Reference no: EM133179376

FNSPRM613 Grow financial practices

Case Study Scenario
You are a finance broker working in your own business as a sole trader for the past five (5) years and offer a range of mortgage and personal finance to individuals and couples, and business owners. You have reviewed the sales figures from last year, and the breakdown of types of finance (%) settled for the business. The business has had strong results in the owner-occupied construction finance, especially for first home buyers.

You have decided that you would like to diversify and expand the business into other areas of finance, especially high net worth investors and cross promotion of products to existing clients.
The two drivers influencing these goals are:
1. increased enquiries from existing clients regarding vehicle loans and
2. a visit from your aggregator BDM who mentioned that investor clients are a little more astute when it comes to finance.

Task 1 - Investment Property Finance

Create promotional strategies in line with your growth goals
Considerations in line with your relevant growth goals:
People Your target market for each promotional strategy identified in your Marketing Plan.

Promotion
Whatpromotional tool/materials are you going to use to reach your target clients?
• print advertising, giveaways, displaysetc. How are you going to reach them?
• online advertising, mail-outs, media releases, events, website, blog/social media
Place Consider where your clients are situated in location to your office/you
Where will the promotion take place in what area?
Products Think about what products may be relevant to your target market.

1. Your promotional plan - complete the template below.
People
Research two products you are going to promote. Include:
o lender name
o product name
o interest rates (comparison rate must be included)

Promotional tools
Promotional activities
Create your branding statement to attract your target market.
What is your unique selling proposition?
What is the date for delivery/ implementation?

2. Research and compare two (2) mortgage products.
o Refer to assist you in completing product comparisons.
o Provide the URL and insert a screenshot of the product pages to show the evidence that your research aligns with your target market.

3. Budgeting and Return on Investment (ROI)
Use the expected income per target client and work out the expected return from your promotional activity. The remainder of your figures for this exercise will be assumptive and based on your own research but should be verifiable by the research you conducted on the products.
Considerations
o When preparing a budget, you must consider all associated costs i.e. people, technology, supplies, suppliers, cost per click/lead (social media) etc.
o When estimating a % of interest, you should research and consider what is appropriate for the type of promotional activity you are completing.
o What would be your conversion rate from % of interest? Remember: not all clients that show interest in your promotion will take up your offer.
o When estimating the yield you will need to consider what income you would earn from each client after you have paid any commissions for referrals - refer to the case study (as a new broker you will not know these figures until you start your business)
o Return on investment (ROI) - this is a highly important factor in understanding the success of your marketing and whether it will be worth the effort. It forms part of your growth projections.

4. Create an action plan that outlines the tasks involved in the delivery of your promotional activity.
Each task will have several steps - for instance, creating abrochure requiresdesigning, writing, formatting, printing, marketing software communication channel you might use, etc.
The table has allowed for 6 steps, you may add to this if necessary or if you can reasonably do the task in less steps this is also acceptable, however it is expected there will be a minimum of 4 steps as shown in the example provided above.

5. Monitoring your plan
Keeping track of the progress of your promotional plan is completed over a period of time, between your start date and end date. Think about your dates and where you see your promotion at each stage and complete the Monitoring Plan template below. Also, use the links provided in the Learning Guide to further research methods on monitoring your market plan.
Consider:
• Remember, your dates need to align with your start date and the last check in should be before your end date. For the purpose of this exercise, we have added three check points (you may have more than this with regard to some marketing activities when they happen ‘in real life' or IRL).
• Monitoring methods to determine you are on target to achieve your success indicators % of interest and ROI:
o how you would check the progress of a social media ad campaign to determine your monitoring process, i.e. key metric; review sales figures a month after the promotion. Please note there are many more ways and it is expected that you provide other methods as well.

Task 2 - Vehicle Finance

Create promotional strategies in line with your growth goals
Considerations in line with your relevant growth goals:
People Your target market for each promotional strategy identified in your Marketing Plan.

Promotion
Whatpromotional tool/materials are you going to use to reach your target clients?
• print advertising, giveaways, displaysetc.
How are you going to reach them?
• online advertising, mail-outs, media releases, events, website, blog/social media
Place Consider where your clients are situated in location to your office/you
Where will the promotion take place in what area?
Products Think about what products may be relevant to your target market.

1. Your promotional plan - complete the template below.
People
Research two products you are going to promote. Include:
o lender name
o product name
o interest rates (comparison rate must be included)

Promotional tools
Promotional activities
Create your branding statement to attract your target market.
What is your unique selling proposition?
What is the date for delivery/ implementation?

2. Research and compare two (2) vehicle products.
o Provide the URLand insert a screenshotof the product pages to provide the evidence that your research aligns with your target market.

3. Budgeting and Return on Investment(ROI)
Use the expected income per target client and work out the expected return from your promotional activity. The remainder of your figures for this exercise will be assumptive and based on your own research but should be verifiable by the research you conducted on the products.
Considerations
• When preparing a budget, you must consider all associated costs i.e. people, technology, supplies, suppliers, cost per click/lead (social media) etc.
• When estimating a % of interest, you should research and consider what is appropriate for the type of promotional activity you are completing.
• What would be your conversion rate from % of interest? Remember: not all clients that show interest in your promotion will take up your offer.
• Return on investment (ROI) - this is a highly important factor in understanding the success of your marketing and whether it will be worth the effort. It forms part of your growth projections.

4. Create an action plan that outlines the tasks involved in the delivery of your promotional activity.
Each task will have several steps- for instance, creating abrochure requiresdesigning, writing, formatting, printing, marketing software communication channel you might use, etc.
The table has allowed for 6 steps, you may add to this if necessary or if you can reasonably do the task in less steps this is also acceptable, however it is expected there will be a minimum of 4 steps as shown in the example provided above.

5. Monitoring your plan
Keeping track of the progress of your promotional plan is completed over a period of time, between your start date and end date. Think about your dates and where you see your promotion at each stage and complete the Monitoring Plan template below. Also, use the links provided in the Learning Guide to further research methods on monitoring your market plan.
Consider:
• Remember, your dates need to align with your start date and the last check in should be before your end date. For the purpose of this exercise, we have added three check points (you may have more than this with regard to some marketing activities when they happen ‘in real life' or IRL).
• Monitoring methodsto determine you are on target to achieve your success indicators % of interest and ROI:
o how you would check the progress of a social media ad campaign to determine your monitoring process, i.e. key metrics; review sales figures a month after the promotion. Please note there are many more ways and it is expected that you provide other methods as well.

Attachment:- Financial practices.rar