The Alexander Hamilton Business Institute describes marketing as the prime responsibility for bringing the producer and the consumer together. The Institute describes the task as having two parts: (i) to get the consumers to buy what the producers make and (ii) to get producers to make what consumers will buy.
In the event of Property Sales, marketing becomes complicated. Here, the producer can be seen as the Estate Agent plus the Home seller forming an alliance to become the producer of the product (home) to be sold; and the consumer is the person looking for a new home to buy.
Whilst the marketing manager in a professional company is left to find a balance between the ‘wants’ of the producer and the ‘needs’ of the consumer, the estate agent and the home seller often find themselves in conflict due to the ignorance of the home seller to the need of the consumer.
During the recent boom, many home sellers managed the marketing aspect of selling their home, quite easy. Since the departure of around 35000 estate agents from the market place (South Africa), home sellers are once again lost for good partnerships when it comes to their role as producers. Finding a good Estate Agent to become your marketing partner has become more difficult; in fact, almost as difficult as what it is for a good estate agent to find a producer with a good product that will satisfy the consumer. After all, all 'property' consumers are now looking for a bargain and only the 'desperate' produce bargains at the moment.
In sales, the maxim "Cash is King" is the number one hit again.
Marketing above all is a creative field and as Bradley Hitchings correctly said: "It is in its conflicts, marketing’s most dangerous waters, that lie solutions to its problems."
Pricing of any product can be described as the place where truth meets the dream. In most aspects of sales, price and productivity is linked; however when it comes to the sale of a home – there is more than likely only one producer and one product. Price is thus singled out as the trigger-factor in the sale of a home.
The producer (the home seller) will calculate his cost and ad on some profit, whilst the consumer (the home buyer) will weigh up the benefits of an easier lifestyle against the cost of acquiring it. A product that has the best return on utility and pleasure will tip the scale.
The Estate Agent needs to find a balance between the producer and the consumer and in today’s true marketing language "cash is king".
Marketing a home can thus be described as a scientific mixture with ingredients such as promoting, pricing, justifying, cost, benefit, demand, expectation and after all consumer protection.
The critical link to a successful sale is the understanding of the producer (the home seller) of the entire process.
Linda Erasmus, CEO of Fine & Country South Africa, who started her sales career in 1986 and witnessed several cycles in the property market, says "There is never a good time or a bad time to sell a home. It all depends on the circumstances of the person wanting to sell. Most people sell and buy in the same market. The most important aspect to consider is where you will take your profits from the sale of your home in the current economy. Home sellers should ask their estate agent to produce a market study in order to get guidance in the sale price of their home. Marketing remains the essence of attracting a willing and able buyer and pricing remains a key-aspect of good marketing. After all – with so many restraints on financial lending, the bargain hunter with cash in his pocket, may still just be the one you need to put you back in profit."