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Flashcards in Chapter 9 Deck (47):

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.


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

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


3. 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.


4. 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.


5. 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
Evaluation and control methodology: Marketing activities are divided between corporate and agency operations


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

Product, price, promotion and distribution.


7. Define product

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


8. What is product mix?:

the total assortment of products available from a company


9. 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.


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

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


11. 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.


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

personal selling, sales promotion, advertising, publicity.


13. Define personal selling:

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


14. 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.


15. Define sales promotion:

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


16. 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.


17. What is institutional advertising.

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


18. What is product advertising:

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


19. 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.


20. What is distribution

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


21. 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?

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.


define market segmentation

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


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

market segments.


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?

single-variable segmentation


who is involved in the consumer market?

individuals who buy products or services for personal or family use


who is involved in the organizational market?

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


what is multivariable segmentation,

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


define target marketing

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


define the undifferentiarted marketing strategy

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


define concertrated marketting strategy

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


define differentiated marketing strategy

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.


marketing information can bring answers to what kinds of questionds

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


how do insureres obtain current marketing information?

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.


what is typically stored in an insurers internal databases?

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


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

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


define marketing research

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 . $$$


what is included in a marketing environment

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.


What is an insurance company's internal environmentt?

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


What is an insurance company's external environment?

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.


what happens during a sales analysis?

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


what happens during an expense analysis?

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


what happens during profitability analysis?

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


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

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.


what is the purpose of a marketing audit

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