Digital Technologies Impact on Marketing Mix: Real Estate

The marketing mix consists of seven key variables which can be used to develop a marketing strategy and ultimately meet the needs and wants of the customer. Digital technology has impacted the marketing mix within the Real Estate sector.

(Marketing Mix, 2019)

Product

The product variable refers to what you are selling, it primarily involves researching the customers needs and developing an appropriate product. Real Estate agencies are actually providing a service to its customers and the property itself. The service provided includes marketing and negotiating a sale to the client, educating buyers throughout the decision process and proving regular updates on property sales. The Internet has impacted the product element within Real Estate, because it has changed how it provides the service and market the property. Today consumers are more mobile and connected through social media and online platforms. Innovations in technology has improved features, quality and overall appearance of properties. Internet has made services and properties readily available to clients looking to buy an apartment, house or land. It has allowed the industry to advance and reach a larger target market.

Promotion

Promotion refers to how agents will market, advertise and expose the product to an audience. It’s all about the actual marketing. If the property is at the right price and promoted well then it will automatically attract buyers (Mctague, 2015). Promotion of property begins with how you communicate marketing tactics via sales and personal promotions, branding and direct marketing. The first way that advanced technology has impacted the promotion of real estate is through photos and quality images to sell the property being marketed. Viewings, sales and the overall process of selling and buying properties have changed dramatically due to the development of new technology.

‘Potential buyers can view properties in true-to-life definition through VR or online tours – virtually walking through 50 properties in the time that it would take to visit one’

(Matt Bell, 2017)

Marketing properties online has allowed listings to be shared through numerous social platforms and agencies can utilize artificial intelligence to understand what buyers want.  

Price

This refers to the pricing strategy of the service and product and how it will overall affect the customer (Hanlon, 2019). Price is an important factor within the real estate industry because if a property is not priced correctly, customers will not pay for it. Auction is, ‘A sale of property to the highest bidder.’ (Webster, 2019). Technology has advanced this specific industry sector as it has created a new world of online auctions (Friedrich, 2019). These allow buyers to bid simply through the screen of their computers. Apps like realestate.com and Domain have allowed buyers to place a bid at a touch of a button. Shifting this industry towards digital platform has placed businesses at a competitive advantage.

Place

The fourth ‘P’ refers to how the property is positioned in the marketplace with the correct price and promotion in place. This can be the physical location of the property or the digital presence of the business. Technology has allowed businesses to set the face and tone of voice for the agency through their brand. It is conveyed through visual marketing, reputation and the presentation and professionalism of staff.

People

This variable is referring to the entire team within the Real Estate Agency. Assistants, agents, support staff are all members who help directly or indirectly with how you sell properties. By establishing positive culture, providing trainings for all employees. Internet has impacted the recruitment process, with many employees finding job opportunities within the industry online. Internet has allowed trainings to be undertaken online to help retain staff and strengthen the agency’s brand.

(Dholakiya, 2019)

Process

This involves the methods and procedures companies use to achieve all marketing functions (Chaffey & Chadwick, 2016). Important agents communicate their marketing efforts with seller client, showing client feedback and analysing data from your listings. It is important from the time the property is listed until sold and legal documentation is finalised. With the new development of technology and new innovations, it is improving the speed and quality of the buying and selling process in the property industry. Habito is an example of the few innovative technologies that have helped the industry grow by speeding up sales (Habito, 2019).

Physical Evidence

Physical evidence is everything the customer will see when interacting with the business (Business Qld, 2019) How will we reassure our customers? Well-trained staff, great website, impressive properties, branding or even the reputation and how staff present themselves? It is important to understand within real estate, you cannot make everyone happy. However, if the property is chosen and priced correctly, and promotion and position of the property is right then you will have fewer problems and happier clients. Testimonials are an important use of physical evidence. Real Estate agencies like Ray White have included testimonials within their online website (Ray White Glen Waverley, 2019). It helps build the brand image and position yourself with authority to give proof. Standardised processes in place and creating templates to ultimately help agency stay consistent and minimise errors. With new innovations in technology it will help track the spending across multiple channels and measure the effectiveness of campaigns and marketing.

(Hanlong, 2019)

SMART

Marketing mix can work as a business model to help more listing clients at a higher level. Each of the 7 P’s play an important role in ensuring your product reach the right audience. By developing a property marketing strategy will consider the various elements which can influence consumers purchase behaviour. It is important and critical when setting goals for each of the 7 P’s that they are SMART goals; Specific, Measurable, Achievable, Relevant and Timely (Business Qld, 2019). These five objectives are specific methods to measure and follow the progress of a business. If the business chooses the right mixture of marketing across the 7 P’s, the marketing strategy will have a higher chance of succeeding.

References

Business Qld (2019). The 7 Ps of marketing | Business Queensland. [online] Business.qld.gov.au. Available at: https://www.business.qld.gov.au/running-business/marketing-sales/marketing-promotion/marketing-basics/seven-ps-marketing [Accessed 10 Sep. 2019].

Chaffey, D., Ellis-Chadwick, F. (2016). Digital Marketing. 6th,Montreuil: Pearson.

Dholakiya, P. (2019). Real Estate Link Building: 3 of the Best Tactics. [online] Search Engine Journal. Available at: https://www.searchenginejournal.com/real-estate-link-building-tactics/296545/ [Accessed 10 Sep. 2019].

Friedrich, J. (2019). Online Auctions: How Internet & Technology Are Changing Auctions – REALTORS® Land Institute. [online] REALTORS® Land Institute. Available at:

Online Auctions: How Internet & Technology Are Changing Auctions
[Accessed 10 Sep. 2019].

Habito. (2019). The UK’s Online Mortgage Broker – Fee Free Mortgage Advice | Habito. [online] Available at: https://www.habito.com [Accessed 10 Sep. 2019].

Hanlon, A. (2019). How to use the 7Ps Marketing Mix? – Smart Insights. [online] Smart Insights. Available at:

How to use the 7Ps Marketing Mix
[Accessed 10 Sep. 2019].

McTague, R. (2015). 7 P’s of real estate listing marketing. [online] Inman. Available at: https://www.inman.com/2015/02/17/7-ps-of-real-estate-listing-marketing/ [Accessed 10 Sep. 2019].

Merriam-Webster (2019). Definition of AUCTION. [online] Merriam-webster.com. Available at: https://www.merriam-webster.com/dictionary/auction [Accessed 10 Sep. 2019].

Ray White Glen Waverley. (2019). Testimonials. [online] Available at: https://raywhitegw.com/sell/testimonials [Accessed 10 Sep. 2019].

4 thoughts on “Digital Technologies Impact on Marketing Mix: Real Estate

  1. Well thought out and presented – great job! I’d love to hear what you think of my post on this concept for the apparel industry, head over to let me know!

    Like

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