Continued from part5

Fish such as fish

Telemarketing and direct mail have been the market for subprime, without a lot of resources to mismarketing "A" for consumers. Marketing, with access to the subprime customer lists, and even inspired the lists are able to choose who their embassy. Subprime customers are also more likely to respond to any distortions in direct response marketing subprime direction, even if the list is not perfect. Our experience has shown that brand building was not absolutely necessary to win the sub-prime the economy, lowering barriers to entry. Nevertheless, the market is very crowded place, increases the cost of acquiring new customers.

Internet is also a popular source for South-prime lenders. While many of the head, the sources led to several donors and the amount is often smaller and less predictable, customers are usually motivated. According to Lauren Brown, president of mortgages, St. Louis Park, Minnesota, the Internet, also called "upper class" Bias in a row.

Sources of information about the investigation in 1265 randomly selected New York state ownership (with the exception of Manhattan), the phone expressed that they are actively looking for home loans in the fourth quarter of 2000 indicated that 57 percent of the respondents seemed to subprime Candidates on the basis of their answers to many questions their credit and payment terms. A comparison with the completion of the magazine Forbes believes that sub-prime loans for 10 percent of all mortgages, it is very likely that the sub-prime prospects largely in the phone-response programs in relation to their size in the population of Credit.

Marketing for Survival

In a competitive market, specializing in the strict sense of the word loan category can be highly volatile and cyclical. The economic downturn will easily lead to a business downturn, while radiation can cause the economic recovery unmanageable. Lenders do not know that if they survived at least two economic cycles.

Illustrate this point to subprime lending industry is difficult because the industry is not competitive until the 1990's, was in the last bull market. Nevertheless, the Russian financial crisis, although sudden and short-term, sees the study.

Conti Financial, Hatboro, Pennsylvania; City Financial Corp., Elmsford, New York, First Plus Financial Group and Southern Pacific Funding Corporation, Lake Oswego, Oregon, is one of the biggest specialists in the field of subprime, has grown substantially in the 1990s. Now they are all dead, many of the great survivors of the 19 .905 have been covered be dismantled or dissolved. Households in the economy from 1878 and more diversified in their business, so that only for a short list of survivors who are affected by the situation.

The economically sound marketing plan calls on the evening of business cycles and maximizing revenue per dollar of expenditure on marketing, instead of maximizing the proceeds from each client. Some suggestions: