide. These choices form the basis of their business strategy. Their marketing strategy needs to define their customer targets and their positioning. In turn, that marketing strategy orchestrates all the activities required to...

Conducting Marketing Research

Marketing research is the eyes and ears of marketing. Many marketing failures can be traced to not understanding customers, not understanding competitors, or not understanding trends in the competitive environment. Marketing research can be highly sophisticated and expensive. However, you can also learn a lot from much more modest techniques. Simply talking to your customers can provide a very high payoff in terms of knowledge about their needs, about what competitors might be doing, and about...

Current Customer Strategies

Strategies focused on current customers and current products are in the upper left cell of Exhibit 32.1. To maintain current customers, you need to think of them as individuals, and you need especially to understand how and why they behave. If you feel you do not know your customers as well as you would like, then you need to do some marketing research. (See Chapter 36 for suggestions on designing such a study.) Retaining Customers with Personalized Service The Attache Department was first...

Farming

Residential real estate farming consists largely of cold calling and can be difficult work. You need to target part of your geographical area and cover homes in that area. If you call at homes in person, be prepared for a fair amount of rejection. Most people are not sitting in their living room waiting for an agent to arrive and ask them if and when they are going to sell their home. Telephone contacts are more efficient except rapport may be harder to establish during a telephone call than if...

Focus of Marketing Research

The purpose of marketing research is to help you make better marketing decisions. (For an overview, see Malhotra and Birks.1) Marketing research can be focused on all the players and drivers that affect the marketing performance of the organization (see Exhibit 8.1.) These include end-users, resellers, competitors, suppliers, and trends. Much of marketing research focuses on customers their needs, their attitudes, and their behavior. End-user studies include Segmentation Characteristics that...

Managing Your Marketing Programs

Y ou implement your marketing strategy with your marketing programs. The most common programs are design, advertising (including the Internet), identifiers (for example, name, logo), sales promotion, personal selling, public relations, pricing, and distribution. These programs are often referred to as the marketing mix. Each marketing program has its own strategy. For a marketing strategy to be successful, all marketing program strategies must be executed well and they must all support the...

Marketing 101

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Primary Data

You may collect data with random or nonrandom sampling. When you use random sampling, typically the data you obtain can be analyzed with various statistical tests and can be extrapolated to all customers, resellers, suppliers, or competitors. If you do not use random sampling, then usually you cannot generalize from the data you collected. Data obtained without random sampling are used primarily to uncover ideas and hypotheses that you can later check with data from randomly selected samples. A...

Product Service Design

Good design, from a marketing perspective, means tailoring your product or service so that it successfully meets the needs of your target customers. A sales-oriented organization sells what they make a marketing-oriented organization makes what will sell. The difference between the two is design. In this chapter you will learn how to systematically evaluate your design compared with those of your competitors and how to determine the ways you can make the design of your product or service more...

Prospecting

Your first step in prospecting is to target a market (or, possibly, a few markets). Especially in commercial real estate, it is very difficult to be everything to everyone. Trying to cover numerous types of properties will cause you to try to be an expert in many areas and you may end up not being an expert in any one of them. For example, if you are dealing mainly with Class A or B high-rise office buildings, you probably would find it difficult to be an expert on garden apartment buildings....

Sales Strategy The Strategy of the Sales Manager

The strategy for personal selling is known as the sales strategy. An effective sales strategy provides a plan for where and how members of a sales force will spend their time, especially their time interacting with customers. The sales strategy described here is the strategy that the manager of a team of sales representatives develops and uses. Note that there are similar sales strategies for national or regional sales managers, or for the sales representatives themselves. Each of those...

Target Return on Investment Pricing

The target return on investment (ROI) pricing approach can make sense in situations that are not open market. The process starts by defining a specific return desired for the investment being made. Given that target ROI, financial calculations are made to determine the price that would need to be charged. The main problem with this method is that the volume needs to be known before the price is set. In an open-market situation, price influences demand, and you cannot estimate demand without...

Types of Data

Data consists of either primary or secondary data. Primary data is what marketing managers or their colleagues collect. Secondary data is what someone else, such as an information service, collects. Secondary data is often purchased from a research firm and therefore is usually cheaper collecting the data yourself. The main disadvantage of secondary data is that it may not be exactly what you want. Also you may not know how it was collected, so you may not know how reliable it is. Primary data...

Competitive Parity Pricing

With the competitive parity pricing approach, you simply match the prices ofyour competitors. The first problem is that you may ignite a price war, which no one will win except perhaps the customers. The second problem is that, if you price at the same level as a competitor, what are you suggesting to the customer Often, the customer will assume the two offerings are the same and there is no need to compare them. If you have a strong position for your product or service, you want your customers...

Increasing Your Customer Satisfaction

What is the one thing you need to have a business Is it a product A factory A service A license Inventory A location Employees The one thing you need to have a business is a customer. A customer is someone who thinks your product or service is worth paying for and who purchases it. Without customers, there is no revenue, no profits, and no cash flow, and therefore no business. Satisfying your customers should be at the heart of your marketing efforts although keep in mind you need to do so at a...

Advertising Objectives

Advertising Objectives

The objectives of an advertising strategy are what you would like the customer to do, think, or feel as a result of the advertising. Advertising objectives include both action objectives for your target customers, such as trying the product or repurchasing the product, and intermediate objectives, such as awareness or preference Exhibit 19.2 . Advertising objectives are not the same as the business objectives in your product market strategy such as market share or profitability, but they need...