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Marketing 201
Principles of Effective Marketing
and Core Techniques
Agenda
• EMS
• Points of Difference
• Communication Strategy
• Developing Effective Advertising
• Short Sales
EMS: Differentiated
Marketing Services
Kevin Oldham
Vice President – United Country
Marketing Services
INTERNAL MARKETING RESOURCES AVAILABLE
TO UC AFFILIATES
Internal Marketing Firm
UCMS’ Suite of Services
These are optional marketing services
WHAT IS EMS?
• United Country Marketing
Services’ exclusive suite
of services
• Designed to address need
for seller-paid marketing
services
• These optional services
are above the standard
UC offering
WHAT IS UNITED COUNTRY MARKETING
SERVICES?
• Your in-house marketing team:
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Strategic marketers: 4
Graphic designers: 4
Web designers & SEO Specialists: 3
Media planners: 1
Media buyers: 1
Copywriters: 1
Public relations specialists: 2
Editors: 1
• You have a full marketing team of 17 professionals
supporting you….can your competitors stake this claim?
• We free you up to do what you do best…list and sell real
estate and conduct auctions.
EMS IS A COMPETITIVE
DIFFERENTIATOR DESIGNED TO
HELP YOU LIST AND SELL…
Common denominator: Seller typically funds a campaign with
your company’s name tattooed on the advertising
Commission Rates
10%
7%
4%
Natl. Adv. of Listings
EMS
Confidentials
Network
Largest Integrated
Exclusive Catalogs
#1 Website
#1 Horse Property
National Network
700 Offices
Online Bidding
Postcards
Purchased Lists
Oldest Local Office
Virtual Tours
Fliers
Home Warranty
Home Mortgage
Local Internet Site
Local NSP Ads
Yard Signs
Office Location
Telephone
Realtor
THE VALUE OF
DIFFERENTIATION
HOW YOU CAN MAKE MONEY
LEVERAGING EMS
• Use EMS to open doors that
previously may have been
closed
• Leverage EMS to drive buyers
to your listings
• Revitalize marketing efforts on
existing listings
• Eliminate the Opportunity Cost
of executing marketing tasks
yourself
• Use EMS as a differentiator to
increase listings & commissions
EMS MARKETING PROCESS
THE EMS SUITE OF
SERVICES
• Fully Integrated multimedia auction
marketing campaigns
• ‘One-off’ services
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Brochures
Media Plans
Digital Campaigns
Corporate ID
Any marketing
needs you need, we
can handle them for
you
ANNOUNCING THE
UCMARKETINGSERVICES.COM WEBSITE
Important Differentiator For EMS Clients
OUR VISION STATEMENT
United Country Marketing Services’ vision is to deliver
professional, fully integrated marketing solutions that give
United Country affiliates a competitive advantage by:
– Creating opportunities to for you to list and sell large properties,
real estate developments and auctions
– Increasing the likelihood of an acceptable offer
– Stimulating the market by focusing a spotlight on your listing or
auction
– Serving as a differentiator in listing presentations
EMS: Differentiated
Marketing Services
Kevin Oldham
Vice President – United Country
Marketing Services
Marketing 201
Principles of Effective Marketing
and Core Techniques
Differentiation
• Brands - Companies, People, Products,
Services, Countries, Anything Influenced by Man
• Each Stand for Something Different
– America – China
– ReMax – United Country
• No Two Brands Are Identical
– The Olsen Twins
– Coke and Pepsi
• Buyers and Sellers Choose Brands They
Perceive as Unique and Better
– They Will Also Pay More for a Better Brand
Differentiate
• Write Down Every Reason A Seller Should Choose
You to List Their Property vs Your Competition
• Write Down Every Reason a Buyer Should Let You
Represent Them vs Your Competition
• Now Rank Those Reasons in Priority Order
– Ask Others to Rank Them Too
• Try to Understand What the Common
Theme is for The Top Three Combined
• This is Your Key Point of Differentiation
and Reasons to Believe
Communication Strategy
• Now that You Know Your Key Point of
Differentiation and Reasons to
Believe…
…You Must Communicate It
…Effectively
Remember “Whisper”
• What Did You Learn From that Game?
• How Could You Guarantee Your
Intended, Important and Expensive
Message is Communicated
and Received?
Write It Down
Step 2
The Creative Brief
• Write It In a Brief (Short) Form
• What, Who, Why, How, When, How Much
• Elements
– Background / Situation / Opportunity
– Objective
– Strategies
– Tactics
– Key Message (1 Idea – 1 Sentence) – Consumer Take-a-way
– Key Reasons to Believe (5-7 Max)
– Target Market (Narrower is Better)
– Timeline
– Budget
Example of a Creative Brief
Background / Situation / Opportunity: Potlatch Timber Company wants to sell 10,000 harvested acres
in MN.
Objective: Sell available acres fast and at the fair market value within 12 months.
Strategies:
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Market as recreational hunting property
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Subdivide into 100 and 200 acre lots
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Emarketing, Direct Mail and Event Marketing
Tactics:
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Email and Mail to Special Confidentials and InfoUSA Hunters in MN
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Attend MN Deer Hunters Association Show in May and DU Monthly Meetings
Key Message – Single Consumer Take-a-way: “Virgin Hunting Land”
Key Reasons to Believe (5-7 Max)
1.
1st Public Sale of Timber Property
2.
Not hunted in over 15 years
3.
Trophy buck pictures from property
Target Market (Narrower is Better): MN deer hunters, age 40-65, with incomes over $70,000.
Timeline
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Budget:
$5,200
Creative brief complete 3/15/10
Creative brief to EMS 3/16/10
First review of creative concept 3/30/10
Final creative approval 4/15/10
1st email blast 4/20/10
1st Direct mail drop 4/20/10
Direct mail In-home 4/25-4/30/10
Deer Hunters Show 5/17/10
1st MN DU Meeting 5/125/10
Step 3
The Execution
• Evaluate Ads and Creative Against the Brief
– Objective not Opinion
– Only Matters if the Target Likes It
• The Fewer Words (Images) the Better
– “Just Do It”
– 7 Max – Card Game show 7 cards, ask to remember, after 7
th
stand up if you remember the first card, sit 2-6 if forget.
• The More Interesting The Use of Words
(Images) the Better
– “So Easy A Caveman Can Do It”
– “Sell Greed, Buy Fear”
Words Matter
Communication Objective:
Inspire the team during tough times…
“The hardest of times, show just who is tough”
Or
“When the going gets tough, …”
Communication Objective: Inspire service and sacrifice
“Ask not what your country can do for you,…”
Use common words in an interesting way.
Oxymoron: “Heaven on Earth”
Alliterative: “Find Your Freedom”
Hyperbole: “Voted #1 in Equine Real Estate”
Rhyme: “Theurer for Surer”
Range: “National Adverting, Local Expertise”
Essence Tag: “Just Do It”
Use Copy that is Short …
…But Persuasive
3,000,000 Visitors per Month! Discover Why
National Marketing, Local Expertise
Uniting Local Sellers with Nationwide Buyers!
Grand Opening, Since 1925
Sell Your Home on 1,000 Websites
Determining Ad Effectiveness
“The BIG 3” Test
1.
Motivating Message
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Real consumer need or want
Call to Action – Tell them what they should do
Clear Branding
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3.
Clear Company Branding
Entertaining
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Somehow interesting, different, unexpected,
celebrity, personal
Using words or images
Effective Marketing
Communication Process
• Understand Why You Are Unique and Better
– Point of Difference
– Reasons to Believe
• Write Creative Briefs for Each Initiative
• Evaluate Creative Against the Brief
• Practice Copy Principles
– Fewer, Interesting (Different)= Memorable
Media Mix
Most Heavily Dependent on Your Target
• Media Planning
– Establish a Budget
– What media habits does your target have?
– 1 Frequency – Maximize Reach
• Heavily Dependent on Your Main Objective
– Launch / Awareness = Billboard, Newspaper, Radio Remote
– Limited Time = Signs, Radio, Email, Direct Mail
– Market Leadership = All Media (esp Billboards, Newspaper
and TV)
– Listing Advertising = Consider All, Target and Timing
• Ask for “Value Added” from Media Companies
– Free Special Events, Promotions, Networking
Short Sales
What Every Agent Should Know
Short Sales
Some of your clients may find themselves in a
situation whereby they are unable to afford their
mortgage payments.
In these situations, a short sale may be a good
alternative to a foreclosure.
Short Sales
What is a short sale?
• Selling a property for less than what is owed.
• The lender holding the mortgage agrees to take less
than the mortgage payoff amount.
• Agents must understand this technique
as their seller’s biggest investment and future home
is on the line
Short Sales
Pros
– May be the best option for your seller
– Expertise your sellers will value
– Can be less damaging to your sellers credit (vs foreclosure)
– Stops collection calls from the mortgage company
– Can save the embarrassment of having a sheriff sign on the
property.
– No foreclosure notice printed in the newspaper
– Typically much quicker than a foreclosure, even though it may
take 2 to 3 months or more
– Being pro-active in resolving the matter is usually much less
stressful than just letting a foreclosure happen
Short Sales
Pros
– Some lenders will loan to a short sale seller within 2 (Fannie /
Freddie) – 5 years
• Foreclosures at 5 (Fannie / Freddie) -7years
– Short sales stay on your credit report 7 years, bankruptcy 10
years.
• May be able to get a short sale removed after 4-5 years,
not foreclosure (legal requirement on foreclosure).
– New information as of January 2009: There is ONE major
benefit by SOME FHA lenders! A short sale will not be
counted against a borrower if they want to buy a new home
right away. A foreclosure requires a waiting period of two
years
Short Sales
Pros
– You can negotiate credit reporting by the lender, it is their
choice on short sales, not foreclosures
– Lenders may be more open to a short sale in your credit
report versus foreclosure.
– You settle all debts, foreclosure can still pursue 2nd
mortgages and debt deficiency judgments.
Short Sales
Cons
• Lower Commissions
• Labor Intensive
• Time Consuming
• Learning Curve is Large
• Negative Credit Score Implications
Should not be your sole focus as
mortgage restructuring (government programs)
and time requirements may limit the volume
of available deals
Short Sales
Basics Facts
• Will still be a major hit on their credit rating,
most believe it won’t be as bad as foreclosure.
• Some banks hide deficiency balances in the short sale,
so this must be negotiated out.
• In a short sale, the lender pays the broker’s commissions.
• Banks threshold are typically 85-92% of current market value
− You can sometimes get better than this, but it is rare.
Short Sales
Process - Key Steps
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First try loan modification.
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Try to find and work with a short sale processing company on at least your first
couple of deals. Find one that takes a partnership approach where you work with the
client, the short sale company works with the bank. A good short sale processor will
walk you through the special paperwork that is required, and be able to provide help
along the way.
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Work with an Experience Mentor on your first few short sales.
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New Agents Close 50%, Experts Close 95%
Focus on only listing short sales that have a high probability of closing.
Look for:
1. A motivated, responsive seller
2. Loans from lenders that are likely to work with you
(no private money loans, liens, or judgments)
3. Properties that aren't ridiculously upside down
(asking the bank for less discount improves likelihood of a close 85% or less)
4. Properties that are easy to value
(no unusual features, lots of local comps).
Short Sales
Process - Key Steps
− A successful agent must be detailed oriented, organized and willing to do significant
paperwork (approximately 200 pages)
− The work is similar to being a mortgage broker
− Only submit 110% Complete Packages to the Lender
− Always include a BPO (even if not required)
− Get foreclosure comps for the bank.
− Seller MUST have a very good “Hardship Letter” plus strong evidence
− Can happen in 30 days from submission if 110% complete
− Have a Bonafide Offer
− Do the bankers job for them
− Time to acknowledge 3-7 days, Time to approve 30-90 days
− Commissions allowed 3%-6%
• Be prepared to defend your commission rates, esp. on 2nds with some banks.
“Policy” on rates, may not always be policy.
Short Sales
Process - Key Steps
• Call the short sale negotiator every 3 days
• Be courteous and professional on the phone when dealing with the lender.
• Know ahead of time who the negotiator's team leader is, and who the team
leader's manager is.
• If you are not getting response on every 3rd call, the next call should be to the
next level up. Once you have escalated to the upper level, insist on them
remaining in the loop of emails, internal emails, voice messages or what ever.
• Make sure to write the loan number on every piece of paper, including the
contract, you send to them.
• Call the dept. who is handling the SS and let them know you are sending a fax.
Then faxing a page or two to them every few days with the loan number on it
forces them to pull the file, and add the fax, which then has the file going to the
top of the pile.
• Get a written “full” release of all liability from your lenders. DO NOT complete a short sale
unless your lender(s) will provide a full release, IN WRITING. Do not rely on anyone's
advice that, "they usually don't pursue it." Some banks wont.
Short Sales
Additional Facts
• Effective 12-16-09, borrowers are not eligible for a new FHA mortgage if they pursued
a short sale agreement on their primary residence to
1.“ take advantage of declining market conditions”
2. “purchase another similarly priced property at a reduced price (short sale price) within
commuting distance”.
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Borrowers are cleared for a new FHA-insured mortgage if they were current on their
previous mortgage and other debts at the time of the short sale and if the proceeds
from the short sale serve as payment in full.
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A borrower that executes a short sale while in default on their mortgage would not be
eligible for a FHA-insured mortgage for three years from the date of the preforeclosure sale. Some lenders can make exceptions if the default was due to
circumstances beyond the borrower’s control such as the death of the primary wage
earner.
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But, it means that anyone eligible for the Home Affordable Foreclosure Alternatives
program (HAFA) would not be eligible for a new FHA-insured mortgage for three
years. Under HAFA, the US Treasury Department provides incentives to servicers,
banks and investors to pursue a short sale for seriously delinquent borrowers.
Short Sales
Short Sale Information - FAQ
Question:
I have been told that if I sell my house for less than what is owed, my mortgage
company will issue me a 1099 for the difference, and I will have to pay taxes on that. Is
that true?
Answer:
In 2007, the Taxpayers Debt Relief Act states that the homeowner will NOT owe the IRS
taxes from a short sale 1099. (You will still receive the 1099 but with no federal tax
implication.) This act is in effect until 2010 and will most likely be extended – was
it???. Therefore, there is no federal tax liability associated with a short sale at this
time. To obtain information regarding any state or local tax responsibility, please
consult your accountant.
Question:
Will I be responsible for paying the difference back to my mortgage company?
(Will my mortgage company issue a deficiency judgment?)
Answer:
Some mortgage companies will issue a deficiency judgment and expect the homeowner
to pay back any amount that is owed to them after the sale; however, the amount is
usually substantially less than the deficiency judgment that would be filed as a result of
a foreclosure. It pays to do a short sale instead.
For legal advice on possible obligations after a short sale
or foreclosure, please consult your attorney.
Marketing 201
Principles of Effective Marketing
and Core Techniques