Home Place Marketing Management Processes for Real Estate Business

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Home PlaceMarketing Management
ProcessesforReal Estate Business
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Topics Outline

• What are the Traditional Marketing Processes for
  Real Estate Business?
• What is Quality Management?
• How can we adopt TPS ( Toyota Production System)
  to Real Estate Business?
• Marketing Process for Real Estate.
• Tools for analysis customers requirements

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Marketing in Plan Language

• What is your intended products ?
• How about the industry? weakness?
• What situation is suitable to the industry?
• Where is the Market? Battle field?
• How about Demand?
• How about Supply?
• How about Competition?
• Who are the key players?
• What is your advantage, strength weakness?
• Who are your competitors?
• How do you compete with them?

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Marketing in Plan Language, Continue

• Whatll be competed?
• Where is your position?
• Whatll be given to customer?
• What do your products look like, Specification?
• How much should customer pay ?
• What do you want your customer remind to your
  product?
• What do you want your customer hear about your
  product?
• What are your marketing strategies?
• How much for marketing activities?
• What hoe to control the activities?

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Tradition Marketing Department Plan

• Situation Analysis
• Market Objectives and Goals
• Marketing Strategy
• Action Program
• Measurement, Review, and Control
• Marketing Budget

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Traditional Marketing Processes

• Economic Analysis
• Industrial Competition Analysis
• Company/ Internal Analysis (Strength Weakness)
• Market Analysis
• Select Target Market
• Segmentation Positioning
• Select Marketing Strategies
• Product, Price, Promotion, Place
  strategies
• 8. Marketing Implementation Control
• 9. Sale Management After Service

Opportunity Treat
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Real Estate Processes

• Economic Analysis
• Industrial Competition Analysis
• Company Internal Analysis ( Strength
  Weakness)
• Market Analysis
• Select Target Market
• Select Land for Development
• Location Analysis
• Segmentation Positioning
• Customer Requirement Management
• Select Marketing Strategies ( Marketing Mix )
• Funding
• Project Management
• Market IMC Implementation Control
• Onsite Construction
• Sale Management After Service
• Project Close

Opportunity Treat
Land Bank
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Weakness for Traditional Processes

• Separate management responsibility ?
• Do not clear on processes
• Only Management responsibilities to product
  development, not team work.
• Only Architect create the product.
• No preparation to product positioning Branding.

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Marketing Iceberg
IMC
Operation Level Middle Management
Level Executive Level
Sale Management
Pricing Strategy Product Strategy
Marketing Processes Management
Positioning, Branding, Value
Target Market , Segmentation
Customer Requirement Mgn. Quality Control, Value
Engineering
Value Engineering, Innovation, Vision
Process System, MIS
Company Strategies
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What are the Housing Products?

• Land Location
• House ( Function, Form, Utilities ,etc)
• Environment
• Securities
• After Services

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Marketing in Toyotas Perspectives
Quality Management Marketing Management

Toyota Marketing
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What is Situation Analysis?

• A description of the current situation
• A SWOT analysis (Strength, Weakness, Opportunity,
  Treat)
• Main issues facing the business
• Main assumptions about the future

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Questions to Economic Analysis

• What are our economic condition now next year?
• 2. At what price level/market that developer
  should select on the existing economic condition?
• - Where is the market?
• 3. How to reduce risks from the selection?
• 4. What products combination should be on that
  price level / market?

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How to reduce risk

• Smaller project size.
• Difference product types in developed projects.
• Reduce land inventory at peak.
• Buy small piece of land inventory first
• Faster construction.
• Small finished house for sale.
• Build matching to demand with flexible to change.

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RE Market Segmentation

• Geographic (Location)
• Socioeconomic (Income, Education, Occupation)
• Product Types (TH, SH, Condo, Shop H, Twin H)
• Demographic (Gender, Age, Race, Life state,
  Marital status)
• Psychographic (personality, Values, Life style)

Location
Product
Majority of RE Market Segmentation
Trade Area
Price range
Price
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Checklist for Perform Strength/Weakness
Performance
Importance
Major Strength
Minor Strength
Minor Weakness
Major Weakness
Neutral
Hi
Med
Low

• Marketing
• Company reputation
• Market share
• Product Quality
• Service Quality
• Pricing effectiveness
• Distribution effectiveness
• Promotion effectiveness
• Personal Sale
• Innovation
• Geographic coverage
• Finance
• Cost/availability Capital
• Cash Flow
• Financial stability

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Checklist for Perform Strength/WeaknessContinue
Performance
Importance
Major Strength
Minor Strength
Minor Weakness
Major Weakness
Neutral
Hi
Med
Low

• Construction
• Facility
• Capacity
• Economics of scale
• Work force Skill
• Technology Technique
• Equipment Machinery
• Subcontractor
• Learning Curve
• Teamwork
• Organization
• Capable Leadership
• Structure
• Employee reward
• System

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How to Analyze the Competition

• Find total competitors in trade area by using
  preliminary survey.
• Select major competitors
• Analyze market mix of competitors by using QFD
  tool.
• Analyze competitors message Positioning
• Find major advantage of your products compare to
  competitors ( compare specification ).
• Select your product message and positioning.

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3. The Company/ Internal Analysis

• What is the company strategies?
• What kind of resources do we have?
• (Fund, Knowhow, Staff, Experience)
• 2. What are the critical factors in the company?
• 3. What are the strength and weakness?
• (SWAT analysis)
• 4. How do we allocate our resource?
• (System, Structure, Staff, Fund, Machine)

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How does Toyota be number onein Automotive
Industry?

• Quality Management
• Lean Manufacturing Organization

Lower Cost
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What is Quality Management?

• Focus on customers.
• Participation and teamwork by everyone in the
  organization.
• Process focus supported by continuous improvement
  and learning.
• Lean organization Manufacturing

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Why Quality Management?

• Japan ( after war ) - Dr. Ed.Deming, Dr.
  Joseph M. Juran
• 1955 Total Quality Control
• Japan in US Market (20 Years later)
• 1980 ISO 9000 (International Organization for
  Standardization)
• MBNQA (Malcolm Baldrige National Quality
  Award)
• 1980-85 start Sig Sigma in Motorola by Bill
  Smith
• 1988 EQA (European Quality Award)
• Reengineering
• 1990- 95 Lean Manufacturing Service (Toyota
  Production System)
• 1998 Six Sigma.. success at Motorola and GE
• 2004 Jurans Institute in China

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Quality Guru

• Shewhart ( Statistical Process Control Chart )
• W. Edwards Deming ( Fourteen Points )
• Joseph M. Juran ( Process for Managing Quality )
• Kaoru Isikawa ( 7s Tools of Quality , Isikawa
  11s Points)
• Armand Feigenhaum ( 19 Steps for Total Quality
  Control )
• Philip Crosby (14 steps of Quality Management,
  Zero Defect)
• Genichi Taguchi .. ATT Bell Lab (Robust Design)
• Bobert C. Camp ( Benchmarking )
• Michael Hammer James Champy ( Reengineering)
• James P. Womack ( Lean )
• Bob Galvin (CEO Motorola) Bill Smith ( Six
  Sigma )

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Quality Awards

• Deming Prize ( by JUSE..Japan Union of Scientists
  
• Engineers )
• ISO (International Standard Organization)
• ISO 9000 QM Fundamental and Verbulary
• ISO 9001 QM - Requirements
• ISO 9004 QM - Guidelines for Performance
  Improvement
• ISO 14000 Environmental Management Standard
• MBNQA (Malcolm Baldrige National Quality Award)
• EQA (European Quality Award)

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Demings Economic Chain Reaction
Improved Quality
Decreased Costs
Fewer Mistakes Delay
Better use of Resources
Improved Productivity
Capture Larger Market
Stay in Business
More Jobs
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Customer Requirement Mgn.

• QFD ( Quality Function Deployment)
• Kano Analysis
• Visitor Customer Survey
• Defect Analysis
• Marketing Research
• Competitors Specification Analysis

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What is QFD?
Quality Function Deployment

• OFD is a tool to change customer need into
  design /performance requirement.
• It is also used for compare competitor
  performance/function.
• It is use to structure requirement hierarchy.
• It is used for find detail processes (how to).

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What is Kano Analysis?

• It is a tool to find out priority of customer
  requirement.
• It show how much importance of each requirement.
• It show how customer behavior on that requirement.

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Visitors Survey

• It is a surveys document for visitor who visit
  point-of sale (project) at the first time.
• Its purposes is to get preliminary visitors
  personal information for the future use, and also
  to find out perception on our product comparing
  to the competitors.

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Customer Survey

• Visitor Survey
• Customer Survey during Deposit transfer
• Customer Survey after transfer

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Defect Analysis

• Customer defect during house acceptance.
• After service defects
• Quality control defects

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Technology / Experience used

• Right Market
• How to Design
• How to Manufacture
• How to Manage at Construction Site
• High speed Housing Construction

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Voice of Customer
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Agenda

• About Voice of Customer
• Method we used
• Result from survey
• Recommendation for Improvement

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1 About Voice of Customer

• What is Voice of Customer?
• Why is VoC important?
• What do we want from VoC?
• How to manage VoC?
• Tools for manage VoC?

About Method Result Recommendation
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What is VoC ?

• Method to identify customer requirement
• Input data for product design specification

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Why it is Important?
Business Process
Marketing Production Financing

• Investment
• Operation
• Financing

Product/service
Customer Requirement
VoC
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Why do we interest to VoC?

• Right requirement
• Reduce loss from doing incomplete product/Service
• Improvement product/service and process
• Higher Product Quality

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The first state of Quality Management is doing
the right thing according to customer
requirement, not highest quality that does not
matching to customer need
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About Method Result Recommendation
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Where is its position in Marketing Process?
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What do we want from VoC?

• Data for new Product/Service Specification
• Process improvement both in customer service and
  project management
• Defects data for Produce improvement

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How to Manage VoC?
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VoCs Tools - QFD
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VoCs Tools - Kano Model
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Attractive
Attractive
One - Dimensional
Attractive
One -Dimensional
Indifferent
Must-have
One Dimensional
Must-have
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About Voice of Customer

• Objective of the Homeplace VoC project
• ??????????????????????????????????????????????????
  ???????????? ???????????????????????????? ?
  ??????
• Product design quality
• Environment design quality
• Service
• Security
• Expected outcome from the project
• Brainstorming for new specification
  improvements

About Method Result Recommendation
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Method

• Direct customer survey
• Schedule 1 hr. 2 session with compensation
• (400 BHT per unit) by phone Mail
• Session I Open Interview
• Session II Multiple choice Questionnaires (75)
• Kano Analysis
• Measuring ?????????????? vs. ????????????????

About Method Result Recommendation
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Method

• Construct survey
• See Attachment 1

• Session I
• ?????????????????????
• ????????

• Session II
• ???????????????????
• ??????????????????????
• ????????????????
• ???????????????????

About Method Result Recommendation
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Method

• Selected samples
• Estimate period of stay for RB1 3-4 yrs.
• Estimate period of stay for RB2 3-4 mths.
• Estimate period of stay for RS 3-4 yrs.

About Method Result Recommendation
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Result

• Conclusion from the interview
• Interim Solution Proposal
• Instant improvement
• Long-term improvement/Setting new specification
• See Attachment 2

About Method Result Recommendation
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Result

• Conclusion from questionnaires
• Sample Results
• Graph for individual question
• Statistics result for each coordinate x-y
• (Mean, Max, Min, Stardard Deviation)
• Graph for all questions
• Graph for all questions for each project
• Action

About Method Result Recommendation
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Result

• Sample Results (cont.)
• Graph for individual question

About Method Result Recommendation
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Result

• Sample Results (cont.)
• Statistics result for each coordinate x-y
• (Mean, Max, Min, Stardard Deviation)

X-Value
Y-Value
About Method Result Recommendation
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Result

• Sample Results (cont.)
• Graph for all questions

Attractive
Attractive
One- Dimensional
Attractive
One-Dimensional
Must-have
Indifferent
One-Dimensional
Must-have
About Method Result Recommendation
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Result

• Sample Results (cont.)
• Graph for all questions

About Method Result Recommendation
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Result

• Conclusion from questionnaires
• Statistics result for each coordinate
• Graph for all questions for each project
• See Attachment 3 4

About Method Result Recommendation
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Result

• Action
• Instant improvement
• Immediately react to the instant improvement and
  mail information to the customer
• Long-term improvement
• Conducting internal meeting
• Inform the result from the VoC
• Brainstorm solution for long-term improvement

About Method Result Recommendation
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Marketing Research

• Used in some area that we can not define the
  market, segmentation, or target market.
• Used for analyzing market size and its
  characteristics.
• Used for analyzing customer behavior of the
  target market.

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Competitors Specification Analysis

• Land
• House Function, Form, Utilities, Garden,
  Fence.
• Environment
• Infrastructure
• Security
• After Service

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Marketing Strategy

• General Marketing Strategy
• 1.1 Positioning (target, core, price,
  value)
• 1.2 Product differentiation
• 1.3 Price/Quality (value)
  Differentiation
• 1.4 Marketing Mission Message
• Specific Marketing Strategies
• 2.1 Product
• 2.2 Price
• 2.3 Place
• 2.4 Integrated Marketing Communication

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Four-P Framework
Marketing Mix
Target Market
Place Channels Coverage Assortments Locations Inve
ntory Transport
Product Product variety Quality Design Features Br
and name Packing Size (Area) Service Warranties Re
turn
Promotion - IMC Advertising Sale
Promotion Personal selling Event
marketing Publicity/PR Point-of-Sale
Communications CRM After Service
Price List price (Fixed) Discounts Allowances Paym
ent method Credit terms
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4 Ps 4 Cs

• Four Ps
• Product
• Price
• Place
• Promotion

• Four Cs
• Customer value
• Cost to Customer
• Convenience
• Communication

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Project Positioning (Slogan)Slightly difference
is dangerous

• Complete with highest quality.
• Resort Service.
• Security Excellence.
• Highest value to our customer.

We promise to delivery only highest quality
house, service, security, and value to our
customer.
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Main Steps in Developing a Strong Brand
Develop the value proposition 1 Choose a brand
positioning for the product. 2 Choose a
specific positioning for the product. 3 Choose
a value positioning for the product. 4 Develop
the total value proposition for the
product. Build the Brand 1 Choose the brand
name. 2 Develop rich association and promises
for the brand name. 3 Manage all the
customers brand contacts so that they
meet or exceed the customers expectations
associated with the brand.
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Sources of Positioning

• Attribute Positioning
• Benefit Positioning
• Use/Application Positioning
• User Positioning
• Competitor Positioning
• Category positioning
• Quality/Price Positioning

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Choosing a Specific Positioning

• Best Quality
• Best Performance
• Best Function
• Most reliable
• Best Safety
• Fastest
• Best value to money
• Least expense
• Most prestigious
• Best design or style
• Easiest to use
• Most convenient
• Best Function

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Positioning traps

• Under positioning
• Over positioning
• Confused positioning
• Irrelevant positioning
• Doubtful positioning

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Choose Value Positioning

• More for More
• More for the Same
• The Same for Less
• Less for Much Less
• More for Less

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3 ways for more value than competitor

• Charge at lower price than competitors
• Help the customer reduce his others costs
• Add benefits that make offer more attractive.

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Winning through Offering more benefit to Customer

• Customization
• More convenience
• Faster service
• More / better service
• Coaching, training, or consulting
• Extraordinary guarantee
• Useful hardware software tools
• Membership benefit program

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Product Strategies

• Complete with modern design
• Highest quality of product and service
• Security excellence
• High efficient After Service
• Best value

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Price Strategies

• Price list equal to leader but have price
  discount at the same product level.
• Actual price are lower than leader
• Various Package price
• Fixed/ List Price

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Base of Differentiation

• Physical Difference
• Availability Difference
• Service Difference
• Price Difference
• Image Difference

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Role of IMC in Marketing Mix
Overall Marketing Objective, Goal, and Strategies
IMC 1 Advertising 2 Sale Promotion 3 Personal
Selling 4 Event Marketing 5 Publicity/ PR 6 Point
of Purchase 7 CRM 8 After Service IMC Plan

• Marketing Mix
• Product
• Price
• Promotion - IMC
• Place

Target Market
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IMC /Promotional objectives

• To create an image
• To increase awareness
• To inform about new feature
• To change attitudes
• To correct misconceptions
• To reassure
• To remind
• To generate interest
• To generate response
• To encourage trail
• To prompt purchase
• To support other promotion activity

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IMCs Structure
Guiding Structure
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When to use IMC Toolbox effectively
Action
Interest
Attention
Desire
Toolbox
Advertising Sale Promotion Personal
Selling Event Marketing Publicity / PR Point
of Purchase CRM
Very effective
Somewhat effective
Not effective
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