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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 3

By Ron and Alexandra Seigel

Services for Real Estate Pros with Napa Consultants DRE00893924

June 01, 2011 05:51 PM

See Part 1 and Part 2 of this blog series, So You Want to Be a Market Leader

When you think of the word strategy what comes to mind? In the context of marketing luxury real estate, or any product or service, strategy ONLY applies to gaining or sustaining market leadership. It is just for incumbent market leaders who want to hold on to the #1 position and those who want to challenge the incumbent. More succinctly, it is only about being #1 or #2 in mindshare and in market share within any given marketplace or niche therein.

In the majority of cases the combined market share of #1 &#2 represents the lion’s share of the entire “pie”. These two contenders understand just how much is at stake. Very often, there is a vast crevasse between the market share of #1 and #2. For example, #1 search engine, Google, enjoys about 65% of the market. Yahoo, #2 owns 17% and #3 Microsoft Bing has about 11%.

Bing is trying valiantly to whittle down Google’s market share. Its most recent strategy has been to align with and own a piece of Facebook in order to make search more social (getting recommendations from friends when delivering search results). In a Wall Street Journal interview Google Inc. executive chairman, Eric Schmidt said that one of his biggest failures as CEO over the last decade was grappling with the rise of social identity services such as Facebook. Microsoft seized a potentially threatening strategic advantage with their social search strategy.

The marketing activity of an unmotivated #3 or any of those that are lower on the totem pole is actually not strategy. If you are not striving to be #1 or #2 you are merely engaged in tactics to fight over the crumbs, which may be plenty for some but not for those with the heart of a champion.

When it comes to marketing luxury real estate, keep in mind that you get to define the size of your marketplace if it is based on geography or just how narrow you want to slice your niche within a general category. For, example you can be the market leader in selling sky-in/ski-out properties in Vail Colorado, or in Deer Valley, Utah. The price point of these properties is typically very high and you do not need to sell many homes to earn sizable commissions.

We live in a time-pressed world where the majority of human minds can only remember up to 3 brands in any given category of product or service. Some people can only think of one brand in some categories. That is why being #1 or #2 is the only game in town for those of you who have embraced the unabashed pursuit of market leadership. For you, strategy is the name of the game and the jackpot is achieving top-of-mind status.

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Brian Doubleday

Brian Doubleday - IML RealEstate - Orange County, CA Broker - Ladera Ranch, CA

Ladera Ranch, Foothill Ranch, Lake Forest, Mission Viejo

Ron & Alexandra-This is a fantastic series on marketing. I've really enjoyed them, it's like being back in college in my marketing classes, & I sure could use the refresher course!

Jun 01, 2011 06:09 PM

Steve, Joel & Steve A. Chain

Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Ron & Alexandra,

Based on Google's meteoric growth I never thought I would hear that name and failure mentioned in the same sentence. Their vision for market share is remarkable. I thoroughly agree about 3 choices being a consumer's natural limit when it comes to making decisions.

Best,

Steve

Jun 02, 2011 02:16 AM

Cherise Selley

Selley Group Real Estate, LLC - Colorado Springs, CO

Colorado Springs Realtor

Ron & Alexandra,

I think being #2 is really okay when comparing large brokerages to small brokerages. The larger brands are trying to gobble up larger hunks of market share with re-dressed sales methods, as opposed to smaller brokerages who are connecting deeper with the client, as well as the broker's agent. With Google and Bing, this really doesn't work because they are fighting over the same market. Again, a great series of branding Ron & Alexandra... g

Jun 02, 2011 05:07 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Brian,

We are delighted you are enjoying this series. We love it, it going to be part of our book that we are putting together. A

Jun 02, 2011 05:30 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Steve,

Thanks for your comment, and we agree. When we ask people how many brands in a category, they know, their answers sometimes are less than 3, especially if they have a brand they are fiercely loyal to. A

Jun 02, 2011 05:32 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Gordon and Cherise,

Excellent observation, and I appreciate your insight. You just have stated your difference. All the best, A

Jun 02, 2011 05:33 AM

Judi Boad

ACCURATE REALTY GROUP - Seattle, WA

Hi Alexandra~

I enjoyed reading your comparisons and research.

Your last two paragraphs contain some great truths. I think focus on a market niche is the first step to a successful real estate practice, although, with a team concept, you can promote distinctive areas of expertise.

Since we live in a time-pressed world, we need to effectively convey our capabilities as market leaders by consistent portrayal as experts.

I'm on the list for your book!...

Jun 02, 2011 06:34 AM

Toni Weidman

Sailwinds Realty - Trinity, FL

20+ Years Selling Homes in New Port Richey, FL

Okay, Alexandra, that explains 7Up nicely.

This is a great series; I'm enjoying reading and learning from it.

Jun 02, 2011 09:43 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Judi,

Thank you for astute comment and clarification...if you are going to be a team of specialists in a certain area you definitely show up as niche players covering that marketplace. In a previous post, we talked about being the opposite citing one of our clients who has the personal touch in every thing she does, as opposed to the other company comprised of 40 plus agents who cover the broad spectrum of homes for everyone as well as luxury. They are very successful and that is their brand and strategic position. I will reserve a signed copy for you. A

Jun 02, 2011 09:56 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Toni,

What the #3 and below do is compete on features. The trouble with features is you may be out first with a feature (GPS) on a car, however, your competitor can do that also. Offer a free anything, and someone else can do it to. It becomes a battle of tactics! A strategy is a 360 degree perspective. A Thanks for the kind words, we have enjoyed writing this, and we are continuing on this vein next week. A

Jun 02, 2011 09:59 AM

Jim Frimmer

HomeSmart Realty West - San Diego, CA

Realtor & CDPE, Mission Valley specialist

All the maps are Bing maps in our MLS and property records searches.

Jun 02, 2011 03:20 PM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Jim,

Glad they made an inroad into your MLS. All the best, A

Jun 03, 2011 02:36 AM

Michele Miller ~ REALTOR®, LMC, HSE, CHS, SRES, CMRS

ERA Key Realty~Worcester County Realty Group - Worcester, MA

'Helping You Make the Best Move"

Ron and Alexandra,

VERY INTEREST BLOG ON MARKETING! I myself have not used BING but know many that have and love it.

Thanks again for another great post!

Jun 03, 2011 09:29 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Michele,

Thanks for your comment. We are all creatures of different habits. A

Jun 03, 2011 09:42 AM

Patricia Feager, MBA, CRS, GRI,MRP

DFW FINE PROPERTIES - Flower Mound, TX

Selling Homes Changing Lives

Alexandra and Ron,

This is a great series that you began and I am learning a lot from you. The marketing research that you started to share with the Real Estate community on ActiveRain illustrates to me that you have to stay assertive to be the best and not settle for the rest of the crumbs that are left behind. To do so, leaves you exhausted!

Your series on marketing strategies gives me hope, understanding, insight, and the desire to climb up that totem pole. Your writing skills are so professional. Clearly, the reason why I would refer people to you is because you are a leader in the industry and how you conduct your business is so intriguing and logical and this explains to me why mastering the skills has paid off for you. True masters of leadership want others to grow their business, and clearly, this is why you are the best at what you do.

Thanks again for initiating this excellent series that is so critical for business owners to know. You are the best!

Patricia

Jun 03, 2011 09:14 PM

Sondra Meyer:

EXP Realty, LLC - Corpus Christi, TX

See It. Experience It. Live It.

Once again, you've written another informative post. The feedback in the comments is also very interesting. I'd like to be on the list for your book also.

After reading this post, I realize that I need to shift my focus to the number one spot. With anything less it sounds like I(we) are selling ourselves short.

Jun 04, 2011 03:42 AM

Norma Toering Broker for Palos Verdes and Beach Cities

Charlemagne International Properties - Rancho Palos Verdes, CA

Palos Verdes Luxury Homes in L.A.

I loved this series and read it twice--good stuff!

P.S. I know I "owe" you some information--it was a jammed week--will get it off to you soon.

Jun 04, 2011 04:26 AM