MARKET ANALYSIS

The Standard Checklist

In analyzing the housing market, the following basic questions must be answered:

Who is the market?

• Open
• Captive
• Targeted

Where is the market?

• Geographical reach
• Relationship to the project site

How large is the market?

• Ratio between number of products and number of potential buyers

What does your market want?

• Type
• Design
• Quality
• Area

Who are your competitors?

• Project’s competitive edge
• Project’s popularity

When is the right time?

• Related circumstances, e.g. economic conditions, political motivations, Social issues

What are the obstacles?

• Design
• Implementation
• Funding

MARKETING BASICS
Marketing: working with markets to bring about exchanges for the purpose of satisfying human needs
and wants.

CORE MARKETING CONCEPTS

• NEEDS
• WANTS
• DEMANDS
• PRODUCTS
• EXCHANGE
• TRANSACTIONS
• MARKETS

THE SOCIETAL MARKETING CONCEPT holds that the organization should determine the needs, wants,
and interests of target markets
The Marketing Management Process
• Analyzing Market Opportunities
• Marketing Research and Info Systems
• Consumer Markets
• Organizational Markets

Selecting Target Markets

- Measuring and Forecasting Demand
- Market Segmentation, Targeting and Positioning

Developing the Market Mix

- Designing Products
- Pricing Products
- Placing Products
- Promoting Products

Managing the Marketing Effort

- Competitor Analysis and Competitive Marketing Strategies
- Planning, implementing, organizing and controlling marketing programs

Defining the Market

LEVELS OF MARKET DEFINITION

- Potential Market: The set of consumers which profess some level of interest in a particular product
orservice.

- Available Market: The set of consumers who have interest, income, and access to a particular
productor service.

- Qualified Available Market: The set of consumers who have interest, income, access and
qualificationsfor a particular product or service.
- Served market or Target Market: The part of the qualified available market the company decides
topursue.

- Penetrated Market: The set of consumers who have bought a particular product or service.

ESTIMATING TOTAL MARKET DEMAND

The total market demand for a product or service is the total volume that would be bought by a defined
consumer group in a defined geographic area during a defined time period in a defined marketing
environment under a defined level and mix of industry marketing effort.

- Forecasting: The art of estimating future demand by anticipating what buyers are likely to do under
agiven set of conditions.

Survey of Buyers’ Intentions:

• Purchase Probability Scale
• Consumer Sentiment/Confidence Measure
• Time-series analysis: Breaking down past sales of a product or service into its trend, cycle, season, and
erratic components, and then recombining these components to produce a sales forecast.
• Statistical demand analysis: A set of statistical procedures used to discover the most important real
factors affecting sales and their relative influence; the most commonly analyzed factors are prices,
income, population and promotion
• Leading indicators: Other time series that change in the same direction, but in advance ofcompany
sales.

Examples: Property sales, Food sales, Car Sales

Indicators of Market Potential

DEMOGRAPHIC CHARACTERISTICS
• Size of Population
• Rate of Population Growth
• Degree of Urbanization
• Population Density
• Age structure and Composition of the Population

GEOGRAPHICAL CHARACTERISTICS
• Physical Size of a Locality
• Topographical Characteristics
• Climate Conditions

ECONOMIC FACTORS
• GNP per Capita
• Income Distribution
• Rate of Growth of GNP
• Ratio of Investment to GNP

TECHNOLOGICAL FACTORS
• Level of Technological Skills
• Existing Production Technology
• Existing Consumption Technology
• Education Levels

SOCIO-CULTURAL FACTORS
• Dominant Values
• Lifestyle Patterns
• Ethnic Groups
• Linguistic Fragmentation

NATIONAL GOALS AND PLANS

• Industry Priorities
• Infrastructure Investment Plans
Major Segmentation Variables
GEOGRAPHIC
• Region
• Size
• Density
• Climate

DEMOGRAPHIC
• Age
• Sex
• Family Size
• Family Life Cycle
• Income
• Occupation
• Education
• Religion
• Race/Nationality

PSYCHOGRAPHIC
• Social Class
• Lifestyle
• Personality

BEHAVIORISTIC
• Purchase Occasion
• Benefits Sought
• User Status
• Usage Rate
• Loyalty Status
• Readiness Stage
• Attitude toward Product

Housing Needs Assessment

ANALYTICAL TOOLS FOR HOUSING
Affordability Analysis:
• The 30% of income rule-of-thumb
• The formal income as basis

Supply and Demand Analysis

• The existing stock
• The upcoming stock
• Housing Backlog

Design Preference Analysis

• Housing typologies
SWOT Analysis
• Physical/Natural Factors
• Socio-economic factors
• Competition

Cost-Benefit Analysis
• Quantifying Costs
• Quantifying Benefits
• Quantifying Net Effect

Highest and Best Use Analysis

• Alternative Sites
• Alternative Projects
• Alternative markets

Technological Issues in Mass Housing

• Technology - new production process of existing systems or materials

Technological Housing Solutions:

1. Industrialized Housing - a residential structure that is designed for the occupancy of one or more
families; constructed in one or more modules or constructed using one or more modular components
built at a location other than the permanent site

2. Disaster Relief Housing – goal is to prepare housing victims within hours of a disaster striking

3. Energy Efficient Housing - well insulated and sealed against air leaks.

4. Affordable Housing - housing units that are affordable by that section of society whose income is
below the median household income (https://economictimes)

5. Vertical Housing - means the construction or remodeling of any building, structure or other
improvement that is predominantly vertical

Industrialized housing
1. Concrete modular building - also called as pre-cast or prefabricated concrete buildings

2. Steel frame system - consisting of vertical column and horizontal beams

Disaster relief housing

1. Rapid monolithic disaster proof (RMD) - The construction in which all the elements are cast together
with rcc by using aluminum form/similar form work, which supports wall, beam, column, roof slab and
other elements together for concreting in one go. (https://www.nbmcw.com/)

2. Monolithic dome house - a thin-shell structure cast in a one-piece form

Energy efficient housing

1. Green building standards - Practice of increasing efficiency with which buildings use resources such as
energy, water and materials while also reducing the buildings’ impact on human health and the
environment.

2. Solar power - has a rooftop photovoltaic (PV) array or ground mount solar system installed

Affordable housing
Low-cost Efficient System (Indigenous Materials)

Vertical housing
1. Medium to High Rise Condominiums
2. Tenement Housing - narrow, low-rise apartment buildings that were shared by many people

Types of Mass Housing Technology

1. Precast - pre-stressed concrete panels
2. Rapid Monolithic Disaster Proof
3. Fiber Cement Components
4. Concrete Modular Houses
5. Tilt-up Panel System
6. Disaster Resilient Dome House
7. Disaster Resilient House

Design Considerations & Performance of Building Materials for Housing

• interest in indigenous housing materials
• interest in waste recycling
• alternative means of production that are energy-efficient
• Building materials production requires rationalization based on what raw materials are locally available
• Review of how materials perform on the whole building.

A. Stability & strength

• Basic factors in designing the structural requirements of a building:
• have adequate margin of strength
• Must be sufficiently rigid

B. Dimensional Stability
Four principles can be identified regarding dimensional changes of building materials & structures:
• elastic & inelastic, deformations due to applied loads
• expansion & contraction due to changes in temperature,
• expansion & contraction due to changes in moisture content, &
• movement due to chemical reaction between materials in contact or between materials & moist air

Most cracking in building surfaces can be due to induced stresses because of restraints to shrinkage &
thermal movements. These changes are dependent on 4 factors namely:
• The magnitude of the movement in the material if unrestrained
• The modulus of elasticity of the material
• The capacity of the material to creep or flow under load
• The degree of restraint to the movement of the material by its connection to other elements of the
structure.
C. Exclusion of Water
Three principles by which the interior of a building may be kept dry are to be observed.
• The provision at the outer face or anywhere within the building fabric of a skin that is completely
impermeable
• The use of materials that are permeable to water
• The provision behind the outer skin of a continuous cavity to break the capillary paths along which
moisture travels.

D. Fire protection
• The designer resorts to other methods of providing the necessary standard of safety against death due
to fires inbuilding.
• Provision of an appropriate means of escape from the building
• Proper designing of the buildings
• Safety provisions of fire safety are determined by occupancy

D. Comfort Conditions
• insulation & ventilation
• the extremes of temperature are not so large• thermodynamic principle of heat• providing insulation
in construction

E. Acoustical Comfort
• reasonable sound insulation in buildings
• problems of acoustics must be considered first in terms of the whole building system
• consider 2 types of noises

F. Illumination
• solar access must be assured in the building
• Good lighting
• in use of daylighting
• levels of lighting have to be translated into levels of daylight & into sizes of windows openings
• color of room surfaces.

G. Material Durability & Maintenance

• technical problems can involve physical & chemical properties of materials
• materials that functionally support the building framework are expected to last the whole life of the
building
• condition of exposure.
• Factors that influence the durability of brickwork & blockwork:
• crystallization of salts
• Solution of rainwater
• Biologic agencies
• Atmosphere pollution
• Abrasion & impact
• Chemical Action
H. Mortars for jointing
• Mortar - means a mixture of fine inert aggregate & some binding agent used as jointing or as a surface
coating.
• Function of mortar as jointing material for bricks or blockwork – mortar must be sufficiently yielding to
accommodate the various differential moisture and thermal movement within the structure.

Mortar used for jointing must be:

• easily workable to facilitate application & spreading.
• Sufficiently stiff once the brick is positioned so that the mortar is not squeezed out as work progresses.

Workability of mortar:
• ability to flow while being sufficiently cohesive & adhesive
• ability to hold water against suction of the bricks

LOW –COST HOUSING DESIGN & CONSTRUCTION

The Roof
• Roof – prime element of shelter. Its primary function is to ward off the heat of the sun and to prevent
penetration of rainwater. Thermal insulation qualities & imperviousness of roofing material, become
essentials of the roof.

Roofing materials should have the following qualities:

• Should cost less
• Should be adequately durable
• need no elaborate structural supports
• easily handled manually
• not entail the need for skilled labor for installation
• sufficiently fire-resistant
• not depend too much on imported components
• easily transportable
• not require elaborate manufacturing plants not presently obtainable
• can be repaired in sections
• require no additional finishing
• visually acceptable.

Wall
• The space covered by a roof must also necessarily be protected by walls. Rainwater propelled against
walls has minimal contact with the wall surface unless wall material itself is permeable.

The Opening
• Window panel serves both as awning as well as closure for the opening.
• When houses become substantial, sliding windows were introduced.
• During sunny days, capiz sliding sashes could do nothing against the glare so a system was introduced
to cut off the glare in the form of sliding louvered shutters
The Amount of floor Space
• One of the basic cost determinants in house construction is the volume of space enclosed. Sleeping
area don’t require head space. Lofts & ledgers add to sleeping areas without affecting volume of space
enclosed.

ISSUES & POSSIBLE SOLUTIONS

The Roof
Imperviousness to water is one of the basic characteristics. If coating of the material is fused to one
surface of a sheet of plywood, to a wood particle board (which we have) or to a composition building
board the end product could serve as:
• impervious roofing material
• insulation board
• finished ceiling surface

The Opening
• Openings in a house admit light & air into the house and satisfy the psychological need to relate to the
outside. The multiple functions of the conventional window could perhaps be isolated, function by
function, & each onecould be interpreted singularly.
• The Amount of Floor Space
• In a low-cost type of house, disposition of space for maximum utility is of primary concern.
• disposition of floor space when space is at a minimum should allow for multiplicity of uses.
• The sacrifice of the personal privacy of members of the household becomes inevitable in a minimal
dwelling unit.
• floors used for sleeping should be best elevated above ground

The Need for Expansion

• Low-cost houses have provision for future expansion, an aspect often overlooked is the proper
anticipation of such expansion in the structure.
• Roof construction – simple shed or lean-to type
• Exterior walls – should be designed to accommodate the addition with minimum restructuring.
• Floor- will have to be elevated, additional height would make lower portion of house useful

IMPACT OF NEW TECHNOLOGY IN LOW-COST HOUSING

Several factors are attributed to the apparent inability of new technology to have an impact in the
delivery of masshousing in the Philippines.
• First – Imported Raw materials – the huge manufacturing plant to support the massive housing
program of thegovernment flopped
• Second – Cost – most of the technologies cannot compete with the concrete hollow blocks and metal
roofsystem
• Third – Cultural Factors – the “materials fuertes” concept and the concept of permanency
• Fourth – Special equipment – some systems entail the use of heavy or special equipment which
contractors &developers find an added expense.
• Fifth – Reduction of Manpower – with the use of new technology lay-offs are inevitable,
• Sixth – Skills – New technology need new skills
• Seventh – Acceptance – old technology is still the predominant system is because the resulting quality
comingfrom it
• Eight- Delayed payments –new technologies promise high quality and speed in deliveries, Contractors
andDevelopers find speed not a factor
• Ninth – The willingness to have quality but unable to pay for it – Design professionals, contractors
anddevelopers are committed to deliver quality products only up to the level of what they feel the
market can pay.
• Tenth – Housing finance system – housing finance system needs to be looked at again in totality.
• Eleventh – No Government Incentive –incentives can be recovered back in terms of more efficient use
of materials
• Twelfth – Every Developer wants their own system –not universally of use to create an impact on
housing.

HOUSING BEYOND THE SHELTER

Alleviating Poverty Through Housing Development
• Research has clearly demonstrated that in most regions housing has the potential of becoming an
engine of economic growth because of its high yield on invested resources, a high multiplier effect, and a
host of beneficial forward and backward linkages in the economy.

Eight points are presented as a tool kit for poverty alleviation through housing and construction:
I. Upgrading informal housing
• Even though the informal housing sector produces the majority of all new housing units in the cities of
developing countries, it is rarely appreciated or supported.
• the acceptance of informal settlements as legitimate forms of urban housing which should be
improved rather than demolished.

II. Providing land for informal housing development

• Governments should designate special areas for informal housing development where people can build
their houses over time with whatever building materials are available and affordable to them.
• Building sites should be offered to the urban poor with the same conditions as land in existing informal
settlements, that is, without infrastructure and services.

III. Supporting community-based construction and management of infrastructure

• Public agencies should provide licenses and/or contracts to informal bonafide firms and community
associations for the execution of specific tasks in the construction of infrastructure and provision of
services.

IV. Supporting informal sector contractors

• Small-scale contractors can play an important role in poverty alleviation because they use unskilled
labour, local materials and labor-intensive techniques.

Strategies to support the small-scale formal and informal sector contractors include:
• development of mechanisms to make credit available to small-scale contractors.
• targeted procurement
• above a certain financial capacity.
• revision of regulations on preferential pricing and building.
• splitting large contracts into several smaller contracts.
• creating a revolving fund for equipment procurement.
• provision of training in tendering and contract management.
• facilitating access to credit.

V. Supporting small-scale building materials producers

• Due to the high employment content and low capital costs, production of building materials has been
successfully combined with poverty alleviation in many countries.

Strategies to support small scale building materials producers include:

• simplifying registration procedures.
• development of specifications and quality standards for local building materials
• facilitating participation in tenders through targeted procurement
• specifying local materials for the construction of public buildings
• provision of training and technical assistance
• facilitating access to credit

VI. Supporting informal and community-based financial systems

• In most developing countries, the formal housing finance institutions provide services mainly to the
upper and middle-income groups because the urban poor lack collateral, regular income, and savings
• Rotating credit societies are major players in informal housing, and they can become important tools in
poverty alleviation

VII. Supporting low-cost rental housing

• For many of the urban poor, including small households, young couples and newly arrived migrants,
rental housing is the only practical form of tenure. Urban poor tenants often use a large part of their
income on rent, even for grossly inadequate housing.
• The availability of cheap rental housing is a vital element in any poverty alleviation strategy.

Support activities to stimulate rental housing include:

• developing loan systems
• provision of land for low-cost rental housing development
• revision of planning and building standards
• tax exemptions for rental housing construction and rental incomes
• integrating rental rooms in low-income housing schemes

VIII. Revision of building regulations and codes

• Revision of building codes and establishment of technical norms and standards for local building
materials will contribute indirectly to poverty alleviation through increased low-cost housing
construction and employment