Auctioneering, Valuation & Estate Agency

Marketing

Lecture 1 Evelyn Casey ecasey@engineersireland.ie

Marketing Syllabus
This module provides a practical understanding

of the principles of marketing as applied to the property market. A general understanding of marketing is important for Auctioneers/Estate Agents The module is designed to equip students with the knowledge to enable them to participate fully in the marketing strategy of an estate agency firm/property developer

Why study marketing?

An era of increasing competition and
increasingly demanding customers, The task of gaining and retaining customers is a central business activity. The marketing function is concerned with identifying, anticipating and meeting customer needs and requirements.

Defining Marketing
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. (Kotler
2000)

Defining Marketing
Marketing is the process of building profitable customer relationships by creating value for customers and capturing value in return (Kotler 2009)

Marketing Objective
The objective of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. (Kotler, 2008)

Definition of a Market
The set of all actual and potential buyers of a product or services (Kotler 1987)

The Marketing Process

The Marketing Process

The most basic concept underlying marketing is that of human needs

The Marketing Process

Needs a state of felt

deprivation Wants - Form taken by human needs influenced personality & culture Demand - purchasing power to satisfy needs, trade off to gain greatest satisfaction.

The Marketing Process

People satisfy needs & wants with
products & services

What is a product?
What is a service?

The Marketing Process

A product is anything offered to satisfy a
need or want.

The Marketing Process

A service is any activity or benefit that one
party can offer to another that is essentially intangible and does not result in ownership of anything.

http://www.lisney.com/Property-Services/Property-Services-Property-Management.aspx

The Marketing Process

Customer Value is the difference between the value the customer gains from owning and using product and the costs obtaining the product.

The Marketing Process

Customer Satisfaction is the extent to which a products perceived performance in delivering value matches a buyers expectations.

The Marketing Process

Marketing occurs when people decide to
satisfy needs and wants through exchange relationships.
Exchange: the act of obtaining a desired object from someone by offering something in return. Transactions: trading values between 2 parties not necessarily monetary Relationships: Evolves from exchange concept to relationship development develops win-win into an asset.

Connecting with Consumers

Market Segmentation dividing a market
into distinct groups with distinct needs, characteristics or behaviour who might require separate products or marketing mixes.

Connecting with Consumers

Market Segment A group of consumers
who respond in a similar way to a given set of marketing efforts.

Connecting with Consumers

Market Targeting the process of
evaluating each market segment attractiveness and selecting one or more segments to enter.

Connecting with Consumers

Market Positioning Arranging for a product to
occupy a clear, distinctive and desirable place relative to competing products in the minds of the targets consumers.

The Marketing Mix

Preparing a Marketing Plan

A marketing plan is a written document
containing the guidelines for the business units marketing programs and allocations over the planning period. (Lehman and Winer 2002) A marketer applies the 4 Ps to create a marketing plan. http://www.castlesproperty.co.uk/downloa ds/Castles_Marketing_Plan.pdf

Microenvironment
The The Microenvironment Microenvironment
Company Company Publics Publics
Forces Forces Affecting Affecting a a Company s Company s Ability Ability to to Serve Serve Customers Customers
3-4 3-4

Suppliers Suppliers

Competitors Competitors Customers Customers

Intermediaries Intermediaries

Copyright 1999 Prentice Hall

Macro Environment
The The Macroenvironment Macroenvironment
Demographic Demographic Cultural Cultural
Forces Forces that that Shape Shape Opportunities Opportunities and and Pose Pose Threats Threats to to a a Company Company
3-8 3-8

Economic Economic

Political Political Technological Technological

Natural Natural

Copyright 1999 Prentice Hall

Marketing Research
The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing an organisation
Armstrong & Kotler 2002

New Product Development

1. 2. 3. 4. 5. 6. 7. 8.
Idea Generations Idea Screening Concept development Marketing strategy Business Analysis Product development Test marketing Commercialisation

Consumer Buyer Behaviour

Consumer Buyer Behaviour
the buying behaviour of final consumers individuals and consumers who buy goods & services for personal consumption

Marketing Management
Marketing management is the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organisations objectives.

Marketing Communications Mix (The Promotion Mix)

The specific mix of advertising, personal selling, sales promotion and public relations a company uses to pursue it advertising and marketing objectives
Kotler, 2003

Integrated Marketing Communications

The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organisation and its products
Kotler, 2003

Marketing Communications
1. 2. 3. 4. 5.
Advertising Sales Promotion Public Relations Personal Selling Direct Marketing

Strategic Planning
Process of developing and maintaining a strategic fit between the organisations goals and capabilities and its changing marketing opportunities.

Services Marketing is different

All services are characterised by unique
features which makes marketing and selling more difficult than product marketing and selling

any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything (Kotler, 2000)

Objectives of Advertising
1. To inform to build
awareness of new product or service 2. To persuade perhaps to switch brand or affect behavioural dimension 3. To remind used in the mature stage of the product life cycle

Branding
Brand name selection a good name can
add greatly to a products success, however is a difficult task Desirable qualities of a brand name

The Product Life Cycle

a concept to describe how products
progress from introduction through to obsolescence (Kotler, 2003) The course of a products sales and profits over its lifetime. It involves four distinct stages:

Marketing Management Philosophies

1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concepts

Production Concept
The philosophy that consumers will favour products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiencies.
(Kotler 2000)

The Product Concept

The idea that consumers will favour products that offer the most quality, performance and features that the organisation should therefore devote its energy to making continuous product improvements. (Kotler 2000)

The Selling Concept

The idea that consumers will not buy enough of the organisations products unless the organisation undertakes a large scale selling and promotion effort.
(Kotler 2000)

The Marketing Concept

The marketing management philosophy that holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. (Kotler 2000)

The Societal Marketing Concept

The idea that the organisation should determine the needs, the wants and interests of targets markets and deliver the desired satisfactions more effectively and efficiently than do competitors in a way that maintains or improves the consumers and society's well being. (Kotler 2000)

Marketing Vs Selling
Selling How do I convert this product to
cash? Marketing How do I find consumer needs and fill them better than anyone else? Selling is short term, marketing is not. Selling is a function of marketing.

Marketing Challenges
1. Getting better financial measures of 2. 3.
the impact of marketing programs. Developing more integrated information about important customers. Getting marketing to be the companys designer and driver of marketing strategy. Facing lower cost/higher quality competitors Coping with the increasing power and demands of mega distributors.

4.
5.

Strategic Planning & The Marketing Process

The process of developing and maintaining a strategic fit between the organisations goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio and coordinating functional strategies.

Strategic Planning & The Marketing Process

1. Defining the Companys business &
mission
What is our business? Who is the customer? Who do consumers value? What should our business be?

Mission Statement a statement of the organisations

purpose, what it wants to accomplish in the larger environment.

Mission Statement
Mission Statement We are committed to serve the real estate needs of our clients through the highest levels of professionalism, creativity and service. We execute our transactions through a true team approach and avoid conflicts of interest. These commitments, together with diligence in execution and unparalleled experience, are what distinguish Savills US from our competitors.

Mission Statement
MISSION STATEMENT Our goal is to be universally recognized as the leading provider of real estate solutions for companies at the crossroads of technology, telecommunications and real estate. To that end, we have created an operational platform that seamlessly unites industry experts from every major market around the world with CB Richard Ellis' broad service offerings - enabling our clients to quickly identify and seize opportunities, enhance competitive advantage, and add value to their bottom line.

Strategic Planning & The Marketing Process

1. Setting Company Objectives and Goals
Mission is then turned into detailed supporting objectives for each level of management.
CBRE, Capital Markets

"The objective of the Capital Markets team at CB Richard Ellis is to create innovative and robust investment and funding solutions to facilitate the broader real estate objectives of both developers and investors".

Strategic Planning and The Marketing Process

Designing the Business Portfolio
Business Portfolio the collection of businesses and
products that make up the company. Portfolio Analysis a tool by which management identifies and evaluates the various businesses making up the company.

Jones Lang LaSalle

CB Richard Ellis

Strategic Planning and The Marketing Process

Designing the Business Portfolio & Analysing the Current Business Portfolio
The Boston Consulting Group Approach Portfolio planning method that evaluates a
companys strategic business units in terms of their market growth rate and relative market share Stars, cash cows, question marks or dogs.

Boston Consulting Group Approach

Product Strategies for Growth

Ansoffs Matrix
Market Penetration Market Development Product Development Diversification

Exam & Assignments

Module 1
Exam 60% Assignment 40%

Module 2
Exam 60% Assignment 40%