A developer is proposing a new housing scheme located in close proximity to several other on-going housing developments. As a registered estate agent, you have been approached by the developer to give advice on the appropriate marketing plan of the proposed housing scheme.
In the course of your advice on the marketing plan, illustrate the steps and process involved. Use suitable examples where necessary.
(20 marks, 2014 Q6 Real Estate Agency Practice D11)
A.
The Marketing Process
The Marketing Plan
A marketing plan is a blue print of all the work done in business analysis, strategic planning and study of marketing mix of the entire marketing process. Refer to earlier posts on this.
As this question specifies the assumption that it is a housing scheme, and a marketing plan is to be drawn for promoting this new housing scheme in the close proximity to several other on-going housing developments, the highlights would be among others:
1. The Analysis of the current situation of the housing market in the region (e.g. country's economic condition and the housing supply and demand).
2. A brief description of the developer's aspiration for this project, for example the theme of the development is 'Elegant Living'. The description should emphasize on Lifestyle and Current Market Trend.
3. How this current development is to offer the buyers specific products for 'Elegant Living'. This part requires a brief explanation of the niche that the developer is specialized in. This has relation to the track record of the developer, for example Awards received by the developer over the years.
4. The Strategies that the developer is to engage in launching this housing project. How is it able differ from the similar new housing schemes surrounding the area. This part would include SWOT analysis where Strengths, Weaknesses, Opportunities and Threats are analyzed for a summary. Hence, the Strategies would be specific for the best marketing position of this housing project.
5. Example of a Strategy employed would be High Speed Fiber Optic (HSFO) Cables for Internet Connection. The assumption here is that HSFO is expensive and not many developers are yet providing this service in the surrounding area. Therefore, for an almost similar size, build and design, the housing project would embark on the selling point of HSFO cables to offer 'Elegant Living'.
6. The Opportunities would be gaining acceptance from young couples who are tech-savvy, and executive level who have the income and lifestyle of buying this type of property. The pricing strategy would be above average and the selling point would be other design benefits of 'sound proofing' or no 'wifi blind spots'.
7. The Threats would likely be higher costs, and new players who are into the same HSFO cable furnished housing. Nevertheless, as ongoing survey had indicated that most youngsters are attracted to this type of features (from the earlier step - Analysis), such assumption is made. And, the decision is that such niche should be deployed for a distinctive 'product feature' in this current housing project.
8. Price analysis between different developers in the surrounding region should be further explained in the Marketing Plan. This is for better segmentation of the marketing planing process. The segment of buyers that current housing project is targeted should be identified clearly. Hence, comparison like locality, access routes, parking space, numbers of household in the area (density) and water pressure, etc. should be studied in depth, and clearly displayed in the Marketing Plan.
9. An important statement or slogan need to be designed for the housing scheme as a Marketing Theme for the entire Marketing Plan. This is not necessarily the same as the locality name of the housing project, but it may resemble the distinct characteristic of the area, either from its geography or from earlier historical background. For example, the area is called Sungai Hitam, the Marketing Name may sound like "Black Gold Sanctuary for Elegant Living".
10. With such strategies and position in place, the action plans are listed out. These are activities which are to be carried out in stages to promote the housing project. It can be describe in paragraphs briefly and appendix be added to list out the details of the activities. These activities will include for example, road shows at various townships nearby the area, or advertisement in the local newspaper, websites and if the marketing rights is also given to some local registered agency firms. It also clearly list out when and who are to be responsible to carry out these activities.
11. Having done all the strategic positioning of the housing scheme, the activities and action plans, the Marketing Plan should consist of the costing and budgeting for the entire promotion of the scheme. All such costs are listed in tables and appendix to give a total estimated cost of the promotional activities, any contingencies and timeline to complete the plan.
12. Finally, the Marketing Plan should consist of the control mechanism in order to cut costs and if necessary, cut losses. For example, by certain timeline, there has to be percentage of uptake of buyers, or responses from buyers. On the bigger picture, the progress of the housing project should have a timeline, and such timeline could be tagged to the marketing timeline. For example, by the completion of first row of houses, a show house is to be open for viewing. Another way is to put a milestone that by certain stage, the marketing of the housing project should be pass on to the professional agency firm to do all the activities.
Ref:
Own account with reference to earlier posts.
As this question specifies the assumption that it is a housing scheme, and a marketing plan is to be drawn for promoting this new housing scheme in the close proximity to several other on-going housing developments, the highlights would be among others:
1. The Analysis of the current situation of the housing market in the region (e.g. country's economic condition and the housing supply and demand).
2. A brief description of the developer's aspiration for this project, for example the theme of the development is 'Elegant Living'. The description should emphasize on Lifestyle and Current Market Trend.
3. How this current development is to offer the buyers specific products for 'Elegant Living'. This part requires a brief explanation of the niche that the developer is specialized in. This has relation to the track record of the developer, for example Awards received by the developer over the years.
4. The Strategies that the developer is to engage in launching this housing project. How is it able differ from the similar new housing schemes surrounding the area. This part would include SWOT analysis where Strengths, Weaknesses, Opportunities and Threats are analyzed for a summary. Hence, the Strategies would be specific for the best marketing position of this housing project.
5. Example of a Strategy employed would be High Speed Fiber Optic (HSFO) Cables for Internet Connection. The assumption here is that HSFO is expensive and not many developers are yet providing this service in the surrounding area. Therefore, for an almost similar size, build and design, the housing project would embark on the selling point of HSFO cables to offer 'Elegant Living'.
6. The Opportunities would be gaining acceptance from young couples who are tech-savvy, and executive level who have the income and lifestyle of buying this type of property. The pricing strategy would be above average and the selling point would be other design benefits of 'sound proofing' or no 'wifi blind spots'.
7. The Threats would likely be higher costs, and new players who are into the same HSFO cable furnished housing. Nevertheless, as ongoing survey had indicated that most youngsters are attracted to this type of features (from the earlier step - Analysis), such assumption is made. And, the decision is that such niche should be deployed for a distinctive 'product feature' in this current housing project.
8. Price analysis between different developers in the surrounding region should be further explained in the Marketing Plan. This is for better segmentation of the marketing planing process. The segment of buyers that current housing project is targeted should be identified clearly. Hence, comparison like locality, access routes, parking space, numbers of household in the area (density) and water pressure, etc. should be studied in depth, and clearly displayed in the Marketing Plan.
9. An important statement or slogan need to be designed for the housing scheme as a Marketing Theme for the entire Marketing Plan. This is not necessarily the same as the locality name of the housing project, but it may resemble the distinct characteristic of the area, either from its geography or from earlier historical background. For example, the area is called Sungai Hitam, the Marketing Name may sound like "Black Gold Sanctuary for Elegant Living".
10. With such strategies and position in place, the action plans are listed out. These are activities which are to be carried out in stages to promote the housing project. It can be describe in paragraphs briefly and appendix be added to list out the details of the activities. These activities will include for example, road shows at various townships nearby the area, or advertisement in the local newspaper, websites and if the marketing rights is also given to some local registered agency firms. It also clearly list out when and who are to be responsible to carry out these activities.
11. Having done all the strategic positioning of the housing scheme, the activities and action plans, the Marketing Plan should consist of the costing and budgeting for the entire promotion of the scheme. All such costs are listed in tables and appendix to give a total estimated cost of the promotional activities, any contingencies and timeline to complete the plan.
12. Finally, the Marketing Plan should consist of the control mechanism in order to cut costs and if necessary, cut losses. For example, by certain timeline, there has to be percentage of uptake of buyers, or responses from buyers. On the bigger picture, the progress of the housing project should have a timeline, and such timeline could be tagged to the marketing timeline. For example, by the completion of first row of houses, a show house is to be open for viewing. Another way is to put a milestone that by certain stage, the marketing of the housing project should be pass on to the professional agency firm to do all the activities.
Ref:
Own account with reference to earlier posts.
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