Chapter 1 Flashcards
Define the term Marketing
includes all the activities companies perform to identify customers, define customer needs, develop products and services that meet customers’ needs and sell and deliver those products to customers.
Define the term utility
its the ability of and the degree in which a product or service satisfies a customer’s needs.
T or False
“ The greater a product’s utility, the greater the product’s value to customers”
True
Exchange gaps come in which major forms? (5) name them only
- perceived value gap
- awareness gap
- time gap
- place gap
- possession gap
Define ‘perceived value gap’
buyers find value in a product or service when it satisfies their needs at a price they can affor. Sellers view the value of a product or service primarily in terms of the cost to manufacture it.
Define ‘awareness gap’
Sellers must know what buyers want and need, and buyers must know that a seller has products or services that satisfy their needs.
Define ‘time gap’
When buys cannot complete and exchange at the time desired, or within a certain time limit, they are not likely to participate in the exchange process.
Define ‘place gap’
When the parties to the exchange process cannot connect with each other, the exchange process is unlikely to occur.
define the ‘possession gap’
When buyers cannot make immediate use of a product, the exchange process is likely to occur.
How do insurers use marketing to overcome these exchange gaps?
- research needs of customers
- develop products/servicces that satisfy customers needs
- offer products/services at appropriate prices, and conveniently
- educating customers about products and services in ways that are easily understood and engaging.
- communicating with customers to ensure that they are satisfied with company prodcuts/services.
What are the four (4) P’s of marketing?
- product
- price
- place (how/where its purchased) - sometimes referred to as distributions
- promotions
As the business landscape has transitioned from manufacturing to services, the focus has shifted from the products to the customers. Or the 4 P’s to the 4 C’s. What are the 4 C’s?
- Customer
- Cost
- Convenience
- Communication
The marketing environment can be divided into external and internal environments. What are the external environment components?
- macro environmental- factors outside the company over which the company has little control but that can greatly impact the company’s operations. 2. micro environmental factors- factors outside the company over which the company has some control, and that often greatly impacts the customer experience.
The marketing environment can be divided into external and internal environments. What are the internal environment components
consist of factors within the company over which it maintains a lot of control.
Name examples of external macro environments.
political Economic social/cultural technology demographics
How does the federal, state and local governments influence marketing activities in the United STates?
through their taxation policies, regulations and laws, and licensing requirements.
What is the role of state insurance codes?
laws of state that govern the business of insurance in that state.
What is the role of the state insurance department>?
This is an administrative agency that is responsible for issuing certificates of authority.
What is a certificate of authority?
authorization for an insurer to conduct insurance business in that state.
The state insurance department operates under whos’ direction?
the insurance commissioner, also known as the insurance superintendent or director of insurance.
What are all laws and regulations similar throught the US if each state has its own set of laws and regulations?
They are based on models developed by the National Association of Insurance Commissioners (NAIC)
What is the NAIC?
a private, non-profit association of the insurance commissioners of all 50 states, the district of columbia and the four US territories that promotes uniformity of insurance law by developing model laws and regulations that states can adopt or use as the basis for their own laws and regulations.
What other acts (just name) regulated by the federal laws regular some aspects of the insurance company?
- Gramm-Leach-Bliley (GLB) act
- Affordable Care Act (ACA)
- Securities and Exchange commissions (SEC)
- Financial Industry Regulatory Authority (FINRA)
- Department of Labor (DOL)
- Federal Insurance office.
Define the Gramm-Leach-Bliley act
this act places limits on the ability of a financial institution to disclose nonpublic personal information.
also requires a privacy notice to be delivered at the time a customer enters into a contractual relationship and once a yr after. This describes what info is being collected and with whom its being shared and how the company protects it.
What is non-public personal information?
personally identifiable financial information that a customer provides to a financial institution but that is not publicly available.
Define the Affordable Care Act (ACA)
establish a comprehensive health insurance program designed to improve accessibility, affordability, and quality of health care and lower the uninsured rate by expanding public and private insurance
What does the Securities and Exchange commission do?
exercises authority over the sale of securities. Variable insurance products are considered securities and are subject to SEC oversight designed to protect investors.
