Abstract
The study analyses mass media communication by mortgage lenders in the Czech market and builds on Kotler's competitive strategies concept and aims to answer the question of whether there is a relationship between the mortgage lenders' market position and their mass media communication profile. Furthermore, it analyses the mass media communication of mortgage lenders according to their financial performance. The analysis utilises complete monitoring data from the mass media market in the Czech Republic. As a result of this study, the different advertising patterns of the market leaders and challengers on a highly commoditised market are shown. Market leaders do not utilise defensive strategies to protect their market shares but employ more offensive strategies to increase the size of the market. Market challengers have no resources to implement a massive and offensive communication strategy to challenge the market leaders. Such a conclusion contributes to the debate on communication strategies for distinct types of companies according to their position on the market and their market share.
Highlights
Most people buy a property only a few times or just once in their life
The analysis of Q1 revealed no statistically significant difference in the volume of advertisements between the older and the younger mortgage lenders. This may be related to the fact that not all financial institutions considered to be older mortgage lenders can be perceived as market leaders
The results revealed a positive relationship between the intensity of advertising and the number of new mortgage loans on the Czech mortgage market
Summary
Most people buy a property only a few times or just once in their life. The buyers usually financially stretch themselves and most opt for additional funding. The variation in the interest rates offered by the lenders is almost negligible and the market is highly commoditised (Allen et al, 2014) This is the situation on the Czech mortgage market, as the country has closed the gap on the well-established and developed western markets since the 1990s (CNB, 2015). The influence of advertising on aggregate demand varies in different industries Such an assumption is the motivation to analyse the relationship between sales and advertising in the Czech mortgage market (Q4). The motivation for this research is to reveal whether the financial institutions offering mortgage or housing loans on the Czech market communicate differently regarding their age, financial strength, and market position. ● Q4: “Is there a relationship between the intensity of advertising and the number of new mortgage loans on the Czech mortgage market?”
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