Module 2 Determining Your Market Strategy 2 -1

Module 2 Determining Your Market Strategy 2 -1

Determining Marketing Strategies strat·e·gy (străt'ə-jē) n. , pl. -gies. A plan of action intended to accomplish a specific goal. 2 -2

Nine Deadly Truths That Could Kill Your Business from… 2 -3

Nine Deadly Truths That Could Kill Your Business 1. 2. 3. 4. 5. Most customers call only one agent. Predatory giants have declared war on your customer. Roller coaster sales cycles create feast or famine. Focusing on sellers is no longer enough. Profits will continue to be squeezed. From “Real Estate Rainmaker” by Dan Gooder Richard 2 -4

Nine Deadly Truths That Could Kill Your Business Advertising property drives prospects to the competition. 7. Prospects are taking a longer time to be ready. 8. Database and demographic aging demand customer replacement. 9. Geographic farming doesn’t work anymore. 6. From “Real Estate Rainmaker” by Dan Gooder Richard 2 -5

Let’s Think Creatively n No Right or Wrong Answers n Let the Juices Flow n Think “Out of the Box” 2 -6

Without lifting your pencil, link the dots with no more than 3 straight lines that cross through all nine dots. 2 -7

Laws of Marketing from… 2 -8

The Law of Leadership “It’s better to be first than better. ” n n Is there a service or product you can be the first in? Why did 65% of buyers hire the first agent they met? Are you “fishing upstream? ” From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -9

The Law of Category “If you can’t be first in a category, set up a new category. ” n Could you be the first Luxury Home, Condo, Equestrian, etc. Buyer Representative? From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -10

The Law of Mind “It’s better to be first in the mind than first in the marketplace. ” n Become “top of mind” through frequent, consistent marketing. From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -11

The Law of Perception “Marketing is not a battle of products; it’s a battle of perceptions. ” n Do buyers perceive that you care about their needs and provide the services they want most? Even if you’re “fishing upstream” are you using the right bait? From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -12

The Law of Focus “The most powerful concept in marketing is owning a word in the prospect’s mind. ” n Example: Allan Domb is “Condo King. ” From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -13

The Law of Focus Allan Domb, “Condo King” #1 Ranked Salesperson NAR 2000 What word do you own or want to own? 2 -14

The Law of Perspective “Marketing efforts take place over an extended period of time. ” n “Owning a word” or being “top of mind” does not happen overnight. From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -15

The Law of Failure “Failure is to be expected and accepted. ” n n Dump the stinkers & try again. Do you measure marketing results? How? From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -16

The Law of Resources “Without adequate funding an idea won’t get off the ground. ” n n Money, Money. Can your budget handle it? From “The 22 Immutable Laws of Marketing” by Al Ries & Jack Trout 2 -17

Think Creatively Decipher the hidden meaning: WRit. ING Put it in writing 2 -18

Think Creatively SOMEthing The start of something big 2 -19

Horizontal Marketing Making Contact 2 -20

Horizontal Marketing Definition: n Marketing to New / Un-referred prospects Purpose: n To make the phone ring TODAY. n To develop cold leads. n To Initiate relationships. 2 -21

Horizontal Marketing You Consumer 2 -22

Horizontal Marketing Examples of Horizontal Marketing: n n n Newspaper ads Home magazine ads Open houses Floor time Direct response ads Cold calls Other ideas? 2 -23

Top 5 Initial Contact Sources 1. Personal contact by salesperson (17%) Open house (17%) 3. Newspaper/home magazine ads 2. (17%) For sale sign/brochure box (17%) 5. Walk in (9%) 4. From NAR’s Home Buyers & Sellers Report 2 -24

Open House Strategies 2 -25

Open House Goals n Seller’s goal? n Listing agent’s goals? n Sitting agent’s goals? 2 -26

Open House Property Selection n n Select appropriate properties for your market Whose listing is it? n Yours What n Your company’s else? n n Another company’s Access & visibility Curb & interior appeal Best day & time? 2 -27

Advertising & Announcements n n Newspaper ad Pre-open house announcement signs Door hangers/post cards for immediate neighborhood Snail mail / E-mail to neighbors & interested parties Other ideas? 2 -28

Open House Set-Up n n n n Registration procedures / Questionnaire Property information Neighborhood information Who’s got City information another Competing property info idea? Personal / Company info Schools 2 -29

Open House Key Points & Questions n n n Focus on their needs and problems. Working with another agent? Differentiate yourself. Bringing up some of the “Hard Issues”will differentiate you and lead to more follow-up appointments. 2 -30

Open House Key Points & Questions n n n Motivations for looking. Why this home? Special needs? New to town? Approved for financing? Schools, distance to work, transportation, etc. If the prospect is being “exclusively represented, ” the Code of Ethics precludes you from asking these questions. 2 -30

Open House Follow-Up n Set counseling appointment n Where? 2 -32

Yard Signs n After closing place a “Buyer Side” sign: n n n “Acquired through…” “Purchased with the help of…” “Buyer Represented by…” “ABC Realty Represented the Buyer of this Home. Let us represent you too. ” Buyer’s permission required. Verify with your local ordinance-as most will only allow for one “for sale” sign. 2 -33

Direct Response Marketing Strategies Handpick the Customers You Want 2. Focus on the Customer’s Problems 3. Translate Your Solutions Into Offers 4. Turn Your Solution into a Premium 1. “From “Real Estate Rainmaker” by Dan Gooder Richard 2 -34

Direct Response Marketing Strategies Example: Home magazine ad 2 -35

Direct Response Marketing Strategies Make Your Offer Valuable State Your Offer Clearly 7. Limit Time or Supply 8. Everything Must Contain a Response Offer 9. Constantly Test Offers 5. 6. “From “Real Estate Rainmaker” by Dan Gooder Richard 2 -36

Direct Response Report Gooder Group, Fairfax, VA. 703 -698 -7750 Leads@Gooder. Group. com 2 -37

Direct Response Marketing Strategies Example: Homes magazine ad 2 -38

Let’s share ideas What are you doing to convert the Horizontal Buyer Prospect to the initial counseling session? 2 -39

Vertical Marketing 2 -40

Vertical Marketing n Definition: n n Marketing to build on existing relationships Purpose: n Repeat business & referrals Keep you “Top of Mind” n Keep clients raving about you n Nurture relationships for life (& beyond) n 2 -41

Vertical Marketing Your past client’s neighbor 2 -42

Vertical Marketing n Examples of vertical marketing: n n n Sphere of influence (SOI) Past clients Agent to agent referrals Professional referrals Company orphans Other ideas? 2 -43

Think Creatively Moving in the Right Circles Moving 2 -44

Spheres of Influence n Who’s in your Sphere? n n Past clients Family Friends Business & Social relationships Who else? 2 -45

Class Brainstorm n How are you… n n n Contacting them? Asking for business? Asking for referrals? Let’s share ideas 2 -46

Contact Christina Martinez, Ranked #10. “Without exception, I prospect every day from 10 a. m. til noon. From 10 to 11 a. m. I call past clients and ask for leads. From 11 ‘til noon I call the leads. ” Realtor Magazine, Sept. 2001 2 -47

Agent to Agent Referrals n Local: n n n Outside your geographic market Outside your specialization Buyers you can’t or don’t want to serve Former buyers who want to list Buyers posing a conflict of interest 2 -48

Agent to Agent Referrals n n n In state colleagues Out of country colleagues 2 -49

Agent to Agent Referrals n How? n n n n Personal contact How Ads else? Networking Teaching / speaking Attending professional designation classes Attending conventions & hosting booths Involvement in REALTOR® Association activities 2 -50

Agent to Agent Referrals Curtis Hall’s Agent to Agent Campaign March Series of unique post cards sent out March – June to 4, 000 out of state agents. Goal: to generate referrals for summer relocations. 2 -51

April May June 2 -52

Author Industry Articles 2 -53

Other Professional Referrals n Who? n n n Attorneys Accountants Insurance agents Bankers Lenders Builders Who else? 2 -54

Other Professional Referrals n How? n n Clubs Face to face Letters of introduction Speaking Other ideas? 2 -55

Company Orphans n Who are they? n Former clients of a licensee who has… n n Left the company Moved away Retired Changed brokers 2 -56

Company Orphans n How? n n n Use company files (with permission) Contact former agent (if possible) Pay referral fee (if still licensed) What if you know a colleague who is leaving the business? 2 -57

Transaction Phase Marketing Ask for referrals from buyers & sellers you are currently representing! 2 -58

Keeping and Being in Touch n Keep detailed records n n n Contact management software Clients & referral sources Update regularly Set up referral “Family Tree” $ell it when you retire 2 -59

Keeping and Being in Touch n n n Contact management software Databases Web sites Email marketing Toll-free phone number(s) 2 -60