In a competitive market, most buyers and sellers are looking for ways to simplify their decision making process. A real estate investor who has a strong presence inside the mind of a potential customer will most often be the benefactor of this technique. In the marketing classic Positioning, Al Ries and Jack Trout suggested that success is not dictated by the number of advertising outlets or the money spent on marketing, but rather by the position that the advertiser holds inside the mind of the consumer. And despite the temptation to market to everybody, the strength of a position lies in its specificity, not its breadth. The consumer needs to immediately connect your company with the product or service.
Look at the world’s top brands, and you’ll probably strongly associate them with one specific product: Coca-Cola – dark fizzy beverages, Microsoft – operating systems, IBM – business infrastructure, Intel – processing chips. We feel comfortable with these brands in part because they seem so specialized. That’s why when Coca Cola ventured into a citrus beverage, they named it Sprite instead of “Coca Cola Citrus” or “Clear Coke”. Would you be inclined to buy “Coca Cola fruit juice”? That conjures up images of bubbly, artificial fruit juice, which is why they sell Minute Maid instead. Same thing with their Powerade energy drinks and Dasani Water.
Can you name a national deli chain? Probably not. However, you can probably name at least two or three chains that sell a more specific product: the submarine sandwich. By specifying their product, Subway became one of the world’s biggest restaurant chains, despite their somewhat limited product line. Years later, Quizno’s cut into their market share by attaching their name with toasted sub sandwiches. Procter & Gamble has built an empire on the principles of positioning and creating separate brands.
How does this apply to real estate investment? You want to be the first person who comes to mind when a homeowner (or other customer, depending on how you brand yourself) is in a particular situation. You could position your company around a single deal type: rehabs, for example. Or, you could build your brand around a unifying principle that guides the company: friendly service, quick closings, going above and beyond the call of duty, creative financing, environmental awareness, etc.
Some tips for developing your brand:
1) Be specific. I’d say the two golden rules of positioning are: eliminate confusion, and link your brand as closely as possible with the product. Being specific allows you to avoid that nebulous “what do they do again?” area that creates confusion and, ultimately, forgetting. It also creates a strong link between you and your intended message.
2) Be distinctive. Let your company stand alone in the mind of the consumer.
3) Make it obvious. People are bombarded with thousands of messages a day. Don’t make them think any harder than they have to. Draw upon some symbolism or connection already embedded in the collective unconscious, and then make it yours.
4) Align your brand and marketing materials. Create a cohesive image: use your logo, word choice, company name, colors, and advertising outlets to reinforce your core brand.
5) Let it guide your decisions. This seems relatively obvious, but it’s an oft-broken rule. If you position yourself as the “customer service” real estate investment company, be willing to invest extra money or time to uphold this image. If you are a”simple, quick closing” company, stay away from complicated escrow instructions or unusual contract provisions that may cause delays along the way. Think about it: if you’re making a kite, it’s true that strength, ornamentation, and distinct features are important, but the most important thing is that the kite flies. Think of your company the same way and don’t stray from your purpose.
Further Reading: Positioning by Al Ries & Jack Trout, The 22 Immutable Laws of Branding by Al Ries & Laura Ries, Wikipedia’s “Brand Management” page
