Define marketing
the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, business partners and society at large.
- Marketing activities are divided between corporate and agency operations.Define corporate:
corporate marketing oversees companywide marketing campaigns directed primarily to external customers.
- Marketing activities are divided between corporate and agency operations. Define Agency:
agency marketing implements regional or local marketing plans directed towards producers and sometimes external customers. Agency marketing must ensure that its plans are consistent with corporate marketing strategies.
- What is a marketing plan, and why do insurance companies develop one? :
a written document that states the marketing foals for a product or product like. It’s used to develop marketing goals and strategies for producing, distributing, promoting and pricing fin services and products.
- Name 7 elements of a marketing plan:
Executive summary – plans purpose and recommendations,
Situation analysis – evaluation of enviro factors, internal/external affecting operations
Marketing objectives: goals
Marketing strategies: plans for achieving goals
Tactical/action programs: descript of marketing activities that are preformed and results
Budgets:
Evaluation and control methodology: Marketing activities are divided between corporate and agency operations
- Which primary 4 marketing variables are involved in insurers marketing goals (name them)?
Product, price, promotion and distribution.
- Define product
refers to the goods, services or ideas that a seller offers to customers to satisfy a need.
- What is product mix?:
the total assortment of products available from a company
- Define price:
the monetary value of whatever a customer gives in exchange for a product. Its based on a combination of financial features that are known as the financial design of the insurance product.
- When designing a product, marketing perspective should include what in their pricing?
Competitors pricing
Customers purchasing power
Regulatory requirements
Other marketing mix variables.
- Define promotion
the collection of activities that companies use to make customers aware of their offerings, and to influence customers to purchase, and distributors to sell, a product.
- What are the 4 promotion tools used to help insurers convey their messages to customers?:
personal selling, sales promotion, advertising, publicity.
- Define personal selling:
promotion that relies on a company’s producers presenting information to one or more prospective customers.
- What are 3 benefits to using personal selling, as a promoting activity?:
allows company to 1) communicate information about complex financial products, 2) provide immediate responses to customer questions, 3) tailor the sales presentation to potential customer needs. Its just expensive.
- Define sales promotion:
it includes incentive programs, designed to encourage producers to sell a product or customer to purchase a product.
- Define the term advertising:
any paid form of nonpersonal communication or promotion about a company or its products or services that an identified sponsor generates and transmits through any type of media.
- What is institutional advertising.
Promotes an idea, philosophy, a company, a company’s brand message or an industry,
- What is product advertising:
any advertising used to promote a specific product or service. – typically aimed at producers
- Define publicity
any non-paid-for communication of information that is intended to bring a person, place, thing, or cause to the notice or attention of the public.
- What is distribution
The collection of activities and resources involved in making products available for customers to buy.
- What are the 3 primary types of systems to distribute insurance products:
Personal selling distribution system- producers well through oral or written presentations
3rd party-instituation distribution systems: banks/institutions sell products to their own customers but do not issue the products
Direct response distribution: insurers initiate or conduct the sale process by communicating directly with customers through direct marketing
define market positioning
its the process by which a company establishes and maintaines in customers minds a distinct place, or position, for itself and its products.
how can an insurer position itself ? (on what basis)
company or product attributes
types of products offered
price and quality of products markets served
distribution characteristics. `
what 3 things does a company typically do prior to developing and marketing its products?
- identifies and evaluates the total market for the products the company is positioned to offer.
- selects the segments of the total market on which the company will focus its marketing efforts
- develops and implements a marketing mix strategy to satisfy the needs of the chosen markets segments.
