Finance and Mortgage Broking Exercise 2

This project is a marketing or business plan that would guide the company to ascertain different ways or techniques to maximises the overall growth and development possibility.

FINANCE AND
MORTGAGE BROKING
Exercise 2

EXECUTIVE SUMMARY
The organization is a mortgage broking firm engaged in providing the finance and
mortgage related services in Australia. This project is a marketing or business plan that would
guide the company to ascertain different ways or techniques to maximises the overall growth and
development possibility. All different strategies on the basis of the strategic evaluation will be
summarises under this project. Segmentation, targeting and positioning would allow
implementing the whole plan. In context to any plan implementation is the most significant stage
and proper monitoring and control would be done so that best results against the plan could have
been generated.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Situation Analysis........................................................................................................................4
Marketing Goal............................................................................................................................7
Marketing strategy.......................................................................................................................8
Market Segmentation...................................................................................................................9
Market Positioning.......................................................................................................................9
Marketing Tactics......................................................................................................................10
Research.....................................................................................................................................11
Consumer Behaviour.................................................................................................................12
Marketing Budget......................................................................................................................12
Evaluation..................................................................................................................................13
Implementation of Plan..............................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Mortgage Brokering Firms in the present era, is the most demandable and also highly
competitive business. In order to maintain and expand the business in the Australian market or
all over the world the company need to understand the pros and cons of the marketing strategy.
This report will describe the situational analysis and the marketing goal, strategy and tactics in
order to implement it within the business.
MAIN BODY
Situation Analysis
Situation Analysis is a process that is about to assess and analysis the whole situation.
This involve tools like PEST Analysis, SWOT Analysis, competitive analysis and the market
analysis. All these four models would allow the business entity to formulate the most suitable
plan for the business operations.
SWOT Analysis
This is a strategic choice that is about to assess the internal situation of the business
entity. This is an internal assessment about the strength, weakness, opportunities and threats
associated with the business entity.
Strength:
 Human resource management is dynamic.
 Financial management is sustainable for the company.
 Marketing practices are dynamic and engaging.
 Training and development campaigns of company re well stable.
Weakness:
 Inflation in economy.
 Market is less informative.
 Not much scope of innovation and product development.
Opportunities:

 Social media marketing.
 Business expansion opportunity.
 Diversification strategy.
Threat:
 Competition in the market.
PEST Analysis
PEST Analysis is an external factor analysis that demonstrates about all different external
factors influence the business operations of the organisation. This tool of external analysis assess
factors like political, economic, social and technological that can favour the business entity
achieving the best suitable strategic choice or direction empower the organisation to meet up all
different business objectives.
Political factor: Political factor demonstrate the political situation of the business entity. This
involves the policies and strategies government is looking for in order to maximise the overall
growth of the finance sector. Mortgage firm management can evaluate the policies formulated by
the government so that best suitable strategic choices could have been adopted to achieve the
overall objectives of the business (Guzman, Paswan and Tripathy, 2019). In Australia
government hold a very stable position or situation that motivate the organisation to form the
long term policies and strategies related to business so that bet possible growth opportunities
could have been achieved by the company.
Economic factor: is another crucial factor or element that influences the business policies or
practices. This involves the economic situation and position of the country. The per capita
income of Australia is well effective that allow the people to go and explore options like
mortgage and other such financial options. The buying capacity of people allow and motivate
them to invest and buy long term projects that can provide the heavy return to the stakeholder.
Inflation in the Australia economy is also under well controlled that also motivate the people to
invest heavily in various projects in against to undertake the best possible return and growth
opportunities at an individual level. Economic condition of the Australia is very strong that also

become one of the reason company get to formulate the long term policies and strategies to
maximise the overall growth and development of the country.
Social factor: belong to the society, its mindset, culture, tradition, values, beliefs of people and
many such areas that can support the people to achieve the best possible growth in the market.
People in Australia contain a mindset where they are engaged in investing and maximising the
value of the funds. Also the education background of people makes them more aware about the
finances and mortgage like options (Greene and Hopp, 2017). All these allow the people to take
an interest towards the finance and mortgage market. It can state that the more engagement of the
people towards the market make this more stagnant in favour the business entiy to maximises the
overall growth possibility and potential in the respective market.
Technological factor: is another crucial factor or element that can influence the overall growth
possibility of the finance and mortgage sector. Australia is well developed and advanced in
respect to its technical advancement and growth. This allow the company to utilise all the
technical advancement and development in developing different policies so that growth of the
company could have been maximised.
The above stated factors or elements influence the organisation and its strategic choices
to enhance and achieve the overall business objectives.
Competitive analysis
Financial and mortgage market is very progressive and contain a heavy product demand
in the market. The demand and growth possibility of the market create a huge possibility for
boosting up the market competition. This is demonstrated that the competition is aggressive in
nature that allows the stakeholders for taking up the competitive advantage by entering into the
market. In Australia people are very keen to make strong decisions about taking up the best level
of decision related to finance and mortgage sector. The heavy demand in the market always
influences the market and its stakeholder to ascertain the overall demand in the market. The
profit margin is also aggressive in case of the finance and mortgage sector that also improve the
competition level in the market (Fedorova and et.al., 2020). It can demonstrate that the strength
of the competitor is always associated with the financial resource and its management related
practices. Less innovation is the key weakness associated with the competitor group part of the
market. The resource management can be identified as a similarity between the own business
model and the practice run by the competitors in the same market.

Market analysis
Market analysis is a process indicates about to analysis the finance and mortgage market.
The market is very growing as the demand in Australia related to the finance and mortgage
products are really huge that create more competition in the respective market. The market
growth is about the demand of the product in the market. Market expansion opportunity is also
available in the finance and mortgage sector as this favour the company to take the competitive
advantage by delivering more innovative practices (Goldstein, Jiang and Karolyi, 2019). The
market expansion opportunity is directly associated with launching of a new product or service.
This is about to launch a new product or service that can provide the opportunity to the
organisation for expanding the business at an international level. The market size of the finance
and mortgage market is approximately 3.4 Billion Aus Dollar. This is a huge market size that
clearly indicates about the immense level of market demand associated with the sector.
Marketing Goal
The marketing goal of the Mortgage Brokering Firm that the business wants to achieve within
the 12 months of time period and such goals are as follow:
 The firm expect the achievement of 20% increase in the conversion rate from enquiry to
settlement. This is being calculated by (final value – initial value/ initial value* 100).
 In the time span of 12 months, the firm would expect to be one of the best financial and
mortgage advisors to the clients all over the Australia.
 The firm has been expecting the 20% to 30% increment in the client base as it is seeming
as the most realistic one.
 Not only that, the company also expect the growth rate of 10% in their profitability and
4.2% growth rate staff numbers.
 The firm wants to expand its mortgage brokering services by including the services such
as money management, estate planning, tax advice and financial consultation.
 Firm also expect to implement online channel of distribution such as own websites and
social media platforms for marketing purpose.
 The 5% increase in new enquiry and 15% increase in repeat business is being expected
by the firm (Pearson, 2017).

Marketing strategy
Marketing is a practice that is about to promote the products and services associated with
the business entity. This involve various practices and strategic choices that can demonstrate in
the following points.
Market penetration: Market penetration is an opportunity that is about to penetrate the new
market with support of the existing product portfolio of the company. This involve offering the
same product dealing by the company in the new market. This is an important strategic choice
available for the organisation to undertake the competitive advantage in the respective dealing
market.
Market development: Market development is an option in which company try to increase the
existing sale of company in the existing market. This involve options like discount strategy and
other such policies. This is an important strategic choice that favours the company to take on the
competitive edge in the existing dealing market.
Product development: Product development is a strategic choice that involve lancing a new
product in the existing dealing market. This is an important strategic choice that is about to
improve the product portfolio of company.
Diversification: This is a strategy where company enter a new market with some new products.
Retrenchment: is about to retrench the specific customer base in the whole market. This is an
important strategic choice available with the company. This is about to segregate the particular
customer base in the whole market.
Niche marketing strategy: This is a strategy that is about to identify the group of niche
customers to sale the products offer by the company (Misback, 2019). This is a crucial strategic
choice that allows the company to identify the potential customers and sale products offer by
business entity.
New product opportunity: This is about to introduce the product in fron of the existing
customer. This is done with support of the innovation and product development strategy.
Matching services offered to chosen market segment: the market segment is finance and
mortgage and this is totally belonging to such a part. This is important to clear the strategic
choice of the company.
Customer acquisition via customer retention: Company can hold the customer acquisition
strategy along with the retention. This involves different discount options and other such choices.

Market Segmentation
Segmenting the total market into the sub-market and then into the target market is the
process involved in the marketing segmentation. The total market of the Mortgage Brokering
Firm is Australia and the company divide the Australian market into the sub market on the basis
of occupation of the borrower and clients. Basically, there are various base available such as loan
type required etc. for the sub-market category but for this Mortgage Brokering firm the best
market segmentation strategy is occupation. And now the target market of the company includes
the clients having professional degree such as accountants, doctors, financial planners, engineers,
solicitors, businesses etc. The ideal client of the firm includes the small and mid-size business
clients for whom the company provides the best broking products and services so that they can
borrow money for their business operations and expansions. The small and medium business are
the one to whom the money is required for the purpose of their business operations and business
loans are the most suitable options for them. With the occupational segmentation the mortgage
firms will able to provide its specialised product such as personal and business loans to all its
professional clients (Lee, 2017).
Market Positioning
The Mortgage Brokering Firm will become the most powerful brand in the Australian
market because of their home loans product to the clients that wants to purchase residential and
commercial property. Because of the dynamic and uncertain environment of the Australian
market, the sales of the home’s changes over the period of time and the impact of which the
brokerage firms also face difficulty. But the continuous increase in the brokers and brokerage
firm, this indicate that there is quiet high competition exist in this industry. The Mortgage
Brokering Firm before providing the mortgage product and services to their clients first look out
what security it will provided to them against the lending. As the firms provides all types of
loans such as home loan, personal loan, gold loan, business loan etc. as per their client needs and
requirements. So, the branding of the firm includes the image of home and property with two
hands up and down protecting that property for the clients. This brand logo also has a quote such
as “The way to fulfil your dream” which reflect the brand position in the market (Sofi, 2017).

Marketing Tactics
This section of the marketing and business plan reflects the product, service, pricing,
distribution, promotion and people strategy that would be adopt by the Mortgage Brokering
Firms in order to achieve their marketing goals within a period of 12 months.
Product Strategy
The finance product of the firms includes the loans which they offer to their professional
clients such as businesses man, doctors, solicitors, accountants etc. The product the firm will
offer to them are loans such as commercial loans, business loans, investment loans residential
loans etc so that they are able to buy the residential and commercial property for their personal
and professional use. There are various brokers are available that offer the same products but the
unique about Mortgage Brokering firm is that they provide the proper guidance of each
brokering options (Bant and Paterson, 2020).
Service Strategy
The Firm will provide the full brokerage service to their regular clients in order to
increase customer retention which involve the money management and financial consultation at
their doorstep. The impact of which the clients will not lead to come to the office and client will
remain happy and satisfied. Rather than arranging the meeting at hotel, the firm will send their
advisor and broker to their client’s workplace or homeplace.
Pricing Strategy
The firm will charge brokerage fees from the clients and receive commission from the
banks and financial institution for selling their loan products. The average lender commission
rate includes upfront commission of 0.7% and trail commission of 0.275% including GST. The
average brokerage fees charge by the firm is $10-$30 from each client which is depends upon the
size of the investment. The company will not pay any referral fees for the introduction of
strategic alliance partner. And the average mortgage size in Australia as per the ABS is $500000
in the year 2019 (Blundell-Wignall, Atkinson and Roulet, 2018).
Distribution Strategy
The distribution channel for providing the financial services to the ultimate clients is
include face to face or via use of mobile phones. Basically, the company have public office as
well as private interview rooms for the discussion related to the mortgage broking options. But in
case, if the clients such as big companies’ managers have to keep such an information

confidential the firm will use client’s doorstep channel for meetings and interviews. This is much
beneficial to know the client’s intention behind loan acquisition via face-to-face interaction at
their workplace.
Promotional Strategy
In order to promote financial product and services to the clients and target market the
Mortgage Brokering Firm will use the social media platforms such as Instagram, Facebook,
Twitter, YouTube etc. And for this the firm will post various photos and videos related to their
products and services including their specification and benefits over these platforms. Not only
that, the company will launch their own websites to interact with large number of clients. This
will ultimately increase their brand image and sales. The firm will also develop the relationship
with its clients by using the feedback given by them on the comment section of the posts. The
firm will also use the Direct mail letters strategy to promote their business services (Stewart,
Swain and Fairweather, 2019).
People Strategy
For proper attainment of the online channel of distribution and for doing appropriate face
to face meeting with the clients the firm need to provide the personality development and digital
marketing tools training to their staffs. The new marketing initiatives will be communicated
directly to the staffs via conducting the meetings. The proper training and feedback will be
provided to the employees and brokers so that they can perform their task properly even in this
dynamic environment (Carney, 2021).
Research
This section of marketing plan will define the needs and preferences of the consumers and
the mortgage brokering trend in the economy and Australian market.
Consumer Research
The needs, preferences and wants of the consumers regarding the mortgage will changes
over the period of time and the firm that will changes according to their consumers are the most
successful. So, in order to become successful, the Mortgage Brokering firm will analyse the
customer feedback over the social networking sites. The consumers always react and comment
over the post and advertisement of the firms and from their onwards the marketing team of the
firm will contact with the consumers and try to find out their choices and needs.

Market Research
For business and professional, applying for loans for their business expansion and
purchasing residential and commercial property is most common in present era. The firm will
visualize the demand and supply of the property in the Australian market with their sales price in
order to manage their business properly. It is because if the sales of the property and business
expansion strategy will go down, it will directly decrease the demand of their brokering services.
Not only that, the company will also put proper insight over the income stability and security
property of their clients in order to analyse their ability to apply for and acquire the loans and
mortgage (Ping, 2017).
Consumer Behaviour
The purchase of mortgage products and services by the consumers depends mainly on the
interest rates and the brokerage fees. Not only that the buying and spending pattern of the
consumer also reflects it behaviour towards the mortgage. It is obvious that the poor people of
the Australia having unstable and no income will not able to buy property and take loan for the
same. And on the other hand, rich personnel and business man do not get affected by their
spending pattern. So, for the Mortgage Brokering Firms the most important is analysing the
behaviour of the middle-class people that have ability but because of lack of information they are
unable to fulfil their home purchase dreams. The borrowers will choose their services because
the firm will provide them the best option of the mortgage such as No Deposit Home Loan to the
clients that do not have deposit and also have unstable income. Despite, the firm also provides
the advice related to the money management and tax including the service related to management
of income and expenses. This unique service by the firm will attract all type of borrowers
towards the brokering firm (Mazzarol and Reboud, 2020).
Marketing Budget
The marketing budget of the Mortgage Brokering Firms are as follow:
Particulars Amounts
Total Fees for incorporating the budgets $7500
Insurance Policy, permits and business license fees $2500
Acquisition of office facility $40000

Cost of equipping the office:
Furniture $200
Filing Cabins $400
Safety Gadgets $2600
Telephones and Fax machines $1500
Computers and other electronic items $2000
Application of CRM and Payroll application $10500
Amount of working capital $50000
Cost of launching the official websites $600
Cost of managing the social media platforms $300
Additional expenditures such as (Brokerage events, business cards,
workshops etc.)
$2500
Miscellaneous $1000
Total $121600
Evaluation
This is a step of the marketing and business plan in which the indicator will be consider on
the basis of which the Mortgage Brokering Firm will identify and measure the performance and
result of the plan.
 Market reaction: In order to measure their result and outcome of the marketing plan the
firm will analyse the reaction of their competitors and if the competitors try to copy them.
Then it clearly means that the firm are doing well and their marketing plan is successful.
 Customer Response: Customer responses over the brokerage options and services on the
various post and videos launch by the firm on social media platforms is also one of the
indicators. With this they are able to identify that their marketing plan is working in a
positive or negative way (Brummer, 2020).
 Sales Performance: This is an indicator of performance measurement with the help of
which they can measure that whether their marketing plan is making sales increment or
not. The increase in the sales of financial product and services would increase the
commission and brokerage fees of the firm would result into the better profitability.

 Cost-per-acquisition: The low marketing cost per acquisition of financial products and
services by the clients would result positive implications of the products and services.
And it will get reduced if the firms profit margin will improve.
 Return on Investment: The investment made by the firm over the marketing of various
financial products and services and if the return on such an investment is high. This
clearly means that the marketing plan of the brokering firm is successful (Lu, 2018).
Implementation of Plan
Strategy Action Who When
Automation strategy For this the firm need
to identify and
analyse the feedback
of the clients needs
and wants post by
them over social
media platforms. The
company can also
need to provide the
best loan option to the
clients over the online
channel only.
The marketing team
and managers are
responsible for
managing the social
media platforms and
daily posts and
feedbacks of content.
6 months
Providing doorstep
and clients at
workplace service.
For this, the company
brokers need to move
to regular client’s
workplace and
doorstep for managing
meetings and
providing best
services related to the
money management
and tax advices. This
The brokers are
responsible for this
task in a mortgage
brokerage firms.
2 months

also require the proper
recommendation of
best and appropriate
mortgage options to
clients (KARTHIK,
2020).
CONCLUSION
The report concludes the marketing and business plan for the Mortgage Brokering Firm
located in Australia. The report concludes the best marketing strategy and its implementation on
the business. The report also concludes the indicators with the help of which they can measure
the performance and outcome of their marketing and business plan.

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