Target marketing is defined as the “market segment to which a particular good or service is marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other combination of demographics.” (Wikipedia) Target marketing is not limited to other businesses out there. It plays a significant role when you’re marketing your multifamily deals.
There are many facets to marketing. You want to be sure you target market. The more you can target market, the more precise you can get with your benefits and the more likely you will find buyers and investors.
Here are some possible target markets:
- People looking for retirement funding
- People that need income or more income
- People looking for more passive income
- Nurses in real estate
- Women in real estate
The list can be endless. The only limits are your imagination. Be creative and don’t hesitate to think “outside the box”. The more you can narrowly define the group, the more you can tailor your multifamily deal to meet the needs of that group. You will be able to emphasize the features that are attractive to that demographic.
Once you have a target market in mind, you can then, in turn, create your Investor Profile and modify it to ask the right questions of your potential group of investors. Just remember that the features that one target market might find attractive may not be the same features that another target market is looking for.
For instance, a multifamily property located in a high crime area that needs a lot of rehabilitation is more than likely not going to be something that an elderly lady looking to maximize her retirement money is going to be interested in.
If you have colleagues, do not forget to include them. If you have associations with other groups of people such as those who share a hobby or past-time with you, you can possibly count them as well. If you sit on the board of an organization, you might very well have potential investors there waiting for an opportunity such as yours.
Remember, define your target market and then focus on relating to why they need the money. The more you can emphasize the benefits of your deal, the more you will be able to grab their attention and be able to sell them on it.