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LOMA 320- ISTAR > Chapter 10 > Flashcards

Chapter 10 Flashcards

1
Q

What are the 4 main method insurers use to deliver marketing communications?

A
  1. personal selling
  2. Sales promotion
  3. advertising
  4. publicity
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2
Q

Most marketing communications are designed to acheive one or what 3 primary goals?

A
  1. increase product sales
  2. define a company’s products position in the market
  3. create a strong image of a company or its products
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3
Q

The communication process that allows comapnies to exchange information with customers and other stakeholders includes what 4 basic elements?

A
  1. sender
  2. message
  3. communication channel
  4. receiver
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4
Q

Define sender

A

person who creates a message and initiates the communication process.

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5
Q

Define communication channel

A

it delivers messages to the intended audience - such examples other other people, publications, letters, websites

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6
Q

What is encoding?

A

process to translate thoughts or ideas into written test, spoken words, or visual images.

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7
Q

what is a decoding process?

A

when a message arrives, the receiver translates the words, imagines or symbols into meaning ideas

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8
Q

what happens if the receive sends a response, or feedback to the original sender?

A

the process is reversed.

The channel used to send feedback can be the same as or diferent from the channel ised to send the original message

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9
Q

What is noise?

A

anything that interferes with the creation, transmission, or translation of messages

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10
Q

Marketing communication strategies can be divided into what 3 types?

A

push strategies
pull strategies
combination strategies

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11
Q

What is push strategy?

A

a marketing communications strategy designed to provide distributors with an incentive to sell a product through the distribution channels to customers.
- used to get new sales representatives and to keep sales force motivated and interested in building sales.

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12
Q

What is a pull strategy?

A

Marketing communication strategy designed to stimulate demand for a prodcut and encourage customers to request a product from a distributor.

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13
Q

what is the purpose of content marketing strategies?

A

they are designed to generate profitable customer action by creating nd delivering valuable, relevant and consistent information to a clearly defined audience.

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14
Q

What is a combination strategy?

A

a marketing communication strategy that uses elements of both push and pull strageties to create distributors and customer demand for a company’s products and services.

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15
Q

To support its communication strategy, a company needs to decide on its communication mix. what is that?

A

the specific combination of communication tools it will use to promote its products and services.

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16
Q

what are some factors that affect communications mix choices?

A

1, company goals and strategies

  1. company culture
  2. distribution channel charecteristics
  3. product characteristics
  4. target market characteristics
  5. external environment including competitors, actions and regulatory restrictions.
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17
Q

Cx today have taken control over when, where and how they obtain information about products and services. What must companies do to deliver messages that relate specifically to their customers wants and needs?

A
  1. understand what their customers want and need
  2. understanding what they are selling and build content around it
  3. deliver their marketing messages through multiple channels
  4. offers customers a payoff that makes them return to the company site again
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18
Q

What are the most commonly used budgeting methods insurers use?

A

percentage of sales method,
competitive parity method
all-you-can-afford method
objective and task method

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19
Q

Define the percentage of sales method of budgeting

A

it bases the communication budget on a specified percentage of past or projected sales.

  • simple, and stable budget from year to year
  • assums the relationship between communications and sales is both direct and static. Also triggers decreased budget amounts when sales slump.
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20
Q

Define the competitive parity method

A

bases it marketing communications budget on the budgets of one or more of its competitors.
- calculated by finding infor about average amount companies spend on marketing communications and the average ratio of communication costs to sales by looking through industry or trade association publications.

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21
Q

What are the cons of the compeittive parity method?

A

may lead companies to

  1. allow competitor actions to influence how the company does business
  2. ignore its unique marketing goals.
  3. overlook how changes in a competitor’s current comminication spending patterns can affect the adequacy of a company’s budget and sales figures
  4. base its budget on misunderstood or misleading information.
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22
Q

Define the All you can afford method of budgeting

A

base their communication budgets on available

  • easily implemented
  • no relationship between spending and sales levels.
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23
Q

Define the objective and task method of budgeting

A

base their communication budgets on specific marketing objectives and the cost of meeting those objectives.
1. requires company to identify the specific goal it wants to acheive through marketing communications, and determine the types of activities needed to accomplish those goals + cost associated to theose actiities. and 3. set a budget adequate to cover identified costs.

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24
Q

After a company has determined its communication objectives and created a budget, it develops a communication plan, or media plan, that specifies what? (3)

A
  1. type of media in which communications will appear
  2. specific media vehicles in which communications will appear
  3. schedule of exposures for communications.
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25
Q

Wehn selecting media vehicles, insurers need to consider characteristics such as reach, frequency, and waste. define reach

A

Define Reach: refers to the total number of people exposed to a marketing message thorugh a given vehicle.

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26
Q

Wehn selecting media vehicles, insurers need to consider characteristics such as reach, frequency, and waste. define frequency

A

number of times the same people are exposed to a marking message in a particular vehicle in a given time period.

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27
Q

Wehn selecting media vehicles, insurers need to consider characteristics such as reach, frequency, and waste. define waste

A

number of nontarget customers exposed to a company’s marketing message.

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28
Q

What is media schedule?

A

describes the timing of exposures for a marketing message in a particular medium.
- the more times a message is heard the more likely it will be rememberd.

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29
Q

What 3 factors are used to determine hoe many times a company needs to repeat an advertising message

A
  1. buyer turn over- the rate at which new customers enter a market to purchase a product.
  2. purchase frequency- number of times customers buy a particular product or service.
  3. Forgetting rate- measure of how quickly customers forget a product or bran if no advertising appears.
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30
Q

What is a steady timing patter in terms of marketing communications?

A

the principal of delivering communications evenly throughout a specified period of time.

31
Q

What is a pulsing pattern of advertising?

A

delivers communications unevenly throughout a specified period of time.

32
Q

What is the advantages of personal selling as a marketing communication tools

A
  1. Build public relations.
  2. Educate customers.
  3. Build customer relationships
33
Q

Sales promotion can take one of two forms. Name and define them.

A
  1. trade sales promotion- focuses on sales representatives and is desgined to support sale efforts and recognize performances
  2. consumer sales promotion- support sales effotrs directed towards individual and organized buyers
34
Q

What is consumer advertising?

A

ads directed to individual and organizational purchases and can appear in any media.
- establish/reinforce a company’s or products image

35
Q

What is trade adverising?

A

directed towards the companies and sales intermediaries that sell a companys prodcut
-technical and is usually placed in specialty publications targeted to specific industries or occupations.

36
Q

Media used to deliver advertising messages can be divided into what 3 broad categories?

A
  1. broadcast media
  2. print media
  3. outdoor media
37
Q

what is addressable television advertising?

A

delivers different ads or groups of ads to different audiences via certain cable satellite, or internet delivery systems such as internet television or internet protocol television

38
Q

Describe internet television

A

usually offers prerecorded video content to viewers via the public internet.

39
Q

What is internet protocol television?

A

delivers content to viewers over a dedicated managed network controlled by a local cable, satellite, or telephone.,

40
Q

how is video advertising affecting regular television advertising

A

this can be used as online advertising. and can be targeted to customers at a lower cost than regular televsion advertising.

41
Q

Video advertisement takes one of 3 forms.

A
  1. linear video ads appear before, during, or after the video content, in the same way traditional television ad can play before, during, or after the program
  2. non-linear ads run concurrently with the video content so that viewers can see the ad while viewing the content
  3. companion ads, usually either test or display ads, wrap around the video content.
42
Q

What are examples of “earlier forms of online advertising”

A

banner adds: small, clickable advertisements that appear on web pages
search ads: ads that appear on web pages in response to search engine inquiries.

43
Q

What is digital advertising?

A

uses internet technologies to deliver video and/or test messages to consumers via email, social media sites, and mobile devices.

44
Q

what is programmatic advertising?

A

trade-based dystem conducted inan automated marketplace.

-

45
Q

what is an advertising campaign

A

a coordinated series of advertisements designed to meet a company;s overall advertising objectives.

46
Q

What is an advertising agency?

A

a third party company that provides clients with a variety of advertising-related services.

47
Q

What is a communication oriented advertising objective?

A

seeks to increase customer recohnition of, interest in, and knowledge about a prodcut or comapny

48
Q

what is a sales-oriented advertising objecgtive?

A

describes the lvel of sales or market share a company wants to reach.

49
Q

Why is it important to set an objective for advertising? What decisions will it help the company make?

A
  1. types of ads it will use
  2. amount of information it will include in advertisements
  3. message it delivers
  4. type of appeal it wants to make
  5. execution style it uses.
50
Q

What is the execution style of an advertisement?

A

the specific presentation uses to transform the advertisements appeal into a message.

51
Q

The amount of money a company budgets into its advertisement campagne is dependable on what

A
  1. product characteristics- new vs old product.
  2. market characteristics
  3. media costs
52
Q

Name 4 types of execution styles of advetising

A
  1. story line
  2. testimonials
    3 mood
  3. association
53
Q

T or F

publicity can present information ina more credible format than advertisment?

A

In most cases yet.

it can also be used to manage the image of a company or industry.

54
Q

What information can be delivered thorugh a company’s publicity?

A
  1. company acheivements
  2. new initiatives
  3. community service activities.
55
Q

How can companies create a positive response from the media through their publicity?

A

they can assure it
1. targets the right audience
2. goes through the right media specialist
3. appears in the right style/format
4 .doesnt compete with other new stories.

56
Q

What it the purpose of pretesting advertisements?

A

it measures how well an advertisement performs on a limited basis before the sponsoring comapny runs the adsvertisement ina full-scale campaign.

57
Q

How can companys pretest advertisements? name 3 examples

A
  1. direct comparison test
  2. a laboratory test
  3. prerollout test
58
Q

What is a direct comaprison test?

A

showing target market customres several advertisements and asking them to reach each ad on specific features

59
Q

What is a laboratory test?

A

showing tagert market customers one or more advertisements and measuing theur speicifc physiocolgical responses

60
Q

What is a prerolloout test?

A

exposing target market customers to an advertisement in a real-life contest and then asking them to evaluate the advertisement effectievness.

61
Q

What are some examples of posttest evaluations methods used to test advertisements after a launching campagne

A
  1. recall test
  2. recognition test
  3. attitude test
  4. inquiry test
62
Q

What is recall testing?

A

used to measure how well customers remember the advertsiments.

63
Q

what is an adided recal test.

A

provides participants informaiton to jog their memory, or recall, of a particular advertisement.

64
Q

What is an unadied recall test?

A

measures how well participants recall an advertisement without prompts or cues

65
Q

What is recohnition tests?

A

used to determine if customers remember seeing a particular advertisement and how much of the message they remember

66
Q

What is an attitude test?

A

used to measure and compare customers views and beliefs about a company or a product before and after their exposure to an advertisement.

67
Q

What is an inquiry test?

A

used to measure the number of responses or inquiries generated by an advertisement that invites customers to call, write or click on a web link for additional information about a product or service.

68
Q

The NAIC unfair trade practices act identifies general practices that are prohibited if they committed what?

A
  1. flagrantly in conscious disregard of the law,

2. so frequentyly as to indicate a general business practuce.

69
Q

The NAIC unfaire trade practices act specifically prohibits insurers from inducing the purchase, lapse, forfeiture, exchange, conversion, or surrender of any policy misrepresenting what?

A
  1. contract terms or conditions
  2. benefits payable under the contract
  3. dividends or surplus shares that will be paid or that have previously been paid on any policy.
  4. premoim rates inorder to induce the purchase, lapse, fofeiture, exchamge concernsion or surrender of any policy.
  5. any policy as being shares of stock.
  6. any insurers own or another insurers financial condition and form leading customers to velive that the state or government endoses a particular insurance activities, guarantees retur, or insurance product or provides payment of insurance obligations.
70
Q

The NAIC advertisement of life insurance and annuities model regulation sets term of the regulation, advetisements for life insurance or annuity contracts and they cannot do what?

A
  1. include terms or information that may be misleading or deceptive to a person of average education/intelligence
  2. omit material information if the ommission would mislead or deceive purchasers
  3. minimized, obscure, or hide required disclosures wihtin the test of the advertisment
  4. make unfair or incomplete comparisons of policiies, benefits or rates offered by other products or other insurers.
  5. make derogatory comments about other insurers, sales intermediaries, policies, services, or marketing methods.
  6. include statements, pictures, or illustrations that misrepresent the financial condition, age, insurance in force, or ranking of the insuere.
71
Q

The advertisement of life insurance and Annuities Model regulation states advertisement contracts must do what?

A
  1. use the words life insurace or annuity inthe name of the prodcut
  2. prominently describe any premium change for life insurance policies with nonlevel premiums
  3. disclose, whenever applicable if an insurer reaserves the right to change the amount of the premium during the policy term
  4. describe any limitaiton of benefits for policies with graded or modified benefits.
72
Q

What is the Life Insurance Disclosure Model Regulation state>

A

requires insurers to provide prospective life insurance buyers with a standardized buyers guide and a policy summary.

73
Q

What does the life insurers buyer’s guide do?

A

describes in general language the basic type of life insurance and the costs and beenfits involved with each type, how to determine an amount of insurance needed, and other factors buys should consider before buying a prodcut

74
Q

What is a policy summary

A

contains detailed information about the specific policy being considered for purchase, including the name of the policy and included riders, the name and address of the insurer and the sales intermediary, and the date of the summary was prepared.
- includes annual premium amount, basic death benfit, and total cash surrender benefits for the policy.

LOMA 320- ISTAR (10 decks)

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