Study 6: Marketing In Insurance Flashcards
What are the four main categories of information about consumers that are helpful when developing a marketing plan?
A) Demographics, buying behaviour, psychographics, and location
B) Demographics, buying behaviour, psychographics and income
C) Demographics, buying behaviour, education and location
D) Demographics, age, psychographics, and location
A) Demographics, buying behaviour, psychographics and location
There are four main categories of information about consumers that are likely to help when developing a marketing plan: demographics, buying behaviour, psychographics, and location.
What does market segmentation allow companies to do?
A) Allows them to target different groups one at a time
B) Allows for concentrated marketing efforts
C) Allows for special projects to evolve
D) Allows for better budgeting of promotion budget
B) Allows for concentrated marketing efforts.
A segment is a particular subgroup of customers. Segmentation of the market allows for concentrated marketing efforts.
Why is it important to keep a history of a company’s marketing strategy and performance?
A) helps to avoid repeating the same campaigns
B) Helps to control budgets and finance
C) Helps preserve institutional memory
D) Helps to develop current marketing plans
C) Helps preserve institutional memory
Keeping a concrete history of the company’s strategy and performance preserves institutional memory.
What is a niche market?
A) Market for collectibles
B) Maurer for high-end goods
C) Market for the highest income earners only
D) Market that is an identifiable subgroup of a consumer market
D) Market that is an identifiable subgroup of a consumer market
A Niche market is an identifiable subgroup of a consumer market. An example of a niche market is antique cars.
Which of the following affects a marketing strategy?
A) Education
B) Innovation
C) Size of marketing department
D) GDP
B) Innovation
Marketing strategies are affected by dominance, competitive advantage, innovation, and strategy.
What strategies create a competitive advantage, leading to market penetration?
A) Cost, product or service differentiation, and innovation
B) Cost, product or service differentiation, and market segmentation
C) Cost, product or service differentiation, and pioneering
D) Cost, product or service differentiation, and close follower
B) Cost, product or service differentiation, and market segmentation
Strategies relating to market penetration and an organization’s sustainable competitive advantage involve cost, product or service differentiation, and market segmentation.
What is included in the innovation strategy?
A) Pioneering, close follower, and product differentiation
B) Pioneering, close follower, and market segmentation
C) Pioneering, close follower, and later follower
D) Pioneering, cost, and close follower
C) Pioneering, close follower, and later follower
Strategies relating to the organization’s status with respect to innovation in new products, services, and business model include: pioneering, close follower, and late follower.
Which of the following is part of an organization’s growth strategy?
A) Increase sales to existing customers
B) Scale back on new customers
C) Focus on brand recognition
D) Promote education
A) Increase sales to existing customers
Strategies related to achieving the organization’s growth include increasing sales to existing customers, targeting new customers, diversifying the market base, and intensifying sales efforts.
What is the goal of a promotion strategy?
A) Make consumers aware of the product
B) Increase brand recognition
C) Create products ties to a certain demographic
D) Keep a continuous stream of customers
A) Make consumers aware of the product
The goal is to make consumers aware of the product and to encourage them to act on its promotional message.
What are the three types of market distribution in property and casualty claims?
A) Brokers, agents, and financial institutions
B) Brokers, agents, and direct
C) Brokers, agents, and the state
D) Brokers, agents, and taxation
B) Brokers, agents, and direct
In P&C insurance there are three types of market distribution: brokers, agents, and direct. The strategy behind how a product is sold and distributed affects marketing choices.
Narrative: Explain why market research is important. (5 marks)
Importance of market research:
1) This research helps to plan a company’s promotional agenda to ensure that identified target markets find the company appealing
2) Helps to determine the needs, wants, and characteristics of current and potential customers
3) Systematically gathers information about a market’s size and trends
4) Statistics gathered in this way identify the size and scope of the consumer markets that insurers might want to target
5) Forecasts development patterns in specific areas of interest within consumer and commercial markets.
Narrative: Outline the sources of information used in gathering information for market research. (5 marks)
Sources of information
1) Government data about high-density population areas and spending levels in major categories
2) Local newspapers
3) Online searches
4) Regional real estate board
5) Statistics Canada
Narrative: Identify the different types of advertising avenues the insurance industry can use to promote its products and services. (5 marks)
Advertising in the insurance industry (any five of the following)
1) Magazines
2) Newspapers
3) Billboards
4) Radio
5) TV
6) Sponsored programs
7) Products packaging and inserts
8) Posters and Flyers
9) Directory listings
10) In-store displays
11) Internet through click-through advertising
12) Banners
13) Buttons
14) Sidebar advertisements
15) Pop-ups
