Project Market Analysis



Application of scientific primary and secondary market research methodology to establish the project’s market position, identify competitive advantages, and evaluate core performance criteria is the basis for sound strategic and tactical decision-making.

The value of project market analysis is dependent on the scope and quality of data collected and the analytics used to translate data into useful applications.  The project market analysis utilizes a broad array of data sources that include primary and secondary, quantitative and qualitative research methods.  The overall project market analysis should be designed to evaluate the five core components of every project: Product, Price, Position, Promotion, and People.

When evaluating the competitive price position of the project it is necessary to weight raw price data with construction, design, and location factors.  The more detailed the data the more accurate the price analysis.  The product data breakdown typically should include the interior and exterior materials by type and dimension; appliances and fixtures by brand and specifications; ceiling heights; window systems; HVAC systems; and every other project component relevant to cost and quality.  When formatted in side-by-side view, the data provide a basis to compare each building component with market comparables and lay the framework for an array of design, product, and pricing decisions.  In addition, the project comparables analysis is a valuable tool to train the sales team to effectively communicate the project’s attributes and key points of differentiation through sales scripts and presentations.

The strength of the project’s market position is determined by the overall design, price and features as well as consumer perceptions developed by the project’s brand and messaging.  Collaboration of the development team with sales and marketing early in the planning and design phase is an excellent method to help align the project’s position in the marketplace with consumer demand. The insights gained from sales and marketing will add valuable input for planning decisions; among them creating project differentiation and evaluating the likely impact of value engineering on buyer demand.  While product design and price are core structural factors in determining the project’s position in the marketplace, the marketing brand, advertising, promotions and all forms of communications shape the project’s position in the minds of consumers and real estate agents.

Advertising media selection and overall promotion of projects are going through significant transformation.  As newspapers’ revenue decline and the value of their content diminish, marketers and developers are seeking alternative promotional channels and tactics.  The use of the internet by consumers is quickly becoming the preferred method buyers use to begin their search for a home.  This is not to say that a project can be promoted exclusively via the internet.  Other media and promotion such as specialized publications, direct mail, networking through real estate agents and other established channels should still be part of the marketing mix.  However, creative channels such as social media, networking through social and business spheres of influencers, segmented direct mail, and intensive data-mining are among marketing methods that are becoming more prominent in the marketing strategy.  In addition to seeking more effective promotional channels, the development team is placing greater importance on the correlation between promotional initiatives and their measurable return on investment.

The final piece of the project’s competitive position is the performance of all the people representing  the project.  How does the development team stack up against the competition; what about customer service; marketing, construction management, and the front line sales representatives?  Major projects require competency at all levels.  It is critical that the development team select the best available vendors and allow each vendor to perform at their highest level.  Of course, the site sales team must meet the highest standards of excellence since they are the most visible to the public and the real estate broker community.  Site sales professionals must be able to clearly and accurately communicate all attributes of the project, build trust and rapport with prospects, and present themselves in a manner that compliments the project and creates a positive experience with every consumer and real estate agent contact.

When the development team begins the project on the right foot with a detailed and accurate market perspective based on solid research, and keeps the data current throughout the project sellout, the project has the best chance of a successful launch and the ability to make strategic and tactical adjustments as needed based on changes in the marketplace.



One Response to “Project Market Analysis”

1. John Murphy says:

   April 15, 2009 at 1:48 pm

   Well put Tom! Information you have about your competitors and how their product, marketing and sales team is crucial. Knowing how they stack up against your community, marketing efforts and sales team will let you make informed decisions on what changes to tweak to make your community more successful.