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21 Cards in this Set

  • Front
  • Back
What is Marketing?
 identifying:
 current position
 future opportunities
 market research
 statistical analysis
 Product Development
 Advertising
 customer service
Key Areas in Marketing (from Kong 41)
 Market Research
 Field Marketing
 Communication
 Advertising
Key Steps in Sales (from Kong 41)
 identify opportunities
 contact
 identify audience’s needs
 underwrite the risk
 sell the solution.
Keys to Successful Advertising and Promotion (from Kong 41)
 TV / Radio / Print
 The media depends on the:
 desired goal (e.g. brand awareness)
 target audience (location / demographics)
 cost
Challenges to MCO’s in Sales, Mktg, and Distribution (from Kong 41)
 Choice-based Competition
 Achieving sales goals
 E-commerce
 Meeting User expectations / demands
 Users = employers, employees, agents, providers, staff, Board, rating agencies.
HOW THE MARKETING PROCESS HAS CHANGED: THE PRODUCT DEVELOPMENT PROCESS
Product-Driven Approach – used by traditional group insurers
1. Generate ideas
2. Screen the ideas
3. Concept development
4. Business analysis
5. Product development
6. Test-marketing
7. Commercialization
8. Advertising
Market-Driven Approach – used by MCO's
1. Choose target market
2. Assess needs
3. Identify differential advantage
4. Strategize
5. Test marketing
6. Implementation
7. Advertising
Managed Care’s Impact on Marketing Methods
 MCO’s can charge less than Traditional ins cpys.
 MCO’s focus on Er & Ee choices
 MCO’s have caused a change from the Product-Driven approach to the Market-Driven approach
SALES AND INTERMEDIARIES
Group insurance has two levels of sale:
1. Sale of an insurance plan to the Plan Sponsor
2. Sale by the sponsor to the employees.
The intermediaries (brokers, agents, consultants):
 help the er purchase a plan
 help the er communicate / market it to the ees
 give advice on plan design and pricing
 help the employer in claim disputes
 suggest plan design alternatives upon renewal.
SALES DISTRIBUTION MODELS
Independent Brokers
 independent
 self-employed
Advantages
 require less capital and staff
Disadv:
 not committed to your company
 high commissions
 your product must be competitive
Used by:
 small ins cpys, selling to small er groups.
Captive Agents
 Same, but only represent one company’s products.
Group Field Force
 sell “wholesale” to Er group.
 captive
 full-time; paid a fee for services rendered
Adv:
 loyal
 wider distribution channel
Disadv:
 more overhead
Used by:
 large ins cpys selling to large er groups.
Direct Sales
 mass mailing, telemarketing, website marketing.
 good if brand name is recognized
Multiple Level Distribution Model
 Uses variety of brokers, retailers, wholesalers, agents, and telemarketers.

Adv:
 exploits whichever channel works best

Disadv:
 requires sophisticated sales mgmt and marketing support
 expensive

Used by:
 national-class MCO’s and ins cpys.
Sales to Individual Participants
 Needed when an employer offers multiple health plans
 Enrollment specialists conduct worksite meetings.
Additional Distribution Methods
 TV, newspaper, Internet, worksite marketing
 TV, newspaper, Internet, worksite marketingMARKET SEGMENTATION: HOW TO MARKET TO DIFFERENT MARKET SEGMENTS
 Market Segmentation means dividing the target markets by size or by industry.

Advantages of Market Segmentation:
 TV, newspaper, Internet, worksite marketingMARKET SEGMENTATION: HOW TO MARKET TO DIFFERENT MARKET SEGMENTS
 Market Segmentation means dividing the target markets by size or by industry.

Advantages of Market Segmentation:
Advantages of Market Segmentation:
 understand potential customers
 choose a product to develop
 choose a distribution channel
Marketing to Small Group ph’s:
 Small group marketing is heavily regulated:
 pricing
 underwriting
 guaranteed issue
 statutory plan designs
 In order to stay profitable in this environment, an Ins Cpy must keep distribution expenses to a minimum.
 Typical distribution method: Brokers/Agents; mass-marketing
Marketing to Large Group ph’s
 Not as heavily regulated.
 Flexibility in plan design is needed.
 The ins cpy’s group sales reps work with the group’s ee benefit representatives.
 sales / product expertise is needed
Marketing to the Decision Makers (from Kong 41)
 to Brokers/Agents/Consultants
 build strong relationships
 give them incentives to bring in good business
 to Ers
Ers want:
 financial stability of the plan
 compatibility with HR objectives
 a choice of plans
 to Ees
Ees want:
 a choice of plans,
 low cost,
 easy access to providers
 prompt claims adjudication

Done.