Author: Assistant Professor Dr. Wuthapong Lapjaroen

Chair of the Master of Science Program in Innovative Real Estate Development

Faculty of Architecture and Planning, Thammasat University

The term Product Positioning is often misunderstood as the physical location of a residential project, which is incorrect. The actual term for the location of a residential project is 'site' or, in English, 'Location.'

The true meaning of Product Positioning refers to defining the image of the product in the minds of consumers, or simply put, the product's selling point (Unique Selling Proposition or USP).

Product positioning or defining the product's selling point is crucial for marketing because a good product positioning reflects the essence associated with that product. It also explains why consumers choose to buy the product (Why does the consumer buy?). Furthermore, effective product positioning must differentiate from competitors (Differentiating from Competitors). If a company's product does not stand out from competitors, it risks becoming a commodity—products that are indistinguishable in the eyes of consumers. In simple terms, consumers might choose any brand, and ultimately, the decision will come down to price.

However, it is essential that once real estate developers have established a position, they must communicate this to consumers. This means that every time there is advertising or public relations, the project's selling points must be communicated. Marketing should not keep pride to itself or operate behind the scenes. Additionally, it must convince consumers that the project genuinely has the selling points claimed.

For example, a residential condominium project has positioned itself with the selling point of being 'Alive.' This project includes a well-known convenience store and facilities such as a gym that operates 24 hours to reflect the selling point of being 'Alive.'

If a project has defined its product positioning or selling point but fails to deliver on it, it leads to issues such as overpromising and underdelivering (Overpromise underdeliver) or Over-positioning. In an era of advanced technology, consumers have their own media, allowing them to communicate independently (Consumer Generated Content) or engage in One to Many communication, which can quickly damage a brand's reputation. Therefore, good product positioning must be a selling point that the company can deliver (Deliverable by the Company).

Another example is a Super Luxury condominium project located on Wireless Road, which has positioned itself as a freehold project, whereas most land in that area is leasehold. This means that buyers of the condominium can obtain ownership of the unit. Additionally, the project offers other selling points, such as 24-hour international concierge services and valet parking.

From the examples of the condominium projects above, real estate developers must ensure that the product positioning or selling points are desirable to consumers. This means that the selling points must resonate with consumers, which is the essence of STP Marketing. Developers must first segment the market (Market Segmentation), then select or define the target customer group (Targeting), and finally position the product (Product Positioning). Thus, the product positioning depends on the target customer group defined by the project. For instance, if the target market is lower-middle class, offering international concierge services and valet parking may not be what consumers desire.

Regarding product positioning strategies, one should not base the positioning on points of parity, such as stating that a residential project has 24-hour security, as most projects already have this feature. Instead, effective product positioning should be based on points of difference, which must also be something consumers want, such as a touchless system in a residential project. At the same time, the points of difference of competitors should be transformed into points of parity.

Nevertheless, one unique characteristic of real estate is the uniqueness of its location, which makes it difficult for competitors to replicate. For example, a residential project may have a selling point regarding the convenience of transportation, being located right at a BTS station (0 meters away). Additionally, the project is situated next to two major roads: Ramkhamhaeng and Hua Mak. However, in the author's opinion, this selling point may not be suitable for high-end customers, as having a BTS station in front of the project could lead to congestion and a loss of privacy.

From the discussion on STP Marketing over the past three parts, it is clear that we should move away from the era of having a product and then asking how to strategize marketing (4Ps). Instead, we should start with STP Marketing and then define the strategy (4Ps). If a business does not know its target customer group or even its own product's selling point, it will be challenging to establish a marketing strategy. Importantly, marketing is a dynamic field (Static), meaning marketing strategies can change at any time.

The content related to marketing for real estate is part of the curriculum for the Master of Science in Innovative Real Estate Development (MIRED) program at the Faculty of Architecture and Planning, Thammasat University (Master's Degree Program), taught by qualified faculty members. Classes are held only on Saturdays at the Rangsit Center, offering 36 credits. For more details, please contact MIRED Hotline at 08-1549-3333, available 24 hours, or [email protected].