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In this scenario the buyer recognizes the distinguishing
characteristics of the property (or professional) and is open to
accepting a higher price in exchange for higher value. The entire
premise of marketing is to explain or convince a potential customer
that there is enhanced value in the offering. This is the first step
to creating an atmosphere in which the buyer will accept your
marketing efforts. Once this perception has been created, you can
effectively use marketing to focus the buyer on value
rather than price. Often a negotiation will still ensue but it
has a higher chance of favorable outcome for the seller.
Creating Non-Generic Perception
Step 1: Do market research to identify the market segment(s) to be
targeted. If the segment is determined by self-desire, market
research is needed to determine its viability.
Step 2: Determine what attributes will appeal to this segment to
make this property (or your service) non-generic. What would add
value to the property/service? What would enhance the image/make it
a status symbol? Is your strength the developer’s reputation or
maybe a successful brand? In the case of an appraiser: do you have a
particular expertise or niche?
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Perception/Buyer Behavior Model |
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Buyer
Perception |
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B
u
y
e
r |
B
e
h
a
v
i
o
r
|
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Non-Generic |
Generic |
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Non Marketing Oriented |
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Price Specifications Delivery |
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Value Added
Image/Status
Reputation
Brand |
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Marketing Oriented |
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Source: I. Robert Parket PhD, “The effects of Product Perception on
Industrial Buyer Behavior”
Industrial Marketing Management,
3, 1972, pp. 339-345
Note the table below. Listed are some attributes and factors that
can be used to achieve them. Additional ways to achieve desirable
attributes include outstanding service, location, quality of
materials, amenities and meeting and exceeding customer
expectations. Readers and their teams are encouraged to develop a
more complete list of attributes and processes that create
non-generic buyer perception of the specific project. The time and
effort to do this will be well rewarded.
|
Creating Non-Generic Perception |
|
Attribute
Value Added
Image/Status
Reputation
Brand |
Factors to Achieve Desired Attributes
Quality and Desired Features
Prestigious Perception
Customer Service
Consistent Marketing |
It is recommended that a SWOT analysis be
initiated. Traditionally, four areas are analyzed in depth. Examples
for each follow:
-
Strengths:
access to property, quality team in place, strong track record.
(Particular expertise or niche.)
-
Weaknesses:
financial resources, personnel, strategic planning. (Lack of
experience, training, expertise.)
-
Opportunities:
market needs
-
Threats:
strong competition
Let us add one more to SWOT
This SWOTO analysis will allow the creation of a marketing
plan that works to help move sales or lease up of a property to a
faster pace and at a higher price than would be expected based on
typical price per square foot competition. It is important to
develop the SWOTO analysis as thoroughly as possible.
Converting buyers, real estate sales persons and lease negotiators
to have a non-generic perception of your projects and properties is
not easy nor is it for the faint of heart. But the payoff has
unlimited potential. Consider items that are priced and purchased
based on their non-generic perception: brand name cars, wines,
clothing, and of course enhanced value real estate.
Imagine your sales successes once your projects/services are
perceived as non-generic and price is, to a greater extent, taken
out of the equation. Wouldn’t any owner/developer or appraiser yearn
to be in that position?
Creating non-generic perception and marketing-oriented buyer
behavior can be a win-win for owners, developers and investors.
About the Author
Peter Berman has over a dozen years of experience in the
Construction, Development, and Inspection industries. As a
third-generation builder and project manager, he grew up in and
around the construction industry. In addition to managing The Ruby
Group, Pete is a frequent speaker and educator for a number of
organizations including the Journal of Light Construction and the
National Association of Homebuilders.
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