FNS40815 Certificate IV in Finance and Mortgage Broking

Situation analysis 

SWOT Analysis 

 

PEST Analysis 

Political factors:

• Risk of military invasion
• Legal framework for contract enforcement
• Trade regulation and tariff related to banks
• Wage legislation (Kotabe and Helsen, 2020)
• Compulsory benefits of the employee

Economic Factors

• Government intervention in the free market
• Quality of infrastructure in the banking industry
• Growth rate of the economy
• Rate of inflation
• Rate of interests

Social factors

• Demographics and the skill level of production
• Culture
• Level of education or the education standard
• Leisure interest
• Attitudes

Technological Factors

• Recent development in the technology
• Impact of technology on the offering of product
• Rate of technological diffusion

Marketing goals 

The marketing goals involves being on the best position in the market, having profitable customers or clients. Targeting and setting up a good market, achieving huge amount of sales and establishing a strategy, positioning as well as value of the market. One of the biggest goals of a mortgage broker is to get the competitive advantage. (Fligstein and Roehrkasse, 2016). The resources should also be very well established.

Marketing Strategy 

A right marketing strategy of the mortgage industry can turn a potential borrower into a processed loan from a cold lead. Following are some of the marketing strategies that can be used to fund as well as close more loans.

• Choosing the target audience
• Taking advantage of the content marketing
• Starting advertising through social media
• Using Pay-per click advertising
• Setting up remarketing
• Wisely using the list of E-mail
• Checking the website regularly

Market segmentation

The home buyers whom the mortgage industry will serve are divided into two groups:

• First-time homeowners- A bulk of new construction in the mortgage industry is directed towards the first time homeowners
• Residential refinancing- whether it is for remodelling, purchasing, investment properties, remodelling programs available to service those having a good as well as bad credit.

Market positioning 

The more similarities in the mortgage services, the more important are the details. When a selection has to be made by the realtors for a loan officer, they are in search for difference on the basis of which their decision made. (Dobson and Poels, 2020). For separating the business from others, the trivial must be accentuated. Positioning simply means setting up a business apart from the competitors.

Marketing tactics 

In order to strengthen the area’s economy as well as low rate of interest, high number of home buyers is in search of buying the homes. The change in the attitude of the buyers if home is a huge boost to the firms of the real estate firm. Residential construction is flourishing. The mortgage brokers take advantage of the changes and expect to build up goodwill and a profitable entity.

Research 

The mortgage as well as finance industry is a high complex sector business sector with a huge number of governmental organization which offers oversight at the local as well as national levels. There are different requirements of different jurisdictions for the customers, providing products like fixed rate, interest and adjustable as well as reverse mortgage to the appropriate clients. (Thomas, 2017). Along with the new emerging demands which is placed on the mortgage industry, more attention is being paid to the practices of foreclosure that is being used by big banks and other financial institutions, and the public demand for the underwriters mortgage. There is some public consensus as to where the industry is headed.

Many originators of the mortgage have struggled in order to compete profitability in the rapidly changing competitive landscape. At the same time, the expectations of the customers for a transparency, personalization, speed and convenience are increasing by the digital experience outside banking. There is a huge chance of improvement. In the lives of most of the people, a home mortgage acts as the biggest financial transaction. For a few it is the lengthiest as well as the most frustrating financial transaction that will ever be endured by them. In a recent survey that was conducted with 1200 customers of residential mortgage, only 45 to 65% of the borrowers were found to be satisfied with the process of mortgage, the situation of the banks were worse than the non banks. (Farquhar, J., 2017). They were lagging behind 25-35%.

Consumer behaviour 

It is assumed by the traditional theory that the there is known preferences of the customers along with the fixed amount of income, transparent prices. They can rank the option of utility in order to make selections that are in the best interest of the customers. On the other hand, some theories of economics predicts some of the aspects of the customer’s choices make in routine setting and it provides a very limited guidance on the behaviour of the customers in the situation of complexity and stressfulness.

Following are some of the customer behaviour noticed in the market place

• The preferences of the customers are malleable and not fixed
• Very often, the customers lack the awareness of the price of mortgage
• There is a struggle with the choice of the customers which includes risk and payments
• There is often struggle with the customer’s mortgage shopping

Implementation plan 

The organisation will focus on the needs of the mortgage broker in the city’s old town section as well as the surrounding areas. The target customers will be the buyers of the home for the first time as well as the existing owners of the home who are interested in refinancing.

References 

Dobson, D.S. and Poels, K., 2020. Combined framing effects on attitudes and behavioral intentions toward mortgage advertisements. International Journal of Bank Marketing.

Farquhar, J., 2017. Marketing financial services. Macmillan Education UK.

Fligstein, N. and Roehrkasse, A.F., 2016. The causes of fraud in the financial crisis of 2007 to 2009: Evidence from the mortgage-backed securities industry. American Sociological Review, 81(4), pp.617-643.

Goldstein, A. and Fligstein, N., 2017. Financial markets as production markets: The industrial roots of the mortgage meltdown. Socio-Economic Review, 15(3), pp.483-510.

Hoque, M.E., Hashim, N.M.H.N. and Azmi, M.H.B., 2018. Moderating effects of marketing communication and financial consideration on customer attitude and intention to purchase Islamic banking products. Journal of Islamic Marketing.

Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.

Massey, D.S., Rugh, J.S., Steil, J.P. and Albright, L., 2016. Riding the stagecoach to hell: A qualitative analysis of racial discrimination in mortgage lending. City & Community, 15(2), pp.118-136.

Thomas, J., 2017. Lessons learned in management, marketing, sales, and finance incentive practices a decade after the Subprime Mortgage Crisis. Thomas, JE (2017). Lessons learned for management, marketing, sales and finance incentives a decade after the subprime mortgage crisis. International Journal of Business Management, 12(3).

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