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Introduction

Objectives of chapter: * to discuss the concept of market research * to discuss why market research is needed * to explain the concepts of market intelligence

and market research * to discuss issues of research versus non-

research * to discuss whether research is really needed

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Introduction…cont

Expected results:

▪ understand what is market research; ▪ reason out why market research is

conducted; ▪ differentiate between market intelligence

and market research; ▪ argue the relevance of market research in property business.

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Key words

Please identify key words for this topic. There are many.

E.g. Research, scientific process, market intelligence, …

They help you understand important concepts and aspects

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Content

Market research defined Why conduct market research? Intelligence vs. research Research vs. non-research General research mechanism Areas of market research Is market research needed?

Market research defined A scientific process of enquiry into discovering the cause-

and-effect explanation of various phenomena occurring in the property market to aid certain business decision-making.

A scientific process of enquiry into discovering a particular problem about the property market whose nature is already known with a purpose of finding the cause-and-effect and solutions for that problem to aid certain business decision-making.

A scientific process of collecting, organising, maintaining, analysing and presenting data for the purpose of maximising the capabilities, technologies, and competitive forces of the marketplace to meet an organisation's needs for products or services.

Meaning of “scientific”: * Objective (e.g. issue & nature of problem) * Systematic (e.g. research steps) * Replicable (e.g. methods used) * Testable (e.g. results)

Market research defined…cont

Market research…cont

E.g. of market problem

* What product to develop?

* What would be the level of demand for a

proposed project?

* What is the level of competitive price?

* Who are the prospective buyers?

* Which is the best location?

* What are most important buyers’

expectations of a project?

Market research…cont

E.g. of cause-and-effect explanation:

* Product is demanded…if, because,

with the condition that, provided

that…affordable, attractive, on strategic

location,…

* Affordability depends on…income, level of

non real estate spending, debts,…

* Building costs increase…due to..

Why conduct market research

Supports property business sub-functions Reduces information imperfections Increases competitiveness Understand consumers more Increase marketability of product Helps project-approving authority in property

development

Intelligence vs research Market intelligence

* Day to day data gathering

* Not specific to problems

* General in use Market research

* Planned/ad-hoc

* Specific to problem

* Specific in use

Research vs non-research

General questions to ask:

1. Is there any puzzling issue?

2. If “No” no need market research

3. If “Yes”, can answers be found by routine data gathering?

4. If “Yes” market intelligence

5. If “No”, is a specific solution required?

6. If “Yes” market research

7. If “No” other “avenues” of solution!

General Research Mechanism

Areas of market research

Key market phenomena such: demand, supply, absorption rate, price, rental, market competition.

Marketing – 4P (Hamid, 2002) Sales Consumers Government policies Macroeconomic situations

Is market research really needed?

How much you want to be intelligent? How much do you face puzzling problems? How much do you want to utilise specific

information to solve a problem? How much do you use the information for

decision-making process? Do you need it at all? Is market research a critical success factor for

the company?

Quiz

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1. The followings are some of the reasons

why market research is needed:

I. To explain certain issues related to

property market

II. As a source of market information

III. An aid to decision making

IV. As a business strategy

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2. Which of the following statement(s) is (are)

untrue about property market research?

A. A scientific process

B. Answers all aspects about property market

C. Helps to find answers to a certain issue of

property market whose nature of problem has

been properly identified

D. Helps company for a competitive positioning

in the market

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3. The term “4Ps” in property marketing refers to

A. Product, price, perception & population

B. Product, positioning, pricing & promotion C. Product, promotion, pricing, population D. Pricing, promotion, perception & population

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4. Which of the following statement(s) is(are) NOT true with respect to market intelligence versus market research?

A. General versus specific purpose

B. Day-to-day versus ad-hoc data collection

C. Not addressing specific problem versus

addressing specific problem

D. Neither one is costly to conduct

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5. Which of the following statement(s) is(are) NOT true with respect to market intelligence versus market research?

A. General versus specific purpose

B. Day-to-day versus ad-hoc data collection

C. Not addressing specific problem versus

addressing specific problem

D. Neither one is costly to conduct

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6. Match the key words in left column with the corresponding appropriate words in right column

Area of property market research

E.g. of factors/data investigated/collected

Consumer Location, design, size, materials, facilities

Product Income, occupation, age, family size, race, living place

Pricing Levels of demand & supply, prices, rentals, inflation, gross domestic product, regional market

General market situation Development costs, profit margin, demand elasticity, buyers’ affordability

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7. Read the following statement:

It uses secondary time series data and emphasises on the estimates of future changes in values by investigating past market trends. It identifies trends and patterns and deduces expected market behaviour. With the use of statistics recent macro data, it tries to draw conclusions about a general class of phenomena and attempts a projection of historical trends of the phenomena.

This statement refers to

A. Fundamental analysisB. Historical analysisC.Inferential analysis D. Statistical analysis

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8. A process that involves a delegation of tasks of market research from a project proponent to a property consultancy company at a fee is generally called as ________________

9.STEP is an acronym for _____________________

___________________________________________

10. Research process starts with problem identification and ends with a analysis conclusion

True / False

Thank you!