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LESSON EIGHT: MARKETING VS. ADVERTISING
Marketing real property involves more than placing an ad in the paper. Real estate brokerage
research indicates that many brokers spend too much money on classified advertising.
I.
Every brokerage requires an Internet policy. Company marketing operations on the
internet inexpensively present all company listings and rentals to anyone anywhere.
Virtual reality presentations allow a customer or client to thoroughly examine homes and
their amenities either online or saved on a hard drive. The following are policy
suggestions:
A.
II.
No agent may publish, or cause to be published, any marketing material on the
Internet without management approval.
1.
Agents must be mindful of Truth-in-Lending requirements and advertise
no partial terms.
2.
All advertising rules and regulations of the LREC apply to Internet
advertising.
B.
Personal information managers (PIM) assist the Internet marking process.
C.
The new marketing model is no longer reliant upon convention marketing
methods.
Newspaper advertising no longer requires the largest percentage of the advertising
budget. Rate increases have been excessive in most parts of the state and classified and
display advertising has become prohibitive in many Louisiana market areas.
A.
Research indicates that prospects are effectively generated using less expensive
resources. Newspaper advertising budgets have been reduced.
B.
Institutional advertising is replacing the shopping list classified ad. Classified
advertising might be part of a marketing campaign. Other marketing vehicles are
as successful and less expensive.
C.
Clients should not be promised listings will appear in a newspaper advertisement.
Agents should explain the company's marketing program during the listing
presentation. Unrealistic expectations may be eliminated in advance.
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All rights reserved.
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III.
According to a study conducted by a national real estate brokerage corporation, more than
35% of all calls are generated by yard signs.
Graphic designers indicate that signs should be clearly lettered and contain as few
words as possible. Prospects frequently call the agent whose name is listed on the
sign rider.
IV.
Part of the marketing process includes placing the property on the office caravan
schedule. The client is impressed with a large turnout.
A.
All associates, and the manager, should caravan every new listing.
B.
Comments on listing price and condition of the property should be returned to the
listing agent.
V.
Neighbors should be contacted and the area farmed. Existing neighbors may be interested
or know someone who is. Successful listers contact neighbors within 72 hours after the
listing is accepted.
VI.
Agents in the local Multiple Listing Service (MLS) should be informed of the listing if
your company is a member. Some associates specialize in farming other associates.
A.
In addition to placing listing in the computer, some successful agents print
information sheets for agents. They also encourage agents from other companies
to preview the listing.
B.
Successful agents agree that it is more important to get a listing sold than it is to
sell it. Familiarizing other agents with the listing makes it easier for them to sell.
VII.
Communication with the client is part of the marketing process. Top listers agree that
clients should be contacted on a weekly basis, regardless of the activity on the property.
Follow-up is essential to the marketing effort.
VIII.
The open house can be an effective marketing technique. Visitors infrequently purchase
the open house inspected. The client should be informed. It is an effective method of
obtaining prospects. Sellers should be reminded to safeguard prescription drugs and other
valuables.
A.
Proper security should be encouraged at all times. Many agents conduct open
houses in pairs. Telephone contact should occur at regular intervals, according to
law enforcement experts. The client should not be at home. Valuable items and
prescription drugs should be stowed. Some agents allow only one set of prospects
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to be in the house at a time.
B.
IX.
X.
The house should be clean and odor free. Pets should be secured off site, if
possible.
Newsletters are used by many associates to farm a geographic area. Benefits include a
controlled target area that may be regularly developed.
A.
Newsletters frequently contain recipes, neighborhood news, comparable sales data
and helpful hints. A market analysis certificate can be easily printed in the
newsletter.
B.
If used as a mailing to all households in a specific area, the client of another
broker might receive the material. An appropriate disclosure statement should be
included.
Computer technology provides the option of adding a marketing department to a
brokerage of any size.
A.
Data base management programs allow a licensee to accumulate large, detailed
lists of many groups of prospects.
1.
When coupled with a modem, these programs can search through Multiple
Listing Service (MLS) records, tax rolls and research data bases.
2.
Word processing programs interact with the data base management
programs in order to allow automatic sorting by any desired trait, and
merging that list with a word processing program which prepares
individualized letters. Envelopes or labels can also be prepared.
B.
Graphic printing programs are available at low cost which format newsletters,
prepare banners for open houses, compose thank you notes and greeting cards, and
prepare customized market analysis certificates.
C.
Marketing expenses can be accurately tracked and graphed using graphing and
spreadsheet programs.
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D.
XI
Most of these programs are fully integrated. This means that a user can choose
features from any of the software programs. Effects can be combined for a more
effective and individual marketing campaign.
The marketing campaign includes a combination of many tools. The impact of combining
methods is frequently more effective than using a single tool to the exclusion of all
others. Marketing is expensive. Results should be measured and contrasted against
expenses.
Copyright © 2000 LREC
All rights reserved.
MGT10b00
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