As property managers, one of our responsibilities is marketing. How do we get out message out to potential prospects, what do we say to entice them to call or visit us, and what mediums do we use? These are all points we have to consider, however, one critical point is often overlooked...understanding who we are marketing to.
Before you can decide on a medium, enticement line, or any other consideration we have to understand who our residents are and who our prospects are. Analysis of our target market is more than just price point, and for any community we have to consider a host of variables. These include:
1. Yes price is a factor, therefore who can afford our apartments? If our guideline is normally three times rent to income, what does that equate to? As an example for an $800 per month rent that comes to a base income of $28,800 or someone that makes approximately $14.00 per hour (if you look at a 40 hour work week that equates to 2,080 hours per year). If your guideline is higher or rents are higher, you can do the math to find out who you should target based on price. The first question is what jobs pay that would meet your minimum income standards?
2. Where do people work and what is the average travel time in your market? Are there geographic or topographic considerations such as rivers, mountains, or even toll roads that people look at in getting to primary work areas? While you have three different market areas within any major market (primary, secondary, and tertiary), how do trends within the market related to these considerations as well as public transportation play a part? A downtown mid-rise compared to a rural three story walk-up community will look at marketing very different just based on what I call "behavioral" patterns of living.
3. Is there an primary age range that seems to fit your community better or a range that has already been identified as through years of establishment? Do you cater to an older clientele based on the location or seasonal nature of the market (here in Florida we have many senior communities)? Is your community designed and built with more "new age" design and amenities where you might target a younger and more professional resident?
4. What amenities, resident activities, appointments or other considerations that identify with any market segment which can help attract prospects to your community? This also includes anything from stainless appliances to floor covering, garages, and other features as well as square footage and storage space.
Next you need to complete an analysis on what marketing mediums you have available, what your budget is, and how you can get your message to potential prospects. Is your target more "technology" savoy and you need to focus on electronic mediums more than print? Maybe your target is "seasoned citizens," who based on generational studies still want a guide they can hold in their hand. Maybe you need to have a combination of mediums to attract the highest number of qualified candidates and maintain maximum occupancy. So many choices and decisions, and a limited amount of funds in my budget. So now what do I do?
This is where analysis of the mediums comes into play. Once you have identified who you need to get your message to, how do I do it? If there are three print publications in my market, which one is the best choice? First, never assume the one you have always used is the best choice for your community. I have had managers tell me the issue with occupancy is the market, when in fact it was the "marketing" that was the problem. Remember, with all the mediums and communities...your prospects have choices! Any one of the publications will tell you why they are the best. Any one of the internet sites will show you graphs and charts as to why they are the best. I have never heard a sales rep say, "You know what, I think you will do better with the Apartment Factor rather than our publication." Ain't going to happen. You also must understand markets and conditions will change, just as what each of the medium suppliers has will change compared to the competition. We live and work in a field that is constantly evolving, therefore our marketing needs to be evaluated constantly to make sure we are spending our money wisely and productively. For example when choosing a print publication the following should be part of your analysis:
1. What is the distribution and how often is the publication updated? Are their distribution racks at locations that "hit" your target market? I once had a print representative tell me they had "x" number of print racks in the city. Problem was they were not at productive or easily viewed locations, not in markets that were within the target market, and I could only change the publication information in my ad quarterly versus monthly. She showed me how thick her book was, however, when calling other competitors and looking at our stats they were not the first rated medium.
2. What backup marketing such as internet resources come with the print, and are they productive. Yes I need to be in a print publication, but my clientele also are "techno savoy." Therefore I need a publication that is strong with hitting my target market with the publication, but also need to see them at the top of the search when I Google, "Apartments Orlando," as an example. Try it and see where your internet marketing provider comes up?
3. How "eye friendly" is the publication. Is there a place for a map? How much bullet point space do I have? Is it easy to find by sections of the city? How user friendly is it including size and ease of use?
Last point is related to the financial part. Since I have pages more in my head but limited space, I'll get into "internet" marketing in another piece. That will take up an expanded posting just with the changes that are happening with that medium. So, back to financial! So I have limited funds, where do I go. If you are confident your leasing staff is doing their job, review the stats for where your traffic is coming from. Next, review your ad and content to insure you are confident you are getting your "target message" across. If you are in two publications, which one produces more and why? Call your comps and ask them how many leases on average do they get from XYZ Publication? I like using leases versus traffic because that's what it all boils down to. If I get 50 visitors a month from a publication but only 10 were qualified, something is wrong. It's not traffic I want in the door, it's what I call "leaseable" traffic. Leases are the only thing that puts money in the bank.
Final point is not being afraid to ask your owner or upper management for funds to expand your marketing as long as everything else is in check (message, medium, leasing team, etc.). I know, they will say it's not in the budget. Neither is lower income from lower occupancy so look at it this way. I have a saying and that is, "hit them in the wallet and their hearts and minds will follow." Basically you have to "sell" what you want, not just ask for what you want. Mrs. Owner, if I could increase income by $4,000 per month (5 leases at an average of $800 per apartment) while only having an $800 a month expense offset, would you consider it? Now you have their attention. Show them your complete analysis, how you got to the numbers you did, the study you made, and the expected result based on your analysis, and they will find it hard not to approve the expense.
Until next time when we'll hit our "technology" side of marketing. Make it a great week and lease-em-up!
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