ADVERTISING AND PROMOTIONAL SYSTEMS – AGENCY



Advertising to be effective must hit the target market as efficiently as possible. This involves market research. Complete market research methods are outside the scope of this unit but the agent should discover:

To answer the above questions you need statistics for your area.

There are 5 important factors of advertising and promotion:

Another concept that is used by agents is AIDA:

A ATTENTION – the campaign must gain the target market’s attention.

I INTEREST – you must maintain their interest

D DESIRE – use image and creativity so they desire to see the property.

A ACTION – create a sense of urgency “don’t miss out!”



Media for effective presentation and promotion

Your aim is to advertise and promote the subject property to get an inquiry and from that inquiry, obtain a buyer. The media that can be used for advertising and promotion include:

Local, regional and state newspapers

These will be briefly covered.



NEWSPAPERS

Which newspaper you choose will depend on the types of property for sale. Generally, real estate is advertised on a Friday for local and regional newspapers and on a Saturday for a state newspaper such as the Sydney Morning Herald. The agent can advertise in the dedicated real estate section (most effective but dearer) or in the classified section.

Additional exposure may be obtained by submitting and real estate editorial about the subject property for “free” exposure. If successful this is the method that gains most exposure. However, the newspaper will favour large and regular advertisers for these.



NEWSLETTERS

Newsletters are less effective for rural properties then for urban properties. The local post office will drop off a flyer for a small fee in road side mailboxes. If the target market is local or neighbouring peropties then this could be an effective method of promotion.

The newsletter should be “newsy” and contain useful local information such as market trends, properties sold or new zoning laws and regulations.

Try to make it professional looking and it will pay to employ a graphic artist in this regard. Have plenty of pictures (3 per page is a good rule). Try and produce one bi monthly.



SEMINARS AND SPONSORSHIPS

The use of seminars for rural properties is less common than for urban (especially investment) properties. However, you could sponsor an industry seminar. Seminars would be more suitable for hobby farms so you could have an introduction to agriculture or small holding agriculture seminar.



FOR SALE SIGNS

Again, for sale signs are less important for rural properties than urban properties. The signboard is most important in a town as the house will tedn to sell itself. Rural properties on the other hand are difficult to see from the road side and therefore, the signboard should include as much relevant information as possible. If the homestead cannot be seen then a picture of it would be worthwhile.

The main purpose is to alert local potential buyers who drive past that the property is on the market. However, for remote properties the passing traffic is so small that only a modest sign should be used mainly to allow potential buyers to find the property.

The following worksheet can be used to determine the features that should be promoted:



ADVERTISEMENT WORKSHEET



ADDRESS:………………………………………………..

LOCATION (AREA):……………………………………….

LAND USE:…………………………………………………..

MOST APPEALING FEATURES:…………………………….

…………………………………………………………………….

………………………………………………………………………..

……………………………………………………………………………

LIST 5 OTHER FEATURES AND BENEFITS:



FEATURE

BENEFIT

1


2


3


4


5




TARGET MARKET – SELECT ONE OR MORE:

[ ] First time farmer

[ ] Experienced farmer

[ ] Hobby farmer

[ ] Lifestyle change

[ ] retiree

[ ] Investor

[ ] Specialist or agribusiness user

[ ] Other

FACTS

TENURE:………………………………………….

AREA:……………………………………………..

DISTANCE FROM TOWN/CITY……………………….

DISTANCE FROM SYDNEY:……………………………

IMPROVEMENTS:……………………………………………..

CURRENT CARRYING CAPACITY………………………….

OTHER:………………………………………………………….

ASKING PRICE:……………………………………………….



This useful information sheet will not only help you decide the features to advertise and promote but the summary of information is useful for office staff when answering questions.



BUDGET

It is all very well to devise the best adverting and promotion campaign but that is of no avail if your client cannot afford it. The campaign must be to a budget and it is desirable to have a number of campaign options to allow the seller to choose the best campaign that he/she can afford.

The cost of advertising is cheaper through a large agent than if the seller advertised him/herself because the agency has pre booked a number of full pages in the real estate section of the newspaper. The pages are then subdivided and sold to the agency’s clients.

The cost will also depend upon the newspaper’s circulation. The Sydney Morning Herald (SMH) is much more expensive than the local paper because of its large circulation (over 1 million for the weekend four real estate section). The following are comparative costs for a small advertisement in different newspapers:




Cost

Circulation

Cost/circulation

Large city

$400

1000000

$0.0004


Regional

$200

40000

$0.005


Local

$120

22000

$0.0055


Trade (weekly)

$420

55000

$0.0076



The large city paper has the best ratio of costs/circulation and is the cheapest advertisement against circulation. However, the cost is double to four times that for regional and local newspapers so that you would only advertise in the large city newspaper if the circulation is a large part of your target market. It would be well worthwhile for a hobby farm close to the large city (less than 31/2 hours drive) as your target market will be city dwellers looking for a life style change.

The extra cost would not be warranted when the hobby farm market are local town or city dwellers. Nor would it be warranted for a larger economical farming unit as your target market will be experienced farmers who most likely live in the region. For the large farm the trade weekly (such as The Land) may be the best medium as its circulation includes largely experienced farmers.

If an agent belongs to a national franchise he/she will be able to advertise the franchise's newsletter/paper. This will enable a large coverage (statewide or national) at low cost. However the circulation is limited compared to regional or state newspapers usually being dependent on the passing public picking it up from a newsstand outside the agent’s office.

The following is a good checklist of common advertising promotional systems. You can pick or choose the items that you think most effectoive for the subject property and stay within budget:



METHOD

YES/NO

COST

Local paper



Regional paper



State paper



Editorial



Newsletter/property guide



Window display



Signboards



Direct mail (flyers)



Internet



Other





INTERNET

The internet is becoming a more popular advertsing medium. It is more suitable for rural properties whre you want wide exposure suc as hobby farms. It is less suitable for specialist and large rural properties.

For an example of a successful internet site see:

allhomes.com.au

Large franchises and cooperative agents have heir own web sites that can be used.





TRACKING ADVERTISING COSTS

There is a need for transparency of advertising costs so that the seller is fully aware of how and where their money is being spent . The following table can be used to track costs:



ADVERTISING AND PROMOTION SCHEDULE

VENDOR:…………………………………………….

PROPERTY:………………………………………….

WEEK ENDING

MEDIA

WEEK ENDING

COST/

UNIT

TOTAL

COST














































Brochures









Signs









Other










TOTAL $