(Original post by chica123)
marketing strategy essay
9. Evaluate the effectiveness of SLSL’s marketing strategy.
A marketing strategy is a plan that aids a business to achieve its objective and the marketing mix consists of price, place, product and the key element of the strategy is promotion. SLSL is an estate agency that operates in a market where houses are sold between £190,000 and £315,000; the promotion that SLSL use is a below the line method of promotion as they target a niche market in Stamton, Upham and Oakford and the case study states in lines 30-32 that image is very important to SLSL and very effective in helping them achieve their sales and increase their revenues by 4%.
SLSL use both internal and external methods of promotion, the internal promotion involves the layout of SLSL branches which is very important as it projects a professional and confident image that then attracts customers and the way its projected is stated in lines 34-38 in the case study. In addition, personal selling is also a very important aspect of SLSL’s marketing strategy as stated in lines 32-33 because personal selling allows SLSL to persuade customers in taking their service.
Furthermore, in lines 40-42 the case study states that SLSL also spends heavily on marketing (which is an external method of promotion) and it’s calculated that SLSL spend £1600 each month on the double paged newspaper that covers all three branches, also table 1 shows that this method of promotion has enabled SLSL to gain 100% prompted awareness therefore this proved that their promotional strategy is effective, however it is very costly and therefore SLSL could consider simply expanding their website instead as there is an increasing use of technology and a website is very cheap yet effective. Table 1 displays they already have high unprompted awareness of 66% and so this shows that SLSL’s professional and confident image itself makes 122 sales at Stamton; 109 at Oakford and 54 at Upham.
Additionally, SLSL focus on using higher end pricing as they are targeting a higher end market however Stamton is more focused on the lower end of the market, therefore SLSL have a market where the average price of a house is between £190,000- and £315,000 which is an effective pricing strategy because it appeals to a wider market, moreover the pricing that SLSL uses is ethical as stated in lines 63-67 that Alistair will not increase the price simply to gain instruction.
Also SLSL target a niche market from where there is easy access to London through electrified trains which increases the possibility of sales for SLSL and makes it easier for them to meet their revenue objective as potential buyers would have easy access to jobs etc.
Furthermore SLSL could consider diversifying into lettings management because they have had many enquiries (lines 54-55), however this is a very costly and risky strategy because they lack expertise in lettings management so instead SLSL could use market development and expand into Market Harworth because there is a projected increase in number of households 15% in the next 10 years and it fits in with their present marketing strategy, on the other hand at the moment very little market research has been done on this branch and further information is vital in order to achieve an effective marketing strategy.
SLSL have an effective marketing strategy as they have 100% prompted awareness in the local area and all employees are well informed about any changes in the economy, therefore Alistair as an autocratic shareholder manages the business very well except the only aspect of the business that is not in his control is the conveyancing process. But to improve SLSL’s marketing strategy in the long term SLSL could consider increasing website promotion as it allows them to target a larger market and reduces costs because more and more people now prefer to visit websites as it’s quick and easy, and so if a larger target market is interested this would make it easier for SLSL to achieve their revenue objective of increasing sales by 4% and this would help Andrew, Alistair and Penelope because the more profit SLSL make the higher dividend payments the shareholders will receive, also employees would remain motivated because if they achieve the objective they will receive a higher bonus.
In conclusion, whether sign boards, newspaper advertisements or websites are used the fact is that these promotional tools are designed merely to stimulate interest - they do not sell the property. The primary promotional tool is personal selling done on behalf of the vendor by the estate agency staff. This will be backed by printed details of the house, but the estate agent uses personal selling to push the buyer through the remaining stages of the process. It is for this reason that the quality and skills of the staff and the professional image of the company are so important. However no matter how much SLSL adjust their marketing strategy the housing market is dependent on macroeconomics such as high cyclical unemployment because this reduces confidence in the market and effects SLSL’s sales.
If any one has any opinions on any changes that i could make it'd be fab!