Transcript Introduction  Objectives of chapter: * to discuss the concept of market research * to discuss why market research is needed * to explain the.

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?
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Market research defined

A scientific process of enquiry into discovering the causeand-effect explanation of various phenomena occurring in
the property market to aid certain business decisionmaking.

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-andeffect 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.
Market research defined…cont
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…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
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.
B.
C.
D.
Fundamental analysis
Historical analysis
Inferential analysis
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
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Thank you!