Notre Dame of Dadiangas University

Graduate School

General Santos City

Case Analysis

In

Advance Marketing Management

Submitted By:

Princes Elizabeth P. Peñafiel

Submitted To:

Ms. Vanessa B. Jimenez

 MANAGEMENT DECISION CASE: The Cost of Building an Eco-Friendly Home

I – Highlights of the case

An Eco-friendly Home gets a lot of hype, but there are also concrete advantages to
"going green" when you build. Green building alternatives can help you save time and money for
some reason, protect your health and reduce your impact on the environment. It serves as one of
the reasons why KB Homes who is known to be one of the largest home builders in the United
States come up with the idea of building an eco-friendly home.

II – Major Problem/s

The major problem in the case of KB Homes is how can the company get a large number
of buyers and at the same time convince the potential buyers to purchase an eco-friendly home in
exchange of a paying a high cost.

A. Justification

To justify major problem it is stated in the case that green building or the green homes is
growing by 10 percent of new homes in 2010are expected to be an eco-friendly homes,
but with that increase home builders have been unable to get large numbers of buyers to
pay for a high cost of the eco-friendly home. And even the products are established and
provide a clear advantage to the homeowners’ still market acceptance has been difficult
to achieve.

III – Alternative Solutions

A. Make the necessary action as a home builder in terms of the legislation that supports eco-
friendly products through tax breaks and subsidies.

Advantages:
 It could help encourage consumers to incorporate more environmentally
responsible products into their homes.
 Through this it enable the home builders convince potential customers because of
the possible lower product cost due to exemption of tax or tax breaks.

Disadvantages:

 Even by imposition of tax breaks and subsidies the cost is still high and buyers
still cannot afford to purchase an eco-friendly home and products.
 B. Make a plan on how to market the product to convince potential buyers to purchase it.
Like creating an effective advertisement that shows the benefits of having an eco-friendly
homes. State the pros of purchasing a house or home that is eco-friendly, that it could
save energy, help the environment and save money in the future because of the nature of
the product being offer.

Advantages:

 It would inform the public of the benefits of having an eco-friendly home. It’s
good to show (through advertisement) the economic, social and environmental
benefits of an eco-friendly home.
 Give comparison of an eco-friendly home with the other time of home or house
designs that are not environmentally, economically and socially friendly.

IV. Recommendation/s

The best solution to the problem is to make an effective marketing plan to properly
strategize on the need of the company on promoting the product to the potential buyers or
customers. Through this solution the public will be inform of the benefits acquired on purchasing
a product.