News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
How Builders Market Backward
Teresa Burney / BUILDER / May 15, 2013
A lot of home builders and developers have been doing things backward when they create their communities and design new homes, two marketing veterans told a large audience of builders and developers at Hanley Wood’s Housing Leadership Summit on Tuesday.
Instead of asking themselves where or what they should build, the presenters told the audience of builders that they should figure out who they are building for and then work from there to the where and what.
Michelle M. Mace, principal of M3B Inc., whose specialty is helping builders define exactly who their targeted buyers are by looking at psychographic segmentation of buyer traits, explained that a plethora of information about people’s buying habits and preferences is available from The Nielson Company and other data organizations, allowing builders to establish a laser-like focus on their home buying target audience.
“They need to understand the segments [of buyers] they own,” said Mace.
Developers need to be alchemists, she emphasized, making sure that the builders they bring into their communities are targeting and creating the right products for the buyers the community will attract.
Mace suggested that builders should also get to know very specifically who a development’s buyer market is. Builders and developers need to figure out the “story” of the development to help zero-in on what type of buyer would be attracted to a given project.