The Marketing Concept

The Marketing Concept

Purpose of Marketing Strategies • Meet production goals • Meet goals of customers • Find target market(s) • List a productive inventory • Compete effectively

The Marketing Concept Mission statement Find the needs The customer’s role Building a relationship Putting it to work Problems

Mission Statement • Purpose of the business • Specialization • Who does the agent represent? • Why is agent in business? • Defines the target market

Find the needs Introduction • Take on a customer orientation • Address the goal orientation • Balance the components of the marketing concept with a systems orientation

Find the Needs Customer Orientation • Discover the composition of the marketplace • Identify the needs of the broader target market • List inventory that meets the customer’s needs

Find the Needs Goal Orientation • Losing sight of a goal wastes time • Number of listings/sales per month • Income or market share goals • Understanding the customer’s goals • Customers more readily trust those who reach their goals

Find the Needs System Orientation • System breakdown • Integrate customer orientation with goal orientation • Don’t send conflicting signals • Coordinate and balance diverse information and actions

The Customer’s Role • The User • Occupies the property • They are not necessarily the buyer • The Buyer • Has the credit to make the purchase • Could be different from the user

The Customer’s Role The Decider • May be someone other than the buyer • May not have the credit for the purchase • Makes the buying decision

The Customer’s Role • The Influencer/Gatekeeper • Gives information to the buyer • May be children, relatives, spouse

The Customer’s Role Marketing your product/service to the wrong customer may offend: • The Buyer • The User • The Influencer • The Decider

Building a Relationship • Encourage the repeat customer • Stay in touch • Follow up with buyers and sellers during and after the sale • Perform, even when there is no obligation to do so

Building a Company Image Self-Assessment • Is inventory available for the target market? • Is the staff well-trained? • Are listings priced at what the market wants to pay? • Are your listings located where the target market wants them? • Are you dependent upon other agencies for your inventory?

Building a Company Image Office Image • What do you see when first entering your office? • Use of computers • Efficient use of time • Agents and staff listen to the customer • Agents follow up with customers

Building a Company Image Safety and Regulations • Avoid lawsuits • Fully inform customers • Avoid misrepresentation • Explanations of APR, interest rates, truth-in-lending, escrow, title insurance, and the transfer process

Building a Company Image Follow-Up • Demonstrate an interest in the prospect’s needs • Update the customers on the transfer process at least once a week • Adjust the marketing plan if necessary • Let the customer become part of any solutions

Problems The following represent problems with implementing the marketing concept

Problems • Phone Call Ends • The agent or staff did not: • get the caller’s name • get the caller’s address • get the caller’s phone number • set up an appointment

Problems • Stay in touch with past customers • Send them a letter, card, or e-mail at least three or four times a year • Follow up all non-personal contact with a phone call Past customer lists with another agency

Problems • Lack of proper training • Prospect must have a reason to call back • Treat as a lost sale and try to get their name and telephone number Prospects don’t call back

Problems • Change the marketing mix • If you choose not to represent the needs of the customer, there is no need for them to call you Advertising and promotions are not working

Problems • The telephone should not ring more than three times • Limit telephone hold time to less than 17 seconds • Recognize customers when they enter the office Customer is waiting

Problems Increasing cancellations • Caused by price, promotion, or place strategies • In the prospect’s perception it is ALWAYS the agent’s fault

Problems Increasing worth • The agent’s net worth should increase annually • A decline in net worth means a decrease in sales volume or productivity

Problems Agents do not understand their market • Taking a listing without knowing the demographics of the area • Harmful to an agent’s reputation • Negatively affects customer relations

Problems • Lack of inventory knowledge • Creates more difficulty when asking interview questions • Creates difficulty in problem solving • Suggests a lack of professionalism

Problems • Market Adjustments • The market is always changing • Without constant attention, may affect office reputation • Take listings that meet the needs of a changing marketplace

Problems • Loss of productive agents • Possibly due to over-management • Salespeople who are consumed with training new licensees or answering their questions may move on • Proven licensees may fall into the trap that the “grass is always greener…”

The Marketing Concept