Developing for demand : an analysis of demand segmentation methods and real estate development

Marketing is commonly mistaken in the real estate development industry for the practice of advertising and sales. In reality, marketing is a set of concepts and methods created primarily in the consumer packaged goods industry that start with a focus on the consumer. Many of these concepts and methods can be used in the real estate development process to create more thoughtful and competitive projects. This thesis focuses on the marketing concept of demand segmentation and whether the real estate development process could be better served through a more defined focus on identifying specific consumers through demand segmentation techniques. Specifically, this thesis will answer the following questions: What is the existing structure for real estate market analysis? What is the concept of demand segmentation and how might it apply to real estate development? How has consumer segmentation specifically been applied in real estate development ventures? What are some important considerations to be aware of when developing real estate for a specific consumer segment? To answer these questions, this thesis reviews current thinking on demand segmentation through a review of relevant, marketing related literature for both the real estate and consumer packaged goods industries. This thesis also examines three subject developments that are examples of completed real estate development projects that serve the specific needs of a deliberately identified demand segments.