I attended a ULI forum on developing and marketing master-planned communities (MPCs) yesterday. Here are the notes I took. The comments were made somewhat randomly, so you may see subjects revisited later in the discourse. Also, much of the social media comments are old news to marketing people and Gen Y members.
· A presence on FaceBook is mandatory for development product, and Twitter, YouTube, LinkedIn, and Digg also are important marketing devices for driving prospects to your website.
o Stress product differentiation and value
o Give timely information that drives prospects to return to your website
o Use feedback (positive and negative) to adjust the pitch and content of your marketing efforts
· In this economy, shore up your existing customers and prospects as opposed to trying to develop new markets.
· It’s very tough to find a happy medium between costs and amenities offered – for example, golf course expenses (@$2 million/year) are killing MPC developers and there currently is an oversupply of golf in the Florida market.
· The focus should be on creating “lifestyle” and “sense of community” with emphasis on family-oriented activities. BUT you can’t be all things to all people, so pick your target market carefully.
o Value is the key in marketing product in today’s marketplace.
o You have to compete on value AND price, so offer some amenities, not a stripped, bare bones community. Think about the public’s feeling about airlines – passengers are nickel-dimed to death after they purchase a seat
o The buyers’ mantra today is “show me the value”, so building the amenities early in the project life cycle is almost mandatory
o Fitness centers and a full calendar of activities are critical
o Buyers today are not willing to pay for a lot of options and upgrades (think pools) like they used to do
o Be prepared to “sweeten” the deal by throwing in some options/upgrades
· It’s still important to create a lifestyle, a core neighborhood feel, so incorporate online as well as onsite social facilities.
· Prospective buyers are very sensitive to costs – both current and ongoing (c.f., HOA fees, CCD costs, etc.). They want to know that they have an exit strategy if the costs go too high.
· Multifamily is very capital intensive and represents a small part of the demand for housing market, so single family has to be affordable AND offer value.
· Be flexible so that you can reinvent your project or product if necessary
· If you have to reposition your product or project, use focus groups consisting of existing and prospective residents.
· In MPC purchasing decisions, women drive 91% of those decisions – that should impact everything you do in the development design and marketing processes.
· Buyers today are educated, have access to information as never before, and have lots of options to choose from
o Offer value (not necessarily the cheapest price – value is the “intersection of price and location”)
o Differentiate
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