© 2011 Cengage Learning

Advertising and Marketing Chapter 15 © 2011 Cengage Learning

RATIONALE FOR CHAPTER Getting listings isn’t enough! The agent has to sell them to have satisfied customers and get paid.

© 2011 Cengage Learning RATIONALE FOR CHAPTER This chapter will present you with effective methods of advertising and marketing that will attract buyers and sellers. Emphasis is placed on the Internet as fully 90% of buyers now start their home search there!

© 2011 Cengage Learning Focus of Presentation This chapter will teach you the difference between advertising and marketing and how to maximize the benefit of each. You will learn basic advertising guidelines and how to use the AIDA formula to create effective ads that produce results.

© 2011 Cengage Learning Focus of Presentation The growing value of the Internet and e- mail as advertising mediums will be discussed. You will learn how to monitor where your customers are coming from. The value of niche marketing is discussed in detail.

© 2011 Cengage Learning CHAPTER FIFTEEN OUTLINE 15.1 ADVERTISING AND MARKETING 15.2 A BUDGET FOR YOUR BUSINESS PLAN 15.3 THE ADVANTAGES OF NICHE MARKETING 15.4 COMPLIANCE WITH DEPARTMENT OF REAL ESTATE AND STATE AND FEDERAL STATUTES

© 2011 Cengage Learning ADVERTISING AND MARKETING Advertising Function of advertising. Function of marketing. Specific advertising and its focus on immediate results.

© 2011 Cengage Learning ADVERTISING AND MARKETING Institutional advertising and its focus on image building. AIDA approach to writing effective ads. Advantage of painting word pictures when writing ads and the effect they have on buyers’ emotions.

© 2011 Cengage Learning ADVERTISING AND MARKETING Various types and effectiveness of personal advertising. (company name tag, business cards, the Internet and classified advertising) Why are consumers moving away from printed advertising and increasing their use of the Internet? what opportunities that trend presents to the astute real estate agent and company

© 2011 Cengage Learning ADVERTISING AND MARKETING Importance of proper identification of real estate firms and agents in advertising and the sanctions that can be given to violators who place blind ads. Proper use of floor time and how to monitor ad calls received by the floor agent.

© 2011 Cengage Learning ADVERTISING AND MARKETING advertising etiquette

© 2011 Cengage Learning ADVERTISING AND MARKETING Internet used as an advertising and marketing medium Call-capture 800 numbers how they work what they cost how effective are they

© 2011 Cengage Learning ADVERTISING AND MARKETING Effective ways to use direct mail. Use of real estate magazines and whether they are better for advertising, marketing, or both. benefit of stating features in each ad, tied to a benefit to the consumer reading the ad to call the agent.

© 2011 Cengage Learning ADVERTISING AND MARKETING Marketing Goals as compared to advertising. Display advertising and the cost involved. Use of radio and television and who can afford their use.

© 2011 Cengage Learning ADVERTISING AND MARKETING Direct mail from the viewpoint of the individual agent and the company. Newsletters and how often they must be delivered to be effective. Telephone directories and press releases.

© 2011 Cengage Learning ADVERTISING AND MARKETING Specialty gift giveaways used in conjunction with other forms of advertising and marketing. which giveaways, such as refrigerator magnets, are effective due to constant visibility while others are put in drawers and forgotten. Outdoor advertising and whether you think it is effective or not.

© 2011 Cengage Learning A BUDGET FOR YOUR BUSINESS PLAN Discuss the financial commitment that must be made by real estate agencies and agents in order to tell their story, attract listings and attract buyers to buy those listings.

© 2011 Cengage Learning A BUDGET FOR YOUR BUSINESS PLAN Discuss the process of creating an advertising and marketing budget and the average percentages of gross commission income that most successful real estate firms and agents set aside for this purpose.

© 2011 Cengage Learning A BUDGET FOR YOUR BUSINESS PLAN Advantage of increasing or decreasing a budget in response to current or anticipated market conditions.

© 2011 Cengage Learning THE ADVANTAGES OF NICHE MARKETING What it really is – a specialty market. Discuss how a strong focus on a specialty or niche market (the saturation effect) can raise agent awareness of the details of a particular market and can raise consumer awareness of a firm’s or agent’s presence in a particular market.

© 2011 Cengage Learning THE ADVANTAGES OF NICHE MARKETING Increased mutual awareness what does it do to consumer confidence in the newly discovered “name brand”

© 2011 Cengage Learning THE ADVANTAGES OF NICHE MARKETING Examples of niche markets Identify other niche markets you are working successfully.

© 2011 Cengage Learning COMPLIANCE WITH DEPARTMENT OF REAL ESTATE AND STATE AND FEDERAL STATUTES Discuss the various agencies that regulate advertising and the importance of complying with those regulations. Real Estate Commissioner’s Rules and Regulations Federal Consumer Protection Act (Truth in Lending Act) Using the text, discuss the various Code Sections that govern real estate brokerage and lending.

© 2011 Cengage Learning COMPLIANCE WITH DEPARTMENT OF REAL ESTATE AND STATE AND FEDERAL STATUTES Using the text, discuss the real estate commissioner’s regulations cited as part of Article 9. Article 12 of the NAR Code of Ethics as it applies to advertising and marketing. Truth in Lending Act (especially Annual Percentage Rate)

© 2011 Cengage Learning COMPLIANCE WITH DEPARTMENT OF REAL ESTATE AND STATE AND FEDERAL STATUTES Discuss “bait-and-switch” activities and how to avoid them. Consumer’s rescission rights Exemptions