Marketing Strategies and Expenses of Real Estate Development Companies Registered in The Stock Exchange of Thailand During The Year 2014 – 2018

Abstract

            Marketing strategy is very important for real estate development companies. Different strategies would affect marketing expenses, which lead to companies' better performance. This research focused on exploring marketing strategies and expenses of real estate development companies registered in the Stock Exchange of Thailand during 2014-2018, an important period of politics and economy in Thailand. Research data was collected from annual reports and financial statements of 20 companies, classifiable into 3 big, 5 medium, and 12 small companies. Company strategy data was analyzed by using a method of event analysis, finding keywords, and meaning, and comparing between each period. Marketing expenses were analyzed by comparing financial ratios. Finally, find a relationship between strategy and expense by a context analysis method.

            The study found that 1) Companies seek marketing strategies suitable for each period in the economic recession cycle, and marketing expenses were affected by marketing strategies. Big, medium, and small companies (Group A) focused on low-rise projects, which were expansion on medium and high-income market segment. Small companies were focused on high-rise projects (Group B), which focused on high-rise projects and medium and low-income market segment. 2) Every company has important strategy changes, which were expansion of customer base including every market segment. Furthermore, the development of housing innovation and technology including online media was proposed in the marketing strategy. Marketing expenses have also increasingly changed. 3) The ratio between expense to income of every company tended to continuously grow. Big companies contain the lowest ratio between expense to income followed by small companies (Group B), medium, and small companies (Group A) respectively. It was also found that increasing the trend of low-rise projects will affect increasing marketing expenses.

          The results of this study indicated that the difference of marketing strategies in each year due to the situation influenced marketing expenses which would benefit the real estate entrepreneurs for consideration of the suitable strategies and marketing expenses planning to the economic situation.