Introduction

Armstrong (2014) viewed marketing research as a process of gathering

information about target market in order to have an in-depth view of the
customers or consumers so as to satisfy their needs better.
• gives decision-makers the information they need to find solutions to
business problems, such as the following
How satisfied are customers with your product and service offering?
 How will customers react to a decision to change a price or product?
 What are service representatives hearing from customers?
 What responses to competition will bring you success in a given market?
 1.0 Introduction
Marketing function of real estate business involves all activities relating to the marketing of
the firm and its services;

i. marketing and administration of immovable properties on behalf of a client,

ii. marketing of immovable properties, residential, industrial, commercial office

and retail on behalf of clients for sale or leasing of space.
• Marketing research often focuses on understanding the “Customer” (purchasers,
consumers, influencers), the “Company” (product design, promotion, pricing, placement,
service, sales), and can also be expanded toward the environment to include “Competitors”
(and how their market offerings interact in the market environment).
 Introduction cont’d
Marketing research is a function that links
• the consumer,
• customer,
• public to the marketer through information
information will be used to identify and define marketing opportunities
problems; generate, refine, evaluate marketing actions; monitor marketing
performance; improve understanding of marketing as a process.
• specifies the information required to address these issues,
• designs the method for collecting information,
• manages and implements the data collection process,
• analyzes the results, and communicates the findings and their implications.
(American marketing association,2012)
 Introduction cont’d
Wilkinson and Reed (2008) posit that the identification and
study of the market for a particular economic good or service
and this can be considered at two levels thus:
• from the broad market view point, without a specific property
as the focus of the study
• from the perspective of the real estate market in which a
given property competes
Rationale of property marketing research

To gain an understanding of markets

To identify changes in the market
To Improve market awareness
To gain an understanding of customer needs
 To reduce the risk and uncertainty
To anticipate /forecast market trends
To provide a sound basis for marketing decisions
 Marketing Research Techniques
These categorizes both quantitative and qualitative which are further classified as
primary and secondary classes
Qualitative market research means "quality.“
designed to talk to a relatively few people in the target audience of interest.
Qualitative research or qualitative market research is a kind of a research
method which mainly takes into account the opinions and feelings of a customer
as far as a business’s products and services are concerned.
For an example property buyers may have various perceptions on certain
properties and these determine the taste and preferences of the prospective
buyers. A qualitative property marketing research will unleash this to the property
developer or property investor.
 Marketing Research Techniques
Marketing research techniques are adopted in either qualitative or quantitative in
nature.
QUALITATIVE RESEARCH OR QUALITATIVE MARKET RESEARCH

• takes into account the opinions and feelings of a customer as far as a business’s
products and services are concerned.

• The purpose of qualitative research is to plumb the depths and range of buyer
attitudes and beliefs, not to measure incidence, project, or forecast quantity
(Barabba at el).
 Qualitative market research
Qualitative market research may assess how much of the total floor
space is likely to be competing directly with the client’s scheme, given
its characteristics and indented occupier profile,
• Wilkinson and Reed (2008) they said data may be obtained through
the following:
Field inspection, e.g. vacant sites
Review of building permits (issued and acted upon)
Interviews with developers and government planners
Review of newspaper articles and media coverage.
 Quantitative Research Techniques

• is a kind of market research work that is based on hard facts and statistical data
rather than the feelings and opinions of the customers or consumers.
• For example property data or information is required by the real estate developer
or investor which answers the question
• how much housing units are required by the community?,
• how many people are on the municipality’s waiting list,
• how many shopping malls or centres are in the neighbourhood,
• how much rentals are likely to be achieved ”.
 Primary Research Techniques
• It is research done from scratch, without using any information that is already
made available through other sources data is gathered either in qualitative or
quantitative form.
• Types of primary research techniques explained in detail;
Focus group

• These are moderated and brainstorming sessions among a group of people of say 6 – 12 people
per each location per session usually with a good moderator.

• Participants are asked about their perceptions, opinions, beliefs, and attitudes towards a
product, service, concept, advertisement, idea etc. Helps to probe and obtain a deeper
understanding and capture a broad spectrum of opinions
 Primary Research Techniques
Cont’d
Survey
• based on a predetermined set of questions that are given to a
sampled population as per the market researcher.
• Population interests and attitudes are determined from drawn sample
and can be compared statistically thus they are usually quantitative in
nature.
• Data can be obtained through written questionnaires, telephone or
online.
 In-depth interviews

• Conversation between two or more people.

• the interviewer will for elicit facts or statements from the interviewee
and these are usually qualitative in nature.
• A real estate developer in conducting a demand analysis were he
focuses on identifying the potential users of the proposed
development.ie
• property buyers,
• tenants or customers it will attract,
• interviews cold be a tool which could provide guidance.
 Experiments or Field trials

• Is a procedure carried out to verify, refute, or establish the validity of a

hypothesis.
• Experiments provide insight into cause-and-effect by demonstrating what
outcome occurs when a particular factor is manipulated.
• Real estate developers use various techniques in the form of experiments or trials
in order to taste the market.
• The idea of demo houses, building in phases and servicing (on-site infrastructure)
provision. All these are a kind of experiments for the market. The responses on
the uptake gives a benchmark or the level of demand.
 Observations
is the active acquisition of information from a primary source.
employs the senses and in science
recording of data via the use of instruments.
Observations can be both qualitative and quantitative if a numerical value is
attached to the observed phenomenon by counting or measuring.
In real estate, it is often used by potential investors by merely moving around to try
and appreciate and ascertain certain hard facts on a given real estate market
segment.
For example the continual lateral expansion on residential developments in
Bulawayo can be observed by an investor as an indication for a lucrative market or
an observation of empty commercial buildings in the CBD of Harare can
communicate something negative about the returns to the investor hence an
informed decision can be reached. 
 Secondary Research Techniques
This research technique is based on collecting information from different already existing
sources and then coming to a conclusion.
These sources are dichotomised into internal and external market sources.
a) Internal sources.
• Is regarded as data that already exist and are collected in the business’s database or file
system and in real estate development the kind of information proves useful for future
real estate development projects.
• internal sources are enough to be used develop new products and services, and this
may not require them to look outside.
information which could be used include the following:
Sales figures
based on the previous or the currently obtaining sales of their projects.
Eg the CABS housing project in Budiriro Harare,
 Secondary Research Techniques
cont’d
ii) Own portfolio analysis
• identifies which mix of asset classes can provide the maximum return
for any given level of risk.
• Old mutual core business is property and it has invested in residential,
industrial and commercial portfolio.
• can analyse and measure the performance of each portfolio and
choose one portfolio to concentrate on and invest more on the
portfolio with the best performance without necessarily looking for
data or information outside its portfolio.
Secondary Research Techniques
cont’d
Balance Sheets
Profits and Loss statements
Inventory records
 Secondary Research Techniques
cont’d
b) External sources
refers to data or information collected by other organisations or
people/professionals thus events happening outside of the
organisation.
These include multiple sources such as government sources, internet,
competitors, universities and colleges
Summary of research techniques
 MARKET RESEARCH TYPES IN REAL
ESTATE
There are methods for obtaining market data and other critical
information based on philosophy of Epistemology.
Epistemology entails numerous approaches to gathering information
and knowledge, nature of knowledge and how it can be acquire.
There are many prescribed methods for obtaining market data and
other critical information which are classified in the context
qualitative and quantitative research approaches.
 MARKET RESEARCH TYPES IN REAL
ESTATE Cont’d
• Empirical Research- analytical, objective, controlled, precise,
tangible, and measurable.
• The word empirical comes from the Greek word for experience, it
simply means “experiential” or “based on experience.”
• Empirical research can take the form of the scientific quantitative
method, positivism, or analytics and is designed to answer the
researcher’s question, what are the facts?
 Empirical research

• The benefit - is that tests can be replicated and the measurements can
be tested and validated or invalidated by others. . Data from the
market can be invalidated by others depend on the date of valuation
or transaction
• A negative aspect -they can lack the story behind the data and are
only as good as the data relied upon.
• Applications -the collection of transactional market data, such as
sales or lease comparables, vacancy rates, expenses, and
capitalization rates.
 Empirical research

• In real estate valuation- essential for use in the sales comparison,

income capitalization, and cost approaches to be used as a basis of
marketing.
 Hermeneutics
• means “the art and science of interpretation.”

• Source of these data is qualitative from secondary data

• These are prominent sources provide written standards, regulatory
and institutional frame work for real estate.
• Researchers have ethical obligations to their profession to conduct
• their research with honesty and integrity, and to the general public to
promote the beneficial application of research as provided by
professional code of conduct in line with real estate agents council.
 Hermeneutics
• Pitfalls -text can be outdated and thus not applicable to current
circumstances. The meaning of words themselves can change over
time. Application of statutes in a changing in environment.
 Phenomenology
Method that attempts to document one’s own experience or enter into the
mind of another person in order to have complete understanding and
empathy.
As its name implies, its origins are in the study of phenomena occurring
within the mind of the subject.
This will include the
• Surveys are used when answering questions about a population.
• Forms of survey.
• Informal interviews
• Formal interviews
 Phenomenology
Surveys can be administered using a variety of methods, including telephone,
mail, online, or in person.
• These takes place through discussions with local market participants who are
staple research tool. For example
• the buyers
• real estate firms,
• developers, banks,
• municipalities,
• the government,
• property experts etc.
 Ethnography
• Its qualitative approach
• involves the study of local customs and practices.
• Entail extended studies as well as field inspections and observations.
• Ethnographers study the meaning of the behaviors, language, and
interaction among members of the culture-sharing.
• Involves taking measures to gain an understanding of local markets, local
laws, regulations, customs, and practices.
• E.g. the market segment of Indias in belvedere in Harare
• The benefits - focus on the natural setting, it is design to explore the cultural
phenomena and how it affect the marketability of the property.
 Comparative Research
• involves comparing and contrasting multiple features and
characteristics.
• how does this compare with that?
• it allows multiple positions to be considered and studied, along with
critical thinking of each position.
• Application –comparing like and like case studies.
 Action-Based Research
• involve an iterative cycle where problems are diagnosed, plans are
formulated, actions are taken, results are evaluated, and feedback is
obtained for the next cycle.
• learn-by-doing approach to knowledge. Most common in business
management movement to find pragmatic solutions to immediate
problems.
• it involves one’s own ideas and potential solutions to problems, and
thus provides a sense of ownership.
• it may eliminate outside knowledge and thus outside solutions.
 Rationalism
• Involves intuitive and self-evident information. Based on the principal
of rationality.
• the principles of logical reasoning.
• logic provides the criteria for evaluating the correctness of one’s
reasoning.
 Testimony
• considers presentations or statements by others, both sworn and unsworn.
• Sworn testimony is often admissible evidence in court. In litigation
support, such statements can be formal declarations made to the court.
• Furthermore, testimony in the form of statements or declarations are also
considered as support or proof of a fact.
• Real estate professionals often obtain statements or observations of
market participants, which may be included in a report.
• Examples include statements or representations made by property
owners or managers, brokers, agents or others.
 Constructivism
• Combines convention, human perception, and social experience.
• Its origins are found in the different viewpoints from multiple
perspectives.
• The concept here is accumulating multiple research methods to
answer the researcher’s question, how does everything add up and
how do we reconcile multiple research methods or multiple angles?
• In a real estate valuation context, one sales comparable may provide
an initial indication of value; however, numerous sales comparables
add credibility, bracket the characteristics of the subject property, and
provide a far more reliable indication of value.
 MARKET RESEARCH PROCESS

Needs, Wants, and Demands

 The marketing theory is the principle that man needs, wants and demands certain products.

 Concerning the marketing of real estate, man needs a place to live and, sometimes, to work
from.

 He wants a place, where he can entertain and rest, and demands real estate in a specific
place, in the building style and size that he likes.( Henryk Rostowicz 2001) .

 An example of market research in real estate is a Real estate appraisal by which the value of
real estate assets is appraised.

 It is based upon the expert opinion of a professional, in this case a real estate appraiser, and
his goal is to reflect the monetary value of the rights to the real property.
 MARKET RESEARCH PROCESS

The function of a real estate appraiser is to gather data from the field from similar assets, to
study the general economic data from the area, and to apply the theories of appraisal to
these data.
In Real Estate, the market research follows the same principles as stated above and it is
necessary to analyse the factors that influence people's attitudes about value. Real Estate
market research will focus on but not limited to the following
 Anticipation
 Supply and Demand
 Competition
 Substitution
 Opportunity cost
 Externalities
 Importance of market research
Identify potential customers
Understanding your existing customers
Set realistic targets
Develop effective strategies (how to price your
product/service, how to distribute your product/service,
which media channels to use)
Examine and solve business problems
Prepare for business expansion
Identify business opportunities.
 Process of marketing research
 Market research focuses your marketing strategy on potential customers
that want your product.
Small and local businesses may find researching their market easier than
large, nationwide businesses because their customer base is smaller.
Timely information reduces business risks and helps spot sales
opportunities. It is important that to identify current challenges and
potential problems in the current market, a proper plan and strategy need to
be to develop.
Marketing research takes the form of a sequential process entailing several
distinctive steps or stages. To obtain high quality results, i.e. information that
is relevant, accurate and reliable, research specialists need to work on their
project by following the specific stages in the right order as well as spending
the adequate amount of time on each one of them.
…..Process of marketing research

1.Problem definition
• specifying first the decision problem and then the research problem.
• critical for the success of the study since wrong problem definition results in findings that may
not be useful in decision making.
2.Developing an approach to the problem
• involves identifying and specifying components of the research problem, i.e. research
questions and hypotheses.
• The objective here is to break down the research problem into manageable pieces that will
allow for easier selection of a research design and safeguard against omitting issues that
could be critical for resolving the research problem.
• The most important output from this phase is a detailed and comprehensive list of all items of
information that are to be collected if a satisfactory answer to the problem is to be found.
 3.Research design formulation.
• Select suitable research methods and techniques that best suit the purpose of the study and
available resources
…Process of marketing research

4.Fieldwork or data collection.

• Depending on the research methods chosen in the preceding phase, collect data from assorted
secondary and primary sources.
• The major tasks of the researchers in this step are coordination and control of the field force, so
that they work honestly and thoroughly to generate accurate and complete data.
5.Data preparation and analysis.
• involves such activities as editing, coding, transcribing and verifying of raw, unprocessed material
generated in the field.
• data analysis is focused on finding answers to research questions and verifying hypotheses put
forward in step two of the process.
6.Report preparation and presentation:
• To satisfy requirements of decision makers who commissioned the study the findings must be
presented in a comprehensible and coherent manner.
Market Research Challenges

Objectives are unclear, leading to conflicting or unrealistic expectations.

Consumer cannot easily express how they feel.
Sometimes data providers are not strategic advisors
Sample has quality issues
Instrument is poorly designed eg long, complicated questionnaire
Data analysis is conducted with more attention to techniques than results
Schedules slip significantly; research is completed too late to support intended decisions
Internal clients unable to apply the research as originally intended; “action-ability” of
research.
Research report may contain egregious errors.
Client-agency relationship is unproductive or strained, causing miscommunication and
conflicts.
Marketing strategies for Real Estate

After completion of a market research , answers as to how to market

the product will be clear and the use of the most effective strategy will
be adopted
Print media
Magazines, newspapers, brochures, billboards,direct mail

Advantages
Flashy magazines always popular Disadvantages
Monthly magazines are best way to bring attention to any advertisement
effecive in advetising to any particular geographic area
Does not target global markets
Some print media have huge and trusted followers
Allows selection of your own space for advertising according to your budget
print media less flexible with deadlines in submission of advertisements
Life span of newspapers and magazines is very short
 Internet

Advantages
Reach the target audience : the advert will be seen by those people interested in this information Disadvantages
Reaches Global markets/extensive coverage
Large capacity information
Lack of confidence for online adverts due to scams
Less costly Online marketing personnel requirements are higher than
Accesible : a person can access internet anywhere at any time
A wide range of ad formats , Quality other media
Real-time and long lasting unity : companies can change advert info at ant time
Competition is fierce
Complicated compared to print media
 Electronic
Radio

Advantages
Cheaper compared to print media
Disadvantages
Wider range of audiance, even illerate people Lack of permanency : if you missed details you will have
Portability of radio (cars, buses , public areas) and you can listen whilst doing other things unlike TV to wait again for the advert
and print media
Distraction : when one is busy to write down advert details
Advertiser can sponsor a particualr programme
Products requiring technical knowledge cannot be
advertised successfully through radio
Absence of visuals will not give the desired impact
• For example, one of the biggest Real Estate companies in Zimbabwe, ZIMRE
Properties have a very active website with real time information on the new
developments on the market. Below is their home page showing how they have
effectively designed their website which is very strong marketing strategy.

ZIMRE Properties is enjoyed the following advantages of web marketing :

• Reaching out to targeted audience
• Low cost compared to print and TV, hence marketing budget is greatly reduced .
• Real time changes to adverts, if a property is sold, it is quickly removed the same
if a new property is put in sale it is quickly uploaded to the website
• Quality of adverts with high impact visuals and videos
From the website the targeted audience has immediate access to all services , products
provided by ZIMRE. Large volumes of information can be made available at high quality
but low costs compared to print, radio and tv .
Online media classifieds are less costly
expensive, large volumes of information
about a product can be uploaded and easily
accessible, global outreach ,quality and
visual impacts , adverts can be changed in
real time
Print media classifieds have limited space,
are expensive , less reach because of
location, have less impact because of lack
of visuals, and the print media has a life
span with a day for a daily newspaper