August 19, 2021
Importance of Builder Co-op Programs for Master-Planned Community Marketing
Master-planned communities that utilize home builder co-op marketing programs offer incredible benefits for the builders in the community. A builder co-op program allows builders to participate in a large-scale project along with other builders to garner high name recognition, as well as boundless marketing opportunities.
By joining forces to create a grand master-planned community, builders relish the benefits of reduced costs and the ability to expand marketing efforts with impactful strategies for a wider target audience. Let’s delve into what a builder co-op program entails, as well as the advantages this system affords builders within a master-planned community.
What is a Builder Co-op Program?
Many master-planned communities are comprised of homes built by various home builders spread throughout different neighborhoods, pods or segments of the community. In these master-planned communities, the developer typically puts a builder co-op program together to fund the community’s marketing budget.
Each builder is required to contribute their prorated portion to the budget to support a strong marketing strategy that lasts from the launch of the community to the last sale. In a builder co-op marketing program, each builder is required to contribute to the budget anywhere from 0.5% to 1% of total sales price of each home they sell.
This arrangement drives marketing efforts that are dependent on successful community sales, and the provided revenue from each sale also allows consistent growth for the master-planned community’s brand marketing. This approach is to strategically deploy marketing efforts over the life of the community following the most impactful tactics and timing.
Next, we’ll discuss several benefits of a master-planned community builder co-op marketing programs regarding costs, marketing impact, extensive community offerings and widespread target audiences.
With multiple builders funding the marketing budget, the first benefit is fairly straightforward – incredible cost savings. When a community has just one builder, they are solely responsible for all funds necessary to market the community.
Depending on the success of the community, a sole builder may experience strain to provide the necessary costs to bolster the community’s marketing and promotion. However, a master-planned community marketing budget dependent on the success of several builders is likely to face fewer obstacles and considerably less budget strain.
As well as reduced or shared costs, a marketing budget generated from the profit made by each builder also enables the master-planned community to amass a substantially larger budget than what a single builder might allocate for a smaller community. This means that each builder contributes less money than what is typically necessary and also creates greater value by compiling their portion with that of other builders within the community. Without draining their own assets, each builder supports and forms a strong foundation to promote the master-planned community to its key target audiences. Although marketing budgets are often neglected and seen as an insignificant expenditure, this key resource is vital to establishing a master-planned community’s visibility and reach to homebuyers throughout the life of the development.
Opportunity to Implement Strong Strategies
Master-planned communities with large budgets are capable of implementing sophisticated strategies that effectively engage their ideal target audience. These elevated marketing opportunities enable master-planned communities to gain and utilize an in-depth understanding of the target homebuyers, as well as produce impressive experiences that boost target audience reach and engagement.
Storytelling – Creating a larger-than-life community that offers homebuyers a sought-after destination is no easy feat, but it’s made possible through a sizeable and effective marketing budget that is allocated toward compelling storytelling. To illustrate the power of placement, it’s important for master-planned community marketing to implement strategies that position it as a desirable destination that truly feels like a wonderful place to call home.
With the aid of a substantial marketing budget, master-planned community marketing paints a picture of the target audience's lifestyle preferences and seamlessly incorporates those penchants into the promotional campaign story for the community. Offering homebuyers a great story is an exceptional method to share the scope of a master-planned community and deliver the story in an emotionally driven way that resonates with target audiences.
The master-planned community story should be consistently embodied throughout every creative branding strategy from the community’s website to its social media channels, digital and print advertisements, outdoor advertisements, radio commercials, direct mail, online and physical brochures and community signage. Many of these tactics are costly, which makes builder co-op programs all the more beneficial in making these marketing opportunities affordable for master-planned communities.
Large-Scale Events – Another way master-planned communities utilize an expanded marketing budget is by offering wide-scale events to attract both homebuyers and real estate agents. Whether it’s a thrilling concert, mesmerizing hot air balloon festival or a remarkable agent open house, master-planned communities host incredible activities to draw attention to the community’s location and offerings.
By hosting these events, master-planned communities allude to the exciting lifestyle that awaits homebuyers in the community. While events provide an opportunity to build enthusiasm with current prospects, it also offers additional openings to boost reach and visibility by gaining coverage within local news platforms and magazines.
Greater Name Recognition
As master-planned communities often attract well-known, respected home builders, this provides the community with opportunities for greater reach. As the individual builders promote the homes within the master-planned community, this widens the spread of the community’s promotion among potential homebuyers.
With increased visibility and name recognition, master-planned communities gain greater trust and hold strong credibility among homebuyers. This positively established reputation enables master-planned communities to reach and engage prospects in large numbers during the community’s development as the builders invite homebuyers to join VIP lists, open for sales and begin construction of new phases.
Diverse Home Selections
Rather than offering a singular vision, master-planned communities deliver diverse home selections that differ in style, price, layout and more. With diversified offerings, master-planned communities possess widespread marketing opportunities to showcase the numerous collections available to homebuyers. Each builder within the master-planned community offers homes with unique benefits and appeal, and this is an incredible advantage for the community’s marketing efforts. This diversity of home selections combined with strong master planned amenities and desirable lifestyle creates a broader reach and appeal in the home buyer market.
Wider Target Audiences
With diverse offerings of homes and amenities, a master-planned community creates greater appeal for wider audience demographics. While the master-planned community brand story may be the marketing element that initially gains homebuyer attention, the community’s marketing should take the next step to distinguish the community’s appeal to several buyer personas.
Separate sections of a master-planned community may offer varied home sizes, layouts, architectural styles and prices that fit the preferences and needs of vastly different homebuyers. From affordable entry-level homes to stylish townhomes, single-family homes, ranch homes and large estates, homes within a master-planned community encompass incredible variety and abundant choices.
Whether the audience is a first-time buyer, active adult or move-up buyer, the master-planned community marketing shares the community’s wide array of options and communicates how each section of homes meets the distinct needs of differentiated target audiences.
Let Milesbrand Create Exceptional Branding for Your Master-Planned Community
Although builder co-op programs provide master-planned communities with plenty of marketing potential, it’s important to develop strategic branding in order to maximize on a builder co-op marketing budget for highest success. Successful master-planned community marketing starts with compelling differentiation that guides extraordinary branding.
At Milesbrand, we can bring your brand to life through incredible brand positioning and award-winning creative design. Set the foundation for your brand by contacting us today to get started.