Alex Oanono MK401 Strategic and Creative Planning Assignment #2 Summer 1, 2012 Professor Quintal

The Zag Factor

Whats the worst part of having a mortgage? Paying it. Before 2008, bankers didnt ask questions and people were being offered loans like candy. Americans had a better chance at the American Dream, a big house, 2 kids, 2 cars, and a white picket fence. But, their jobs didnt change; they didnt get richer. Because of this, people had to work that much harder to pay off their mortgages. Eventually, they couldnt keep up, banks werent paid, the stock market crashed in 2008, and now, in 2012, were still in a recession. Why? People dont trust the future. You gotta see it to believe it. Mortgage shoppers and homeowners think, What if I loose my job? What if the economy never gets better? What if we turn into Greece? What if I cant even afford a mortgage? What if I cant live in my American Dream House? From the bankers perspective, they know they messed up. Bankers understand that their careless mortgage brokering and no-questions-asked policies had failed them. So, theyve made it harder to get a loan- they want to know all about you, your assets, liabilities, lifestyle, etc. Mortgages are harder to get, and banks are afraid to offer them. On the other hand, banks had to reclaim countless foreclosed homes, lose money on defaulted loans/ mortgages, and are sitting on a portfolio of houses that wont sell. The banks are itching to cut their lossesthey have a fully stocked inventory of houses and empty vaults. It looks like bankers and homeowners need each other. LendingTree can be the peacemaker between the American Dreamer and the Hungry Banker. LendingTree needs to explain the above to its users. Shoppers need to realize that the American Dream mindset needs to be altered to t the hard economic times of today. Bankers need to befriend the shoppers, and offer the homes they own that once were Dreamy but are now being sold for cheaper prices with reasonable mortgage and loan rates. The American Dream can be reached, but within means. LendingTree will create a calculator (The Reality Checker) that lets shoppers evaluate their lifestyle (all of the new mortgage criteria that bankers look at), and suggests realistic options of what types of homes they should be shopping for, what type of rates they should consider, etc. LendingTree will also have exclusive access into bank portfolios (The Reality) and can further suggest homes owned by banks that are in the price-range/rate-range that the shopper can afford. This will please shoppers by not only enlightening them, but bringing them to the next step in the process of home shopping. Bankers will be delighted to sell homes from their money-draining portfolios.

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LENDING TREE

Step 1: Who are you?

Where do you have the most credibility? Where do you have the most experience? Where does your passion lie?
Online home-mortgage and loan comparisons

Online home-mortgage and loan comparisons

Empowering users to take control of their nancial life by providing them with tools to help them make the right nancial decisions in todays economy.

Step 2: What do you do?

What business are you in?
Banking (Lending Exchange)

Purpose: To help bankers make money off of home loans (among other things) by giving users the tools to request rate offers from banks and compare them. LendingTree makes its money from bankers, not from online users, by way of offering unique and educational tools to online users. -12 words: Help bankers make money by offering users competitive loan/mortgage rate bids.

Step 3: Whats your vision?

What do you want to accomplish in 5, 10, 20 years?
Note: This is a tough vision realize because of the unpredictable future of the economy. 1: Implement the Reality Checker and education efforts. 5: Get people to realize that: We understand they are scared of mortgages because of uncertain futures LendingTree has learned from the past and is taking the step to live the American Dream within our means during the current economy 10: Re-evaluate the current economy and strategy for changes in the market. If the market is still slow, educate the new wave of mortgage shoppers on how to move forward in the economy and stay away from the mentality that caused the housing bubble. 20: (Hopefully, the economy will be strong again.) At this time, people should have gotten ride of the old mindset that caused the housing bubble/market crash in 2008. While we might not be purchasing foreclosed/bank-owned homes, mortgage shoppers will still exist and LendingTree will be the positive role model of mortgage shopping.

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How can you make this vision palpable and exciting?

The Reality Check Calculator Guidance from Robert Kiyosaki Re-vamped website Apps

Step 4: What wave are you riding?

What trend is powering your business? How powerful is it?
The Economic Recession

Very powerful. Money is always going to be top-of-mind, especially for the American homeowner. It is especially powerful now, because of all of the media hype surrounding the economic recession and tremendous debt that the United States and its citizens are facing.

Can you ride more than one Online shopping - Companies like Expedia and Priceline are the preferred method of hotel/ight searching over directly contacting wave at a time?
airlines and hotels. Shoppers benet from competition between companies. Responsibility - How do we survive through this market? How should we spend our money? What is the solution? People need guidance and answers. The American Dream - People still immigrate to the US in search of it. Americans are still working to achieve it. However, times have changed, and while our goals dont have to change with it, our mentality does. Mobility - Every legitimate company has some sort of smartphone App.

Step 5: Who shares the brandscape?

Who else competes in your category? Who comes rst, second, and third in customers minds?
Banks LendGo.com BankRate,com 1.Banks (regional and local) 2.LendingTree.com 3.LendGo.com 4.BankRate.com

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Step 6: What makes you the only?

Whats the one thing that makes your brand both different and compelling?
LendingTree is no longer just the middle man between mortgage brokers/banks and homeowners. Its the economically responsible mortgage exchange service that allows shoppers to renance their homes search for better rates, but also acts as a reality checker that helps shoppers gure out what type of homes they can afford during these tough times.

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OUR WEBSITE IS THE ONLY ONLINE MORTGAGE/LOAN EXCHANGE SERVICE THAT IS TAKING RESPONSIBILITY FOR THE HOUSING MARKET CRASH BY INTRODUCING A NEW MENTALITY AND THE TOOLS TO REACH THE AMERICAN DREAM WITHIN OUR MEANS.

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Step 7: What should you add or subtract?

What existing brand elements are undermining your onliness?
Once shopper information is sent out to banks, the shopper gets an a non-stop inux of emails from banks for weeks. This is a huge complaint. Emails need to be streamlined and sorted out in 1 place. Poor customer service and assistance. Spam emails are impossible to unsubscribe from.

What new brand elements could strengthen your onliness?

Exclusive access to bank portfolios Reality Checker Robert T. Kiyosaki, author of the #1 personal nance book of all time, Rich Dad, Poor Dad, is a world renowned educator of all things nance. He would be an amazing spokesperson who could offer advice on the LendingTree website with tips on how to manage money in this economy, the new rules of the mortgaging world, and etc. Explanation of the housing bubble, the current market in your local region and nationally, new laws, the ne print, and the new mentality that Americans need to survive the economy one house at a time. Note: While home loans and mortgages are the primary service offered on LendingTree, I dont think that the other services (auto, school, personal loans) should be eliminated just yet. Once users gain trust and afnity to the new features, its possible that over time, users will turn to LendingTree to search for its other services. This can be reevaluated over time.

How do the remaining elements align with your vision?

The reality checker needs to be streamlined across all offeringsmortgage and renance loans, home equity loans, auto loans, personal loans, credit cards, commercial lending, and student loans.

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Step 8: Who loves you?

Who makes up your brand community?
Bankers The stock market Homeowners Home-shoppers Builders/developers Car owners/shoppers, personal loan shoppers, credit card holders, student loan shoppers. Credit card companies Automotive dealers Schools and nancial aid programs Employees Customers Partners Investors

How can you manage the gives and gets so everyones happy?

Users are offered more affordable rates. Banks/lenders get paid.

Step 9: Whos the enemy?

Which competitor can you paint as the bad guy?
The Unknown Future The biggest problem that we homeowners/potential homeowners have, is that they dont trust the economic climate or the unpredictable future that it might bring. Current Competitors/Online Mortgage Exchangers Careless/Hungry Bankers of the Past Through informing users about the housing market collapse, we are able to paint the bankers of the past as bad guys for causing the mess. However, this must be done strategically because they are our currently customers.

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Step 10: What do they call you?

Is your name helping or hurting your brand?
Neither. The name is well known and recognized which plays to its credibility. On the other hand, the brands positioning has been lost. For people who havent really used the service, LendingTree might be a recognizable name with a vague meaning.

If its hurting, is there an opportunity to change it? If its too late to change it, is there a way to work around it? Is it suitable for brandplay? Does it have creative legs?

I dont think so.

I dont think so.

Yes, LendingTree is suitable for brand play and creativity. This has to do with the potential for interesting/memorable logos, slogans, and taglines that refer to lending or trees. Lending is a positive word, it sounds like the company is willing to help/lend a hand. Tree is a strong word, simple, symbolic of stability, foundation, and growth.

Step 11: How do you explain yourself?

Whats the one true statement you can make about your brand?
LendingTree is the rst loan/mortgage exchange service that is taking responsibility & making steps toward cleaning up the mess that the housing bubble created by helping Americans live the American Dream within their means in the tough economic times.

Step 12: How do you spread the word?

How can you unpack your name, trueline, and tagline?
LendingTree, Keeping the American Dream in Check. This tagline works because it is strong. Americans can resonate with the American Dream and the ideal lifestyle. Checking something off feels good, its empowering; the word creates a feeling of having a good head on your shoulders and authority. It accurately represents the Mr. Fix-It attitude that LendingTree is taking on by providing a step towards an economic solution.

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How can you enroll brand advocates through messaging?

Advertising push - empowering messages create a sense of hope for the future, security, and resolution. PR push- pitch stories and angles to national print/online/broadcast outlets, economy publication, home/trade/building journals and magazines, etc. Testimonials Reach out to early adopters Use Robert Kiyosakis expertise to LendingTrees advantage

How can you align all your communications with your zag?

Ensure that all efforts are streamlined, positive, and showcase LendingTrees responsible efforts of taking action to restore condence/momentum the housing market, one home at a time.

Step 13: How do people engage with you?

What are you selling and how are you selling it?
Relief- to bankers Bankers are having trouble trusting their customers to pay back mortgages/loans, so they overcompensate and ask for a lot of information about the person asking for a loan. Shoppers, still wanting large American Dream-type homes, often search for mortgages that are out of their league causing bankers to decline people or offer bad rates. But, they still have hundreds of homes in their portfolios to get rid of. With the Reality Checker, LendingTree does the judging, and tells people which league theyre in, and what types of homes they have better chances of getting better rates for. This eliminates clutter for bankers and gives them the chance to sell their properties. Condence - to homeowners/shoppers By using the Reality Checker, bank portfolios, and Kiyosakis knowledge, we can equip LendingTree users with the information, mentality, and tools needed to navigate the current market condently, despite their doubts about the future. We can guide them in the right direction and take them straight to the bankers who have the properties/rates they can afford.

Which touchpoints will let you compete in white space?

Educational content from Kiyosaki Reality Checker Bank portfolio database

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Step 14: What do they experience?

Word of mouth How will customers learn about you?/ How can you Out-of-Home, driving by enroll them in your brand? Introduced by a friend Newspaper Radio Online ad Web serch Customer service LendingTree.com Broadcast media Smartphone Apps

Who will be your competition at each touch point?

Economy Competitors Noise (distractions) Bad reviews

Where should you put your marketing resources?

Research and Development Advertising and PR

Step 15: How do you earn their loyalty?

How can you help customers build barriers to competition?
Educate them Keep them updated on regulations, laws, changes in the market in understandable words Form exclusive relationships with banks for their portfolios 24/7 top-notch customer service Having the Reality Checker across all services

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How can you avoid creating The Reality Checker cannot be the ONLY way to request a bid. It would be a service that was heavily pushed while the current model a disloyalty program?
was still in place. Not all users will want a Reality Check, not all customers are shopping for new homes or their rst mortgages. Some users want to renance their homes, and may not need to be given suggestions. As per education, the switch in mentality that we are trying to push is that times have changed so its time to think differently about how we spend our money, not times have changed, and your doing it wrong. Its important not to alienate customers who are not open to this.

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LendingTree Keeping the American Dream in Check

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Works Cited
"Compare Loan Offers in Minutes!" Mortgage. Tree.com, n.d. Web. 20 June 2012. <http:// www.lendingtree.com/>. Darren. "Checklists: Why Are They Important in Getting Things Right." Checklists: Why Are They Important in Getting Things Right. 1stwebdesigner.com, n.d. Web. 20 June 2012. <http:// www.1stwebdesigner.com/design/checklists-important-things-right/>. Kiyosaki, Robert T. Rich Dad, Poor Dad: What the Rich Teach Their Kids about Money-- That the Poor and Middle Class Do Not. Scottsdale, AZ: Plata Pub., 2011. Print. "Lending Tree." 245 Complaints and Reviews about. Consumeraffairs.com, n.d. Web. 20 June 2012. <http://www.consumeraffairs.com/nance/lending_tree.html>. "Mortgage Lead Generation Sites." Mortgage Lead Generation Sites. The Mortgage Professor, 11 Apr. 2011. Web. 20 June 2012. <http://www.mtgprofessor.com/a%20-%20using%20the %20internet/auction_sites.htm>. "Mortgage." Renance. Lendgo.com, n.d. Web. 20 June 2012. <https://www.lendgo.com/>. "Reoven Oanono." Telephone interview. 18 June 2012. Thames-Copeland, Tiffany. "The American Dream Or the African American Nightmare???" Take Pride! Community Magazine: 24. Ethnic NewsWatch. 2007. Web. 20 June 2012 . Whittaker, Kamille D. "Un-Mortgaging the American Dream." The Atlanta Tribune 2009: 27,30,32. Ethnic NewsWatch. Web. 20 June 2012 .

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