introduction - I-Board Allied Schools

Transcription

INTRODUCTION
Homes do not sell magically. It takes consistent property marketing to create
interest in a property, causing it to sell at a top price. This type of marketing
requires skill, intuition, planning, and marketing strategies. Property marketing
strategies include the tried-and-true methods, such as putting color flyers in a
holder in front of a house, as well as an efficient marketing plan.
The different promotional methods are advertising, direct marketing, sales
promotion, personal selling, and public relations. As a salesperson, you will
use all of these methods in the course of promoting yourself and your listed
properties. In marketing, this is called a promotional mix—the combination
of the promotional methods to reach the target market and reach your goals.
You need to select which media—Internet, print, radio, or television—to use to
attract business. Are newspaper ads or bus bench ads effective ways to advertise
your business? What medium will you use to attract customers? How often
will you deliver your marketing materials? This unit focuses on advertising.
California Real Estate Practice, 6th Edition
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California Real Estate Practice
Learning Objectives
After completing this unit, you should be able to:
• recall techniques for a successful marketing plan.
• specify elements of an effective ad.
• identify advertising media.
CREATE A PROPERTY MARKETING PLAN
A property marketing plan is a detailed schedule of everything done to
market a property. A property marketing plan is a roadmap leading to the
sale of a particular property. The plan should be tailored to your specific skills,
personal qualities, and strengths. Attempting to follow a plan designed by
another salesperson with a different personality may not produce the results
you desire. You may use basic marketing activities, but you must decide, based
on your special strengths, which methods are most effective.
Marketing efforts should be custom-designed for each property. To market a
property successfully, be resourceful and creative. Not every property will be
a designer model. Some properties are architecturally challenged, and others
may need attention to details that would attract buyers. Put an emphasis on
certain features that may attract buyers.
Techniques for Successful Marketing:
• Use attractive, creative photos of the property to create interest
in its special features (exterior and interior).
• Choose the most desirable features of the house and promote
those as the unique and exclusive benefits of the property.
• Promote the property’s points of interest, accessibility to shops,
proximity to schools, or other features regarding the desirability
of the neighborhood.
• Plan marketing and promotional activities such as open houses,
and stay on schedule.
• Make buyers aware of any special incentives such as seller
financing or contribution to closing costs.
• Adequately expose the property by using advertising outlets such
as classified ads, Internet listings, and MLS.
Unit 8: Advertising & Marketing Listings
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As real estate salespeople strive to gain customers in today’s ultra-competitive
environment, target marketing, or marketing to a precise group of consumers, is
a necessity. Real estate professionals must quickly identify their highest-valued
customers and prospects in order to succeed. With this insight, salespeople
can then develop fine-tuned marketing strategies to draw these customers to
their properties and win their business.
Demographics for Target Markets
• Employment • Gender
•Education
•Occupation
• Average age • Number of children
• Average salary range
Other demographic information
reflects social, economic, and housing
characteristics. The information found
in demographic profiles and your
own evaluation of the property will
determine the types of buyers to whom
you will be marketing.
Your marketing strategy should
Market research is needed to
identify demographic profiles
highlight the factors that are most
and a marketing audience.
important to your target buyers. For
example, if the property in question is
an entry-level home, it will appeal to young professionals. An entry-level
home is a type of home that appeals most to first-time buyers. A typical
first-time buyer may be a new teacher or someone recently promoted to
management, a recent college graduate, or a newly married couple whose
parents are supplying the down payment. These buyers are attracted to
convenient and available loan options, such as various down payment and
mortgage payment programs.
The likely buyer of a move-up home may be a consumer who has outgrown
the entry-level home and is looking for features that will be compatible with
a growing family, larger income, or new interests.
Consumers who are attracted to luxury homes will most likely be experienced
buyers who know what they want in their next home. Their children have
grown up, moved out of the house, and they are now ready to purchase their
dream home. On the other hand, they may have entered into an even higher
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paying position and are looking to upgrade their lifestyle. Luxury extras such
as swimming pools, custom landscaping, custom architecture, spectacular
views, and top-of-the-line appliances and fixtures would attract this type of
buyer. Advertising should present the benefits of the home with professionally
created color brochures that highlight the desirable amenities.
ADVERTISING
Advertising is an impersonal form of mass communication promoting a product
or company that is paid for by the company. It involves spreading the word
about your company and your listings.
The two main types of advertising are institutional advertising and product
advertising. Institutional advertising is designed to create an image,
enhance the reputation, and promote the person or company rather than
a specific product. The Century 21® television ads are a good example of
institutional advertising that reinforces the franchise brand. In addition,
NAR uses institutional advertising effectively to promote the real estate
industry. Often, NAR allows its affiliate member associations to customize
the advertisements for use in their states and local areas. Unlike institutional
advertising, product advertising is designed to promote a specific product
or service. In real estate, the product is usually a listed property, so product
advertising is used to market a specific home.
Advertising plays a large part in marketing, and first impressions can make or
break your business. Once the marketing pieces and ads are written, it is time
to get the word out with an advertising campaign. An advertising campaign
is a plan with a common theme describing the mode and frequency through
which someone communicates a marketing concept. The advertising campaign
should be intensive, evenly paced, and scheduled to continue until the goals
of the campaign are met.
Writing an Effective Ad
When writing an effective ad, remember that a person spends only about four
seconds skimming an ad. The AIDA formula will help you write ads that attract
the customer’s attention and interest, create desire, and stimulate action.
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Mnemonic — AIDA
Attention First, get the customer’s attention.
Interest
Give them benefits to create interest.
Desire
Make the offer irresistible to create desire.
Action
The customer must act in order for you to make a sale.
To be an effective marketer, it is your responsibility to get the customer to stop
and read your ad in detail. Your ad should be visually appealing, descriptive,
and factual.
AIDA Formula to Write an Ad for a Listing
Use the AIDA formula and the following tips to attract buyers’ attention,
spark their interest, create desire, and get them to act.
A
To start the ad, use a strong opening statement about the home.
I
In the first two sentences, mention a few key features of the home. Include the most important facts about the property. Focus on the strongest selling points of the home, and be careful not to crowd your ad with too many details. Avoid real estate jargon. The average consumer will appreciate clear, concise terminology.
D
Use appealing words that involve the readers’ emotions and senses to create desire.
A
Complete the ad with a statement encouraging the prospect to contact you. Include your contact information—
company name, telephone number, email address, and website address.
Sample Residential Advertisements
Prize Location! Enchanting 3br, 2ba, 2-car garage townhouse. Only 5 min from
award-winning schools, large shopping mall, and easy freeway access. Gated
community, central air, fireplace. Hurry! Call today! ABC Realty Group, Inc. (555)
555-5000 – [email protected] – www.abcrealtygroup.xyz
Beautiful Colonial style 4br, 1 1/2ba, 2-story home on quiet cul-de-sac, lush parklike backyard, remodeled thru out, lg. kitchen, $250,000. ABC Realty Group, Inc.
(555) 555-5000 – [email protected] – www.abcrealtygroup.xyz
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Like new! Ranch style 3br, 2ba home, updated kitchen, hardwood flrs, copper
pipes, new paint. $540K. Open Sat/Sun 1-4pm, Tues. 12-1pm. 8300 W. 20th
St. ABC Realty Group, Inc. (555) 555-0000 – [email protected] – www.
abcrealtygroup.xyz
Advertising Guidelines
Before you begin your marketing and advertising efforts, pay careful attention
to the guidelines associated with the real estate profession. State and federal
agencies regulate real estate advertising. By law, real estate brokers and sales
associates must be honest and truthful when advertising property or services. If
you make false statements or material omissions in any medium of advertising,
you may be held liable for fraud, intentional misrepresentation, or negligent
misrepresentation.
Advertising guidelines help real estate licensees avoid penalties and possible
suspension or loss of license. You should avoid any advertising that can be
interpreted a number of different ways, such as “half truths,” inflated claims,
and ambiguous or superlative terms.
Some of the marketing and advertising guidelines set forth in the real estate
profession pertain to name and license status disclosures, use of words in
advertisements, real estate signs, faxing, and emailing. In addition, there is
a federal policy on real estate advertising, and the National Association of
REALTORS® (NAR) has developed a code of ethics for real estate professionals.
It is important to understand and follow these regulations in all your advertising
efforts including electronic formats.
Federal Policy on Real Estate Advertising
The Federal Fair Housing Law requires that all residential real estate
advertising have the Equal Housing Opportunity logotype and slogan. The
logotype should be sufficiently large or visible. The logotype should be a
clear sign or symbol of welcome to all potentially qualified buyers or renters
regardless of race, color, etc. When the size of the logotype is so small that
the facial features (ethnicities) of the people are not clearly distinguishable,
then it is too small.
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Be careful no to develop an advertising campaign that excludes a certain
group. Certain kinds of advertising and the use of certain words or phrases can
violate civil rights laws, even if the person who placed the advertisement had
no intent to discriminate. It is illegal to advertise in such a way that indicates
a preference, restriction, or intention to discriminate. This applies to all types
of advertising media whether it is in print or on the Internet.
Advertising “Red Flags”
The use of certain terminology in an advertisement is often a red
flag. For example, describing a certain neighborhood as exclusive,
private, or restricted implies that certain applicants for sale or rental
of such property might not be welcome. Likewise, using terms that
are too specific are also potentially troublesome. Describing a house
as “great for a single person” implies potential discrimination against
married couples or “great for an active person” implies potential
discrimination against a person with a disability. Even referring to
the incidental presence of nearby religious, racial, ethnic, or similar
landmarks, buildings, or monuments should be avoided because of the
implication that specific buyers might be drawn to purchase because
of those attractions.
Example: Incorrect language might include “walk to nearby church,” “down
the street from Italian-American cultural center,” or “close to the Mormon
Temple.”
In addition, if you use print or television advertising that depicts
potential buyers or sellers by using models, be sure to vary the models
according to age, sex, ethnicity, and social settings. Even consistently
using members only of a minority group would potentially cause
a problem here—e.g., using only persons of Hispanic background
would be just as much of a problem as using only Caucasian models,
because of the potential implications that steering one group is taking
place. Recall United States v. Real Estate One in which potential Fair
Housing Act violations were found from advertising in a strategically
limited geographic area, or using particular editions of newspapers, to
reach a certain segment of the community, or advertising only in small
newspapers targeted to specific religious, racial, or ethnic groups.
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Remember, when advertising a listing, you are advertising the
characteristics of the property, so use words that focus on the most
desirable qualities of the property and its surrounding area without
being offensive. Before publicizing an advertisement, review it
carefully for any words, phrases, or images that may be considered
offensive to others.
NAR Code of Ethics
Standard of Practice 10-1
When involved in the sale or lease of a residence, REALTORS® shall
not volunteer information regarding the racial, religious or ethnic
composition of any neighborhood nor shall they engage in any activity
which may result in panic selling, however, REALTORS® may provide
other demographic information. (Adopted 1/94, Amended 1/06)
Article 12
REALTORS® shall be honest and truthful in their real estate
communications and shall present a true picture in their advertising,
marketing, and other representations. REALTORS® shall ensure
that their status as real estate professionals is readily apparent in
their advertising, marketing, and other representations, and that
the recipients of all real estate communications are, or have been,
notified that those communications are from a real estate professional.
(Amended 1/08)
REALTORS® may use the term “free” and similar terms in their
advertising and in other representations if all terms governing
availability of the offered service or product are clearly disclosed at
the same time. (Amended 1/97)
REALTORS® may represent their services as “free” or without cost
even if they expect to receive compensation from a source other than
their client if the potential for the REALTOR® to obtain a benefit
from a third party is clearly disclosed at the same time. (Amended
1/97)
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The offering of premiums, prizes, merchandise discounts, or other
inducements to list, sell, purchase, or lease is not, in itself, unethical
even if receipt of the benefit is contingent on listing, selling, purchasing,
or leasing through the REALTORS® making the offer. However,
REALTORS® must exercise care and candor in any such advertising
or other public or private representations so that any party interested in
receiving or otherwise benefiting from the REALTOR®’s offer will have
clear, thorough, advance understanding of all the terms and conditions
of the offer. The offering of any inducements to do business is subject to
the limitations and restrictions of state law and the ethical obligations
established by any applicable Standard of Practice. (Amended 1/95)
ADVERTISING MEDIA
Now, how will you get the word out? What advertising media will you use
to attract business? Advertising media are the different channels available
to convey a message to a target market. In fact, any place that a company or
individual pays for in order to deliver their message is an advertising media.
The major media channels are the Internet, print media, outdoor media, radio,
and television (network, cable, and syndicated). Keep in mind that every
advertising medium has characteristics that give it natural advantages and
limitations. Your job is to find the advertising vehicle that most cost effectively
communicates with your customers.
Internet
According to the NAR Profile of Home Buyers
and Sellers, approximately 90% of all buyers
use the Internet for home searches. This is a
number that has been climbing every year since
the inception of the Internet. Generally, Internet
users are informed, anonymous, and in control.
These buyers do their own research. Many
Internet-savvy buyers will not approach a real
estate agent until they are ready. These buyers
are definitely not the buyers of 10-20 years ago.
They know what they want, and they understand
what to expect from a real estate broker and/or
salesperson.
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Internet Advertising
The Internet is becoming the primary source for information and advertising.
In fact, many people think it is easier to find classified ads on the Internet than
it is to find them in a newspaper. Consult your local newspaper about Internet
classifieds, which are often sold independently of the newspaper’s print ads.
In addition, there are well-known websites, such as www.craigslist.org®, where
you can place advertising at no cost.
Because Internet advertising and usage is growing daily, more people are being
exposed to this medium, which in turn creates new markets and provides
greater exposure for your message.
Benefits of Internet Advertising
• Internet Advertising Has A Lower Entry-Level Fee
Internet advertising can be purchased on performance. You only
pay when a visitor clicks on a banner that directs them to your
site.
• Internet Advertising Can Be Targeted
Advertises can focus their messages on their target market by
using such programs as Google™, AdWords, and Google™ AdSense.
• Internet Advertising Enables Conversion Tracking
If you have ever tried to track the number of leads that you receive
from a certain advertising medium, you realize how difficult a
task that is. That is not the case on the Internet. Website traffic
analytics enable you to precisely measure the number of visitors
to your site and track the percentage that take a desired action,
e.g., registering to use your search engine, signing up for your
newsletter, or downloading your latest home buying or home
selling tips. The ratio of actions taken to the number of total
visitors is called the conversion ratio. The higher the conversion
ratio, the greater the effectiveness of your site.
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• Internet Advertising Is Inexpensive Based On Per Impression
Cost
Conversion rates tend to be better on the Internet due to the
targeting possibilities that reduce your cost per lead. Another
advantage of the Internet is low overhead. You do not have to
pay for recurring costs like mailings, toner, postage, or spend time
stuffing envelopes, etc. You can display all of your marketing
materials effectively on your website at a very reasonable cost
and with minimal effort.
• Internet Advertising Has Global Possibilities
Since the Internet spans the globe, foreign buyers and sellers
represent a market that previously was very expensive to reach.
The Internet makes it as cost effective to reach your neighbors as
to reach the rest of the world!
Types of Online Advertising
Advertising on the World Wide Web (web) is constantly changing. Common
ways to advertise on the web include banner and sidebar ads, pop-ups (and
pop-downs), floating ads, interstitial ads, unicast ads, and takeover ads.
A banner ad embeds an advertisement into a web page to attract traffic to a
website by linking to the website of the advertiser. Companies try to put the
banner ads on web pages that have interesting content, such as a newspaper
article or an opinion piece. When the viewer clicks on the banner, the viewer
is directed to the website advertised in the banner. This is called a click
through. A sidebar ad is similar to a banner ad except that it is located on
the side of the screen.
Pop-up ads try to attract web traffic or capture email addresses. Web traffic
is the amount of data sent and received by visitors to a website. A pop-down
ad is a variation on the pop-up ad. The pop-down ad opens a new browser
window hidden under the active window and does not immediately interrupt
the user. The pop-down ad is not seen until the covering window is closed.
Floating ads are so-named because they “float” over the page for five to 30
seconds. Floating ads appear when you first go to a web page. While they
are floating on the screen, they obscure your view of the page you are trying
to read, and they often block mouse input as well. Many people find these
ads annoying because the ads appear each time that page is refreshed. Some
advertisers prefer floating ads, because they grab the viewer’s attention and
are difficult to ignore. Sometimes they take up the entire screen. Therefore,
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from a branding standpoint, they are more powerful than banner and sidebar
ads, yet users find them annoying.
Interstitial ads (interstitial means in between) are actually pages that appear
between web pages that the user requests. Because interstitials load in the
background, they are a preferred way of delivering ads that contain large
graphics, streaming media, or applets.
A unicast ad is similar to a TV commercial except that it runs in the browser
window and has similar branding power as a TV commercial. Unicast ads
give the consumer the ability to click on the ad for more information. These
ads are effective, with an average click-through rate of 5%.
A takeover ad is a large ad that appears when users first go to a site. The same
message is reiterated throughout the site in the form of banners, sidebars, or
buttons. The approach works very well for branding because the brand is visible
to viewers throughout the visit to the site. Click-through rates are high.
Website
Today’s website is yesterday’s storefront. To
compete, you must have a website. Your
brokerage firm needs to have its own website with
the company’s branding, business philosophy,
mission statement, and overview of what your
company does for its clients. Your website does
not give you a competitive advantage; it just puts
you on par with your competitors. Providing
you have a website, people could be “pulled” to
it while they are searching online for homes.
To have a successful website, you must identify
and focus on the target audience you are trying
to attract. A mistake made by many sales associates is to assume that the only
people looking at their website are potential buyers. To the contrary, many
sellers and even FSBOs visit sites for a variety of reasons. Because of this, be
careful not to exclude an important market segment. You can also brand your
website to target smaller niche groups, such as retirees looking for a home in
a gated community, golfers, or buyers looking for rural property.
It is pointless to push Internet buyers to move faster or to reveal themselves
before they are ready. To be effective when working with Internet buyers,
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build relationships and offer services they cannot find elsewhere on the
Internet. Because Internet buyers and sellers spend time doing research,
they have more real estate knowledge. The average purchaser of real estate
services is in the market for a year before making a financial commitment.
The best way to interact with Internet customers is to acknowledge that
they are doing part of your work. Make them aware of the extra value
you will bring to the transaction, such as interpreting data, answering
questions, and writing and negotiating offers. To help buyers locate a
property, discuss their price range and home preferences. Be especially
perceptive of the buyer’s expectations, and be ready to modify your services
to get their business.
Online real estate brokerage has arrived, but the person-to-person relationships
have not disappeared. It is every real estate broker’s responsibility to make the
buying and selling of real estate “high tech and high touch.”
What to Include on Your Website
Structure is important. Use basic principles of design and flow. A visitor
to your site should be able to navigate easily and find necessary information
quickly. A well-designed website focuses on the needs of its readers and
provides information, such as local points of interest, community pages, city
history, maps, restaurants, shopping centers, local sports, etc. Links to lenders,
home inspectors, termite inspectors, movers, and appraisers are always helpful.
You could also offer answers to some of the most commonly asked questions
about buying or selling a home.
Typical Questions about Home Buying and Selling
• How much can I afford to pay?
• Do I need a down payment?
• Should I rent or buy?
• Do I need to be pre-qualified or pre-approved for a mortgage?
Your homepage should reflect your brand and include your logo, company
information and qualifications, contact information, and the services you
offer. A homepage is the first web page that people will see when they visit
your site. Customer testimonials are another way for prospects to learn more
about your firm and build an early rapport. Give potential clients some
type of incentive to contact you on your website, whether it is a particular
property they want information about, a contest with a prize, or a sign-up
for future mailings.
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Property Web Page
You should create a web page for each of your listings. There are features
exclusive to the Internet that a real estate broker should include along with
all of the necessary information mentioned earlier in the unit.
Extra Items to Include
• Links for emailing the web page to clients
• Links for contacting the listing agent
• Printer-friendly brochures
• Online loan application
One very useful tool the real estate broker can include on a website is a virtual
tour of the property. A virtual tour ensures that visitors to your website can
imagine walking through the property and seeing it at its best twenty-four
hours a day.
Print Media
There are many types of printed materials that real estate brokers can use to
advertise their properties—newspapers, Yellow Pages™, homebuyer’s guides,
flyers and brochures, and outdoor signs.
Newspaper Advertising
The two types of newspaper advertising
are classified and display ads. Classified
ads are generally inexpensive text and
are one of the most popular methods
of advertising properties. Classified
ads are found in a separate classified
section of a newspaper and include
ads of all types. Properties are listed
under “Real Estate For Sale” and are
generally arranged alphabetically by area or city.
Display ads use graphics and photographs. They are larger, more sophisticated,
and more expensive. They are usually more visually appealing and have a
greater impact on the reader than a classified ad.
All newspaper advertising should target a specific audience. A focused ad
attracts attention by stating the benefits of the property. Residential display
advertising focuses on desirability and image. The ads should list the location
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of the property, special features and amenities, and contact information. The
advertising should give prospective buyers a reason to act quickly. This can be
accomplished by offering an incentive, such as “seller will pay buyer’s closing
costs,” if the property is sold within a certain timeframe.
Yellow Pages™
The Yellow Pages™ is still a good source for advertising. A real estate company
should have its primary ad in a consumer directory. Choose the Yellow Pages™
directory in which the majority of businesses advertise—including the Internet,
www.yellowpages.com™.
Homebuyer’s Guides
In many areas, homebuyer’s guides provide photos, amenities, and pricing of
available properties. These publications are offered free to the public because
you (and other brokers in the area) pay for them. This type of advertising
reaches a large amount of people, is readily accessible, and is located prominently
in racks at the entrances to stores and supermarkets. These guides may also be
found in airports, train stations, and bus stations. The publisher guarantees
the location and total number of magazines to be distributed. An ad can be
placed for local distribution, or more ad dollars can be spent to cover a larger
distribution area.
Many guides also provide online versions that are easy to use and contain the
same information. They include all of the same photos and information on
the website that is in the printed magazine. This allows the real estate broker
to reach potential buyers who primarily use the Internet.
Outdoor Advertising
Outdoor advertising is more than just billboards. Outdoor advertising
includes various types of advertisements, from traditional highway billboards
to inflatables. Outdoor advertising can be as high tech as illuminated buildings
or as simple as the ubiquitous yard sign. Regardless of the style, all outdoor
advertising is geared toward communicating a message to the public. The
benefit of outdoor advertising is that the ad cannot be turned off or put down,
unlike TV, radio, or print. With outdoor advertising, consumers cannot change
the channel, close the browser, or turn it off.
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The Outdoor Advertising Association of America (OAAA) classifies outdoor
advertising into four broad categories — billboards, street furniture, transit,
and alterative advertising.
Billboard Advertising
Billboard advertising is ancillary to other forms of advertising. Billboards are
the most common form of outdoor advertising, with those seen along highways
being the most popular. A billboard is a large outdoor sign (15 square feet
or larger) used for advertising purposes. Billboard advertising is expensive
and should be reserved for institutional advertising or for large residential
or commercial projects. It has the best cost benefit when combined with an
ongoing direct mail campaign and newspaper or Internet advertising. New
developments benefit from this type of advertising. A billboard has greater
value when placed at a visible location on a main transportation route with
high traffic counts, especially alongside major traffic arteries in cities.
Yard Signs
The billboard category includes
yard signs. Yard signs can be a very
effective method of targeting buyers for
a particular property or neighborhood.
When people want to buy in a certain
area, they will often drive through the
area in search of homes for sale. Yard
sign calls generate clients, and signage
is relatively inexpensive. In fact, a sign
should be displayed on a property even while it is being prepared for sale. This
type of planning may result in locating a buyer before the mass marketing for
the listing kicks in, which saves advertising dollars.
When using signs continuously in a geographic area or “farm,” you can build
a good reputation in the local community, which will draw more buyers.
The United States Constitution protects the right to display real estate signs
as a form of free speech. Even so, a city, county, or private entity, such as
a homeowners’ association may regulate the size of signs and how they are
displayed.
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Sign Regulations
• A city, county, or state may ban all signs on publicly owned
property.
• A city, county, or state cannot completely ban signs on privately
owned property.
• A city, county, or state may impose reasonable restrictions on the
time, place, and manner of displaying signs regardless of whether
it is on privately or publicly owned property.
Generally, private real estate signs are banned completely from public property.
However, a homeowners’ association cannot prohibit private owners from
displaying real estate signs on their own property. The signs must be reasonably
located in plain view of the public, be of reasonable dimension and design,
and advertise the property for lease, or give directions to the property. The
real estate sign may include the owner’s name, along with an address and
telephone number.
Street Furniture Category
The street furniture category includes benches, bus shelters, bicycle racks,
parking structures, kiosks, shopping mall displays, and in-store advertising.
Nearly every bus shelter has advertising and while sitting and waiting for a
bus, most of us will read the ads and study the pictures repeatedly. Many
real estate companies, rather than individual sales associates use this form of
advertising.
Transit Advertising
Transit advertising involves
advertising that is on vehicles
as well as positioned in the
public areas of transit stations
(bus, train, and subway) and
terminals (airport, train, ship,
and ferry). Magnetic signs for
car doors are a type of transit
advertising. Those of you who
want something a little more innovative could advertise with a custom car
wrap. Your entire car is wrapped with your eye-catching advertising message.
Unlike a static billboard, your wrapped car is mobile and gets attention
everywhere you go.
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Alternative Media Advertising
The alternative media advertising category includes advertising that reaches
consumers during specialized activities, such as scoreboards at sports stadiums.
Even grocery shopping is considered an activity. For example, you may notice
advertising on the shopping carts or on the parking bumpers.
Radio and Television Media
Radio and television are another advertising source. However, it is generally
very expensive. Real estate radio and television advertising lends itself
to developing brand recognition rather than generating leads. The one
exception is the cable TV shows that highlight specific properties in an
effort to generate leads.
Radio
Radio specifically targets a narrow market. Research the radio stations to
determine which of the stations reaches your target market. When scripting a
radio ad, repetition is effective. Run the ad frequently and offer an attentiongetting incentive to visit the property. Capturing the listener’s attention in
the first five seconds is extremely important with a radio ad.
Sometimes, radio stations have remnants of time and will run ads in unsold
minutes for a small fee. If a radio station has airtime that is not committed,
it might agree to charge airtime based on an agreed upon fee for each person
who responds to the radio ad.
Television
The cost of television advertising on the major networks during prime time is
exorbitant. However, television does offer some low cost advertising options.
Cable networks and small local stations sell a minute of time from a few
hundred dollars to a few thousand dollars. Local stations reach target audiences
in the local area.
Infomercials
An infomercial is a commercial in the format of a television program, usually
with a time length of 30 minutes. Infomercials are also known as direct
response television (DRTV) commercials or direct response marketing. The
main objective in an infomercial is to create an impulse purchase, so that the
consumer sees the presentation and then immediately buys the product through
265
the advertised toll-free telephone number or website. A well-known company,
National Recreational Properties, Inc., sold vacation property throughout the
United States using infomercials hosted by celebrities Chuck Woolery and
Eric Estrada.
SUMMARY
A salesperson uses a property marketing plan to reach the target market and
reach his or her goals.
The two main types of advertising are institutional advertising and product
advertising. Your advertising campaign should be intensive, evenly paced,
and scheduled to continue until the goals of the campaign are met. When
writing ads, use the AIDA formula and be sure to follow advertising guidelines.
Before you begin your marketing and advertising efforts, pay careful attention
to the guidelines associated with the real estate profession. State and federal
agencies regulate real estate advertising.
Advertising media are the different channels available to convey a message
to a target market. The major media channels are the Internet, print media,
outdoor media, radio, and television (network, cable, and syndicated).
Common ways to advertise on the web include banner and sidebar ads, pop-ups
(and pop-downs), floating ads, interstitial ads, unicast ads, and takeover ads.
The two types of newspaper advertising are classified and display ads. The
Yellow Pages™ is still a good source for advertising. The Outdoor Advertising
Association of America (OAAA) classifies outdoor advertising into four broad
categories—billboards, street furniture, transit, and alternative advertising.
An infomercial is a commercial in the format of a television program, usually
with a time length of 30 minutes.
266
UNIT 8 REVIEW
Matching Exercise
Instructions: Write the letter of the matching term on the blank line before its definition.
Answers are in Appendix A.
Terms
A. advertising campaign
F. product advertising
B. advertising media
G. promotional mix
C.AIDA
H. property marketing plan
D.billboard
I. transit advertising
E. classified ads
J. web traffic
Definitions
1.�� Combination of the promotional methods to reach the target market and
reach your goals
2.�� Detailed schedule of everything done to market a property
3.�� Advertising designed to promote a specific product or service
4.��Plan describing the mode and frequency through which someone
communicates a marketing concept
5.�� Formula used to write ads that attract the customer’s attention and
interest, create desire, and stimulate action
6.�� Different channels available to convey a message to a target market
7.�� Amount of data sent and received by visitors to a website
8.�� Ads found in a separate classified section of a newspaper
9.�� Large outdoor sign used for advertising purposes
10.�� Advertising placed on vehicles as well as positioned in public areas of
transit stations and terminals
267
Multiple Choice Questions
Instructions: Circle your response and go to Appendix A to read the complete explanation
for each question.
1. Which promotional method should a salesperson use to market a property?
a.Advertising
b. Direct marketing
c. Personal selling
d. All of the above
2. Which of the following would NOT be considered a technique for a successful
marketing plan?
a. Promote the least desirable features of the house
b. Use attractive, creative photos of the property to create interest in its special
features
c. Plan marketing activities such as open houses
d. Promote the property’s points of interest
3. In the AIDA formula, the first step is to:
a. get the customer’s attention.
b. give them benefits to create interest.
c. make the offer irresistible to create desire.
d. get the customer to act.
4. Advertising guidelines help real estate licensees avoid penalties and possible
suspension or loss of license. Which of the following phrases should be avoided in
advertising?
a. Exclusive neighborhood
b. Great for a single person
c. Great for an active person
d. All of the phrases should be avoided.
5. What is the commonality of banner ads, pop-ups, floating ads, and unicast ads?
a. Internet advertising
b. Print advertising
c. Radio advertising
d. Television advertising
268
6. Of the following, which must you a broker have just to be competitive in today’s
real estate market?
a. County club membership
b. Expensive car
c. Physical office
d.Website
7. What are the two types of newspaper advertising?
a. Classified and display
b. Cold and warm
c. Institutional and product
d. Pop-ups and pop-downs
8. Yard signs are included in what advertising category?
a. Billboard advertising
b. Transit advertising
c. Newspaper advertising
d. Alternative media advertising
9. Magnetic signs for car doors are what type of outdoor advertising?
a. Alternative Media
b.Billboard
c. Street Furniture
d.Transit
10. Of the following advertising media, which is usually the most expensive?
a. Classified ads
b.Internet
c.Television
d. Yard signs

introduction - I-Board Allied Schools

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