Marketing is more than creating demand and convincing to bring the right product and service to the attention of the right target group. It is “The truth well told”. It is about understanding deeper human needs and target groups. Unfortunately, the adage in the real estate world is still too often that buildings must be ‘market conform (read market uniform).
Use whole brain thinking
“You must first choose before you are chosen.”
It is wrongly believed that such a thing as a homogeneous market exists. However, the market-based user and therefore a market-based building does not exist. This is one of the reasons for the growing vacancy rate in the Netherlands.
In 2003 Atelier V initiated a national study into the segmentation of office-based organizations in order to achieve a better balance between supply and demand. This resulted in the seven Office styles.
The natural law that variety is necessary to survive as a species has been violated by market uniformity. In an abundant market, we see the flip side of the coin. Buildings that are virtually identical due to the ‘one size fits all’ approach, can only distinguish themselves by stunting with prices and giving away bait.
The users of those market-uniform buildings could also have done better. The motto for users is ‘to be able to choose, you must know what you want‘. While for project developers and investors, to be chosen you have to dare to choose a target group.
Balance ratio and emotion
The essence is that there must be a balance between the rational and emotional aspects. In addition to being functional, safe and healthy, a building must above all support the well-being of people. Not only ‘What is it doing?’ (rational) but also ‘What does it do to you?’ (emotional). What someone radiates is more important than what he says. What clothing is for a person that is a building for an organisation. A billboard or a building?
Right combination of marketing P's
Our approach is aimed at making buildings and environments distinctive and inspiring with an added value that meets the specific customer and market needs. The building is geared to both the rational and emotional needs of the target group. The starting point is that the user wants to (continue to) rent because it is appropriate and not because of the commitment to the lease. For this, we have developed the ATELIER V Real Estate Marketing Matrix®.
The Real Estate Marketing Matrix® is based on the basic model of marketing: the marketing mix or the 4 P’s of marketing: Price, Product, Promotion and Place (distribution). Years ago a 5th and 6th P was added to this: Persons and Positioning. Finally, we have included Politics as the last P for real estate. All this results in 7 real estate marketing P’s: Positioning, Promotion, Price, Product, People, Politics and Place. In the Real Estate Marketing Matrix®, the 7 P’s are set against the real estate product cycle.
The approach with the Real Estate Marketing Matrix® has two levels. The first level is the theoretical level, the marketing mix: thinking from the 7 Ps and the 8 phases of the product cycle. This forces an integrated approach per phase. Which blend of the 7 marketing ingredients is necessary to achieve the best marketing result? Because only with the right combination of numbers will the lock open to create value. This combination differs per phase and per project. The second level is the practical level: filling in the matrix with concrete choices and actions. At this level, the strength of this approach becomes clear.
The Real Estate Marketing Matrix® focuses on the opportunities and gives substance to marketing in the sense of ‘The truth well told’.