Successful Luxury Fractional Marketing And Sales In The Current Economic Climate
June 21, 2009 by Perspective Magazine | Timeshare & Fractional ReviewsBy David M. Disick, Esq.
This Paper briefly summarizes the following techniques in marketing and sales that can maximize success:
1. State-of-the-art web based programs
2. Public relations/Strategic branding alliances
3. International marketing
4. Local broker programs
5. Some marketing and sales strategies
State-of-the-Art Web Based Programs
The Internet has evolved into a superior international marketing tool for maximizing results and minimizing costs. Webbased programs should be designed to reach out to the luxury and fractional community of brokers, agents, and prospective purchasers internationally; nationally; in the specific locales where the target audiences reside; and segmented by critical clusters of aficionados of particular venue types (such as metropolitan areas, mountains, beaches, golf and wine country).
Underlying these elements is the use of leading edge Internet and social network marketing methods to create an unprecedented international marketing reach. Leveraging Web 2.0 Internet marketing methods enables global reach, in contrast to the limited reach of traditional marketing methods and at a fraction of the cost of traditional marketing.
B2C Marketing Strategies.
The internet is a superb international marketing tool for directly reaching our target market, high net worth purchasers, in greater numbers, with greater precision, in a timely manner and with economies of scale. Listings can be syndicated globally on dozens of B2C websites. Distributions of listings over most Internet channels is virtually instantaneous. Regular reports can be generated so that the visits each property gets on each of these channels can be monitored. All listing brokers can display listings in multiple languages on their broker websites.
B2B Marketing Strategies.
One can maximize the use of the global referral network and international MLS, Proxio. Proxio, launched in April 2008, already has registered more than 1,700 agencies in 54 countries. Proxio will enable each local broker to form a global referral network with their peers in 50 states and 50+ countries. This will quickly put listings in the hands of thousands of potential referring agents who represent willing and able domestic and foreign buyers. All listings will be displayed in multiple languages on this platform.
Selecting brokerage firms to list properties based on their company’s global network of agents is another B2B strategy. Choosing different companies will maximize the potential for cooperation and synergy between companies that could result in greater sales volume for each company.
As a condition of listing properties, one should require that the brokerage firms invite their entire roster of international agents to attend webinars about the procedure for, and commission benefits of, selling luxury fractionals. The webinars will be promoted to all agents in each marketplace. The events will be recorded so that those who were unable to attend can be contacted again with a link to the recorded events. Listing agents can also use the webinars as a marketing tool to reach out to agents within their own firms. Further, the recorded webinar can be permanently featured on a number of luxury and fractional websites.
Web 2.0 Marketing Strategies.
Dozens of Web 2.0 marketing strategies executed simultaneously can compound the effectiveness of traditional local marketing by brokers, and the B2C and B2B strategies. Web 2.0 strategies include: Article distribution, optimized web PR, blogs, social networks, search engine optimization, and measurable Pay-Per-Click ad campaigns and web banner advertising.
Public Relations/Strategic Branding Alliances.
Public relations is an especially significant part of a luxury fractional marketing program given the national, and international, focus on fractional real estate ownership. Public relations initiatives can have three major elements. The first is to capitalize on the performance of luxury fractionals in the current market by showing how the particular project can take advantage of that performance. The second is a professionally planned “launch” reaching out nationally, internationally, and locally in appropriate venues via the web, print coverage, and local events on properties, inviting local brokers and opinion makers to attend.
The third is strategic alliances with synergistic luxury businesses, cultural institutions, and fine educational establishments. There are a number of luxury and fractional networking organizations that regularly meet with presentations of state-of-the-art marketing and sales methodology. Participating in these organizations can not only keep one abreast of effective techniques, but provide a platform for strategic branding alliances with luxury brands in various categories that can add to project credibility.
International Marketing
The interest abroad in fractional projects has grown exponentially in recent years, especially in Europe. There are a plethora of experienced foreign marketers with networks throughout the European continent and the Middle East. Affiliating with one of these networks can enhance marketing and sales success.
Local Broker Programs
While this Paper emphasizes utilization of the Web, one is well advised also to effectively utilize the local brokerage communities.
In addition to the dedicated brokers for one’s project, one should also institute programs to directly involve the entire local brokerage community such as:
• Focus group programs for top performing brokers
• Training sessions
• Periodic newsletters to the local broker community
• Invitation only open houses held on one’s property catering to selected area brokers and their clientele
Some Marketing and Sales Strategies
A digital format should be utilized for most marketing materials. Printed materials are expensive, bulky and difficult to adjust to the evolving needs of sales and marketing. Initial costs for digital are an investment that can be utilized in Webbased initiatives, print material and media publications, and over the course of the offering, can be adapted to the ongoing market input.
It is a proven fact that the average prospect requires three exposures to any given marketing directive to get their attention. With digital, one can create numerous ways to reach out to prospective purchasers in a costeffective manner, shorten response turnaround time, and create market updates such as digital client testimonials, portfolio updates, well known spokespeople, and additional lifestyle amenities. Print can be utilized in small discretionary pieces for on site sales handouts, mailings to selected prospective purchasers, and transmissions to magazines, newspapers, and other media.
A sophisticated strategy in the nature of an “invitation” and not a sales pitch should be utilized. “Selling” will not occur in the traditional sense but will be a subtle, deliberate hierarchy of information to be implemented through carefullyplanned contact points.
Every aspect of contact points should form an integrated whole reflecting the quality of one’s properties. From the tone of answering phones, to website experience and reservation structure, the style of all materials and demeanor of all representatives all build a holistic message. Each contact point should be meticulously tooled to avoid the sense of “selling” and boilerplate marketing which treat consumers interchangeably.
One can plan tailor made presentations to specific lifestyle profiles. All affluent prospects don’t react in the same way. For example, the presentation to a conservative private banker advising wealth clientele would be different than a presentation to an aggressive hedge fund manager.
Readers who wish to learn more may contact the author at +1 4356599738 or ddisick@msn.com. Mr. Disick is among the pioneers of the fractional vacation home industry with his development of Franz Klammer Lodge in Telluride, Colorado in 1994. He is President of David M. Disick & Associates.
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