Luxury Real Estate Marketing: The Inner Game of Market Leadership - Part 2

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Luxury Real Estate Marketing: The Inner Game of Market Leadership - Part 1

October 17, 2011

This is the beginning of a new article series for luxury real estate marketing professionals who have embraced the personal quest of gaining or sustaining market leadership. Here we cover the “inner game” of market leadership.

We have all heard or experienced firsthand that winning the game of golf or tennis, or sports in general, is more mental than physical. True, it is important to have the right physical attributes required to win. But, what matters most, the determining factor for beating a worthy opponent is mindset. In marketing luxury real estate anyone with the means can outspend their competition. But, out-thinking your opponent requires tremendous focus and momentum.

Cultivating and maintaining peak performance in business and in life involves having the right attitude which is the starting point of the inner game. It also requires the alignment of your thoughts and inspired (vs. effortful) action. A negative attitude diminishes your perspective. It is the indication that your thoughts are not aligned. Effortful action follows the misalignment of thought.

Your attitude is a reflection of your belief in yourself or lack thereof. If you do not believe you can become the market leader or if you believe that you cannot hold on to the leadership position that you have achieved it will taint every other thought you have about your luxury real estate practice.

The bottom line on gaining and sustaining market leadership comes down to sustaining the “I Can” belief overtime, without allowing the contradiction of that thought to have any power. Like the children’s story, “The Little Engine that Could”, it is a matter of creating a focused momentum of belief, “I think I can, I think I can, I think I can”. Then, you must notice and appreciate any and all evidence of progress that supports this belief, until you can say “I thought I could”, I thought I could, I thought I could”.

Again, the experience of achieving this state of mind necessitates total concentration. That is, ignoring those who may attempt to distract you, discourage you, or try to convince you that you are not worthy of success. Additionally, there is almost a magnetic pull that you must defy, a pull to conform to mediocrity, a pull to not change the status quo. But, once you break free of this “force field”, another magnetic force field draws you nearer to your goal. That is when momentum propels you faster with even less effort.

You are never too old to listen to the wisdom and optimism of that story about the momentum of belief in yourself. It is a key component in the inner game of market leadership.

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Personal & Company Branding: When You' re Hot, You' re Hot !

October 11, 2011

Photo by Wellesenterprises

When you're hot you're hot. When you're not, you're not! So is the the world of personal branding as a public figure. But, when you are not hot, how do you make a comeback? Your reputation is at the core of your brand value as a luxury real estate marketing professional. And, the importance of managing the perception of your personal brand in the minds of your target market cannot be underestimated. The story of Tiger Woods is a case in point.

Rolex, the Swiss watch company just signed Tiger as its newest brand ambassador. It has been two years since his public relations debacle occurred, a fiasco that cost him dearly in terms of lucrative company endorsements. Most of his sponsors dropped Tiger or did not renew his endorsement contracts. But, with a well crafted co-branded marketing message, “Partnership for a New Challenge”, Rolex has committed to help him redeem his well deserved reputation as one of the greatest athletes in the world.

This story illustrates just how much is at stake when it comes to public opinion and how much the media can amplify your reputation. The same media that helped to build Wood’s reputation tore him down. It will be also be instrumental in building him right back up again. But, what is behind the story is even more important.

People are very quick to judge others. Often, those who have the most secrets to hide are the ones who are the most critical of public figures. But, what about the inner conflicts that Tiger Woods has had to deal with? The opportunity for personal transformation under intense, self-induced circumstances like Mr. Woods created for himself, can be nothing short of life changing and life giving.

No one can truly put themselves in Tiger Woods’ golf shoes. He was famous beginning at a very young age. Could it be that he needed to deconstruct his life, a life that may have been built to a large extent on admiration from others? We need to be less critical and more allowing of others, giving them the room to find themselves, to reinvent themselves.

Branding can be a mental shortcut. We get lazy and forget to give people and companies a fresh chance to demonstrate who they are today, each day. What does it say about Rolex, who was willing to stake its international reputation on giving Tiger Woods a fresh start as a partner in a new challenge?

As a luxury real estate marketing professional, your reputation is built with each transaction you complete. Your personal brand is not only your trademark it is your “trust mark”.

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Personal & Company Branding: A Surefire Way to Challenge the Market Leader

October 11, 2011

As a luxury real estate marketing professional, what is a surefire way to to challenge the entrenched, incumbent market leader in your marketplace or niche therein? This is a similar question that countless international tech companies have been asking as they attempt to challenge Apple in the category of tablet computers.

iPad owns 70% of the tablet market in the USA. Many companies have tried to challenge Apple in this arena. Yet, only one company is poised to make a dent in Apple’s market share. That company is Amazon who recently launched their line of Kindle Fire tablets.

The best brand strategy for a challenger is to sharply position your product or service (in the case of luxury real estate marketing) as the opposite of number one. This gives consumers a viable alternative to the market leader and summarily dismisses the rest of field of competitors. That is exactly what Amazon is attempting to accomplish.

As the world’s greatest online retailer Amazon understood something that has eluded most other tablet manufacturers: So far it is consumers, more so than businesses who are using these devices and they are using them to consume apps and media (books, magazines, movies, TV shows and games). Tablets are predominantly virtual vending machines!

In addition to Amazon’s strength as a retailer, they also provide out-sourced, cloud-based web services on their very powerful servers. Netflix, for example, uses Amazon’s web services to run their website. Leveraging this capability for their new Kindle Fire, they were able to bring down the cost of manufacturing their tablets to less than half of ALL of their competition.

In fact, Amazon is able to sell their Kindle Fire line at a slight loss because they are able to make up the difference many times over with the sale of apps and media. Equally important is the fact that all of the media that you purchase from Amazon is stored on their servers (i.e., in the cloud) not on the hard drive on your Kindle which is another cost saver in manufacturing.

By lowering the price to a point where other tablet manufactures cannot compete, those who do not have their own app and media stores, they have potentially catapulted themselves to the number two position. Amazon has also framed the choice for consumers as a two company contest between the iPad, with premium features, and the more basic Kindle Fire tablet, simply based on on price.

Both Apple and Amazon have a tremendous competitive advantage over the rest of the tablet manufacturers. They both understand that once you store your apps and media in their cloud, your likelihood of switching clouds is minimal. It is just is too much trouble to switch for most consumers.

Finally, Amazon’s other strength is their worldwide customer base. The Kindle Fire has come out just in time to gain major sales traction during the 2011 Holiday season.

Amazon has even changed the game for Google who supplies the Android operating system to most manufacturers of tablets including the Kindle Fire. Google has a strong potential customer base, they have cloud based services, and they have an app store. But, they are not strong in media sales and they do not yet have their own tablet device.

Other potential iPad challengers have their own operation system. But, Microsoft, who has a cloud based service (Office 365) and Research in Motion, who is spending $100M to purchase a cloud based web service company, are simply late to the party. Neither have an substantial app or media store.

The moral of this story, for luxury real estate marketing professionals, is twofold:

The best way to gain and sustain market leadership is to identify an uncontested or under served market niche that you can serve,with passion and better than anyone else in the world (your marketplace), by adding extraordinary value. That is what Apple did with the iPad.
Here is a surefire way to challenge the incumbent market leader: First assess your strengths and your competitor’s vulnerabilities. Then, take aim at that the weakest vulnerability with full force and concentration. Position yourself as the opposite of market leader to create an either/or choice for the consumer. That is what Amazon did by focusing on price.

We are not recommending that cutting your commission is the way to challenge the market leader as a luxury real estate marketing professional. Market leaders in real estate often get complacent and have plenty of other vulnerabilities. The key to challenging the entrenched incumbent is to create a truly viable alternative that positions you firmly as the number two choice and summarily renders the others a distant number three at best.

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Steve Jobs:The Unabashed Pursuit of Market Leadership

October 6, 2011

Photo Courtesy of Apple

Steve Jobs exemplified the power of visionary leadership. He brought Apple from the brink of bankruptcy to the pinnacle of success, the leading technology company in the world. No one in the realm of business has personified our favorite motto better than Steve: ‘The Unabashed Pursuit of Market Leadership”. As much as Apple has become an icon of the best of America in the minds of people the world over, Steve Jobs will be remembered as the greatest iconoclast of business for generations to come. He challenged conventional wisdom and traditional beliefs, and shattered the very foundations upon which traditions and institutions rest.

It was Steve who envisioned the “post PC era” that began with the iPod, the iPhone and the iPad, products that changed the game for entire industries. He turned the tables on many entrenched, incumbent market leaders. Suddenly, companies such as Microsoft, HP, Nokia, and RIM (Blackberry) lost their footing and became the challengers as Apple seized the lead.

The day before Steve’s passing, Apple launched iPhone 4S and iCloud that allows you to backup and synchronize all of your digital content on all of your devices. Even though there were over 200 new software features in the new phone, including Siri that lets you interface with your phone with voice commands, the media was underwhelmed. Perhaps it was because Steve did not deliver the message. But, many missed the significance of the extremely important message itself, Steve’s message about the post PC era.

What characterizes the post PC era apart from the new computing devices is the “cloud” which is remote computer servers. No longer is it necessary for your personal computer to house all of your software (apps), your photos or the documents that you regularly use. No longer is it necessary for your mobile devices to store your music library, your books or your videos. Access to apps and digital media can all take place in the cloud instead of on your computing devices. The big question of the post PC era is this: “On whose cloud will your stuff reside”. And, Steve wanted your cloud to be Apple.

The cloud completely changes the economics of the digital age. It brings down the costs of manufacturing devices and turns your devices into vending machines and even wallets. Without an app store, a music store, a book and magazine store and a movie and TV store, the profit margins on the sale of actual devices are quite slim due to fierce international competition.

Steve Jobs predicted that the economic driver of the post PC era would equate to this: the amount of revenue from store purchases (apps and media) per device. He knew that sales would be predominantly driven by consumers vs. enterprises as they consume more media than business software on mobile devices. He understood the importance of superlative customer service. He was a contrarian when it came to opening retail stores where consumer could interact with the products and ask any question without feeling ignorant.

He also recognized the importance of providing the full spectrum of hardware, software, customer service and stores. Only Apple has the entire package. But, most significant of all, in terms of insuring the future of Apple is the seamless integration and synchronization of all devices via iCloud, which is given away for free. Jobs understood that once you stored your documents and media in your Apple “locker,” and you could access it effortlessly, instantly and simultaneously from any of your devices, it would be too much of a hassle to switch clouds, i.e., switch brands.

As a result, Steve Jobs’ visionary leadership at Apple will be felt for years to come. He made sure of that. But, for millions of us Steve Jobs the man, the iconoclast, will always represent the spirit questioning conventional wisdom, following your heart and trusting your instincts. Thank you, Steve for encouraging us to relentlessly and unabashedly pursue market leadership.

Luxury Real Estate Marketing: The 3 Symptoms of a Brand Identity Crisis - Part 2

October 4, 2011

Here are the 3 symptoms of a brand identity crisis. If you are experiencing any of these symptoms as a luxury real estate marketing professional it might be happening to you!

You cannot define precisely how you are different and better than your competition.You cannot instantly communicate your extraordinary promise of value to your ideal clients. Your market share is eroding.
“Market Leader Envy”. You feel jealous of the market leader.
The "Copycat Syndrome". You feeling the only answer is to copy the market leader

These symptoms do not mean that there is anything wrong with you. They just indicate that it may be time to re-examine, rethink and re-formulate the way you are doing business. It means that you need to tune into your authentic brand signal, re-align your entire business model to that signal and then stay on signal.

To illustrate just how much is at stake in re-claiming your brand signal, here are some examples of major international companies that are currently experiencing a crisis in identity, companies who have previously dominated their marketplace as market leaders.

When Apple came out with the game changing iPad they introduced an entirely new category of mobile computing that people love. The tablet was born and an epidemic of “market leader envy” ensued among Apple’s competitors.

Rushing to market with copy-cat models has proven fruitless. For example, Samsung has faced one injunction after another in world markets as Apple has successfully argued that its patents have been infringed upon by the Korean company’s Galaxy tablet.

Research in Motion (manufacturers of Blackberry), the company that once enjoyed close to 50% of the smart phone market is also in identity crisis mode. An internal tug-of-war among top management has been raging over whether RIM’s primary target market is governments and corporations or consumers. Sales for their Playbook tablet have been extremely disappointing.

Although, there are many excellent uses for tablets in business and in government it appears that this device is primarily consumer driven as most people are using it to consume media such as books, magazines, music, videos, and games. Studies by Forrester has indicated that the conversion rate for purchasing all retail items (vs. just window shopping) are higher on tablets than on PCs now.

Countless companies are trying to take on the iPad that now “owns” 80% market share of all tablets sold in the US. Changing the physical features of the device itself as a means of differentiating their product from the iPad has also proven to be a dead end. Competing on features alone is futile. It does not get to the core of the problem.

HP’s failure with its Touchpad is another case in point. Tablets are not just another category of computers. They are vending machines for media and apps! HP understood this principle when they realized that the real profit from printers was not in the physical apparatus but in the recurring income stream of selling ink. This drove the price of printers down sharply creating very thin profit margins on the devices themselves. Apparently, HP did not take this into account when they embarked on manufacturing tablets devices.

The price of ignoring the symptoms of an identity crisis is considerable. Instead of reacting to the symptom of market leader envy by scrambling to manufacture copycat versions of tablets, a move that took these companies off their brand signal, they needed to heed the wakeup call in another way. That is to take the time to re-assess their strengths, to re-think their business model and determine the best new direction for their company.

Recently, HP jettisoned the Touchpad all together once they realized it was not on their brand signal. Today, they are going through a re-assessment, re-organization and re-branding process by heading more in the direction becoming a provider of services vs. a manufacturer of computers and printers. Xerox successfully went through a similar evolution.

Without the entire package of the physical device, the operating systems (e.g., Android) PLUS the app store and the media store the chances of competing with Apple's iPad are slim to none. This complete set of elements is not in the nature, the DNA, the identity, the authentic brand signal of these other manufactures. It is quite a stretch to morph into such a company in time to complete with the iPad effectively on all these fronts. Is there any wonder why these iPad challengers are having an identity crisis?

Only one company so far has figured out how to take on Apple in the tablet category and is equipped with the full package of required elements, the DNA to do so successfully. That company is Amazon, who just launched their Kindle Fire tablet line. Amazon clearly knows its authentic brand signal and it has not deviated from that signal with this new product launch. Amazon is a consumer driven business and they have leveraged their tremendous strengths in this arena to give Apple’s iPad a run for its money.

The story of Amazon's Fire is very exciting! We will be covering it soon! If you are thinking of challenging a dominent market leader in your luxury real estate marketing practice you first need to get over any and all symptoms of having an identity crisis. Cast away all feelings of market leader envy and any impulse to become a copy cat. Take the time to define and artiulate your own unique promise of value. Tune into your authentic brand signal and stay on signal.

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Luxury Real Estate Marketing: 3 Symptoms of a Brand Identity Crisis - Part 1

October 3, 2011

Two timeless quotes apply not only in your personal life but also in your business life as a luxury real estate marketing professional: “Know thy self” and “This above all: to thine own self be true”. In fact, these wise quotes are at the the core of understanding successful personal and company branding. We say, “Know your authentic brand signal” and “Stay on-signal”. In this article series we cover the three most common symptoms that indicate you may be having a brand identity crisis and you need to bet back on your brand signal.

In the context of gaining and sustaining market leadership it is essential to know and then succinctly communicate your brand identity to your target market so they can instantly grasp how you are distinct from your competition. How else can you expect others to spread the good word about you if you do not give them a clear and concise message about who you are and how you are different?

Here is the #1 symptom that lets you know that you are suffering from a brand identity crisis: You are unable to define and instantly articulate your extraordinary promise of value to your ideal clients.

Saying you are honest, ethical, hard working and that you know your market well are not differentiators. They are the simply price of admission in the realm of market leadership.

If you want to remedy this condition it must become your number one priority to rediscover your authentic brand signal. That is why the first step in the personal and company branding process is one of self discovery. Even if you think you already know yourself well it is equally important to validate and confirm what you know implicitly but have been ignoring to some extent.

Only by clarifying your strengths, your values, your priorities, your passions, your distinct personality traits, your aesthetic tastes and your graphic preferences, can you distill all of this and express it explicitly to others through your personal or company brand.

There are two more symptoms of the brand identity crisis that we cover in the next part of this article series. Symptom #2 is what we call "market leader envy". Symptom #3 is the "copycat syndrome", where you think the only remedy for your brand identity crisis is imitating the market leader. All three symptoms are warning signals. They indicate that you are off your authentic brand signal and it is it time to dial back in.

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50 Top Luxury Real Estate Markets in the USA: Hawaii - Part 2

September 30, 2011

THE BIG ISLAND

On the West Coast you have the Beverly Hills “Golden Triangle” with Rodeo Drive running through it. Across the Pacific Ocean, on Hawaii’s largest and geologically youngest island, you can find the Kohala Coast, also known as the “Gold Coast”. You may not find extensive high-end shopping here, but you can find an active, luxurious lifestyle that is defined first and foremost by its sun-drenched climate, tempered by soothing tranquil trade winds. With temperatures that vary only slightly between 70-85 degrees the Gold Coast has only 8 inches of rain all year, on average.

The ideal climate here has inspired international developers and architects to design homes and planned resort communities that fully integrate indoor and outdoor living. Often, interior design and lush landscape design become an uninterrupted continuum. With its controlled growth and low density, it may be said that wide open space itself, is a major part of the luxury lifestyle on the Big Island’s Gold Coast.

Luxury Real Estate Marketing Tip: Is it Time to Retool, Re-position, Reformulate?

September 27, 2011

Now is the time to start thinking about your game plan for 2012. If you have discovered that you are losing momentum in your luxury real estate marketing practice, do not panic! Don't get derailed. Just re-invent yourself and change tracks.

Look around for new opportunities. You may discover that you need to make some fundamental changes in your normal operating procedures in order to take advantage of new opportunities, gain traction and build a new head of steam.

Here are three areas to consider that can help you get back on track:

Retool

One example of retooling is developing a better website that captures buyer leads more effectively

Re-position

You may need to learn additional skills or acquire additional specialized knowledge to work with clients that heretofore you have not worked with, such as investors, or second home buyers. Then, reposition yourself as a specialist in a new niche.

Reformulate-Re-focus

You may need to temporarily focus more on buyer vs. specializing in listing properties that languish on the market.

Once you have retooled, repositioned (yourself or your company) and reformulated the focus of your practice you then need to PROMOTE like crazy! Promotion begets new momentum of productivity.

Is it time for you to Retool, Re-position and re-formulate for 2012?

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Marketing Luxury Real Estate: Maintain Your Balance by Sticking with Your Winning Formula

September 26, 2011

It is interesting to consider that some luxury real estate marketing professionals are struggling to build a momentum of business while others are feeling overwhelmed trying to manage the abundance of business that they have attracted. Each feels out of control, but in different ways. Both feel like their business is running them instead of experiencing the surefootedness of running their business.

No matter how big you get, running a successful luxury real estate marketing practice is continuous balancing act. First you have to get in balance. Then you have to maintain it.

If you have not yet found your winning formula, experimentation is the route for you. Only self doubt can keep you immobilized and feeling out of control. Keep trying different approaches until you find out what works, consistently. Then, once you have discovered your winning formula stick with it. Eventually, you will build up a momentum of success and break through.

But, it is very tempting to deviate from what works. In fact, it may seem quite boring to continuously repeat the winning formula. In a Broadway play or musical they have a term call “freezing” when they lock in the winning formula, including all of the music, the lighting, the special effects, the final script, etc. Everything is mapped out and repeated over and over again for each performance. Only minor adjustments and improvements are considered at this point.

One set of circumstances that can catch you off-balance is when a “right hand person” leaves you for whatever reason. Think of a cast member in a play leaving. If a cast member leaves there is a completely documented “formula” that the new cast member must memorize in order to fill the role. It the same manner a new hire should be able to get up to speed quickly if there is a well documented formula for that person’s position.

Cast all doubts aside. Discover your winning formula. Then stick with it. This is the surest way to gain or regain your balance.

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Luxury Real Estate Marketing: Achieve Market Leadership Faster by Narrowing Your Focus - Part 3

September 20, 2011

People the world over are insatiably hungry for original ideas and new talent. That is why there is always room for a challenger to take on an entrenched market leader. If you can capture the imagination of your target market with a fresh approach in your luxury real estate marketing practice by giving them a compelling reason to shift their attention to you, they will also go out of their way to tell their friends about you. That is because there is social currency in being the first to share the latest and the greatest.

We often tell luxury real estate marketing professionals that the fastest way to achieve market leadership is to identify an uncontested market niche about which you are passionate, and then offer an extraordinary promise of value. If you are first in a new category, you start off as the market leader! If you have truly defined new territory, you simply render your competition irrelevant. What can be a faster way to top-of-mind status than to create your own new category?

Simon Cowell, of American Idol and X Factor fame, had an idea for a new pop music category, inspired by the success of Andrea Bocelli and the Three Tenors (Placido Domingo, José Carreras and Luciano Pavarotti). He embarked on a two year audition to form an international quartette of young, handsome talented singers who could sing both classical opera and pop. Cowell branded the group as Il Divo which is comprised of a renowned Spanish baritone, two classically trained tenors (one Swiss and the other American) and a French pop singer.

Il Divo went on to sell over 26 million albums. And, they were Barbra Streisand’s opening act for her highly successful 2006 tour.

If you haven’t already heard about 2 Cellos, treat yourself to a fresh new sound and a brand new category of music Two dueling cellists from Croatia, vying to win classical music competitions decided to join forces when they realized that they both shared a passion not only for playing classical music, but also for playing rock, pop and jazz music on the cello. They became an overnight success on You Tube with over 1, 000,000 hits. When Elton John saw them online, he invited them to join his world tour.

In both of these examples, it is obvious that these categories are very, very narrow niches. However, when you are first in a narrow niche you not only have the competitive advantage of naming the category you can also create a brand name for yourself that defines the niche itself. Two pop/rock star cellists(brand new category) = 2 Cellos. Four pop/rock star opera singers = Il Divo.

The chances of competition in these categories are quite slim. Any challenger to your newly identified niche will most likely come off as and be dismissed by your target market as a “me-too” copycat. This gives you the additional advantage of promoting the category itself instead of just you or your company.

Remember that people (and the news media, too) the world over are hungry for original, refreshing ideas and new talent. When they spread the word about a new category they promote you in the process. That is the other competitive advantage of being first to name a new category: You create news!

Tap your passion. Think different and develop a new category or a new approach to an existing category of marketing luxury real estate. Leverage social media to facilitate word-of-mouth advertising. It can be the fastest way to achieve the top-of-mind status of a true market leader.

View Part 1 & Part 2 of This Article Series

P.S. Thank you Aunt Shirley for turning us on to 2 Cellos and inspiring this post!

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50 Top Luxury Real Estate Markets in the USA: Hawaii - Part 1

September 19, 2011

Many people associate luxury real estate with the extravagant lifestyles of the rich and famous, with conspicuous consumption, creature comforts and sheer opulence. Although, this side of luxury can definitely be found on the Hawaiian Islands, there is a deeper, transcendent story of affluence to be discovered here. It can be found in the richness of cultural diversity that is honored and championed on the Islands combined with a true sense of community, sharing and giving that is expressed in the Aloha spirit.

The pure beauty of the Islands is a feast for the eyes. The fresh, locally grown organic fruits and vegetables excites the taste buds. The sweet smells of lush flowering trees provide aroma therapy and the year-round temperate climate calms the mind. Hawaii is a place to rest and heal. It is this balance of nature and community that makes owning a home in Hawaii one of life’s true luxuries.

Luxury Real Estate Marketing: The Danger of Ignoring Trends - Part 3

September 14, 2011

Photo by Falcon 1708

Perhaps the most important business skill that you can cultivate as a luxury real estate marketing professional is listening. This does not only mean giving your clients your full attention in order to understand their needs. It also means listening to your own intuition and paying attention to the trends in the marketplace. The danger of ignoring your client’s needs, your own intuition and market trends as a market leader can leave you vulnerable to sharply focused challengers.

One of the most dangerous liabilities that a market leader can have is the inability or unwillingness to quickly shift paradigms. A paradigm is a mindset, a pattern of thinking or a model for something especially one that forms the basis of a methodology or theory.

Shifting from the printed MLS books to the online IDX represented a complete paradigm shift in the real estate industry. So profound was this shift that the IDX could be called a “game changer”. It empowered consumers to search for properties on their own, eliminating the gatekeepers (agents) to this market information. Those brokerage firms and agents who understood the significance of this trend and jumped on the IDX bandwagon when it first came out had a definite competitive advantage over those who were stuck in the previous paradigm.

In Part 1 and Part 2 of this article series we covered how slow Microsoft was to shift paradigms with the advent of “cloud-based” software, smart phones, tablets and the apps that can be purchased for them. Research in Motion (RIM-Blackberry smart phones), was also slow to shift paradigms to touch screens with apps. They had an enormous competitive advantage as the preferred purveyor of smart phones for business.

Had RIM quickly come out with a touch screen version of their smartphone featuring the best business apps, plus consumer apps that could be “used on weekends”, i.e., double as a consumer device, they may have been able to stem off their very steep decline in market share. In 2009, RIM shipped 54% of the smart phones sold in North America. Now, it is shipping an estimated 13% in the second calendar quarter of 2011.

Being nimble, that is quick to respond to trends, is the ability and willingness to shift paradigms. One of the key trends in luxury real estate is downsizing. No longer is it particularly a status symbol to have enormous homes. Less can be more. Ask your clients who own large homes if they may be interested in finding a smaller one. Listen to their needs carefully and you may find hidden business right under your nose.

Listen to your intuition and pay close attention to trends. This will serve you well in marketing luxury real estate. Ignore trends at your own peril.

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Marketing Luxury Real Estate: Achieve Market Leadership Faster By Narrowing Your Niche - Part 2

September 13, 2011

In Part 1 of this article series we covered how narrowing your niche can speed up the process of achieving market leadership as a luxury real estate marketing professional. Selecting the right niche is essential. Reigning in the scope of your target market to a potentially lucrative niche is the key.

Recently, Google announced that it will discontinue several of its products as the Internet behemoth narrows its focus. Google’s mantra, under Chief Executive Larry Page, is “Focus Drives Results”.

Once you have clearly defined your focus your world becomes “black and white”: you are either on your brand signal or off. Sometimes you have to give up things to get what you ultimately want.

The way this translates into running a leading luxury real estate marketing practice often comes down to out-sourcing business that is not within your narrow range of focus. If you get a referral to list a home in a neighborhood that is beyond your sharply defined niche, you are better off referring it to a trusted colleague who specializes in that area. This frees up your time and resources so that you can “double down” on getting more listing within your niche. It can also generate passive income for you in the process.

The only time you should even consider expanding to an additional niche is when you have solidified your position as either the #1 or #2 player within your current niche. Then, when you select a new niche to conquer you are doing so from a strong power base. And, remember, when you expand, you are no longer the market leader in the new niche. You become the challenger, unless you have chosen an uncontested market niche.

Google originally challenged a company called Overture, the market leading search engine that Yahoo eventually acquired. Overture was actually the first to monetize search with pay-per-click advertising. Google’s strategy was to develop superior search algorithms before they commercialized their product. As soon as they added search advertising it was all over for Overture. Google dominates search with 64% market share. Yahoo has 18%.

Then, Google challenged Apple by acquiring Android the software that runs smart phones. They now own the lion’s share of the smart phone market in terms of the software (not the hardware). Apple is the #1 in hardware and no other smart phone manufacturer uses its proprietary software.

Today, with Google+ they are taking on Facebook in the social media space where they have become the #2 player, virtually overnight. It was not clear when Google+ was first launched (by invitation only), that they had the vision or the focus to become a market leader in this category. But, with this announcement that they are discarding some of their non-revenue producing “experiments”, it appears that they have the grit, to give Facebook a run of its money. In a blog post a senior Google executive wrote that the closure of more peripheral products means "we can devote more resources to high impact products—the ones that improve the lives of billions of people." Translation: Products that can generate billions more dollars for Google.

Narrow your focus. Stay focused. Do not expand into new markets or niches until you have solidified your powerbase in your current niche. Take on only those new market niches that you can be either #1 or #2. But, be sure that the niche you select has the potential to generate the dollars your seek.

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Marketing Luxury Real Estate: Achieve Market Leadership Faster By Narrowing Your Niche - Part 1

September 12, 2011

Time and again we remind luxury real estate marketing professionals that focus is the name of the game. Becoming an expert in a particular niche and becoming identified with that niche in the minds of your target market equals power.

However, focus is perhaps one of the most widely misunderstood concepts in marketing luxury real estate. It means concentrating your attention and your resources on a specific aspect of your marketplace.

The four categories of focus are as follows:

A specific geographic area
A price range
Property type (e.g., waterfront, ski property, equestrian, etc.)
Client type (golfers, first time home buyers, etc.)

The narrower you make your niche the faster you can achieve market leadership, providing you select the right niche for you. Focus creates momentum and acceleration. By concentrating not only do you accelerate your progress, you can actually discover more free time.

It is possible to focus on a combination of some of these categories if you need to narrow your niche. For example, you can select a particular price range within a particular neighborhood. A general rule of thumb is to keep your niche as narrow as possible, providing that it has the potential to generate the income that you are striving for. You get to decide the size of your niche.

We have noticed that many luxury real estate marketing professionals are often reluctant to narrow their niche and stay focused. Some believe they have to take whatever business comes their way because there is a scarcity of business and they need to survive. On the other end of the spectrum, others who are approaching market leadership, believe that they are missing out on an abundance of opportunities.

As tempting as is seems to take on business outside your niche as you approach market leadership, the key is to stay focused. After you have secured your market leadership position, that is the time to broaden your scope of business if that is your desire. At that time you are coming from strength when you expand.

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Luxury Real Estate Marketing: The Danger of Ignoring Trends - Part 2

September 9, 2011

In Part 1 of this article series, we began looking at how Microsoft has lost its stranglehold on the personal computer industry. The tables have turned. Once the undisputed market leader they are now playing catch up to Apple and Google in the post PC era. The Microsoft lesson here about the danger of ignoring trends should be learned by luxury real estate marketing professionals who seek to gain or sustain market leadership.

Although Microsoft’s Window’s operating system and core product, Office, still reside on the majority of PCs, over four million businesses are now using Google Business Apps for their word processing, spreadsheets, calendars, and email. Google Apps are business productivity programs that reside in the cloud, meaning that they are stored on Google’s servers and are accessible via your web browser on a subscription basis.

Microsoft answered Google with Office 365 a cloud version of Office offered on a subscription basis. But, Apple has an even better idea.

Apple has its own business apps in Pages (word processing), Numbers (spreadsheets) and Keynote (like Powerpoint). They are $20 each (no subscription), plus a free calendar, email and contacts app. More significantly, they are releasing iCloud in the fall of 2011 to sync all of your digital information and content between all of your Apple devices and computers.

Apple’s business model of manufacturing the their own hardware, profit sharing with developers on software apps, then synchronizing digital content in the cloud across all of their products, has defined the post PC era. Google again followed Apple’s lead by acquiring Motorola Mobile. In doing so they jumped into manufacturing of smart phones which will enable them to match Apple’s software/hardware integration.

Google has also manufactured their own laptop brand that has not succeeded yet. But, if you connect the dots here Google will soon be offering cloud synchronization between, not only between their own products, but also all Android devices. They most likely will be manufacturing their own line of tablets, too.

This kind of extrapolation is an exercise in following key trends. It is a practice that can serve you well in marketing luxury real estate, by getting you in the habit of staying ahead of the waves of change.

So much is at stake in the post PC era where your smart phone will become your wallet and credit cards, and local merchants will be offering you deals and discounts while you are mobile.

Where does that leave Microsoft? They are missing several key components to Apple’s winning formula of total product and software integration, synchronized digital content and superlative service. As a result, they most likely will be a distant #3 (to Apple and Google), if they succeed in getting it all together.

Google’s biggest challenge in relationship to Apple will be to match or best Apple’s customer service and retail expertise. Think about the potential tech support headaches that can result from purchasing a smart phone from one manufacture (not necessarily Google), a laptop from another and a tablet from yet another. Even though you may be able to sync every Android-based device with Google’s hypothetical answer to iCloud, the decision making process for choosing Apple over any combination of Android-based products will come down to service, be it by phone, in-store or web-based.

The Apple, Google, Microsoft story is one of the most exciting trends to watch in business today. Think of your own field. How much is at stake in owning the lion's share of your niche in the market? Observing what is obvious will give you clues to spotting trends outside and inside of luxury real estate marketing. It is one of the best exercises for your brain. That is, if you have the heart of a champion and the desire to gain or sustain market leadership as a luxury real estate marketing professional.

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Luxury Real Estate Marketing: The Danger of Ignoring Trends - Part 1

September 7, 2011

Trends are like an idea whose time has come. When you understand the direction in which they are heading you can anticipate, with reasonable accuracy, the outcome of their unfolding. It doesn’t necessarily take scientific research to accomplish this. It just takes observing the obvious and connecting the dots. Spotting the trends in marketing luxury real estate can give you a competitive edge if you get in front of and ride the wave. Ignoring trends can be dangerous if market leadership is your quest.

An example of a mega trend was the personal computer. One company, Microsoft dominated this wave with a distant challenger in Apple. However, the advent of the iPhone and the iPad disrupted what is now called the PC era and opened the door for Google to replace Microsoft as Apple’s primary competitor.

Google turned the tables on Microsoft’s Windows with the introduction of the Android operating system the software that runs programs for smart phones and tablets. An operating system that could be adapted for multiple computer types and devices would prove to be the beginning of the end of Microsoft’s stranglehold on the personal computer industry.

But, one more key factor that shifted the paradigm and ushered in the post PC era was the capacity to download computer programs via the internet and even remotely access and use software hosted on the software developer’s server, i.e., in the cloud. When Apple introduced the App Store, and opened up the opportunity to the software development community to not only create new programs that could be run on its iOS operating system but also participate in the profits derived from the sale of apps, the software business model changed for good.

Google was quick to jump on Apple’s bandwagon by creating the Android operating system and opening their own app store call Google Marketplace. But, Microsoft was slower to adapt to the new trend, falling way behind and into the shadows of Apple and Google.

Additionally, Microsoft’s core product, the business application suite, Office (Word, Excel, Powerpoint, etc. ), is under siege by both Apple and Google. In Part 2 of this article series we will explore the significance of this and extrapolate a trend that we believe will determine who will be the most dominant player in the post PC era.

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Luxury Real Estate Marketing: The Five Moments of Truth - Part 3

August 31, 2011

Zodiac Clock in Venice Italy

In Part 1 and Part 2 of this article series we stated that the first moment of truth in the client acquisition cycle occurs before your prospective client meets you. If you were not referred by a family member, a friend or a colleague, making an indelible first impression with your website is, therefore, a vital key to winning their business because they will be predisposed to hire you when they actually meet you. Your website is your silent salesperson as a luxury real estate marketing professional.

If your website appears at first glance to be the most authoritative site in your marketplace, if it has the best graphic interface, and is also the best organized and easiest to navigate, you have a very good shot at keeping them coming back to do their research. While they are in this “self-service” mode, before they meet you, they are still operating from a favorable, lasting first impression that occurred in the first moment of truth.

Offering original content on your website is one of the best ways to keep them coming back to your site. Property search and canned neighborhood content is ubiquitous. If you have a blog that is more than just informative, one that also offers your unique point of view and is entertaining, the chances that you will convert leads is much higher than your competition.

We were recently asked by an agent if he should subscribe to a service in India that slaps up generic blog content just to improve his Google ranking. It is only costs $50 per month.

What is the use of ranking high on Google if the consumers who lands on your site encounters inferior, generic information? In a click, off they can go in search of the real deal! They may have been impressed with your ranking. But they will be disappointed if you provide generic information that can be found anywhere. This could actually damage your reputation because it speaks volumes about how you are willing to cut-corners to get ahead of your competition. And, this is not the kind of indelible first impression you want to make.

The first moment of truth gets them to be predisposed to liking you and wanting to hire you. But, it is the second moment of truth, when they meet you, that determines if you will actually get their business. That is why ranking #1 on Google is not as important as achieving top-of-mind (#1) status in your marketplace. Google can arbitrarily change their algorithms and off you go from your 1^st position. But, continuously creating positive impressions in the minds of your target market will lead to making those impressions indelible.

Meeting expectations at the conclusion of your first transaction is the third moment of truth in the customer acquisition cycle. Getting their referrals is the fourth moment of truth and getting their repeat business is the fifth moment of truth. Consistently, winning each of the five moments of truth is the true test of a market leader. It is the test of successful branding.

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Luxury Real Estate Marketing: The Five Moments of Truth - Part 2

August 30, 2011

Big Ben

The Key to Winning the First Moment of Truth:

Make an Indelible First Impression

We all know that referrals are the best source of new business in your luxury real estate marketing practice. For someone to refer you, you must have made a strong positive impression, an indelible impression because you have achieved “top-of-mind” status in their mind. Indelible means impossible to remove from the mind or memory, and therefore remains, “forever”. Creating positive indelible impressions and sustaining top-of-mind status over time is what branding is all about. Therefore, the key to mastering the first moment of truth is making an indelible first impression.

When potential clients are referred your way they are already predisposed to liking you and trusting you because they like and trust the one who sent them to you. They have already experienced the first “moment of truth” in the cycle of client acquisition and they are hopeful that you can deliver on the promise of satisfying their most pressing needs. But, they are relying on the indelible impression you have made on the referring party.

For those who find you through search engines, through your advertising or your website, a blog post, or your yard sign in front of an impressive listing, the first moment of truth is your opportunity to make an indelible first impression on your potential NEW client. Think of your first moment of truth as an audition for a talent show. Do you stand out or are you forgettable? Are you instantly perceived as the expert who can meet your potential clients’ needs? You actually only have a nano second to make that first impression.

Entrepreneurs who pitch to venture capitalists are often given only 30 seconds to make an indelible first impression. This has become known as an “elevator pitch” because you only have a few seconds in an elevator with a captive audience. On the internet, however, you do not even have that much time because your competition is just a click away.

Being #1 on Google may be the beginning of the first moment of truth for some consumers. But, when they click through and discover a sub-par website you could easily lose out in this part of the customer acquisition cycle. If your website is not a WOW! you will most likely not get the call or email inquiry; you will not convert the lead. The first encounter with your website is often your first opportunity to create an indelible first impression.

Even if you do capture the lead and you succeed at winning the first moment of truth, before they meet you, you can still blow this opportunity in the second moment of truth. The question is, “can you convince your prospect that you can deliver on your promise of value made on our website, when you actually meet the prospective client on the phone or in person?” We will cover this further in Part 3 of this article series.

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Luxury Real Estate Marketing: The Five Moments of Truth - Part 1

August 29, 2011

As a luxury real estate marketing professional intent on gaining or sustaining market leadership, it is important to understand a marketing term that brand experts call “the moment of truth”. There are actually five moments of truth that your clients experience in relationship to doing business with you. If you do not engage and fully satisfy their needs at these crucial moments in the cycle of client acquisition your competition will. If you satisfy all five moments of truth you will have a client for life.

Here in Part 1 of this series we identify the five moments of truth.

Moment of Truth # 1: Befroe They Meet You

The first moment of truth occurs before your prospective client ever meets you. It is when they think they have found the answer to their most pressing question or need and you seem to be someone who has the answer.

It is experienced when they are first referred to you by someone they trust. Or, it can happen when they find you on a search engine, when they find a blog post you have written, when they encounter your website or your advertisements. Perhaps, it is when they discover your yard sign in front of a substantial listing. There is a palpable feeling of relief and hope that you might be the right one to help them.

Moment of Truth #2: When They First Meet You

The second moment of truth happens when they actually encounter you in person, by phone or email, etc.. This moment affirms or disaffirms what they were hoping to discover about you. They are either satisfied or dissatisfied with their initial encounter with you. They answer the question, "should they proceed to buy or list with your assistance?". If they answer, "yes", they are convinced that they have found the right agent, that you will produce their desired result.

Moment of Truth #3: When \You Deliver Your Services

The third moment of truth occurs when your initial transaction is complete and they are satisfied that you have delivered on your promise of value. Here you have met or exceeded their expectations, or you have disappointed them. If the latter is true, the cycle of customer acquisition end right here.

Moment of Truth #4: When They Refer You

The fourth moment of truth occurs when they refer a friend to you. This further affirms their satisfaction.

Moment of Truth #5: When You Get Their Repeat Business

The fifth moment of truth occurs when they are ready to buy or sell again and they call you instead of switching brands which means calling your competition.

True market leaders have mastered all five of these moment of truth. Those who have not are definitely vulnerable to being challenged. In Part 2 and 3 of this article series we will go into more details about each moment.

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