Caib 4 Chapter 6

Front 1

Definition of marketing:

Back 1

A system of business activities designed to plan, promote, price and distribute want-satisfying products, services and ideas to target markets in order to achieve the objectives of both the consumer and the company.

Front 2

4 elements of the marketing mix:

Back 2

1) System of business Activities consists of multiple tasks coming together with different people both internally and externally.

2) Value it is critical to create value for clients and communicate that “good value”

3) Products, Services, and Ideas there is more to marketing than advertising, there is now a much greater focus on the marketing of services. Managers realize they need to put an attractive offering in front of their clients if they are going to get their business in the future.

4) Objectives of the consumer and the organization marketing is all about the building of a long-term relationship, clients must be satisfied that a product or service meets their needs and the company must achieve its objectives in order for the relationship to be built.

Front 3

The evolution of marketing:

Back 3

Marketing as a Toolkit: Use to be 4 p’s but this is far too simplistic of a view. There are many other factors that influence client satisfaction and the desire for return business.

Marketing as Strategy: marketers have realized that client satisfaction is influenced by multiple factors like how they are treated and how they feel. The Strategy approach considers market segmentation, differentiation, and market positioning

Marketing as a culture: everyone is focused on the client and achieving client satisfaction. The goal is to create an atmosphere where clients will not only come back again and again but will tell their friends and family how good the company is.

Front 4

3 fundamental aspects of a strategic approach to marketing:

Back 4

1) Market Segmentation: which segments of the client market it wants to do business with.

2) Differentiation: doing things that will set the company apart from the competition.

3) Market Positioning: what kind of company it wants to be and what post it wants to occupy in the market.

Front 5

What is meant by the intangibility of a product?

Back 5

The client cannot see it, touch it, or taste it. The client pays for it and having nothing to show for it at the end of the day.

Front 6

Product component of the brokerages marketing mix:

Back 6

Determines which product line to offer, the services surrounding the core products, the choice of brands to offer, and the manner in which the products will be packaged.

Front 7

What is included in the brokerage’s price component?

Back 7

The basic price for the product, credit terms, and fees.

Front 8

What is included in the brokerage’s price component?

Back 8

The basic price for the product, credit terms, and fees.

Front 9

The important distribution issues for an insurance brokerage:

Back 9

Relate to the “place” component of the distribution function - how convenient is the brokerage to deal with? How easy is it for the client to buy from the brokerage.

Front 10

Two types of advertising used by brokerages:

Back 10

1) brokerage develops an advertising campaign directed towards a specific market segment.

2) brokerage advertises the fact that they are knowledgeable insurance people.

Front 11

Why public relations is so important to a brokerage:

Back 11

It is the employees who determine, through what they say or do, how people feel about doing business with a brokerage.

Front 12

Positioning and differential advantages:

Back 12

Positioning advantage: how the brokerage is perceived by clients in relation to competing brokerages.

Differential advantage: any feature, service, or product offered by the brokerage which differentiates it from others. Provides an advantage because clients deem it as being important to them.

Front 13

3 unique components of a marketing action plan:

Back 13

1) Financial Schedules

2) Timetable

3) Evaluation Procedures

Front 14

Market SEGMENT

Back 14

Each segment consists of individual clients who have similar needs and wants.

Front 15

Market SEGMENT

Back 15

Each segment consists of individual clients who have similar needs and wants.

Front 16

Market SEGMENTATION:

Back 16

The process of dividing the total market into sub-markets.

Sub-markets are known as market segments

Front 17

Market SEGMENT

Back 17

Each segment consists of individual clients who have similar needs and wants.

Front 18

Categories used to identify client segments:

Back 18

1) Demographics: Age, gender, life cycle, education, occupation, ethnic background

2) Geographic Information: City size, urban-rural, climate

3) Psychographics: personality, social class, lifestyle

4) Behavioural variables: how clients behave with respect to the purchase and usage of the product. (Do they shop around each year? How to they pay? What coverages to they have?)

5) Relationships variables: how clients perceive their relationships with the brokerage or even if they feel a relationship exists.

Front 19

Why relationship variables are important in market segmentation:

Back 19

Little value to brokerage to attempt to get closer to a client through personalized communication or any other means of the client does not want the relationship to develop.

Front 20

Target marketing and the principles that guide target market selection:

Back 20

We should target client segments for particular attention that fits with the kind of business we are, and which we want to be.

We have to match the resources of the brokerage with the target market.

Front 21

Target marketing and the principles that guide target market selection:

Back 21

We should target client segments for particular attention that fits with the kind of business we are, and which we want to be.

We have to match the resources of the brokerage with the target market.

Front 22

4 strategies used to develop the marketing mix for a selected target market:

Back 22

1) Undifferentiated: one marketing approach for the entire market. All clients are treated alike.

2) Differentiated: there is a different marketing mix for each of the recognized target markets.

3) Niche Marketing: developed when a company has selected only one target market and concentrates all of its efforts on that market.

4) Customized Marketing: allows marketer to use a different marketing mix for each client.

Front 23

7 Steps of the selling process:

Back 23

1) prospect and qualify

2) set objectives

3) make the initial contact

4) probe for needs

5) present the proposal

6) overcome objections & Close

7) follow-up

Front 24

The 6 step buying process:

Back 24

1) problem recognition

2) identify and analyze solutions

3) identify sources

4) compare and decide

5) make the purchase

6) evaluation

Front 25

3 benefits of undertaking research to look at the brokerages from the perspective of the client or prospect:

Back 25

1) brokers will focus on those activities which matter most to the clients

2) clients will appreciate being contacted by a brokerage which is interested in their opinions

3) training can be tailored to respond specifically to those deficiencies identified by clients and prospects.

Front 26

Some important characteristics brokers (‘the product’) should display or possess:

Back 26

1) attitude: professional, responsible , positive, confident, sincere approach

2) appearance: Present themselves professionally

3) knowledge: Ensure that they know their brokerage, their products and services, the insurance industry, etc.

4) motivation: motivated to succeed, to help their clients and their coworkers, and to contribute to the success of the brokerage.

5) Commitment: committed to excellence, personal growth, and the satisfaction of their clients needs.