Marketing Mix Report: Analysis and Adjustment for Local Realtors

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ESTABLISH AND ADJUST THE
MARKETING MIX
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Contents
Assessment Task 1...........................................................................................................................3
Assessment Task 2...........................................................................................................................7
1. Write a marketing mix report...............................................................................................7
2. E-mail to the Managing Director........................................................................................10
Assessment Task 3.........................................................................................................................12
Revised marketing mix report...................................................................................................12
1. Email to Managing Director...............................................................................................15
Assessment Task 4.........................................................................................................................16
Answer the questions.....................................................................................................................16
References:....................................................................................................................................19
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Assessment Task 1
Question 1
The policies and procedures relevant to marketing are as follows:
 Positioning: The marketing policies of an organization serve two main objectives. These
include positioning the business in the market and promotion of products and services of
the organization. Positioning refers to how ingratiation of business and its products in the
minds of customers. It is an important policy for marketing (Fan, et.al., 2015).
 4 P’s of the marketing mix: The 4P’s of the marketing mix are price, place, product, and
promotion. All these P's are the core element of marketing policies and procedures of an
organization. It helps the organization in the development of a marketing plan under
which a right product is promoted at the right place and right price.
Question 2
Various marketing communication methods are as follows:
 Product:
Nature Care Products is an established company and therefore has a high budget. The
company can communicate with potential and existing customers using advertising and
other sales promotion techniques. Such sales techniques may include providing the
customers with coupons, samples or discounted prices.
 Services:
Grow Management Consultants is a company providing leadership development services
to other businesses. It has a low budget for communicating with existing and potential
customers. The company may opt for options such as direct marketing for promotions.
Under this, marketing is done using personal e-mails or telemarketing calls (Khan, 2014).
Question 3
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The development of new products and services can provide an organization with better
opportunities in new and existing markets in the following ways:
 Anxious customers: When new products and services are introduced, the consumers will
be anxious to test the products and services and this will help the company in attracting
more customers (Mintz & Currim, 2013).
 Higher value proposition: When the products and services are developed according to
the needs of customers, then it creates more repeat customers and also contribute to word
of mouth marketing.
Question 4
A marketing mix is a marketing tool used by the companies to produce the desired response from
its existing and potential market. There are four main components of the marketing mix
including:
 Product: These are the goods and services that the company offers to its customers.
 Price: It is the amount paid by the customers to the company in exchange for products
and services.
 Place: It refers to the activities by which the products and services are made available to
consumers.
 Promotion: These are the activities which introduce the products and services to
customers.
Question 5
The three principles that influence the buying behaviors of customers include the following:
 Psychological Factors: These are the factors that influence the perception of an
individual, his ability to understand and attitude (Gordon, 2012).
 Personal Factors: These are the factors which are specific to an individual and includes
his uniques interests and habits, opinions or background.
 Social Factors: These are the factors that a person adapts from his social environment
including his family, social interaction, community or group.
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Question 6
The behavior of customers helps an organization in forecasting the market demand and its sales.
The psychographics of customers is important to develop the products and promote them. The
perception of a consumer towards a product helps an organization in making decisions relating to
pricing and how and where to sell the product.
Question 7
Product Life cycle refers to the stages that a product goes through starting from development,
introduction, growth, maturity, and decline. Understanding this life cycle helps the companies in
identifying the ways in which the product must be introduced and in creating strategies to
generate demand for products in the market. Further, in the maturity stage, the marketing mix
helps in building customer loyalty and in the decline stage, it focuses on reinforcing the brand
image of the product.
Question 8
The three pricing strategies are as follows:
 Cost-plus pricing: In this strategy, the costs are calculated simply and the mark-up is
added.
 Competitive pricing: In this strategy, the prices are charged based on what the
competition charges (Christopher, et.al., 2013).
 Value-based pricing: In this strategy, the price is set according to what the consumers
believe what the product is worth for.
Question 9
The three types of promotional strategies include the following:
 Product Giveaway: The customer can be provided with free samples. It allows the
customers to test the product before purchase and is a great promotional strategy.
 Using social media: The platform of social networking such as Facebook, Twitter,
Instagram can be used for direct marketing.
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 Mail order marketing: The products and services are offered for free in exchange for
information in this type of promotional strategy(Fan, et.al., 2015).
Question 10
The various types of distribution strategies are as follows:
 Indirect distribution: This is a strategy in which the products are not sold to the
consumers directly but through an intermediary. For example- wholesaler to retailer and
then the retailer to consumer.
 Direct distribution: This is a strategy in which the products are sold to the customers
directly without involving an intermediary. For example- Dell computers. puters.
 Selective Distribution: This is a strategy under which the products are sold to customers
through limited outlets. For example- Zara, Armani.
Question 11
The statistical techniques that can be used to collect and analyze data include the following:
 Primary Market research: This is the research conducted by an organization itself to
improve its services, products, and functions.
 Secondary Market research: This is the research which is not conducted by an
organization itself but it uses data which has already been collected by any other
organization or agency (Khan, 2014).
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Assessment Task 2
1. Write a marketing mix report
Overview of the company and its objectives, desired position, and target market
characteristics.
Local Realtors is a company established in Melbourne, Victoria which deals in real estate
business. The company trades in real estate property. Its aims and objectives are to provide its
clients or customers with the property at a place where they like and at an affordable price. The
company charges their commission in the form of the brokerage and desires to earn a
competitive advantage against the competitors of the same industry. The Local Realtors targets
the people of Australia mainly of Melbourne. It provides the best property which is beneficial for
its clients for having a happy, comfortable and worry-free home. It aims to provide a property
which is hassle free and there are no government regulations which can trouble the client in the
future. It aims to earn higher profits by fulfilling the needs and desires of its customers. The
company uses a tagline to promote its products which is “Your First Home Purchase Made
Easy”.
Evaluation of components of the marketing mix
Product/ Service:
The product or services are for the clients who aim to buy the property for having a comfortable,
worry-free and happy living in their new homes. The product or service will benefit the company
in increasing its revenues and profitability. This will help in understanding the potential
customers and hence about the target market.
Price:
The company uses market penetration pricing strategy which helps in attracting more number of
customers. The products should be offered at a price at which the company does not face any
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loss. After using a market penetration strategy, it should not use other variables such as
discounts.
Promotion:
The company should advertise its products through hoardings or distributing pamphlets with
newspapers. The most appropriate way to promote its products or services is electronic
advertisements. The company will use the direct mailing of postcards to the people living on
rents.
Place:
In the real estate business, the companies use online and physical channels mean to position their
products or services. It must create its brand image to attract its customers and increase its
goodwill.
People and Customer Service:
The company provides services from marketing to final transferring the property to the
customers. The company provides its product so as to fulfill the customer’s needs and provide
customer support by fulfilling their demands (Armstrong, et. al., 2015).
Analysis of varying the marketing mix
The marketing mix comprises of 5P's which enables the company to make decisions about its
products, pricing strategy, place, promotion, and people. Each and every component of the
marketing mix is essential to improve the profitability of the company and to raise the goodwill
by increasing market share. Marketing mix helps the company in attaining competitive
advantage and each of the components of the marketing mix affects others. For instance:
(1) If the quality of the product has been improved, the price will be increased.
(2) High price requires a better promotional strategy so that people can buy the product at a
higher price as well.
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(3) The high price will be charged from the potential customers and so targeted audiences
will also be affected.
(4) Changing the targeted audience affects the distribution channel.
Hence, the elements of the marketing mix are inter-linked and get affected by the change in any
one variable.
Determination of the final marketing mix
PESTLE on marketing mix
Political: The laws, regulations, taxes, and rate of inflation imposed by the government affect
the marketing mix of real estate business.
Economic: Interest rates, economic growth, and unemployment rates are economic factors.
Social: Demographics, growth in population, and cultural changes are social factors.
Technological: Online booking and renting of properties are the technological factors which
affect the marketing mix.
Environmental: Climatic conditions of the areas, attitude towards ecological products, etc.
Legal: Legal factors include discrimination law, consumer protection, health, and safety law, etc
(Peng, et. al., 2017).
Consumer needs, priorities, and preferences
The consumer is a king and it is essential to fulfilling the needs, desires, and preferences of the
consumers for the success of the business. Changing the need and priorities of the customers
affects the business environment of the company and management has to make modifications in
its marketing mix accordingly to attain success (Clark, et. al., 2017).
Impact of marketing objectives
The Local Realtors aims to increase its revenues and profits by maximizing the market share and
earning a competitive advantage. The target customers are those which company thinks are
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potential and capable to buy its products. The marketing objectives and target customers affect
the marketing mix because the objectives and type of customers depend on what type of products
and quality of products are to be offered and at what price. These two factors affect the
marketing mix as it will help the company in analyzing the paying capacity of the customers
against the cost charged by it after considering all the expenses.
Recommendations
After considering all the factors, several recommendations for marketing mix in relation to the
products and services offered by the real estate company are:
1) The company shall adopt a pricing strategy which not only gives the company a
competitive advantage but also provides customers to afford the products and the
company does not suffer loss from the same. Using market penetration pricing strategy is
not successful because the company sells the products at a lower price just to attract more
customers.
2) The company should make optimum utilization of advanced technology to advertise its
products through social media, television advertisements, radio advertisements, etc.
2. E-mail to the Managing Director
To,
Managing Director.
Subject: Marketing Mix Report
Hello Sir,
This is to inform you that I, being Marketing Manager of the Local Realtors have after conducting proper
research and analysis on the current market situations and available competitors in the same industry have
prepared a marketing mix which will help the company in attaining higher growth and development. The
marketing mix includes the product and its quality to be offered, the pricing strategy company shall use,
targeted audience, promotional strategies, etc. Herewith attached the report of the marketing mix, kindly
go through the same and provide your valuable suggestions.
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Thanks & Regards,
Marketing Manager
(Local Realtors)
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Assessment Task 3
Revised marketing mix report
An analysis of market trends in Melbourne real estate over the last twelve months, and
whether this may have affected Local Realtors’ results.
The market research has been conducted and marketing trends have been analyzed of the past
twelve months in the real estate sector in Melbourne. According to the data collected from the
past 12 months, the real estate sector has grown a lot and a vast number of properties has been
traded in the last year. People are more focused on improving their standard of living and aim to
have their own house instead of living on a rental basis. The Local Realtors’ have set their goals
and as per marketing trend the results of the company have affected but the company can make
necessary changes to accomplish its desired goals.
A review of any changes to legislation (such as negative gearing, or lending restrictions, and
whether this may have affected Local Realtors’ results).
There are several legislations and rules imposed such as lending restrictions which makes it
difficult for the companies to lend money when required and hence, makes it difficult for them to
accomplish their tasks within time. The changes in the legislation have affected the results set by
the Local Realtors' because they have recently started their business and it is difficult to perform
business operations without any strong source of funding. As restrictions have been imposed in
the lending procedure the results of the company can take more time to accomplish which creates
a negative impact on the company against the customers.
An analysis of each component of the marketing mix and possible reasons as to why this
component of the marketing mix may have not led to an increase in sales desired.
There are five components of the marketing mix which are a product, price, place, promotion,
and people. Each component of the marketing mix is related to another and change in one
variable of marketing mix affects another. The product component describes the product to be
offered and the quality of the product, the price components describes the pricing strategy used
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