cpcu 520 ch 3 review notes Flashcards
Primary demand for technology
ease of use
Activities performed by marketing
Marketing research, market dvelopment, marketing info, marketing planning, product development, advertising/promotion, customer and public relations, sales fulfillment
Two broad categories of market data
Secondary data and primary data
Secondary data
collected by other parties, research typically begins w/ this as it is immediately available @ no cost
Primary data
collection more expensive, addresses specific issues
Bases of market segmentation
Behavioristic (purchase behavior)
Geographic (geographic units)
Demographic (demographic variables ie age gender etc)
Psychographic (values, personalities etc)
Marketing segment should be
Accessible, substantial, responsive
marketing info activity system types
Inernal accounting system
Marketing monitoring system (external enviroment)
Typical marketing plan
product proposal/sales goals situational analysis marketing goals marketing strategies projected outcome
Product dvelopment steps
opportunity assesment, development of contract, uw and pricing, business forecast, regulatory requirements, distribution requirements, introduction
Insurance broker
independent bus owner/firm selling ins by representing customers rather than insurers
Distinction btwn independent agents/brokers & other distribution systems
ownership of agency expiration list
Compensation for independent agents/brokers
Flat percent commission, contingent or profit-sharing commission basedon volume or loss ratio goals
Independent agent networks/agent groups/agent clusters/agent alliances
independent agencies/brokerages joining together to gain advantages normally available only to lg national/regional brokers
managing general agents (MGA’s)
intermediaries btwn insurers and agents/brokers who sell ins directly to customer. Advantage: low fixed cost, specialty expertise, assumption of insurer activities