Describe the marketing process of a housing development from its listing to delivery. Describe your marketing plan in detail.
(20 marks, 2011 Q7 Real Estate Agency Practice D11)
A.
Similar question was asked in
2012 Q3 here; and
2014 Q6 here.
Marketing Processes are briefly divided into 4 steps. Refer to earlier post on The Marketing Process and 4 or 5 steps of Marketing Process here.
In a nutshell, marketing process is a step wise thinking of marketing planning, and a document called marketing plan where key information are recorded into standard format, is produced. The marketing plan format is posted in earlier post The Marketing Plan here.
"Listing" in the terminology of Real Estate is:
"A listing contract is a contract between a real estate broker (or their agent representatives, acting in the broker's name) and a seller or sellers of real property to give the broker the right to offer the property for sale."
Ref:
Wikipedia search "Listing in real estate', available at
http://en.wikipedia.org/wiki/Listing_contract
Thus, from the question "from listing to delivery" it means the developer appoints the real estate firm to do the marketing for them instead of selling it themselves.
In such case, a good marketing plan is important to convince the developer in order to get the listings. The Marketing Plan would list out the key areas as below:
1. Executive Summary - describing the summary of the whole marketing plan and clearly emphasizing what marketing strategy and segment of the market that the project will be targeted to. Among others, the theme of the whole marketing effort, the slogan for the project, the timeline and the expected outcome when the plan is launched. Cost factor would be left to the budgeting section.
2. Analysis of the housing market in the area, region or country in the recent time. This portion would craft out the unmet needs of the market where the project in hand would provide niche area of customer satisfaction.
3. Competitor and SWOT (Strength, Weakness, Opportunity and Threat) analysis where how the current project would differ from the competitors, and pricing strategies employed. An in depth analysis of the geographical area and the town planning of the project (if it is a big scale new township) would be studied in order to come out with the traffic flow, density of population, congestion issues, shopping and entertainment hubs, accessibility of transport to other townships. All these factors would substantiate the strategies deployed to market the current project for an optimal outcome.
4. Next, the strategic position of the project (for example - Fun Living) would be targeted to a certain market segment. For instance, the Generation Y (Gen Y) segment where young families are on the lookout for housing. However, this Gen Y segment is a big segment, hence a sub-segment of the market is identified, for example - executive tech-savvy couples, with good household income of RM8,000 and above. This section also spring from the earlier analysis of background and demography in the region (under No.2 'analysis').
5. The Marketing Plan should subsequently discuss the various promotional mix that can be tailored made to these young Gen Y couples. For example, pricing range of monthly installment of RM2,000 to RM3,000 (Pricing -P), small family 2 - 3 rooms apartment with WiFi (Product - P), promote through email and social media (Promotion -P) and engaging a young agency firm (Placing -P).
6. Thereafter, the Marketing Plan should list out the action plans and their Implementation steps. These are activities to be carried out for the promotion of the project. A calendar of activities and place of promotion - booths, roadshows or celebrity endorsement, etc. would be listed in detail.
7. The subsequent part of the Marketing Plan is about Control and budgeting. This part of the Marketing Plan is usually tied to the timeline, where action plans are carried out. The cost of running the activities and contingencies should be estimated to the best details, including the number of staff required, the cost of renting the venue, advertisement and regulatory approvals, if any, etc.
8. In the control section of the marketing plan there is also the 'check points'. These are intervals when review and assessment of the marketing plan is carried out. For example, questionnaires are distributed after the launch of the project in a press conference, with industry players invited to a cocktail party. These questionnaires are studied for responses and report back to the developer.
9. As buyers sign up for the project, another set of questionnaires are distributed. These could provide primary data on how adjustments and further development plans can be designed for current buyer or potential new segment of market.
10. Upon signing of Sale and Purchase Agreement, the agency firm requires to monitor the progress of loan application, the legal requirements with the legal firms, and other miscellaneous. Until the whole process of SPA is completed, the agency firm requires constant engagement with the developer and the buyer to follow up on matters which may require special attentions.
In summary, the Marketing Plan will put a road map to the developer clearly visualizing how the whole promotional activities would be carried out from the listing of the project to the completion of the sale. Usually, as the SPA is completed, the new housing project is not yet for delivery. Future delivery and communication of the progress of the project is the primary responsibility of the developer as spelled out in the SPA.
Ref:
Own account with reference to earlier posts.
Thus, from the question "from listing to delivery" it means the developer appoints the real estate firm to do the marketing for them instead of selling it themselves.
In such case, a good marketing plan is important to convince the developer in order to get the listings. The Marketing Plan would list out the key areas as below:
1. Executive Summary - describing the summary of the whole marketing plan and clearly emphasizing what marketing strategy and segment of the market that the project will be targeted to. Among others, the theme of the whole marketing effort, the slogan for the project, the timeline and the expected outcome when the plan is launched. Cost factor would be left to the budgeting section.
2. Analysis of the housing market in the area, region or country in the recent time. This portion would craft out the unmet needs of the market where the project in hand would provide niche area of customer satisfaction.
3. Competitor and SWOT (Strength, Weakness, Opportunity and Threat) analysis where how the current project would differ from the competitors, and pricing strategies employed. An in depth analysis of the geographical area and the town planning of the project (if it is a big scale new township) would be studied in order to come out with the traffic flow, density of population, congestion issues, shopping and entertainment hubs, accessibility of transport to other townships. All these factors would substantiate the strategies deployed to market the current project for an optimal outcome.
4. Next, the strategic position of the project (for example - Fun Living) would be targeted to a certain market segment. For instance, the Generation Y (Gen Y) segment where young families are on the lookout for housing. However, this Gen Y segment is a big segment, hence a sub-segment of the market is identified, for example - executive tech-savvy couples, with good household income of RM8,000 and above. This section also spring from the earlier analysis of background and demography in the region (under No.2 'analysis').
5. The Marketing Plan should subsequently discuss the various promotional mix that can be tailored made to these young Gen Y couples. For example, pricing range of monthly installment of RM2,000 to RM3,000 (Pricing -P), small family 2 - 3 rooms apartment with WiFi (Product - P), promote through email and social media (Promotion -P) and engaging a young agency firm (Placing -P).
6. Thereafter, the Marketing Plan should list out the action plans and their Implementation steps. These are activities to be carried out for the promotion of the project. A calendar of activities and place of promotion - booths, roadshows or celebrity endorsement, etc. would be listed in detail.
7. The subsequent part of the Marketing Plan is about Control and budgeting. This part of the Marketing Plan is usually tied to the timeline, where action plans are carried out. The cost of running the activities and contingencies should be estimated to the best details, including the number of staff required, the cost of renting the venue, advertisement and regulatory approvals, if any, etc.
8. In the control section of the marketing plan there is also the 'check points'. These are intervals when review and assessment of the marketing plan is carried out. For example, questionnaires are distributed after the launch of the project in a press conference, with industry players invited to a cocktail party. These questionnaires are studied for responses and report back to the developer.
9. As buyers sign up for the project, another set of questionnaires are distributed. These could provide primary data on how adjustments and further development plans can be designed for current buyer or potential new segment of market.
10. Upon signing of Sale and Purchase Agreement, the agency firm requires to monitor the progress of loan application, the legal requirements with the legal firms, and other miscellaneous. Until the whole process of SPA is completed, the agency firm requires constant engagement with the developer and the buyer to follow up on matters which may require special attentions.
In summary, the Marketing Plan will put a road map to the developer clearly visualizing how the whole promotional activities would be carried out from the listing of the project to the completion of the sale. Usually, as the SPA is completed, the new housing project is not yet for delivery. Future delivery and communication of the progress of the project is the primary responsibility of the developer as spelled out in the SPA.
Ref:
Own account with reference to earlier posts.
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