I have decided to use this assignment to market a non-existent real estate company. This will be an extension of work that I did last fall in BUS132 (Marketing) at MiraCosta. This plan markets my services as a real estate listing agent. The target market is very narrowly defined as:
Homeowners over the age of 55 living in Rancho Santa Fe
[Note: In this case, I am marketing my services to potential homeowner-sellers. To this end, my goal is to obtain a client who will contract with me to list their house for sale. This is the first step. Once I have obtained the listing, now I need to market the home to potential home-buyers! These are two different target markets! For the purposes of this project, I am going to focus on marketing my services to potential home sellers.]
To this very specific target market mentioned above, I am selling my services as a "downsizing expert". The reason I chose this target market is because it is an age demographic that I respect and enjoy being around.
The industry and demand trends for this market are as follows:
As of July 2015, 27.6% of the U.S. population is over age 55(1). A large percentage of this population are homeowners. Of those age 65 and above, 77.9% own their own homes, of people age 55-64, 74.7% own their own homes (2,3). Many of these people are maintaining the larger home that this demographic has tended to prefer. They have not yet downsized from the homes they bought when raising their families (4). In California, more than 70% of people over the age of 55 have been in the same home since 2000, and over 50% of the people in that age group have not moved in 25 years (5). As these homeowners retire, many will begin to notice that a large portion of their income is being used to maintain a large home, most of which they are no longer using. Paying the water bills, heating/cooling bills, and managing pool maintenance, yard maintenance and house cleaning might become overwhelming. They may become more interested in travel or in living closer to their grandchildren. They also might be facing health problems and needing more assistance in daily life. Oftentimes homeowners in this demographic have lost a spouse, and are attempting to manage their large property on their own. This is the point at which they will look to downsize (6). According to SANDAG, in the Rancho Santa Fe zip codes, 38% of the residents (4,355 people) are currently age 55+ (7). In addition, 86% of the housing in 92067 and 92091 are detached, single family homes. With a median sales price of 2.22 Million year-to-date in 2016, most of these homes are large and built on lots over 2 acres in size (8). These older homeowners, living on large, high maintenance properties are prime candidates for downsizing. My service will assist the homeowner in making this life change.
Social media is NOT the best or only media to use for this target market. This age demographic tends to respond to more traditional advertising methods (newspaper, direct mail, in-person selling etc.). However, to develop a comprehensive marketing plan, I feel that including social media is critical. I have chosen Facebook as the most important social media channel that I will use because it is the primary social media site frequented by my target demographic (9).
(2) “Boomers Retire, and California Trembles” First Tuesday Journal, 26 July 2016. Web. 28 Sept., 2016.
(3) “Field Guide to Working with Baby Boomers” Realtor. Realtor. Aug. 2015. Web. Aug. 2015, 25 Sept. 2016.
(4) “Analyzing Trends: How Investors Will Profit from Millenials & Baby-Boomers” Real Wealth Network. Real Wealth Network. n.d. Web. 25 Sept. 2016.
(5) Huang, Josie. “Baby Boomers Behind Housing Logjam.” SCPR.org. Southern California Public Radio. 28 April 2016. Web. 25 Sept. 2016.
(6) IBID. First Tuesday Journal.
(7) “Demographics and Socio Economic Estimates U.S. Postal ZIP Code 92067 and 92091” SANDAG. SANDAG, Current Estimates. 24 Feb. 2016. Web. 25 Sept. 2016.
(8) “August Statistics Detached Homes” The San Diego Realtor. The San Diego Realtor. Sept. 2016. Web. 25 Sept. 2016.
(9) Olenski, Steve “7 Reasons Why Marketing to Baby Boomers is Unique”, Forbes, 5 June 2015, Web. 14 Nov. 2016.