Mcbride Marketing Plan

MCBRIDE MARKETING PLAN

The McBride Financial Services marketing plan will deliver the best marketing solutions that meet the company’s mission and achieve the company’s goals. The plan focuses on delivering our product and services through a Web-based mortgage application. Market research in the areas of real estate investment, finance, advertising, advertising mediums, and mortgage loans, allows us to pinpoint and reach our target customers.

Business Requirements

The McBride mission statement shown in Appendix A requires advertising across a five state area. Pinpointing and reaching potential consumers through selected mediums achieve the McBride company goals, shown in Appendix A. The deliverable product “the most efficient and user friendly mortgage application process available obtained by leveraging technology (specifically the Web),” utilizes the company’s Website and strategically located offices (Apollo Group Inc, 2003). The services, listed in the business plan are as follows: A credit report, Mortgage, Inspection, and Appraisal (Apollo Group Inc, 2003).

Market Research

Market research focuses on three specific elements, market exposure and expansion, financing, and demographics. Achieving market exposure and expansion utilizes new advertising methods. Financing options offered, give the consumer the best possible mortgage that fits their budget. Demographic research pinpoints and provides the best medium available to reach the targeted market.

Market Exposure and Expansion

Market exposure and expansion turn away from traditional marketing methods such as the four Ps and will utilize a new method, Solution, Information, Value, and Access (SIVA) (Dev & Schultz, 2005). The four Ps is a traditional marketing method with the “focus on product, price, place, and promotion” (Dev & Schultz, 2005, p. 37). The traditional four Ps strategies will not focus on the demographic targets nor support the business plan. On the other hand, the SIVA method will allow target specific advertising and meet or exceed the business plan.

Financing

Financing options consider Federal Funds Rate and types of loans that suite the customer’s need. The Federal Funds Rate controls the lending rate that banks and financial institutions use when processing a loan (Thornton, 2007). Future business and marketing plans utilize Federal Funds Rate trends for as shown in Table 1.

Types of Loans

According to Mortgage-X (2008), “All mortgage plans categories in two different ways. Firstly, conventional and government loans. Secondly, all the various mortgage programs may be classified as fixed rate loans, adjustable rate loans and their combinations.” Only Federal Housing Authority (FHA), Veterans Affairs (VA), and Rural Housing Service (RHS) loans are government loans. Any other loan is a conventional loan.

FHA loans. The Department of Housing and Urban Development (HUD).administers FHA loans. Options for a reverse mortgage are available for seniors and energy-efficient options are available (U.S. Department of Housing and Urban Development, 2008). FHA loans are easy to qualify for and have “lower down payment requirements and are easier to qualify than conventional loans” (Mortgage-X, 2008).

VA loans. VA loans are available for military veterans. An automated system, Automated Certificate of Eligibility (ACE) is available through the internet to establish eligibility within a few seconds (U.S. Department of Veterans Affairs, 2008) . Reverse mortgage and refinancing is available for elderly homeowners.

Fixed Rate Mortgages (FRM). FRM loans have an interest rate that does not change during the entire term of the loan (Mortgage-X, 2008).

Adjustable Rate Mortgages (ARM). ARM loans have a variable interest rate, which causes the monthly payments to vary during the loan period. The index rate for the loan is determined when the loan application is processed (Mortgage-X, 2008).

Demographics

The demographics used for the marketing medium choices are determined by the niche market. Demographic research using “Right Site Professional Edition” will provide the required information for the advertisements. Right Site Professional Edition provides “demographics for decisions for location analysis, real estate planning, advertising, sales, marketing, or potential analysis” (Easy Analytic Software, Inc., 2008).

Demographic information surrounding each of the eight locations provides specific information for target specific advertising. Market expansion increases by collecting current information and using the demographic software.

Target Markets

The target markets shown on the business plan are the “Professionals purchasing either a primary or a secondary residence, retirees purchasing a primary or secondary residence, and families and/or individuals purchasing recreational properties” (Apollo Group, Inc., 2003). Each target has a defined set of demographics that allow maximum exposure of the advertising. The “SIVA method supports and builds on the true marketing concept - finding customer needs, wants, or desires and fulfilling them at a profit” (DEV & Schultz, 2005, p. 39).

Advertising Media

Utilizing various mediums to reach the target consumers maximize advertising coverage. Promotional advertising mediums available are as follows: local TV, local newspapers, handouts, radio, local realtors, and internet sites. Local TV and Local newspaper, and local radio commercials and ads will reach many local consumers. “Informational handouts at airports and major tourist attractions” will reach potential customers that may consider moving into the area (Apollo Group, Inc., 2003). Advertising brochures and handouts at local realtor’s offices will reach many potential homebuyers and specific consumers. Specific internet sites with homes for sale and sites will be key prospects for advertisements. Specific placement of ads on Websites with homes for sale, pinpoints the potential homebuyer. Many of the local realtors with Websites will sell an advertisement spot and/or link to the McBride Website for loan