Tapping the Ethnic Housing Market Essay
The Biggest opportunities and challenges that lenders and real estate faced through the three ethnicities surveyed, African American, English Hispanic and Spanish Hispanic, is the feeling of ownership among these segments that is between the 79 and 82% (Table A) of the population surveyed (Hawkins & Mothersbaugh, 2010), the lack of knowledge when buying a home, and lack of confidence in the process. Those three facts open opportunities to lenders and real estates to position their products, to better serve each segments needs and desires, trough the appropriate education to the each segment, a superior understanding of it life-style, and subculture structure.
Overall Marketing Strategy
In order to formulate an operational Marketing strategy to the three ethnicities surveyed, African American, English Hispanic and Spanish Hispanic, each group would require a marketing team that understand, faced and identify the exclusive needs, knowledge and confidence over the home buying process that each group segment have. (Hawkins & Mothersbaugh, 2010)
The marketing strategy for African Americans would be to target their life-style since 82% of the population surveyed will buy a home based on the feeling of ownership and because 67% (Hawkins & Mothersbaugh, 2010) of the population have always dream with buying a home and thinks that renting is not good. Also, according with Table B on the book only 34% of the African American population surveyed understand that the buyer does not pay the professional fees of the real estate and only 36%, knows that housing lender is not require by law to give the best possible rate on loans. As it is shown in Table C the lower 23% (Hawkins & Mothersbaugh, 2010) of population understand the process and 25% of them believe the process is to complex. (Hawkins & Mothersbaugh, 2010)
English Hispanic, share some likeness as African Americas, since the 82% of the population will buy a home because of the feeling of ownership, other strong reason is that 77% (Hawkins & Mothersbaugh, 2010) feel renting is bad and have always dream of buying a home. Tables B and C, shown their knowledge and confidence over the process is higher among African American, and Spanish Hispanic, this could be product of the path of acculturation this segment have had over the years. The main strategy for African American and English Hispanic will be understand their family values, life experiences and provide the proper tools and education through free seminars in regards of the Lender products and the Real Estate Market alternatives available to them.
Spanish Hispanic segment is the largest among the other 3 segments due to the diversity of nationalities as Cuban, Mexican, Puerto Rican, South or Central Americans (Hawkins & Mothersbaugh, 2010), are part of this group, they hold the lowest interest rate on buying a home with only a 79% of population concerned on the ownership feeling (Hawkins & Mothersbaugh, 2010), likewise only 60% of the population knows that the require documentation is also available in their language, making this segment the least confidence, since only 18% (Hawkins & Mothersbaugh, 2010) of the population surveyed understand the process. The strategy here will have put the hardest work, educating and gaining the population trust which is brand loyal, and comprehendible on their-own language (Hawkins & Mothersbaugh, 2010).
The key advertising points would be to focus the on the subculture lieu of just simply replacing Caucasian models with African American ones, using reliable African American websites such as BlackVoices.com and Blackplanet.com (Hawkins & Mothersbaugh, 2010) while educating them about the real estate process.
The influence point in this segment would be to focus on the strong feeling of ownership, while educating them about the real estate process, using the
radio, a proven effective medium in targeting Hispanics, television, print media and some Internet advertising (Hawkins & Mothersbaugh, 2010)
The positioning strategy would be to close the communication barrier in this segment, allowing them to easily adapt and understand the requirements and consumption habits of the real estate market in The U.S. Marketing events that focuses on educating will help to build brand loyalty, which is important to them (Hawkins & Mothersbaugh, 2010). The key media outlets will be television, radio and direct mail in Spanish.
Lenders and Real Estate Agent need to understand the different needs among the three ethnicities surveyed, African American, English Hispanic and Spanish Hispanic, in order to better understand, serve, and building a more educated community though verbal and written material focus and targeted to each segments, that will help the Lenders and Real Estate Agents building and gaining the trust and credibility within the community.
Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer Behavior. MacGraw-Hill Irwin.
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