As luxury real estate continues to become more popular around the United States the need for advanced marketing for this type of real estate has developed. Marketing for these types of communities is crucial because luxury communities take large amounts of planning and resources to develop and build. Increased competition has lead developers to employ the services of marketing companies in order to make the public aware of the new communities. Marketing firms develop brands, conduct market research, market the product, sell the product, and evaluate the results.
Brand development involves a developer’s idea of what brand they are offering along with the public’s perception of what the brand is. Brand development is crucial in the initial stage of marketing because customers identify companies and services through brand identification. Many companies around the United States are known for the brand they offer. A brand can be a logo, catch phrase, or product, however a customer remembers a company’s products or services is the customer’s brand identification. When customers identify a specific brand with a particular product or service then marketing strategy has been effective. Strong brand development leads to increasing market share. Real estate developers that are able to offer products that customers can identify achieve long term success as a result of the public’s awareness about their product. Effective brand identification attracts potential buyers to your product and increases the chance for a developer to be profitable.
Market research is a vital step in the early marketing process. Market research enables marketing companies to identify trends in specific markets and forecast potential sales and market share percentages. The forecasted figures allow marketing companies to estimate the success of a particular product or service in a market. Real estate developers require large amounts of resources to design and build real estate. Because of the large investment requirements developers require marketing companies to research the target area and determine the probable success rate for the specific project. This allows developers to take these numbers and present them to potential investors. Strenuous research allows the developer to show investors a detailed project plan that includes a construction timeline, sales milestones, and potential breakeven points.
Marketing the product involves a blitzkrieg technique that fills the market with information on a client’s product. Marketing companies use many different techniques including direct advertising, mass advertising, and technology based marketing. All of these marketing techniques are used to increase public awareness of a product and present a brand to customers. Brand identification and awareness are established in this step. Marketing companies base their estimated numbers on market trends and forecasted effectiveness of their marketing techniques.
When developers offer the product to customers the database collection begins. Developers and investors are able to see the effectiveness of marketing strategy through database analysis. Obviously effective marketing leads to sales and positive net cash flows. Marketing companies understand that developers design and build communities in order to profit from their success.
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