Courtesy of Apple
If you want to gain or sustain market leadership, as a luxury real estate marketing professional, pay close attention to market leaders in other luxury product and services fields. They can offer you invaluable clues. We watch Apple like a hawk because it is the most valuable company in the world, and also one of the best international luxury brands.
How is Apple a luxury brand? They build premium products that command premium prices and generate great profit margin.
Most people do not need a $329 iPad Mini. Yet, the white version sold out the same day it came on the market! So, why is it that so many people are willing to pay a premium for the iPad Mini when they can get a Kindle or an Android based smaller tablet for less?
Many pundits were certain that the price was too high for budget-minded consumers. They were right; but not for the right reason. The iPad Mini is NOT for budget-minded consumers because they do not have the psychographic profile (mindset) of Apple’s target market.
Apple is not even trying to win over price-sensitive consumers at the lower end of the market. Instead, they are focused with laser-like sharpness on serving those who appreciate and simply must have best-in-class products. Consumers with this mindset value superior design and engineering. Apple knows how to communicate with and serve consumers with this psychographic profile better than any other technology company on the planet.
Apple also knows that extremely satisfied customers will become evangelistic fans, and these fans will influence some of their budget-conscious friends to switch to the best-in-class mindset. Others will switch when they walk into an Apple store and discover or rekindle their own best-of-class mindset without any sales pressure, whatsoever.
That is why Apple can command a premium for their products and also generate a higher profit margin. By steadfastly claiming, the best-in-class brand position Apple forces their competition (in the cheaper price and lower profit margin spectrum) to battle it out between themselves.
To sell tablets at lower prices competitors have to cut corners. Apple marketing VP, Phil Schiller s summed up their best-in-class brand position in 7 words: “Competitors are making compromises with their products. We don’t.”
If you are engaged in the “unabashed pursuit of market leadership” as a luxury real estate marketing professional, you must assume the best-in-class mindset yourself. Then, focus exclusively on those clients who appreciate this core value. Let your competition fight over everyone else.
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