Introductions • 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 2

Agenda Introduction to Marketing • Introduction to Marketing • The Property Manager’s Role • Conducting Market Analysis • Understanding your Market • Marketing Plan • Factors impacting apartment markets • Fair Housing in Marketing and Advertising • Marketing Mix • Promotional Marketing • Marketing Success Factors

Course 5: Marketing 3 Course 5: Marketing Chapter 1 4

Marketing: Definition Why Do Marketing?

Integrated and coordinated • To realize optimum value of a property activities, such as research and • To meet financial goals promotion, which focus inside and • To achieve and maintain occupancy levels outside the community, to • To understand resident wants and needs encourage recipients to rent or continue renting an apartment.

Course 5: Marketing Chapter 1 5 Course 5: Marketing Chapter 1 6

1 Community Manager Responsibility What is Your Market? • Prepare and implement market plan • Price and analyze marketing and All current and potential residents who want advertising materials to live in the apartment community and • Identify present and future markets who are qualified to live there . • Measure and monitor marketing efforts • Educate and involve onsite personnel in marketing efforts

Course 5: Marketing Chapter 1 7 Course 5: Marketing Chapter 1 8

Market Segmentation: Benefits Market Segmentation • Allows for tailoring of marketing efforts • Designed to reach a specific, smaller group, or target market, within the identified market • Provides insight into how to reach the • Classified according to characteristics such customer through advertising and as: promotion – Geography • Allows companies to maximize resources while – Demographics increasing likelihood of success – Lifestyle – Product benefits

Course 5: Marketing Chapter 1 9 Course 5: Marketing Chapter 1 10

Factors Impacting Apartment Markets Marketing Mix: Definition • Location • Demographic characteristics Controllable variables the company • Unit size and layout blends to produce the desired market response. • Price • Physical • Economic • Governmental • Social

Course 5: Marketing Chapter 1 11 Course 5: Marketing Chapter 1 12

2 Marketing Mix: 5 Ps Product • Product • Product or services offered (apartments • Price and community) • Promotion • Brand identity and logo • Place • Eval ua tdted an d mar ktdbketed by: • People – Reliability – Quality – Features

Course 5: Marketing Chapter 1 13 Course 5: Marketing Chapter 1 14

Price Promotion

• Monthly rent • Advertising • Fees • Public relations • Deposits • Sales promotion • Utility expenses • Relationship selling • Premium charges • Price is influenced by: – Location – Interior upgrades

Course 5: Marketing Chapter 1 15 Course 5: Marketing Chapter 1 16

Place People • Onsite personnel • Distribution channel or method for making your product available • Management team • Define and market your property’s: • Contract workers – Physical location • Marketing partners and vendors – Relative location – Comparative location

Course 5: Marketing Chapter 1 17 Course 5: Marketing Chapter 1 18

3 Marketing Success Factors Skill Check #1 • Visionary • Goal oriented • Customer-focused Chapter 1 – Introduction to Marketing • Team oriented • Communicated effectively • Consistent • Repetitive • Adaptable to change • Monitored and regularly evaluated

Course 5: Marketing Chapter 1 19 Course 5: Marketing Chapter 1 20

Chapter 2: Conducting Market Analysis • Market Analysis Basics Conducting a Market Analysis • Regional and Neighborhood Analysis • Analyzing the Property and Its Location • Analyzing the Resident Population • Analyzing Competitors • Market Analysis Plan

Course 5: Marketing Chapter 1 21 Course 5: Marketing Chapter 2 22

Market Analysis: Definition When to do Market Analysis • New construction • A formal approach to collection, • Rent increases analysis, interpretation and reporting of information for making rational • Annual budget preparation marketing decisions • Resident retention rate decreases • An ongoing process to understand • Unmet occupancy goals customers, competitors and the industry

Course 5: Marketing Chapter 2 23 Course 5: Marketing Chapter 2 24

4 Benefits of Market Analysis (cont’d) Benefits of Market Analysis • Generate, refine and evaluate marketing efforts • Effectively target market/advertising campaigns • Identify customer specific needs • Identify opportunities in marketplace • Evaluate your success with measurable data • Evaluate and establish rent levels and fee • Communicate the market analysis findings and policies their implications • Monitor what you are doing well and where to improve

Course 5: Marketing Chapter 2 25 Course 5: Marketing Chapter 2 26

3 Elements of a Market Analysis Elements of a Regional Analysis

• Regional analysis • Economic conditions • Neighborhood analysis • Recreational/entertainment venues • Property analysis • Government structure • Educational institutions

Course 5: Marketing Chapter 2 27 Course 5: Marketing Chapter 2 28

Elements of a Neighborhood Property and Location Analysis Analysis

• Boundary definition • Perform to identify opportunities and key • Population characteristics and trends issues relating to the property and its • Economic conditions location such as: • Property types – Whe ther fea tures an d bene fits are be ing fu lly exploited • Amenity and educational opportunities – How new trends impact the property • Crime activity – How residents view quality and reliability • Others… • Allows for proactive marketing efforts

Course 5: Marketing Chapter 2 29 Course 5: Marketing Chapter 2 30

5 How to do a Property and Location Analysis Resident Analysis 1. Collect data on properties features and location • Contains information on resident’s: 2. Gather and examine property reports and documentation – Satisfaction with service levels 3. List negative aspects that affect sales – Needs and wants 4. DiblfftDescribe plans for future expans ion – Demographic information 5. Compare results of research with existing marketing efforts • Helps identify: 6. Decide how to improve on marketing to take – People who fit current resident profile advantage of property’s features and location – Potential residents if repositioning

Course 5: Marketing Chapter 2 31 Course 5: Marketing Chapter 2 32

Resident Analysis (cont’d) How to do a Resident Analysis • Provides: 1. Conduct resident survey – Potential rent levels 2. Examine property reports and – Occupational targets documentation about prior and current – RddithRecommended amenity changes residents 3. Describe target market: the characteristics of the consumer to whom you want to focus your marketing efforts.

Course 5: Marketing Chapter 2 33 Course 5: Marketing Chapter 2 34

Competitor Analysis (cont’d) Competitor Analysis • Helps you to: • Includes information about other • Identify your competitive advantage communities that compete with yours • Identify areas of missed opportunity • Gives yygou an understanding of • Make innovative improvements competitor’s: • Identify categories of customers whose – Product needs are not being met – Services • Learn more about your market – Marketing strategies

Course 5: Marketing Chapter 2 35 Course 5: Marketing Chapter 2 36

6 How to do a Competitor Analysis Market Analysis Plan 1. Collect information about competitors • Describes how you will conduct your market analysis 2. Gather and examine reports and • Contains: documents pertaining to competitors – Objectives of the plan 3. DtDetermi ne improvemen ts you can ma ke – Descr ip tion o f how you w ill id entif y mark eti ng problems and opportunities to product, services, and marketing – Description of how you will collect data – Description of how you are going to analyze results of research – A detailed timeline for completion

Course 5: Marketing Chapter 2 37 Course 5: Marketing Chapter 2 38

Activity #1 Skill Check #2

Market Analysis Chapter 2 – Conducting Marketing Analysis

Course 5: Marketing Chapter 2 39 Course 5: Marketing Chapter 2 40

Chapter 3 Marketing Plan • Marketing Plan Basics The Marketing Plan • Marketing Plan Development • Internal Market Readiness • Writinggg 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 1 41 Course 5: Marketing Chapter 3 42

7 Marketing Plan: Definition Marketing Plan: Purpose

• Detailed, written account and time table of the • Develop, guide, and coordinate marketing objectives and methods to be used to achieve efforts the property’s marketing goals. • Road mappgg to realizing goals • CththiCreate when there is: – Critical need – new ownership – Repositioning – significant physical changes – Problem solving – media issues – Sustaining plan - ongoing

Course 5: Marketing Chapter 3 43 Course 5: Marketing Chapter 3 44

Benefits of Marketing Plan Components of a Plan • Your community, amenities, and services • Requires PM to evaluate objectively • Pricing • Encourages effective use of resources • Target market • Promotes consistent messaging to management • Competitors • Monitors and controls marketing costs • Marketing objectives • Assists in marketing decision-making process • Marketing strategies • Encourages involvement and participation • Budget • Promotional mix • Relates to success or failure of property • Measurement and evaluation

Course 5: Marketing Chapter 3 45 Course 5: Marketing Chapter 3 46

Developing a Marketing Plan: Manager Responsibilities Community Image

• Be familiar with every aspect of your • Image of the property perceived by the product and its relative performance customer • Be knowledggpgeable about reporting and • Reflected in everyygthing customers can analysis see, hear, touch and feel • Provide and understand reports, their • It is a team effort source, and their value • Every aspect that employees have control over

Course 5: Marketing Chapter 3 47 Course 5: Marketing Chapter 3 48

8 How to Obtain/Maintain Positive Factors Impacting Impression Image

• Personnel • Attitude • Quality of content of correspondence • Team meetings and training and collateral materials • Community Products-newsletter, brochures • Appearance of community areas • Web site • Office, Facilities, Amenities and equipment • Curb appeal • Signage

Course 5: Marketing Chapter 3 49 Course 5: Marketing Chapter 3 50

How to Obtain/Maintain Positive Image (cont’d) Writing the Plan

• Grounds maintenance • Research and document five P’s • Common areas – Place – Product • Entry ways – People • Information center – Price – Promotion • Model apartments • Frame conclusions • Outline recommendations • SWOT analysis to clarify goals and action items

Course 5: Marketing Chapter 3 51 Course 5: Marketing Chapter 3 52

SWOT: Definition SWOT: Benefits • Strengths • Define changes in economic trends • Weaknesses and market factors • Opportunities • Helppyy identify ways to increase and • Threats exceed resident expectations • Reveal opportunities to gain a competitive advantage

Course 5: Marketing Chapter 3 53 Course 5: Marketing Chapter 3 54

9 Activity #2: SWOT Analysis Marketing Objectives Strengths Weaknesses „What advantages do we have? „What could be better? • Identifies a specific goal „What do we do well? „What do we do badly? „What resources do we have access to? „What should we avoid? • Defines successful achievement of goal „What do our residents see as our „Can any of our weaknesses be turned strengths? into opportunities? • Are clear, measurable, assigned a time Opportunities Threats fittiththframe, consistent with one another „What are the opportunities facing us? „What obstacles do we face? „What are the interesting trends in our „What is our competition doing? industry? „Are the required specifications for our „What are the interesting trends in our products or services changing? geographic area? „Is changing technology threatening our „Can we identify specific opportunities that market position? will open up if any of our weaknesses are „Could any of our weaknesses seriously eliminated? threaten our business?

Course 5: Marketing Chapter 3 55 Course 5: Marketing Chapter 3 56

Marketing Strategy Marketing Plan Budget • Outlines steps to take to achieve marketing • Shows amount allocated for expenditure objectives on marketing activities in a specified • Contains five goals: period – Provides residents with what they want • Understand owners investment goals for – Highly differentiated from competitors – Delivers high impact the property – Places product in appropriate distribution • Allocate a percentage (i.e. 2%) of gross – Provides appropriate support sales

Course 5: Marketing Chapter 3 57 Course 5: Marketing Chapter 3 58

Measuring Success Use and Evaluation • Actual results • Purpose: to make adjustments to plan to allocate • Number of new leases signed marketing dollars • Consider the following: • Number of residents retained – Establish evaluation procedures before • Cost/lease – MitMonitor an d eva ltluate a t se titt interval s • Cost/traffic by source – Keep good records • Improved budget performance – Organize information – Compare results from advertising with marketing objectives – Be realistic

Course 5: Marketing Chapter 3 59 Course 5: Marketing Chapter 3 60

10 Activity #3: Skill Check #3

Marketing Plan Budget Chapter 3 – Marketing Plan

Course 5: Marketing Chapter 3 61 Course 5: Marketing Chapter 3 62

Fair Housing in Marketing and Chapter 4 Advertising • Marketing Impact on Fair Housing Issues Fair Housing in Marketing and Advertising • Advertising Impact on Fair Housing Issues • Liability for Marketing/Advertising Discrimination

Course 5: Marketing Chapter 1 63 Course 5: Marketing Chapter 4 64

Developing your plan to avoid fair housing problems FHA and Advertising • Cover all aspects of marketing • The FHA prohibits publishing, making or • Written printing any advertisement regarding the • Review regularly sale or rental of a residence that specifies a • Evaluate and modify as necessary preference of race, color, religion, sex, • Ensure there are non-discriminatory goals handicap, familial status or national origin. and objectives

Course 5: Marketing Chapter 4 65 Course 5: Marketing Chapter 4 66

11 Considerations in the Marketing HUD Regulations: Affirmative Mix Marketing • HUD regulations specifically bar owners • Product- describe property not people, from selecting “media or locations for avoid quiet, exclusive advertising the sale or rental of dwellings • Price which deny particular segments of the • Promotion housing market information about housing • Place opportunities because of …” protected class. • People

Course 5: Marketing Chapter 4 67 Course 5: Marketing Chapter 4 68

Fair Housing Checklist Measuring Success

• What will the message be? • Were members of protected classes reached? • How will the message be distributed? • Was a fair and impartial sampling of the • Where will the message be distributed? geographic area represented? • Which tools have more defined or narrow • Do the num bers iditindicate any var itiiation in resu lts distributions? along protected class lines? • Do any of the tools send specific “images” to the customers?

Course 5: Marketing Chapter 4 69 Course 5: Marketing Chapter 4 70

Tips on Fair Housing Marketing Tips on Fair Housing Marketing • Practice inclusive marketing • Keep copies and records • Create and record marketing policies and plans of ads and their • Federally assisted properties are required to create an placement Affirmative Fair Housingggp Marketing plan • Include the Fair Housing • Consider using media catering to ethnic groups logo • If direct marketing, avoid targeting by specific demographics or zip codes

Course 5: Marketing Chapter 4 71 Course 5: Marketing Chapter 4 72

12 Rent Specials and Concessions Tips on Internet Marketing

• As a marketing medium • Clearly state start date and time • Ensure staff offer same programs to all prospects • Company Web site • Ensure timing of ads with program description – Promotions current, accurate and non- matches timeframe for ppgrogram discr im ina tory • Monitor staff use of programs • Third party Web site • Be cautious about negotiating rents – Promotions current, accurate and non- • Follow state and local laws regarding referral fees discriminatory • Apply same guidelines to programs associated with • Written policy for responses lease renewals

Course 5: Marketing Chapter 4 73 Course 5: Marketing Chapter 4 74

Avoiding Symbolism in the Rental Tips on Fair Housing in Advertising Office • Consider demographics • Symbolism can indicate a preference or • Use Equal Housing Opportunity logo properly limitation • If using clip art forms rather than real people, – Lifestyle use caution – Religion • Display Fair Housing poster in Leasing Center – Even politics can push hot buttons • Use inclusive and appropriate language • Includes bulletin boards & binders • Never advertise something you do not have • Includes offices located in the manager’s apartment

Course 5: Marketing Chapter 4 75 Course 5: Marketing Chapter 4 76

References to Avoid Phrases to Avoid • Race • Handicap • An exclusive or private community • Skin colors • References to the • Latino or Asian neighborhood • National origin resident • Close to churches • Religion characteristics, such • Quiet, peaceful, restful community as “professionals” • Sex • Ideal for seniors • Familial status • For the active lifestyle or active seniors (except senior • Adult community or independent living housing) • “Special needs”

Course 5: Marketing Chapter 4 77 Course 5: Marketing Chapter 4 78

13 Use of Human Models Liability for Discrimination

• When using human models: • Senior housing – Use a diverse and representative sampling of the larger – Property Managers can face discrimination community charges if property not bona fide senior housing – Demonstrate that all persons are welcome • Some fair housing agencies monitor advertising – Include different races, age groups, nationalities, • Investigators will review advertising families with children and the disabled • Internet laws state that a third party cannot be liable – In senior housing, you do not need to include families with children – Show them in equal social settings

Course 5: Marketing Chapter 4 79 Course 5: Marketing Chapter 4 80

Staff Training Skill Check #4 ƒ Staff training should include the following activities. ƒ Share the marketing plan with the staff. ƒ Make sure the staff understands proper and timely recording of available units and those units in the Chapter 4 – Fair Housing in Marketing make-ready process. and Advertising ƒ Establish firm policies for responding to telephone, in- person and electronic traffic. ƒ Ensure the staff asks prospects about how they heard about the property.

Course 5: Marketing Chapter 4 81 Course 5: Marketing Chapter 4 82

Promotional Marketing Topics Chapter 5 • Types of promotion • Advertising Promotional Marketing • Marketing tools and advertising media • Media selection • Advertising campaign development • Public relations • Sales promotions • Internal marketing • Relationship selling • Sales approach to marketing

Course 5: Marketing Chapter 1 83 Course 5: Marketing Chapter 5 84

14 Promotional Marketing: Definition Promotion Objectives: IDA

• Form of communication that is used to • Attention: awareness inform and persuade people about a • Interest: knowledge/information product or service • Desire: liking/preference • Used to improve public image • Action: conviction/purchase

Course 5: Marketing Chapter 5 85 Course 5: Marketing Chapter 5 86

Promotion Types Advertising: Definition • Advertising • Non-personal promotion of product, service or • Public relations company in mass media that is openly paid for • Sales promotion and/or sponsored by you. • Relationship selling

Course 5: Marketing Chapter 5 87 Course 5: Marketing Chapter 5 88

Purpose of Advertising Goals of Advertising

• To increase qualified traffic • Establish and maintain awareness and positive image • To keep apartments rented • Create a real or perceived need for product • To promote product • Develop sales leads • To make buyer aware of your product • Persuade customers that your product is best for them and move the buyer to action • Promote events • Lead potential residents to rent from you

Course 5: Marketing Chapter 5 89 Course 5: Marketing Chapter 5 90

15 Advertising Strategies Advertising - Do’s and Don'ts • Carefully considered approach that you will - Techniques to advertise your property 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

Course 5: Marketing Chapter 1 91 Course 5: Marketing Chapter 5 92

Marketing Tools and Advertising Activity #4 Media Is your strategy effective? • Apartment publications and rental magazines • Is it simple? • Online or Internet marketing • Is it specific? • Newspapers • Is it durable? • Direct mail • Does the strategy maximize your ability to advertise? • Visual traffic generators • Are the results measurable? • Directive brochures

Course 5: Marketing Chapter 5 93 Course 5: Marketing Chapter 5 94

Marketing Tools and Advertising Media, continued Media Selection

• Radio • Advertising objective • Television • Target audience • E-Marketing • The message and frequency • Marketing through other merchants or • Budget vendors • Transit advertising • Outdoor billboards

Course 5: Marketing Chapter 5 95 Course 5: Marketing Chapter 5 96

16 Advertising Campaign Advertising Campaign: Definition Development Process • Program of coordinated ads and other 1. Establish goals promotional activities intended to 2. Enhance use of media visibility accomplish specific objectives. 3. Compile media database 4. Send collateral material 5. Contact recipients

Course 5: Marketing Chapter 5 97 Course 5: Marketing Chapter 5 98

Advertising Campaign: Message and Theme Public Relations: Definition • Identify a theme • Ongoing relationships that exist between • Include a color scheme the apartment community and the public • Include message on every aspect of • Use to create a ppgositive image marktiketing co lltllatera l • Train staff • Offer incentive

Course 5: Marketing Chapter 5 99 Course 5: Marketing Chapter 5 100

Sales Promotions: Definition Public Relations Activities • Employee relations • Sales activities designed to consummate a sale • Resident relations – Resident Appreciation or increase the size of the sale of goods or services by providing the incentive to make a week positive purchase decision. • CitltiCommunity relations • Publicity

Course 5: Marketing Chapter 5 101 Course 5: Marketing Chapter 5 102

17 Sales Promotions Techniques Internal Marketing • Used to • Refers to the onsite marketing practices – motivate leasing professionals to improve that occur within the apartment – Induce potential residents to rent community. • Encompass • Includes staff and resident involvement in – Price-reduced rent packages, coupons marketing – Utility offers – Contests or incentives

Course 5: Marketing Chapter 5 103 Course 5: Marketing Chapter 5 104

Relationship Selling: Definition Relationship Selling: Purpose

• “Custom tailoring information to individual • To close a sale once the prospective people” (NALP) resident is attracted to the apartment • Flexible and individualized community. • RiRequires we ll-titrained assoc itiates w ho can develop relationships with prospective residents and align wants and needs with features and benefits

Course 5: Marketing Chapter 5 105 Course 5: Marketing Chapter 5 106

Successful Sales Personnel Selling versus Marketing • Knowledgeable of all aspects of product • Selling: • Know the customer wants and needs and how – Communicates to a particular prospect how your they make decisions community can fill their needs • Have good communication, observation, – Impact: Personal and relational list eni ng and questi oni ng s kills – Addresses a specific opportunity • Employ strategies to overcome customer • Marketing objections – Brings product in contact with current or prospective resident • Use proven selling techniques – Impact: broad and applies to many • Know how and when to close sale – Continuous

Course 5: Marketing Chapter 5 107 Course 5: Marketing Chapter 5 108

18 Marketing Involves Sales Promotions • Goals • Involve activities that stimulate consumer • Research purchasing and increase effectiveness • Located at point of purchase • Analysis • Supplement other parts of total marketing • Evaluation and measured results efforts • Designed to increase sales over a short period of time

Course 5: Marketing Chapter 5 109 Course 5: Marketing Chapter 5 110

Sales Activities Skill Check #5 • Preparation • Prospecting • Relationship building • Getting appointments Chapter 5 – Promotional Marketing • Interviewing • Responding to needs or prescribing your solution • Obtaining commitment

Course 5: Marketing Chapter 5 111 Course 5: Marketing Chapter 5 112

19