Friday, May 10, 2013

Mortgage industry- Brand strategy or marketing strategy?

Mortgage Industry: Do I Need a Brand Strategy or Marketing Strategy?





A brand strategy lays the foundation for a marketing strategy…so if you have a marketing strategy without a brand strategy, you probably need both! In the mortgage industry, marketing departments across the country spend a substantial amount of their time, 80% or more, focusing on project managing a plethora of marketing tactics that are designed with the short term focus of driving immediate business. They’re focus is getting the job done, on time and on budget. Certainly, this is reasonable…however in the rush to accomplish these objectives, many times the brand strategy is sacrificed or the brand is non-existent to begin with to provide a foundation for the marketing strategy being implemented.marketing vs branding

In these situations, the brand turns out to be a moving target in the effort and rush to compete with the messaging of the competition, i.e. the competition is saying “x” so we need to let everyone know that not only can we say “x” as well, but we can also say “y” to make ourselves look even better! So it becomes a game of perpetual catch-up and attempts at one-upping the competition, losing your identity (if you had one) in the process.

The only way to solve this is by taking the time to develop your brand to begin with. Done the right way, this brand is something you will truly own because no one else will be able to make the same claims of distinction as you do…and back them up the same way that you do. If you’re a lender, you may think this is next to impossible because your products are many times quite homogenous…but it’s not impossible. For further information on how a brand is developed, I encourage you to read “Moving Beyond Brand X” which was recently published in Mortgage Banking Magazine.

My goal for writing this post is to clearly identify the difference between a brand strategy and a marketing strategy.

Download White Paper "Branding in the Mortgage Industry"

What’s the difference between a brand strategy and a marketing strategy?


A brand is your most valuable corporate asset…it’s the entire experience your customers and prospects have with your company, much more than your corporate name or logo. The brand is what defines who you are, how you’re different and why you exist and is conveyed in the day-to-day interactions you have with your market. The answer to these questions are not simple…they require deep introspection to really get at the core of your company, the essence if you will, that defines you in the market place.

Once your brand is developed, then a brand strategy is the next step. Think of your brand as a person with a distinct personality. Describe that person and convey these traits in everything you do. For example, you’ll communicate your brand strategy through your pricing strategy, name, corporate identity, messages, collateral and your online properties.

Your brand strategy takes into consideration the following items:

  • How you will communicate with your target audience: Know your target audiences motivations for selecting your product or service so that you can persuade them rationally but motivate them emotionally with your messaging.
  • Where you will communicate your messages: Be aware of where your target audience is, i.e. where they get information to meet their needs whether that be YouTube, specific print media, etc. and position yourself with strength in the right places with an understanding of where to place emphasis from a time and investment standpoint.
  • To whom you will communicate your messages: Understand the lives of your target audience…their concerns, aspirations, personalities, behaviors and lifestyles. This will help you shape your messages.
  • Evaluate Success: Measure how far you’ve been able to “move the needle” with respect to key, preset brand metrics. These may include items like familiarity, differentiation, credibility, preference and customer acquisition.

Now, to isolate the difference between a brand strategy and a marketing strategy, a marketing strategy includes efficient ways to reach your target audience and encourage them to purchase your products or services. Let’s take a look at the elements of a strategy…

  • Goals: Setting realistic sales and profit goals is part of a good marketing strategy. Other goals could include number of new website visitors on a monthly basis, number of new Facebook followers and more. Your brand “greases the path” for achieving these goals.
  • Target Audience: Your target audience should be made up only of the companies or consumers that are most likely to buy from you. Do not be too broad and describe them in as great of detail as you can.
  • SWOT Analysis: A solid marketing strategy includes an honest review of your strengths, weaknesses, opportunities and threats. The results of this analysis will guide your strategy.
  • Competitive Review: As Sun Tzu states in “The Art of War,” “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” Accordingly, reviewing your top 3 to 5 key competitors, what their key messages are, what venues they use, tactics, etc. This information allows you to develop your messaging appropriately while keeping it in line with your very own brand and also determine in which similar areas and ways you may wish to compete.
  • Schedule of Activities: Getting the word out about your products or services and educating your target audience about them is very important to your strategy. These activities will include marketing, public relations, events (exhibitions for example), print advertising, online and much more.
  • Monitor Results: This is too often overlooked and done on the fly instead of planned in advance. While you develop your strategy, be sure to include appropriate tracking mechanisms to determine whether or not your marketing strategy is working. Without this element of the strategy, the goals you set are no more than empty words.

Was this information helpful? Let me know in the comments section below!

Download White Paper "Branding in the Mortgage Industry"

Seroka is where CEO’s, CMO’s and anyone responsible for their corporate brand and communications strategies in the mortgage industry can come to receive useful information, advice, insights and inspiration for growing their business.

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