Friday, March 27, 2009

Building Confidence Builds Success

The Sullivan Group recently posted some positive news that helps build confidence in today's market. We can only hope that this type of news becomes contagious and spreads like wild fire. Here's a quick snapshot of their findings...

It has been months since the United States has had a string of good indicators like we have experienced in the past few days. To embrace the concept of positive thinking and make sure that our clients and friends take a moment to appreciate the warmth from these rays of hope, allow us to summarize them:


1) Existing Home Sales are up 5.1%: According to the National Association of Realtors ®, existing-home sales rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January.


2) New Home Sales are up 4.7%: Sales of new single-family houses in February were at a seasonally adjusted annual rate of 337,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4.7 percent above the revised January rate of 322,000.


3) Mortgage Rates are Down to 4.85%: Freddie Mac reported today that average rates on 30-year fixed-rate mortgages dropped to an all-time low (their survey began in 1971). As prices and interest rates have fallen, affordability continues to improve. Underwriting guidelines remain rigid, but we are seeing signs of improved availability for mortgages (Bank of America recently announced a program to increase jumbo loan activity).


4) Orders for Durable Goods are up 3.4%: Demand for machinery and other capital goods rose in February, driving orders for durable goods up 3.4%, the Commerce Department reported Wednesday. The monthly durable goods figures, although volatile, are key leading indicators for tracking economic growth.

How we define experiential marketing...

Experiential marketing is an interactive two-way marketing communications tool, which aims to bring brands to life and communicate complex brand messages through interactive sensory experiences that ultimately excite and engage the customer. The result - brand loyalty and brand confidence.

Thursday, March 26, 2009

How Marketing the Experience Can Pay You Back

Check out this article on how a well known brand is using experiential marketing to drives sales.

http://www.strategy-business.com/press/16635507/04312

Market Insights - The Value of "Place"

New Trends in Master Planned Communities
With the increased urbanization of the suburban marketplace, master planned communities are changing the way we live and what we have come to expect from developers and land planners. In the past few years, new trends have emerged in the planning and development of MPCs. In an article published in American Demographics Magazine, five key issues surfaced in analyzing the great communities of the new millennium.

Sense of Place – The “there” factor
Suburban sprawl has traditionally dominated the landscape of many communities outside large cities. However, not all of them offered an infrastructure of amenities that enable residents to engage. These are the places that people pass off as having no “there” factor or an element that says “this is where I want to be.”

Today’s developers are spending more time on creating a sense of place to increase quality of life. Much of this is accomplished through an integrated amenities and community programming plan, which combines recreation, open space, outdoor activities, and innovative neighborhood events. With more and more professionals working from home or in nearby suburban office complexes, residents are seeking self contained, livable communities that value more time with family and less time on the go.

New Urbanism – Drawing from the best of both
The concept of new urbanism is a growing trend in MPCs, particularly those centered close to large cities undergoing urban revitalization. It’s a model of development that combines the best features of urbanism and suburban development. Communities are now emphasizing the importance of accommodating the car but also walkability. More and more buyers are willing to sacrifice larger home sites for more, improved amenities as long as value is understood.

Town Centers – The gathering place
Building on the idea of creating self-contained communities, retail and mixed-use facilities have emerged in some large-scaled MPCs. As more and more people attempt to avoid the congestion that plagues suburban sprawl, the concept of town centers fulfills some of the everyday needs of residents without the inconvenience of using other transit means. Whether a town center or civic space having a central gathering spot conjures the feelings of comfort, familiarity, security and a sense of family. All of which are what the average buyer is looking for.

Market Segments – Addressing today’s household diversity
The result of offering more varied housing choices addresses the diversity of households currently found in MPC’s. Communities that once catered exclusively to young families with school-aged children must now cater to a broader spectrum of buyers, including residents who are “aging in place” – today’s boomers and retired populations. A more diverse community also helps to break the stereotype of master planned communities as homogeneous suburbia.

Green Building – The consciousness grows
Green building is more than a designation or building technicalities, for the public it represents a commitment to our surroundings, the future and that of our children. According to this article, over 78% of people feel they are contributing to the well being of their community by supporting and living in green environments. This is especially true of people aged 35 years or younger. A growing number of cities and counties are mandating new legislation to require stricter codes for environmental sensitivity.

Marketing Real Estate to Gen X & Y

Top 10 things we must know about Generation X:
Born 1965–1979 • Age in 2009: 30–44 yrs


1. Are distrustful of marketing.
2. Look for a balance between work and play.
3. Close to their parents. Live at home longer.
4. Are not drawn to traditional forms of advertising (i.e., hyping up products).
5. More family-oriented than their parents’ generation.
6. Tech-savvy and expect to do everything online.
7. Comprise more than half the market for the nation’s new construction of homes.
8. Prefer products based on their practicality.
9. Functionality is key in their home design choices.
10. Typically shop around for a number of months.

Top 10 things we must know about Generation Y:
Born 1980–1990 • Age in 2009: 19–29 yrs


1. More racially diverse (1 in 3 is not Caucasian.)
2. Line between work and home doesn’t really exist—spend their time in meaningful and useful ways, no matter where they are.
3. Preoccupied with their appearance.
4. Open to new ideas and new products.
5. Avid television viewers.
6. Even more tech-savvy than Gen X—don’t know a world without the internet.
7. Buying homes younger than Gen X, average buyer is 26.
8. Tend to prefer new homes.
9. More into ‘green’ design than previous generations.
10. Revisit homes more than any other group before making a decision.

Challenging Economies Need Innovative Solutions

Every place has a story to tell and a legacy to become. One that changes the way people think, act and feel about their everyday lives. Places, like products, endure lifecycles that grow, evolve and mature. They adapt to unpredictable consumer trends and market conditions. But ultimately, great places reflect a strong connection between people and experiences.

And what keeps a destination thriving is one that can sustain and power forward in times when there are more questions than answers. Sustainable places are ones that provide the smartest solutions for the way people live, work and play. There will always be a need for “home.”
It’s how we define it, build it, deliver it and experience it that creates that legacy.

In today’s economic roller coaster, we know that poses new challenges. Capital, lending and investors are scarce. Consumers have been influenced by a multitude of pressures, forcing them to rethink purchasing decisions, lifestyle changes, spending habits and overall attitudes toward “must have” and “would like to have.”

This holds very true in the purchase of real estate. There are many factors in play now. Where we used to manage extreme demand, we find ourselves managing “extreme choice.” This concept simply means that people have more options than ever. More innovative resources to tap into. More messages that influence public perception. More knowledge to form opinions from. And more time to make an informed decision.

In times like these, we need to ask the right questions:

What makes our product different, unique and sustainable?
How do we market the right message to the right audiences?
How do we identify opportunities to generate the highest qualified leads?
What sales strategies can we adopt that yield the highest conversion rates?
How do the built and social programming environments add real value?
How do we leverage the importance of brand as a value proposition?

PlaceMake Consulting (PMC) was established to help companies build a strategic platform to answer these questions and develop sustainable real estate offerings that create viable business and investment opportunities with long-term value.