When I was getting my undergraduate degree in Business Administration with concentration in Marketing almost in every course we studied 4 Ps of marketing. Anything that can be marketed for profi
t has these 4 attributes:
- Product
- Price
- Place
- Promotion
With real estate being a tangible asset, it is easy:
Product-a piece of real estate for sale: land, a house, a condo, a multi-family residence, a commercial building, etc.
Price-every successful product marketing involves competitive pricing: if it's price too high to sell, nobody is going to buy it, if it's price too low you won't be able to realize maximum net profit
Place- well with real estate, that well-known cliché comes to mind-Location! Location! Location! That's one variable in a real estate equation that we usually can't do much about. It's either fabulous like oceanfront, mountain view, near schools, or not so great like a residential home backing up to rail road tracks, condo facing high-rise building with limited day light, etc. For that reason
Promotion- is the key to success that ties up previous 3 attributes. When marketing a property we need to let potential buyers know about the product (what's so special about this house than the other, tell a narrative story) include the place (where is it? Are there amenities near by such as shopping or parks) and don't forget the price. If a house is not priced well, it doesn't matter what type of promotion you have for this product.
Obviously, this is a very basic marketing overview, but I thought I'd remind myself and everybody else that real estate is a commodity market and every commodity market has its ups and downs, so sometimes it's great to review basics to move forward with the changing face of business.
Anna Lukyanova
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The 5th P is for Professionalism - Its a very important to be professional in the whole process of marketing real estate. If all of us add this 5th P we can certainly improve the public image of Realtors.