Mass marketing versus niche marketing in real estate

Abstract

In marketing, marketers attempt to determine the needs and wants of the target markets and deliver the desired satisfaction more effectively and efficiently than the competitors. It has been argued by researchers that this concept is better suited to niche marketing than mass marketing as niche marketing focuses on meeting the needs of the customers to a greater extent than mass marketing. Very little research has been carried out on the effects of mass and niche marketing in real estate. This dissertation seeks to examine in detail the concepts of mass and niche marketing in the real estate context. In particular, the objectives of the research are to determine the attributes which are considered important in mass and niche marketing, and their effectiveness when selling different kinds of residential properties. Based on literature review, some 24 attributes were found to have an impact on marketing. These attributes were incorporated in a questionnaire survey. Some 300 respondents were surveyed. The results confirm many of our expectations. Mass marketing is found to be more effective in marketing HDB flats and mass condominiums, whereas niche marketing is more effective in marketing special and unique properties like the high-end condominiums, lifestyle theme condominiums and landed properties. In addition, the finding of the study has shown that there is cost reduction for developers using niche marketing. The study has provided useful applications in real estate marketing. Developers and marketing team will benefit from the results of the study with regard to the effectiveness of these marketing techniques and when they should be used.