Chapter 9

Question 1

Define marketing

Answer 1

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.

Question 2

2. Marketing activities are divided between corporate and agency operations.Define corporate:

Answer 2

corporate marketing oversees companywide marketing campaigns directed primarily to external customers.

Question 3

3. Marketing activities are divided between corporate and agency operations. Define Agency:

Answer 3

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.

Question 4

4. What is a marketing plan, and why do insurance companies develop one? :

Answer 4

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.

Question 5

5. Name 7 elements of a marketing plan:

Answer 5

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

Question 6

6. Which primary 4 marketing variables are involved in insurers marketing goals (name them)?

Answer 6

Product, price, promotion and distribution.

Question 7

7. Define product

Answer 7

refers to the goods, services or ideas that a seller offers to customers to satisfy a need.

Question 8

8. What is product mix?:

Answer 8

the total assortment of products available from a company

Question 9

9. Define price:

Answer 9

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.

Question 10

10. When designing a product, marketing perspective should include what in their pricing?

Answer 10

Competitors pricing
Customers purchasing power
Regulatory requirements
Other marketing mix variables.

Question 11

11. Define promotion

Answer 11

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.

Question 12

12. What are the 4 promotion tools used to help insurers convey their messages to customers?:

Answer 12

personal selling, sales promotion, advertising, publicity.

Question 13

13. Define personal selling:

Answer 13

promotion that relies on a company’s producers presenting information to one or more prospective customers.

Question 14

14. What are 3 benefits to using personal selling, as a promoting activity?:

Answer 14

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.

Question 15

15. Define sales promotion:

Answer 15

it includes incentive programs, designed to encourage producers to sell a product or customer to purchase a product.

Question 16

16. Define the term advertising:

Answer 16

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.

Question 17

17. What is institutional advertising.

Answer 17

Promotes an idea, philosophy, a company, a company’s brand message or an industry,

Question 18

18. What is product advertising:

Answer 18

any advertising used to promote a specific product or service. – typically aimed at producers

Question 19

19. Define publicity

Answer 19

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.

Question 20

20. What is distribution

Answer 20

The collection of activities and resources involved in making products available for customers to buy.

Question 21

21. What are the 3 primary types of systems to distribute insurance products:

Answer 21

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

Question 22

define market positioning

Answer 22

its the process by which a company establishes and maintaines in customers minds a distinct place, or position, for itself and its products.

Question 23

how can an insurer position itself ? (on what basis)

Answer 23

company or product attributes
types of products offered
price and quality of products markets served
distribution characteristics. `

Question 24

what 3 things does a company typically do prior to developing and marketing its products?

Answer 24

1. identifies and evaluates the total market for the products the company is positioned to offer.
2. selects the segments of the total market on which the company will focus its marketing efforts
3. develops and implements a marketing mix strategy to satisfy the needs of the chosen markets segments.

Question 25

define market segmentation

Answer 25

the process of dividing large, diverse markets into smaller submarkets that are more alike and need similar products or marketing mixes.

Question 26

what do you call each submarket, or group of customers with simillar needs?

Answer 26

market segments.

Question 27

what tool do insurers use when they divide the entire market for like insurance according to whether the product is intended for personal or business use?

Answer 27

single-variable segmentation

Question 28

who is involved in the consumer market?

Answer 28

individuals who buy products or services for personal or family use

Question 29

who is involved in the organizational market?

Answer 29

consists of people, groups, or formal organizaitons that purchase products and services for business purposes.

Question 30

what is multivariable segmentation,

Answer 30

it uses a combination of characteristics to segment a market. - geo location - demongraphics, (age, sex, marital status, income, education) - purchase behaviours

Question 31

define target marketing

Answer 31

the process of evaluating the attractiveness of each market segment to the company and selecting one or more of the segments.

Question 32

define the undifferentiarted marketing strategy

Answer 32

where the company defineds the total market as its target marker and designs a single marketing mix for the entire market.

Question 33

define concertrated marketting strategy

Answer 33

where the company focuses all the marketing resources on satisfying the needs of one segment of the total market for a partficualr type of product

Question 34

define differentiated marketing strategy

Answer 34

a company attempts to satisfy the needs of different segments of the total market of offering a number of preducts and marketing mixes designed to appeal to the different segments.

Question 35

marketing information can bring answers to what kinds of questionds

Answer 35

1. general econimic and business trends in the inductry 2. demographic trends in target markets .3. chanhges that should be make in industrial channels 4. benefits most important to customers 5. what influences the purchasing decision of cutomers

Question 36

how do insureres obtain current marketing information?

Answer 36

by maintaining a marketing information system, which is a set of procedures and methods fro the regular, planned, collection analysis and presentation of information for use in making marketing decisions.

Question 37

what is typically stored in an insurers internal databases?

Answer 37

store considerable amounts of product data, sales data, and other types of data

Question 38

where do insurers obtain most of their competitive and market intelligence from?

Answer 38

publicly available sources - ie. statistic labour sites - census data/ economic indicators - insurance and financial services trade associations - competitiors websites/'advertisements

Question 39

define marketing research

Answer 39

a process of collecting, analyzing, interpreting and reporting informaiton in order to identify marketing oppertunities and solve marketing problems. - done one time, or PRN basis . $$$

Question 40

what is included in a marketing environment

Answer 40

consist of all of the elements in the compny's internal and external environement that idrectly or indirectly affect the company's ability to carry out its marketing activities.

Question 41

What is an insurance company's internal environmentt?

Answer 41

consist of those elements within the company that affect the companys business function and over which the company has control, including financial, physical and technologic, and HR. internal organizational structure and marketing mix

Question 42

What is an insurance company's external environment?

Answer 42

consist of elements that are outside the company and oebr which the company has little or no control. including economic, competitive, regulatory, taxation and social factors.

Question 43

what happens during a sales analysis?

Answer 43

a company examines its sales numbers to evaluate current performances. c

Question 44

what happens during an expense analysis?

Answer 44

ties marking costs to particular marketing activities to help marketing managers decide if a cost is worth the value of the activity.

Question 45

what happens during profitability analysis?

Answer 45

compares the sales an acitivity generates with the expenses incurred to make those sales to determine profitability.

Question 46

how does an insurer typically attempts to correct a problem in performance standards. ?

Answer 46

1. change tactical/action programs or implementations strategies 2. developing new products, marketing strategies, or marketing goals while either conditnue current marketing strategies or marketing goals while either continuing current marking acitivities or ceasing them 3. changing how it collects or analyzes performance data if the current way doesnt reflect true performances. 4. reviewing performance standards to make sure that the standartds are valid and realistic.

Question 47

what is the purpose of a marketing audit | ?

Answer 47

to examine marketing goals, strategies, tactival/action programs, organizational strucutre and personnel on a very broad basis.