264 Unit 4 Bank Management Developing a Marketing Strategy When you think of marketing, you probably think of the advertisements you see on television. Advertising involves calling attention to a product or service, commonly through the use of paid announcements. Advertising is only one part of marketing. Marketing is the process of introducing a product or service to the consumers who can purchase it. Marketing includes creating a salable item, setting a price, selecting a delivery method, and developing a strategy for promoting the item. Figure 11-3 shows some of the many aspects of marketing. Characteristics of Mortgage Loan (Product) Needs and Wants of First-Time Home Buyers (Target Market) Small Sm al l down do wn payment p ay me nt Small Sm al l amount am ou nt of o f money mo ne y saved sa ve d for fo r d do wn payme p y t nt C Co Co mpeti mp et it it i iv iv e e i in in terest te re st rate r at Low L e L ow mortgage m or tg ag e payments pa ym en ts Few Fe w closing cl os in g fees fe es Low Lo w closing cl os in g costs co st s Roll Ro ll closing c lo si ng costs c os ts into i nt o the th e mortgage mo rt ga ge loan l oa n Low Lo w closing cl os in g costs co st s Flexible Fl ex ib le credit c re di t requirements re qu ir em en ts Approval Ap pr ov al with w it h short sh or t credit cr ed it history h is to ry N No pen p lty al ty for f prepayment p p y Increas t I d ed income i over ti t im e Figure 11-2. Matching Product Characteristics with Target Market Needs and Wants City Marketing Advertising Market Research Pricing Sales Strategy Customer Support Distribution Media Planning Public Relations Figure 11-3. Aspects of Marketing