1. Market Research: A tool for generating ideas
Reading: RE Development, Principles and Process. (Chapter 11)

2. Outline What is it? Some basics Ten critical questions to answer
Utilizing data analysis
Link between market research and inception of idea
Market Research

3. What is a market?
A market is a sub-group of a general population that is considered to contain potential buyers or users [and financiers] of a specific property type
Comprises of the following located in a specific geographical area:
Types of property
Owners (players in the capital market)
Tenants (players in the space market)
Market Research

4. What is market research?
Market research is the tool for discovering who buyers and end users are and what motivates them to buy
It is a means of discovering specific intelligence about your market
Of interest is:
The demographics of the market constituents
... and what their motivations are
Market Research

5. Some basics How? What skills do you need?
By collecting, organizing and interpreting data from local, regional and/or national sources to determine the potential sale (disposal) of a service, product or some facility
What skills do you need?
Detective work, statistics, interviewing, data organization etc >>> basic research skills
Market Research

6. Some basics Areas of research? Purpose? Demographic summaries
Analysis of current stat of the geographic area
Comparable and competitor products
Etc
Purpose?
Used in making projections
Market Research

7. Some basics
The primary purpose of a market research and reporting include:
Determining the size of the market
Supporting feasibility analysis
Determining the marketing strategy
Communicating findings to stakeholders
Gaining entitlements
Providing background information for funding processes
Market Research

8. Some basics It is an integral part of entire development:
Due diligence
Conducted before a purchase considering
macro- [technology, political, socio-cultural etc] and micro- [potential suppliers, customers, competitors etc] levels of the market
Entitlements
Understand desirable zoning and development conditions >>> do and don’ts
Market Research

9. Some basics Programming
Determine what to build and when >>> sequence, amenities, product mix etc
Project positioning
Informs the market niche for product
Sales
Determine the most effective marketing and sales programmes
Market Research

10. Some basics
Some strategic conclusions that a good market research can result in include:
Product positioning
Product type and characteristics
Amenities
Product mix
Price points
Absorption rates
Market Research

11. Ten critical questions a market research should answer
What are the trends in this type of development?
What is the current market?
What is the depth of this market?
What are the market’s perceived values?
What opportunities and challenges does the current market profile present?
How do you determine and gain an understanding of your target market?
Market Research

12. Ten critical questions to answer
What are market positions, development programs, price points, absorption, and lessons learned for competitive projects? Who are the buyers?
What are market positions, development programs, price points, absorption, and lessons learned for comparable projects? Who are the buyers?
Market Research

13. Ten critical questions to answer
What are the opportunities and challenges presented by the competitive and comparable projects?
What conclusions can be drawn about all aspects of the project?
Market Research

14. Utilizing data from market research
1. Analyse the data
Method of analysis used is determined by:
Type of data collected
The instrument used
The mode of data collection
What the expected outcome is
The tools available to aid in analysis
etc
Market Research

15. Utilizing data from market research
2. Draw conclusions
Descriptive
Measures of central tendency – mean, mode, median.
This information can be displayed in charts, graphs, tables etc.
Inferential
Correlations, regression etc.
This information can also be graphed, coefficients are listed to show relationships and their strength
Market Research

16. Utilizing data from market research
Conclusions can help to ....
Identify the strengths, weaknesses, opportunities and threats (SWOT) of
a product
its competitors
its comparables
Market segments geographically, financially and/or behaviourally
General market conditions and requirements
Market Research

17. Link between market research and Inception of Idea
A developer needs good understanding of the following to fuel good idea generation:
Themselves
Their organizations
Their competitors
Financiers
Other players
Potential clients
Market Research

18. Link between market research and Inception of Idea
Most importantly, the probability of the idea to have the following qualities in increased:
Competitive edge
Price advantage
Product quality
Appropriateness of location
Appropriateness of amenities and detailing
Timely deliveries
Market Research