Marketing plan in mortgage services

Owning a home is an American dream that mortgage services is positioned to a lucrative business investment.  However, there are several factors that influence market decisions where market research can be useful.  One important area is researching about the historical and forecasted changes in market value.  When values are expected to rise, the firm has greater potential to be successful in its expansion plan.  People are motivated to mortgage home purchase when there is a likely price gain.

Similarly valuable is to determine other economic indicators such as trends of wage rate, income taxes and also mortgage rate, down payment and monthly payment limits.  In expanding to four other states, there may be local policies and regulations that can modify economic characteristics from Idaho which could trigger different marketing strategies.  For example, declining salaries in one state can reduce ability of the market to pay monthly installments.

There are also other alternatives to purchasing a primary or secondary home that minimizes the market for mortgage services.  In effect, the advantages and disadvantages of decision substitutes should be compared to home mortgage.  Factors to consider are the costs and tax benefit of home improvements, profitability of real estate investment trust (REIT) and buying-versus-renting performance.  There might be a need for the firm to search for other lenders that can offer more attractive provisions to outweigh the benefits of decisions substitutes.

For example, longer mortgage period may be necessary to bring down monthly installments and be competitive to comparative monthly rental fees.  It is also helpful to gather information on population mobility (i.e. tendency to transfer to other states or countries) or the visitor performance on the four states.  When they are people have high mobility or the state does not receive substantial visits, the location is less attractive for homeowners which can suggest new strategies to the firm.

Marketing Medium

In its expansion, the company is required to inform the market of its existence including its market position and branding.  Inability to establish good faith credentials to the market can lead to business failure.  It can tap useful business partners.  Local authorities and agencies that administer the Federal Housing Administration (FHA) and Veterans Administration (VA) loans are the primary channels of the firm since it offer services for FHA and VA loans.

The firm can be also referred by home sellers to their clients which can lead to a win-win situation for all parties.  The company and home sellers can develop their market while clients are provided with value-added services with the opportunity to get financial support.  REIT and landlords can also supply the needed campaign because they too necessitate home appraisal for investment decisions.  Although they are not included in the customer list of the company, citing the firm as cost efficient provider of mortgage services is a mechanism in better servicing the interest of their investors/ occupants.

Publicity can also provide the necessary marketing medium.  It can advertise the company on a wider scale without the communication to several parties rather than single marketing agency.  As an alternative, the company can develop its own publicity by designing an advertising or promotional campaign.  Local newspapers can highlight the services offered, target market, average mortgage rate and service fee that are offered by the firm.

This can create initial perception about its positioning (e.g. low-cost service provider).  Feedback is important in any campaign to determine if the market has gained perception similar to what the company intends to be.  In this view, it is important to include in the newspaper ad contact details such as telephone number, website and address.  Getting the feedback is important since being a low-cost service provider can create impression that the service is inferior to others offering higher prices.

Target Markets

Being a low-cost service provider, the firm is expected to attract the low-income segment and parts of middle-income segment.  This is concretized by the fact that the firm is offering a start-to-finish approach where clients can have full services from loan application, home appraisal and contract delivery.  The work-oriented lifestyle of these segments can receive significant benefits of this approach since they can save time, money and simplify issues associated with home purchases/ loan.

Primary and secondary homeowners are also target market.  The former are inexperienced and the consultancy services can serve as guide in decision-making.  In the contrary, the latter are experienced but are in need of refinancing services as they find a more attractive loan contract from different lender or have changed their mind regarding their initial home purchase.  Acquirer of leisure properties are also target market because the company has a portfolio of different lenders who can meet the requirements of such loan.

As FHA loans will likely consist of low- and middle-income segment, VA loans bring forth a new segment.  This includes retirees and at least fifty year old people or their widows who intend to marry again.  The service that can be offered to them is advisory particularly on issues such as enjoying “double” exemption for capital-gain tax in case of selling a home which subsequently mean getting the exemption first before remarrying.  Further, older people have less time to manage their properties particularly researching, monitoring and evaluation of economic trends.

As a result, most of their decisions are based on experience and judgment.  The company can intervene in this case in offering valuable services to contribute the missing link of older people’s considerations.  Lastly, the company can attract potential market that places their investments in stocks, bonds and mutual funds.  With lowest fees and integrated service, real estate investment has relatively lower transaction costs than other investment choices.

4Ps and SIVA on Marketing Plan

The market research provides information that will shape the products of the company as they require adjustment based on state-specific factors.  It also contributes on pricing the service as low-price services may not appeal to the local market making the current position less effective.  Therefore, necessary promotions that can add value to the service can be initiated.  In using each marketing medium, the company can increase its presence and market penetration to each state.

It can rationalize the need for publicity and additional expenses for advertising depending on the market behavior and strength of local housing authorities in influencing them.  For example, if housing is strictly regulated or supporting mechanisms are minimal, the company may likely opt to use the media in increasing awareness and demand.  By determining target markets, the scanning done in market research and identification of potential marketing medium will be evaluated based the characteristics of the market.  Target markets is the most crucial part of the marketing plan because it simplifies consideration of the factors in general environment and marketing medium to those that are only significant in influencing market behavior.

Satisfaction of the market is addressed when the company offers products and services that are relevant to their current needs.  This includes augmenting loopholes of local housing authorities in providing related services and incentives.  Their interests are activated by actively establishing business partners through local housing authorities, home sellers, REIT and other parties related to housing sector.  Word-of-mouth marketing is acquired.  The value for money regarding the services of the company is aligned to the income situation of its target market which assures an effective strategy.  On the other hand, well-off segment would see the low-price service as opportunity to get a second opinion and increase lender alternative.  Finally, convenience in accessing the firm’s services is supported also by various marketing medium.

References

Geller, L. (2002) Response: The Complete Guide to Profitable Direct Marketing. New York: Oxford University Press.

Hitt, M., Hoskisson, R. & Ireland, R. (2003) Strategic Management: Competitiveness and Globalization. 5th Ed. South Western: Thomson Learning.

Kotler, P. (2003) Marketing Management.11th Ed, NJ: Prentice Hall.