RE Marketing Unit 6

T or F: Agents convey messages to the public through channels of distribution.

True Channels of distribution describe how the message is distributed to the public. How agents communicate with their target market is best determined through research.

T or F: The findings of a research project should be summarized into a one-or two-page report.

True The one- or two-page report is for the agent's benefit and is generally seen by no one else. It should identify trends or opportunities in the market as well as the research problem.

All the following statements regarding finding and collecting data for a research project are false EXCEPT A) agents must only rely on secondary data because of the cost of primary data. B) the data must have come from other agents. C) the data must be relevant to solving the problem. D) the data must be substantial to have value.

C

Which statement regarding finding and collecting data for a research project is TRUE? A) The data must be substantial to have value. B) Agents must only rely upon secondary data because of the cost of primary data. C) The data must be relevant to solving the problem. D) The data must have come from other agents.

C

Being motivated to act is sometimes not enough. You may need a tube of toothpaste but can't decide which one. After all, aren't they all the same? To make a decision, you may need

an incentive to act

Data Analysis

takes raw, seemingly unrelated data from the market research phase and reorganizes it into meaningful groups of data from which conclusions may be drawn.

An agent that specializes in small 2.5 to 5 acre parcels in a rural area might define the owners of those properties as her

target market

Which of the following describes open market operations?

the purchase or sell of government securities

The purchase decision always involves

the reason for doing something

For the past several months newspapers have included articles on an increasing crime spree. A real estate agent in the community has started running ads and having open houses that feature security systems for every door and window. The agent has effectively used a current event by responding to the

the safety needs of prospects

After an agent pulls together the raw data and analyzes it, the agent prepares a one- or two- page report that identifies trends and opportunities in the market and specifically addresses the research problem. This report is called

the summary of findings

With the Maslow hierarchy in mind, and if we put aside the costs of the following items, which might prove to be the most difficult to market to tenants? A) A single family home B) A car to someone that doesn't own a car C) A digital camera to someone that doesn't own a digital camera D) A computer to someone that doesn't own a computer

A single family home

Which of the following reorganizes information so that conclusions may be drawn?

Analysis

Which of the following is TRUE? B) Data analysis and the interpretation of data helps reduce the uncertainty in the market. C) Organizing, assembling, and putting data to use is an easy task for most agents. D) Drawing conclusions from the data is summarized in a market watch report.

B

Agents may find themselves in a difficult negotiating position with some prospects. For instance, a prospect may need to sell their home. The agent represents a large firm in the area, yet the prospect doesn't want to list with the agency. When it's discovered why, it's because of a scandal concerning an agent that worked in the firm over two years earlier. The prospect is concerned about what their friends may think of their decision. What stage of Maslow's hierarchy is this prospect trying to satisfy?

Belongingness needs

Abraham Maslow's Hierarchy of Needs

Describes how some of our needs take priority over others in 5 stages Physiological (1) Safety Needs Social/Belongingness Self-Esteem Self-Actualization (5)

Which of the following agencies help the Fed manage the nation's money supply?

FOMC The Fed manages the growth of the nation's money supply through the Federal Open Market Committee (FOMC). By increasing or decreasing the amount of money in circulation, the FOMC can cause interest rates to rise or fall. Agents can monitor the actions of this committee to anticipate the direction of interest rates.

T or F: A sense of order is a physiological need that, when missing, creates a sense of discomfort in a prospect.

False A sense of order is a safety need, not a physiological need.

T or F: A summary of findings takes raw, seemingly unrelated data from the market research phase and reorganizes it into meaningful groups of data from which conclusions may be drawn.

False A summary of findings breaks down into a few sentences or paragraphs the limits of an agent's resources (time and money) and how best to take advantage of the opportunities around them. The definition in the question applies to data analysis.

T or F: The analysis and interpretation of the data material from a research project is never influenced by personal experiences of the agent and how their internal and external environment affects them.

False After the data is gathered, the agents' analysis and interpretation of the material may be influenced by personal experiences and how their internal and external environment affects them. The judgments and opinions drawn from the analysis are subject to reinterpretation because new data may result in different interpretations.

T or F: Marketing a home's primary benefit (shelter) will always draw a strong and positive response from prospects.

False Agents cannot market the home's main benefit (shelter) because that may not be enough to draw a response, as many in the market may have already satisfied that need.

T or F: Evaluating closed transactions is a form of secondary data collection.

False Closed transactions provide another form of primary data collection. By cross checking the buyer's former address to the geographic location of the properties purchased, agents may discover that people from one geographic area tend to purchase homes in a new community that have similar features.

T or F: While collecting data, the agent should judge the material for content and attempt to organize it as they go.

False Data is collected in no particular order. Some data may not be useful. Agents should not judge the data as they collect it, nor should they attempt to organize it at this point in the project.

T or F: The open market operations are a way of NOT allowing banks to loan a certain percentage of deposits.

False For every dollar that enters the banking system, a certain percentage is unavailable for loans. The percentage withheld is indicated by the reserve requirement.

T or F: Self-esteem needs are addressed when agents point out places of worship, entertainment areas, and schools.

False Professional real estate agents point out places of worship and entertainment areas because they address the basic social or belongingness needs of many people. Once addressed, it becomes a nonissue. However, if they are not pointed out, the customer may feel some anxiety or discomfort.

T or F: Primary data sources are the result of research studies done by the government or private enterprise.

False Secondary data sources are the result of research studies done by government or private enterprise. Secondary data is generally information that was put together by someone other than the agent.

T or F: The discount rate is the rate charged by member banks when they borrow from other banks.

False The discount rate is the interest rate charged to member banks when they borrow money directly from the Federal Reserve. When banks borrow from one another, the interest rate is called the Fed funds rate.

T or F: The first step in any research project is to gather and organize data.

False The first step in any research project is to define the problem. Once that has been done agents can begin gathering data that will help solve the problem.

T or F: Once a need on Maslow's Hierarchy is filled, the customer feels dejected.

False When a need has been satisfied, prospects are no longer motivated to do anything about them. For instance, we all have a need for food, however, we are not motivated to eat all the time.

To decrease the money supply, the Fed can

Raise reserve requirements. Increase the discount rate. Sell bonds in open market operations. the Fed offers investors a rate of return on government securities that is often higher than alternative cash investments To decrease the money supply, the Fed offers investors a rate of return, often higher than alternative cash returns, if they will loan money to the federal government. By doing so, domestic investors take money out of their thrifts and give it to Treasury, thus decreasing the supply of money available to the public.

Once the data is gathered, agents may do any number of things with it. Which of the following is the BEST approach?

Look at the purpose for the research project and organize the data in preparation for solving the problem.

Chamber of commerce studies and marketing journals are examples of

Secondary Data

Agents should show properties that might impress the prospects friends, or that save time for the prospect to volunteer for charitable activities, or that support the prospect's need for status if the prospect is trying to satisfy what level of need on Maslow's hierarchy?

Self-Esteem needs

Physiological Needs

Stage 1 food, water, air, shelter, clothing marketing strategy: promote openness, fresh air, watertight roof

Safety Needs

Stage 2 Security, guarantees, warranties, return policies, order and stability, insurance marketing strategy: Demonstrate smoke detectors, warranty plans, security systems, deadbolts, owning their own home, and well-maintained property.

Social/Belongingness

Stage 3 Acceptance by family and friends; belongs to groups and clubs and conforms to the standards of others marketing strategy: Point out places of worship, entertainment areas, golf courses and country clubs, and schools in the community.

self-esteem needs

Stage 4 Prestige, sense of self-worth, success, accomplishment marketing strategy: Wants to help others as well as impress others; very status oriented. Properties should reflect these goals; must look good.

Self-actualization needs

Stage 5 Self-fulfillment; a feeling that you are doing what you were meant to do, using your talents to their fullest marketing strategy: Enjoys sports, education, cultural events, cooking, and other hobbies. Property selections should inspire these activities.

Which of the following committees can agents monitor when trying to anticipate the direction of consumer interest rates?

The federal open market committee

Suppose you deposit $1,000 in your bank. However, the bank can only loan out $720 due to

The federal reserve requirement

Which of the following best describes someone in Stage 4 of Maslow's hierarchy (self-esteem needs)?

Those that believe they are worthy of success and are driven by their need to succeed, getting things done, standing out, and liking to be noticed

summary of findings

Through this process, agents may segment the total market into more manageable groups, learn what they do for a living, how they fill their leisure time, how much they earn, how much they can spend on housing, how best to communicate with them, what motivates them, and how they respond to marketing stimuli. may identify what agents are currently doing and compare those results to the needs of each group. identifies how agents satisfy each target market's service needs and compares that to competitors. A summary also analyzes the weaknesses of competitors and finds ways to take advantage of them. Using their analysis, agents draw conclusions and form opinions about their markets.

T or F: Research projects must start with a clear purpose.

True A research project must start with a clear definition of what the agent is trying to accomplish so that the steps needed to reach the stated goal can be established.

T or F: The Fed manages the growth of the nation's money supply through the Federal Open Market Committee.

True Agents should monitor the actions of the FOMC when trying to anticipate the direction of interest rates. The Fed manages the growth of the money supply through the FOMC.

T or F: Prioritizing the most important issues of the year, month, week, or day involves the establishment of long-term and short-term personal and professional goals. This is a part of the time management process.

True Agents who use time management effectively prioritize tasks and employ their skills, experience, and education to complete long-term and short-term personal and professional goals.

T or F: The central banking authority for the United States is the Federal Reserve.

True Almost every country has a central banking authority. The Federal Reserve regulates the banking system in the United States.

T or F: The Federal Reserve can use the reserve requirements to expand or contract the money supply, but the reserve requirements don't change that often.

True Although the Federal Reserve has several tools at its disposal to expand or contract the economy, the reserve requirements are not changed that often. The Fed more often than not depends more on its open market operations and the discount rate.

T or F: Discovering what motivates people helps agents develop a properly balanced marketing mix.

True Discovering the motivations of the prospects is a crucial part of the process of drawing conclusions from research data and the interview. At the same time, it is what helps agents develop a properly balanced marketing mix that is attractive to the target market.

T or F: When agents discuss a home warranty plan or go over the transfer paperwork, they are addressing safety needs.

True During the sales process, when agents demonstrate smoke detectors or explain the benefits of home warranty plans or the transfer paperwork, they are addressing the safety needs of most prospects.

T or F: Market research helps identify opportunities that appeal to the largest segments in the marketplace.

True Market research helps identify opportunities that appeal to the largest segments of the market. Through market research agents gain a better understanding of the profit potential of the market by concentrating their efforts on one or multiple target markets.

T or F: Market research is a time management activity.

True Market research is another time management activity when it is combined with an analysis of the data gathered and draws conclusions from that data.

T or F: Motivation is the reason for doing things.

True Motivation is what makes us get up and do things. Motivation gives us the reason to accomplish our goals. It is the hot button that, once discovered, provides the agent with the information needed to help the prospect take action.

T or F: Prospects discover their needs when they feel discomfort.

True Part of the salesperson's job is to discover what activates the reasons for prospects to satisfy their needs. Prospects discover their needs when a state of discomfort occurs. Sometimes incentives are needed to help prospects follow a certain course of action.

T or F: People have a need to brush their teeth, however having a need is not necessarily a motive for action.

True People have a need to brush their teeth, but this need doesn't mean they must brush their teeth every minute of the day. However, after eating, people might be motivated to brush their teeth to restore a clean, fresh feeling. The reason or motive to brush their teeth wasn't because of the "need" but because they wanted a clean, fresh feeling in their mouth.

T or F: Primary data is collected by the agent and used for a specific purpose.

True Primary data collection is time consuming and generally expensive when done by market research professionals. However, agents can do primary data collection by using mail surveys, observational studies, reviewing closed escrows, and other methods that have a reasonable cost to them.

T or F: By grouping the total population into multiple segments, organized by demographics and other commonalities, agents can identify the types of property those segments will most likely buy, even before listing them.

True Research helps agents segment the market. By grouping the total population into multiple segments, organized by demographics and other commonalities, agents can identify the types of property those segments will most likely buy, even before listing them. Segmenting the market is not used to move segments of the market into specific neighborhoods, but to help agents list homes in diverse areas as well as discover ways to market existing and new listings to multiple segments of the market.

T or F: An interpretation of market research data helps reduce the uncertainty in the market.

True The interpretation of the data helps reduce the uncertainty in the market. It identifies the problems faced by the target market and the most acceptable solutions, such as the best forms of financing, benefits desired, and pricing models for the groups that agents are trying to attract.

T or F: The conclusions drawn from the data analysis may not be correct. It can easily be regarded as subjective until the conclusion is proven true or false.

True The process of data analysis isn't complete until agents develop some theories about what motivates the market segments. The opinions drawn from the analysis are logical conclusions based on facts, but the conclusions drawn may not be correct.

Market research is a more formal way of identifying large segments of the market that have similar commonalities. The large segments are referred to as

a target market

All the following statements regarding referrals are usually true EXCEPT A) they may frequent the same church, grocery stores, and schools as those who referred them. B) more often than not, the referrals are from out of the area. C) they often have similar interests to those who referred them. D) they often have similar income to those who referred them.

b

Market research is a data-gathering process that eventually leads to making marketing decisions. Which of the following steps in market research definitively states a course of action?

conclusions

When based on the data gathered during market research, a customer analysis

gives agents the tools to attract the target market.

What tools can real estate marketers use to create a preference for one action over another?

incentives

Someone that is self-actualized

is inspired by vacation properties, their hobbies, and presentations made in museums.

__________ provide the reason prospects do things.

motives

If the Federal Reserve wants to nudge an economy out of recession, it may attempt to expand the money supply by buying back government securities, such as Treasury bills, bonds, and notes. It does this through its

open market operations

When a prospect asks if the roof leaks they are addressing

physiological need

Fresh air, clean drinking water, clothing, and shelter describe

physiological needs

When agents review closed transactions and cross-check every buyer's former address to the geographic location of the properties purchased and discover that people from one geographic area tend to purchase in a similar price range or neighborhood, this is an example of

primary data collection

Questions such as what are the needs of the largest target market or what motivates the target market to action may be considered

research problems

Which of the following needs are affected by a home that appears cluttered or poorly organized?

safety needs

The source of information doesn't really matter to agents. However, data that is available to the public in one form or another and is generally free is known as

secondary data

An overheated economy occurs when the

supply of goods and services cannot keep up with the demand.

Occasionally, an agent might need an aspirin because she has a headache. At the store she notices two brands of aspirin. One brand has 50 pills, each pill containing 325mg of aspirin. The other brand contains the same number of pills at 325mg per aspirin. However, there was a two- for-one sale on the second aspirin brand, which is what the agent purchased. Which of the following is the incentive?

the two for one sale

Why do agents select the largest segments of the target market?

they are the easiest to find and attract

A newly licensed real estate agent determined that one way to start working in the industry is to do a market research study that exposes the largest segment of the total market and the need for multifamily housing within that segment. She takes the time to find and gather the data. Her next step is

to group the information and develop some form of usable classifications.