Q.
(a) Describe the macro environmental forces that may affect the marketing plan of property development company. (15 marks)
(b) Discuss two (2) factors that may affect the marketing decision. (10 marks)
(25 marks, 2016 Q3)
A.
(a) Macro environment forces
Government policies, General economic trend, , Social structure, Technology, Environmental issues and Legal matters. In short they are PESTEL factors.
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(b) 2 Factors which affect marketing decision
They are environmental (external) conditions and internal (self) readiness of the organization.
Environmental (external) factors are like general economic conditions of the market. The cyclical condition of housing market is an example. A lot of developers would hold on to launching projects during the 'winter' period of the housing market. Their marketing strategy would also change during this winter period as most house buyers would be fence sitters or bystanders. House buyers would be scarce as housing loans or mortgages are hard to come by. Expensive projects like high end bungalow and luxury condominium will not be the preferred product type. Marketers of developers would have to change the decision to build smaller size, thus cheaper products rather than premium priced properties.
Internal (self) readiness of the organization is also another factor which may determine the marketing decision of the company. For example, a company with tight cash flow would have to do project promotion within a limited budget. Thus, self employed sales staff and large scale sales galleries would be too expensive to maintain. In this cash tight condition, marketing decision may need to change to using third party realty agents and brokerage firms instead of having own marketing team. Due to this third party marketing promotion, may be the marketing theme of the company would have to be inline with the promotional aspiration of the third party realty agents.
Ref:
[x] Own account.