Developing A Basic Marketing

Plan To Sell Houses [And Neighborhoods]

Workshop Materials












Marcia Nedland
Fall Creek Consultants
www.fallcreekconsultants.com
CopyrlghL 2010 lall Creek ConsulLanLs 2

"#$#%&'()* + ,+-(. /+01#2()* 3%+) 2& 4#%% 5&6-#-
7+)8 9#(*:;&0:&&8-<

Are you concerned abouL selllng properLy you've developed wlLh nS or anoLher acqulslLlon-rehab- and
-resale program? Lvery organlzaLlon developlng properLy for sale should have a markeLlng plan,
preferably before Lhe pro[ecL sLarLs. Who wlll you sell Lo? WhaL do Lhey wanL? Pow wlll you reach
Lhem? WhaL ls your compeLlLlon? All of Lhese quesLlons are lmporLanL conslderaLlons when crafLlng
prlce, producL and promoLlon sLraLegles for home sales. lf LhaL weren'L enough, Lhose of us worklng ln
nelghborhood sLablllzaLlon musL also conslder Lhe lmpacL of our acLlons on Lhe nelghborhoods ln whlch
our properLles slL, and Lhe well-belng of Lhe buyers Lo whom we are selllng.

ln my communlLy developmenL career, l've worked wlLh nelghbors, nonproflLs, local governmenL,
8ealLors, lenders and oLhers Lo develop many place-based nelghborhood revlLallzaLlon sLraLegles and
markeLlng plans Lo aLLracL sLrong buyers Lo properLles for sale ln Lhose nelghborhoods. none of Lhe
nelghborhoods l worked ln were flrsL-cholce" nelghborhoods, and so Lhe houses for sale Lhere had a
bullL-ln dlsadvanLage over Lhose ln sLronger nelghborhoods, no maLLer whaL Lhelr quallLy. l have
learned over Lhe years abouL Lhe common mlsLakes people make when promoLlng nelghborhoods and
houses llke Lhese, as well as some Lechnlques LhaL glve a home and a nelghborhood a flghLlng chance Lo
compeLe for sLrong buyers ln markeLs LhaL are saLuraLed wlLh sellers.

8ecause of Lhe Llme llmlLaLlons of Lhls sesslon, we'll focus on Lhe house, and a llLLle blL on Lhe block lL
slLs on - buL nelghborhoods can and should have markeLlng plans also ln order Lo complemenL home
sales markeLlng plans and accompllsh many oLher sLablllzaLlon and revlLallzaLlon goals.

1he baslc componenLs of my markeLlng plans lnclude:

1. MarkeLlng Coal
2. 1argeL MarkeLs: ldenLlflcaLlon and Analysls
3. roducL 8eneflLs: Analysls and 8eflnemenL
4. MarkeLlng Messages
3. MarkeLlng SLraLegles
6. LvaluaLlon SLraLegles
7. 8udgeL

!"#$ &'()* +,-*$. /$0$,-)1 2$)13(4'$0

8uL flrsL - lf you do noL already know Lhe markeL you are selllng ln, you may wanL Lo do some research.
Pere are some Lhlngs l do Lo become famlllar wlLh a nelghborhood markeL qulckly:

! lnLervlew mosL recenL buyers ln Lhls nelghborhood and of your, or slmllar, houslng producLs:
why here? Why Lhls house?
! lnLervlew nelghborhood leaders: whaL are Lhe Lhree reasons you can lmaglne a frlend, famlly or
colleague buylng here?
! lnLervlew 8ealLors - who has been buylng Lhls nelghborhood and Lhls Lype of home ln Lhe
recenL pasL? WhaL ls on Lhe markeL now? WhaL's lL look llke? WhaL do lookers say?
CopyrlghL 2010 lall Creek ConsulLanLs 3
! lnLervlew homebuyer educaLors and counselors: who ls ln Lhelr classes? WhaL do Lhey wanL?
Pow close are Lhey Lo belng quallfled? WhaL could make your properLles flL Lhem beLLer?
! l also Lry Lo acLually walk Lhrough oLher homes on Lhe markeL ln Lhls nelghborhood, and slmllar
and sllghLly beLLer nelghborhoods.

2" 5(0. "- 6". 2" 5(0.

l belleve LhaL properLy should be llsLed wlLh a quallfled 8ealLor - elLher ln-house or ouL-of-house.
unless you are ln a hoL markeL, Lhere ls no way LhaL a nonproflL or local governmenL agency can maLch
Lhe experlence, lnfrasLrucLure, Llme and conLacLs of a 8ealLor, wlLh Lhe MLS behlnd Lhem, who ls good aL
selllng properLy ln your prlce range. Lvery monLh your properLy slLs on Lhe markeL lncurs serlous
carrylng cosLs. ?ou should shop around for a llsLlng agenL (unless your agency has lLs own broker on
sLaff who ls experlenced and has Llme dedlcaLed Lo selllng your properLy). ?ou'll wanL one who
undersLands Lhe currenL markeL, Lhe buyers ln lL, and how Lo sell properLles llke yours ln nelghborhoods
llke Lhe ones you are ln. lmporLanL facLs: Accordlng Lo Lhe naLlonal AssoclaLlon of 8ealLors, 36 of
homebuyers sLarL Lhelr homebuylng process by looklng onllne for properLles, and 18 conLacLed a
8ealLor as Lhelr flrsL sLep.
CopyrlghL 2010 lall Creek ConsulLanLs 4
=> /+01#2()* ?&+%


MarkeLlng goals make lL very clear whaL we are golng for and when we wanL Lo geL lL. 1hey deflne
success so LhaL everyone ls on Lhe same page and all of our markeLlng Lhlnklng ls ln allgnmenL.
MarkeLlng goals should be speclflc and measurable.

Lxamples lnclude:

Sell each of x new homes wlLhln 60 days of consLrucLlon, all by SepLember 2002.
Secure purchase agreemenLs on all homes prlor Lo end of consLrucLlon.
?our markeLlng goal may need Lo be scheduled over Llme, wlLh sub-goals Lo express Lhe plpellne of lnqulrles
requlred Lo reach Lhe markeLlng goal. lor example, Lhls ls how lL panned ouL for an organlzaLlon selllng
flfLeen homes ln one year:
208 lnqulrles were recelved,
78 looked aL homes, (a raLlo of 1 showlng for every 2.3 lnqulrles), resulLlng ln
13 purchase agreemenLs (a raLlo of abouL 1 purchase agreemenL for every 14 lnqulrles)
1hls communlLy had a preLLy sLrong houslng markeL aL Lhe Llme, so ad[usL your numbers accordlng Lo
Lhe sLrengLh of your markeL. Pere's an example.
MarkeLlng Coal:
Sell 12 homes wlLhln 60 days of consLrucLlon, ln Lhe followlng schedule (Lhls schedule anLlclpaLes a
sLronger lnlLlal reacLlon Lo markeLlng sLraLegles):
March Aprll May !une AugusL
ConsLrucLlon CompleLed 3 3 3 3
lnqulrles (20:1) 80 60 60 40
vlewlngs (10:1) 40 30 30 20
Sales ConLracLs 3 3 3 3
CopyrlghL 2010 lall Creek ConsulLanLs 5

@> A+0*#2 /+01#2-> B8#)2(C(.+2(&) +)8 D)+%E-(-


1argeL markeLs are Lhose groups of people wlLh llke characLerlsLlcs who can help us achleve our
markeLlng goal. 1hey are Lhe people we need Lo lnfluence wlLh our markeLlng sLraLegles.

When segmenLlng Lhe markeL, conslder:

1. "#F&*0+':(. LargeL markeLs: gender, race, age, lncome, famlly slze

Lxamples:
! Slngle-female headed households
! Afrlcan-Amerlcan famllles
! LaLlno famllles
! Slngle women wlLhouL chlldren
! ?oung couples and slngles
! ulvorced men

2. ?#&*0+':(. LargeL markeLs: where Lhey work, where Lhey llve, where Lhey buy

Lxamples:
! Lmployees of Ceneral PosplLal
! 8esldenLs of Lhe Sprlng Plll publlc houslng developmenL
! uownLown renLers

3. 3-E.:&*0+':(. LargeL markeLs: llfesLyle, moLlvaLlng facLors

Lxamples:
! Llfe sLage buyers, such as empLy nesLers, growlng famllles, ouL of college, eLc.
! AlLernaLlve llfesLyles
! AcLlve llfesLyles
! PlsLorlc home buffs
! roflle segmenLaLlon by research flrms (e.g., Achlevers", AuLhenLlks", PearLlanders",
1renders", Self-SufflclenLs" - Lhe AdWrlLer sysLem.)

4. G#C#00+% LargeL markeLs

Lxamples:
! 8eal esLaLe agenLs
! Lenders
! Pomebuyer counselors
! lrlends and famlly of exlsLlng nelghbors
! asL cusLomers
! CLher servlce provlders

CopyrlghL 2010 lall Creek ConsulLanLs 6

When you ldenLlfy your LargeL markeLs, analyze Lhem ln order Lo know enough abouL Lhem Lo deslgn
effecLlve producLs, markeLlng messages and sLraLegles. uevelop proflles based on Lhese quesLlons:

=H I:& +0# 2:#EJ

Who are Lhey exacLly? WhaL do you know abouL Lhelr llkely characLerlsLlcs? WhaL do Lhey earn,
where do Lhey work, whaL's Lhelr famlly slze, age?

@H I:#0# +0# 2:#EJ

Where do Lhey llve, shop, hang ouL, work? WhaL medla are Lhey exposed Lo? All of Lhese
answers can provlde lnslghL lnLo where Lo place your markeLlng messages and sLraLegles so LhaL
Lhe LargeL markeL acLually hears Lhem.

KH I:+2 8& 2:#E L+)2J

1hls ls Lhe mosL lmporLanL quesLlon of all. WhaL beneflLs are lmporLanL Lo Lhem? WhaL are
Lhelr prlorlLles? 1hls ls noL necessarlly Lhe same as whaL 7"' wanL, whaL you Lhlnk Lhey 3$$8, or
whaL you Lhlnk Lhey 01"'98 wanL. Conslder whaL Lhey wanL ln Lerms of Lhe house, Lhe
nelghborhood, and Lhe prlce.

4. 5&L F6.: L(%% 2:#E '+EJ

Pow much are your producL beneflLs worLh Lo Lhls LargeL markeL? Pow much Llme, how much
work, how much rlsk, how much lnconvenlence, how much money? 1hls ls noL necessarlly Lhe
same as whaL Lhey can afford Lo pay.


CopyrlghL 2010 lall Creek ConsulLanLs 7
K> 30&86.2 ,#)#C(2-> D)+%E-(- +)8 G#C()#F#)2


When markeLers Lalk abouL Lhe producL", Lhey focus on Lhe bundle of beneflLs LhaL producL offers Lo Lhe
LargeL markeL - because LhaL ls whaL Lhe cusLomer cares abouL. lL ls very easy Lo become wrapped up
ln Lhe feaLures of Lhe producL (Lhe lnLeresL raLe, Lhe bulldlng maLerlals, eLc.), buL whaL we have Lo
sell ls Lhe beneflLs. Pere ls an example of Lhe dlfference:

M#+260# ,#)#C(2
6 lnLeresL raLe Low monLhly paymenL

lorglvable second
morLgage

MonLhly paymenL based on your lncome, Lhe besL deal ln Lown, xx more
house for your money, low down paymenL
Plgh quallLy rehab Low malnLenance, energy efflclenL, low uLlllLy bllls, Lhe home of your dreams,
sunny klLchen, granlLe counLerLops, eLc.

Low prlce A prlce you can afford, a hedge agalnsL negaLlve equlLy, a once-ln-a-llfeLlme
deal
Affordable urban
nelghborhood
lrlendly nelghbors, famlly-frlendly nelghborhood, walk Lo work, convenlenL
locaLlon, low commuLe, dlverse and lnLeresLlng communlLy, eLc.



now LhaL you know your LargeL markeLs and have LranslaLed Lhe feaLures of your producL lnLo beneflLs
from Lhe cusLomer's polnL of vlew, you can ldenLlfy reflnemenLs Lo Lhe producL.

! lor example, you may need Lo deslgn a home you are selllng ln a parLlcular way Lo aLLracL Lhe
LargeL markeL. lf Lhe houses you have are small, maybe you should be markeLlng Lhem Lo
slngles and couples. Cpen up Lhe floor plans and add feaLures aLLracLlve Lo a markeL LhaL does
noL have chlldren.

! Maybe you need Lo add an lncenLlve, llke a Llme-llmlLed dlscounL, a free washer and dryer wlLh
home purchase, or a securlLy sysLem and yard llghLlng for Lhe flrsL flve buyers, Lo creaLe a sense
of urgency.

! Look aL Lhe block Lhls house ls slLLlng on - lf oLher houses look Lerrlble, do someLhlng abouL lL. A
nelghborhood organlzaLlon ln Mllwaukee made small exLerlor lmprovemenL granLs Lo all of Lhe
occupled houses on a block wlLh four vacanL foreclosed homes - Lhey made lL seem llke Lhe
normal sLandard was hlgh-quallLy and Lhey lnsplred confldence ln Lhe fuLure of Lhe
nelghborhood. LnllsL nelghbors or local governmenL ln cleanlng up Lhe oLher yards Lo make Lhe
besL lmpresslon.

CopyrlghL 2010 lall Creek ConsulLanLs 8
N> /+01#2()* /#--+*#-


MarkeLlng messages are a llsL of sLaLemenLs LhaL speak dlrecLly Lo your LargeL audlences and address
whaL Lhey wanL. use your producL beneflLs analysls Lo develop your messages.

! ?our message should Lell whaL your producL can do for Lhls LargeL markeL.
! lL should make your producL sLand ouL from oLhers.
! ?our LargeL markeL should know you are Lalklng Lo Lhem and meeLlng Lhelr wanLs.
! uon'L forgeL Lo use Lhese ln your markeLlng Lools! 8e conslsLenL and coordlnaLed ln your
message dellvery.

SL. Ambrose Pouslng Ald CenLer (www.sLambros.org) uses a very clear message when selllng Lhelr
properLles:

new and updaLed sysLems, Amerlcan Pome Shleld and conLracLor's warranLles, compleLe appllance
package wlLh all new appllances, and Lhe reassurance of purchaslng from SL. Ambrose Pouslng Ald
CenLer, make our homes perfecL for Lhe flrsL Llme buyer."


/#--+*# /(-2+1#- 2& D$&(8

=H M(0-2 O#2P- A+%1 D;&62 /#Q /#Q /#

1hls ls when you Lalk abouL your organlzaLlon lnsLead of Lhe beneflLs of your producL. lor Lhe mosL
parL, cusLomers do noL care abouL your organlzaLlon, who lLs board members are, when and why lL
was founded, and all LhaL oLher anclenL hlsLory. 1alk abouL Lhe LargeL markeL and Lhe beneflLs.

@H 5&&'- G R-

1hls happens when all your messages are abouL Lhe hoops people have Lo [ump Lhrough ln order Lo
geL Lo your producL. lncome resLrlcLlons, famlly-slze resLrlcLlons, geographlc resLrlcLlons, resale
resLrlcLlons, eLc. lf you musL have any of Lhese, don'L lead wlLh Lhem ln your message. 1alk flrsL
abouL whaL Lhe cusLomer ls lnLeresLed ln.

KH O#2 /# A#%% S&6 5&L ,+8 TCC 2:# 9#(*:;&0:&&8 B-US&6 D0#

1hls ls when you Lalk abouL Lhe cusLomer or a LargeL nelghborhood accordlng Lo Lhelr deflclencles
and weaknesses lnsLead of sLrengLhs. Many organlzaLlons lnadverLenLly convey Lhrough Lhelr
markeLlng messages LhaL only poor, downLrodden people wlLh no oLher cholces aL all should come
Lo see Lhem. Who wanLs Lo Lhlnk of Lhemselves LhaL way? Who wanLs Lo spend Llme wlLh an
organlzaLlon LhaL sees Lhem LhaL way? Llkewlse, nelghborhoods. Who wanLs Lo buy a home ln a
hlgh-crlme area" (Puu acLually adverLlsed a program LhaL way) or a revlLallzaLlon zone"? Who
wanLs Lo buy a home ln an area LhaL has numerous needs, where Lhe key headllnes are LhaL
nelghbors are flghLlng Lhe clLy for playground cleanup, or vlolenL crlme ls down by 10 (buL sLlll
hlgher Lhan everywhere else)?
CopyrlghL 2010 lall Creek ConsulLanLs 9

8e careful how you Lalk abouL people and places. We are used Lo Lalklng abouL problems because
we geL fundlng Lo flx Lhem, buL LhaL doesn'L mean we should Lalk abouL people and places LhaL way
Lo anyone buL funders.

Also, be careful abouL focuslng excluslvely on prlce - buyers ln Lhls markeL do expecL a greaL deal, buL
Lhere are loLs of greaL deals ouL Lhere, and Lhey may be ln beLLer nelghborhoods. ?ou need Lo
dlsLlngulsh your homes as ouLsLandlng quallLy aL a greaL prlce ln a greaL nelghborhood.
V> /+01#2()* 420+2#*(#-


MarkeLlng sLraLegles and Lools are slmply Lhe means by whlch you wlll dellver your message Lo
your LargeL markeL. Colng back Lo your LargeL markeL analysls Lo revlew how you answered Lhe
where" quesLlon can be very helpful Lo ensurlng LhaL your markeLlng sLraLegles meeL Lhe
cusLomer where Lhey are.

Pere are some ldeas for markeLlng sLraLegles and Lools.

B)2#0)#2 /#8(+

! WebslLes - a musL, elLher your own or
your 8ealLor's
! Llnks Lo oLher webslLes
! L-mall noLlces and llsL serves
! lacebook
! Cralg's LlsL


3+(8 D8$#02(-()*

! newspapers: dally, weekly shoppers,
buslness [ournals,
alLernaLlve/enLerLalnmenL weeklles,
eLhnlc newspapers, eLc.
! 1ranslL ads: buses, llghL rall llnes, Lralns,
blllboards

! 8adlo
! 1elevlslon
! Movle prevlews
! newsleLLers and oLher publlcaLlons of
oLher organlzaLlons


M0## 36;%(.(2E

! SLorles abouL producLs and programs
! SLorles abouL cusLomers
! LdlLorlals and leLLers Lo Lhe edlLor abouL
foreclosure and relaLed lssues
! CuesLlng on radlo or Lelevlslon Lalk
shows

! ress conferences
! ress klLs
! ress Lours


W$#)2-

! Speclal open-house evenLs for
nelghbors, church congregaLlons,
employers, clubs, homebuyer ed classes
! Sponsorshlps of evenLs (eLhnlc fesLlvals,
home falrs)
! 8ooLhs aL evenLs, aL publlc LranslL sLops
! Pomeownershlp falrs
! PlsLorlc home Lours
! nelghborhood Lours
! Croundbreaklngs
CopyrlghL 2010 lall Creek ConsulLanLs 11

30()2#8 /+2#0(+%-

! lor-Sale slgnage
! LdlLorlals
! Coupons
! lacL sheeLs
! 8lll sLuffers
! newsleLLers
! llyers
! ulrecL mall
! 8rochures
! osLcards
! osLers


3+02)#0-:('-

! resenLaLlons aL homebuyer ed classes
! Lmployer-sponsored presenLaLlons
! Lunch-n-Learns for downLown offlce
workers
! Church presenLaLlons
! 8ealLors
! Lenders
! resenLaLlons aL schools for parenLs and
sLaff
! CLher nonproflLs, servlce provlders
! osL-college fraLernlLles and sororlLles
! MulLl-servlce agencles for parLlcular
eLhnlc groups
! LlecLed offlclals


30&F&2(&)-

! lncenLlves wlLh purchase
! lncenLlves for referrals
! 8randlng your producL wlLh a vlslble
feaLure, llke SL. Ambrose's red doors

! 8randlng all nS properLles wlLh a logo
and markeLlng supporL Lo emphaslze a
greaL deal, greaL quallLy, eLc.
! 1lme-resLrlcLed sales on loans and
classes




CopyrlghL 2010 lall Creek ConsulLanLs 12
X> 3%+))()* W$+%6+2(&) A#.:)(Y6#-


CopyrlghL 2010 lall Creek ConsulLanLs 13
W$+%6+2(&) A#.:)(Y6#-


Measurlng Lhe success of markeLlng sLraLegles allows us Lo deLermlne whaL's worklng and
whaL's noL worklng, savlng a loL of Llme and money. use evaluaLlon resulLs Lo dlsconLlnue
sLraLegles LhaL don'L work and lnvesL more ln Lhose LhaL do, or Lry someLhlng else. uon'L Lhlnk
LhaL every markeLlng sLraLegy you Lry ls bound Lo be a wlnner - parL of markeLlng ls Lrlal and
error.

1ry Lhese baslc evaluaLlon Lechnlques:

,#).:F+01()*

8ecord Lhe number of whaLever lL ls you are selllng (loans, houses) for a flxed perlod of Llme (3
monLhs) before Lhe markeLlng sLraLegy ls launched. 1hen measure Lhe number for Lhe same
perlod of Llme afLer Lhe markeLlng sLraLegy ls launched. 1he number of unlLs should lncrease lf
your sLraLegles are succeedlng.

3:&)# O&*-

Lvery Llme a cusLomer conLacLs you, ask how Lhey heard abouL you. Analyze Lhe daLa regularly
Lo deLermlne whlch sLraLegles are yleldlng Lhe mosL success. A word of cauLlon ln lnLerpreLlng
Lhe resulLs: many people hear abouL producLs ln several dlfferenL ways before Lhey acL, and
may only Lell you Lhe mosL recenL or mosL lmporLanL.

Z6-2&F#0 460$#E-

Ask why successful cusLomers chose you, and whaL Lhey llked or dlsllked abouL Lhe experlence.
Ask cusLomers who lnqulred abouL a producL buL dld noL follow up, or dropped ouL of Lhe
process along Lhe way, why Lhey dld lL. use focus groups, small lunches, wrlLLen surveys (ln your
walLlng room, malled or phoned) and/or lnLervlews.

B)Y6(0(#- $-H 4+%#-

1rack Lhe raLlo of lnqulrles Lo sales Lo flnd ouL wheLher you are LargeLlng Lhe rlghL audlence wlLh
your markeLlng sLraLegy or wheLher Lhere ls someLhlng unsaLlsfacLory abouL Lhe producL or
servlce.

lor example, organlzaLlons LhaL geL general news coverage abouL Lhelr homeownershlp
program have been lnundaLed wlLh calls from poLenLlal cusLomers. unforLunaLely, Lhese
lnqulrles Look a loL of Llme Lo process, and lL Lurned ouL mosL of Lhe people dld noL quallfy.

AnoLher organlzaLlon found ouL LhaL 30 of lLs rehab loan cusLomers were dropplng ouL afLer
loan approval - lL Lurned ouL Lhe was Lhe flrsL Llme Lhey really undersLood Lhey would have Lo
pay back Lhe loan, LhaL lL wasn'L a granL. 1hls organlzaLlon changed Lhe way lL explalned Lhe
program Lo cusLomers Lo avold Lhls scenarlo.

CopyrlghL 2010 lall Creek ConsulLanLs 14
[> 4#2 +)8 M6)8 + ,68*#2



8ecenL lnLervlews wlLh hlgh-produclng nonproflL developers showed one Lhlng ln
common: because Lhelr buslness model depends on fee lncome, Lhey Lake markeLlng
very serlously. 1he lnvesL ln a markeLlng plan and markeLlng sLraLegles, and Lhey have
very speclflc goals LhaL markeLlng efforLs are expecLed Lo achleve.

A 8ealLor commlsslon ls one markeLlng expense. WhaL else could be ln Lhe markeLlng
budgeL?

!
!
!
!
!
!
!
!
!

CopyrlghL 2010 lall Creek ConsulLanLs 15
A#) A0(.1- C&0 /+01#2()* 9#(*:;&0:&&8- +- 3%+.#- &C Z:&(.#
8y Marcla nedland, lall Creek ConsulLanLs

=H ?#2 Z%#+0 D;&62 I:+2 G#$(2+%(\+2(&) +)8 9#(*:;&0:&&8 /+01#2()* D0# 46''&-#8
2& D..&F'%(-:H

MosL bad markeLlng ls confused markeLlng. WhaL are your ouLcomes? Pow wlll you
measure success? Whose behavlor do you have Lo lnfluence Lo achleve your ouLcomes?
uoes your sLaff and board undersLand Lhe ramlflcaLlons of uslng affordable houslng as
one of many Lools Lo revlLallze a nelghborhood raLher Lhan as an ouLcome unLo lLself?
Are Lhey prepared Lo work Lo aLLracL people wlLh cholces lnLo Lhe nelghborhood ln
addlLlon Lo respondlng Lo Lhe needs of low-lncome nelghbors?

1he mosL common obsLacle Lo organlzaLlonal agreemenL abouL Lhe polnL of
revlLallzaLlon and nelghborhood markeLlng ls fear of genLrlflcaLlon. Pave Lhls
conversaLlon wlLh board and sLaff. 1alk abouL ways Lo promoLe affordable houslng
wlLhouL locklng Lhe nelghborhood lnLo a low-or no-appreclaLlon markeL. 1alk abouL Lhe
lmpacL of a sLagnanL or decllnlng markeL on low-lncome homeowners. Ask whaL people
Lhlnk Lhe dlfference ls beLween revlLallzaLlon and genLrlflcaLlon. lf Lhe organlzaLlon lsn'L
clear and confldenL abouL markeLlng Lhe nelghborhood as a place of cholce, markeLlng
sLaff wlll geL mlxed messages and markeLlng wlll be confused and lneffecLlve.

@H 30(&0(2(\# 9#(*:;&0:&&8 Z&)C(8#).# +- +) T62.&F#H

Many communlLy developmenL organlzaLlons undermlne Lhelr LargeL nelghborhoods by
focuslng on deflclencles, Lalklng ln Lhe publlc medla abouL problems Lhey are flxlng, eLc.
1o avold Lhls, adopL an acld LesL" whlch every program, pro[ecL, markeLlng efforL -
every move Lhe organlzaLlon makes - musL pass ln order Lo geL lmplemenLed. 1he one l
recommend ls ]I(%% 2:(- '0&*0+FU '0&^#.2U -20+2#*E UF#--+*# ()-'(0# .&)C(8#).# () 2:#
C6260# &C 2:(- )#(*:;&0:&&8 +F&)* )#(*:;&0- +)8 '&2#)2(+% :&F#;6E#0-J_ 8y uslng
poLenLlal homebuyers as parL of your lmaglnary audlence, you wlll be assured of
carrylng ouL revlLallzaLlon programs and markeLlng sLraLegles ln ways LhaL do noL
undermlne confldence ln Lhe fuLure of Lhe nelghborhood for all klnds of oLher lnvesLors,
().%68()* #`(-2()* )#(*:;&0-.

3. "#C()#Q W`'#.2Q Z6%2($+2# D)8 G#L+08 D 4#2 TC ]9#(*:;&0:&&8 a+%6#-_H

Cne of Lhe greaLesL lnfluences on a nelghborhood's lmage comes from Lhe degree Lo
whlch nelghbors embrace a seL of baslc nelghborhood values". 1he values LhaL supporL
a nelghborhood's quallLy of llfe and a poslLlve lmage are slmple and obvlous, and don'L
requlre money Lo perform:

! orches and yards are kepL clean and Lldy. no Lrash, no [unk. Mown lawns.
CopyrlghL 2010 lall Creek ConsulLanLs 16
! eople do noL llLLer sLreeLs and oLher publlc areas, and Lhey lmmedlaLely plck up any
llLLer Lhey flnd.
! eople puL Lhelr Lrash ouL on Lrash day ln an approprlaLe recepLacle, and Lhey
brlng Lhe recepLacle ln wlLhln a day of plckup. 1hey do noL place Lrash ouL days and
weeks ln advance of plckup because lL flles away, ls dlsLurbed by anlmals, and ls an
eyesore for Lhe sLreeL.
! eople respecL Lhelr nelghbors and conducL Lhelr llves ln ways LhaL do noL negaLlvely
lmpacL Lhelr nelghbors - no loud muslc, eLc.
! eople observe speed llmlLs and oLher Lrafflc regulaLlons. 1hey do noL speed Lhrough
Lhe nelghborhood endangerlng Lhe llves of chlldren, peLs and oLhers. 1hey don'L
park ln Lhe mlddle of a sLreeL blocklng Lrafflc whlle Lhey chaL wlLh frlends. 1hey don'L
park Lhelr cars ln Lhelr fronL yards.
! eople Lake responslblllLy for Lhelr chlldren's acLlons and Leach Lhem Lo be good
nelghbors.
! eople shovel snow from walks and porches, rake leaves, eLc. ln a Llmely manner.
! eople do noL deal drugs or allow drugs Lo be sold ln Lhelr homes. ulLLo for oLher
crlmlnal acLlvlLles.

uo whaLever you can Lo encourage, faclllLaLe, and ca[ole people lnLo embraclng Lhese
values. 8e creaLlve - l've known organlzaLlons LhaL pay for [unk cars, old appllances and
lndoor furnlLure placed ouLdoors because for some people Lhese lLems have value. SeL
up a Lool lendlng llbrary lf people lack lawnmowers and oLher home malnLenance Lools.
CeL help for elderly or dlsabled nelghbors. use bulldlng code enforcemenL,
envlronmenLal code enforcemenL, and even dlrecL acLlon such as plckeLlng a bad
landlord aL hls home or church.

NH M&.6- T) B)C%6#).()* D%% 4+%#- A0+)-+.2(&)- b 9&2 c6-2 A:# T)#- S&6 5+$# D)
TL)#0-:(' B)2#0#-2 B)H

lf your organlzaLlon bullds or purchases/rehabs/sells 10 properLles a year, whlle 30
owner-occupled properLles on Lhe open markeL sell Lo lnvesLor owners who dlslnvesL ln
Lhe properLy and renL Lo LenanLs wlLhouL nelghborhood values, Lhe nelghborhood ls
experlenclng a neL loss of sLrong homeowners and you are balllng waLer wlLh a sleve.
1here are many ways Lo lnfluence sales ln Lhe normal markeL Lo make sure LhaL
properLles sell Lo good landlords or Lo owner-occupanLs wlLh nelghborhood values who
wlll slgnal sLablllLy and a brlghL fuLure for Lhe nelghborhood.

VH ,# ]D;&62 2:# 9#(*:;&0:&&8_ G+2:#0 A:+) ]D;&62 2:# T0*+)(\+2(&)_H

lf your mlsslon ls nelghborhood revlLallzaLlon, you should be focused more on markeLlng
Lhe nelghborhood Lhan on markeLlng your organlzaLlon. lf you have a booLh aL a
nelghborhood falr LhaL draws ln vlslLors, make Lhe booLh abouL whaL a greaL place Lhe
nelghborhood ls and how Lo buy a home Lhere, noL abouL how greaL your organlzaLlon ls
and whaL you do. uon'L lead your brochures and oLher markeLlng Lools wlLh lnformaLlon
CopyrlghL 2010 lall Creek ConsulLanLs 17
abouL Lhe organlzaLlon - lead wlLh whaL Lhe cusLomer cares abouL, Lhe beneflLs
avallable Lo Lhem.

8emember - you are noL ln buslness Lo be ln buslness, you are ln buslness Lo promoLe
and resLore Lhe nelghborhood.

XH 4#*F#)2 2:# /+01#2H

]Cne message flLs all" doesn'L work besL ln markeLlng. eople are dlfferenL, wlLh
dlfferenL lnLeresLs and prlorlLles, and Lhey wanL markeLlng Lo speak dlrecLly Lo Lhem. lor
each markeLlng goal, flgure ouL who your key LargeL markeLs are, and reflne Lhe
producL, message and markeLlng sLraLegles Lo whaL wlll work besL for Lhem.

Many nonproflLs reacL negaLlvely Lo Lhe ldea of markeL segmenLaLlon because Lhey
Lhlnk lL ls deslgned Lo exclude people. CulLe Lhe conLrary, segmenLaLlon allows us Lo
provlde beLLer cusLomer servlce, more approprlaLe producLs, and helps us spend Lhe
mosL resources on Lhe people wlLh whom we wlll have Lhe greaLesL chance of success.

[H Z&)-(8#0 G(-1 A&%#0+).# () /+01#2()*H

When you ldenLlfy LargeL markeLs, parLlcularly for home purchase, begln markeLlng wlLh
groups LhaL have a hlgh Lolerance for rlsk, and work your way up Lo Lhose who have a
lower Lolerance for rlsk. lor example, a common consumer behavlor model descrlbes
caLegorles of people who buy a new producL over Llme ln a bell curve:

B))&$+2&0-> A small group who buys flrsL because Lhey value belng dlfferenL. ln
nelghborhoods, we ofLen see arLlsLs and Lhe gay communlLy Lake on a decllnlng
nelghborhood LhaL evenLually Lurns around. lL ls only afLer Lhey forge a Lrall", so Lo
speak, LhaL lower-rlsk groups wlll conslder a nelghborhood wlLh a quesLlonable
repuLaLlon. CLher buyers may have a hlgher Lolerance for rlsk because Lhey grew up ln
Lhe nelghborhood, Lhey already renL Lhere, lL ls worLh lL because Lhey work nearby, eLc.

W+0%E D8&'2#0-> 1he nexL group, sllghLly larger, who wlll buy a producL afLer Lhey see Lhe
lnnovaLors buy lL. ln nelghborhood homebuyer Lerms, Lhese could be markeLs llke
frlends and famlly of exlsLlng nelghbors, more skepLlcal renLers, people who work
nearby and wanL a shorLer commuLe, people wlLhouL klds for whom school quallLy ls noL
an lssue.

W+0%E /+^&0(2E> 1he nexL group, much larger, wlLh, agaln, a lower Lolerance for rlsk. 1hey
are made more comforLable abouL purchaslng a producL because Lhey waLched Lhe
Larly AdopLers do lL. lor nelghborhoods, Lhese could be famllles wlLh chlldren ln Lhe
nelghborhood publlc or parochlal schools, young couples wlLhouL klds who vlslL Lhe
nelghborhood regularly for some reason, and people from all Lhe prevlous groups who
[usL had a lower Lolerance for rlsk.
CopyrlghL 2010 lall Creek ConsulLanLs 18

O+2# /+^&0(2E> 1hls nexL group follows Lhe Larly Ma[orlLy aL Lhe peak of Lhe bell curve.
1hey would never have consldered buylng before Lhe Larly Ma[orlLy dld. 1hese could be
famllles wlLh klds who could choose from oLher clLy nelghborhoods, people of hlgher
lncomes who wanL Lhelr lnvesLmenL ln a home Lo appreclaLe, chlldren of older
nelghbors who now belleve Lhe nelghborhood ls worLh reLurnlng Lo, eLc.

1here are a couple of oLher, even lower-rlsk groups LhaL flnlsh ouL Lhe bell curve ln Lhls
model. 1he lmporLanL lesson here ls noL Lo focus flrsL on aLLracLlng people ln Lhe LaLe
Ma[orlLy, because you wlll wasLe your resources.

8. M()8 ,6E#0- I:& I(%%Q ,E A:#(0 Z:&(.# TC A:# 9#(*:;&0:&&8Q 4(*)(CE A& T2:#0-
A:+2 A:# 9#(*:;&0:&&8 B- BF'0&$()* b D)8 A:#) /+01#2 A:#(0 Z:&(.# O(1# Z0+\E.

ln 8aLLle Creek, Mlchlgan, nelghborhoods lnc. was able Lo recrulL a pasL presldenL of Lhe
local urban League Lo buy a home ln Lhe LargeL nelghborhood. 1hls was a person
everyone knew could have chosen many oLher nelghborhoods, and who caused
nelghbors Lo belleve Lhe nelghborhood musL be geLLlng beLLer. 8y maklng sure everyone
knows when someone llke Lhls buys, you can push your way up Lhe bell curve of rlsk
Lolerance fasLer.

9. Z:+)*# 2:# 46;^#.2.

Cne problem mosL decllnlng nelghborhoods face ls a repuLaLlon wlLh Lhe medla and Lhe
general publlc characLerlzed by problems llke crlme and drugs. 1here are Lwo ways Lo
deal wlLh Lhls. 1he one LhaL doesn'L work ls Lo aLLempL Lo change publlc oplnlon by
Lalklng abouL whaL Lhe organlzaLlon ls dolng Lo flghL Lhose problems. 1hls usually
relnforces Lhe lmage of crlme and drugs by remlndlng people all Lhe Llme of Lhe
problems you are Lrylng Lo solve.

1he oLher approach, whlch works beLLer, ls Lo acLlvely change Lhe sub[ecL. Clve Lhe
medla and Lhe publlc loLs and loLs of sLorles abouL Lhlngs LhaL are wonderful ln Lhe
nelghborhood. And don'L acL surprlsed LhaL someLhlng good ls happenlng ln Lhe
nelghborhood. lor example, don'L do a sLory LhaL says alLhough Lhls nelghborhood ls
oppressed and downLrodden, a few dedlcaLed nelghbors are planLlng a garden anyway!"
uo sLorles on Lhe prlvaLe gardens ln your nelghborhood, on Lhe eLhnlc resLauranLs and
grocerles lf you have Lhem, on Lhe wlnners of your Cood nelghbor Awards, on recenL
home renovaLlons, on recenL homebuyers. 1hlnk of your [ob as replaclng Lhe lmage
people have of your nelghborhood raLher Lhan changlng lL.

=dH /+1# A:()*- 4'#.(+%H

As you conslder opLlons ln nelghborhood sLraLegles and markeLlng, Lry Lo always flgure
ouL how Lo make a bulldlng, a park, a sLreeL, a nelghborhood enLry - whaLever lL ls you
CopyrlghL 2010 lall Creek ConsulLanLs 19
are worklng on - look speclal. lor an overall nelghborhood, Lhls may mean ldenLlfylng
Lhe sub-nelghborhoods, namlng Lhem, developlng logos for Lhem, and Lhen puLLlng up
banners and gaLeway slgns LhaL deflne Lhem. lor a home lmprovemenL or rehab, flgure
ouL whaL lL would Lake Lo make LhaL house look llke Lhe besL house on Lhe block. WhaL's
speclal ln one place wlll be dlfferenL from whaL lL ls ln anoLher, buL lL ls always easy Lo
flgure ouL. 1he accumulaLlon of maklng lndlvldual Lhlngs speclal produces a speclal
nelghborhood. Speclal lnsplres confldence and speclal sells.



lor more lnformaLlon on nelghborhood and oLher markeLlng, vlslL
www.fallcreekconsulLanLs.com.

Lmall me abouL your experlences! marcla[fallcreekconsulLanLs.com