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39 Cards in this Set
- Front
- Back
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What is the sole reason for the marketing? |
Client satisfaction |
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What is the definition of marketing |
A system of business activities which are designed to plan, promote, price, and distribute want-satisfyin products, services, and ideas to target markets in order to achieve the objectives of both the consumer and the company |
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What is a critical role of marketing? |
To create value for clients and communicate that they will get good value by dealing with the company |
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What is the bottom line end-goal of marketing? |
Building a long-term relationship with clients by satisfying their needs. Clients must be satisfied that a product or service meets their needs and the company must achieve its objectives in order for a relationship to be built. |
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Explain marketing as a toolkit |
Belief that if a company works the 4 P's of marketing properly client satisfaction is guaranteed (price, place, product, and promotion) If a company has a great product and it is priced low enough, clients will come from far and wide to buy from that company |
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Explain marketing as a strategy |
The company examines the markets it operates in, considers the clients it wishes to do business with, and then develops appropriate marketing strategies to attract and retain those clients |
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What marketing strategies are used when marketing as a strategy? |
1. Marketing segmentation - deciding what segments of the client market it wants to do business with 2. Differentiation - doing things that will set the company apart from the competition (giving the client a reason to deal with you rather than the competition) 3. Market positioning - deciding what kind of company you want to be and what position you want to occupy in the market |
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Explain marketing as a culture |
Everyone who works for the company and everything that the company does is focused on the client and on achieving client satisfaction |
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What are the four Ps of the marketing mix? |
1. Product 2. Price 3. Promotion 4. Place |
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What is the 'product' component of marketing? |
Determines which product line to offer, the services surrounding the core products, the choice of brands to offer, and the manner in which products will be packaged together |
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What is the 'price' component of marketing? |
Includes basic price for the product, credit terms, and fees Basic price is usually found in a rate manual Premium fluctuations will depend on the existing economic conditions and the brokerage's willingness to reduce its commissions |
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What is the 'place' component of marketing? |
Where a brokerages facilities are located Have to make decisions about who products and services will be delivered to the clients: - whether or not to have a call centre, whether to have an internet presence, whether to offer insurance services through the internet |
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What is the 'promotion' component of marketing? |
1. Personal presentations 2. Advertising 3. Public relations 4. Direct Marketing |
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What is promotional advertising? |
Advertising that is specifically designed to generate a sale of a specific nature |
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What is corporate advertising? |
Advertising which is not based on the insurance product or coverage but rather on creating a positive image for the brokerage |
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What is public relations meant to do? |
They are designed to earn the acceptance and confidence of the public. Involve generating news about the brokerage on creating a positive impression in the community. Objective is to create a positive image for the bokerage. |
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What is direct marketing? |
marketing efforts which are directed at individual clients, based upon the brokerages knowledge of the characteristics of the individual client |
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Why are people important to marketing? |
Services are often inseparable from those who produce them for the clients. The clients judgement of the value of the service received from a brokerage is partially based on their interactions with the people who work there. |
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What is marketing management? |
Involves applying a brokerages resources to take advantage of its market opportunities |
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What is positioning advantage? |
How a brokerage is perceived by clients in relations to competing brokerages |
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what is differential advantage? |
Refers to any feature, service, or product offered by the brokerage which differentiates it from others and provides an advantage because clients deem it as being important to them |
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What parts are unique to an action plan for marketing? |
Financial schedules (forecasted sales, expenses and profits, budgets) Timetable (when various activities will be carried out) Evaluation Procedures (what will be measured, how/when the performance will be evaluated) Must be flexible enough to permit changes throughout the year |
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What is market segmentation? What are market segments usually based on? |
The process of dividing the total market into sub-markets (the sub-markets are market segments) Characteristics like geography, demographics, psychographics, and behaviour |
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What is the top-down approach to market segmentation? |
They start with the mass market and divide it into smaller segments |
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What is the bottom-up approach to market segmentation? |
Starts with information about individual clients and defining the segments based on these characteristics. Allows marketer to develop a clearer picture of the segments currently being served and the types of clients they should target in the future |
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What do client profiles allow brokerages to do? |
Categorize client groups based on the characteristics of individual cleitns |
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What are some often used demographics? |
1. Demographics 2. Age (important for types of insurance needed throughout lifetime) 3. Gender (many products are traditionally purchased by men or women) 4. Life Cycle (what stage in life they're at) 5. Education (better educated = more likely to ask questions) 6. Occupation (income levels are often used because they indicate ability and likelihood to purchase) 7. Ethnic Background |
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What are some often used geographic information? |
1. City size 2. Urban vs. Rural (affects client preferences & insurance needs) 3. Climate (affects insurance needs) 4. Population (affects incidence of crime, accidents, and services) May target specific neighbourhoods for direct marketing efforts |
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What are psychographic variables?
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1. Personality 2. Social Class 3. Lifestyle May give insight to client preference |
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What are behavioural variables? |
How clients behave with respect to the purchase and usage of the product. Brokers should be interested in whether clients shop around each year at renewal, how they pay for insurance, what items are covered by the polcy, the types of policies, and what claims have been made |
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What are relationship variables? |
A brokerage has to understand how clients perceive their relationships with he broker or if the client feels a relationship exists in order to use relationship variables to ID market segments It's of little value for a broker to attempt to get closer to a client through personal communication or the means if the client does not want the relationship to develop (it may actually annoy the client!) |
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What must be considered when selecting target segments? |
1. That the target segments are compatible with the goals and the image of the brokerage 2. Have to match the resources of the brokerage with the target market |
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What are 4 market strategies? |
1. Undifferentiated (one marketing approach for the entire market) -- i.e. Walmart 2. Differentiated (a different marketing mix for each of the recognized target markets) -- i.e. McDonalds 3. Niche (developed when a company has selected only one target market and concentrates all of its efforts on that market) 4. Customized (Allows the marketer to us a different marketing mix for each client) -- is due to enhancement of the database and its capabilities |
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What are the seven steps to the sales process? |
1. Prospect & Qualify 2. Set Objectives 3. Make the Initial Contact 4. Probe for Needs 5. Present the Proposal 6. Overcome Objections & Close 7. Follow-Up |
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What are the 6 steps of the buying process? |
1. Problem Recognition 2. Identify and analyze solutions (searches for solutions to the problem) 3. Identify Sources (look externally for solutions) 4. Compare and Decide (now ready to choose a seller) 5. Make the Purchase 6. Evaluation |
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What is the greatest flaw in the selling process? |
It does not adequately address the buyers perspective. Most clients or prospects will not tell broker management that they are not satisfied with the broker who is asking for their business -- they simply will not buy from the brokerage again |
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What benefits does measuring sales performance from a clients or purchasers viewpoint have? |
1. Brokers will focus on those activities which matter most to the clients 2. Clients will appreciate being contact 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 |
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What are some important characteristics of the individual broker? |
1. Attitude 2. Appearance 3. Knowledge 4. Motivation 5. Commitment |
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What do high-performing brokers do? |
View themselves as a service centre Recognize there are 2 separate/distinct groups of clients -- internal (coworkers) and external (clients, adjusters, underwriters) Brokers must get close to both their external and internal groups of clients. They need to apply the principles of relationship building to both internal and external clients |
