Q.
a) Explain briefly the common marketing functions in real estate. (5 marks)
b) Discuss how real estate characteristics may influence the roles and functions of real estate marketing. (20 marks)
(25 marks, 2011 Q2)
A.
Exact repeat in 2018 Q2
a) first, the definition of marketing function is adopted as:
"A role that helps a company to identify and source potentially successful products for the marketplace and then promote them by differentiating them from similar products. Typical marketing function types within a larger business might include performing market research, producing a marketing plan, and product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations."
(Business Dictionary: Marketing function available from;- http://www.businessdictionary.com/definition/marketing-function.html)
Abdul Hamid Mar Iman in his book "An introduction to property marketing" had the following explanation on common marketing functions in real estate.
[However, before we answer the above question, let's ask a more direct question: why in the first place there is the need to use marketing for real estate?
This is because in producing a product for a consumption, likewise any production of goods and services would be efficient and more effective if the supply is to meet the demand for that goods or services. It is in a nutshell, an economic problem of supplying the required item to the rightful consumers, in an accurate quality and quantity, for the best economic outcome of sustainability and less wastage.]
Therefore, Abdul Hamid in his book above analyzed economic functions as solutions to this issue of meeting the required demand in real estate. The two common functions are:
- Buying and selling - which means exchange function, between sellers and buyers and,
- The activities in facilitating such exchange - usually the lawyers, bankers and brokers.
b) (23.09.2018)
See 2018 Q2b for an updated answer.
OLD ANSWER BELOW
Role and functions of various stakeholders in real property transactions. It is from sellers approaching the brokers, advertising the property for sale, to soliciting for a buyer, and successful sales through the financier, lawyers and the land office.
Ref:
Abdul Hamid, Mar Iman (2002) An Introduction to Property Marketing. Penerbit UTM.
http://books.google.com.my/books?id=tMd6YlcXzMYC&pg=PA6&lpg=PA6&dq=marketing+functions+in+property&source=bl&ots=Cozj8a9N6u&sig=rBY3_8FrMhTSPUfgLXQpdkxeviM&hl=en&sa=X&ei=wjjCU6f_PMOxuATYkYDACQ&ved=0CCkQ6AEwBg#v=onepage&q=marketing%20functions%20in%20property&f=false
Hence, some would likely equate 'marketing function' as 'functions of marketing'. This way of thinking puts marketing mix as core marketing functions - things which we do to increase or strategize activities of marketing.
Thus analogy can be said like equipment function. So, a tool is a noun like 'marketing' and its ability to be used are various 'functions' it can be utilized to perform. For example, a rice cooker is a tool. It's functions are cooking rice, steam pastries, cook porridge, etc.
Common marketing functions in real estate are:
In this context of marketing in real estate, the analogy of a "house" to a "tool" in its functions would be like its good locality, size, capacity, and built.
The jargon to be used in marketing of real estate would be like "proximity to amenities", "ambience of up market neighborhood", "solid and well constructed", "family home to three generations".