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Marketing. Budget for it.

Marketing. Budget for it.

   

Adjusting the Marketing Budget?

I have never had a client that did not rely on a marketing budget as a guideline and many view compliance as a measure of management competency. In the marketing classes that I teach, we refer to problem solving and sustaining advertising. The high-cost of problem solving advertising, (usually three times more than sustaining advertising in time and dollars) is usually a result of poor budget planning. If you have considered these ideas, there is no need to re-invent your marketing budget. If not, it may not be too late to make adjustments for 2009.

Making Money? 

The purpose of the marketing plan and budget is to generate revenue. Do not overlook any areas of spending that are generating income now. Consider doing more if the pay-off is there. So analyze past strategies and tactics before deciding which ones to repeat. Budget for it!

Also, remember that the allocation of dollars must reflect the seasonal trends that affect occupancy. Depending on your market, there will be times when you have greater exposure and will need to campaign resources to elevate interest. Along the way, an incremental review of the plan and current market conditions may stimulate adjustments or a slight tack in your direction. If the marketing strategy and related tactics are well thought out, it is generally wise to stay the course. Be sure to consider the real cost of every strategy. Budget for it!

Time IS Money

Often a dimension that is overlooked in the budget is the cost of time. Unless there is a corporate individual posting Internet ads, it is important to budget someone's time on-site to post ads on a variety of FREE sites daily. The salespeople NEED to be expert relationship builders, lead managers and closers. Unless you are overstaffed, consider getting someone else to manage the social media. Let the salespeople sell! Don't forget to budget for sales incentives. Consider recruiting interns to handle the web-activity and the e-mail marketing! Budget for it!

Is there a Constant Drip of Lost Leads and Revenue?

Who is looking at lead management? A regularly scheduled review of lead management can be spearheaded by the Marketing Manager or another designee. At most communities, there is a constant drip of lost leads and revenue because this is overlooked. Every member of the office team manages their own leads within the system that you provide. Who is looking at the system's reports, evaluating performance and coaching for leasing goals? Budget for it!

Marketing Path!

Curb appeal and the MARKETING PATH have to be a priority -- it's all about creating the best customer experience to promote word of mouth advertising. The marketing path is everything from signage and landscaping to the visible hospitality area and sales center with attractive marketing tools like large area maps that emphasize the community's advantageous location. When it comes to refreshments, only a consistent effort works, so budget so that you will not run out of hospitality items. Determine whether or not hospitality is a line item in your marketing budget. Model apartments are important; communities that merchandize a unit have better leasing results; so budget for this and avoid the temptation to close it down when occupancy increases. You will likely realize that you need it later.

If you can see it, smell it, feel it, sense it, taste it, it's hospitality marketing. Make it a BIG , WARM  welcome! Budget for it.

 What are They Taking with Them?

Sales collateral has to be crisp, provocative and accurate. The content must address your competitive edge in the market place and emphasize your unique selling features. Though many are viewing your on-line ads, prospects who visit the community before leasing still represent the majority of your customers. 

Getting it Done

The essential marketing programs are the ones that work year after year. One example is the resident referral program. It's low cost and it always works. The key is to administer it properly.  This means budgeting the time to develop and maintain a process so that residents get paid on time. The same goes for curb appeal and everything related.

Current Resident Input?

Before finalizing the budget, check with your residents. Surveys and in-person focus groups with our captive audience are invaluable. Go to the source to find out what they are looking at and responding to. Capture resident and prospective resident e-mail addresses so they can be surveyed by e-mail from time-to-time. There are several FREE and low cost survey vehicles on line that are easy to use.

Target Customer?

Take a realistic look at your demographics. For example, Baby Boomers account for 50% of all U.S. discretionary income and 65% of the average household worth.1 By the year 2015, about 45% of the U.S. adult population will be 50 or better.2 With this in mind, marketers should acknowledge the buying power that Baby Boomers have. This generation accounts for $1.5 trillion in discretionary spending*1 They are often "renters by choice".

B2B?

Consider the appropriate level of outreach to neighborhood influencers, networking and the related collateral and give-a ways. Savvy outreach includes B2B, (business to business) trade agreements and referral programs, interaction with prominent area employers and mutually beneficial promotions with area merchants. Many companies have adopted a virtual concierge site on their resident portal. Good neighbor and public opinion programs can be very effective to create that positive perception and build trust in your company and apartment community. 

Start Fresh

Also, integrate zero-based budgeting with traditional methodology. "Zero-based budgeting is a technique of planning and decision-making which reverses the working process of traditional budgeting. In traditional incremental budgeting you justify only increases over the previous year budget and what has been already spent is automatically sanctioned. No reference is made to the previous level of expenditure."*

Zero Based?

 By contrast, in zero-based budgeting, every department function is reviewed comprehensively and all expenditures must be approved, rather than only increases. Zero-based budgeting requires the budget request be justified in complete detail. The zero-base is indifferent to whether the total budget is increasing or decreasing.

What's New?

There are many "new ways" to market. Every budget should try something new; a calculated risk" when other plans have not succeeded. Find out what your competitors are doing that works and then try a "blue ocean" strategy if your owners will let you. And if you do not know which new program you are going to try this year, budget some CONTINGENCY dollars so you may at least be able to react to an unexpected marketing problem without loosing your integrity as a planner.

Tracking Web - Results?

 It is always a challenge to tie results to every marketing program. The more you can show the value of your marketing, the more empowered you will be.

AS an aside; remember when you sign up for those paid Internet sites, be certain that the leasing team/sales team know where you are advertising. Now that everyone Goggles for apartment listings, the real challenge is; "Which site did they see?" It could make sense to check out Google Ads this year if you haven't already.

And then there is your community web-site and Google Analytics; check it out. Try googling "Google Analytics tips" When you click through the statistics you will see how many people are coming to your site and how much time they are spending; and generally how effective the site is.

Just some thoughts; happy budgeting!

Copyright 12.08.08 Kim Andreadis, Marketing Strategist   http://www.marketingpath.net/

*1 After 50 Marketing LLC

*2 Wikopedia

 

 
This comment was minimized by the moderator on the site

I would also add that marketing to your own residents is a critical exercise in this economy. It's getting more challenging to get new applicants in the front door, so closing the back door is going to be important in order to maintain and even grow NOI. Do your residents know you have online services? Do they have the office email address? Are their service requests being resolved quickly? Internal marketing is a sound investment in addition to Kim's recommendations.

  Jen Piccotti
This comment was minimized by the moderator on the site

Kim,
Excellent post. I am curious if you feel it is important to define your target market(s). I am a firm believer in spending the time to really understand your target(s) and crafting your marketing strategy and messages to reach them. Smaller outlay and improved reach being the goal.

  Sondrah Laden

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