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AFGM Sample Marketing Plan 1
AFGM Sample Marketing Plan 1
AFGM Sample Marketing Plan 1
Client M “makes a new home possible with the only guaranteed lease program
available.”
In today’s tough housing market, even qualified new home buyers find the burden of selling an existing
home difficult, if not impossible, to overcome. Moving can be driven by a need or a desire—and
building a new home is exciting and stressful at the same time.
Through partnership with a preferred set of home builders in the metro-Detroit and greater Michigan
area, Client M has developed a guaranteed lease program for qualified clients that covers up to 6 years
of lease payments on an existing home. These partnerships provide the incentive for Client M which in
turn funds the lease program on a 2 year rolling contract basis. The maximum lease payment is
$1200/month.
Lease payments, utilities, tenant management and maintenance are strong deterrents for the typical
homeowner, but Client M takes over the headache of managing a second residence and provides
financial comfort with their guaranteed program. All aspects of the tenant management is handled by
Client M—who essentially becomes the client’s tenant and in turn, sub-lets to actual occupant tenants.
Client M currently has a limited set of preferred builder partners and is therefore limited in prospecting
areas for those open to relocation and/or new home builds. The 2010 business goals include the
expansion into other non-competitive builder relationships that will provide additional coverage for the
Michigan market.
Target Audience:
• Adults 24-35
• HHI $100K or more (to allow for the approval of two mortgages—as the first mortgage is still
carried)
• Located in key geographic areas with the propensity to move/build at the preferred builder site
location (these will be calculated specifically to align with any co-branding of marketing
materials)
• Often experiencing a life stage trigger such as (but not limited to):
o Children reach school age and school district qualities become important
• Some occupational groups index highly as customers such as teachers and police officers—these
special occupational target groups will be considered in the overall marketing plan execution
Competitive Landscape:
Although there is no direct competitive product or service, homeowners who find themselves in this
situation have other financial and real estate-based alternatives (not all pleasant):
• Foreclosures
• Short sales
• Realtors
• Secure your asking price if your home sells during the lease term (by MPH only)
• Cover the cost of gas and electric for your leased home
• Handle any necessary tenant repair (up to $5000) during a lease term
Pricing
Client M does not offer a discount to clients on their new home, but rather facilitates the ability to get
into a new build via its lease program and financing relationships.
Additionally, Client M has a unique tax advantage that was extended (and provided a sales lift late in
2009) for a $6500.00 tax credit for home buyers with the following qualifications:
3) Must have lived in your current home for 5 or more of the last 8 years
4) Must make less than $125k for individual or less than $225k for couples
This tax credit will provide a key messaging platform for the month of March as the tax window closes
and creates urgency around making this decision.
The Builder Partner channel is the most successful channel with respect to closed leads and represents
an overall lead source for 40% of total leads annually. These leads originate primarily at the builder
partner location where Client M represents an alternative solution for qualified new home buyers who
wish to build but have a home to sell. The volatility of the real estate market makes for an uncertain
environment—both for the builder and potential new home owner. Because these leads are self-selected
(meaning they are choosing to look at builder options), they are the most likely leads to close.
Additionally, these prospects may have done some initial investigation into the viability of qualifying
for a mortgage and/or have researched the new home marketplace for builders, locations, schools and
other decision-making factors.
Radio advertising has been a primary marketing tool and is a channel shared with the builder partners—
both from a branding and costs perspective. Because radio has been virtually the only mainstream
media source for advertising, 40% of leads come through this channel. Radio presents an opportunity to
deliver a detailed message, even in a short :15 or :30 second format. The offering for Client M is a
complex offer with a minority of interested parties actually qualifying. Radio, therefore, represents a
good choice for messaging. Radio does not, however, provide the most precise targeting as its audience
cannot be segmented into the more focused, qualified set needed for optimal conversion. Radio is a
good complementary platform as part of an overall media mix to provide awareness, frequency and
targeting to some degree based on audience characteristics during on air time. Sales conversion rates
will not be as high through this channel as with the other two mentioned in this section, although it has
the potential to generate many more handraisers (not all being qualified).
Referrals are the most coveted form of leads because they represent not only a highly convertible
prospect, but also a prospect that has been “marketed to directly” via a testimonial. Referrals and
recommendations are becoming a critical part of any marketing mix and are widely promoted via tactics
such as loyalty programs and social media/sharing platforms. Referrals represents 20% of the lead
source for Client M today. As the number of closed sales increases, so will the opportunity for acquired
customers to refer people they know. As the saying goes, “birds of a feather flock together” and many
of these referrals will have a high likelihood to close. Ongoing referral programs and identifying what
In addition to the existing channels above, it is recommended that Client M add targeted paid media
placements to the overall advertising mix. A detailed spreadsheet accompanies this recommendation
with:
A targeted budget of $120,000 was used to optimize the media mix and marketplace concentration
intended to align closely with peak builder and real estate market activity. The numbers provided on
the media mix spreadsheet represent best known estimates--actual costs may vary depending on final
execution and timing. The table below highlights the mix if media (not all running at the same time)
and some key advantages:
• Provides format that can be taken home and acted upon at any time
POS Display
• Provides sales tools for builder partners to better promote the
program and speak knowledgably about the program details
activity
Direct Email • Easy to employ social sharing tools and encourage viral marketing
• List management and validation can be done easily with a 3rd party
• Pizza consumers are more educated, have higher HHIs and tend to
skew towards families more than the general population
The referral program will continue throughout 2010 as a direct email campaign recommendation. The
cost for this effort is captured in the agency monthly fee and emails for closed customers are used
instead of purchased—so the recurring monthly OOP costs are zero. There is one event recommended
during the summer of 2010 to proactively create an event or venue experience that encourages otherwise
busy acquired customers to make a referral. Although the monthly outreach will prompt for ongoing
One PR-based activity is included in this plan which includes selecting up to 5 awards for submission
for Client M (or its CEO) for recognition and subsequent media outreach activity. The majority of all
annual award submissions are due during Q1, so this effort must be completed by 4/1/2010. An initial
set of recommended awards includes:
Messaging:
There are 3 recommended messages that complement the media mix concentration and recommended
executions. Each will leverage existing assets where possible, edit existing assets or develop media
assets as necessary. The cost for modifying assets is included in the monthly agency fee based on the
current media mix plan (additional outside production costs may apply). The messaging themes are as
follows and are intended to be themes only:
"Even if you missed the tax credit, you can still move affordably"