CH 6 Flashcards
Marketing’s purpose
Satisfying consumer and company objectives through a system of business activities.
Marketing Value
The perceived benefit offered by a product or service, beyond just the physical features.
Marketing department’s role
Creating value for clients by offering products, services, or ideas.
Client Value Perception
Clients must believe a product or service is worthwhile.
Traditional marketing focus
Historically, marketing focused mainly on physical goods.
Modern Marketing Focus
Now, marketing focuses on meeting client needs and creating long-term relationships.
Marketing’s role in insurance
Creating a positive image and offering value to customers in the insurance industry.
Insurance industry perception
The public’s opinion of the industry is sometimes negative, often due to past experiences.
Brokerage role
Brokerages play a part in improving the public’s image of the insurance industry.
Intangible product
Insurance is not a physical product like a car. It’s a service.
Value vs. price
Clients sometimes undervalue insurance due to its intangible nature and only being needed when something happens.
Perceived Value
The value a client thinks insurance provides, beyond just the policy.
Marketing Mix
Combination of strategies (product, price, place, promotion) to sell a service or product.
Client Relationship Building
Creating and maintaining strong connections with clients.
Market Segmentation
Dividing the entire market into manageable groups with similar needs for targeted services.
Demographic Segmentation
Dividing the market based on measurable factors like age, gender, and other characteristics.
Geographic Segmentation
Segmenting a market by region—climate, size of city, rural vs. urban.
Technological advantage
Using technology to improve services and provide a competitive edge for brokerages.
Marketing plan elements
Strategies, objectives, and goals, including forecasts, budgets, and timelines.
Value-added service
Services and support that improve the customer experience beyond the core offering like claims assistance.
Positioning strategy
Establishing a clear and distinct identity for a brokerage relative to competitors.
Competitive pricing
Pricing strategies that must remain within reasonable parameters that allow a company to match the objectives and constraints of a market.
Client Database Use
Storing and using information for creating client profiles, which allows for personalized services and targeted marketing strategies.
Marketing action plan
A tailored plan that outlines how to achieve marketing objectives, incorporating strategies, timelines, and financial schedules.
