Investment in marketing strategies by builders and developers has
increased considerably in recent times. Giving a perspective about the
scenario, Suneil Chawla, co-founder of Social Beat, a digital marketing
agency based out of Chennai says, “From being a fringe player with less
than 5 per cent of marketing budget to over 30 per cent currently,
digital marketing has gained the attention of the developer community
who are maximizing their reach and sales through it.” Not just the
digital mode, every other category has seen a significant rise in
investment by promoters.
But do these marketing strategies influence the decision of a person who is looking to buy his/her home? In a way, yes! These strategies impact the search process, evaluation of available options and finally the purchase decision of a buyer. For instance, have you recently come across a subvention scheme buy any builder or an offer giving out free gold coins or a car with an apartment? Did you find them lucrative? According to Rajesh Kumar of RJ Estate, a brokerage firm, “Even though the real estate market is slow, most of the transactions happening are mainly because of such schemes. Buyers today are level-headed and very selective in what they are putting their money into. However, these schemes are a success almost all the time. It is because it is a win-win situation for both the parties.”
Such marketing strategies also narrow down the buyer’s search. For instance, if you have Rs 60 lakh and you are looking for an apartment in your city, would you be interested in checking all the properties that are available? Probably no! “Most of the clients we receive are most interested in properties offered by ‘reputed developers’. Now, these reputed developers are none other than those who have created a brand out of themselves and have invested a lot in marketing. These are the ones who catch the eye of the buyer,” says Kumar. But this does not mean that other properties do not sell, they do but the proportion is less.
Such schemes are not just branding gimmicks but are carried out to clear unsold inventory, especially in a stagnant market. “Real estate builders have seen significant sales from their digital marketing efforts. On an average, about 5 per cent of the leads get converted into sales. When the market is slow, digital marketing strategies actually have a higher reach and return on investment (ROI), as consumers hardly respond to traditional channels like Print ads,” says Suneil Chawla of Social Beat.
A lot of research and thought process goes behind these strategies; how is the market performing, what are the buyer’s sentiment, current home loan rates, stability of the state and central government, etc. “It is a joint process of working with the developer to reflect the true values of the brand/company and reach out to consumers with the offering. We also need to understand the customer mind-set and tailor the communication accordingly,” says Chawla. The biggest expectation out of such strategies is to establish a ‘connect’ with the consumer and build genuine trust in the brand.
But are these strategies helpful to homebuyers in anyway? “Absolutely,” says Chawla, “The very nature of digital and social web ensures that (1) Builders are more transparent about payment schedules, floor plans, etc. (2) Listen and actively respond to consumers/buyers for any demands and complaints.” In addition to this, buyers get lucrative offers and some leverage in the negotiation process.
In a way these marketing strategies seem to benefit homebuyers in their quest to find the perfect home. These strategies not only narrow down the search but also helps to find the best possible deal.
Source : http://www.99acres.com/articles/does-marketing-influence-a-homebuyers-decision.html
But do these marketing strategies influence the decision of a person who is looking to buy his/her home? In a way, yes! These strategies impact the search process, evaluation of available options and finally the purchase decision of a buyer. For instance, have you recently come across a subvention scheme buy any builder or an offer giving out free gold coins or a car with an apartment? Did you find them lucrative? According to Rajesh Kumar of RJ Estate, a brokerage firm, “Even though the real estate market is slow, most of the transactions happening are mainly because of such schemes. Buyers today are level-headed and very selective in what they are putting their money into. However, these schemes are a success almost all the time. It is because it is a win-win situation for both the parties.”
Such marketing strategies also narrow down the buyer’s search. For instance, if you have Rs 60 lakh and you are looking for an apartment in your city, would you be interested in checking all the properties that are available? Probably no! “Most of the clients we receive are most interested in properties offered by ‘reputed developers’. Now, these reputed developers are none other than those who have created a brand out of themselves and have invested a lot in marketing. These are the ones who catch the eye of the buyer,” says Kumar. But this does not mean that other properties do not sell, they do but the proportion is less.
Such schemes are not just branding gimmicks but are carried out to clear unsold inventory, especially in a stagnant market. “Real estate builders have seen significant sales from their digital marketing efforts. On an average, about 5 per cent of the leads get converted into sales. When the market is slow, digital marketing strategies actually have a higher reach and return on investment (ROI), as consumers hardly respond to traditional channels like Print ads,” says Suneil Chawla of Social Beat.
A lot of research and thought process goes behind these strategies; how is the market performing, what are the buyer’s sentiment, current home loan rates, stability of the state and central government, etc. “It is a joint process of working with the developer to reflect the true values of the brand/company and reach out to consumers with the offering. We also need to understand the customer mind-set and tailor the communication accordingly,” says Chawla. The biggest expectation out of such strategies is to establish a ‘connect’ with the consumer and build genuine trust in the brand.
But are these strategies helpful to homebuyers in anyway? “Absolutely,” says Chawla, “The very nature of digital and social web ensures that (1) Builders are more transparent about payment schedules, floor plans, etc. (2) Listen and actively respond to consumers/buyers for any demands and complaints.” In addition to this, buyers get lucrative offers and some leverage in the negotiation process.
In a way these marketing strategies seem to benefit homebuyers in their quest to find the perfect home. These strategies not only narrow down the search but also helps to find the best possible deal.
Source : http://www.99acres.com/articles/does-marketing-influence-a-homebuyers-decision.html
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