 Q: Why do you think so many local builders turn to your firm for their advertising and marketing campaigns?
MB: It's hard to match our experience and track record. As near as I can figure we have helped market enough homes to fill a small city. That includes over 20,000 homes, 300 master-planned communities and subdivisions. We've worked with over 40 homebuilders in one fashion or another.
It also because we understand the underlying issues and challenges in the homebuilding industry.At the same time we know that each builder is unique. Each has a different operating philosophy. Each has their preference for the kind of business they run.
Quite often they have product differences and their buying publics are different. We are able to distinguish what is special about each company and communicate that message.
At the end of the day they want the same thing: to attract the right kind of buyers in sufficient quantity to make their sales goals.
Q: What are the key ingredients of a successful marketing campaign for a homebuilder?
MB: First you need the right product at the right price in the right location. The old adage of buying the dirt right at the right price still applies. After that, marketing can play a significant role. Positioning the community in the mind of the buyer is critical. Then you put the elements together. There are three elements: Advertising and PR, REALTOR (TM) marketing and effective salesmanship.
Q: What is the difference, if any, between advising a Tucson builder vs. one in a larger market like Phoenix or Las Vegas?
MB: Let's take Phoenix. The cost of advertising in Phoenix is significantly higher to run ads in the Arizona Republic, and on radio and television. In larger cities like Phoenix the market becomes regionalized. In other words you usually don't run across town for pizza. If you have a subdivision on the growing west side, it usually doesn't make sense to try to pull buyers from the east valley. So there's more emphasis on localized marketing efforts.
Regionalization is just starting to take place in Tucson. However, we still see buyers coming from the northwest side to settle into the Santa Rita Foothills area on the southeast side of town. Santa Cruz county to the south Southern Pinal County and eastern Cochise County are becoming a part of our regional market.
Q: What new trends do you identify in advertising new homes and communities?
MB: The Internet. 85% home shoppers looked on the Internet to find their next home. Almost 80% felt that the Internet played a major role in their purchasing decision. The buyer who uses the Internet is more informed and more ready to purchase. In fact they physically look at only four to six homes and they spend less than nine minutes in a model home.
I'm not sure most builder sales people grasp the significance of the Internet buyer. For example I think that each sales associate should have their community web page set as their home page on their computer in their model center office.
They should be doing housekeeping everyday to ensure their community site is updated with current pricing information, product listings and other pertinent information.
There's a lot to be done in this particular area and I think you'll see builders put even more resources and investment dedicated to Internet marketing in the next few years.
Q: In your professional opinion wghat is the role of targeted magazines in the homebuyer market?
MB: Is this a trick question? (Bolchalk smiles) We like magazines to reach homebuyers and we utilize them a quite lot. Magazines allow advertisers to segment their audience by a variety of demographic components: including income, age, area of residence, things like that.
And psychographics as well -- like readers' attitudes about things that interest them as well as the kind of vehicles they drive, products they buy, stuff like that.
Magazines allow the reader to study the ad on their time schedule. And the advertisement has a longer shelf life than most other media which is a nice advantage for a builder.
Q: What is your experience with advertising during slow real estate markets?
MB: Builders are always looking to maximize their advertising efforts. At the same time a slow down in the market stimulates a reassessment of just about everything including advertising effectiveness. In softer market conditions builders generally tend to be more innovative and creative to ensure they are doing everything they can do attract the right prospect to their sites. Then of course, once they have determined the shopper is a qualified prospect they must do everything in their power to convert them into a sale.
Q: What is your perception of the future of newspaper readership?
MB: In the business press there is much hand wringing and angst about the future of newspapers. My view is that newspapers remain a viable and strong advertising medium. You simply cannot ignore the circulation and high daily reach of the daily newspapers in the metro areas.At the same time there is great concern about reaching the under 35 audience.
Q: What advice do you have for builders during 2007?
MB: That's easy. Improve the effectiveness and creativity of their sales force efforts. Many or most of the sales people have sold only in good, very good or great market conditions. Now effective sales people are needed by builders. Builders need to attract those with the best selling skills. I think most sales people do not want to invest in their own professional improvement. They rely exclusively on their builder to bring them customers. Today's builder sales representatives should develop their own referral sources and cultivate REALTOR (TM)relationships independent of their builder.
Rather than sitting in their model sales office waiting for customers they should learn that selling new homes is a relationship process that is multi-faceted and is a never ending multi-faceted process.
Author Tom Whittingslow is a marketing communications consultant and free lance writer. His articels have appeared in numerous national and international publications. He can be reached at tomwhittingslow@msn.com. |
