Lecture 1


Published on

Published in: Business, Health & Medicine
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Lecture 1

  1. 1. Marketing Auctioneering, Valuation & Estate Agency Lecture 1 Evelyn Casey [email_address]
  2. 2. Marketing Syllabus <ul><li>This module provides a practical understanding of the principles of marketing as applied to the property market. </li></ul><ul><li>A general understanding of marketing is important for Auctioneers/Estate Agents </li></ul><ul><li>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 </li></ul>
  3. 3. Why study marketing? <ul><li>An era of increasing competition and increasingly demanding customers, </li></ul><ul><li>The task of gaining and retaining customers is a central business activity. </li></ul><ul><li>The marketing function is concerned with identifying, anticipating and meeting customer needs and requirements. </li></ul>
  4. 4. Defining Marketing <ul><li>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) </li></ul>
  5. 5. Defining Marketing <ul><li>Marketing is the process of building profitable customer relationships by creating value for customers and capturing value in return (Kotler 2009) </li></ul>
  6. 6. Marketing Objective <ul><li>“ 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) </li></ul>
  7. 7. Definition of a Market <ul><li>“ The set of all actual and potential buyers of a product or services” </li></ul><ul><li>(Kotler 1987) </li></ul>
  8. 8. The Marketing Process
  9. 9. The Marketing Process <ul><li>The most basic concept underlying </li></ul><ul><li>marketing is that of human needs </li></ul>
  10. 10. The Marketing Process <ul><li>Needs – a state of felt deprivation </li></ul><ul><li>Wants - Form taken by human needs – influenced personality & culture </li></ul><ul><li>Demand - purchasing power to satisfy needs, trade off to gain greatest satisfaction. </li></ul>
  11. 11. The Marketing Process <ul><li>People satisfy needs & wants with products & services </li></ul><ul><li>What is a product? </li></ul><ul><li>What is a service? </li></ul>
  12. 12. The Marketing Process <ul><li>A product is anything offered to satisfy a need or want. </li></ul>
  13. 13. The Marketing Process <ul><li>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. </li></ul>http://www.lisney.com/Property-Services/Property-Services-Property-Management.aspx
  14. 14. The Marketing Process <ul><li>Customer Value is the difference between the value the customer gains from owning and using product and the costs obtaining the product. </li></ul>
  15. 15. The Marketing Process <ul><li>Customer Satisfaction is the extent to which a products perceived performance in delivering value matches a buyers expectations. </li></ul>
  16. 16. The Marketing Process <ul><li>Marketing occurs when people decide to satisfy needs and wants through exchange relationships. </li></ul><ul><ul><li>Exchange : the act of obtaining a desired object from someone by offering something in return. </li></ul></ul><ul><ul><li>Transactions: trading values between 2 parties – not necessarily monetary </li></ul></ul><ul><ul><li>Relationships: Evolves from exchange concept to relationship development – develops win-win into an asset. </li></ul></ul>
  17. 17. Connecting with Consumers <ul><li>Market Segmentation – dividing a market into distinct groups with distinct needs, characteristics or behaviour who might require separate products or marketing mixes. </li></ul>
  18. 18. Connecting with Consumers <ul><li>Market Segment – A group of consumers who respond in a similar way to a given set of marketing efforts. </li></ul>
  19. 19. Connecting with Consumers <ul><li>Market Targeting – the process of evaluating each market segment attractiveness and selecting one or more segments to enter. </li></ul>
  20. 20. Connecting with Consumers <ul><li>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. </li></ul>
  21. 21. The Marketing Mix
  22. 22. Preparing a Marketing Plan <ul><li>“ A marketing plan is a written document containing the guidelines for the business unit’s marketing programs and allocations over the planning period.” (Lehman and Winer 2002) </li></ul><ul><li>A marketer applies the 4 P’s to create a marketing plan. </li></ul><ul><li>http://www.castlesproperty.co.uk/downloads/Castles_Marketing_Plan.pdf </li></ul>
  23. 23. Microenvironment
  24. 24. Macro Environment
  25. 25. Marketing Research <ul><li>“ The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing an organisation” </li></ul><ul><li>Armstrong & Kotler 2002 </li></ul>
  26. 26. New Product Development <ul><li>Idea Generations </li></ul><ul><li>Idea Screening </li></ul><ul><li>Concept development </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Business Analysis </li></ul><ul><li>Product development </li></ul><ul><li>Test marketing </li></ul><ul><li>Commercialisation </li></ul>
  27. 27. Consumer Buyer Behaviour <ul><li>Consumer Buyer Behaviour </li></ul><ul><li>“ the buying behaviour of final consumers – individuals and consumers who buy goods & services for personal consumption” </li></ul>
  28. 28. Marketing Management <ul><li>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. </li></ul>
  29. 29. Marketing Communications Mix (The Promotion Mix) <ul><li>“ The specific mix of advertising, personal selling, sales promotion and public relations a company uses to pursue it advertising and marketing objectives” </li></ul><ul><li>Kotler, 2003 </li></ul>
  30. 30. Integrated Marketing Communications <ul><li>“ 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” </li></ul><ul><li>Kotler, 2003 </li></ul>
  31. 31. Marketing Communications <ul><li>Advertising </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Public Relations </li></ul><ul><li>Personal Selling </li></ul><ul><li>Direct Marketing </li></ul>
  32. 32. Strategic Planning <ul><li>Process of developing and maintaining a strategic fit between the organisations goals and capabilities and its changing marketing opportunities. </li></ul>
  33. 33. Services Marketing is different <ul><li>All services are characterised by unique features which makes marketing and selling more difficult than product marketing and selling </li></ul><ul><li>“ 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) </li></ul>
  34. 34. Objectives of Advertising <ul><li>To inform – to build awareness of new product or service </li></ul><ul><li>To persuade – perhaps to switch brand or affect behavioural dimension </li></ul><ul><li>To remind – used in the mature stage of the product life cycle </li></ul>
  35. 35. Branding <ul><li>Brand name selection – a good name can add greatly to a products success, however is a difficult task </li></ul><ul><li>Desirable qualities of a brand name </li></ul>
  36. 36. The Product Life Cycle <ul><li>“ 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. </li></ul><ul><li>It involves four distinct stages: </li></ul>
  37. 37. Marketing Management Philosophies <ul><li>Production Concept </li></ul><ul><li>Product Concept </li></ul><ul><li>Selling Concept </li></ul><ul><li>Marketing Concept </li></ul><ul><li>Societal Marketing Concepts </li></ul>
  38. 38. Production Concept <ul><li>“ 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) </li></ul>
  39. 39. The Product Concept <ul><li>“ 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) </li></ul>
  40. 40. The Selling Concept <ul><li>“ The idea that consumers will not buy enough of the organisations products unless the organisation undertakes a large scale selling and promotion effort.” </li></ul><ul><li>(Kotler 2000) </li></ul>
  41. 41. The Marketing Concept <ul><li>“ 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) </li></ul>
  42. 42. The Societal Marketing Concept <ul><li>“ 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) </li></ul>
  43. 43. Marketing Vs Selling <ul><li>Selling – “How do I convert this product to cash?” </li></ul><ul><li>Marketing – “How do I find consumer needs and fill them better than anyone else?” </li></ul><ul><li>Selling is short term, marketing is not. </li></ul><ul><li>Selling is a function of marketing. </li></ul>
  44. 44. Marketing Challenges <ul><li>Getting better financial measures of the impact of marketing programs. </li></ul><ul><li>Developing more integrated information about important customers. </li></ul><ul><li>Getting marketing to be the company’s designer and driver of marketing strategy. </li></ul><ul><li>Facing lower cost/higher quality competitors </li></ul><ul><li>Coping with the increasing power and demands of mega distributors. </li></ul>
  45. 45. Strategic Planning & The Marketing Process <ul><li>“ 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”. </li></ul>
  46. 46. Strategic Planning & The Marketing Process <ul><li>Defining the Company’s business & mission </li></ul><ul><ul><li>What is our business? </li></ul></ul><ul><ul><li>Who is the customer? </li></ul></ul><ul><ul><li>Who do consumers value? </li></ul></ul><ul><ul><li>What should our business be? </li></ul></ul><ul><li>Mission Statement – a statement of the organisations purpose, what it wants to accomplish in the larger environment. </li></ul>
  47. 47. Mission Statement <ul><li>Mission Statement </li></ul><ul><li>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. </li></ul><ul><li>These commitments, together with diligence in execution and unparalleled experience, are what distinguish Savills US from our competitors. </li></ul>
  48. 48. Mission Statement <ul><li>MISSION STATEMENT </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  49. 49. Strategic Planning & The Marketing Process <ul><li>Setting Company Objectives and Goals </li></ul><ul><ul><li>Mission is then turned into detailed supporting objectives for each level of management. </li></ul></ul><ul><li>CBRE, Capital Markets </li></ul><ul><li>&quot;The objective of the Capital Markets team at CB Richard </li></ul><ul><li>Ellis is to create innovative and robust investment and </li></ul><ul><li>funding solutions to facilitate the broader real estate </li></ul><ul><li>objectives of both developers and investors&quot;. </li></ul>
  50. 50. Strategic Planning and The Marketing Process <ul><li>Designing the Business Portfolio </li></ul><ul><li>Business Portfolio – the collection of businesses and products that make up the company. </li></ul><ul><li>Portfolio Analysis – a tool by which management identifies and evaluates the various businesses making up the company. </li></ul>
  51. 51. Jones Lang LaSalle
  52. 52. CB Richard Ellis
  53. 53. Strategic Planning and The Marketing Process <ul><li>Designing the Business Portfolio & Analysing </li></ul><ul><li>the Current Business Portfolio </li></ul><ul><ul><li>The Boston Consulting Group Approach </li></ul></ul><ul><ul><ul><li>Portfolio planning method that evaluates a companys strategic business units in terms of their market growth rate and relative market share </li></ul></ul></ul><ul><ul><ul><li>Stars, cash cows, question marks or dogs. </li></ul></ul></ul>
  54. 54. Boston Consulting Group Approach
  55. 55. Product Strategies for Growth <ul><li>Ansoffs Matrix </li></ul><ul><ul><li>Market Penetration </li></ul></ul><ul><ul><li>Market Development </li></ul></ul><ul><ul><li>Product Development </li></ul></ul><ul><ul><li>Diversification </li></ul></ul>
  56. 56. Exam & Assignments <ul><li>Module 1 </li></ul><ul><ul><li>Exam 60% </li></ul></ul><ul><ul><li>Assignment 40% </li></ul></ul><ul><li>Module 2 </li></ul><ul><ul><li>Exam 60% </li></ul></ul><ul><ul><li>Assignment 40% </li></ul></ul>