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 • Eva lua 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. DtDeterm ine improvemen ts you can ma ke – Descr ip tion o f how you w ill identif 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