Marketing Mix Techniques Applied To The Real Estate Market

Marketing Mix Techniques Applied To The Real Estate Market

In a market as competitive as real estate, the different Real Estate companies including Tajarat properties struggle to apply those marketing techniques that ensure a good return on investment.

Without going any further, it is essential to interact with the target audience of the real estate developer (clients, suppliers, among others) in order to know not only the advantages and disadvantages of the company, but also the status of the product.

For this reason, in this article we will analyze what marketing mix techniques are, how they can be applied to the real estate market and what benefits property developers can get if they are applied correctly.

As we have already explained on other occasions, using marketing tools to analyze the state of the Real Estate company can be the best compass to mark the strategy of the real estate developer.

Thus, the marketing mix is ​​a strategy analysis of internal aspects of the company taking into account four main business variables: product, price, distribution and promotion.

The objective is, therefore, based on the results obtained, to achieve a precise diagnosis of the state of the company and to be able to develop a specific marketing strategy through a market study.

The ‘4Ps’ of the real estate marketing mix

This diagnostic tool is also recognized under the acronym 4Ps, for the variables it analyzes:

  • Price (Prize)
  • Product (Product)
  • Distribution (Place)
  • Promotion (Promotion).

Through the information obtained on the price of the product, the real estate developer will recognize its competitiveness with respect to its immediate competitors

To obtain this data, the marketing mix takes into account elements such as the psychological value of the product, production costs, the price elasticity of demand or the state of the market in which it competes.

In order to know the positioning of the real estate developer with respect to the market, the marketing mix considers it essential to analyze both the validity of the product (core product in English) and those supplementary elements offered by the Real Estate company.

For this reason, it values ​​the life cycle of the product, the quality of the offer, as well as whether the promoter offers the product / service that its target audience is evaluating.

For the distribution variable, the promoter must focus the study on analyzing the product through the different channels until it reaches the final consumer. Although in the case of Real Estate this aspect may be the least decisive, if it is in the case of using intermediaries in the rental / sale, for example.

Finally, this tool places value on the promotion of the product, analyzing the different market techniques used to advertise the product by the real estate developer, in order to know which one includes a higher ROI –return of investment-.

Likewise, in recent years other sub-appendices have been added to the 4Ps when applying this tool in order to optimize its results:

  • People
  • Process
  • Physical Evidence

The digital revolution, also in the real estate sector

The real estate marketing mix has established itself in recent years as one of the best tools to diagnose the business opportunities for a real estate developer.

Even so, it should not be forgotten that, as in all businesses, the entry of new technologies has modernized business diagnostic tools and processes, introducing new variables.

Thus, to limit the results to the reality of the Real Estate company, digital marketing has introduced other new 4Ps, essential to understand the real estate business in a digital key:

  • Personalization: experiences segmented according to user tastes
  • Participation: a community through activity on social networks
  • Peer to peer: the best marketing always ends up being the experiential.
  • Predictions: know the user to adapt your product to their needs.

With a correct analysis of the marketing mix, the success of the real estate developer is closer, standing out above a market as rich as Real Estate.

The Key to The Real Estate Market: Analysis

In an increasingly upward market, in which more and more players are gradually being incorporated into the equation, finding a market niche and adapting the characteristics of your real estate developer to it seems key to business success.

For this reason, in this article we will analyze the importance of understanding what the demands of your target audience are and what direct competition is, in order to understand which Real Estate market we are in.

But what does a market study really consist of? Marketing, in this case, is responsible for collecting objective data on potential customers, suppliers, competition and characteristics of the offer in order to calibrate which are the ideal strategies to achieve success.

Thus, the market data has as a starting point to have a global idea of ​​the area, city, or market in which we have a Real Estate offer. This will allow us to direct the investments of the real estate developer towards that market niche that produces the most benefits.

In conclusion, a study should answer:

  • What is the potential business volume of our company?
  • What are the current trends in our market?
  • Who are they and what strategies are our direct competition taking?
  • The importance of understanding the offer

The offer study not only fulfills a vital function when establishing a real estate developer in a specific environment, but it can also be applied regularly with the aim of drawing specific conclusions about the Real Estate.

To do this, it is essential to collect and analyze, through experts in the sector, technical data of real estate in an area, such as:

  • Square meters of buildings
  • Years of construction
  • Geographical market typology (neighborhood / industrial estate, etc)

An offer study not only analyzes the state of the homes that may be the objective of our real estate developer, but also puts in value what type of properties our competition has, what strategies they are implementing (either sales, marketing, etc.) and which are successful.

Thus, the sending of a mystery shoppe, that is, of false interested parties who go to the different venues of the competition to find out first-hand what are the points for and against each competitor , has been consolidated as an effective tactic .

In fact, the main step once the data has been collected to take into account is to use an analysis tool to see what strengths and weaknesses we have compared to other market players.

For example, it is useful to apply a SWOT analysis (Weaknesses, Threats, Strengths and Opportunities) to apply effective strategies based on who we are and where we can succeed.

How to analyze real estate demand

If the objective of the supply study is to analyze how the market is doing, the demand analysis allows us to adapt the strategies and supply of our real estate developer according to the preferences of our target audience.

But what is the target audience? They are those people who may be interested in the real estate offer of our promoter. For this, it is important to first establish what we offer –SOT analysis- to segment our target.

For this, it is important, and even more so in a market such as real estate, to know basic population data such as: age, gender, indices, socioeconomic data and interests and market trends.

An efficient tactic when collecting this type of data is by hiring a call center : through surveys you will know what the interests of the population in the area are and how to adapt your marketing strategies to increase sales.

In addition, to make the databases that are built from this information more reliable, it should be contrasted with other secondary sources of studies or reports from public or private entities, such as, for example, the INE or the relevant ministry.

From Lead To Sale: The Online Business In The Real Estate Sector

The introduction of new technologies in the business environment has shifted the weight of the market from analog to digital, creating endless opportunities for those companies that manage to adapt to the new market.

Precisely electronic commerce has impacted on the purchase routines of users: of the 27.5 million Internet users that our country has, it is estimated that seven out of ten already buy regularly.

But how can the real estate market adapt to this digital world? How should a real estate developer adapt its communication and marketing plan to increase its sales through online channels?

In this article we will analyze the impact of online sales in the digital world and what strategies and actions can increase the visibility, leads and, after all, the sales of our real estate developer.

Not surprisingly, it is estimated that 70% of home searches occur on the Internet. Once the attraction of the user is achieved, how do we manage to finalize the sale?

Lead scoring: how to get to know our audience

The real estate marketing has changed with the entry of different digital tools . In this way, it is increasingly important to have a strong online presence that ensures visibility with our target audience.

At the end of the day, the three mandatory steps of any digital marketing plan for a Real Estate company must be:

  • Identity construction: endow the company with recognizable values ​​for its audience
  • Acquisition of new customers: actions to make yourself known to new customers who are within the market niche.
  • Involve customers: manage to transform each and every one of the leads we obtain into possible sales.

But how do you get success? Experts say that the key to transforming a lead (any impact of a user on our website) into sales is to put yourself in the buyer’s shoes, understand what they want and above all, give them tools to decide.

As it seems essential for a marketing strategy to analyze who we are through tools, in terms of leads, it is essential to classify them to know what they ask of us, what they like about our product and, ultimately, how we can improve.

To do this, we must make use of lead scoring, a strategy to classify the quality of the contacts with our target audience and give them a score based on aspects such as their characteristics or their interest in our product.

Improve your sales: lead nurturing

Inbound Marketing is the sector that takes into account the ability to transform opportunities (leads) into sales. To do this, it uses a technique called lead nurturing, whose objective is the loyalty of current clients to achieve a defined objective, which in the real estate sector blue world city islamabad is the purchase or rental of a property.

In this way, through a series of interactions with the user, this technique tries to understand what the public is interested in and how to make them understand that ours is their best proposal.

In a market as crowded as real estate, the solution to retain customer loyalty does not go through volume, but through the quality of information: you have to give the user the greatest number of tools so that they can discern among the many options they have.

How? Through actions such as e-mail marketing, dynamic lists, chatbots – to know your feedback – and thus give you an increasingly personalized service according to your preferences.

Like all marketing techniques, lead nurturing also has its own phases of action:

  • Phase 1: Information Qualified Leads – on those users who have requested valuable information.
  • Phase 2: Marketing Qualified Leads – on those who have downloaded company content
  • Phase 3: Sales Qualified Leads – on those who have asked to learn more about our company’s products.

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