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Real Estate Marketing In Crisis Periods New

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The first of the two workshops presented in Bucharest and sponsorised by CIJ.

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Real Estate Marketing In Crisis Periods New

  1. 1. Real Estate Marketing in Crisis Periods Part 1 To make a difference in a crowded real estate market “ During an economic downturn you need to increase your marketing dollars to ensure you are ahead of the competition” Kate Coldwell, Chief Marketing Officer Thomson Reuters 27 th of January, 2009 – Radisson SAS Hotel, Bucharest CIJ Progressive Learning Program Presented by Adrian Niculescu
  2. 2. Real Estate Marketing in Crisis Periods <ul><li>In a period like this it is mandatory to invest in marketing to place the offers in front of potential customers and is very important to maximize the effect with the same or less budget than before – techniques, actions to be done, ways to measure the impact; </li></ul><ul><li>In a crisis situation, the communication of positive things about the company’s activity is very important. Why to do this and how? </li></ul><ul><li>  </li></ul><ul><li>Real estate fairs in Romania – analysis from the crisis point of view; key points for smarter attending both as visitor and exhibitor; </li></ul><ul><li>  </li></ul><ul><li>How to keep the regular clients warm and to attract new customers; </li></ul><ul><li>Internal communication – to grow the synergy between sales and marketing department; </li></ul><ul><li>Marketing for new projects on behalf of the developers – which are the main activities to be done with a slashed budget and how to maximize; </li></ul>
  3. 3. Real Estate Marketing in Crisis Periods <ul><li>Major changes </li></ul><ul><li>Almost everybody has offers and only the clients are missing; </li></ul><ul><li>The crisis will reveal who are the true professionals; </li></ul><ul><li>Agents will have to be twice as pro-active than before dealing with the developers and clients; </li></ul><ul><li>Before the moment when the clients will not come anymore through regular channels, the agents will have to leave the offices and go in the field to find them, discuss with them, negociate and secure deals; </li></ul><ul><li>Agents became more than ever consultants for the customers; their responsibility is greater than ever in giving proper advices and directions and only the ones which will provide reliable solutions will remain on the market; buyers are afraid to invest, developers are afraid to go further; the good news is that there are still money in the market and good spot deals can be done; </li></ul>
  4. 4. Real Estate Marketing in Crisis Periods <ul><li>Example with the penthouse bought with 800000 euros in 2007 and sold as a matter of urgence with 450000 euros at the end of 2008; </li></ul><ul><li>Play like playing your own money; this will give more sense to the game; Current situation exposed at MICE 2008 by the indian Silver Sponsor; </li></ul><ul><li>Be a reference person in the domain you are active; this will assure for you and the company you work for a very good image in the market; </li></ul><ul><li>Improve the knowledge in other domains related with your current work. This will help a lot in the discussions you will have with your partners. </li></ul>
  5. 5. Real Estate Marketing in Crisis Periods Make the most of your marketing spendings: Should be measurable, accountable and scalable; You should only pay as much as you need to and you should get what you paid for; Advertising should be flexible. You should be able to start, stop or cancel your media buy at any time you choose; Your communications should be asset-based not campaign-based; Be innovative!
  6. 6. Real Estate Marketing in Crisis Periods <ul><li>There are four generations in the active population: </li></ul><ul><li>Traditionalists – born between 1925 and 1942 – retired </li></ul><ul><li>Baby boomers – born between 1943 and 1960 – retiring </li></ul><ul><li>Generation X – born between 1961 and 1976 – managing </li></ul><ul><li>Generation Y – born between 1977 and 1995 </li></ul><ul><li>The meaning of word “cool” is different among generations </li></ul><ul><li>– this word was imported in Romanian; </li></ul><ul><li>To communicate better with Generation Y: </li></ul><ul><li>as few words and many images possible; </li></ul><ul><li>think in text messaging format – short, very short, efficient messages; </li></ul><ul><li>communicate with them frequently </li></ul><ul><li>Case study: Barrack Obama’s campaign focused on social networks </li></ul>
  7. 7. Real Estate Marketing in Crisis Periods <ul><li>The business is moving towards online and real estate doesn’t make any exception; </li></ul><ul><li>The problem in Romania, especially related with residential new projects was that they had nice looking websites (sometimes similar one with each other), the sales went off-plan and at the completion there were delays or even differences from the original blueprints; </li></ul><ul><li>The online doesn’t mean only the project’s website. The project and the website will have to appear in the news websites because these are the most accessed resources by the potential customers through advertising, banners, press releases, advertorials the aim being to create awareness for the website and the project itself; </li></ul><ul><li>When you make the SWOT of the project, identify the needs which will be fulfilled, transform them in keywords and optimize the website according with them. </li></ul>
  8. 8. Real Estate Marketing in Crisis Periods <ul><li>Recomandations for Crisis Budgets </li></ul><ul><li>Use specialised TV shows to present the projects – sales leads; </li></ul><ul><li>Sponsorships of conferences, co-brand them with newspapers and magazines like ZF, Capital, Business Magazin, CIJ – brand awareness; </li></ul><ul><li>Classic outdoor – brand awareness; </li></ul><ul><li>Multimedia outdoor – brand awareness, good new solution; </li></ul><ul><li>List the projects in as many as possible portals with related content; many listing will offer a link towards the project’s website, and are free or offer a low cost due to the specific business model; </li></ul><ul><li>Affliliation, MLS systems – case study – how to build a network of partners in Romania and abroad (especially for residential); </li></ul><ul><li>Presentation of projects in shopping centers; </li></ul><ul><li>For finished projects to sponsor spending a night or a weekend; </li></ul><ul><li>E-mail based campaigns – take care of spam related complaints; </li></ul>
  9. 9. Real Estate Marketing in Crisis Periods <ul><li>Things to be avoided </li></ul><ul><li>Leaflets for new residential projects in underground stations; </li></ul><ul><li>Using of non trained marketing and sales people – customers need to trust the sales & marketing team – on behalf of the agency or the developer and only in-depth knowledge of the project will give customers confidence that the deal will be a safe one and according with the needs; </li></ul><ul><li>Huge spendings on services like Google Adwords; this strategy is very good especially for the transactional sales; for consultancy sales this have to be combined with other more content related features – press releases, blog articles, meetings; </li></ul>
  10. 10. Real Estate Marketing in Crisis Periods <ul><li>Positive communication </li></ul><ul><li>In a crisis period, where differentiation will play a major role which will be the favourite agent to work with? </li></ul><ul><li>The one complaining about the decrease of sales? </li></ul><ul><li>The one which doesn’t communicate anything in the market, just does the job? </li></ul><ul><li>The one communicating positive things about the activity, even transactions, making observations about the crisis and how they adapt the business to the new conditions? </li></ul><ul><li>The finalists for sure are 2 and 3 but for the same commission we will rather choose 3. </li></ul><ul><li>Communicate positive with clients, with suppliers, with developers, </li></ul><ul><li>with press, of course all these to be related with the current market conditions. </li></ul><ul><li>Case study: testing the communication in a company with 200 employees. </li></ul>
  11. 11. Real Estate Marketing in Crisis Periods <ul><li>Real Estate Fairs and Exhibitions in Romania </li></ul><ul><li>Still the main focus of the fairs in Romania is residential. </li></ul><ul><li>Last year we saw also the first office event. </li></ul><ul><li>Between 5 th and 8 th of February will be TNI, this year’s first edition. </li></ul><ul><li>In this period, there have to be sent to the fairs the best agents because there are chances to be caught some clients with funds available which are trully afraid to invest and will need a very serious and reliable advice from your staff. If you will have beginners or hostesses “just to look good” you will likely loose the oportunities. </li></ul><ul><li>Considering the stand as a mobile showroom for what you sell, the main objective will be that potential customer to come back at your office or showroom. </li></ul><ul><li>Give proper attention to edit your info on CD’s rather than brochures because this is the trend. </li></ul>
  12. 12. Real Estate Marketing in Crisis Periods <ul><li>Due to the crisis, many of the projects which are now in off-plan stage (residential mainly) will be completed with delays or will not be completed at all. Even if they will be completed it is very hard right now to convince clients to make advance payments based on a plan and maybe a sample apartment. </li></ul><ul><li>You have to show at least a structure, but a red stage is better, to offer guarantees that if the developer will not finish the job, the financing bank will do. </li></ul><ul><li>In the past, the sqm price vs common spaces vs total surface built was a marketing instrument. Now, people are interested in the whole budget (how much they have to pay) vs the surface so don’t advertise the sqm offers. </li></ul><ul><li>For agents, when you fill the visitor form and you see the client’s interest for something different than you have, act immediately and give the contact to your colleague, because, as we said, the clients are the most important pieces! </li></ul>
  13. 13. Real Estate Marketing in Crisis Periods <ul><li>In other countries, like UK, for example, agents, even if they are hard competitors they cooperate one with each other. In Romania, in the first day most of the visitors are spy clients. </li></ul><ul><li>It is important to visit your competition to have a wider view of the market. Clients like agents and sales people on behalf of the developer who can answer parralel questions about what they actually sell, to be able to sustain a comparison, to know market data, and any source is to be taken into consideration, even the competition. </li></ul><ul><li>I strongly recommend also for this year going at least as visitor at the important (for your company’s activity) real estate fairs abroad. </li></ul><ul><li>When you don’t find the clients within the country, but can be abroad, somewhere, go and get them! </li></ul>
  14. 14. Real Estate Marketing in Crisis Periods <ul><li>About keeping warm current customers and get new ones </li></ul><ul><li>The cheapest way is through e-mail campaigns; send weekly updates about your activity to the regular customers – new offers, even press articles which can be of interest, because you don’t have time to call; also include in the e-mails the facility “send this e-mail to a friend” where you will have a free recommandation (possible lead) for your projects/ offers among two people trusting each other. </li></ul><ul><li>It is a great facility which can bring you new prospects. </li></ul><ul><li>Search the press – which company has a booming activity which can require additional space in the future, companies having intention to come in Romania, acquisitions, domains with a big increase. </li></ul><ul><li>Even there is a crisis period there are domains where is expected a sustained growth – food related products, as example. </li></ul><ul><li>Due to the development of retail, in Europe it seems like the industrial spaces market will be quite the most important anchor for the industry. </li></ul>
  15. 15. Real Estate Marketing in Crisis Periods <ul><li>In 2009 we saw in UK the first industrial Green project. In Romania, the first office Green project is Euro Tower. </li></ul><ul><li>The Green segment will develop in the next years and will be analysed in the next seminar. </li></ul><ul><li>Go as visitor to all other exhibitions where can be found clients for your projects – retail customers for the apartments, tennants for office and industrial space. </li></ul><ul><li>Attend as much as possible business events and seminars. You can meet there people very hard to be reached by normal channels – secretary, phone calls. Also you associate yourself with the community participating at events. </li></ul><ul><li>Case study: associating products and services with pleasant experiences. </li></ul>
  16. 16. Real Estate Marketing in Crisis Periods <ul><li>Internal communication </li></ul><ul><li>In this period more than ever the marketing and sales department have to work very close to be able to identify the newest trends and oportunities in the market. </li></ul><ul><li>If we are talking about a real estate agency, all leads have to be very carefull taking into consideration and analysed, because, I repeat, the client is the most important. </li></ul><ul><li>The whole idea is to offer within the company or through accredited partners 360 degrees, services, to function like a one stop shop. Even if you don’t have in the portofolio all the services required to be able to make an immediate recommandation. </li></ul><ul><li>For the sales agents, the recommandation is to gather a double specialty (ex. residential + office, land + industrial) to face the changes among the activities without delays related to new trainings. </li></ul>
  17. 17. Real Estate Marketing in Crisis Periods <ul><li>Internal communication </li></ul><ul><li>In this period more than ever the marketing and sales department have to work very close to be able to identify the newest trends and oportunities in the market. </li></ul><ul><li>If we are talking about a real estate agency, all leads have to be very carefull taking into consideration and analysed, because, I repeat, the client is the most important. </li></ul><ul><li>The whole idea is to offer within the company or through accredited partners 360 degrees, services, to function like a one stop shop. Even if you don’t have in the portofolio all the services required to be able to make an immediate recommandation. </li></ul><ul><li>For the sales agents, the recommandation is to gather a double specialty (ex. residential + office, land + industrial) to face the changes among the activities without delays related to new trainings. </li></ul>
  18. 18. Real Estate Marketing in Crisis Periods <ul><li>Marketing for new projects on behalf of the developments </li></ul><ul><li>Crisis period means fewer clients and many developers will not be happy anymore working with only one agent. The favourite agent will be the one with a client ready for securing the deal. </li></ul><ul><li>The cooperation will have two segments: marketing the project itself and taking care of the marketing budget if this will be agreed this. </li></ul><ul><li>The developers need focus on their project which is something not easy to be done cooperating with big agencies with many projects and the agency will need to sustain and apply focused strategies. </li></ul><ul><li>They will need not only agents placing offers on the websites but will need agents which will identify the client profile and will put the offer in front of them. </li></ul><ul><li>Also they will need solutions which will not force them to block huge amounts upfront without seeing results so the aproach shoul be a step-by-step one. </li></ul>

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