MARKETING VS. ADVERTISING

Real estate technology expert Matthew Ferrara of Matthew Ferrara & Co. underscores the difference between marketing and advertising properties. If Realtors place a picture and a home’s specifications in the newspaper or online, they’re merely advertising, he says. But Ferrara insists that advertising is not effective, citing a consumer survey by NAR that found fewer than 5 percent of homebuyers consider newspapers helpful; in contrast, virtual tours were deemed useful by over 88 percent of respondents. According to Ferrara, the biggest difference between advertising and marketing is that the former concentrates on a product, while the latter focuses on people and the opportunities available to them through the purchase of the product. While homebuyers need a certain amount of bedrooms, Ferrara says most make a purchase based on proximity to water or downtown areas or the lifestyle associated with a property. However, most real estate advertisements do not show people living in the home or enjoying amenities. Web sites that allow buyers to search by value – as new buyers or retirees, for example – are more useful than searches based on home price. Ferrara believes homes targeting entry-level buyers should be marketed on YouTube or iTunes because today’s buyers in this demographic generally are interested in videos and podcasts, while maintenance-free condominiums geared toward empty nesters could be marketed on sites with guided video tours and printable high-quality brochures.

Source: Maryland Realtor (09/01/2007) Vol. 41, No. 4, P. 27; Ferrara, Matthew
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