"Marketing in the Timeshare Industry"
Marketing in the Timeshare Industry Marketing is: The creation of demand management of demand ensuring that the consumer is satisfied Marketing Objectives To educate the public about the benefits and features of timesharing Objectives cont’d To ensure a steady flow of interested prospects due to very intensive regulations and physical characteristics it is very difficult to take this “product to the market” Timeshare Marketing Dilemma How many of your friends or relatives have deliberately set out to “buy a timeshare?” Marketing components Location land is typically is a premium highly regulated competition is intense Marketing components Land acquisition is impacted by zoning environmental restrictions complex planning for future phases of course, is challenged by your financial resources Marketing components Property Access infrastructure challenges being able to readily see it is a good idea any roadway challenges that can be foreseen? Must have ease of access given the potential traffic Destination Access agreements with recreational areas & destinations free tickets discount tickets is transportation provided? Marketing Components Not a true marketing component but the design of the physical component does have everything to do with consumer r&d consumer wants and expectations Marketing emphasis Developer must decide the degree to which marketing will be exercised internally or externally lead generation? Prospecting avenues Prospecting is very Direct mail costly. Premiums In fact, it is the highest Mini vacations up-front costs in this industry! OPC’s Closing rate is not stellar Ranges from 1 in 10 people to a little over 2 out of 10 people Off Premise Centers (OPC) Placed strategically to attract individuals that Fit your consumer profile Provide maximum visibility Again, premiums are a big attractor! OPC’s are highly regulated in many states Location (I.e., booth) Hours of solicitation Register with the city, county or another appropriate agency OPC Concerns High traffic Destination markets Fees Selecting the appropriate staff Knowledgeable Ability to sell Education Number of expected tours per day/per week How to improve your Closing Rate Qualifying the Couples prospect in advance Credit standing Not just anyone gets a Age ranges tour? Cannot discriminate on Exchange rate Age, race, color, issues? religion, sex, age, handicap, familial status, national origin, etc. Direct Mail Direct mail Junk mail Packaging extremely important Working the Vendor/Merchant Drawing Drop Box Fill in your name, address and contact information in return for a premium This method is not as costly as the OPC But is less effective Must be followed up by a telemarketer Validates hot leads (bona fide leads) Telemarketing Rapid dialers Increase “hit” ratio Prime time calling Professionally staffed Not automated Regulatory issues Maintenance of a “no-call” record Telemarketing Telemarketing practices must be monitored Mini vacations Has a better close rate 20-30 percent Resort sales An eye must be given to coordinating advertising efforts to: Maximize selling of all units Avoid “creaming” (selling of best units first) Reloading Milking the Cow Best prospects are those that have already purchased This implies that service marketing is critical No service failures allowed Referrals Tapping the Satisfied Owner Incentives exist Money Points Merchandise