Chapter 6 Flashcards
(22 cards)
What is marketing
A process of planning and executing the conception, pricing, promotion, and so tribute on of goods, ideas or services to create exchanges that satisfy consumer and organizations, objectives
What is marketing research
Is the systemic gathering of information about a markets size and trends. Statistics gathered in this way identify the size and scope of the consumer markets that insurers might want to target. Also this research helps to plan a company’s promotional agenda to ensure that identified target market will find company appealing
What are the main bases of segmentation in marketing planning?
Geographic - customer location
Demographic- age, gender, occupation, social-economic group
Behavioural- rate of usage, benefits sought, loyalty status, readiness to purchase
Psychographic- personality, lifestyles, attitudes, class
What is a niche market
An identifiable subgroup of consumer market
Explain current situation assessment (marketing)
The process used to assess the current situation within a market includes research and analysis of the prevailing trends and conditions of the market
It must be determined whether a targeted consumer market is growing, flat, or shrinking
Explain marketing self-audit
-Data gathered from current and past initiatives allows companies to evaluate their sales by location, type, customer, and product
-Pricing history, distribution history, promotional history, and anything else that might help to develop a marketing plan is reviewed during the self audit
-Conducting a self-audit provides the opportunity for an organization to identify what it can improve on
What are the costs of acquiring a new customer?
Doing background checks with habitational insurance tracking system (HITS) for property to check losses
Searching motor vehicle records for convictions and charges
Using autoplus
Making appraisals
Travelling for site inspections
Having initial and follow-up meetings with the client
Marketing the account to interested insurers
What are the questions from a foundation for assessing the customer base?
-Are most customers in one particular market segment or sector?
-Can the same product be sold to other market segments or sectors?
-Does the current customer base have other needs that are not being met? If so, what are they? Do opportunities exist to sell other policies to these customers, or can existing coverages be upgraded?
-If current customers needs are not being met, can policies be improved?
-Who makes the purchasing decisions for this client? Who should the company contact within potential customers unit?
What is the ripple effect?
One company’s marketing launch will often be felt by other companies
Any activity in the market could adversely affect another insurers sales projections
What is market dislocation?
When an insurance company leaves the market, it creates market dislocation for its existing customers
Underwriting managers may take advantage of market dislocation as an opportunity to expand
What are the economies of scale financial benefit?
Cost effectiveness- there is reduction in the average cost of delivering its products or service
Improved profit margin- a business can maintain or even increase its selling prices while experiencing a decrease in production costs
Increased negotiating power- can secure better deals, discounts or more favourable payment terms and conditions due to the volume of goods and service they purchase
Greater access to capital- financial institutions and investors may be more willing to provide funding to businesses with a proven track record and stable, scalable operations
Competitive advantage- allows a business to outperform smaller competitors in terms of cost competitiveness, pricing strategies, and overall marketing presence
What are the four marketing strategies?
Dominance- based on their market share or dominance in the market
Competitive advantage- relating to market penetration and an organizations sustainable competitive advantage involving cost, differentiation, segmentation
Innovation- strategies related to the organizations status with respect to innovation in new products, services, and business model
Growth- strategies related to achieving the organizations growth
What is marketing objectives?
The means to achieve sales objectives and address each group within a target market
Objectives are set for every segment of the targeted market
What does distributor of a product or service determine?
(Aka what does the broker do on behalf of the insurer)
Customers needs
Matches the to product or service available
Make sure contract is issued
Provides ongoing advice
Service policies as needed
What is digital marketing?
-This form of marketing leverages various online channels and platforms to promote insurance products and services, enhances brand visibility, and drive customer acquisitions
-Offers insurers the opportunity to increase personalization and targeted campaigns, enabling them to contact with potential customers based on their specific needs and preferences
What are the questions to ask when evaluating marketing strategy?
What do customers like about the product or service?
What do customers like about the competitions product?
Why have customers chosen to buy a particular company’s product or service in the past?
What advertising messages has the customer seen prior to buying a product or service?
Define promotion
Is an inclusive term incorporating various elements such as personal selling, advertising, sales promotion, publicity, and public relations
What does advertising do?
Builds awareness
Evokes attitudes and provokes actions
Factual information included to support primary message and conjure appropriate emotional image
What is DEI marketing?
Sales effective and resonant marketing strategies
Ensures marketing efforts are reflective of varied perspectives, cultures and backgrounds of the target audience
Breaking down societal stereotypes
What are examples of marketing literature?
Direct mail
Slide presentation
Pamphlets
Business proposals
Press releases
Newsletters
Explain public relations and publicity
Involves evaluating public attitudes, engaging in activities that promote understanding and sympathy and further brand recognition
Helps attract good employees, earn respect of investors, and reinforces public interest
Public image refers to the way that clients and potential clients perceive it
Foundation is to inspire integrity, earn trust and respect
When doing a news media communication what must be included
Talk plainly
Prepare three statements including facts, statistics, and research
Show awareness and caring
Prepare positive statements before
