Unit 5:Target Marketing Grover, “Sales & Marketing 101 for Real Estate Professionals,” 3rd edition
Why segment the market? • Groups of people respond to stimuli in similar ways • Identify the similarities and use them to attract the group • Interest in fine music • Similar ages and family cycle • Interests in gardening • Equestrians
Qualified Market Segment Prospects within groups that have various commonalities must: • Have the ability to buy • Be ready and willing to buy • Have the authority to buy • Be accessible • Be profitable to work
Differentiated Market • A listing may be marketed differently to different groups. • Some agents take different kinds of listings to satisfy the needs and interests of different groups.
Market Commonalities When people have things in common they are easier to find: • Families with 10-year-olds—soccer fields • People who like golf • Shoppers • Those in a particular political party Although different, they are more easily found
Market Commonalities • Create a marketing mix for a segment of the market • Like a needle in a haystack, if the mix only appeals to fragmented groups the sale will take longer
Demographic Segmentation • Age • Income • Gender • Family Life Cycle • Marital Status • Career Fields
Geographic Segmentation • Population locations • Residence locations • Climate • Regional preferences
Psychographic Segmentation • Lifestyles • Needs • Motives • Attitudes and perceptions
Product Segmentation • Benefits sought from the property or service • Types of properties • Loyalty to a builder or floor plan
Decision Making Process Determine accessibility Determine needs and benefits of the group Determine the size of the group Identify the market segment
Identify the Market Segment • Total market is made smaller by using a number of variables • Subgroups must be sizeable to be profitable • Extrapolate statistics to the local area Examples of market segments: • People in your farm area • Families in a community • Radio station listeners • People who make a similar income • Subscribers to the same magazines • Sports enthusiasts
Determine Groups Needs and Accessibility Needs • Four-bedroom home buyers • People who need respect, friends, or want to save time • People who need to belong (country club, Rotary, etc.) • A better life for family Accessibility • How do you find them? • Research may show • Country western enthusiasts listen to country stations, buy boots and western wear, dine out in local specialty restaurants
Determine the Size of the Group • Develop promotions after discovering the target market • Target market should share similar interests, demographics, and psychographics
Target Market Which of the following was written for a target market? Can you describe the target market?
Target Market ANYCITY AFFORDABLE Three-bedroom, two-bath, 1845-square feet home; fenced and partially landscaped, living room, breakfast nook, long patio and circular driveway. This won’t last long, so act now. It’s only $XXXX ANYCITY VALUE Excellent three-bedroom, two-bath home for the first-time buyer or commuter. Where else can you enjoy the warmth from a fireplace this winter at such a low price? All financing available, and only $XXXX
Approach to the Market Mass Marketing • Use when commonalities can’t be found • Use if there is no competition • If there is competition then differentiate your listings or service
Approach to the Market Niche Marketing • Decide where you have an advantage; for example, retirees • Develop a marketing mix for that group • Direct all of your marketing efforts towards that group • Before starting, make sure the group is large enough
Approach to the Market “What everyone knows is valueless.”
Approach to the Market Market the same listing to different segments
Approach to the Market Research NEVER ends.