The current real estate market has forced many second-home and resort developers to take a "wait and see" approach to their business. Unfortunately, the recent news surrounding developments like Yellowstone Club, and Promontory has created an uncertain feeling within the category. In turn, developers are reluctant to invest in their projects and many have decided to halt construction all together. But now is not the time to go quiet – quite the opposite. Following are just a few of the reasons why developers are urged to take an opportunistic approach. While other projects file bankruptcy or stop construction, savvy developers can take full advantage of a quieter market, getting the most out of construction and marketing dollars:
• Many believe we are close to reaching the bottom of the real estate collapse and there are a number of substantiated indicators to support this thinking — for example: not only is the credit crunch beginning to show signs of remedy, with more money becoming available for real estate investing, interest rates are at an all-time low. As a result, buyers who were sitting on the sidelines are ready to re-enter the market. The stock market outlook remains uncertain at best and real estate continues to be a safer long-term investment.

Position your product now

From a PR perspective, there is no better time than now to spread the word about your development and bite into your competitor market share. There is ample opportunity in the media world for editorial coverage. Public relations helps weather the short-term financial storm by keeping your name in the public. Communities continuing to increase awareness among target audiences in a down cycle will be better positioned in six, nine and twelve months, especially when others are backing away. Those communities that continue to get coverage in The Wall Street Journal, The New York Times and Travel + Leisure will reap the benefits when buyers are ready to purchase and will be better positioned to take qualified leads from the competition.
Despite the recent press about safety in Mexico, the country continues to be a sought after destination for second homebuyers. It is the only area in the world, connected to the U.S., with year-round tropical destinations, beautiful beaches, and authentic old-world culture. Now more than ever, when North Americans are looking for ways to stretch their dollars, and factor in the aging semi-retired and retired baby boomers, Mexico's affordable cost of living is very appealing. Mexico is uniquely positioned and will always be a home away from home for many Americans and Canadians seeking a vacation home.

Make a positive impression
The recent bad press about Mexico – and the resulting consumer perception — makes it even more important to counter with messaging that tells the true tale and leaves a positive impression. Violence is not directed at tourists and is limited to mostly border towns. Communicate with your existing owners and prospective buyers with factual, relevant information by phone, email and other marketing tactics including PR. Developers can dispel myths using a strategic, integrated marketing/PR campaign.

It takes courage
So, why advertise during a recession? In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies covering 16 different SIC industries during a 5-year period (1981-1985) including a serious recession. At the end of the analyzed period, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising. Because so many communities have put a halt on construction or closed the doors indefinitely, advertising has become more competitive and hence, more affordable! Communities can reach a wider, more targeted audience with a smaller investment. And, those companies [most affected are B2C] who slashed marketing and advertising spends disproportionately lost market share and did not recapture it when the market rebounded.

Market the lifestyle
Statistically, “lifestyle” is a better tool for segmenting affluent consumers (top 2%) to predict the affluent consumer’s behavior, so targeting a lifestyle rather than a demographic provides a more detailed definition of your prospect. To achieve success, a brand must determine which values [personal drivers] they can satisfy and be the most competitive in satisfying. Recommendations from peers and family are the greatest influence on all lifestyles. How you create a positive word of mouth varies by lifestyle with editorial and social media having more potential ROI than advertising. And, while it seems obvious – service, service, service is paramount to sustained success. It shouldn’t take a recession to figure this out, but a well-defined CRM and service strategy will boost your brand in the downturn allowing it to rise above the clutter when your competitors return at full force.

Internet marketing and websites

Sophisticated tools for geo, gender, socio-economic and behavioral targeting through search engine marketing still provide the highest and most expedient ROI – especially for lead generation. With a keyword search, users quickly find, map and learn about your property, then decide whether or not to contact you. Your ranking is critical – especially for general search terms such as “Mexico Real Estate”, you need to have a well-planned strategy and budget. Sites must be aesthetically pleasing, easy to navigate and “sticky” (provide engaging reasons to keep them returning) – and share it with their friends [the power of viral marketing]. Old marketing rules stated that a customer’s bad experience would be repeated several times to friends compared to a good experience they shared with just a couple – now, a customer’s bad experience can reach over 100,000 people in an hour through blogs, social media sites and sites like TripAdvisor. A user’s honesty is like having a free focus group – use it with respect. Once you know who your target is, design around their specific needs — It’s hard to read small type, and even more so on the internet — According to the National Association of Realtors, the average investor who purchased a vacation home last year was 46 years old. Those who purchased investment homes were 47 years old. Legibility plays a critical role.