Chapter 7 Flashcards
What are the FIVE (5) steps in the market research process?
Identify the problem or issue and the questions to be answered: For example, “When should a new package be introduced?”
Identify the research objectives: Research objectives may be exploratory, descriptive, or causal. Exploratory research provides a basic understanding that will allow the researcher to further identify the problem. Descriptive research then expands the researcher’s existing understanding of the problem. Causal research tests the researcher’s hypothesis of the causal relationship between the problem and its effect.
Determine which sources are available and establish a research approach: For instance, decide whether to gather a large amount of data or work with a small, focused sample.
Design the research method, including the form of the study, method for collecting data, and means of sampling: Data can be collected through telephone polls, live interviews, or online surveys.
Collect and compile the data
List and describe FOUR (4) common ways to segment individuals and organizations within a market.
Demographic segmentation: Differentiates consumers by age, life stage, gender, income, occupation, education, cultural background, and other qualities, and differentiates businesses by age, industry, size, or risk type.
Geographic segmentation: Differentiates consumers by where they live or work, and businesses by where they operate (locally, regionally, nationally, or internationally).
Psychographic segmentation: Uses a combination of psychological and demographic analysis to group customers based on personality and lifestyle traits or based on their values.
Behavioural segmentation: Examines lifestyle and socioeconomic classes of individuals, and the purchasing structures or buying situations of companies. Behavioural segmentation also evaluates customers’ needs, decision making potential, use of the product, and loyalty.
What questions can management ask to analyze their existing customers?
Are most customers in one particular market segment or sector?
Can the same product be sold to other market segments or sectors?
Does the current customer base have other needs that are not being met? (If so, what are they? Do opportunities exist to sell other policies to these customers or can existing coverages be upgraded?)
If current customer needs are not being met, can policies be improved?
Who makes the purchasing decisions? (At whom should the brokerage’s sales efforts be directed to have the desired effect?)
Application Question
Lamarck has been hired as a software developer to work on upgrading the technology at a large brokerage. Since he came from a technology firm, he spends his first few weeks learning about the work that is done at an insurance brokerage. He has now been assigned to create a plan for a technology system to assist the marketing department. He is meeting with Alyssa, the marketing director, to give him insight into the needs and activities of the marketing department.
Question 1
What are the processes and purpose of marketing?
Managing relationships with customers
Creating satisfaction for the client
Returning value for the company
Conception, pricing, promotion, and distribution of goods, services, and ideas
Creating and maintaining beneficial exchanges with target markets for the purpose of achieving organizational objectives
Planning, implementing, coordinating, and controlling marketing strategies
Application Question
Lamarck has been hired as a software developer to work on upgrading the technology at a large brokerage. Since he came from a technology firm, he spends his first few weeks learning about the work that is done at an insurance brokerage. He has now been assigned to create a plan for a technology system to assist the marketing department. He is meeting with Alyssa, the marketing director, to give him insight into the needs and activities of the marketing department.
What are some typical features of customer relationship management (CRM) software?
Customer management: Manages customer data, customer interaction, and marketing.
Automation: Automates aspects of managing the company-customer relationship.
Analytics: Provides lead generation through predictive analytics.
Customer analysis: Understands customer’s history and relationship with the company.
Customer catering: Back-end engine personalizes the customer experience and identifies sales opportunities.
Application Question
Lamarck has been hired as a software developer to work on upgrading the technology at a large brokerage. Since he came from a technology firm, he spends his first few weeks learning about the work that is done at an insurance brokerage. He has now been assigned to create a plan for a technology system to assist the marketing department. He is meeting with Alyssa, the marketing director, to give him insight into the needs and activities of the marketing department.
What are the key roles of marketing management?
Consistent measuring: Constantly measures the products or services against the moods of the marketplace.
Predicting future economic conditions: Estimates future economic climate.
Predicting brokerage adaptability: Estimates the brokerage’s ability to adapt to trend reversals and unforeseeable factors.
Competitor analysis: Measures the number and strength of competitors.
Recommendations: Recommends changes to the plan, as needed, based on analysis.
