Research On The Marketing Strategyto Lease Of Office Building In Beijing

The real estate industry, the important pillar industry of national economy, can be categorized into three parts:residential, commercial, and office buildings.Office is an important carrier of economic activities, especially in the service industry today. A growing office market one of the direct consequences of the development of economy and societies in the city.In the past a few years, the office market in Beijing has consistently shown that supply is greater than need and leasing business has turned into the mainstream. The increasingly fierce market competition and the other complex factors increase the uncertainty and risks in the office rental business. Therefore, the general interest in modeling such a typical market leads to the study of the Marketing Strategy for leasing office space in Beijing.At present, the sales in the real estate industry have attracted the most interest, both domestic and international, in marketing strategy. On the other hand, the studies of the marketing strategy in the office rental market have been the "short slab".This paper is hopefully doing something useful to add to the theory on the basis of other research results.The object of this paper is the marketing strategy of the office leasing market in Beijing.First of all, the activities in office leasing and the specialty in marketing have been analyzed, and then, the analysis of the office marketing environment and the prediction of the trend of market development are proceeded by using the case in Beijing as an exampleAccording to the analysis, the general marketing strategy and tactics, for the office rental market in Beijing, have been proposed on the basis of the STP and the 4P marketing strategies.Finally, the choices of marketing strategies on the specific projects are discussed under the case of the current leasing of the Beijing Jianda Building.Office lease is a form of commodity exchange and an economic relation between rental and lease.Rental business can be divided into the three stages:preparation, strong sales period, and maturity (maintenance period).The features of office lease management include the transitoriness of lease and the strong time effect of rental prices; the highest profit from the best combination of rental prices and occupancy rates; the focus on long-term gains; the obvious lease advantage from single property rights other than of multi-property; the great impact of customer demand in short termThe main office rental market is characteristic in the dominant in consumers, the consumer decision-making characteristics, outreach, values and so on. Special attention need to be paid to preventing legal risks and clear marketing objectives.Beijing office market in just 25 years, largely through the initial outbreak, depression, recovery and rapid development of the five stages of development, has gradually matured.In 2009, in the context of the global economic crisis, Beijing office market was in the doldrums:rental prices down, volume down, and the vacancy rate continues to rise. In the second half of year, the gradual restoration of market demand, which was stimulated from the lead in the bottom of China's economy and a strong recovery, was progressed.Based on a detailed analysis of macro-environmental factors:the Beijing office market, the development of population, economic environment, technological environment, policy environment, legal environment, social, and cultural environment, the following predictions were made on the development trend of office market in Beijing:(1) Short-term trends:there is an overall cautious optimism on the office market in Beijing in 2010, as the real economic recovery; (2) long-term trends: contrast to the sole traditional commercial area, the multi-center structure will be formed; Customers will flow to the edge of traditional area and hot spot; As a consequence, the projects on the edge of good region will arise. Long-held business is the future of the mainstream office market; the popularity of eco-energy office environment will be the trend; (3) competition in the market:the impacts of future competition in the market of Beijing office include:the stock of properties for sale, new real estate, future expectations, inter-regional competition.U.S. marketing scientist Philip Kotler proposed STP theories, including market segmentation, targeting the market, and positioning.There are many methods and variables for market segmentation such as the customer needs, leasing behavior, and regional distribution of industry, which have been used in this paper for Beijing office market segments.In assessing the market segments based on target market selection, appropriate methods have been used to conduct accurate positioning.This paper presents a general strategy for the office rental market.(1) The rent pricing strategies:rental office rentals can be divided into goods, the cost of rent, basic rent, market rent of several categories. This study aimed at market rents.Office rental prices have to stress follow the market. Repeated adjustment methods commonly used in competitive pricing, psychological pricing method.Pricing strategies generally can be divided into low-cost, high price strategy, price strategy in the three types. If the overall price is determined in the project according to the project and the market's development, Low to High strategy, High to Low strategy, and stable price strategy are the tools to adjust the rents and change the trend of price in the rental activitiesOffice customers are generally much more sensible than residential customers, so the price discount strategy is to promote the best execution of customer aid.(2) Product Strategy:the quality enhancement of both the hardware and software environments is the key of product marketing of office.For new projects and the stock of real estate, various measures need to be taken to upgrade the hardware quality. Strategies such as product differentiation are also important. On the other hand, software environment depends on the brand, property management, tenant quality and so on.(3) Lease channel strategy:marketing channels for office leasing market in Beijing are mainly three ways:lease by developers, property company commissioned the lease, and the developer or property leasing company plus agency integrated approach. The third way is as the mainstream in the market.In cooperation with the agencies, both the developer and the property company commissioned the lease need to pay attention to several points:the choice of agent; leasing agent approach; commission incentives.(4) Marketing strategy:marketing of an office leasing is the acts, within the specified time, to identify customers with a specific intent to provide products or services. Its immediate purpose is to encourage customers to know, like, assure, and rent an office project.Office leasing methods commonly used include:promotional advertising, staff promotion, public relations and so on.Finally, this paper carries on the theory and the practice union. A comprehensive analysis is revealed and the current marketing strategy is proposed in a case study of the internal and external conditions, and the competitive environment of Beijing Jianda Building, using the SWOT method.