The opportunities and challenges facing housing lenders and real estate agents across ethnic subcultures
Many ethnic respondents do not like renting homes. They have a desire to own their own homes, and this is a good opportunity which the firm needs to exploit. Most respondents from the surveyed ethnic groups dream of owning their own homes. They need more information on appropriate housing products that satisfy their needs. Many people in the country seem to have a lot of knowledge about home buying. The firm stands to benefit from this if it formulates appropriate strategies to help it achieve its interests in the market. More potential ethnic homebuyers will be interested in buying homes if they get adequate information on homeownership. The firm needs to partner with lenders to come up with effective strategies that encourage more ethnic buyers to purchase homes (Graham, 2010, p. 89).
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The firm needs to educate more potential customers about the benefits of owning a home. 53% of African American respondents in the survey thought that owning a home is a safe investment. This shows that they are not convinced that homeownership brings positive returns. Many Spanish Hispanic respondents surveyed thought that for one to get a mortgage, he or she needs to accept a 30-year commitment. Many respondents do not understand the process which a prospective buyer needs to follow before purchasing a home. This shows that there is a gap in knowledge that needs to be filled to change customers’ perceptions. Real estate firms need to improve the way they reach out to potential home buyers to enable them to win their confidence more effectively. They also need to change perceptions that the process is discriminative to encourage more ethnic buyers to purchase homes. This will make buyers have more favorable perceptions of homeownership (Graham, 2010, p. 94).
An overall marketing strategy for targeting African Americans, English Hispanics, Spanish Hispanics
The firm needs to encourage more African Americans to invest in homes because this is a safe form of investment that guarantees positive returns in the long run. It needs to focus on young African American families to make them see the benefits of owning their own homes. A good number of African Americans have adequate knowledge of home buying procedures. However, it needs to change perceptions in this population segment to ensure potential customers do not see home buying as a complex undertaking. This will help the firm attract more home buyers.
A majority of English Hispanics who participated in the survey feel that owning a home is a safe investment. They also desire to own their own homes. The firm needs to educate more potential buyers on procedures involved in purchasing homes in this market segment. 42% of respondents from this ethnic group still think that lending firms are compelled by the law to provide the best possible rates on loans. However, the marketing approach used needs to strengthen the belief of potential homebuyers in this segment. They need to understand the process is not discriminative. This will encourage them to purchase their own homes (Hawkins, Mothersbaugh & Best, 2010, p. 67).
Spanish Hispanics have favorable attitudes toward homeownership. A good number of those surveyed have a dream of purchasing their own homes in the future. They also understand that information on home buying is published in more than one language. However, they seem to have little knowledge of crucial home buying procedures every client needs to satisfy. Many respondents in this demographic do not understand the process of home buying. Potential customers in this market segment need to be educated more on home buying procedures. They need to understand the legal requirements they need to satisfy before they become homeowners (Hawkins, Mothersbaugh & Best, 2010, p. 68).
Advertising campaigns including over-all positioning strategy and core theme, key advertising copy points, visual elements, and key media outlets for African Americans, English Hispanics, Spanish Hispanics
Home buying is a safe investment that guarantees positive economic returns in the future. Customers in this segment need messages that make them more knowledgeable on different home buying procedures which real estate firms need to fulfill before they sell any home. Billboards and flyers can be used to promote housing products that are suitable for homebuyers in this market segment. The key media outlets that can be used include community radio stations, TV stations, specific magazines, and websites. Advertising campaigns can be more effective if they focus on specific media that have large audiences from this population segment (Kolb, 2008, p. 76).
Potential buyers need to be told that purchasing homes will help them fulfill long term objectives in their lives. They need to be assured that homeownership makes people more prosperous and improves their living standards. Advertising should focus on family welfare, happiness, and life in good neighborhoods that have vital social amenities. Flyers, billboards, and posters are effective visual elements likely to capture the attention of many potential clients in this market segment. The main media outlets that should be used for this population segment include mainstream TV channels, community FM stations, websites, and specific magazines (Kolb, 2008, p. 79).
Potential buyers need to be informed that home buying will make it easy for them to settle in the country. Advertising needs to be in Spanish and should make them aware that homeownership will enable them to achieve their dreams in the country. Electronic signs, billboards, and flyers were done in Spanish close to dominant Spanish Hispanic communities will have an effective impact. Key media outlets to be used include Spanish radio stations, TV stations that have large numbers of Hispanic viewers. Spanish publications, which are widely circulated, can also be used (Kolb, 2008, p. 83).
Training materials for lenders and real estate agents to enhance their interactions with consumers from a various ethnic background
Lenders need to develop housing products that make African Americans view investing in homes as beneficial to their long term prospects. They need to develop housing products that guarantee English Hispanics a chance to live in multicultural neighborhoods. Lenders need to encourage more Spanish Hispanics to purchase homes that enable them to bring up their families in secure environments. They should also consider reducing interest rates charged on mortgages to encourage all potential ethnic buyers to purchase homes. This will enable them to simplify home buying processes to strengthen home buyers’ confidence (Bradley, 2007, p. 58).
Real estate agents need to improve their marketing approaches to make more African Americans invest in homes. They also need to educate more Spanish Hispanic buyers on crucial home buying processes to make them more knowledgeable. They need to develop literature that educates Spanish Hispanic home buyers on all processes involved in purchasing homes. Real estate agents need to come up with effective strategies that encourage English Hispanics that home buying processes are not discriminative. They need to organize forums with potential English Hispanic buyers to understand their concerns (Bradley, 2007, p. 59).
Bradley, N. (2007). Marketing research: Tools and techniques. Oxford: Oxford University Press.
Graham, J. (2010). Critical thinking in consumer behavior: Cases and experiential exercises, (2nd ed.). Boston, MA: Prentice Hall.
Hawkins, D.I., Mothersbaugh, D. I., & Best, R.J. (2010). Consumer behavior: Building marketing strategy, (11th ed.). Boston, MA: McGraw Hill.
Kolb, B. (2008). Marketing research: A practical approach. London: Sage Publications.