Download Marketing - National Apartment Association

Introductions
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Your name
Where you work
Your job responsibilities
How long you have been in the industry
What you hope to get from this class
Course 5: Marketing
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Agenda
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Introduction to Marketing
Conducting Market Analysis
Marketing Plan
Fair Housing in Marketing and Advertising
Promotional Marketing
Course 5: Marketing
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Introduction to Marketing
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The Property Manager’s Role
Understanding your Market
Factors impacting apartment markets
Marketing Mix
Marketing Success Factors
Course 5: Marketing Chapter 1
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Marketing: Definition
Integrated and coordinated
activities, such as research and
promotion, which focus inside and
outside the community, to
encourage recipients to rent or
continue renting an apartment.
Course 5: Marketing Chapter 1
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Why Do Marketing?
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To realize optimum value of a property
To meet financial goals
To achieve and maintain occupancy levels
To understand resident wants and needs
Course 5: Marketing Chapter 1
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Community Manager Responsibility
• Prepare and implement market plan
• Price and analyze marketing and
advertising materials
• Identify present and future markets
• Measure and monitor marketing efforts
• Educate and involve onsite personnel in
marketing efforts
Course 5: Marketing Chapter 1
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What is Your Market?
All current and potential residents who want
to live in the apartment community and
who are qualified to live there.
Course 5: Marketing Chapter 1
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Market Segmentation
• Designed to reach a specific, smaller group,
or target market, within the identified market
• Classified according to characteristics such
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Geography
Demographics
Lifestyle
Product benefits
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Market Segmentation: Benefits
• Allows for tailoring of marketing efforts
• Provides insight into how to reach the
customer through advertising and
promotion
• Allows companies to maximize resources while
increasing likelihood of success
Course 5: Marketing Chapter 1
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Factors Impacting Apartment Markets
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Location
Demographic characteristics
Unit size and layout
Price
Physical
Economic
Governmental
Social
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Marketing Mix: Definition
Controllable variables the company
blends to produce the desired market
response.
Course 5: Marketing Chapter 1
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Marketing Mix: 5 Ps
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Product
Price
Promotion
Place
People
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Product
• Product or services offered (apartments
and community)
• Brand identity and logo
• Evaluated and marketed by:
– Reliability
– Quality
– Features
Course 5: Marketing Chapter 1
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Price
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Monthly rent
Fees
Deposits
Utility expenses
Premium charges
Price is influenced by:
– Location
– Interior upgrades
Course 5: Marketing Chapter 1
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Promotion
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Advertising
Public relations
Sales promotion
Relationship selling
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Place
• Distribution channel or method for making
your product available
• Define and market your property’s:
– Physical location
– Relative location
– Comparative location
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People
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Onsite personnel
Management team
Contract workers
Marketing partners and vendors
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Marketing Success Factors
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Visionary
Goal oriented
Customer-focused
Team oriented
Communicated effectively
Consistent
Repetitive
Adaptable to change
Monitored and regularly evaluated
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Skill Check #1
Chapter 1 – Introduction to Marketing
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Chapter 2:
Conducting a Market Analysis
Course 5: Marketing Chapter 1
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Conducting Market Analysis
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Market Analysis Basics
Regional and Neighborhood Analysis
Analyzing the Property and Its Location
Analyzing the Resident Population
Analyzing Competitors
Market Analysis Plan
Course 5: Marketing Chapter 2
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Market Analysis: Definition
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A formal approach to collection,
analysis, interpretation and reporting
of information for making rational
marketing decisions
An ongoing process to understand
customers, competitors and the
industry
Course 5: Marketing Chapter 2
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When to do Market Analysis
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New construction
Rent increases
Annual budget preparation
Resident retention rate decreases
Unmet occupancy goals
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Benefits of Market Analysis
• Effectively target market/advertising campaigns
• Identify opportunities in marketplace
• Evaluate and establish rent levels and fee
policies
• Monitor what you are doing well and where to
improve
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Benefits of Market Analysis (cont’d)
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Generate, refine and evaluate marketing efforts
Identify customer specific needs
Evaluate your success with measurable data
Communicate the market analysis findings and
their implications
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3 Elements of a Market Analysis
• Regional analysis
• Neighborhood analysis
• Property analysis
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Elements of a Regional Analysis
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Economic conditions
Recreational/entertainment venues
Government structure
Educational institutions
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Elements of a Neighborhood
Analysis
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Boundary definition
Population characteristics and trends
Economic conditions
Property types
Amenity and educational opportunities
Crime activity
Others…
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Property and Location Analysis
• Perform to identify opportunities and key
issues relating to the property and its
location such as:
– Whether features and benefits are being fully
exploited
– How new trends impact the property
– How residents view quality and reliability
• Allows for proactive marketing efforts
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How to do a Property and Location
Analysis
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Collect data on properties features and location
Gather and examine property reports and
documentation
List negative aspects that affect sales
Describe plans for future expansion
Compare results of research with existing marketing
efforts
Decide how to improve on marketing to take
advantage of property’s features and location
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Resident Analysis
• Contains information on resident’s:
– Satisfaction with service levels
– Needs and wants
– Demographic information
• Helps identify:
– People who fit current resident profile
– Potential residents if repositioning
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Resident Analysis (cont’d)
• Provides:
– Potential rent levels
– Occupational targets
– Recommended amenity changes
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How to do a Resident Analysis
1. Conduct resident survey
2. Examine property reports and
documentation about prior and current
residents
3. Describe target market: the
characteristics of the consumer to whom
you want to focus your marketing efforts.
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Competitor Analysis
• Includes information about other
communities that compete with yours
• Gives you an understanding of
competitor’s:
– Product
– Services
– Marketing strategies
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Competitor Analysis (cont’d)
• Helps you to:
• Identify your competitive advantage
• Identify areas of missed opportunity
• Make innovative improvements
• Identify categories of customers whose
needs are not being met
• Learn more about your market
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How to do a Competitor Analysis
1. Collect information about competitors
2. Gather and examine reports and
documents pertaining to competitors
3. Determine improvements you can make
to product, services, and marketing
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Market Analysis Plan
• Describes how you will conduct your market
analysis
• Contains:
– Objectives of the plan
– Description of how you will identify marketing
problems and opportunities
– Description of how you will collect data
– Description of how you are going to analyze results of
research
– A detailed timeline for completion
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Activity #1
Market Analysis
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Skill Check #2
Chapter 2 – Conducting Marketing
Analysis
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Chapter 3
The Marketing Plan
Course 5: Marketing Chapter 1
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Marketing Plan
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Marketing Plan Basics
Marketing Plan Development
Internal Market Readiness
Writing the Marketing Plan
Applying the SWOT Analysis
Marketing Objectives and Strategies
Marketing Plan Budget
Measuring the Success of Marketing Efforts
Guidelines for use and Evaluation of Marketing
Course 5: Marketing Chapter 3
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Marketing Plan: Definition
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Detailed, written account and time table of the
objectives and methods to be used to achieve
the property’s marketing goals.
Create when there is:
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Critical need – new ownership
Repositioning – significant physical changes
Problem solving – media issues
Sustaining plan - ongoing
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Marketing Plan: Purpose
• Develop, guide, and coordinate marketing
efforts
• Road map to realizing goals
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Benefits of Marketing Plan
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Requires PM to evaluate objectively
Encourages effective use of resources
Promotes consistent messaging to management
Monitors and controls marketing costs
Assists in marketing decision-making process
Encourages involvement and participation
Relates to success or failure of property
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Components of a Plan
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Your community, amenities, and services
Pricing
Target market
Competitors
Marketing objectives
Marketing strategies
Budget
Promotional mix
Measurement and evaluation
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Developing a Marketing Plan:
Manager Responsibilities
• Be familiar with every aspect of your
product and its relative performance
• Be knowledgeable about reporting and
analysis
• Provide and understand reports, their
source, and their value
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Community Image
• Image of the property perceived by the
customer
• Reflected in everything customers can
see, hear, touch and feel
• It is a team effort
• Every aspect that employees have control
over
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Factors Impacting Impression
• Personnel
• Quality of content of correspondence
and collateral materials
• Appearance of community areas
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How to Obtain/Maintain Positive
Image
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Attitude
Team meetings and training
Community Products-newsletter, brochures
Web site
Office, Facilities, Amenities and equipment
Curb appeal
Signage
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How to Obtain/Maintain Positive
Image (cont’d)
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Grounds maintenance
Common areas
Entry ways
Information center
Model apartments
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Writing the Plan
• Research and document five P’s
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Place
Product
People
Price
Promotion
• Frame conclusions
• Outline recommendations
• SWOT analysis to clarify goals and action items
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SWOT: Definition
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Strengths
Weaknesses
Opportunities
Threats
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SWOT: Benefits
• Define changes in economic trends
and market factors
• Help identify ways to increase and
exceed resident expectations
• Reveal opportunities to gain a
competitive advantage
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Activity #2: SWOT Analysis
Strengths
Weaknesses
What
advantages do we have?
What do we do well?
What resources do we have access to?
What do our residents see as our
strengths?
What
Opportunities
Threats
What
What
are the opportunities facing us?
What are the interesting trends in our
industry?
What are the interesting trends in our
geographic area?
Can we identify specific opportunities that
will open up if any of our weaknesses are
eliminated?
could be better?
What do we do badly?
What should we avoid?
Can any of our weaknesses be turned
into opportunities?
obstacles do we face?
What is our competition doing?
Are the required specifications for our
products or services changing?
Is changing technology threatening our
market position?
Could any of our weaknesses seriously
threaten our business?
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Marketing Objectives
• Identifies a specific goal
• Defines successful achievement of goal
• Are clear, measurable, assigned a time
frame, consistent with one another
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Marketing Strategy
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Outlines steps to take to achieve marketing
objectives
Contains five goals:
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Provides residents with what they want
Highly differentiated from competitors
Delivers high impact
Places product in appropriate distribution
Provides appropriate support
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Marketing Plan Budget
• Shows amount allocated for expenditure
on marketing activities in a specified
period
• Understand owners investment goals for
the property
• Allocate a percentage (i.e. 2%) of gross
sales
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Measuring Success
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Actual results
Number of new leases signed
Number of residents retained
Cost/lease
Cost/traffic by source
Improved budget performance
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Use and Evaluation
• Purpose: to make adjustments to plan to allocate
marketing dollars
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Establish evaluation procedures before
Monitor and evaluate at set intervals
Keep good records
Organize information
Compare results from advertising with marketing
objectives
– Be realistic
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Activity #3:
Marketing Plan Budget
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Skill Check #3
Chapter 3 – Marketing Plan
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Chapter 4
Fair Housing in Marketing and Advertising
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Fair Housing in Marketing and
Advertising
• Marketing Impact on Fair Housing Issues
• Advertising Impact on Fair Housing Issues
• Liability for Marketing/Advertising
Discrimination
Course 5: Marketing Chapter 4
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Developing your plan to avoid fair
housing problems
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Cover all aspects of marketing
Written
Review regularly
Evaluate and modify as necessary
Ensure there are non-discriminatory goals
and objectives
Course 5: Marketing Chapter 4
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FHA and Advertising
• The FHA prohibits publishing, making or
printing any advertisement regarding the
sale or rental of a residence that specifies a
preference of race, color, religion, sex,
handicap, familial status or national origin.
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Considerations in the Marketing
Mix
• Product- describe property not people,
avoid quiet, exclusive
• Price
• Promotion
• Place
• People
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HUD Regulations: Affirmative
Marketing
• HUD regulations specifically bar owners
from selecting “media or locations for
advertising the sale or rental of dwellings
which deny particular segments of the
housing market information about housing
opportunities because of …” protected
class.
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Fair Housing Checklist
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What will the message be?
How will the message be distributed?
Where will the message be distributed?
Which tools have more defined or narrow
distributions?
• Do any of the tools send specific “images” to
the customers?
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Measuring Success
• Were members of protected classes reached?
• Was a fair and impartial sampling of the
geographic area represented?
• Do the numbers indicate any variation in results
along protected class lines?
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Tips on Fair Housing Marketing
• Practice inclusive marketing
• Create and record marketing policies and plans
• Federally assisted properties are required to create an
Affirmative Fair Housing Marketing plan
• Consider using media catering to ethnic groups
• If direct marketing, avoid targeting by specific demographics
or zip codes
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Tips on Fair Housing Marketing
• Keep copies and records
of ads and their
placement
• Include the Fair Housing
logo
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Tips on Internet Marketing
• As a marketing medium
• Company Web site
– Promotions current, accurate and nondiscriminatory
• Third party Web site
– Promotions current, accurate and nondiscriminatory
• Written policy for responses
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Rent Specials and Concessions
• Clearly state start date and time
• Ensure staff offer same programs to all prospects
• Ensure timing of ads with program description
matches timeframe for program
• Monitor staff use of programs
• Be cautious about negotiating rents
• Follow state and local laws regarding referral fees
• Apply same guidelines to programs associated with
lease renewals
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Avoiding Symbolism in the Rental
Office
• Symbolism can indicate a preference or
limitation
– Lifestyle
– Religion
– Even politics can push hot buttons
• Includes bulletin boards & binders
• Includes offices located in the manager’s
apartment
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Tips on Fair Housing in Advertising
• Consider demographics
• Use Equal Housing Opportunity logo properly
• If using clip art forms rather than real people,
use caution
• Display Fair Housing poster in Leasing Center
• Use inclusive and appropriate language
• Never advertise something you do not have
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Phrases to Avoid
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An exclusive or private community
Latino or Asian neighborhood
Close to churches
Quiet, peaceful, restful community
Ideal for seniors
For the active lifestyle or active seniors
Adult community or independent living
“Special needs”
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References to Avoid
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Race
Skin colors
National origin
Religion
Sex
Familial status
(except senior
housing)
• Handicap
• References to the
resident
characteristics, such
as “professionals”
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Use of Human Models
• When using human models:
– Use a diverse and representative sampling of the larger
community
– Demonstrate that all persons are welcome
– Include different races, age groups, nationalities,
families with children and the disabled
– In senior housing, you do not need to include families
with children
– Show them in equal social settings
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Liability for Discrimination
• Senior housing
– Property Managers can face discrimination
charges if property not bona fide senior housing
• Some fair housing agencies monitor advertising
• Investigators will review advertising
• Internet laws state that a third party cannot be liable
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Staff Training
 Staff training should include the following
activities.
 Share the marketing plan with the staff.
 Make sure the staff understands proper and timely
recording of available units and those units in the
make-ready process.
 Establish firm policies for responding to telephone, inperson and electronic traffic.
 Ensure the staff asks prospects about how they heard
about the property.
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Skill Check #4
Chapter 4 – Fair Housing in Marketing
and Advertising
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Chapter 5
Promotional Marketing
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Promotional Marketing Topics
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Types of promotion
Advertising
Marketing tools and advertising media
Media selection
Advertising campaign development
Public relations
Sales promotions
Internal marketing
Relationship selling
Sales approach to marketing
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Promotional Marketing: Definition
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Form of communication that is used to
inform and persuade people about a
product or service
Used to improve public image
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Promotion Objectives: IDA
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Attention: awareness
Interest: knowledge/information
Desire: liking/preference
Action: conviction/purchase
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Promotion Types
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Advertising
Public relations
Sales promotion
Relationship selling
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Advertising: Definition
• Non-personal promotion of product, service or
company in mass media that is openly paid for
and/or sponsored by you.
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Purpose of Advertising
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To increase qualified traffic
To keep apartments rented
To promote product
To make buyer aware of your product
and move the buyer to action
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Goals of Advertising
• Establish and maintain awareness and positive
image
• Create a real or perceived need for product
• Develop sales leads
• Persuade customers that your product is best for
them
• Promote events
• Lead potential residents to rent from you
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Advertising
- Do’s and Don'ts
- Techniques to advertise your property
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Advertising Strategies
• Carefully considered approach that you will
take to let community know about your
property
• How you will connect advertising media to
message, target or goal
• Focused on enhancing value of property
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Activity #4
Is your strategy effective?
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Is it simple?
Is it specific?
Is it durable?
Does the strategy maximize your ability to
advertise?
Are the results measurable?
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Marketing Tools and Advertising
Media
• Apartment publications and rental
magazines
• Online or Internet marketing
• Newspapers
• Direct mail
• Visual traffic generators
• Directive brochures
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Marketing Tools and Advertising
Media, continued
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Radio
Television
E-Marketing
Marketing through other merchants or
vendors
• Transit advertising
• Outdoor billboards
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Media Selection
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Advertising objective
Target audience
The message and frequency
Budget
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Advertising Campaign: Definition
• Program of coordinated ads and other
promotional activities intended to
accomplish specific objectives.
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Advertising Campaign
Development Process
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Establish goals
Enhance use of media visibility
Compile media database
Send collateral material
Contact recipients
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Advertising Campaign: Message
and Theme
• Identify a theme
• Include a color scheme
• Include message on every aspect of
marketing collateral
• Train staff
• Offer incentive
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Public Relations: Definition
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Ongoing relationships that exist between
the apartment community and the public
Use to create a positive image
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Public Relations Activities
• Employee relations
• Resident relations – Resident Appreciation
week
• Community relations
• Publicity
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Sales Promotions: Definition
• Sales activities designed to consummate a sale
or increase the size of the sale of goods or
services by providing the incentive to make a
positive purchase decision.
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Sales Promotions Techniques
• Used to
– motivate leasing professionals to improve
– Induce potential residents to rent
• Encompass
– Price-reduced rent packages, coupons
– Utility offers
– Contests or incentives
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Internal Marketing
• Refers to the onsite marketing practices
that occur within the apartment
community.
• Includes staff and resident involvement in
marketing
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Relationship Selling: Definition
• “Custom tailoring information to individual
people” (NALP)
• Flexible and individualized
• Requires well-trained associates who can
develop relationships with prospective
residents and align wants and needs with
features and benefits
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Relationship Selling: Purpose
• To close a sale once the prospective
resident is attracted to the apartment
community.
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Successful Sales Personnel
• Knowledgeable of all aspects of product
• Know the customer wants and needs and how
they make decisions
• Have good communication, observation,
listening and questioning skills
• Employ strategies to overcome customer
objections
• Use proven selling techniques
• Know how and when to close sale
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Selling versus Marketing
• Selling:
– Communicates to a particular prospect how your
community can fill their needs
– Impact: Personal and relational
– Addresses a specific opportunity
• Marketing
– Brings product in contact with current or prospective
resident
– Impact: broad and applies to many
– Continuous
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Marketing Involves
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Goals
Research
Analysis
Evaluation and measured results
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Sales Promotions
• Involve activities that stimulate consumer
purchasing and increase effectiveness
• Located at point of purchase
• Supplement other parts of total marketing
efforts
• Designed to increase sales over a short
period of time
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Sales Activities
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Preparation
Prospecting
Relationship building
Getting appointments
Interviewing
Responding to needs or prescribing your
solution
• Obtaining commitment
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Skill Check #5
Chapter 5 – Promotional Marketing
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