Lecture 1

MarketingMarketingAuctioneering, Valuation & Estate AgencyAuctioneering, Valuation & Estate Agency

Lecture 1Lecture 1

Evelyn CaseyEvelyn [email protected]

mailto:[email protected]

Marketing SyllabusMarketing Syllabus

• This module provides a practical This module provides a practical understanding of the principles of marketing understanding of the principles of marketing as applied to the property market.as applied to the property market.

• A general understanding of marketing is A general understanding of marketing is important for Auctioneers/Estate Agentsimportant for Auctioneers/Estate Agents

• The module is designed to equip students The module is designed to equip students with the knowledge to enable them to with the knowledge to enable them to participate fully in the marketing strategy of participate fully in the marketing strategy of an estate agency firm/property developeran estate agency firm/property developer

Why study marketing? Why study marketing?

• An era of increasing competition and An era of increasing competition and increasingly demanding customers, increasingly demanding customers,

• The task of gaining and retaining The task of gaining and retaining customers is a central business activity. customers is a central business activity.

• The marketing function is concerned The marketing function is concerned with identifying, anticipating and with identifying, anticipating and meeting customer needs and meeting customer needs and requirements.requirements.

Defining MarketingDefining Marketing

Marketing is a societal process by Marketing is a societal process by which individuals and groups obtain which individuals and groups obtain what they need and want through what they need and want through

creating, offering, and freely creating, offering, and freely exchanging products and services of exchanging products and services of

value with others. value with others. (Kotler 2000)(Kotler 2000)

Defining MarketingDefining Marketing

Marketing is the process of building Marketing is the process of building profitable customer relationships by profitable customer relationships by

creating value for customers and creating value for customers and capturing value in return (Kotler capturing value in return (Kotler

2009)2009)

Marketing ObjectiveMarketing Objective

““The objective of marketing is to The objective of marketing is to attract new customers by promising attract new customers by promising superior value and to keep and grow superior value and to keep and grow

current customers by delivering current customers by delivering satisfaction”.satisfaction”. (Kotler, 2008) (Kotler, 2008)

Definition of a MarketDefinition of a Market

““The set of all actual and potential The set of all actual and potential buyers of a product or services”buyers of a product or services”

(Kotler 1987)(Kotler 1987)

The Marketing ProcessThe Marketing Process


The most basic concept underlyingThe most basic concept underlyingmarketing is that of human needsmarketing is that of human needs


• Needs – a state of felt Needs – a state of felt deprivationdeprivation

• Wants - Form taken by Wants - Form taken by human needs – human needs – influenced personality & influenced personality & cultureculture

• Demand - purchasing Demand - purchasing power to satisfy needs, power to satisfy needs, trade off to gain greatest trade off to gain greatest satisfaction. satisfaction.


• People satisfy needs & wants with People satisfy needs & wants with products & servicesproducts & services

• What is a product?What is a product?

• What is a service?What is a service?


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


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

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




Customer ValueCustomer Value is the difference is the difference between the value the customer between the value the customer

gains from owning and using product gains from owning and using product and the costs obtaining the product. and the costs obtaining the product.


Customer Satisfaction is the extent to Customer Satisfaction is the extent to which a products perceived which a products perceived

performance in delivering value performance in delivering value matches a buyers expectations. matches a buyers expectations.


• Marketing occurs when people Marketing occurs when people decide to satisfy needs and wants decide to satisfy needs and wants through exchange relationships. through exchange relationships. – ExchangeExchange: the act of obtaining a desired : the act of obtaining a desired

object from someone by offering something in object from someone by offering something in return. return.

– Transactions:Transactions: trading values between 2 trading values between 2 parties – not necessarily monetaryparties – not necessarily monetary

– Relationships:Relationships: Evolves from exchange Evolves from exchange concept to relationship development – concept to relationship development – develops win-win into an asset. develops win-win into an asset.

Connecting with ConsumersConnecting with Consumers

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


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


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


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

The Marketing MixThe Marketing Mix

Preparing a Marketing PlanPreparing a Marketing Plan

• ““A marketing plan is a written document A marketing plan is a written document containing the guidelines for the business containing the guidelines for the business unit’s marketing programs and allocations unit’s marketing programs and allocations over the planning period.” (Lehman and over the planning period.” (Lehman and Winer 2002) Winer 2002)

• A marketer applies the 4 P’s to create a A marketer applies the 4 P’s to create a marketing plan. marketing plan.

•http://www.castlesproperty.co.uk/downloads/Castles_Marketing_Plan.pdf

http://www.castlesproperty.co.uk/downloads/Castles_Marketing_Plan.pdf

http://www.castlesproperty.co.uk/downloads/Castles_Marketing_Plan.pdf

MicroenvironmentMicroenvironment

Copyright 1999 Prentice Hall

3-43-4

The MicroenvironmentThe Microenvironment

CompanyCompany

CustomersCustomers

PublicsPublics SuppliersSuppliers

CompetitorsCompetitors IntermediariesIntermediaries

Forces Affecting a Company’s Ability to

ServeCustomers

Forces Affecting a Company’s Ability to

ServeCustomers

Macro Environment Macro Environment

Copyright 1999 Prentice Hall

3-83-8The MacroenvironmentThe Macroenvironment

DemographicDemographic

TechnologicalTechnological

CulturalCultural EconomicEconomic

PoliticalPolitical NaturalNatural

Forces that ShapeOpportunities

and Pose Threatsto a Company

Forces that ShapeOpportunities

and Pose Threatsto a Company

Marketing ResearchMarketing Research

““The systematic design, The systematic design, collection, analysis, collection, analysis,

and reporting of data and reporting of data and findings relevant to and findings relevant to

a specific marketing a specific marketing situation facing an situation facing an

organisation” organisation”

Armstrong & Kotler 2002Armstrong & Kotler 2002

New Product DevelopmentNew Product Development

1.1. Idea GenerationsIdea Generations

2.2. Idea ScreeningIdea Screening

3.3. Concept development Concept development

4.4. Marketing strategyMarketing strategy

5.5. Business AnalysisBusiness Analysis

6.6. Product developmentProduct development

7.7. Test marketingTest marketing

8.8. CommercialisationCommercialisation

Consumer Buyer BehaviourConsumer Buyer Behaviour

• Consumer Buyer BehaviourConsumer Buyer Behaviour

““the buying behaviour of the buying behaviour of final final consumers – consumers – individuals and consumers who buy goods individuals and consumers who buy goods & services for personal consumption”& services for personal consumption”

Marketing Marketing ManagementManagement

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

objectives. objectives.

Marketing Communications Marketing Communications Mix (The Promotion Mix)Mix (The Promotion Mix)

““The specific mix of The specific mix of advertising, personal advertising, personal

selling, sales promotion selling, sales promotion and public relations a and public relations a

company uses to company uses to pursue it advertising pursue it advertising

and marketing and marketing objectives”objectives”

Kotler, 2003Kotler, 2003

IntegratedIntegratedMarketing Communications Marketing Communications

““The concept under which a company The concept under which a company carefully integrates and coordinates carefully integrates and coordinates its many communications channels its many communications channels to deliver a clear, consistent, and to deliver a clear, consistent, and

compelling message about the compelling message about the organisation and its products”organisation and its products”

Kotler, 2003Kotler, 2003

Marketing Marketing CommunicationsCommunications

1.1. AdvertisingAdvertising

2.2. Sales PromotionSales Promotion

3.3. Public RelationsPublic Relations

4.4. Personal SellingPersonal Selling

5.5. Direct MarketingDirect Marketing

Strategic PlanningStrategic Planning

Process of developing and maintaining Process of developing and maintaining a strategic fit between the a strategic fit between the

organisations goals and capabilities organisations goals and capabilities and its changing marketing and its changing marketing

opportunities. opportunities.

Services Marketing is differentServices Marketing is different

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

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

Objectives of Advertising Objectives of Advertising

1.1. To inform – to build To inform – to build awareness of new awareness of new product or serviceproduct or service

2.2. To persuade – perhaps to To persuade – perhaps to switch brand or affect switch brand or affect behavioural dimension behavioural dimension

3.3. To remind – used in the To remind – used in the mature stage of the mature stage of the product life cycleproduct life cycle

BrandingBranding

• Brand name selection – a good name Brand name selection – a good name can add greatly to a products can add greatly to a products success, however is a difficult tasksuccess, however is a difficult task

• Desirable qualities of a brand nameDesirable qualities of a brand name

The Product Life CycleThe Product Life Cycle

• ““a concept to describe how a concept to describe how products products progressprogress from introduction from introduction through to obsolescence” (Kotler, through to obsolescence” (Kotler, 2003) The course of a products 2003) The course of a products sales and profits over its lifetime. sales and profits over its lifetime.

• It involves four distinct stages: It involves four distinct stages:

Marketing Management Marketing Management PhilosophiesPhilosophies

1.1.Production ConceptProduction Concept

2.2.Product ConceptProduct Concept

3.3.Selling ConceptSelling Concept

4.4.Marketing ConceptMarketing Concept

5.5.Societal Marketing ConceptsSocietal Marketing Concepts

Production ConceptProduction Concept

““The philosophy that The philosophy that consumers will favour consumers will favour

products that are available products that are available and highly affordable and and highly affordable and that management should that management should

therefore focus on therefore focus on improving production and improving production and distribution efficiencies.” distribution efficiencies.”


The Product ConceptThe Product Concept

““The idea that consumers will favour The idea that consumers will favour products that offer the most quality, products that offer the most quality, performance and features that the performance and features that the

organisation should therefore devote organisation should therefore devote its energy to making continuous its energy to making continuous product improvements”. product improvements”. (Kotler (Kotler

2000)2000)

The Selling ConceptThe Selling Concept

““The idea that The idea that consumers will not buy consumers will not buy

enough of the enough of the organisations products organisations products unless the organisation unless the organisation

undertakes a large undertakes a large scale selling and scale selling and

promotion effort.”promotion effort.”


The Marketing ConceptThe Marketing Concept

““The marketing The marketing management philosophy management philosophy that holds that achieving that holds that achieving

organisational goals organisational goals depends on determining depends on determining the needs and wants of the needs and wants of

target markets and target markets and delivering the desired delivering the desired

satisfactions more satisfactions more effectively and efficiently effectively and efficiently

than competitors do.” than competitors do.” (Kotler 2000)(Kotler 2000)

The Societal Marketing The Societal Marketing ConceptConcept

““The idea that the The idea that the organisation should organisation should

determine the needs, the determine the needs, the wants and interests of wants and interests of

targets markets and deliver targets markets and deliver the desired satisfactions the desired satisfactions

more effectively and more effectively and efficiently than do efficiently than do

competitors in a way that competitors in a way that maintains or improves the maintains or improves the consumers and society's consumers and society's well being”. well being”. (Kotler 2000)(Kotler 2000)

Marketing Vs SellingMarketing Vs Selling

• Selling – “How do I convert this Selling – “How do I convert this product to cash?”product to cash?”

• Marketing – “How do I find consumer Marketing – “How do I find consumer needs and fill them better than needs and fill them better than anyone else?” anyone else?”

• Selling is short term, marketing is not. Selling is short term, marketing is not.

• Selling is a function of marketing. Selling is a function of marketing.

Marketing ChallengesMarketing Challenges

1.1. Getting better financial measures of the Getting better financial measures of the impact of marketing programs. impact of marketing programs.

2.2. Developing more integrated Developing more integrated information about important customers. information about important customers.

3.3. Getting marketing to be the company’s Getting marketing to be the company’s designer and driver of marketing designer and driver of marketing strategy. strategy.

4.4. Facing lower cost/higher quality Facing lower cost/higher quality competitorscompetitors

5.5. Coping with the increasing power and Coping with the increasing power and demands of mega distributors. demands of mega distributors.

Strategic Planning & The Strategic Planning & The Marketing ProcessMarketing Process

““The process of developing and maintaining a The process of developing and maintaining a strategic fit between the organisations goals and strategic fit between the organisations goals and

capabilities and its changing marketing capabilities and its changing marketing opportunities. It involves defining a clear opportunities. It involves defining a clear

company mission, setting supporting objectives, company mission, setting supporting objectives, designing a sound business portfolio and designing a sound business portfolio and

coordinating functional strategies”. coordinating functional strategies”.

Strategic Planning & The Strategic Planning & The Marketing ProcessMarketing Process

1.1.Defining the Company’s business & Defining the Company’s business & missionmission– What is our business? What is our business? – Who is the customer?Who is the customer?– Who do consumers value?Who do consumers value?– What should our business be?What should our business be?

• Mission Statement – a statement of the Mission Statement – a statement of the organisations purpose, what it wants to organisations purpose, what it wants to accomplish in the larger environment. accomplish in the larger environment.

Mission Statement Mission Statement

Mission StatementMission Statement

• We are committed to serve the real estate needs We are committed to serve the real estate needs of our clients through the highest levels of of our clients through the highest levels of professionalism, creativity and service. We professionalism, creativity and service. We execute our transactions through a true team execute our transactions through a true team approach and avoid conflicts of interest.approach and avoid conflicts of interest.

• These commitments, together with diligence in These commitments, together with diligence in execution and unparalleled experience, are what execution and unparalleled experience, are what distinguish Savills US from our competitors.distinguish Savills US from our competitors.

Mission Statement Mission Statement

MISSION STATEMENTMISSION STATEMENT

• Our goal is to be universally recognized as the leading Our goal is to be universally recognized as the leading provider of real estate solutions for companies at the provider of real estate solutions for companies at the crossroads of technology, telecommunications and crossroads of technology, telecommunications and real estate.real estate.

• To that end, we have created an operational platform To that end, we have created an operational platform that seamlessly unites industry experts from every that seamlessly unites industry experts from every major market around the world with CB Richard Ellis' major market around the world with CB Richard Ellis' broad service offerings - enabling our clients to quickly broad service offerings - enabling our clients to quickly identify and seize opportunities, enhance competitive identify and seize opportunities, enhance competitive advantage, and add value to their bottom line.advantage, and add value to their bottom line.

Strategic Planning & The Strategic Planning & The Marketing ProcessMarketing Process1.1.Setting Company Objectives and GoalsSetting Company Objectives and Goals

– Mission is then turned into detailed Mission is then turned into detailed supporting objectives for each level of supporting objectives for each level of management. management.

CBRE, Capital Markets"The objective of the Capital Markets team at CB RichardEllis is to create innovative and robust investment andfunding solutions to facilitate the broader real estateobjectives of both developers and investors".

Strategic Planning and The Strategic Planning and The Marketing ProcessMarketing Process

Designing the Business PortfolioDesigning the Business Portfolio• Business Portfolio – the collection of businesses Business Portfolio – the collection of businesses

and products that make up the company. and products that make up the company.

• Portfolio Analysis – a tool by which management Portfolio Analysis – a tool by which management identifies and evaluates the various businesses identifies and evaluates the various businesses making up the company. making up the company.

Jones Lang LaSalleJones Lang LaSalle

CB Richard EllisCB Richard Ellis

Strategic Planning and The Strategic Planning and The Marketing ProcessMarketing Process

Designing the Business Portfolio & Designing the Business Portfolio & AnalysingAnalysing

the Current Business Portfoliothe Current Business Portfolio– The Boston Consulting Group ApproachThe Boston Consulting Group Approach

•Portfolio planning method that evaluates a Portfolio planning method that evaluates a companys strategic business units in terms companys strategic business units in terms of their market growth rate and relative of their market growth rate and relative market sharemarket share

•Stars, cash cows, question marks or dogs. Stars, cash cows, question marks or dogs.

Boston Consulting Group Boston Consulting Group ApproachApproach

Product Strategies for Product Strategies for Growth Growth

• Ansoffs MatrixAnsoffs Matrix– Market Penetration Market Penetration – Market DevelopmentMarket Development– Product DevelopmentProduct Development– DiversificationDiversification

Exam & AssignmentsExam & Assignments

• Module 1Module 1– Exam 60%Exam 60%– Assignment 40%Assignment 40%

• Module 2Module 2– Exam 60%Exam 60%– Assignment 40%Assignment 40%

Lecture 1

Business

marketing marketing

marketing process marketing

marketing plan

objective of marketing

marketing auctioneering

marketing research

marketing syllabus

marketing communicationsmix