Commercial Real Estate Investment
Property
Main Street Marketing
Relationship-building strategies boost business in small towns.
By Carolyn Bilsky
Matt Redd, CCIM, owner of Redd Properties in Lake Charles/Sulphur,
La., doesn't remember what sparked the idea for his company's trademark
marketing strategy, but the effect on his small-town market has
been unforgettable. "It keeps our company's name in people's
minds for months," he says.
Redd's "Feed the Teachers" program is a bimonthly catered
luncheon provided by Redd Properties for local schoolteachers and
staff. Through the program the company gives back to the community
as well as garners noteworthy publicity. The local newspaper has
covered the event, earning the company word-of-mouth referrals.
"Businesswise it definitely helps us out. It really gets our
name out and the teachers really appreciate it," Redd says.
The program not only has made Redd Properties popular with local
teachers, but luncheons have helped it land some deals as well.
Teachers and school staff remember Redd's generosity and refer family,
friends, and colleagues to the company.
Small-Town America
Redd's relationship-building marketing strategy is ideally suited
to his nonurban market. Unlike the cutthroat business environment
of major metropolitan markets, doing business in small towns often
includes a service or volunteer component. "In a smaller community
relationships are very important - you see the same people on a
daily or weekly basis," Redd says.
Building a good reputation in local markets is more important than
ever today. Small-town America continues to change its face from
farmland oases to commercially oriented economies. In increasing
numbers residents are leaving urban areas for more peaceful small-town
living. The population in America's rural counties increased over
the past 20 years for this reason, according to the Population Reference
Bureau. During the 1990s, nonmetropolitan areas of less than 50,000
increased by more than 10 percent, adding 5.2 million people to
rural America.
Where populations grow, so too does commercial real estate development.
In a 2003 CCIM Institute marketing survey, more than half of respondents
revealed that they primarily conduct business in markets of 250,000
or less. This was true for all real estate sectors except corporate.
With more opportunities arising in small-town markets, how can
CCIMs make sure they get in on the action? While many current marketing
strategies center on technology skills, small-town America is one
place where high-tech isn't necessarily better.
Community Relations
John Jantsch, a marketing coach and creator of Duct Tape Marketing,
a Web site with affordable small-business marketing ideas and strategies,
tailors advice to clients according to their market size. "In
a big market your message can get lost, so I tell people to narrow
their focus and concentrate on a niche. In small towns you need
to broaden your reach and get involved in as much as you can,"
he says.
In this sense, Redd's community-oriented marketing strategy serves
as a good example. "In a smaller market you really need to
plug into everything going on in the community," Jantsch says.
For example, getting involved with schools, sponsoring
sports teams or clubs, volunteering with churches are all good strategies,
he says.
Local organizations are another great source of community involvement.
"It is absolutely essential to be involved in [local directors']
boards. It shows that not only do I live here and go to church here,
I am really involved in shaping the community," says Alton
Lee Webb, CCIM, sales director of Alton Webb & Associates in
Shelbyville, Ky., which has a population of approximately 10,000.
As president of Shelby County Chamber of Commerce, Webb found the
experience rewarding for both his town and his business: He was
giving back to the community by participating and also making profitable
business connections, he says.
Along with the teacher luncheons, Redd found another community
niche by hosting events that lend his company credibility and gain
market presence with other commercial real estate professionals.
"My company cosponsors a four-hour wetlands seminar that educates
people in the community about the process of acquiring a wetland,"
he says.
Self-Promote
Creating a solid reputation through community connections eliminates
most of the need for advertising. "We don't do any print media.
We feel like all value is in word-of-mouth and proven reputation,"
Webb says. But small-town markets do respond to one type of advertising:
outdoor signage. "Our firm is diligent about promoting our
'Another Successful Transaction' program," Webb says of his
company's marketing campaign. Instead of placing simple sold signs
in front of properties, the company uses signs bearing its name
and logo and information that updates passersby on the properties'
progress. "We use status-changing signs to introduce the new
development, business, or end use. In this way, the transaction
participants get ownership of the process and the community has
a story to tell," he explains.
New developments are front-page news in small towns and the updated
signs help keep the community informed and spark conversations,
Webb says. "It usually creates a real buzz and identifies our
firm as one that is fueling economic growth and is thriving. People
like to see success and things happening in the community."
Another way to keep community members informed of commercial real
estate news is to garner publicity without paying for it. For instance,
many local papers feature regular real estate columns. Commercial
real estate experts can create a name for themselves in the community
by contributing a column or volunteering as a source.
Team Up
Word-of-mouth travels extra fast in small towns, so establishing
a positive professional reputation, especially among other businesses
in the community, is important. "Commercial real estate professionals
need to align themselves with local insurance companies, banks,
attorneys, and accountants, and form strategic partnerships,"
Jantsch says.
Building a network with other local businesses can generate referrals
and create new leads, as well as build an influential network. "Realtors
are in a good situation because clients planning to open a business
in town will ask themselves first thing, 'Where am I going to locate
my business?' This puts commercial real estate pros in a good position
to influence them in later business decisions," he says.
CCIMs naturally have a leg up in these situations. As the only
CCIM in Shelbyville, Webb didn't have a hard time generating an
impressive reputation. "Having my CCIM designation has been
very beneficial. It makes me stand out against other brokers. A
professional designation really makes me seem more credible,"
he says.
In fact, as Shelbyville has grown over the past few years, several
large national companies such as Lowe's and Walgreens have turned
to Webb due to his designation and good reputation. "They can
justify working with me because they see I'm a CCIM and we've established
ourselves as a knowledgeable local brokerage," he says. In
addition, "When brokers in Louis-ville or Lexington are working
with retailers looking to expand to Shelbyville, they refer them
to me."
Everything from the speed of life to small towns' sights and sounds
are different from those in a big city, and doing business in these
environments reflects these variations. Understanding that commercial
real estate in a smaller market is a relationship-based business
can help a brokerage company earn esteem and, in turn, more prospects
and profits.
Original source:http://www.ciremagazine.com/article.php?
"Main Street Marketing”
© CCIM Institute.
Reprinted with permission from
Commercial Investment Real Estate, volume XXIV no. 6, p.18-21.
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