Chapter 6 - Marketing Flashcards
3 meanings of marketing in the insurance world.
- A broker placing business with an insurer.
- Insurer promoting products to broker.
- Insurer promoting products to consumers.
4 P’s of marketing
- Price
- Place
- Product
- Promotion
Marketing as a strategy - fundamental strategies.
- Market Segmentation
- which segments the company wants to do business with. - Differentiation
- doing things to set company apart from competition, so long as client perceives them as important. - Positioning
- what position does the company want to occupy in the market.
Marketing - Product
- Which product line to offer
- Services surrounding core products
- Choice of brands to offer
- Product packaging or bundles.
Define positioning advantage
How the brokerage is perceived by clients compared to other brokerages.
Define differential advantage
Feature/Service/Product offered by brokerage which differentiates it from others and provides an advantage.
Components of marketing action plan, only used by very large brokerages.
- Financial schedules.
- Timetables.
- Evaluation procedures.
5 most commonly used categories of client segments
- Demographics.
- Geographics.
- Psychographics.
- Behavioral variables.
- Relationship variables.
4 basic target market strategies
- Undifferentiated.
- same for every market. - Differentiated.
- different mix for each target market. - Niche Marketing.
- only ONE target market. - Customized marketing.
- different mix for each client.
Define marketing.
System of business activities designed to plan, promote, price, and distribute want-satisfying products, services, and ideas to target markets to achieve objectives of both consumer and company.
The definition of marketing raises 4 important aspects.
- System of business activities.
- marketing is everyone’s responsibility. - Value
- clients must perceive value. - Products, Services, Ideas.
- marketing has evolved to focus on services, not things. - Objectives of consumer and company.
- company wants customer to come back, customer wants to feel needs are satisfied.
The evolution of marketing
- Marketing as a toolkit.
- 4 p’s.
- far too simplistic. - Marketing as a strategy.
- client satisfaction is more than the 4 p’s.
- no longer about “selling”, but retaining. - Marketing as culture.
- everyone who works for the company and everything the company does is focused on the client.
What challenges do brokerages face regarding value?
- Creating value in the minds of clients.
- Giving clients a reason to deal with them instead of the competition.
What is bundling?
Encouraging clients to buy all of their insurance from you by tying homeowners and auto coverage into a single policy.
What is promotional advertising?
- Designed to generate a specific sale.
- Campaign directed toward a specific market segment.
- Example: advertising campaign adding new coverage to that already purchased by existing clients.
