Q.
After deciding the overall marketing strategy, a marketing organization would be planning the marketing mix which comprises controllables and tactical marketing tools to produce the response it wants from the target market.
a) Discuss the four (4) marketing mix that the property organization can utilize in influencing the demand for its products and services. (20 marks)
b) Clarify the concern that the marketing mix only addresses the seller's view of the market and not the buyer's view. (5 marks)
(25 marks, 2017 Q3)
A.
a) 4 marketing mix for property organization
Refer to below question for reading.
2011 Q5
In summary, 4 marketing mix are Product, Promotion, Pricing and Placing. Of course, more modern concept of '7 P' consists of People, Processes and Physical Evidence. There is even another 8th P called Productivity & Quality.
See another post on Marketing Mix - How many "P"s?
Despite so many Ps, the answer below tries to apply the 4 relevant Ps in property industry for the purpose of illustration. Inevitably, not all P are best tools in marketing of property. There is better applicability of certain P over the others. These Ps are most appropriate here. For example, Place as a P would not be much of a variable factor to look at as property cannot be moved around like other products. Nevertheless, it is a key success factor in marketing of fast moving consumer goods (FMCG).
Price - Price is a very important marketing mix for properties. Pricing strategy would have to work with product type in selling properties. It is the biggest item in price for most people in life. Of course, pricing strategy should be targeted at a segment of the market. Not everybody can afford premium products, neither everyone is satisfied with low cost housing. Therefore, a good pricing strategy would make the selling much easier and the biggest barrier - which is price, can be targeted to a segment of the market. The product with such price would have best uptake by people of the targeted income category.
Product - Properties are now more than just a roof and 4 walls. Today, myriad of properties cloud the buyer's eyes. A good product strategy would facilitate the marketing of a niche product distinct from its competitions. Hence, product of right size, convenience of amenities and location (perceived as a product feature) are important considerations for molding its strategy. For example, a commercial plot nearby a college or university would be promoted for food business, eateries, entertainment hubs and sold to investors with foresights of building a entertainment centre. On the other hand, a product like industrial warehouse would be emphasized for its high ceiling, its wide landing for loading and unloading, rather than its proximity of entertainment hub, etc.
Promotion - Activities as how to market the product to the right audience is key to the success of the enterprise, more so for fast moving goods and services. Although property is not a fast moving product, it is no doubt still an important promotional strategy. Going out to the public without a promotional strategy is like shooting blankly into thin air. The cost of promotion is enormous, and thus a targeted promotion with a marketing budget would be crucial to the marketing plan. For example, selling property like agriculture land would not require mass advertisement of billboard or newspaper, rather it would be effective advertising in some agriculture magazine or putting up flyers in the community hall of some agricultural expo. Even spreading the words around in the pasar tani (farmers' market) would probably be more effective than advertising in Facebook. Having showhouse, having sales gallery or promoting via online portal are all what promotional mix can focus to reach its target group.
People - Human resource is a marketing mix only in recent time. The key reason is because of networking. Marketing is a human-human interaction. Especially with social media nowadays, people become an important determinant to a successful marketing programme. Having a well trained sales team, a talent pool of innovative sales people and executing the marketing plan in a collective and cohesive manner would achieve synergy with other marketing mixes. A good price, good product and good promotional theme without the right people also cannot achieve the target goal in the shortest time. That would have handicapped execution which can be detriment to the entire marketing plan. Some of the shortfalls can be difficult to revert. For example, a good plan has been designed, but people are not rolling it out. Lost of subscribers to competitor would mean lost of revenue. These subscribers would be hard to switch back as they are committed to contracts of competitors. This happens a lot in the Telco industry.
b) Clarify seller's and not buyer's view
Marketing mix is essentially the elements a business tries to adjust to reach its objectives. For example, the business aspires to be the leader in automobiles. The marketing mix would be the different aspects of the business position that it wants its customer to visualize or perceive.
At the end, the customer may or may not perceive that position as market has its own idiosyncrasies. For example, automobile manufacturer A wants to establish its brand as family car for the riches. So, it designs small units of fuel efficient car. The market may not view it that way. The market from the buyer's perspective may eventually perceive it as a car for ladies. Only ladies would drive that type of car! So, at the end, the brand becomes a "low power, low esteem" car.
Ref:
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