05 Mar 2013
Words Tim Admin

Marketing most vital business tool

This article introduces marketing theory and relates it directly to the real estate industry. While completing a Bachelor of Management in Tourism and Hospitality, I analysed several research documents which identified marketing as the most crucial element of any business plan. In a real estate setting, marketing tools are especially significant because they help build awareness, persuade and remind the potential purchasers of the properties available in the marketplace. Without effective marketing, prospects may never learn of a property’s existence. As it is commonly said, “you cannot sell a secret!” Strong marketing has a two-pronged effect, promoting confidence and credibility in both the business operator and the listing agency. When it comes to the selling process, if a property is not marketed accurately, it is in danger of missing opportunities which naturally arise due to the correct implementation of a well constructed marketing campaign. Differentiate One thing is common to many products and services: there are often few identifiable points of differentiation between products in the same category.With this in mind, the operator needs to understand the scope and nature of the competition it faces from other businesses advertising their properties. What are their marketing strategies? How much have they allocated for advertising? With little ‘consumer’ loyalty or perception, competition is probably one of the most dominant reasons to definitely have a marketing plan.marketing mattersThe plan needs to be relevant to your industry and must differentiate your business from others in the same arena by promoting the unique selling points (USP’s) of the property. These simple rules apply to both the operational phase of the business lifecycle and also during the exit or selling phase. Know your product In research cited by marketing experts Kotler and Makens (2003), managers were shown photographs of motel rooms from both their own chain and those of three competitors. They could not nominate the brand identity of one room, even though they were given a list of eight brands from which to choose. This tells us it is very difficult to distinguish between competing motel brands based on the physical attributes of a motel’s core product. It illustrates the importance of a tailored marketing plan which differentiates your property from others listed for sale. Invest for success The appropriate advertising budget is required to maximise every possible avenue to sell your business within the first few weeks of market listing. A rule of thumb is often applied – an allocation of approximately 0.5-1% of the anticipated property sale price.Advertising costs should be carefully distributed over industry-related mediums, such as the tourism informer, local and interstate newspapers and relevant websites, in order to receive the best overall coverage.When well constructed, these specialised marketing messages have the potential to reach the correct target market. The basis of this article is to build awareness regarding the importance of having a structured marketing campaign, specifically designed for your business, to ensure a successful sale. Direct enquires regarding this article to libbymensch@resortbrokers.com.au