Q.
Various types of marketing researches may be needed to support decision on the aspect of the marketing mix. With the use of examples relating to residential property development, explain how the various types of researches might be conducted for the variables identified within the marketing mix.
(25 marks, 2011 Q7)
A.
For residential property, discussion on 4 Ps in property has been published in earlier posts.
Click 4 Ps in property here and for 4 Ps in product life cycle, here.
First, let us define the Marketing Mix in relation to the question - 4 Ps of property. They are:
- Pricing
- Product
- Placing - distribution
- Promotion
Pricing - secondary data from past purchases of properties in a selected area may be a good approach to study the price bracket of purchases. A good place to start studying would be the newspaper or websites on the listing of prices of property for sale in the vicinity of the project. This is called 'Desk Research' and this method is cheap and fast, with certain accuracy of market primary data. Another good way to study pricing is from the secondary data of average income of residence in the area. This can be obtained from statistical department with population studies, etc. If primary data is desired, survey in the form of questionnaire can be distributed during road shows, pre-launch activities or by mailing/telephone/web survey on potential buyers past or present. This is called 'Field Research' and specifically 'Survey Research' if it is performed on a target group. This form of gathering primary data can incorporate survey on product preference as described below. 'Observational Research' is another form of research which can be employed in studying the preference of customers towards a certain pricing range. It is by observing people, their reaction or reflection during conversation or their response to a certain information. For example, when given the price list, or when they are looking at the price list on the wall. Certainly, when reaction towards a highly unexpected pricing, a person could exclaim! Likely, when the pricing is reasonably acceptable, the reaction would be a smile or affirmation of readiness to buy.
Product - secondary market from websites and newspapers or other realty companies could very well be a source of information for what types of residential product is in demand in an area (Desk Research). Generally, studying the household size and ancillary activities around the areas would indicate some clue on what type of housing could be in demand. An industrial park nearby would likely demand small household for migrant workers, and a financial center would probably indicate a matured high executive society who could demand bungalow or semi-D. Primary data survey like that carried out above can incorporate product preference on target groups or previous contacts during road shows/property exhibitions. Observational Research can be particularly useful when there is a show house, and thus customer liking can be observed with their interest in the various features of the house.
Placing - distribution channel for property is largely limited to the developer themselves, unless it is secondary market of used properties. Hence, marketing research for channel of distribution would probably be limited to survey on the preference of customers buying from a developer during property exhibition, on site show house, or through an agent. This form of questionnaire survey would likely be carried out during property exhibition or at the time of signing of sale and purchase agreement. The aim of research on this marketing mix - placing, is unlikely able to yield the determining buying factor. This is because there are more powerful determining factors of other Ps like Pricing and Product. A buyer who does not like the product or cannot afford the price, would not likely buy the property because of the exhibition or the agent.
Promotion - property exhibition better or advertisement in the newspaper better? This is an example of question which may be asked. Do you need to do a research to know which is better? How to gather the information on which is a better way to promote your property product? How to reach to the target audience? Marketing research employed in such situation would be like how many units sold by property fair versus just advertisement. Is there a secondary data published yearly by agencies who conduct property fair? It would be hard to isolate those who bought via newspaper advertisement alone. In such manner, it would be hard to differentiate property sold by just agent soliciting client without client having attended a property fair. Secondary data on this might not be accurate anyway. Thus, conducting primary research on this by surveying on potential customers would be more realistic.
Various types of research methods - study of secondary data, conducting primary research by survey could be deployed for marketing research of property demand of buyers. In brief, they are questionnaire type and analysis of published data from peers and third party agencies.
Ref:
Own account from reading from Abdul Hamid, Mar Iman. 2002. An Introduction to Property Marketing. Chapter 14. Page 327-343.