Study 6 - Marketing in Insurance

Question 1

What are four (4) main CATEGORIES OF INFORMATION ABOUT CONSUMERS that are likely to help when developing a marketing plan?

Answer 1

1. ) Demographics
2. ) Buying Behaviour
3. ) Psychographics
4. ) Location

Question 2

______ is a category of information about consumers that describes the characteristics of a population such as; age, gender, marital status, education level, income level, family size

Answer 2

Demographics

Question 3

______ is a category of information about consumers that refers to information about HOW and WHEN consumers purchase good and services

Answer 3

Buying Behaviour

Question 4

______ is a category of information about consumers that classifies people according to their ATTITUDES and ASPIRATIONS

Answer 4

Psychographics

Question 5

______ is a category of information about consumers that differentiates consumers by where they live or work and businesses by whether they are local, regional, national or international in scope

Answer 5

Location (Geographic) Segmentation

Question 6

Why is market segmentation an important concept in marketing?

Answer 6

Market segmentation allows a marketing team to identify

• which segments of a market are big enough to justify funding,
• which have the potential for growth and increased value,
• which are not dominated by competitors, and
• those which show a genuine need for the products and services offered.

Question 7

Why is policy retention important to an insurer?

Answer 7

• Acquiring a new customer is expensive. There is the marketing costs of acquisition, running background checks, site inspections,
• Usually commission is not earned in the first year by a broker.
• On renewal that is when the costs are lower and the client is more profitable.

Question 8

What are four (4) ways that marketing strategies can be affected?

Answer 8

1. ) Dominance - is the insurer the dominant player or a leader or a follower?
2. ) Competitive Advantage - does the insurer have a competitive advantage already?
3. ) Innovation - is the insurer and innovator, leader, late follower?
4. ) What is the businesses growth strategy? - are they looking to get new business, xsell to existing clients, diversify into new areas?

Question 9

What are marketing objectives?

Answer 9

Marketing objectives are SMART goals:

• Specific
• Measurable
• Attainable
• Relevant
• Time-based

Question 10

What are sales forecasts?

Answer 10

Sales forecasts are the SMART goals linked with projected profits

Question 11

Why is it important to monitor and analyze results?

Answer 11

• in order to respond to changes in the market;
• to determine whether they are on track
• to determine whether assumptions made about the environment were correct
• to detect unforeseen market changes

Question 12

What is positioning?

Answer 12

Positioning is when an organization has expertise is a specific area and is offering specialized products.

Question 13

What are three (3) types of distributors when it comes to marketing promotion and communication?

Answer 13

A distributor is responsible for determining customer needs, matching them to a product or service, issuing the appropriate contract, provide ongoing service and updating the contract as required.

Distributors can be:

• Agents
• Brokers,
• Direct