Marketing Plan of the Real Estate Industry - Myassignmenthelp.Com

Question: Discuss abou the Marketing Plan of the Real Estate Industry. Answer: Outline Description of two different Market Segments: Territory Demographic Territory Real estate industry is one of the fastest growing sectors in New Zealand market. The continuous development in the technology is contributing commendably in the real estate market. The scenario of the real estate business in Taradale, Hawkes Bay is much competitive due to extensive capabilities of the real estate business companies. The major competitors in New Zealand real estate market are offering the properties and lands for the residential purposes at a very reasonable rate. The real estate company requires adopting the most fruitful strategy to take the active participation in the competitive business world. Demographic On the other hand, in describing the demographic scenario, it is noticed that the population in Taradale has increased drastically from 2001 to 2013 (Idnz.co.nz 2016). The populations include the Maori group and the overseas born. Most of the lands are residential and rural place. Real estate companies offer the residential lands to the citizens. Therefore, the marketing plan is extensively focusing on the residential land sales and lease businesses. The business companies can deal with the local residents for selling the lands that can be utilized for building residential house. The growing population in this location is quite opportune for developing the real estate business. Target Clients selected for each market segment Target clients for Real Estate services in Territory The real estate companies usually look for the clients who would purchase the lands for the residential use. They can build their own house by purchasing lands for the personal use. The company is mainly looking for the clients who can purchase the lads for the residential uses or building house for some personal use. This territory is the appropriate place to identify such clients since the rural areas are mostly visible here (Cerutti, Dagher and Dell'Ariccia 2017). Target clients in demographic segment The demographic segment especially concentrates on the males and females who will be involved with the building their own house. Taradale, Hawkes Bay is generally surrounded by population from rural areas (Idnz.co.nz 2016). The lands are mostly used for residential purposes. The company thus can target the males and females between the age group of 30 years to 50 years. Hence, they can be employed to develop the residential houses in the lands available in the convenient areas. The residential places will be utilized for building properties for present and future use. Personal Positioning Strategies The marketing plan for the real estate business requires developing the appropriate personal positioning strategies that can develop the brand identity among the targeted clients. Establishing the communication through emails, developing newspaper advertisements, and receiving the updated feedback from clients would be much beneficial in such regards. Clients deal with the real estate agents when they require buying any land for residential use. Before purchasing the lands, the clients seek adequate information about the location, transport convenience, and the legal aspects. The real estate salespersons need to establish the communicational transparency to provide the accurate information to these clients (Kelsey 2015). The sales people performing in the same market are applying their unique techniques to participate in the competitive scenario. In order to strengthening the position, it is essential to take a step forward and develop the unique positioning strategies. Communication through emails and presenting the advertisements including details of the necessary aspects would be beneficial to attract more clients. Moreover, developing newspaper advertisement is also one of the most significant ways of conveying the message of land availability. Benefits of the Targeted Clients from the personal positioning strategies People in Taradale, Hawkes Bay are mostly looking for purchasing the lands for their residential use. It is noticeable that majority of the lands in the rural areas are developed considering the basic facilities and transport convenience. The real estate company needs to thus understand such basic requirements of the target clients. Communicating through emails would establish the transparency that would help the clients to gather the idea about the current facilities (Perkins, Mackay and Espiner 2015). It is important to understand their requirements and basic demands before selling the real estate lands or properties. Therefore, the communication through emails clarifies the requirements as well as offering. On the other hand, presenting the advertisements on the newspaper creates the awareness among the clients. They receive the information about the available of lands or properties in the convenient places with the help of the newspaper advertisements. The real estate company can put the details on the newspaper section to inform about the available lands and properties as well the other facilities. The interested clients would contact the company with the help of the contact details mentioned in the advertisement content. Marketing Plan Report To The Branch Manager Harcourts International (Real Estate Organisation) The marketing plan is developed for targeting clients from Taradale, Hawkes Bay, New Zealand. Harcourts International has been providing the best real estate services to the potential clients (Harcourts.co.nz 2018). This marketing plan would include the appropriate personal positioning strategies and structured budget presentation for first three months. The alignments with the necessary legal considerations would also be discussed in this section. Identification of the Target Clients and Market Segments The direct marketing plan deals with the sales of real estate lands and properties to the targeted clients in Taradale, Hawkes Bay. The location is based in the rural areas where the lands are mostly used for residential purposes. The marketing plan is based on two specific market segments, such as territory and demographic. Therefore, the targeted clients are the males and females between the age groups of 30 years to 50 years. Outline of Three Strategies It is essential to develop the fruitful personal positioning to strengthen the position in a competitive scenario. In order to strengthen such positioning, the company requires developing three major personal positioning, such as communication through email, newspaper advertisements, and feedback receiving. The transparency maintained in conveying and receiving message makes the information clearer (Stuff.co.nz 2017). Therefore, the clients would obtain the complete information about the offering and deliverable. The newspaper advertisement, on the other hand, provides the detailed information about the available land and properties along with the facilities required near the residential places. The contact details would also be provided by the company for the interested clients. Receiving feedbacks through emails and digital mediums would be helpful in understanding the basic needs and demands of the clients. This feedback process would even help in creating the positive word of mou th for attracting new clients for selling the real estate properties. Strategies for maintaining current clients The personal positioning strategies are developed by depending on maintaining the current clients and attracting new clients. The two of these strategies are specifically concentrating on retaining the current clients. The frequent communication through the emails keeps the clients engaged and generates the sense of trust. The clients would like to know more about the facilities that the real estate business can offer to the people who are willing to by residential lands. Moreover, the clients can present their requirements through such email communication process. It would make the clarification of the real estate land or services. On the other hand, when the clients seek information about the available vacant lands or properties, they can easily get information from the newspaper advertisements. Moreover, these processes are much helpful to specify the clients about the legal requirements associated with the real estate business. The individual, company, and industrial preferences are also addressed through the development of these personal positioning strategies. Budget for 3 months Budget (Including GST) Month 1 Month 2 Month 3 Communication through e-mail $2,000 $2,500 $2,800 Newspaper advertisements $750 $550 $850 Feedback Receiving $1,800 $2,000 $2,100 Using digital communication mediums $1,600 $1,900 $1,700 Real estate land and property services $800 $600 $500 Legal requirements for real estate business $900 $1,000 $1,100 Personnel positioning strategies $1,100 $1,200 $1,300 Promotional brochures $1,200 $1,300 $1,400 Subscriptions $1,000 $2,500 $2,800 Consumer testimonial $600 $700 $800 Total $11,750 $14,250 $15,350 Legal Considerations Fair Trading Act 1986 The company would be maintaining the Fair Trading Act 1986 to establish the real estate business with the clients (Legislation.govt.nz 2014). The main purpose of this act is to contribute appropriate trading environment by considering the interests of the consumers and strengthened positioning of the b business. The act prohibits the unfair practices and promotes fair conducts. Privacy Act 1993 The act is promoting and protecting the privacy of the business clients in accordance with the concerned guidelines that are governing the code of conduct. The real estate business generally deals with the property based information of the clients. Application of this act helps in protecting such confidentiality. Unsolicited Electronic Messages Act 2007 The company is planning to develop the email communication process to establish communicational transparency. As per the Unsolicited Electronic Messages Act 2007 protects the spam emails that can mislead the clients. Real Estate Agents Act 2008 and Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 According to this act, the real estate agents would maintain the appropriate code of conducts to provide the accurate services to the business clients as per their requirements. The breaching of the information would be strictly prohibited (Legislation.govt.nz 2014). Maintaining this code of conducts would be monitored by the senior managers. Real estate industry best practices The associated workforce should focus on following aspects to develop the best practices. Quick respond to the clients Sharing the updated information with the clients Acknowledging the mails Continuous improvement These best practices would be necessary to accomplish the business goals and developing the brand image. Effectiveness of this campaign on salesperson The obtained knowledge and experience from this campaign would be much helpful for the betterment of sales skills of the associated salesperson. Moreover, the members would extend their knowledge in real estate industry to ensure growth in future. Development of Promotional Material Selection of the Promotional Materials The marketing plan has been scheduled by concentrating on the development of three personal positioning strategies. There are two promotional materials chosen from the list, such as email (to a prospective client) and newspaper advertisement. These materials are explained below: The email communication is used for developing the communicational transparency between the company and the business clients. The emails should be containing the accurate information that is to be conveyed to the potential clients. As per the 9 of the Fair Trading Act 1986, no associated worker would engage in prohibited actions, such as misleading the public or clients. On the other hand, as per the Real Estate Agents Act 2008, the fair treatment of the clients is needed to be taken into consideration. It is essential to treat the clients with respect and share the updated information (Legislation.govt.nz 2014). Newspaper advertisements should contain the accurate information about the land availability and legal documents. As per the 9 of the Fair Trading Act 1986, the prospective client should not be misguided by any fake news or fake information. The act prohibits the unfair practices and promotes fair conducts (Legislation.govt.nz 2014). When the clients seek information about the available vacant lands or properties, they can easily get information from the newspaper advertisements. Mrs. K. Valdaze 91, Matthews Place Taradale, Napier Pin Code: 4112 Dear Maam, We have received your concern regarding the land purchase near to Hawke's Bay Expressway. We are offering the best deal for the land purchase with an affordable price. We are even offering the best prices in the best locations along with the most commendable customer service. You can avail the residential facilities and transport convenience as per your requirements. Therefore, we would like to hear from you about your interests. For further details, queries, and feedback, you can contact us. Our contact details will be provided below. Thank You Regards Stephan Jason Sr. Marketing Executive Contact: 217-8882 Stephan Jason: Harcourts International Are you looking for best location for your new residence? I am going to deliver you the best offer for a new address in an affordable price. Here we are presenting you the best location for your dream home with full support of transportation convenience. If youre interested for such convenient location- I shall help you to find out the best offer! Contact me Stephan Jason Harcourts International, Licensed under the Real Estate Agents Act 2006 Telephone: 217-8882, Monday to Saturday, 9:00 am to 7:00 Pm. Review of the Task Identification of Errors Three errors have been identified that was made by Devon in consideration to his flyer. One of the errors is that he did not account for the cost of the associated paper, or utilization of office photocopier. Along with such error, the person presented that as flyer within plain white photocopy paper to an overall 1000 households within the region. Another error included that the person believed it was just a minimum amount (Allen et al. 2015). The third error was that the way Devon distributed his text in the flyer, many respondents complained that he placed flyers within their mailbox, in case there exists clear signage about the junk mail. The presentation of the text was not well enough and he should not have placed the flyers within the mailbox of its target households despite observing that their mailbox indicated junk mail option. Money Spent on Campaign Along with the allowance for Devons time, the parson is observed to spend around $ 25 each hour on his campaign. In such spending, the person is allocating the GST content within this (Haynes, Nunnington and Eccles 2017). Moreover, the person also wants to maintain track of the value related to his time. It is considered that for preparing the draft material 1 hour was needed, delivering flyers needed 16 hours and telephone calls needed 45 hours. Moreover, Appraisals that includes preparation with approximately three hours each needed 30 hours. Buyer appointments are observed to take 8 hours and miscellaneous activities such as photocopying, meeting with managers and additional aspects needed 1 hour. In account to such information, the overall spending of Devon on his campaign is observed to be: 60.5 hours * $ 25 = $ 1512.5 Quantification of Devons Performance Performance of Devon is quantified in consideration to the following: Number of leads: The person is observed to have a good number of the potential clients and consumers in his database. This indicates that the performance of Devon in attaining potential consumers is superior and most of them are convinced in buying properties in the near future (Keenan 2016). Devons performance in attaining potential consumers is deemed to be highly efficient. One of the potential consumers he considered too cold-call has successfully purchased a property by means of Devon. Number of appraisals: After the campaign the person has accomplished ten appraisals. This includes six from the flyers and four from the phone calls. Four of the companys owners whose properties the company appraised have been listed with two other agencies. Two among these agencies considered marketing the opportunities separately. One among these agencies are still finalizing the companys decision and one among them has decides to find out a property in order to purchase before marketing their recent time (Palm 2016). Number of listing: It is gathered that the berceuse of his appraisals, an individual is list with Devon within agreement of two sole agencies. The person has attained payable commission of $7,300 from first agency and $7,500 for the second sole agency. Number of actual sales to date: Firm analyzing the time aspect, it is gathered that Demons time is worth $ 25 each hour. Employers pay the employees with sales commission in order to provide incentives to the employees in order to gather increase sales. In account to such information, the overall spending of Devon on his campaign is observed to be: 60.5 hours * $ 25 = $ 1512.5 Earning from Campaign Employers pay the employees with sales commission in order to provide incentives to the employees in order to gather increase sales. This is in order to reward along with identifying people that performs in a productive manner. This campaign is deemed to generate around a desired in its personal earnings. The personal earnings from both the sole agency listings is observed to be $7,300 + $7,500 = $ 14700. Such personal earnings are based on the fact that the property under the first agency agreement has market $379,000. The commission of the person is relied on the sales price of $370,000. Devon anticipates receiving commission from its sale price of its property that is $380,000. Tough the property had an asking price of $399,000; the commission attained from the property will be a bit more. Ratio Leads to sales ratio serves as an important measure of the efficiency of salesperson. This indicates the sales percentage leads that the salesperson transforms into real sales. This ratio is calculated through analyzing Devons number of sales leads over the timeframe for which the sales results in close ratio (Sirgy 2014). Relied on current achievements of Devon, the ratio of leads to sales is deemed to be calculated as: (number of successful sales/ number of leads) * 100 = (5/ 10) * 100 = 50 Cost Encompassing all the advertising along with value of his time, the cost of all the listing Devon has attained till date includes two major sole agency agreements with sale prices of $399,000 and $380,000 respectively. Devon also presented his advertisement in three Saturday editions of the Polyvale Herald that has cost of around $ 270 for each. Devons manager has advised that at the end of the initial months work and he will be attaining a commission of around $2,750. References Allen, M.T., Cadena, A., Rutherford, J. and Rutherford, R.C., 2015. Effects of real estate Brokers' Marketing strategies: Public open houses, broker open houses, MLS virtual tours, and MLS photographs.Journal of Real Estate Research,37(3), pp.343-369. Cerutti, E., Dagher, J. and Dell'Ariccia, G., 2017. Housing finance and real-estate booms: a cross-country perspective.Journal of Housing Economics,38, pp.1-13. Harcourts.co.nz. 2018.About Harcourts New Zealand. [online] Content.harcourts.co.nz. Available at: https://content.harcourts.co.nz/content/aboutus [Accessed 26 Feb. 2018]. Haynes, B., Nunnington, N. and Eccles, T., 2017.Corporate real estate asset management: Strategy and Implementation. Taylor Francis. Idnz.co.nz, 2016.About the profile areas | Taradale South | profile.id. [online] Profile.idnz.co.nz. Available at: https://profile.idnz.co.nz/napier/about?WebID=260 [Accessed 26 Feb. 2018]. Keenan, J.M., 2016. From sustainability to adaptation: Goldman Sachs corporate real estate strategy.Building Research Information,44(4), pp.407-422. Kelsey, J., 2015.The New Zealand experiment: A world model for structural adjustment?. Bridget Williams Books. Langford, L. and Haynes, B., 2015. An investigation into how corporate real estate in the financial services industry can add value through alignment and methods of performance measurement.Journal of Corporate Real Estate,17(1), pp.46-62. Legislation.govt.nz. 2014.Fair Trading Act 1986 No 121 (as at 16 December 2017), Public Act New Zealand Legislation. [online] Available at: https://www.legislation.govt.nz/act/public/1986/0121/64.0/whole.html#DLM96903 [Accessed 26 Feb. 2018]. Palm, P., 2016. Measuring customer satisfaction: a study of the Swedish real estate industry.Property Management,34(4), pp.316-331. Perkins, H.C., Mackay, M. and Espiner, S., 2015. Putting pinot alongside merino in Cromwell District, Central Otago, New Zealand: Rural amenity and the making of the global countryside.Journal of Rural Studies,39, pp.85-98. Sirgy, M.J., 2014.Real Estate Marketing: Strategy, Personal Selling, Negotiation, Management, and Ethics. Routledge. Stuff.co.nz. 2017.What if the email you send is really a spam?. [online] Available at: https://www.stuff.co.nz/waikato-times/business/8581641/What-if-the-email-you-send-is-really-a-spam [Accessed 26 Feb. 2018]. Waller, C., Kindig, L., Reynolds, J. and Patterson, M., 2015. Strategic Internet Marketing for Real Estate Brokers.