Chapter 6: Marketing and Customer Service

Marketing Basics

Effective marketing should begin with determining what customers want. It involves 3 stages:

1. Research
2. Analysis
3. Strategy

Marketing Products vs. Services

Brokerages sell both - intangible services and tangible.

The 4 P's

1. Product
2. Promotion
3. Price
4. Place

The marketing mix is developed by weighting the 4 components.

 

Service Based Marketing

Customer Service as a Competitive Force

While consumers will always focus on product and benefits, they are increasingly studying how services are delivered and the level of customer satisfaction.

Value Added Services

Can typically be added to a basic service and sold at a premium price.

Best Practices

The concept refers to a particular method that consistently produces a better outcome (ex. heighten the quality of services and achieve higher consumer satisfaction).

 

Marketing Strategies

Marketing Plan vs. Strategy

A strategy focuses on the overall strategic directions of an org., while plans put specifics into place to pursue those directions.

Selecting Target Markets - a target market involves a specific area or group to which an org. directs its marketing efforts.

Creating a market Position - involves the creation of an identity in the consumer's mind. (branding)

Broadening Competitive Advantage - while target marketing and market position theory can be very effective in differentiating the brokerage from its competitors, other strategies are often necessary to build and maintain a presence.

1. Cost advantages that are obtained through increased efficiency.
2. Differentiation advantages (more desired) that involve offering unique services.

Market Research

Designed to gather opinions to better understand customer needs and wants.

(Surveys) Quantitative Research - a method using techniques to obtain specific, objective info usually reported in a tabular or statistical format. 

Focus Groups - consist of 6-12 people. A skilled interviewer can move beyond the question and determine what the person is thinking when making a response. Info gathered is subjective. (ex. What was the reason you selected our brokerage?).

Personal Research - the risk with this kind of research is that responders may not provide honest opinions. 

 

Marketing to the Seller

The Commercial Marketing Proposal

• Proposal Objectives and Scope of Work - the who, what, when and at what cost details. A detailed schedule of activities within the marketing period is included.
• Site, Building and Marketing Analysis - analysis if the site, the building, related matters affecting both site and building (ex. taxes and financing) and the market analysis.
• Marketing Plan Development - identifies the selected target market along with a description of planned marketing tools.
• Property Valuation - commercial registrants rely on all 3 approaches to value: cost, direct comparison and income.
• Listing Process and Marketing Plan Implementation
• Negotiations and Drafting the Agreement - registrants usually detail types of services commonly provided to clients during negotiations.
• Closing the Transaction 

The Residential Listing Presentation

A salesperson must be able to meet the seller's needs and explain how complications can be minimized through the use of a brokerage. 

• Do I know the owner's motivation for selling?
• Do I know the neighborhood and site?
• Do I know financing alternatives?
• Do I know when they purchased and for how much?
• Comparable properties ready?
• Do I have my listing presentation planned? etc.

Marketing to the Buyer

• Establish a buyer profile - property specifics and special needs/requirements.
• Provide Market Info
• Identify Target Properties
• View Properties
• Compare Properties
• Discuss Professional Assistance
• Disclose Material Latent Defects - brokerages must be aware of hidden defects in a property.
• Prepare an Offer
• Negotiate Acceptable Terms - ensure that the buyer's interests are protect4ed and he is informed of facts in the decision making process.
• Assist From Sale to Closing 

Marketing Methods

Advertising - any message that influences people.

Promotion - a marketing communication delivered by advertising tools.

Advertising Standards:

• Regulatory requirements set out by REBBA 2002 and RECO.
• Federal Competition Act.
• Office policy manuals.
• Ethical standards established by a professional org. of which the registrant is a member.

Institutional Advertising - focuses on the promotion of services to the general public, as distinct from classifieds which are viewed as specific forms of advertising.

Specific Advertising - focused on individual products and services, reaching a specific target market, satisfying the needs of seller clients, promoting sales staff and building a company image.

AIDA formula:

1. Get the prospect's Attention by creating a unique and interesting heading and related lead line. (#1 item of interest is - location of property)
2. Continue to create an Interest by outlining the property's features and benefits.
3. Build Desire to live on that property by describing the way of life.
4. Prompt the reader to take Action.

For Sale Signs - informs neighbors that the home is for sale. They are a good source of referrals regarding their friends and relatives. Municipalities often control the size and placement of signs.

Open Houses - the protection of the seller's personal property is important. Risk of theft or damage must be minimized.

Direct Marketing - establish communication links directly with consumers.

Direct Mail - effective when targeting specific areas and groups. Can be grouped into addressed and non-name addressed. 

Push/Pull Technology - Internet-based marketing is a pull technology. Customers are drawn to the site given benefits, features, and value-added services, as opposed to e-mail which is viewed as a push technology.

MLS - Multiple Listing Service is best described as a system for the orderly coordination and dissemination of listings info to members. (marketing access, market selection)

REALTOR.CA - this website puts consumers in touch with REALTORS regarding MLS property advertisements. Consumers can access property advertisement and other relevant info and tools.