NY Real Estate Journal
Jan 18, 2004

By Bill Coleman, AMHE Marketing Communications
2004: The Year of the Marketing-Driven Company

Over the past few years, the lagging economy has forced some companies to reduce staff, postpone raises, cancel holiday parties and cut marketing budgets. These reduced marketing budgets will present a tremendous opportunity for other firms that continue to market during bad economic times. That is why, in 2004, companies putting an emphasis on marketing will not only survive, they will prosper.

Traditional marketing methods for commercial real estate companies consist of listing sheets, newsletters, internal telemarketing, word of mouth and websites. In addition to these methods, we will see an emphasis on a few hot areas.

Public Relations. The use of public relations as a cost-effective marketing tool has increased over the past two years. Companies are fast realizing that a planned and sustained public relations program (not just rapid-fire press releases) can have a tremendous effect on the local, regional or national recognition of a company. Public relations generates a credibility that cannot be replicated with advertising.

In addition to traditional public relations activities such as articles in trade and regional publications, there is a rise in the use of “value-added” seminars. Traditionally, only associations and a few large firms have sponsored such events; however, there is a shift towards mid-sized firms in upcoming years. For example, mid-sized firms are hosting seminars such as “Environmentally Sound Profits: Seeing the Green in Green Buildings” or “Are Smart Buildings a Smart Investment?” Such activities position a firm as an expert while attracting a sizable pool of warm leads.

Internet. Opportunity in this developing marketing medium is unimaginable. We will see a shift from using the internet as an online brochure to a more interactive environment.

The quality – or lack thereof -- a company’s website delivers a powerful first impression. A website with poor graphics and navigation is going to discourage potential clients. We see a growing number of firms upgrading or completely overhauling existing websites to keep pace with competitors.

Communications via the internet will gain increasing importance in the lead conversion process. However, keep in mind that the internet is just one communication tool in the sales agent’s arsenal and will never replace one-on-one human contact. Because of the relatively lengthy buying cycle in the real estate industry, online methods must be coupled with traditional methods to maintain regular contact with a prospect. Prospects also will expect that companies are equipped to conduct business online. Look for direct mail efforts to be integrated with online components and expect that most newsletters will have digital versions.

In the March 2003 survey conducted by Forbes, 58% of C-Level executives say they use the internet to perform research on vendors, competitors, services, industry trends and more. As more business executives use the internet for research, a company’s search engine strategy will gain increasing importance. How a company ranks on search engines and where it is listed on the internet will become vitally important. So, in 2004, look for an emphasis on the importance of search engine optimization and keyword buying.

Marketing Strategy. Intense competition will make differentiating your firm from the competition critical in 2004. Firms that differentiate themselves in areas such as industry specialization, geographic area, size of buildings, etc. will have more opportunities to capture and own their market segment.

9/11’s Marketing Impact. The repercussions of the tragic 9/11 disaster were felt perhaps the most within the commercial real estate industry. Although the flight from the city is largely over, with every orange alert, the brutal threat of terrorism is renewed. 2004 will see a huge marketing opportunity for companies serving the areas surrounding major metro areas, in particular New York City. We also see a huge marketing challenge for those companies operating in major cities. In the event of another high profile terrorist incident or a jobless economic recovery, those firms that started early and have marketing plans in action will emerge stronger than their less prepared competitors.

Now is the time to employ powerful forward-thinking marketing strategies.