BrianFlookBlog

Well here we go!

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 05 Nov 2008 16:20:00 +0000

The elections are over! And depending on what you wanted you're either up or down. That's one way to look at it. In an email from John Burns titled, "Times they are a-changin"; John made the following observation. I thought it was worth sharing. Some good news, some less than good news.

"We analyzed the last 50 years and found that a Democratic president and Democratic Congress has occurred 14 of the last 50 years, resulting in the following:

Below-average stock market returns
Average inflation
Average interest rates
Below-average new home sales"

I'm sure there are many other things to expect with a largely democratically controlled country. Hopefully Mr. Obama will keep his words and become a bipartisan player. Remember, we aren't blue states or the red states. We're the United States.

Good luck.

For Heaven's Sake ... Please Vote!

bflook@power-marketing.com (Brian Flook, MIRM) — Tue, 04 Nov 2008 16:38:00 +0000

Yea, I know, you've heard it before: If you don't vote, you have no right to complain. Well it is true.

Please, go out today and vote for the candidates of your choice. It's a responsibility we all share and a privilege we are all blessed to have.

Best of luck to you as you vote your heart.

Brian

New Book Offers Marketing Advice to Builders

bflook@power-marketing.com (Brian Flook, MIRM) — Fri, 31 Oct 2008 18:36:00 +0000

Hagerstown, MD - How can new-home builders increase traffic and make their companies and communities stand out in a very competitive market?
That’s the primary question author Brian Flook answers in his book “Master What Matters – How To Create New Home Marketing That Guarantees Increased Traffic” released this month. Its 149 pages are filled with tips, solutions, stories, examples and creative ways of reaching potential homebuyers.
As founder and president of Power Marketing & Advertising, Inc., Flook draws from two decades of marketing experience and from years of fielding clients’ questions to write an easy-to-read classic that contains an Alice-down-the-rabbit-hole experience in each chapter.
“You never know what you’re going to find when you turn the page. It could be an explanation of how the brain makes buying decisions or something as practical as designing a workable marketing budget. Each chapter is filled with innovative, straightforward ideas to help new-home builders take the guesswork out of marketing their homes and communities. This book lets them finally relax and stop struggling over their marketing decisions,” said Myers Barnes, internationally known new-home sales consultant, educator and author.
“Master What Matters” addresses the three primary concerns of marketing new homes: marketplace, competition and audience. Every chapter is rounded out with an insightful summary and inspiring quote.
The book covers topics that are at the forefront of any new-home marketing plan, including co-op sales, selecting the most effective media, ad design, how to think like your homebuyer, maximizing Internet traffic and creating public relations opportunities. A pivitol chapter tells builders how to identify and maximize their unique selling propositions.
“Sometimes builders don’t know what they’re selling. Is it their homes, their company name, the community or its location? I’ve also had so many builders tell me that their marketing department is like a black hole. They throw money into it and it just seems to disappear. They don’t see any results. It was my goal to write a book that would help them identify their product and maximize their marketing. ‘Master What Matters’ gets to the heart of new-home sales and shows builders how to eliminate the fog and get a grasp on where their marketing dollars should go,” Flook explained.
The book has already received praise from peers and professionals in the industry.
“Finally, a book that will increase your traffic, your sales and your bottom line. His new book is a true masterpiece packed with cutting-edge marketing ideas and techniques focusing on targeting and motivating potential homebuyers. I personally recommend every builder and marketing executive in North America make ‘Master What Matters’ a must-read,” said Bonnie Alfriend, Alfriend Sales & Marketing Solutions and author of “Secrets of The Superstars: Excellence in Selling New Homes.”
Barbara Drees-Jones, Vice President of Marketing for The Drees Company, which was named America’s Best Builder for 2008, said, “Brian Flook has taken his years of experience and provided powerful insights into consumer buying, homebuilding and marketing. If you want to compete in the home-building arena, this book is a great place to start.”
Jerry Rouleau with J. Rouleau & Associates and BuilderRadio.com said that Flook’s ideas in “Master What Matters” and his approach to marketing “can be a real key in improving the performance and success of your business. No one understands how to market to the housing market better than Brian Flook.”
Flook founded Power Marketing & Advertising Inc. in Hagerstown, MD, in 1992 after working as a marketing director for a large regional builder and developer. Brian is also the President and founder of the Brian Flook Group, a real estate marketing and consulting company. He has been a popular speaker at the International Home Builder’s Show every year since 1996 and was a featured author in the National Association of Home Builder’s Best of Sales and Marketing Ideas and a guest editor for the Sales & Marketing Ideas magazine.
He earned the designation of Member, Institute of Residential Marketing (MIRM) in 1991 and has a Bachelor of Arts degree in leadership development administration and an associate’s degree in business.
“Master What Matters – How to Create New Home Marketing That Guarantees Increased Traffic” is Flook’s first book. It can be purchased online at http://www.brianflook.com for $22.95.

For more information, graphics or a personal interview or to arrange a book signing, contact Brian Flook at Power Marketing & Advertising Inc., 101 E. Franklin St., Hagerstown, MD, 21740; telephone 301-416-7861 or 800-932-0494.

Blog gone!

bflook@power-marketing.com (Brian Flook, MIRM) — Fri, 24 Oct 2008 22:02:00 +0000

I've noticed something interesting lately ... some builders are canceling their blogs. I'm not sure why. The blog is a very powerful tool and adds considerable search engine value.

I'm guessing staffing is the issue. Many builders are laying off staff, so blogging is the least of their concerns. What are you seeing. What is your blog producing for you.

The building business is tough. I wish you well in these tough times.

Bailout ... Why?

bflook@power-marketing.com (Brian Flook, MIRM) — Thu, 25 Sep 2008 19:34:00 +0000

This week I attended the NAHB's Fall Boards leadership meetings in San Diego. Not surprisingly, it's been an interesting several days. Yesterday, the association met in emergency session to discuss and give input to the NAHB's final position on the $700 billion financial bailout. It's a hard pill to swallow, whether you're a builder, homeowner or a small business owner.

I don't know a single person who wants to use our tax dollars to bail out big money Wall Street tycoons who got us into this mess. Yet, to not act quickly is potentially more painful to the American public than passing some elite bailout. How did we get here?

I don't know one builder client of mine who is getting a bailout. I don't know of one home owner facing foreclosure who is getting a bailout. I don't know one single small business owner - carpenter, carpet installer, drywaller, marketer, Realtor, etc. - who will get a bailout! Yet, these are the very people who - as always - will pick up the tab.

Someone needs to go to jail! This is wrong and although I raised my hand to support passing a bailout, whoever put the American people in this position should pay more than a slap on the wrist and a golden parachute!

If we learn one thing from this crisis it should be this: any business - financial, banking, retail, software, auto industry or whatever - that becomes so large that their demise puts the American public at risk is TOO BIG!!

Small business is the backbone of this country, always has been. Nearly half of nonfarm GDP is a result of small business across this great country. Yet, they have little voice in this economic meltdown. Why, you ask? Because they don't have the money to line the pockets of self-interested politicians in DC, that's why.

May we escape this mess with our balance sheets intact and our sanity in place.

Brian Flook

Builder Challenges

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 03 Sep 2008 18:29:00 +0000

There's no question about it, builders and everyone who relies on the building industry are struggling now. Few have marketing money to spend and few know how to spend the little they have left.

The recent Federal incentive program is basically a bust and few builders have seen any relief as a result. What marketing solutions are working for you? What have you done that has worked in 2007? How can you stay in business without making some sales?

Marketing new homes is an art and a science. Visit this link to learn about my new book: http://www.power-marketing.com/resources.html

Best of luck.

Brian

Better Days Ahead ... You Bet!

bflook@power-marketing.com (Brian Flook, MIRM) — Thu, 07 Aug 2008 12:53:00 +0000

Who knows when this housing bump will end? I hope is soon because many families are being adversely affected. The lending situation seems to be the most difficult fix at this time. Most professionals acknowledge that there is demand, but getting cash for loans - construction and perm - is super difficult.

Hang in there, this to shall pass. It's been a long hard road to here, but we've got to find an end soon. Perhaps after the elections are over and someone new is in the White House, the major media will stop shoving every possible negative news clip down the American people's throats.

Best of luck to all my builder friends and all the associated businesses that suffer when the housing market is in the tank: (painters, landscapers, appliance companies, dry wallers, carpet stores, flooring companies, construction materials, electricians, plumbers, movers, settlement companies, developers, pavers, concrete companies, marketing firms, Realtors, mortgage lenders, window companies, insulation companies, inspectors, interior merchandisers, trainers, carpenters, and the many other organizations that are adversely affected because all the aforementioned ones are affected.

Housing matters!

Brian Flook

Brand That Home

bflook@power-marketing.com (Brian Flook, MIRM) — Tue, 15 Jul 2008 15:00:00 +0000

Brian Flook, MIRM
Excerpts taken from Master What Matters©, 2008

“Is there such a thing as a branded builder?” The quick and nearly obvious answer is, of course there is. Are you sure? Often we think a brand is simply the visual representation or your company, or some vapor-like concept that forms out there in someone’s mind about your company. I’ve had countless builders say to me, ‘please help us strengthen our brand.’ Sounds reasonable, but unfortunately they don’t own a brand; they simply want to strengthen their reputation and name recognition.

For more than 4,000 years, branding has been an honored technique used to identify the owners of livestock. In a similar way, companies today use branding to stamp ownership of their products into the minds of consumers.

In his book “Go Beyond: In Every Single Way, Marketers Must Do More to Lock in Customer Loyalty,” Don Frischmann writes, “Branding 101 taught us all that a brand is more than a product name or a company logo and that loyalty can't be bought with an ad. Brand loyalty is a gift from customers to companies that consistently earn their trust and demonstrate credibility over time. It can also be taken away at any time.”

In the beginning, there were products. To distinguish between them, trademarks were born. Today, trademarks have evolved into brands. Many of them have become so powerful that they generically they represent entire product lines. Band-Aid®, for instance, has become the standard name for any small bandage. Jacuzzi®, Walkman® and Rollerblades® are all registered trademark product names that have moved into the generic arena. Xerox® owns the copying brand, but we call all photocopies a Xerox, not an HP or an IBM. When we get a cold, we go to the store for some Kleenex®, although we may not buy that particular brand. If we’re craving a cola, we probably ask for a Coke® although the restaurant only serves Pepsi® products. We live in a world of brands. They help consumers distinguish one product from another.

What possible brands exist in the new-home marketing environment? How about high-tech, building green, affordable homes, age-restricted housing, Generation-X homes, concrete homes, log cabins, luxury homes or low-maintenance homes? Can you think of a builder who has established brand loyalty in any of these categories? If you mention one of these categories to a friend, does one company immediately come to mind? Big isn’t a brand. Top 100 isn’t a brand.

While there are hundreds of builders in the nation who construct what could be construed as green homes, I don’t know of a single builder who has successfully captured the brand “green builder.” The green market is so wide open at the present time that the National Association of Homebuilders (NAHB) has created its own set of guidelines called the “National Green Building Standards™” to clarify exactly what it means to claim the title “green builder.” In spite of those standards, there is still considerable debate on the subject.

Many builders use high-tech products, but I know of no single builder in any market who owns the brand “high-tech builder.”

I believe there are several reasons for this. The most obvious is that home building is largely a local or regional endeavor, often limited to a state or county-wide area. Even though builders may be national – such as Lennar®, Pulte® and Centex® – most of their marketing is local. A handful of builders have tried national television marketing, but few have done it successfully. I can’t really think of any, but there may be one or two.

We work in a business that although it operates across the nation, it’s generally only marketed within the confines of a small jurisdiction like a county or city.

How often do you ever see a builder’s television commercial targeting a national audience? Can you even name five of the nation’s top ten builders? I bet you can’t. According to Builder Magazine, the top five builders based on closings in 2007 were D.R. Horton®, Lennar Corp.®, Centex Corp.®, Pulte Homes®, and KB Homes®.
A Company by Any Other Name …

Builders fall into the trap of believing that their names are a brand; but, at best, their names might trigger a brand memory. Brands are more memorable because the brain treats them differently than it does company names or taglines or jingles.

According to the book “The Mental World of Brands” by Giep Franzen and Margot Bouwman, “the brand exists as a neural network of memories” that are activated by a brand name. This network is sometimes referred to as a Gestalt, a term derived from the field of psychology referring to the concept that a configuration or pattern of elements (in this case different memories) is so unified as a whole that its properties cannot be derived from a simple summation of its parts.”

The brain is the most complex and mysterious organ in the human body. It is the center of learning, creativity, imagination, problem solving, planning and our sense of identity. It involuntarily remembers everything our senses experience and chemically stores these memories in a complex series of cells known as neurons. The average human brain is made up of 100 billion interconnected neurons. Any given memory, when triggered, activates a certain number of neurons that are associated with that memory. That group of neurons is referred to as a Gestalt. So, a brand is a Gestalt of sorts.

For example, when I say the words “environmentally-friendly builder,” if you are an environmentalist who advocates responsible new-home construction with minimal waste and reduced negative effect on the environment, you immediately have a rush of memories and thoughts that are involuntarily triggered by those words. You think of things like the last protest march you were in … an interview you saw on television with a builder who was trying to be environmentally friendly … or activities on Earth Day. The words trigger groups of memories because they elicit an emotional association. If there were a builder who owned the brand “environmental builder,” you would immediately think of him or her. That group of interconnected neurons would be your Gestalt of memories related to environmentally responsible building.

Now, if I say the words “concrete homebuilder,” fewer memories come to mind since the term is more neutral and doesn’t generate as much emotion. You possibly didn’t even know anyone built concrete homes, so how would you have many thoughts associated with the term?

Gestalts can be positive or negative. If I told you to think of a football quarterback, who would come to mind? You probably wouldn’t think of Atlanta Falcons’ quarterback Michael Vick. However, if I said the words “animal cruelty,” then Vick’s name might move to the forefront. That is the power of brand ownership. In many ways, Vick has become a poster child for the brand “animal cruelty” because of the dog-fighting charges and the 47 injured dogs removed from his property in 2007. It’s unfortunate, but when I hear of animal cruelty, Vick’s name automatically leaps to mind.

The most powerful use of true branding is to create a new market category. I know of no builders who actually own a category and, consequently, a brand. Coke owns the cola brand. FedEx® owns the overnight shipping brand. Godiva owns the exclusive gift chocolate brand. Does any builder have the right to claim the green brand … the technology brand, etc?

The difficulty with builder brands is that new-home construction is almost always a local endeavor. Although it is possible that a builder could successfully capture a brand on a local basis, I doubt you will ever see any builder who owns these brands on a national basis.

Next issue I will talk about the power of the Internet and how it is opening doors for branding that never even existed before.

Contact Brian Flook at 301-416-7861 or visit our website at www.power-marketing.com for more information. © Copyright 2008

Power Marketing Earns Awards

bflook@power-marketing.com (Brian Flook, MIRM) — Tue, 17 Jun 2008 22:00:00 +0000

Power Marketing & Advertising, Inc. was recently awarded four awards for work they did for their builder clients in 2007. The banquet, hosted by the Frederick County Builder Association, was held on June 12 at the Hollow Creek Country Club. There were approximately 100 builders and members present.

Power Marketing earned awards for four different projects: Best B&W advertisement for Dan Ryan Builders Manor Park community; Best Townhome sales center for the Drees Homes Linton Townhmes; Best Website for the Linton, and Best Community Brochure for Linton. "We're honored to receive these awards and to be recognized by our builder clients. Power Marketing is a full-service builder marketing company located in Hagerstown, MD. To learn more visit the website at www.power-marketing.com.

Where are we today?

bflook@power-marketing.com (Brian Flook, MIRM) — Thu, 12 Jun 2008 14:11:00 +0000

I've been in this business since 1987 and I've lived through quite a few bumps and bruises. That's housing ... that's many cyclical businesses.

This market is tough. I agree, but I also know that it will get better. As sales and prices hit the bottom, and I believe that for the most part they have; we will regain our footing and once again go about the business of selling new homes.

Listen to this excerpt from a recent NAHB editorial: "New home sales posted slim gains in April according to a monthly Census Bureau Report that showed an increase of 3.3% in the seasonally adjusted annual rate from March’s report. It should be noted that this reading is still the second worst since October 1991, March 2008 being the lowest, and is down 42% from last year. "The momentum is still downward, and that April number is still weak," commented NAHB chief economist David Seiders. Unfortunately, even a report that Seiders labeled a “partial reversal of [March’s] steep decline” does not afford much optimism in this particular housing market."

Sounds pretty gloomy, but rest assured, it will get better. Sooner or later the housing market will rebound and we'll sell homes again.

The key now is to hold on, continue to be proactive with your marketing, and don't go into hibernation like your computer. Keep your inventory low. Spend every marketing dollar carefully. Power Marketing, my builder marketing company can help with that. Use this time to retrain your sales teams ... they need it badly.

This is a great business. Hang in there and we'll all come out together on the other end just like in the past.

Best of Luck

Traffic is King

bflook@power-marketing.com (Brian Flook, MIRM) — Tue, 27 May 2008 15:10:00 +0000

The function of the marketing department is to attract qualified prospects and bring them to the sales table. The purpose of the sales department is to convert those prospects into buyers. Too often, though, the two functions – sales and marketing – are disconnected. In this excerpt from his seminar, Marketing What Matters Most, Brian Flook, President of Power Marketing, Inc., helps us to appreciate that the best marketing is that which has the input and backing of the sales department, and that sales come more quickly and easily when salespeople understand and support the core marketing message – the Unique Selling Proposition.

Listen to the audio, read the printed article, and then tell us what you think by leaving a comment below.

The Unique Selling Proposition, or USP, is the central a marketing message that clearly and concisely communicates your community or company with a distinctive, compelling selling point.

“The selling proposition is, without a doubt, the key. When you’re out there on the front line selling every day, you use selling propositions. You understand what the customer wants and you speak it to them in such a way that it becomes compelling . If it isn’t compelling, it doesn’t matter. If you’re not speaking to the audience what they want to hear, then it isn’t compelling – they don’t care. It’s irrelevant. You’ve got to understand who your audience is, and you’ve got to craft a message that speaks directly to what they want to hear.”

Flook goes on the list specific areas where marketing and sales need to be in alignment.

1. Your Brand is not your USP.

“The biggest mistake I often see builders [make] is to believe that their name will sell the product. It’s generally irrelevant to the consumer. They’re not interested,” says Flook. He recommends that builders avoid spending money on image advertising, which is expensive and largely ineffective. “Right now it’s about one thing, and that’s warm bodies – How do we deliver them to the door? And the way to do that is to focus your message on the compelling benefit that goes directly to the heart of your readers.”

“It’s location, location, location. After location comes price, then amenities.” The builders name and reputation, says Flook, are “the icing on the cake,” not the cake itself. “That doesn’t mean your name is irrelevant – it’s very relevant. But it isn’t the number one decision factor.”

2. Polish your online presentation.

“Eighty four percent of people start the new home search on the web. They come to the web, they shop, and then they go on site to buy.” Don’t expect a lot of online response, particularly through your ‘contact us’ button; that’s not how buyers want to communicate. “They shop online, they buy on site. For them to show up at your site, you have to prevent one thing: you have to prevent them from eliminating you,” says Flook. In this way, the Internet has replaced the newspaper. People shop online to find out who sells homes, where they are, and what they have, and immediately begin eliminating those that don’t seem to have what they are looking for. Then, they visit those that make their ‘short list.’ “Today, they eliminate your from their house, and they never show up [at your model.]” On the other hand, that means that prospects are qualifying themselves online, and so closing ratios on-site are going up.

3. Understand when, how and why to advertise.

“There are basically four types of ads,” say Brian Flook - lifestyle ads, price ads, product ads, and umbrella ads. See which you think will work best for you:

“Lifestyle ads focus on how your consumers live, what they want to do, how they see themselves… When you’re demonstrating a house, the best thing you can see happen is when they start placing themselves in that house. ‘This kitchen is perfect.’ or ‘This office is perfect for the way we live.’ That’s what a lifestyle ad does. It says to the consumer, ‘Can’t you see yourself here?’”

“Price ads focus on price. If you’re looking at first-time buyers, you talk monthly payments. Why? Because it’s what they know; it’s what they care about. They’ve been renting.” Flook says that price ads attempt to focus on value, “but that’s a moving target.” Value and price are two different things. Still, at every level, there will be those who buy on price as the major factor, or at least respond to a price ad as their first point of interest.

“Product ads talk about sticks and bricks and amenities; pieces, parts, locations, and features. It doesn’t matter which ‘sticks and bricks’ you focus on as long as they’re the ones the customer cares about.” What are your customers most interested in – lot size, quality of construction, or something else? Product ads should speak to the interests of your buyers.

Umbrella ads are sometimes used by builders to advertise multiple communities. According to Flook, they lack impact. “Umbrella ads are the weakest of all advertising, [because] you can’t target a benefit.” The builder might feel that advertising 15 communities in one ad tells prospects ‘we’re big.’ Consumers, on the other hand, are looking for benefits that are specific to them, something umbrella ads don’t deliver. Instead of supporting your value statement, “umbrella ads water down the unique selling proposition,” warns Flook.

Crafting and delivering a USP requires that we know our audience – who they are, where they work, what they drive, what they like, don’t like, and care about – what matters most to them. “If you don’t understand the audience, you’ll never begin to craft a message that matters to them. Take the time to understand who they are.”

When the sales department and the marketing department both understand their audience, and when the marketing process and the sales process come together to focus on the key points that matter most to buyers, then sales increase, profits grow and customers become raving fans.

It’s all about mastering what matters to your buyers.

What is a customer evangelist and why is that important to you as a builder?

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 07 May 2008 17:05:00 +0000

If you can create a customer that is so absolutely overjoyed with their buying experience to the point that they must spread the word, then you have created a customer evangelist. In recent years many marketing pros have seen the potential of using these “satisfied believers” as a marketing tool to grow their customer base.

The following are four reasons why the evangelistic customer approach is important to you.

1. It’s cheap. Creating a customer evangelist generally costs you nothing.
2. It’s effective. If you sit back and think about your last big-item purchase what was the biggest influence? It was probably a friend or word-of-mouth that led you to buy that item verses some flashy advertisement.
3. It’s fun. This is a group of people that love your product. Of course they’re not going to be hard to work with.
4. It’ll drive your competitors crazy. Once the buzz has started it will be harder for them to compete with what you’ve already started.

So how can you create a customer evangelist? From the book “Creating Customer Evangelists” by Ben McConnell and Jackie Huba, the following tenets or rules of thumb have been taken from the practices of some of the most forward-thinking companies. Try to employ some these following thoughts:

• Customer plus-delta: Continuously gather customer feedback. Listen to your customers. This is one of the most important elements to create a loyal fan base. If you don’t know what your customers are saying about you, then how can you capitalize on the good things they may be saying. My suggestion is to constantly get feedback from your customers and make sure you use your findings to either promote your company, or if you have to, change how your operate.

• Napsterize knowledge: Make it a point to share knowledge freely. Based on the Napster business model, companies have found that when they share their business processes with customers and partners there is an increase in the perceived and actual value of their product.

• Build the buzz: Expertly build word-of-mouth networks. Buzz helps people discover your business faster than traditional marketing techniques, and also makes selling your product easier because customers know more about your company when they visit.

• Create Community: Encourage communities of customers to meet and share. By creating social gatherings for your customers, both you and your customers will benefit. They benefit from congregating with like-minded people, and will get advise for buying other products and support for things they’ve already bought. The company benefits by gaining valuable customer feedback and by increasing the loyalty of a satisfied customer.

• Make bite-size chunks: Devise specialized, smaller offerings to get customers to bite. If possible offer samples of your work or product to give customers an idea of your quality workmanship.

One of the best examples of a company that has used the above model to create customer evangelists is Macintosh Computers. It was first launched in 1984, and soon thereafter hundreds of user groups sprang up around the world. From these initial small user groups a culture of sharing ideas and products arose amongst the customer base, and soon a small army of loyal “Mac lovers” arose. (I must admit, as a graphic designer, I’m of one of these loyal customers even though I didn’t use my first Mac until 1991). Macintosh admits that they didn’t do this on purpose. They didn’t follow the process so much as create it along the way.

Taking all this into account, how can you capitalize on some of these processes and create customer evangelists? To start, why not try getting rid of stock photography on your web and paying for really good shots of actual satisfied customers? Better yet, feature them on your webs main page or in your advertisements. There is no better advertising than happy satisfied customers. Also, encourage customer feedback, and provide clear and easy ways to gain this feedback by possibly adding an easy-to-find contact form on your web devoted to their thoughts. Finally, remember that the key to creating customer evangelists is creating community. Make sure you can bring your buyers together in some way so that they can share their experience with others that have enjoyed your product.

Jon King
Creative Director
Power Marketing & Advertising
Phone: 301.416.7861

Breaking through the brain’s firewall

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 16 Apr 2008 18:20:00 +0000

How many times have you said to your husband…“you didn’t hear a thing I just said, did you?” We must understand that hearing is a physical function and listening is a mental function. I hear many things as I write this article: cars driving down the street, music in the adjoining office, the tapping of a keyboard in the next office, someone outside talking as they walk by. But I am not listening to any of those things.

Your marketing message is often like those residual noises going on around you: you hear them, but you are not listening. If your marketing message doesn’t move a customer to action it is useless, not to mention it costs you money. What is sales and marketing if it isn’t the process of moving people to do something; specifically, to purchase something they may or may not need or even want. A compelling message will be relevant: “I care about what you are saying.” A compelling message will appeal to my fear of loss: “I better hurry or I’ll miss my chance.” A compelling message gets through all the clutter in my head and registers in my psyche.

Our brains are marvelously created and absolutely amazing. The Bible says we are, ‘fearfully and wonderfully made.’ When you consider the complexity of our minds, the truth of that statement becomes very evident.

The human mind is possibly the final frontier? How does it work? How does our memory affect what we buy? How does our memory work from a marketing perspective?

Let’s talk about the brain’s reticular activating system (RAS). The RAS is an important key to reaching inside a prospective homebuyer’s brain. It is a complex collection of neurons located at the base of the spinal cord that serve as a point-of-convergence for signals from the external world (specifically your five senses) and the internal world (your intuitions, emotions, etc.). So what’s it have to do with marketing and selling? Let’s explore three characteristics of the RAS. Our discussion will focus on number two: Negative Filtering.

1. Positive Focusing – Allows a mother to hear her whimpering baby while dad sleeps soundly next to her.
2. Negative Filtering – Allows the person who lives next to a railroad to unconsciously screen out the noise created by the train.
3. Individual Perceiving – Explains how five people who saw the same accident have five different stories.

According to scientists, the RAS tends to allow you to perceive three types of information on a regular basis: things you value, things that are unique, and things that threaten you. Remember, a unique selling proposition is a marketing message that clearly communicates your distinctive and compelling selling message. Over the years, the marketing industry has changed the moniker, but the idea remains the same. It was the “Differential Demonstration,” then it became the “Positioning Statement,” and now it’s often referred to as the “Unique Selling Proposition.” They basically mean one thing: why should a consumer purchase from you and not the builder down the street. What stands out about your product?

Creating a USP is about more than knowing your customers. It’s about your customers knowing you! Your USP must answer the question every consumer asks: Why should I buy from you? Remember, new home customers don’t come to buy from you they come to eliminate you. The process of elimination is easier for the consumer than the process of selection. Often it comes down to which builder gets eliminated last. And today, the process happens on the Internet.

Consider all the marketing noise – magazines ads, billboards, television and radio, newsprint, direct mail… you get it. That marketing noise is like steady drone of noises all around you that your RAS filters out. To be successful your marketing message must cut through the RAS and connect with the consumer’s mind. That means your marketing messages should attempt to conform to the ‘gateway’ processes of the RAS. It tends to regularly allow you to perceive three types of information, so attempt to make your message conform:

1. Things you value – This goes right back to the ‘what’s in it for me. Fact: we care about what we value, we are less concerned about what we don’t understand. When your selling proposition can strike a value nerve, the RAS opens the gateway and says to the brain: “hey, pay attention here, this matters.” What are the most common first words out of your mouth when encountered by a sales person? I would be willing to bet that they are: “I’m not interested or I’m just looking!” If the immediate message of a sales pitch doesn’t strike a value chord, you lose.

Let’s use an elementary school example. When a person has a child, that child becomes a high priority value. To a mother interested in keeping her children safe, a message that addresses those kinds of issues immediately meets her RAS criteria and the brain perceives the message. But a single guy with no interest in kids will most likely barely register that message. His RAS never opened the gateway because the value nerve wasn’t hit.

2. Things that are unique – Uniqueness seems to be one of those factors that arrest our attention. Is your message unique? Does it stand out from all the other builder messages?
Merriam-Webster gives the following definitions of the word unique:

1. Being the only one: SOLE
2. Being without a like or equal: UNEQUALED
3. UNUSUAL

The Apple iPhone is unique in quite a few ways. As a result, sales of the iPhone are projected to exceed 45 million by 2009. Apple has used the uniqueness of their designs for years to capture large market shares and launch trends that changed other industries as well. As you craft your message, always attempt to be as unique as possible. Find the angle that sets you apart from the others and appeals to your target audience.

3. Things that threaten you – Obviously you can’t say, “buy this house or I will send cousin Vinnie to break your knees.” But, you can use the tried and true method of writing a message that appeals to the consumer’s fear of loss: “$38,000 Grand Opening Incentive for first five buyers.” How about, “FREE Appliance Upgrade to all Homes Purchased this Weekend.” The fear of loss is a powerful motivator, but I believe it has a very short shelf life. It is my opinion that positive messages that focus on values have more lasting effect than negative ones.

Contact Power Marketing at 800-932-0494 or visit our website at www.power-marketing.com for more information.

© Copyright 2007

Is it spring in the housing market yet?

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 02 Apr 2008 16:45:00 +0000

So ... how is your housing market? We work with builders across a large area and our clients' sales success is varied. We have some clients in Maryland that are getting 40-70 traffic a week - in one community - and still selling no homes. We have others with traffic as low as 1-3 a week. Surprisingly, we also have clients that are literally breaking records. Sales in Pittsburg, PA are soaring for Heartland Homes. Sales in Lancaster and central PA seem to be strong too.

So how do you know when your market is past the bottom? How do you know when things are 'looking up' again? I believe there are several tell-tale signs to look for. Here they are:

1. Fewer sales signs lining the streets - This means that your market's inventory could be dropping. That's very good news in the current market.
2. Less advertised builder concessions - Pay attention to builder ads for incentives. If you see builders pulling back on heavy incentives, that could mean they are seeing activity pick up.
3. Rental rates increase - If rental rates are going up, that typically indicates a higher demand. A higher demand in the rental market can indicate a strengthening of the housing market as well.
4. The quantity of advertising in your local real estate publications. If builders are seeing results again from their ads, they will begin spending more money on marketing and advertising.
5. Job creation - Job creation is the number one factor in household formation. Whenever you see jobs being created, you'll likely see housing grow as well.

These aren't guarantees, but look around and talk around. Listen to your market for signs of spring. Just like springs delayed arrival... better days will come.

Web Power Comes of Age

bflook@power-marketing.com (Brian Flook, MIRM) — Tue, 19 Feb 2008 16:06:00 +0000

But, Please Don't Write Off Print Media

No one disputes that the internet is the premium and first choice new home shopping tool. A wide range of statistics prove that fact. It is indisputable that new home shoppers view their online experience as the number one shopping tool. But, please don't write print media out of your 2008 budgets. Remember when everyone said we would become a paperless society? How about the naysayers who predicted that video sales would hasten the demise of the theater industry? Sometimes predictions have nothing more than inertia behind them.

With all the uproar about how 80% of all buyers start their new home shopping experience on the Internet, it's possible that we can overreact and make some incorrect decisions about media budgets. Human nature is often to overcompensate. I believe that is happening right now.

I recently returned from the International Builder's Show in Orlando, Florida. On two occasions I heard someone basically say, "print media is dead, put your money in the Internet." They said, "statistics bear out that media investments are falling and Internet investments are increasing." In a cursory look that appears true. According to the February 11, 2008 issue of Advertising Age (page 8), overall ad spending across the country for newspapers (the traditionally accepted best media for new home traffic generation) dropped 9.7% from 10/06 to 10/07. According to the same article, internet spending rose by 13.7%. Seems to make sense then that housing advertising would follow suit. I dare to disagree slightly. In our industry, Internet spending is up largely because many builders are still only getting onboard. Once you've developed a great site and optimized it, beyond regular maintenance there's little to do except update and improve.

First, it is dangerous to compare traditional print media to the Internet from an advertising perspective. I believe we need to treat the Internet more like we treat directional bandit signs than like print media. There are several forms of media: passive, intrusive and selective.

Simply stated, passive media is advertising and marketing that you encounter without attempting, planning, or choosing to do so. It just shows up by accident. An ad in a magazine is passive advertising; a billboard and a bumper sticker are passive advertising. When your prospective customers encounter your small directional sign alongside the road, that is an example of passive media. It just sits there and hopes someone sees it. Unlike passive media, in that you generally see it with no intent; intrusive media is just that: INTRUSIVE. You don’t ask for it either, but you get it. Intrusive media invades your space and forces you to chose: do I listen or not. Do I look or not? A television is intrusive advertising. A radio spot is intrusive advertising. A pop-up Internet ad is intrusive advertising. A well placed billboard can even be intrusive advertising. While passive media is marketing and advertising that you encounter without plan or intention and intrusive media invades your space without your specific permission; selective media is becoming more important than the other two very quickly.

Since the beginning, the field of marketing and advertising was the process of delivering a message to an audience. From putting a searing trademark on your cattle to ‘brand’ them as your own to the judge’s cups on American Idol that bear the obvious and carefully positioned Coke logo; the objective is sending a message to an audience. That premise has begun to change radically and it is having a significant affect on the way you should market your homes. Selective media is media that brings the audience to your message and not the message to your audience. It has become the consumer’s choice! Hence the meteoric rise of DVRs (digital video recorders) and TiVo. I believe that the day is coming when advertising we be a choice of the consumer. They have a need, they search out (Google) information, and they chose advertising that informs them. Sounds a lot like the annoying infomercials we’re so familiar with today.

Back to my point: at the present time, I don't consider the Internet as an actionable media tool. We know it works consistently, just like directional bandit signs. Therefore, we will continue using it with only upgrades and modifications. Unlike direct mail or the local real estate publication; if we cannot attribute some performance success to the expense, we eliminate it. We know that the Internet is producing leads! But does it do it on it's own. I believe the right answer is "yes," but not always.

We talk of driving people to our website. Where are they being driven from? This is where I believe print media and intrusive media can work to our advantage. Depending on your audience, they may only use the web or they may begin their search in more traditional sources and then move to the web. Remember, we drive people to the website. We drive them from hats, truck decals, ads, banners, posters, direct mail and more.

Don't hastily eliminate print media from your budgets. It's still very important and plays a very critical role in driving traffic to your website. Make sure your website is top-notch. Market your web address (URL) at every possible chance. The web has become the king of new home shopping, but there are many traditional media that still play a huge supporting role in the success of the website.

Best of luck selling new homes in 2008. It will be as good a year as you make it.

There is no such thing as a national housing market.

bflook@power-marketing.com (Brian Flook, MIRM) — Thu, 10 Jan 2008 13:58:00 +0000

Unfortunately, it seems everyone has their panties all in a bunch about the apparent crash of the housing market. The problem is that you can’t take of all the local housing market’s conditions and boil them together into some hysterical stew. It’s like suggesting divorces throughout the country mean the end of marriage or the moral failure of 10 big religious leaders means the crash of religion. The building industry is not a national industry. Yes, when the housing industry is adversely affected in multiple locations simultaneously, the negative affect is felt nationally; but there is no such thing as a national housing industry.

The pundits need to be careful that their pontification from on high doesn’t worsen a situation nationally that is largely managed and determined on a county-by-county basis. Jonathan Miller is a Director of Research for a New York based real estate research company and says this, “There is no ‘national’ housing market. Different markets have different risk factors and fundamentals that drive prices” Jonathan is correct. While the current market in Montgomery County Maryland is in the tank, nearby Pittsburg is doing quite well. Where the negative results of fast price escalation have left some housing markets reeling, others, that never experienced the escalation, hardly feel the situation. Remember, it’s only a recession if you or someone you know looses their job.

Richard Gaylord, President of the NAR (National Association of Realtors) recently pointed out this fact: “Keep in mind that home prices are up in 93 out of 150 metro areas, and there is a lot of confusion in the market from reports about national data…” He went on to say, “Broadly speaking, home prices in most areas are up modestly or fairly stable.”

The housing market in your local area is mostly affected by factors within your local area: housing inventory (new and used), job growth, land availability and prices, and labor. Any of those factors can affect your market from outside your area. For instance, sales in a metropolitan bedroom community can be adversely affected by the slow resale pace of the metropolitan area. But, largely, the real estate market you deal with can stand on its own.

I’m not suggesting the national picture is not relevant, it is. Gas prices are at all time highs. Consumer confidence is still performing well below national standards and declining household equity leaves families feeling poorer. Nationally, resale housing inventory is still hovering at around 10.3 months of supply and new home sales have dropped to their lowest since April of 1995.

All that said, it is a great time to buy a new home. Interest rates are still very low and builders and sellers are in the mood to negotiate more than ever. Don’t let the national news scare you out of the market. It’s a great time to buy.

Brian Flook

Advertise that!

bflook@power-marketing.com (Brian Flook, MIRM) — Fri, 28 Dec 2007 01:56:00 +0000

With everyone staring into 2008 like it's a lion about to eat us for lunch, it seems to me that the lion could be a lamb. With this weakened housing market nearly two years old, the potential for backlog is growing every day.

Just because CNN and MSNBC prefer twisting every piece of information available into news... or so they call it. Let's not follow suit.

Let's ditch the desperation-based marketing attempts and focus on the possibility that there are actually thousands of families, singles and others waiting on the sidelines for the right time to buy a new home. They actually want a new house. Go figure.

Have a happy new year. I hope your team wins the super bowl. And most of all, may 2008 be a fantastic year for selling new homes.

Brian

Happy Holidays

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 05 Dec 2007 23:20:00 +0000

Builders... take the time to offer season's greetings to your homeowners. It's a simple and logical way to show you care. Send out holiday cards or create a Happy Holiday email. Use the season and the spare time your staff has on its hands to offer your customers and subcontractors thanks.

Nothing is as appreciated as an unexpected thank you. No sales or new home marketing strings attached; send out greetings to everyone who made 2007 a success.

Happy Holidays,

Brian Flook

An offer???

bflook@power-marketing.com (Brian Flook, MIRM) — Fri, 30 Nov 2007 14:11:00 +0000

Seems I hear more builders saying the words, "they're making an offer?" as though it's a bad thing. I realize the market is tough. I understand that it's a buyer's game. I know your margins aren't what you might like them to be.

But since when is an offer a terrible thing? Hey guys, an offer is still an offer. I know of builders who refuse to even counter low offers. That's either stupid or arrogant. Doesn't mean you have to give everything away. But it also doesn't mean you blow off the homebuyer... he will only buy someone else's house.

Builder's are going to their subs and asking for concessions. That seems fair to me. But don't forget them when things go great guns again. Their concessions allowed you to stay in business, how about a little love when the cash is running fast again.

We will get through this market. But let's sell everything we can, keep our staff on board and wait for sunnier days.

It is still a good time to buy a new home.

Brian Flook

Builder Bulletin

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 28 Nov 2007 13:37:00 +0000

In case you may be interested, I publish a quarterly Builder Bulletin e-newsletter. Hundreds of builders are finding helpful information.

Visit to sign up for your quarterly newsletter. The sign up link is at the bottom of the page.

Have a great holiday,

Brian Flook,

Tis the season

bflook@power-marketing.com (Brian Flook, MIRM) — Tue, 27 Nov 2007 16:55:00 +0000

Here we are again. It's the winter holiday season and the market is still floundering. Every year at this time builders ask us, 'what should we do with our advertising now?' My answer is nearly always the same: take a break.

The housing industry is very repetitive. Strong sales from February 1 through May 30. Weaker sales pace from June-August. Sales pick up in September and remain relatively strong through Dec. 1. From early Dec. through Super Bowl, your primary focus as a builder should be preparation for the upcoming spring selling season. It is coming and it will come again in 2008.

If you aren't seeing traffic from your ads at this time, pull them and hold your money until the market comes alive again. It is very difficult to get your advertising to pull too much traffic from Dec. 10 through January 10. Relax, it is always that way.

Now, there may be one silver lining in today's market. The market is full of bargain hunters. Builders across the country have flown the white flag of surrender and buyers see red - that would be the builder's blood. But, they are out there and they are looking for bargains in the form of speculative homes that are sitting idle. The holidays would be a great time to push some of your inventory to this group.

Unless you have tons of discretionary marketing money, pass on the popular "Christmas greeting" ads. Save your money.

Enjoy the holidays. Work hard preparing for 2008 and get ready to sell homes. Remember, there is only one way out of this market: sales and marketing.

Have a wonderful Holiday Season,

Brian Flook, MIRM

Builder's Challenges of 2008

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 07 Nov 2007 17:39:00 +0000

In preparation for our 2008 marketing efforts, my builder marketing team met today and held a brainstorm/strategy session. We asked the question to ourselves and our clients: What do you see as the single biggest challenge facing builders in 2008. I wasn't surprised how aligned our answers were with those our builder clients gave us.

The obvious answer may seem to be sales, but as I expected, no one said sales. Of the builder responses the top answers were:

1. Helping buyers see that they can and should purchase a new home. The market from the consumer's perspective is as good as it possibly get.
2. Qualified traffic
3. Inventory issues

Several builders stated that they view perception as the biggest challenge. They realize the news is relentlessly negative and buyers are looking for the best opportunity. Taylor Oliver of Oliver Homes said, "Everyone is waiting for the bottom before they buy. The problem is, that no one knows where the bottom is until it is behind us." He's right. Buyers are in a hold pattern waiting for the bottom. No one wants to buy a home today that will be worth $10,000 less in six months. Bob Marsh, President for Admar Homes told me he is seeing more and more "wait-and-see-buyers."

Other builders said mortgage challenges were the number one issue and still others said house to sell contingencies are proving particularly problematic. Whatever you believe is the number one obstacle to your success in 2008; one thing is for sure: without people coming through the door you will not sell houses.

From a builder marketing perspective, our team believes the biggest challenge facing our clients in the next 18 months will be delivering qualified traffic to their sales team. What does it take to convince buyers today that they should buy now. How do we convince them the opportunities are better than ever.

I would love your thoughts on the 2008 obstacles you face.

Don't back down. There are buyers out there and the builders who focus their marketing dollars the best will win the sales game. Good luck!

Brian Flook, MIRM

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 17 Oct 2007 20:16:00 +0000

Where is this housing market really going?

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 17 Oct 2007 20:10:00 +0000

I'm looking for your professional insights: where is the national housing market heading and when will it recover? I'm sure no one really knows, but I'd really love to hear your thoughts on this thing.

Some say sooner than later, others the opposite. As a new home marketing professional, some of our clients are really feeling the crunch, others seem to be going along fine. I see the location and the previous year's price inflation as a major key.

What do you see?

Thanks,

Brian Flook, MIRM

TechStuff

bflook@power-marketing.com (Brian Flook, MIRM) — Wed, 17 Oct 2007 19:42:00 +0000

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