The sale of one of the most expensive products: how do they do it

Abstract

Purpose: This graduation research has the purpose explore the use of marketing in real estate development projects in the residential sector, based on the characteristics of marketing on corporate level, project level and the end-user. Research question: What are the characteristics of marketing in project development, focussed on the corporate level, project level and the end-user and how are they related?Research design/method/approach: To gain insight on the relation between marketing and real estate development, a multiple case study is conducted. Three project development companies are studied by means of one representative case and one extreme case. Furthermore, the marketing managers are studied to provide insights in the role of marketing on the corporate level. By means of literature review, document analysis and cross case analysis, theoretical and empirical findings are conducted. These findings are compared and have led to the characteristics of marketing in project development. Findings: The graduation research has resulted in a set of characteristics, based on the corporate level, project level and the end-user. Results are; the position of marketing in the business organisation is becoming increasingly important and is indicated that marketing is not part of the competences of a project developer and many of the marketing tasks are based on experience and knowledge and involve external parties. Therefore, extern experts, such as publicity agencies and brokers, are involved in the development process. The marketing of a house is partly based on the promotion of an experience, in which the brand and the look & feel are both very important. Registrations of potential clients are important, since they provide a lot of information. Therefore, marketing campaigns are used. If the response is too low, the marketing campaigns are upscaled. The marketing communication starts with a website and a Facebook page and have regular communication tools. Marketing of complex housing projects provide more time and effort than standardized housing projects. The relation between the three different levels depends on the type of project and its context and the vision of the project development company. Limitations: The graduation process should be fulfilled in a time-frame of approximately nine months, which means choices need to be made about the demarcation of this research. Therefore, six case studies on real estate development projects and three case studies on marketing managers have been conducted. Tringulation is used to increase the validity of the findings of the case studies. Practical implications: A company’s success is often related to its marketing capabilities, however In Dutch real estate development practice marketing is an underexposed topic. Research on this relation might provide project developers with more insight and reflection on their working methods and it will cover a part of Dutch real estate development that has not been extensive executed yet. Originality/value: The relation between marketing and real estate development has not been described before. This research offers a perspective on the use of marketing by project developers in the Dutch residential sector.Key words: Marketing, Dutch residential sector, real estate development practice, marketing communication tools, end-user, corporate level