Showing posts with label marketing. Show all posts
Showing posts with label marketing. Show all posts

Tuesday, January 4, 2011

All I want to do is buy a house!

There was a time not long ago when it seemed as simple as a desire to buy a house. Sure you still had to apply for a loan, but that seemed to be a breeze, even it the person didn't have "it" all together, e.g., many lenders "bent" the rules a little here and a lot there -- remember? Well, now with all that has happened with all this mortgage mess, the foreclosures, the "underwater" homes, essential, the bursting of the proverbial housing bubble, this has done a 180 degree turn, and to buy a house nowadays you have to be ready to show the lender "the money," literally.

I have had to explain the procedures time and again to buyers who keep reminding me that this isn't the way they did it just a few years ago. The odd thing about these constant reminders is that people who bought a few years back seem to have grown used to just having the paperwork to sign, and are a bit miffed by the simple suggestion that they need to provide proof of just about everything. "Why do I have to do that?" came back a question from a reluctant buyer not long ago. Well, the rules to buy a house have gone back to the "normal" way it once was. In other words, you have to show the bank all that you say, and then, you have to be able to prove as much, e.g., where is your money for the down payment, why you have so many inquiries on your otherwise perfect (780 fico) credit report, or why your salary checks (stubs) have any discrepancy -- oh, and let's not forget that your w-2's and 1040's have to be "audited" too!

These requirements are nothing new. As a matter of fact many of these same requirements were in place before, albeit relaxed because everyone wanted to make a deal, and the deal-makers (the lenders), wanted the loans to pass certain audits to be able to package them into mortgage-backed securities that someone else (investors) would be buying/investing in. Well, that pool of investors virtually dried up, and now the only game in town is a pseudo-governmental secondary market, and this one is checking all the paperwork, and making sure the "i's" are dotted and the "t's" crossed -- literally.

So, you want to buy a house? The best thing you could do, as a buyer, is to be ready, willing and ABLE. And this means having the money in the bank -- you ought to have at a minimum a 3.5% of the purchase price for the down payment (for FHA program), plus another 3% of the same purchase price for the expected closing costs. Sure you will be able to negotiate many things, and in some cases "Homepath" sales, you might even get your closing costs paid (credited), and some bonuses if you close during some of their promotional periods. But, don't be too surprised if you have to have everything "squeaky clean" in regards to how you provide your details and the paperwork to support it.

Buying a house isn't any more complicated than it once was, it is now more rigidly reviewed, so, be prepared to give as much as the lender wants, wait as long as the lender takes, and work with all that is put on you to do. You want their money to buy; you now have to play by their new rules. The flip side is that you'll get fantastic values and the best interest rates available for mortgages. So, don't fret, just grin and bear it, oh, and put it in perspective – you’ll buy the house you can afford and enjoy for years to come!

Friday, May 21, 2010

Se Habla Español - Working With Latinos

As the debate on immigration reform heats up in the political arena, and the numbers of raids by ICE and reports of these in the news continue to give an alarming glimpses of a plight prevalent to and affecting a large segment of the Latino community, an obvious fact is sorely missing from most reports, and that is that Latinos, whether here legally or not, represent a huge economic force in all communities where they reside. After all, the money they earn allows them to pay rent, buy cars, put food on the table, support worthy causes, and a number of other things that make some industries show impressive profits, and a reason why many keep paying for promotions in the media catering to this group – in their native language, “Español”. Let’s consider what is important to work this market, because, as the saying goes, “…if you can’t beat them, join them…”

Evaluating how best to approach the Latino market starts no different than how one might approach any other market being served. The main difference is language. However, it is also important to note that not all Latinos who speak Spanish or have brown skin are of “Mexican” descent. This belief is a gross mistake made by many a well-meaning advertiser. The term “Latino” is a broad-brush stroke used to denote this group. Keep in mind though, that national pride plays into people’s psyche and is a deeply rooted and unforgiving concept, particularly if you make such errors in your marketing theme.

What else is important besides political correctness on addressing folks in this group? The U.S. Latino market is comprised of natives from over 20 countries from Central and South America, the Caribbean and Spain, with a large percentage of Mexican descent. Any marketing to reach this diverse group, where customs differ, is more than just translating exiting materials or messages. It is more about conveying a sales message and theme apropos to the respective segments within the larger group, e.g., Mexican, Salvadorian, Cuban, etc., perhaps in Spanish. The question is how can you do this for such a divergent group? Any notion to reach all Latinos with a uniform message is misguided. The best you could hope for is being effective in percentages.

Although Latinos share a common language, albeit with certain differences in dialects and/or pronunciation, the diversity of their origins, the assimilation, the education level, and the social economic level all affect attempts to lump your marketing message into one global campaign. Making things a bit more interesting is the next generation of Latinos, where yet another factor surfaces, that of communicating a specifically targeted message predominantly in English interspersed with Spanish – “Spanglish,” if you will.

Advertisers and media companies will highlight the usual breakdowns found in “regular” markets, e.g., 18-35 year olds, upper middle class, level of education, etc., to explain their target markets, as in the media of choice, radio. However, there are varying degrees of receptivity among any such demographics. For instance, Mexican 18-35 year olds may be inclined to listen to a musical genre known as "tex-mex or Banda," Salvadorians in that age group may lean towards Reaggeton or Salsa. Thus, if you want to reach one group you may have to advertise in one type of station, and do something different for another group. No one type of media will work well for all Latinos, so choosing the target group carefully, evaluating its potential return on investment (ROI), is the place to start.

What are the best communication channels that will reach the highest segment of the Latino population? With the advent of the worldwide web, many are resorting to the Internet. However, Latinos as a percentage, represent a very small segment of Internet connected groups, opting instead to word of mouth advertising or television or radio, unless you’re talking about the next generation younger segment, who is mostly connected via wireless devices, e.g., I-phone, etc. Surprisingly, print advertising is among the least effective methods, yet popular still for the publisher, as there are plenty of weekly papers catering to the Latinos with news content, albeit a weak choice for a cornerstone to any effective marketing strategy. In order of importance and reach, and possibly cost, and perhaps effectiveness, we have:

Television (49% of U.S. Hispanics watch television)
Radio (The entire family may listen to one station and tune in, on average, 26 - 30 hours per week)
Print (Minority newspapers are an inseparable part of the local minority community.)
Event Marketing (including sponsorships) (Events create excitement, reinforce image, and allow you to hand-deliver your marketing message face-to-face or in a venue where this is permitted.)
Direct Response (including telephone marketing) (Latino households are 3.5 times more likely to respond to a direct mail solicitation than a non-Hispanic household; and telephone solicitations are still an effective way to reach this group, provided it is done in a professional manner and in their native language)
Seminars, Workshops & Presentations (Although this approach sometimes does not fare well, complemented with the other types of promotions, it is a highly effective method to capture client for future business development)

As is true in any marketing campaign, one can certainly spend much more money and diversify to their advertiser’s content. However, any prudent businessperson will do a bit more research to the select targets within the larger Latino population they want to reach, e.g., studying buying habits, income levels, brand loyalty, and other such matrix, and then conclude on the selected group, and choose the best media to reach it. Test marketing on a smaller scale is always appropriate and a prudent thing to do, in spite of what any of the representatives may try to tell you.

Obviously novice entrants will grovel along doing what well-meaning media executives may suggest, believing that they ought to know, they work in that venue. However, many such executives are little more than poorly trained order takers, and culturally relevant marketing is more than just running a promotion that was effective in another venue or language, expecting the same level of success. There are countless examples of failed best intentions. For instance, a classic is the “Nova” (one of GM’s model cars). The term means “Doesn’t Go” in any Spanish-speaking country, so to market something that “doesn’t go” even with the fanciest of pieces or promos isn’t going to change that – RESULTS, a promotional flop.

Marketing that gets results comes from a careful study of the Latino subgroup one is targeting (after careful research of the buying power of that group, of course), and establishing a promotional campaign that is sensitive to what is important to that group. Obviously, this will mean an investment, but at the end of the day, the ROI will certainly leave a nice positive number on your balance sheet with increasing numbers of loyal buyers, and with a little care, a repeating trend with their referrals.

Oh, and let’s not forget, the growing numbers in their up and coming offspring, even though they may have transformed the language, still, Se Habla Español.