Not Enough Science in Marketing High Rises
If only the real estate industry was more like a science lab.
Science Buddies explain that scientists try to figure out how the natural world works. In doing so, they use experiments to search for cause and effect relationships. Cause and effect relationships explain why things happen and allow you to reliably predict what will happen if you do something. In other words, scientists design an experiment so that they can observe or measure if changes to one thing cause something else to vary in a repeatable way.
The things that change in an experiment are variables. An experiment usually has three kinds of variables: independent, dependent, and controlled.
The independent variable is the one that is changed by the scientist. Why just one? Well, if you changed more than one variable it would be hard to figure out which change is causing what you observe.
The dependent variables are things scientists focus observations on to see how they respond to the change made to the independent variable. This is what we are observing and measuring. It is called the “dependent” variable because we are trying to figure out whether its value depends on the value of the independent variable. If there is a direct link between the two types of variables (independent and dependent) then you may be uncovering a cause and effect relationship.
Experiments also have controlled variables. Controlled variables are quantities scientists want to remain constant, and she must observe them as carefully as the dependent variables.
Year after Key has outperformed its competition when going head to head; often in the same neighbourhoods. Even if the neighbourhood is the same, the micro location is different and so is the developer and product. How do you compare project marketing companies with so many independent variables?
Tate was a unique project as three of the top four marketing firms in BC worked on it; making Tate the controlled variable. It offers a rare opportunity to compare these three companies, their work and results on the same project.
Rennie was first. They’ve got a system for swinging for the fences on projects that involves 2%+ ad budgets. They worked on the project for years including the brand and positioning.
Next was Magnum. They spent $400K on ads, attracted 150 REALTORS® to an event and sold 19/333 homes in a month before Key was asked to take over. The developer was unhappy with the sales result but more importantly found the lack of transparency unsuitable. Specifically, the developer had to conduct their own market research to know what was going on in the market.
Key put a mostly new team of consultants in place, reworked the project’s positioning, web site, brochure and other marketing assets, met with construction lenders to share plans and leveraged its REALTOR® relationships to attract 254 REALTORS® to a second event a month later. Key got sales up to 126 homes in about that many days while spending less than $100K on ads.
We love science!
~ Cam Good