2. Kursus PTK3 2008 Bagi Pegawai W32 JPPH1 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

3. Kursus PTK3 2008 Bagi Pegawai W32 JPPH2 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.

4. Kursus PTK3 2008 Bagi Pegawai W32 JPPH3 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

5. Kursus PTK3 2008 Bagi Pegawai W32 JPPH4 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?

6. 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.

7.  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

8. 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?

9. 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..

10. 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

11. 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

12. 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!

13. General Research Mechanism

14. 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

15. 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?

16.  Quiz

17. Kursus PTK3 2008 Bagi Pegawai W32 JPPH16 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

18. Kursus PTK3 2008 Bagi Pegawai W32 JPPH17 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

19. Kursus PTK3 2008 Bagi Pegawai W32 JPPH18 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

20. Kursus PTK3 2008 Bagi Pegawai W32 JPPH19 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

21. Kursus PTK3 2008 Bagi Pegawai W32 JPPH20 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

22. Kursus PTK3 2008 Bagi Pegawai W32 JPPH21 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 ConsumerLocation, design, size, materials, facilities ProductIncome, occupation, age, family size, race, living place PricingLevels of demand & supply, prices, rentals, inflation, gross domestic product, regional market General market situationDevelopment costs, profit margin, demand elasticity, buyers’ affordability

23. Kursus PTK3 2008 Bagi Pegawai W32 JPPH22 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 analysis B. Historical analysis C.Inferential analysis D. Statistical analysis

24. Kursus PTK3 2008 Bagi Pegawai W32 JPPH23 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

26. Thank you!