What is the purpose of creating a brand? Maybe a better question is what would happen in our modern economy if brands didn't exist? That is, what if all products and services simply were called by their generic name? Kleenex was Tissue. Pepsi was Cola Drink. Ritz-Carlton was Hotel. Big Mac was Hamburger Sandwich. In all of these cases, from a consumer's perspective there would be no differentiation from one product to another in their respective product categories. Even if one product offering was far superior to its competitors, there would be no way for the consumers to identify which product it was simply by looking at the package. And thus, the function of branding is to help with the point-of-purchase decision making process of the consumer.
The branding of a product or service is created by utilizing marketing, advertising and public relations to convey a higher value of one product over another to the product's target market. The more skilled and diligent these disciplines are consistently applied over time, the better the brand awareness for the product or service becomes. So, as the producer of a product or provider of a service, the purpose of branding is to create a perceived value in the minds of consumers that will make them think of and purchase your product or service instead of that of a competitor. When product or service offerings are plentiful and perceived to be nearly identical by consumers, then using branding to win this battle in the minds of consumers becomes critical.
To illustrate how this works, here are some examples:
Q. What is Domino's Pizza's BRAND?
A. If you said the red, white & blue Domino's pizza box, you'd be wrong. That is part of their MARKETING IMAGE, but not the BRAND. For that you need to look at the value to the consumer. What is their need that Domino's fulfills? The answer is that your family is hungry and you don't have time to cook. So, Domino's promises to feed them in under 30-minutes. THAT is their BRAND! Remember "Delivered to your door in under 30-minutes, or it's FREE"?
Here's a another:
Q. What is LensCrafter's Brand?
A. If you said "Eye glasses in about an hour", you'd be correct! See, you're catching on.
How about:
Q: What is McDonald's Brand?
A. You may have thought of a few negative opinions of their menu offerings, but in the end you'll agree that their brand is a fast and consistent meal that meets your expectations anywhere you go in the world. Yes, that's a little tougher, but they have made more people into millionaires than any other company based on the brand of offering consistency.
Now, let's apply all of this to real estate:
Q: What is Realty Executives' Brand?
A. Hmmmmmm? You know, I'm not really sure, either. I don't mean to be coy, nor disrespect the fine agents at Realty Executives, but I've been in this business for 15 years and I can honestly say that I don't have a clue what their value proposition to the public is.
Q. Coldwell Banker's? Century 21's? Keller Williams'? Prudential's?
A. Again, I don't really know. If a buyer wants to buy a home, or a seller wants to sell a home, what is it about any of these brands that connects with the consumer to make one stand out over another?
How about this one:
Q. What is RE/MAX's brand?
A. Ah, you say, THE BALLOON! One of the most recognized logos in the world. Great answer, but wrong again. The famous balloon logo is also a MARKETING IMAGE, not a BRAND.
Well, what about "Above the Crowd", or "Outstanding Agents, Outstanding Results" you say? Aren't they all part of the brand? The answer is yes and no. RE/MAX has a lot of great agents, but so do the other brands that I mentioned above. They also have a lot of them. If you are an agent in any medium to large city, there could be hundreds or even thousands of great agents working at these companies and they are all fighting over the same market share. Even if a consumer believes that RE/MAX has "Outstanding Agents", as one of their agents you could still find yourself in competition with hundreds of your own colleagues. In the consumer's mind, they still don't know who to hire because all agents sound the same. They all are claiming to be #1. Somewhere the RE/MAX brand became more about the agents themselves than the consumers they serve. The very name stems from "REal estate MAXimums" which stands for maximizing an agent's commissions and nothing to do with the consumer, so it really doesn't address the need of helping the consumer in the point-of-purchase decision making process.
So, as an agent, how do you create a perceived value in the minds of consumers that will make them think of and purchase your service instead of that of a competitor? How do you use a brand to stand out from your competition?
Is the answer in the red hat that you wear? The Hummer that you drive? The family pooch in your photo? The pumpkins and flags that you give your farm area on the holidays? None of that is a brand; it's a personal image. Confusing a BRAND with a PERSONAL IMAGE is the single biggest mistake that agents make in their marketing. Advertising a personal image will create a memory in a target market. Advertising a brand will connect at a deeper level with your target market because the brand fulfills a need. A successful brand will win the battle in a consumer's mind every time over a personal image.
Where the big companies mentioned above have missed the mark, a national upstart company out of Newport Beach, CA seems to have gotten this right. The Professional Realty Council (PRC) gives its network of PRC Council Members a consumer-centric brand to secure a place in the minds of buyers and sellers. You may have not heard of PRC, but you will soon. They are the first company on a national level to require background and credential checks of all of their agents. Consumers have a natural distrust of real estate agents because as I demonstrated above, they can't tell the difference between them. Often it's too late when they realize that the agent they hired is inexperienced or negligent. PRC solves this problem by only accepting applications of REALTORS who pass their minimum required standards, pass a background check, and have significant area and industry knowledge. Their brand reflects that "You can hire any agent and take your chances, or hire a PRC Council Member and buy or sell with confidence." This brand resonates with a consumer because it meets a need: they want a qualified agent that they can trust.
In this economy, consumers also want to know that they are getting a good value. Home builders and relocation companies for many years have offered incentive packages to their buyers and sellers if they use their preferred vendors. The transactional savings these 'managed accounts' create are passed along to the consumer in the form of a benefit package. Because PRC offers a similar benefits package to its nationally relocating clients, every agent in their network is able to offer the same "National Benefits for the Local Move" to all of their local clients - even if they are simply moving across the street. Again, a need of a consumer is fulfilled by the PRC brand. This creates value and demand for the services of their member agents.
The Gallup Poll conducted a study for the Better Business Bureau in April 2008 of what consumers want from a business they buy from. The top four answers were:
72% - Deliver on their promise
70% - Stand behind their advertising
67% - Increased Disclosure
66% - Certify products are inspected and safe
PRC realized that there is a natural hesitancy for buyers to make an offer on a home that they know very little about. They are suspicious of the seller and fear the unknown condition of the home. This is often reflected in low offers, difficult negotiations, extensive and costly repair requests, and often lower net proceeds to the sellers and lower net commissions to the agents involved in the transactions. Therefore, PRC offers consumers the PRC Certified Home that pre-inspects and warrants their Council Member's listings prior to placing them on the market. A buyer can purchase a typical home and take their chances, or buy a PRC Certified Home and enjoy piece of mind. Again, the PRC brand fulfills a need of the consumer and leads to a happier transaction for everyone involved.
Lastly, because PRC only certifies enough agents to serve their market areas, there is virtually never competition between agents. In fact, PRC only allows 1 agent to be certified per 5,000 households. This works out to about 1 per zip code, or about 30,000 agents nationwide. Again, by keeping the supply of agents exclusive to their communities, they each experience higher demand and enjoy greater market share.
It is very difficult and expensive for a single agent to create this kind of consumer-centric brand on their own. Yes, they can get a background check and offer incentives on their own. They can even pre-inspect a home. However, they lack the story and 3rd-party credibility that a national company like PRC can use to substantiate value and trust in the minds of consumers. It's not just about what services you offer, but the perceived value that will make a buyer or seller think of and purchase your services instead of that of a competitor. PRC acts as an advocate of the consumer, therefore their endorsement helps their certified member agents stand apart from their competitors and gain market share in the communities they serve.
For more information about PRC, please visit www.PRCStandards.net
PRC Access Realty comes to the Valley of the Sun!
After 15 years helping buyers and sellers with their real estate needs in the Valley of the Sun, I am venturing out to launch my own company on December 1, 2009 - based right here in Arcadia, Arizona. As a licensee of the Professional Realty Council® (PRC®), I am opening my own office as broker/owner based on their consumer friendly national brand. Since PRC's brand is consumer driven with strong demand, I am currently looking for top agents who want to share in the opportunity to offer PRC's value added services.
This is a venture that has been in the works for sometime. I have spent the past 5 years of my RE/MAX Hall of Fame career helping develop the PRC® national brand. My partners and I working in several states have built a model based on the latest trends in marketing and real estate, creating a consumer-centric "Network of Standards®" among experienced real estate professionals. See www.PRCStandards.net.
Our agents at PRC Access Realty will be able to offer buyers and sellers our unique brand of "National Benefits for the Local MoveTM" that can only be offered to PRC Private Clients®, including the benefit that all of our agents have passed a Background and Credentials Check by a third party. PRC screens each licensee to insure that they are true professionals that meet or exceed their national standards. At PRC, we like to say "You can use any REALTOR and take your chances, or you can hire a PRC Certified Agent and Buy or Sell with Confidence."
So, look for the PRC Red Tag logo out front. You'll know the homeowners made a wise choice - you can, too!
Dennis Rosvall
I saw an article on MSNBC this morning about a British guy who won the "Greatest Job in the World" - to get paid $110,000 to spend six months on the Great Barrier Reef in Australia not doing much more than blogging about his adventures as caretaker for the reef's islands. I don't know about you, but that would combine my two loves and be my greatest job to have, too. I've been to the Great Barrier Reef three times and I could easily spend the rest of my life there. I'm also obviously addicted to social media, so it's a natural fit.
So, this got me thinking: Who has the greatest job in Arizona?
We have such a rich and diverse state full of beauty and history, from the Grand Canyon to Tombstone, that there must be somebody who has the ultimate and most envied job? Is it someone associated with one of our many sports franchises? (Where are you @DbacksPRGirl?) Maybe a Park Ranger on the Rim, or maybe a maitre d' at one of our highly rated restaurants? There are certainly some great jobs to have in Arizona.
I'd like to hear your nominations. You can nominate yourself, a friend that you're envious of, someone who may be a local celebrity, or just a job that you know exists even if you don't know who holds it.
This should be a lot of fun, and at the end of the month I will select the winner of "The Greatest Job in Arizona!"
Here's is some information passed along to me from a friend in the mortgage business regarding the Federal Governments new Loan Modification program:
The Obama Administration unveiled the final details of its "Making Home Affordable Program," which is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future.
One of the initiatives in this program is aimed at helping struggling homeowners "modify" their loans to avoid foreclosure. Here are some common Questions and Answers about the Modification Initiative in the program.
MODIFICATION INITIATIVE
Who is eligible?
To apply for a Home Affordable Modification, you must:
If you answered YES to all of these questions, you may be eligible for the Modification Initiative.
Am I eligible if I missed some mortgage payments?
Yes. If you missed two or more mortgage payments and answered "yes" to the Modification Initiative requirements above, you may be eligible for a loan modification.
Do I need to be behind on my mortgage payments to be eligible for a Home Affordable Modification?
No. Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default. Examples of being "at risk" include facing a significant increase in your mortgage payment or a reduction in your income. Contact me to discuss your specific situation.
I have a second mortgage. Am I still eligible?
Yes, but only the first mortgage is eligible for a modification under this specific initiative. Contact me for details on how to modify your second mortgage.
I have an FHA loan. Can it be modified under this program? Are all loans eligible?
Most conventional loans including prime, subprime, and adjustable loans; loans owned by Fannie Mae and Freddie Mac as well as private lenders; and loans in mortgage backed securities are eligible for a modification. Contact me to discuss your specific situation.
I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?
Yes. Mortgages on two, three and four unit properties are eligible as long as you live in one unit as your primary residence.
What does the Modification Initiative do?
If you are eligible for this plan and are approved, you will be put on a trial modification for three months at a new interest rate and payment.
If you successfully make the payments and are current at the end of the three-month trial period, your servicer will execute a permanent modification agreement that will lower your interest rate to a fixed rate for five years.
What happens after five years?
Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the "rate cap" in your modification agreement, which is basically the market interest rate on the date the modification is finalized.
That means your rate can never be higher than the market rate on the day your loan is modified. This is great news because rates are currently at historic lows... and you can lock in now.
How low can my interest rate go?
The Treasury is providing incentives to your lender to write the interest down as low as 2%, if necessary to get to a payment that you can afford based on your income.
What happens if that is not enough to get to an affordable payment?
If a 2% interest rate is not enough to bring your payment down to 31% of your gross monthly income, your servicer can extend your payment term--for example, give you a 40-year loan rather than a 30-year.
If that is still not sufficient your servicer will defer repayment on a portion of the amount you owe until a later time. This is called a principal forbearance. A portion of the debt could also be forgiven. This is optional on the part of the investor. There is no requirement for principal forgiveness.
Are there any other benefits to this program?
Yes. For every month you make a payment on time, Treasury will pay an incentive that reduces the principal balance on your loan. Over five years the total principal reduction could add up to $5,000.
How much will a modification cost me?
There is no cost to borrowers for a Home Affordable Modification. You will not be asked for any money by your lender. However, you may not want to "go it alone." Please contact me for information on affordable resources designed to assist you with your loan modification. After all, you only get one chance to do this right.
If there are other costs associated with the modification--such as payment of back taxes--your servicer will add those costs on to the amount you owe. Your servicer will also forgive any late fees.
Is housing counseling required under this program?
Borrowers are strongly encouraged to contact a HUD-approved housing counselor to help them understand all of their financial options and to create a workable budget plan.
However, housing counseling is only required for borrowers whose total monthly debts are very high in relation to their incomes (55% of your gross monthly income).
If you would like to speak to a housing counselor, call 1-888-995-HOPE (4673).
How do I apply for the Modification Initiative?
We have excellent tools available for you to assist you in putting together a Loan Modification request. Please contact me for details.
My loan is scheduled for foreclosure soon. What should I do?
If your mortgage has been scheduled for foreclosure or if you have missed one or more mortgage payments, should contact your servicer immediately.
You may also want contact a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).
As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to help. Just call or email me any time.
Jon Littlefield, CMPS®
Certified Mortgage Planning Specialist
Cell: 480.703.0512
Fax: 800.954.0780
"You're at Home Here"
I've had several of my friends who haven't joined Facebook or Twitter yet contact me recently wondering how Social Media can help them in their business. Basically, what's the point? Well, I remember people asking that same question about 12 years ago when the internet was just coming into its own. Seems a bit silly now, doesn't it? The best way I can answer the question is this: The world is changing right before our eyes faster than we can even imagine. It's become connected and transparent. I think that most of you can admit that a static Rolodex or address book has been replaced with electronic versions like Outlook, Blackberry, etc. Now these databases are being replaced with Facebook, Twitter, LinkedIn, MySpace, YouTube, blogs, RSS Feeds, et al. Basically, Social Media has transformed your address book from a place where you keep your contacts to a place where your contacts keep you. (Damn, that's good - I'll need to post that on Twitter!)
Social Media is an interactive, multi-faceted, global database where everybody can learn and share from everybody else. You can find your own balance as to how much you want to share or observe. Don't you think it would be great that if all of your friends and clients shared their greatest successes as they happened and you could congratulate them in real time? Do you think that would make a powerful impact? Think they might remember you when it comes time for them to need your services? And, what about their friends who you have never even met? Do you think they might wonder who you are and what you do when they see you interacting with their friends? You bet! As with most things in life, 90% of success comes from just showing up.
Here's a video by Perry Belcher that explains the point of using Social Media in business better than any others that I have seen. Thank you to Chris Pollinger of the PRC Network for passing this along.
http://www.facebook.com/ext/share.php?sid=53661224331&h=-TJwY&u=g-LQ4
Also, thank you to the dozens of you who have already joined my Facebook, Twitter and LinkedIn networks. Much more good stuff to come.
I'm on Facebook and LinkedIn at Dennis Rosvall or DRosvall@prcstandards.net, and Twitter at UberRealtyGuy. See ya soon!
Dennis is a Real Estate Broker serving Arcadia, Scottsdale and the Phoenix Metro Area since 1995. He currently serves as a Director of the Scottsdale Area Assoc. of REALTORS and as a marketing coach.
Dear Friends and Neighbors!
I'd like to use this blog to share some exciting news with you regarding our local schools here in Arcadia, this great community we live in, and the real estate market. In fact, many of you have contributed to what I'm about to share. So, I'm very grateful and want to extend a heartfelt thank you. I also hope that you will join me to discuss all that is great in this wonderful neighborhood that we call home.
In 1994 my wife, Jennifer (Castle), and I moved back into the Arcadia area from Portland, OR to the home she was born and raised in. Wanting to put down new roots, I started my Real Estate Practice with a local RE/MAX office serving the Arcadia and Scottsdale areas. My wife went to work for America West Airlines, and together we raised our two children, putting them through Arcadia Montessori and the Arcadia Neighborhood Learning Center (ANLC). With both of our children being special needs kids, we became very involved with Phoenix Children's Hospital, the Children's Miracle Network, Heart-2-Heart, and the Make-A-Wish Foundation. Our son Brandon received his Wish in 2003 with much fanfare, having his bedroom turned into a fire station. He's doing great today, and I have gone on to coach him in Arcadia Little League for four years, and have served as his Den Leader in Arcadia Cub Scouts for just as long. Jennifer has since become a popular substitute teacher at ANLC, and acted as our daughter Elizabeth's Girl Scout Leader for many years.
Because of my community involvement here in the Arcadia area since 1994, and the reputation that I have achieved nationally working with national transferees moving to and from Arizona, I have been awarded a coveted seat on the Parent Relocation Council. The scrutiny to become a PRC Council Member is tough, and in fact, I am the only one who has even been awarded a seat from the Arcadia area. Furthermore, money couldn't buy me a seat on this Council. PRC is all about providing exceptional customer service to buyers and sellers. I had to satisfy stringent, qualifying criteria before I could be seated on this elite Council. In fact, PRC regularly survey's my clients and if I don't maintain my level of Client Satisfaction, I can lose my seat on the Council. Across the country, only the most accomplished and credentialed REALTORS® are accepted for Council Membership. I am honored to have been chosen as one of them.
Founded in the mid 1990's, PRC launched http://www.parentrelocationcouncil.org/ in 2004 and became the nation's only consumer-centric organization dedicated to helping buyers and sellers avoid tragic and heartbreaking real estate transaction disasters by offering a way to separate EXPERIENCED REALTORS® from the inexperienced and often negligent real estate agents. The people at PRC realized that 90% of new licensees don't last in the business more than four years, and unfortunately, the unsuspecting buyers and sellers don't know the right questions to ask to tell the experienced from the inexperienced. PRC solved that problem by awarding Council Membership only to the best REALTORS® in each community, giving consumers an opportunity to buy and sell with confidence. PRC has now grown to help consumers on a daily basis across all 50 states.
Like the folks at PRC, I realized many years ago that buying and selling a home is probably the most stressful business transaction most people experience in their life. And, because people don't buy and sell homes every day, it's easy to get overwhelmed with the tons of information available on the Internet. I help you sort it all out. I can help simplify the process. Along with PRC, I am your ‘silent family member' who you can depend on to make any impending move - across the nation or across the street - less scary and more comfortable."
Since I am the only agent awarded Council Membership in the Arcadia area, I am the only REALTOR® that has access to PRC's relocating buyers. This can be a big help to you - if you are selling. In addition, because PRC is a relocation company, I can extend exclusive relocation benefits to you for your local move that previously have only been available to national transferrees; an offer that can save you thousands of dollars if you are buying or selling.
I invite you to follow my blog and visit the website yourself. As always, I'm here to help with any real estate, school and community needs you may have. For more information about my role in the Parent Relocation Council® or if I can be of any help with your real estate related needs, just give me a call at 480-232-0948 or Email me at DennisRosvall@REALTOR.com
All my best,
Dennis Rosvall
Hello! and thank you for for visiting my blog www.LivingInArcadia.com. I am Dennis Rosvall, an Associate Broker and top-producing agent with RE/MAX Achievers in Arcadia, Scottsdale, and the Phoenix Metro Area. Since 1995, I have been specializing in using the Internet to help families just like yours BUY and SELL residential real estate throughout the Valley of the Sun. As a veteran REALTOR, I am experienced in guiding you through your entire moving process. I am proud to be the first and only REALTOR in the Arcadia area to be selected to be a Council Member of the Parent Relocation Council. This elite status has opened up many doors and resources to help me serve my clients better. My goal is to help you buy the house you want at a price you can afford, or use my EXCLUSIVE access to more relocating buyers from throughout the country to help you sell your home faster with the highest proceeds to you. I believe in using my EXPERIENCE in finance, contracts, negotiating, and marketing to your best advantage, and I pledge to provide you with state-of-the-art, world-class service before, during, and after every transaction.
Not only do I sell a lot of homes, I also make a lot of FRIENDS along the way. People TRUST me for my knowledge, honesty, and integrity. The pride I take in my real estate services are at a level that I'd expect when dealing with other professionals - treat everyone fairly, honestly, and with respect, while working to obtain for them the very best. You may have a family doctor and a family dentist. Well, I want you to think of me as your family REALTOR because I will always be here to answer your questions, and give the extra PERSONAL TOUCH that I hope will bring you back again and again with your real estate needs. I hope that you give me the opportunity to earn that trust.
My wife, Jennifer, and I raise our two beautiful children, Elizabeth (1993) and Brandon (1997) in the Arcadia neighborhood, along with our two St. Bernards, Sophie & Lily. I serve on the Scottsdale Area Association of Realtors Board of Directors, Chairman of the RE/MAX Northeast Valley Tour, Office Ambassador for the Children's Miracle Network, member of the SAAR Leadership Team, Branch Manager of our office in East Scottsdale, Cub Scout Den Leader, and as a former Arcadia Little League Head Coach of my son's team. My sales have regularly placed me in the RE/MAX 100% Club, and I was twice nominated for Scottsdale "Realtor of the Year". I was awarded my State of Arizona Broker License in 2000. Preceding my real estate career, I had a 5-year sales career in Specialty Advertising in my hometown of Portland, Oregon, and obtained my BBA in Marketing and Economics at the University of San Diego (1990).
I hope that we will have the chance to work together in the future. Until then, all of my best to you and yours!
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