Real Estate Property Sales: Target Market And Strategies Essay.

Answer to question (a)

The market segment for Whangamata area will be to target the age group of 25 and above of both the genders as they fall under the high-income group. This will help me in selling off the properties, as the estimated property value of this area is around $1,698,333 (Manganelli et al. 2014). The demography of this place is a mixture of old and young people who are financially sound. On researching, I found that the price of the property in this place is around $900,000 and above.

The demography of the Mairehau area is that the people are mostly middle-aged and living with their children. Their income is from the daily jobs that they have been doing for a long time. The value of the property is estimated to be around $200,000 to $400,000.

Answer to question (b)

The target client for my Whangamata area will include the individuals who are rich, as it will help me in selling my idea in a proper manner. I need to understand the area properly, which will help me in understanding the services that are required to convince the people of that area. It will help me in making them understand the need to invest in real estate market, which will prove to be beneficial in the future.

The target client of Mairehau will include the people who are living in old houses and the families that are facing space issues with their children in their houses. It will provide me with an opportunity to help them in understanding the benefits of moving in to a new location, as it will help the family to bond well (Ghysels et al. 2012).

Answer to question (c)

My personal positioning strategy will be to remind my target clients of the business that I am handling. In this way, it will help me to build my reputation in the sale of real estate properties.  As many of my clients are content with the services that have been provided to them, I will use it to my advantage and persuade the new clients that am good and reliable in this business. This will help me in broadening my customer base. I will also remind my clients that they need to choose me over the other salesperson that are present in the area because of the truthful advice that I give to them and I need to show them examples of these by carrying out my task in an efficient manner. This will help me to gain a competitive advantage over other salesperson, as they are mostly deceitful in nature (Nick 2013).

Answer to question (a)

Answer to question (d)

My personal positioning strategy stated above will help my target clients to benefit because I will be true to them and answer all their queries in a diligent manner. This will help in building up of trust with my clients, as they will put their faith in me. The price that will be quoted for the properties will be according to the needs and within the means of the clients. This will help me in retaining my customer base. The use of my communication skill and the persuasive manner that I possess will help my target clients to invest in the projects that I will be currently working. The clients will receive all the services such as inspecting the plots before they are willing to invest in the project. This will ensure that a strong bond is created between us (Locander, Mulki and Weinberg 2014).

Answer to question (a)

For the direct marketing plan of my target clients in the Whangamata market segment, I will offer them the high quality high price plan as the economy in this market is financially strong and my clients are willing to spend provided they are assured of quality products.

Answer to question (b)

The strategies that will be taken up by me to attract new clients is that the images with respect to the projects that the company is undertaking needs to be appealing to the customers. The first impression of the project will make a lasting impression on the minds of the customers. The second strategy would be to communicate with the clients in a proper manner. They should be informed properly about the project that the clients are willing to invest so that there will be no discrepancies in the future. The third strategy that will be taken up by me would be selecting the locations that will help me to present my ideas to the prospective clients in a better way. I need to be in a better position with respect to my presentation and the timeliness so that I can convince the target clients in a more positive manner (Khanna, JM van der Voordt and Koppels 2013).

Answer to question (c)

To retain my current clients the strategies I can utilize is that to give them a weekly phone call and arranging a meeting every fortnight, which will keep them in constant touch with the company regarding the new projects that the company is undertaking. It will enable the clients to provide valuable feedbacks regarding the upcoming projects from the interests that they are showing in the ongoing projects. The other strategy would be to offer them discounts on a monthly basis so that the clients can be retained for longer periods. The discount that will be provided by me would be above the normal market rate, which my competitors would be allowing (Marona and Gluszak 2014).

Answer to question (b)

Answer to question (d)

 Answer to question (e)

(i) I will abide by the Fair Trading Act 1986, which will help me to practice with honesty, fairness and professionalism with all my clients. I will not mislead or deceive my clients that will hurt the sentiments of my clients. This will help the client to take rational decision regarding the product that I am selling to them.

(ii) I will follow the guidelines laid down in Privacy Act 1993, which will help me in ensuring that the personal information of my target clients regarding their security will not be disclosed by me. The company will follow the guideline by keeping the information confidential from any other agency. It will be only liable to produce the information if the regulatory body of New Zealand orders it.

(iii) The Unsolicited Electronic Messages Act 2007 will help me in consulting the clients to send them the messages regarding the property. This will help me in avoiding the spam that is present in the mails of the account holders of the clients. The consent can be taken from the clients through making them tick on the box that is there on the form or by verbally stating the clients over the phone or face-to-face communication.

(iv)  The Real Estate Agent Act 2008 and Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 will help me in dealing professionally with the clients, which includes appraisal and pricing of the property, agency agreements, contractual documents and marketing of my properties.  

(v) The practices with respect to the real estate industry are to undertake various Corporate Social Responsibility within the society where the company is building its project. The documents and the manuals that will be presented to the clients will go through a thorough check by the management of the company so that hidden informations can be avoided. It will help to ensure that the companies sustainably maintain its balance with respect to the environment and with the clients.

Answer to question (f)

As a salesperson for the company, it will help me to learn the important qualities that need to be in a good sales representative. It will help me in practicing the communication skills that are required while communicating with my existing, current and future clients. The benefit for the company will be that I can influence the clients with my interpersonal skills that will help in earning profit and create new customer base.

Answer to question (c)

List A

 To attract new customers and to retain the existing clients, promotional modes for the advertisement need to be attractive. Moreover, there are different promotional modes that are used in real estate such as flyers, newsletter, newspaper advertisement, Email and many more. However, the Email sending mode appears to me as the better way for promoting new offers to attract the existing clients and win their trust to enjoy a long participation of business with them (Siemieniako and G?barowski 2014). An Email is less expensive and more professional in business terms and that is the reason, sending an Email to the existing client would maintain a better professional relationship with them (Kohlhepp 2012). 

An Email sample to the existing client for some new property offers

To,

The existing client

Sub: Attractive property at affordable prices is for a sale.

Dear Client,

I am feeling proud to bring something in your notification that we have some new offers for you. Moreover, a few hectares of lands at affordable prices are for a sale. However, rates are not yet finalized, it is under process but this would be lower than the previous offering. I would like to tell you that the property is surrounded by lush green areas with all the facilities and amenities such as schools, hotels, hospitals, airports and many more close to this. If you are thinking of buying something more excited than the present, then this is the right time for you to grab the chances with both hands. The above-cited offers might inspire your desire, as this is one of the finest offerings from our agency. It has been years of excellence since we are serving our customers with various different offerings. Please respond to this mail as soon as possible as offer is for a limited period now. After the expiring of the offer, you would not be entertained any further.

Please feel free to call me on the number given below for any further queries related to the property possession:

0027 473 5563

Fax me at: (06) 8352570

Mail me at [email protected]

Regards

A consultant of a local real estate agency

(Licensed under the Real Estate Agents Act 2008) 

List B

 To attract new customers, there are some promotional modes such as Flyer, Newsletter, Newspaper advertisement and many more, which are effective in grabbing a hold on its viewers. However, newspaper advertisement to me is the most effective way, as these kinds of advertisements do possess photos of proposed properties alongside the text advertisement (Sean and Hong 2014). However, the newspaper advertisements do cost a healthy amount to the real estate companies. Nevertheless, this is one of the most effective ways of promoting a property to attract new customers. Further, it is an undeniable fact that online ad posting for properties have very much lowered the value of newspaper advertisement. Moreover, it is a potential source to reach to a maximum number of customers than the newspaper advertisement. Nonetheless, the newspaper advertisement mode is best feasible with the administrative system of my Company (Lang and Sittler 2012). 

Answer to question (d)

A newspaper advertisement to attract new customers for a property sale

A consultant of a local real estate agency

If you were thinking of buying, something for a long but not have the right value to your money, then this would be a perfect deal for you. I have something very exciting for you at the most affordable prices. A few hectares of land, which is surrounded by full lush green environment and all sort of amenities such as hospitals, schools, airport, shopping malls and many more, are available at the most affordable prices. There is no point of wasting time, as the offer is available for a limited period now. Do not waste your time anymore and grab this rare opportunity.

A local real estate Company

(Licensed under the Real Estate Agents Act 2008)

Call: 0027 473 5563

Fax: (06) 8352570

Mail: [email protected] 

Monday to Saturday, 08:30 am to 06:30 pm 

Answer to question (a)

 It was indeed a good move by Devon that he targeted the entire area for the flyer content to grab more and more sellers and buyers. However, Devon somehow forgot to calculate the total expenditure, which the flyer can put on the shoulders of Polyvale Realty Ltd. Moreover, the usage of papers for distributing the flyers and the office photocopy was not included in the calculation before distributing the flyer. Distributing flyers in the form of papers to 1000 households in the locality should have done after doing the calculations on the expenses to carry on a measurable approach to attract sellers and buyers (Ayodele, Babajide and Oluwatofunmi 2015).

 Relating the need for the property with everyone’s need was another mistake, which Devon did in his flyer. In place of everyone, mentioning most of you would have left a better impact on residents and could have contributed in turning out of a large number of responses from sellers and buyers (Kuttner and Shim 2012).

 Using the sentence “Your local area estate expert” is one of the mistakes, which Devon committed while writing the text for a flyer. It could have better written in a way as follows:

“A consultant of a local real estate agency”

Moreover, it is as per the compliance of the real estate agents act 2008 (Kohlhepp 2012).

Answer to question (b)

 Devon has spent a total of $2322.5 on the entire campaigning excluding any GST content from the hours spent. Moreover, GST is added to the costing of advertisements. Moreover, for an hour Devon is considering $25.

Task 2: A report to be presented to Ms. Stephanie Smith, Branch Manager of NT Realty Pvt. Ltd.

Answer to question (c)

Total number of leads generated by the campaigning of Devon is equal to 29. Moreover, six were from the flyers, five were from the heraldand the rest 18 were from the phone calls campaigning modes.

Devon completed ten appraisals from his campaigning

Number of listings, which Devon has fetched from his campaigning, is equal to two.

Moreover, only one customer has so far turned out as an actual profit for the campaigning, which actually bought the property through Devon. Moreover, the cold calling made to this customer by Devon has actually worked.

Answer to question (d)

 $17,550 (plus GST) would be the total earnings for Devon through this campaigning.

Answer to question (e)

 The ratio of leads to sales is equal to 29:1, as only one has so far confirmed the buying of property with another is on the same line.

Answer to question (f)

 $1161.25 is the total cost for the listing of each customer, which Devon has achieved so far for doing the entire campaigning.

Reference List

Ayodele, O.M., Babajide, O. and Oluwatofunmi, A.D., 2015. Assessment of Use of Social Media in Real Estate Transactions in Lagos Property Market. Management, 1(2), pp.63-68.

Ghysels, E., Plazzi, A., Torous, W.N. and Valkanov, R.I., 2012. Forecasting real estate prices.

Khanna, C., JM van der Voordt, T. and W. Koppels, P., 2013. Corporate real estate mirrors brand: a conceptual framework and practical applications. Journal of Corporate Real Estate, 15(3/4), pp.213-230.

Kohlhepp, D.B., 2012, April. The Real Estate Development Matrix. In The American Real Estate Society Meetings.

Kuttner, K. and Shim, I., 2012. Taming the real estate beast: the effects of monetary and macroprudential policies on housing prices and credit. Property Markets and Financial Stability, pp.231-259.

Lang, V. and Sittler, P., 2012, January. Augmented reality For real estate. In Research Paper, 18th Pacific-RIM Real Estate Society (PRRES) Conference, Adelaide, Australia.

Locander, D.A., Mulki, J.P. and Weinberg, F.J., 2014. How do salespeople make decisions? The role of emotions and deliberation on adaptive selling, and the moderating role of intuition. Psychology & Marketing, 31(6), pp.387-403.

Manganelli, B., Pontrandolfi, P., Azzato, A. and Murgante, B., 2014. Using geographically weighted regression for housing market segmentation. International Journal of Business Intelligence and Data Mining 13, 9(2), pp.161-177.

Marona, B. and G?uszak, M., 2014. The Ties that Bind? Real Estate Education in Europe and Regulatory Framework in Poland. The New Educational Review, 35(1), pp.187-201.

Nick, N., 2013. Considerations for selection of a real estate expert. Real Estate Issues, 38(3), pp.36-44.

Sean, S.L. and Hong, T.T., 2014. Factors affecting the purchase decision of investors in the residential property market in Malaysia. Journal of Surveying, Construction and Property, 5(2), pp.1-13.

Siemieniako, D. and G?barowski, M., 2014. A Process of Dynamic Trade Show Activity Management within a Real Estate Development Project Life Cycle. Modern Management Review, 19(21 (3)), pp.129-141.