Marketing Mortgages to Consumers (Term Paper Sample)

Marketing Mortgages to Consumers
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Marketing Mortgages to Consumers
Introduction
The growing importance of the mortgage market has increased over time in many countries and has led to the emergence of mortgage brokers and the origination of residential home mortgages (Campbell 2012). There is also an intense increase in mortgage lending mostly in non-prime lending hence bringing a diverse assortment of fresh mortgage products. Therefore, the growth has extended access to credit customers and supported numerous homeowners to link in accumulated home equity to facilitate their investment requirements and consumption.
Q1. Explain your pricing strategy (penetration, skimming, competitor-based)
Price skimming will be the pricing strategy to use when marketing mortgages to the customers. Since it is a new venture, a high price will be initially set to attract the target market of high-income customers who are willing to purchase and are attracted by the product. In other words, these people are early adopters and set trends for consumption. Similarly, the price will be decreased incrementally overtime after talking to customers at varying levels. Concisely, skimming will help to elevate the business in generating higher revenue and break faster to reach new customers with lower buying potential and the product will be accessible in the market.
Q2. Discuss various pricing tactics that have or would prove effective in stimulating sales
According to the business, different levels of high pricing will be used to offer adequate pricing options for customers. It is done by observing the purchasing patterns of customers who opt for premium deals and these have higher perceptions of the offerings. Also, the price structures set for the mortgages will be kept in the simplest style to avoid unnecessary additions that will make the price seem higher. Such as a mortgage price of $20,000 price is preferable to a $20000.00 price. Alternatively, the context of the brand will be utilized as people are willing to purchase from reputable brands because of the influence and perceptions on the product’s set price. Conversely, the prices will not be compared as it results in unintentional effects in customer evaluations hence losing trust in the marketing message. Further, price anchoring will be used to create a scenario to make other products look cheaper. Also, different prices will be set for products that show similar characteristics.
Q3. Discuss the distribution strategy relevant to the product/service
The internet and associated new technologies will be used as a strategy to distribute and expand to customers. In contrast, this strategy will be convenient for customers as provisions of online applications for the borrower to get approved of a loan without interacting with a loan officer or visiting the physical are present. Besides, it is an efficient strategy in transferring communication, it is labor-intensive, creates awareness of available products, and increases accuracy. Also, the customers can purchase a wide range of products online like home insurance and can carry out the price comparison on various websites.
Q4. Explain the channels used to distribute the product/service
A target market will be chosen to know the customer’s purchasing ability and willingness, tastes, and preferences. Besides, an online platform will be built to provide developed features such as an end-to-end online mortgage application and processing through automation. This will allow borrowers to access mortgages in absence of physical interaction. Different mortgages will be provided to cater to the changing customer requirements to meet their satisfaction. Further, web optimization will be used by maintaining an online presence on websites. Also, posting unique visual content on social media channels in form of videos or photos, and campaigns to reach the online market. Alternatively, the online marketing strategies like social channels, emails, and websites will be automated in form of short automated email advertisements, scheduled social posts on regular basis, and direct emailing. Further, networking will be conducted with other business professionals as it will support the exchange of ideas, exposure to potential clients, and building strong business relationships. In other words, brand awareness will increase, valuable information from reviews will be obtained, the different customer requirements are targeted, the product awareness is created and the opportunity to higher generated revenue.
Q5. Explain the firm’s use of e-channels, e-retailing, or other non-traditional methods of distribution
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