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Q & A with
Dennis Walsh
I'm excited to have an opportunity to work with a developer bringing one hundred new home sites to my area. Because he's in the planning
stages of the project now, he's asked me to provide a detailed market
analysis. How do I go about this correctly? Thank you for any advice you can
share.
-I.W.
from Hidden Lakes, ID
Congratulations on this tremendous opportunity. To develop a marketing
relationship directly with a developer is a powerful way to grow your
business. In many cases, developers will choose to work with a number of
qualified builders, which can open the door for you to establish working
relationships that may continue well beyond this project.
The first suggestion I'd like to make is to carefully consider how much work
you want to do prior to entering into an actual commitment from the
developer regarding your role in marketing this community. There's an old
saying: "Never give out all the candy in the lobby." If you don't feel your
experience and track record in the area of new home sales offer enough
credibility at this stage, you may be willing to gamble the time and effort
providing market research and analysis services to demonstrate your
expertise and the value you can bring to the table. At the same time, you
want to be careful not to give away too much before entering into a firm
marketing agreement.
With that said, discussing the specifics of the market analysis process is
much more involved. I discuss it in depth in the Certified New Home
Specialist™ Training Program, but I'll give you a quick overview right now.
In general, you will gather market research information from various sources
and organize this information into the following categories:
1. Economic Feasibility
2. Consumer Demographics
3. Consumer Psychograpics
4. Competitive Market Analysis
5. Land Availability
6. Buyer Profiles
7. Builders Goals and Capabilities
Once this information is gathered, the next step is to develop your overall
"Marketing Strategy," which involves analyzing your market research as it
relates to:
1. Market Opportunities
2. Target Markets
3. Product Design and Positioning
4. Pricing Strategies
5. Advertising and Promotions
6. Absorption Rates and Sales Goals
7. Final Marketing Strategy and Budgets
At first glance, it would seem to be a complicated and daunting process to
complete – and your first time through will certainly be the most difficult.
However, once you've begun the market research process, you may be surprised
to find that the information critical to developing a successful marketing
strategy is all around you.
The good news is that you can easily learn the details and specifics of the
market analysis process through completion of the Certified New Home
Specialist™ Training Program. You'll also learn many other sales and
marketing strategies, creative marketing and advertising ideas as well as
organizational systems and other tools you can use to assure your success on
this project.
Best of luck to you, Dennis
Have a question for Dennis? Write to
question@sellnewhomes.com...
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