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0 Introduction

Real estate marketing is subject to special features, that result from some characteristics of property: real estates are capital-intensive products in which long building- and advertising-processes are involved (J. Bindlingmaier, p.15). In addition they are on the one hand the most long-lived economic goods, on the other hand difficult to change - that is to say only under high expense. Therefore there is hardly any substitute demand, but at best new or changed demand exists, e.g. on account of family-cycle or of changed income. Real estates are not substitutable. Their sale and renting both are advice-intensive. Supplementary decisions are to be made, e.g. with regard to financing, to location or to movement.

Concerning self-users purchasing intention is very low, namely one or two times a live (Dr. M. Hellerforth, pp.13). Maintenance and preserving value of real estates are service-intensive. In addition there is a low elasticity of adaptation to market changes on the part of demander and supplier (B. Heuer, pp.27). Not only aspects of product marketing but also aspects of service marketing are important to real estate marketing (Hilke, p.210). Moreover real estate corporations are in narrow regional markets. All this makes a particular main focus on marketing necessary. It is not possible to transfer marketing conceptions of other branches to real estate business. Hence it is necessary to develop new, different and special methods and instruments (E. Murfeld, p.444).

First I will show the basis of real estate marketing, then I will demonstrate how real estate corporations use strategic marketing in order to win customers and their satisfaction and last I will depict measures with which real estate corporations or estate agents may practice their strategies.

2.0 Real Estate Marketing in Change of Time

2.1 Real Estate Market is Modifying

Globalisation in business competition has forced many corporations to change their views.

Marketing trends in real estate business (Dr. and only along those lines the corporations can serve the individual target groups effectively and economically. performance. service and trade-mark combined with nearly blind information overload A7 reaching threshold of effectiveness and increasing boundary effect of classic marketing A7 higher competition combined with stronger trade-overlapping Only a real estate marketing that is integral (including the whole development of real estate: beginning with the idea of a real estate project. . pp. continuing with the life cycle of the property and ending in selling or demolition) is able to meet the needs and wishes of the target market. 2. The times when simply pure production and allocation of real estate functioned (in selling or renting) are over now. the liquidity. The separate real estate field itself. pp. the returns and the profits determine the individual success of a corporation as well. The German market has changed from lessor domination into tenant domination or from seller supremacy into purchaser supremacy (B. Hellerforth. Falk.Specific sectors of a company do not make a major contribution to a company s success today.19).2 Real Estate Marketing as Philosophy of Corporations Most of the corporations in the real estate business have not yet become fully conversant with orientation in marketing until now.15): A7 increasing productivity. M. A new understanding of marketing is needed to survive in the hard business in future.

Demands of specific real estate products and services result from fundamental physiological needs but also from endeavours to recognition and self-realisation. another wants acceptation and recognition and thus buys a luxury penthouse (B. . a young family father is in need of a flat and rents a three room apartment.22). These services arise from the product property itself. water. site. air. Needs or wishes may produce demand. Falk. Delimitation from other goods is determined by its immobile location.g. The product property has been the centre of real estate marketing in former times. provided that there is readiness for purchase. e.0 Basis of Real Estate Marketing The basis of real estate marketing describes relations between customers. centre-management. property and real estate) but also services such as facility management. p.22). products and corporations which are willing to sell or rent their goods and services. 3.3. advertising. These wishes are permanently formed and altered by society. Now the customers are in focus of all entrepreneurial activities. In having a few desires people s wishes are various. marketing research etc. clothes and housing are basic needs anchored deeply in human nature. That is why real estate marketing does not only have to analyse possible needs and wishes of customers but also to find out how many people or institutions are actually willing or capable of satisfying them. for renting or for claiming service. Falk. 3. Wishes and Demand The starting point of real estate marketing are the different human needs and wishes. Wishes are often desires for satisfaction of individual needs.1 Needs. Property is at best comparable with goods of investigation in terms of their long livespan (B. Food.2 Real Estate Products The generic term 94product94 in real estate business can have different meanings: First of all it can mean goods (plot. consultancy. p.

Costs and Satisfaction Marketing activities are gearing to real estate users. A firm of lawyers from Frankfurt/Main is searching an office in order to establish themselves in the city of Munich. besides the use there are the costs to be negotiated. Various offices with different kinds of equipment in different locations are offered to them. Therefore it is essential to draw up an individual customer product profile considering the following points: § connection to the local public transport § parking space (here: 5 are needed) § office space (here: 250 mB2) § high flexibility concerning floor planning § high-quality constructing § modern high-tech means of communication To classify the offered products it is necessary to compare the offered standards of equipment with the criteria preferred by the firm of lawyers.3. However. . too. Our firm of lawyers has to measure the use of the object against the costs before choosing one or the other. Now the firm has to make a choice corresponding to their personal and personnel needs. If our customer chooses one product. the more adequate it is for them.3 Customer s Benefit. The more the offer fits the criteria. In general decisions are made by best cost-use-proportion. User-gearing in the field of real estate marketing is most easily explained by an example.

g. In general it is recognisable that real estate markets are subject to high variations. Part-markets can be subdivided into various sorts. hotels.. villas. 3. pp.. office buildings § industrial property. fitness studios.g. The real estate markets or part markets do not develop similarly to national economy. plants. terraced houses. e.g. owner-occupied flats. farms § special property.his satisfaction will be decisive for a lasting connection. Furthermore. there are five types of different part markets: § residential property. E. too. warehouses § agricultural property.25).g. e. They differ in location. This fact is very important because the advertising effort put into attracting new customers is definitively higher than the one needed for getting access to an available clientele (B. Falk. It consists of dissimilar regional part markets. e.g. e. Only similar part markets like Geislingen and Eislingen or Stuttgart and Munich are comparable. cinemas. .g.4 Real Estate Market The real estate market has to be regarded in a more differentiated way. e. discos etc. one can not compare the real estate market in Geislingen to the property market in Munich. detached houses. But part markets may develop into different ways. § commercial/factory property.

In analysing the markets and part markets real estate corporations will surely not be able to know them exactly because there are too many different part markets. Needs and wishes should be satisfied more economically and more effectively as the competitors do (B. Therefore it is necessary to specialise.Usually there is no nationwide transparency given to neither purchasers nor users. Falk.0 Definition and Delimitation 4. most important: satisfaction § advertising co-ordination: marketing departments have to communicate with all other departments of the corporation § profit and profitability: realised by satisfying customers . 4. The advertising concept consists of four columns: § market focussing: definition of a target market with a mutually agreed marketing § orientation in customers: customers are the centre.27).1 Basic Attitudes in Real Estate Marketing The marketing concept says that corporations have to orientate towards market requirements as well as towards the permanently changing needs of customers. pp.

0 Strategic Marketing in View of Real Estate Corporations Target: Developing real estates which are maximally performed and creating long-term advantages in competition by the help of customer orientated inter-connection of all entrepreneurial activities. Targeted use results in achieving advantages in competition (B. of price fixing. p. of promoting and of spreading ideas. shaping and forming the market and maintaining it attractive. .2. Therefore marketing is regarded as an entrepreneurial fundamental philosophy. The function of marketing is analysing.2 Definitions 4.29). Falk. 4.2 Marketing Management Marketing management is the planning and carrying-out-process of conceiving. supplying and interchanging real estate products and real estate services. 5. People and groups satisfy their needs and wishes by constructing.2. of goods and services in order to bring about exchange processes which satisfy individual and organisational targets.4.1 Real Estate Marketing Real estate marketing is an exchange of economical and social structure.

1.2 Property Attractiveness Attractiveness concerns building architecture and interior decor. Often wrong decisions are generated in overvaluing other factors. is to choose the appropriate instruments and methods. These factors influence each other. The higher the productivity of a property is.1.Strategic marketing has to combine customer orientation with optimising the finding and carrying out strategies.1. Almost every popular flop in real estate business has its origin in disregarding the importance of location. Here lies significant entrepreneurial net product potential. the higher the proceeds in rent or in purchase prices can be. Apart from that soft facts determine quality in use. 5. productivity and profitability (B. 5. property attractiveness. In addition property functionality and infrastructure of location connected with appropriate supply units are significant as well. Both of these optical components have to last long. .1 Strategic Factors of Real Estate Marketing Strategic factors of real estate marketing are location.4 Profitability Productivity depends on profitability. however. Falk.1.3 Productivity Especially productivity is a relevant factor of the users future prospects.1 Location The most important strategic factor of real estate marketing is the location. 5.499). 5. The technical problem. pp. 5.

2 Characteristics of Strategic Marketing § orientation in long-term flexible development of real estate business § concentration on resources of attractive new business fields. e.For the development of a successful real estate project the following four points should be taken into consideration: § fixing strategic target markets or fields of product § determining marketing strategies § operative handling of marketing mix instruments § budget 5.g. ecological building § decisions of general principles about methods of corporation activities § real estate dovetailing with other operation fields § gaining competition advantages of customer recognition .

5. Moreover target groups are built and specific marketing strategies are developed.1 Market and Competition Environment The strategic starting point of a property marketing plan has to point in analysing weakness of competitors and to set it against significant strength in choosing location. There is an increasing significance of customer orientation and customer relations because of discrimination. Taking globalisation into account. building quality and property using conceptions. Solutions which are practicable to react flexibly and rapidly on changing market conditions are demanded. Therefore customer satisfaction has the priority uppermost in philosophy.3. the former role of communication and information technology changes dramatically.505): There is area overcapacity and market saturation in nearly every field.3.2 Real Estate Corporation Relation to Environment In our times markets are determined by two main factors: stagnation or shrinking and purchaser domination. 5. Falk. That is why an adequate marketing concept is needed. The strategic starting point of many real estate corporations is described as follows (B. These days property is not in the centre of all business actions any more.5. Furthermore high cost and price pressures are given.3 Basics of Strategic Marketing of Real Estate 5. Now customers rather are the most important resource of real estate corporations. pp. In addition qualities of offers enlarge and competition of competence augments.4 Marketing Conceptions . Real estate corporations need to develop their own individual profile in strategic marketing to keep or to expand their position in market despite stagnational market or to obtain advantages in competition.

of using marketing instruments and of their co-ordinate use.509): § First level: entrepreneurial and marketing aims Entrepreneurial aims are orientation and guiding principles. During property boom or in reaching high profits marketing political activities are used rather minor than in times of recession. Advertising aims are striving conditions such as being well-known.4.1 Structure of Marketing Conceptions At the beginning of developing strategic marketing conceptions it is essential to fix a target system. The use of marketing political instruments has to vary because property markets depend on economic factors. Also it means a conditional and global plan to reach entrepreneurial and marketing aims. rising preferences or increasing customer spreading etc. These instruments should be used corresponding to market situation and should be differentiated to target markets and target groups. § Second level: marketing strategy Marketing strategy is the connecting link between aims and operative marketing measures. During recession the instruments like price policy and sales promotion are often used. § Third level: marketing mix Marketing mix is an elaborated handicap of operative planning processes.5. changing or strengthening the firm s image. Falk. pp. These aims concern three levels (B. Therefore there is a different weightiness in using such instruments. They concentrate on . They are reached by basic entrepreneurial measures.

developing recession marketing conceptions is problematic. 5. Therefore it is necessary to develop a marketing strategy. One tries to reach the aim in using co-ordinated marketing programs.2 Selling Conception The traditional marketing concept results from the problem to attract customers to existing property products.cost-effectiveness. That is why marketing must not vary gravely between booms and recessions. Double advertising means that the firm is: § self-promoting = original advertising . Modern marketing is similar to the use of sales promotion and selling measure to realise sells with profit. using relations and property profitability for investors or users. proximity and satisfaction. Firms which dump their product prices during recession can not sell them as high-quality and exclusive products in other times any more.3 Marketing Conception Management conception takes existing and potential customers into account. 5. However.4. It is important to take into consideration that there are spill-over-effects from time to time. 5.4 Marketing Mix and Double Advertising Conception Real estate corporations mostly practice double advertising in combination with marketing mix.4.4. Main criteria are consumer orientation. This conception is difficult because of fierce competition.

potential output and problem solutions are offered. because this conception is mostly used and very important. investors and building contractors. pp. tenants/lessors. Supply Policy or Product Policy and Distribution This policy determines which services.realistic. decide on conditions. In addition estate agents . Sales Policy Customers commission estate agents or corporations in order to supply or to demand property but also to get consultancy about the range of products of the engaged company. not estate agents. 3. 2. so they aspire two market segments: the market of property suppliers and the market of demanders. Kippes. Estate agents may only influence price imaginations of both market participants to make the price market. It consists of four areas (S. They also make or suggest exploitation concepts of real estates.413): 1. Therefore an estate agent has to be competent in advising to a certain extend. They supply or search houses. Now I will explain its function in the praxis in detail. flats or sites by order of customers. For example estate agents only have consulting influence on product design. Pricing Here object suppliers and demanders.they promote themselves and their services § advertising for customers = derivative advertising on this case property advertising is important Both fields aim at potential purchaser/sellers.

0 Utilised Marketing Measures in the Practice There are two different methods which are used in practice. This policy is getting more and more important at demander markets. 4.decide on which market (regional or national) the property is to supply. One is the active order canvassing and the other one is the passive order canvassing. Both methods are described as follows. Then they find out by which contingency and methods these customers have to be contacted. how the target group is to define and how to speak to them.1 Active Order Canvassing . Kippes. That is why a systematic marketing mix of corporations has to combine and co-ordinate the advertising instruments so that a consistent marketing concept arises (S. Advertising mediums have to be chosen. during and after their decision on the product and to make sure that customers benefit via comes. 6. Property advertising is marketing for the object to gain intended sales success. p. Service Policy Service policy means to accompany the clients before.417). In using these marketing instruments separately the positive effects on these implements may have an adverse effect on one another. contents of advertising campaigns have to be fixed and a secure advertising budget has to be granted. Communication Policy Classic instruments of communication policy are advertising and public relations work. 5. Fixing of property advertising plans is to the fore. 6.

Professional designed advertisements also help to attract new clients and new qualified personnel (S. pp. It may concern advertisements or contacting a seller by telephone etc (E. Potential clients recognise the advertisement before contacting the corporation. . With advertisements real estate corporations absolutely present themselves on the market. pp.138). Advertisements signalise that estate agents or firms look actively after their entrusted property. so that competition is high § customers are more mistrustful because they do not know anything about the service and qualities of the firm or estate agent But there are several methods to attract customers.1 Advertisements As there are many advertising methods. Kippes. Disadvantages: § customer does not know neither the corporation nor the estate agent § there are often several estate agents or real estate corporations in contact with the supplier. Estate agents become active.Estate agents or real estate firms approach property supplier or potential customers about application for an order.452). I will present some of them: 6. most corporations or estate agents concentrate on advertisements in printed media. In what way the estate agent is trying to contact their target groups is irrelevant for definition. Also own employees get motivated in seeing that advertisements contribute to a positive image of their company.1. Sailer.

associations and in local government politics.1. daily papers with their real estate parts (K. Nielen.3 Internet This electronic media will be an indispensable module of integral real estate marketing in the future.299). But only little potential clients have internet or are willing to use it. Kippes.1. e. Relationship advertising is a certain life style .here resources. so that they may win a better image because there are no opening and closing times. potential clients.2 Relationship Advertising or Networking On the one hand relationship marketing comprises the social engagement of estate agents in organizations. information and ideas are interchanged. In the meantime the internet advertising has also an increasing value. pp. pp. In addition customers can compare the offers directly with others.g. . because this network unites 60 million users worldwide today (K. Besides estate agents may be recommended by other members of the network. because here the absolute popular advertising measure to buy or to offer a property are the printed media. 6. pp. Another advantage is that the firms are able to actualise their offers rapidly.434). This network is important because estate agents get information about e. Firms can represent themselves 24 hours a day. Brade.75).g. independent of time and place. invitations for public relations events or special occasions. Estate agents have to build a rather great and intensive co-operating contact network.Examples of supplying advertisements: bad better 6. In addition these agents can refer to this group of people while canvassing for customers or making a follow-up campaign (S. Clients are able to view the offered real estates and properties anonymously. Advertising through the world wide web is getting more and more popular. The mass which can be reached by internet is very small in the real estate field. on the other hand it contains participation in official live at social events.

6. All events are possible that concern the site. They have the purpose to inform the public and to make sure that the public shows understanding and confidence in the project. above all at large-scale projects. Public relations are determined by long-term thinking. destruction ceremony. because returns are not often more than 1-2 %. pp. personal dialogues with the press and journalists. Adequate procedures are sponsoring.281). Direct mails have to be orientated exactly to the target group. Zentes.112). turning the first sod.g. 6. p.77). p. So potential clients become easily attentive. Brade. topping-out ceremony (like 94dance of the cranes94 at 94Potsdamer Platz94 in Berlin) etc (J.4 Direct Mail Direct mails are mailshots aimed at individual households or at businesses en masse or selected through the post (M. e. preview etc (K. Signs should be designed as follows: . Davies. laying the foundation stone. Signs are very popular abroad.1.5 Signs Signs are also a fashionable advertising measure.6. guided project exhibitions. That is why putting up signs is very effective because one can stand out from competitors.1.1. 6. the constructing site or the fixed building. This measure is not very effective. Therefore direct mails are used when there is no other alternative available.1. but not in Germany (here they are not very usual). information seminar for the public or especially for neighbours.7 Public Relations Developing real estate projects particularly in phases of changes such as destruction or new building is often focussed by public interest.6 Event Marketing In times of intensive competition event marketing is used in order to differ from competitors and to rank the own enterprise early.

There are many cases why property suppliers can not sell their products themselves. Nielen.A7 few text. large distance to property or the client is too busy to carry out different viewings etc (E.138). Sailer. . pp.otherwise readers will be confused or irritated § big and readable letters § if possible: illumination § pictures better than text But obviously the signs should regularly be controlled and cleaned. The estate Agent is the passive part of both parties.g.2 Passive Order Canvassing Property suppliers or clients engage estate agents or corporations.241). e. Passive order canvassing is the better alternative compared to active order canvassing. not only black and white A7 big telephone-number so that everybody can see it even from far away A7 only one sign for one property A7 just one real estate corporation on the sign . coloured. because they may be destroyed or become dirty (K. pp. 6.

But basically marketing contains more. firms and estate agents have to wait until the clients come to their office and engage them. Their satisfaction is the first entrepreneurial target. product policy and distribution. In my opinion marketing research should be elucidated in a separate seminar paper because of its complexity.0 Summary Marketing is often equated with advertising or communication. pricing. It consists also of service policy. In bad times the firms or the estate agent will perhaps wait in vain. I have abstained from explaining this method. Targeted use of marketing instruments results in achieving competitive advantages. 7. Marketing in the field of real estate business is very important today. because of the immense competition. there should be a healthy mix of both methods. I have set the focus on strategic marketing and marketing instruments in my seminar paper. Now it is on the corporations to choose the right ones to optimise their strategy. Marketing instruments are various. In our times clients decide which comfort is important for them and which real estate or flat they will buy or rent. To prevent this. Surely the corporations apply marketing research in order to get important information about the market and the customers. .Advantages: A7 estate agent or corporation is consulted solely A7 there is mostly no competition at all A7 customers show their confidence in the estate agent or the firm A7 client is open for price negotiation However.