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
psycho graphic 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 psycho graphic 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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