1.1: Marketing Concept
1. Commercial Bank Richard Ellis (CBRE) is a commercial real estate services company. CBRE positions itself as the global real estate service provider and investment advisor for commercial properties investment. Knowing the nature of real estate business is localization; CBRE also markets itself as local and regional brokerage for smaller scale transaction. CBRE’s philosophy behind its marketing concept is to facilitate market efficiency. Due to the immobile nature of real properties and lack of central real estate exchange system, information on real estate investment is costly and not easily accessible. Through its competitive advantage created by the scale of economy, CBRE is able to satisfy consumers’ needs by providing expertise, information and solutions in the commercial real estate sector on the global stage. As a result, CBRE’s products, providing space to be used in articulate terms, deliver differential benefits as they satisfy the demand and supply of real estate and funds.
CBRE adopts the social marketing concept that focuses on social welfare by promoting energy efficient products and green housing. The philosophy behind the New-Era orientation is one that requires most attention – environmental issues. Also, the company also adopts a “triple bottom line” perspective; besides environmental value, energy efficient buildings also create economic value and social value for consumers and publics with energy efficiency products. With rising energy cost in the recent years, the impact of the company’s effort was clearly observable as CBRE won many awards from environmental non-profit organizations. Also, the company benefits as their social marketing concept won public and government support which are both essential in land development, where group consensus and ratification are required.
2. As a real estate services company, CBRE creates and provides customers value which represents present value of an opportunity with future value. The company also creates value by providing solutions – through their well spread network. CBRE made the marketing mix decisions through all four avenues, as provided below, collaboratively.
Product is their services, which connects supply and demand of real estate investment and use of space, by providing information such as market trend and statistic forecast for better decision-making process and implementing solution such as lease arrangement and acquisition. Price is well defined for all fundamental services; however, due to the complexity of real estate transaction, some services are priced according to total investment value, time required, or client’s available resources as per previously agreed prior their negotiation. Thus, with distinctive competency, the company is able to maintain a profitable price level for their services.
In terms of location, CBRE sets up head and sub offices all over the world, yet the company’s major distribution channel is people. CBRE employs hundreds of employees working on site, scattering in participated properties globally. The interaction of labour facilitates distribution of services and enhances solution quality through systematic processing.
As the company’s audiences are all businesses that required spaces to operate, CBRE’s communication decision is to create awareness of their available products – space. Since all consumers must have intention to run a business, the company adopts a pull strategy where customers are encouraged to seek products from their listings. Their message to their audience is simple “as one of the market leader, we have listings and resources that are more likely to satisfy your request then to else where”.
3. As a market leader and a public traded company in the real estate field, CBRE is continuously being monitored by public, investors, companies and councils. CBRE was being condemned of their lack of...
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