Sarah Kubicki
MKT 421
Marketing Mix Paper
3/11/2013

Marketing Mix Paper

A product and marketing structure I am extremely familiar with is the Mortgage Industry. I work with an organization called Capwest Mortgage. We have a product that is constantly changing and the profitability of that product also changes often. The marketing strategy can provide a major outlook of what a business can do in a limited market. When creating a market strategy, a corporation must stick to an ideal and target group and an established marketing mix. Target of Market is defined as a group of similar customers to whom a firm wishes to appeal,” and a marketing mix is defined as variables the company puts together to satisfy this target group” (Perrault & McCarthy 36).
I think moving towards a certain group of individuals is important when you want to target your consumer and really develop and define your marketing mix that caters to the customer’s needs better than the competition. Offering different pricing scenarios is a good way to target your consumer to see what economical groups you’re going to get. In the mortgage industry this can be a tough move because of the new Fair Lending Laws most companies cannot choose their specific pricing. They have to quote the exact rate for one customer that they would quote for another. There are different products for individuals who have different scenarios, such as credit score or income.
But the key target that mortgage companies can focus in on is the actual personalized fees such as title, appraisal, recording or the bank fee that the company charges to do the loan. By keeping this competitive they can change not only the amount of profit they will get from the loan but what type of demographic they are going to access. One of the major plugs that the lender I work for has is a direct line into Costco. Costco has about 62 million members and they are all well qualified, high income individuals with an average credit score of 740 which makes there loans instantly more profitable because they have a higher chance of being approved and funded. The way that a mortgage company were to create a Marketing Mix for that company is to establish a discount pattern for the membership levels of Costco so that the Bank fee or title fees will be diminished. “To find the best marketing strategy and mix, the company engages in marketing analysis, planning, implementation and control.” (Armstrong and Kotler 53) You can always offer different products, such as home equity lines of credit or checking or savings accounts to draw a customer into the major product. One big marketing push that the lender does is offer lender credit or an extra incentive to discount off closing costs. What the lender does is take the extra profitability off the loan