Marketing contains almost as many definitions as there are organizations that claim to have a marketing plan or department. Two factors contribute to this. The increased competition for customer spending and loyalty present the first. The second, and more dynamic one, involves the variance between different markets for those companies.  Some markets force organizations to shape marketing to mean sales while others must apply it as strategic planning, public relations, account management, or communications.

Different markets dictate different marketing styles and tactics. REALTOR® associations must adapt to this also.  In fact, compared to other industries, REALTOR® associations inherit an additional hurdle in their marketing.  It involves an unusually challenging amount of interactions among their market segments.

Organizations commonly deal with various segments in their markets.  Computer companies manage them, food marketers want them, and tele-broadcasters diversify programming around them.  REALTOR® associations contain market segments as well.  However, their segments contain a feature that fringes on a competing, even combative, relationship with each other.

It resembles siblings competing for the attention of the parent with the parent being the REALTOR® association.

To better explain this, consider some examples of other industries.  Start with television.  Networks target audience segments with diverse programming.  Those segments view television at different time slots so programming for one  interferes little with another. Consider soup manufacturers, soft drink or ice cream companies and many more where members of one segment possess little awareness of the company’s other segments.

This lack of awareness results from the minimal interaction among them, therefore, little friction exists between them as well.  Their needs and solutions barely overlap each other.  The marketers separately address the needs and solutions for each segment.

REALTOR® association marketing requires different tactics. Segments exist in their market like other industries, each with their individual needs.

However, then these segments interact with each other to a much greater degree than do segments of other industries. With those interactions come conflicting needs and goals.

The Segments and Their Interactions

Five different customer segments exist for the REALTOR® association for considering marketing strategies.  Variations may occur in your specific region.

1. Elected Leadership:  This is usually a broker owner, or at least a management executive.   This small but powerful segment values the gains of a political posture in the association.  Combining that with an electorate change each year makes this an unpredictable and high maintenance segment with regard to planning your marketing strategies.

2. The Broker/Owners (non-political): This segment focuses on growing or keeping their businesses ahead of fellow broker owners/managers.  They usually want little to do with the political platform except where it impacts their business.  In fact, they view the electorate as an obstacle for that purpose.  This segment depends on agent production while also considering those agents a valuable, necessary, but uncontrollable commodity.  Commission ratios and a shortage of solid producers keep their relationship at a constant tension.

3. The Agents: This segment functions as the primary business point of the industry. It holds most of the customer contact and sales activity. It impacts the entire process.  Unfortunately, they also view themselves as the target of the many rules and regulations of the broker, association(s), state, and various other authorities directing their activities.

4. The Commercial Members: These unique members operate in an environment so vastly different from the other segments, they transparently migrate into the role of a step-member.  True commercial members only participate in commercial activity and never residential.  Yet, in spite of this, they must fall in line with a service of the association that mostly targets residential activity. This hampers their relationship with the rest of the organization.

5. The Affiliate Members: This segment represents both an over tapped financial source and an under tapped ally.  They become the targets for sponsorship revenues by the other segments during a funding crunch.  They eventually question their return.

These segments all view the association quite differently.  Trying to satisfy each one presents a difficult chore, but not impossible.

The Solution: Positional Marketing

This marketing platform offers quite a challenge for REALTOR® associations, but not an insurmountable one.  The marketing application called for is positional marketing.

Positional marketing, like its name describes, focuses on how the organization positions itself with its market segments before concerning itself with products or services.   It begins by establishing a central, core purpose, then building an entire marketing system around that core purpose.  The key factor lies in determining the core purpose that fits the core needs of all its segments.  Then, leadership simply develops strategies that align with that purpose.

Unfortunately, most REALTOR® associations unconsciously confuse strategies with a core purpose.  That results in an equally confusing marketing plan.

Before long, the association has various purposes with many of them contradicting each other.  When this occurs, marketing chaos and shortfalls occur alienating all the segments as well as the association staff. To make matters more difficult, when this occurs, the membership more visibly recognizes the problem than the elected directors.  The electorate tends to only see the missing revenues and shortfalls without understanding the root cause.  Below lists some starting points to help:

1. Accept that your greatest chance for success lies in addressing all segments collectively regarding a core-purpose.  Your power comes from a united membership.  Separating needs may appear responsive but carries higher costs later.  You create an image of customization in this path, and like all siblings, they will want more.  Your organization can’t afford that.

2. Communicate with each segment.   Concentrate on learning their frustrations rather than simply asking them what they want.  Most customers don’t know what they want but they do know what frustrates them. If members realize that you at least understand their frustrations, even if you can’t solve them, they will trust you. Learn their frustrations and you’ve learned a great deal.

3. Seek the similarities among the segments rather than the differences.  Plan your marketing on what they share rather than what separates them.  This process keeps expectation at a manageable level.  More value is gained when people expect less and you deliver more.

4. Keep your solutions simple and easy to deliver.  Be careful with high-tech solutions for low -tech problems.  Most frustrations result from simple problems.  Don’t make the solution be more complicated than the problem.

5. Communicate in a sales language.  Real estate exists in a sales-based environment comprised of sales profile-type people.  They talk, hear, and analyze in a sales mind set.  Communicate in that language.

As a REALTOR® association, you represent an incredibly powerful line-up of commerce and economic factors for your community.  Your success grows proportionately to your ability to market the value of your REALTOR® organization to its members.  It’s difficult to bring consolidation to an industry that succeeds by individual drive and goals.  If successful, the combined product can bring an incredible return.