Tue 8 Apr 2008
Virtual Round Table
That does not mean it is square. Show House online will regularly feature discussion forums, inviting leading industry figures to debate the topical issues of the day. Remember to register to “Have Your Say”.WHEN THE GOING GETS TOUGH THE TOUGH GET MARKETING
The panel:
| Matt Fleming | chairman of property marketing, advertising and PR agency Aylesworth Fleming |
| Chris Crook | subsidiary managing director Countryside Properties |
| Philip Hogg | marketing director Miller Homes |
| Paul Vallone | managing director Berkeley Homes (Urban Living) |
| Tricia Topping | chief executive of property marketing specialists TTA |
At Aylesworth Fleming we have a simple but truly effective market barometer we call our "desperation factor". We monitor the key regional and national property carrying titles on a weekly basis and look at all of the developer ads which contain a proposition based on the quality of the product and location - these become a plus value; and those which have a proposition based on a deal or an incentive - these become a minus value.
The index went into the red last summer for the first time since 2002. Hardly scientific, but an extraordinarily accurate bellwether of the way the market is moving. It is a sad fact that the industry's general response to a market downturn is to hang the deal in front of the prospect in their press ads. Selling the dream goes out the window. And, more to the point, every piece of data and research I read suggests this simply doesn't work
Matt Fleming
It really depends on the sector you are in and marketing to. There is a marked difference between age-restricted, family low-rise, apartments and townhouses as distinct sectors with their own characteristics. They all have different drivers. The marketing response must surely recognise this. The deal is important, but that is only part of the offer.
Have we lost the "impulse" buyer of yesteryear? Is that to do with reduced kerb appeal? Less obvious, realisable benefits? Is that a result of the planning system? More emphasis on where and how we should live rather than let the market decide, thus diluting the new build premium?
Chris Crook
All the focus group research I have ever listened to suggests that the general public knows very little about housebuilders brands and struggles to differentiate between them.
They may recall the names of the big national players and often the names of a few regional brands. But when challenged they cannot describe much about these companies and do not really know what they stand for.
So the potential homebuyer has to make a buying decision based on the product they see (probably from a brochure) and the price/promotion presented to them. There is little or no 'brand premium'. Contrast this with the major car marques where the brand plays a big part in the decision-making process.
It is therefore no surprise that when things get tough the promotional element of the offer gets exaggerated. Not saying that I agree with it or like it, but sadly that is just the way it is.
Philip Hogg
This would be an interesting point to put to Charles Church for a response.
Chris Crook
Maybe. But here's an extract from their website talking about two of their developments that I randomly selected.
"Incentives available for early entry, including Part Exchange, Stamp Duty paid, fitted carpets and a £10,000 interior design package."
Stamp Duty paid OR 100% Part Exchange OR quality fitted carpets and turfed gardens.
Sounds familiar to me.
Philip Hogg
It is a real shame that when the public are being told of a downturn in the market by the general press headlines that we as an industry start to hammer in coffin nails in the form of "Discount Warehouse" type adverts.
I would have thought that the natural incentives of new developments such as design, efficiency, customer care, warranty, newness and sustainability credentials would be a good place to start as far as a differentiation statement was concerned.
Maybe we have three approaches to this within the industry. Those that offer the "Deal" as part of there normal everyday business, regardless of market conditions, Those that introduce the "Deal" when sales are scarce without looking at the wider impact. And those that do not get drawn into a development price war.
I'm sure there are merits in all three approaches. The deals will no doubt appeal to a certain sector of the market where their concern is more about the financial mechanics of the purchaser rather than the product. Accepting of course that they will assume that the product is up to a minimum standard anyway. Berkeley Homes has always taken the third option and sold on product, not price.
I suspect the three options will continue to prevail and that each developer will assume a position depending on their needs at the time and where they feel their brand sits in the market place.
I note the comments about the brand premium and have to say that I have also seen research that accords with this view. However, I will continue to promote the notion that certain brands do attract a higher price than some others.
Paul Vallone
My thoughts are about teamwork and training. The speakers at the London Residential Development Market Prospects Conference in March agreed that the residential and commercial property markets in the UK are undergoing a slowdown that could last well into 2009. Put simply, we are in a buyers/tenants market where the customer is king, has choices and needs selling to and convincing why property remains a good investment option.
With everyone in the property market competing to have their voices heard, this is where marketing and PR, in terms of media relations, branding, presentation advice and digital marketing, can provide a powerful tool, enabling the correct messages to be conveyed.
Professional speakers and trainers believe that people make up their minds about people they meet and places they visit for the first time within two minutes. Others say that these first impressions about people, buildings and locations take only 60 seconds to make.
However long it actually takes, at a time when the property market is undergoing a period of anxiety about the future I believe that the first impression formed of a property is even more vital. Training the people at the sharp end is paramount.
Creating a good first impression about property is where marketing and PR comes into its own and can provide a sophisticated multi-layered approach that gets the message across to buyers or tenants. All the marketing teams supporting the clients need to work together.
Tricia Topping
Posted by Show House
in Aylesworth Fleming, Berkeley Homes, Countryside Properties, Features, Miller Homes, TTA on Tue 8 Apr 2008
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