Marketing Forecast from Ad-ology

At least one group of industry experts believes that the free-fall in housing prices may soon end. The Mortgage Bankers Association (MBA) is looking for “modest increases in home sales and stabilizing home prices” in the later part of 2011. Mortgage originations, though, will drop from $1.4 trillion this year to $1 trillion in 2011. Specifically, the MBA says that the number of refinancing originations will decline but purchase originations will rise.

Fifty-three percent of consumers interested in a payment service from their mobile phone would consider changing banks if another bank offered the service, according to a survey conducted by an independent research firm for Obopay. Nearly three-fourths (70%) of those responding indicated that if the service allowed them to get paid, send or receive money by mobile phone, it would be an incentive to remain at their banks. The survey also revealed an important requirement for consumers, as the vast majority of respondents (71%) indicated that if transactions were “instant” – defined by most as “within seconds” – they would be more likely to use a payment service on a mobile phone. According to Obopay Senior Vice President Michael Diamond, offering mobile phone payment services “would prove a competitive edge for banks – a way of both keeping existing customers and attracting new ones.”

Read the 10-K report published by any number of major CPG manufacturers in the U.S. and you’ll likely see Walmart listed as a significant customer, often accounting for 10% of annual revenue. The retail giant operates over 4,000 retail sites in this country and looms large in the shopping plans of consumers at all demographic levels. The company has changed the very nature of retailing CPG and groceries. In the past two years, the company has started branching into a new market: financial services.

Overuse of credit cards is frequently cited as one of the contributing factors for the economic turmoil many consumers find themselves experiencing. Overall, consumers are cutting their reliance on revolving debt. But the U.S. economy still runs on largely on credit and J.D. Power and Associates 2010 U.S. Credit Card Satisfaction StudySM reveals that consumers perceive these companies as ‘financially stable’ and ‘reliable.’

The days of the defined benefit (DB) retirement plan are so over. In 1998, DB plans, a cornerstone in union heavy industries such as manufacturing and energy, comprised 4.19% of employer payroll costs. Ten years later, that amount dropped to 1.99%. In addition to the rapid shrinking of DB retirement plans, employers have made significant cuts to this benefit overall. Between 1998 and 2008, retirement benefits dropped 19%.

The credit card industry is recovering from serious challenges encountered in the past few years. Too many consumers loaded up on debt before the recession and many are now either working out payment plans or they filed for bankruptcy and need a fresh financial start. At the same time, the federal government passed sweeping financial reforms designed to prevent credit card companies and consumers from contributing to another economic bubble. These factors mean credit card companies will be marketing to key demographic groups to find new customers.