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15 Cards in this Set

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Define Marketing
Marketing is a system of business activities which are designed to plan, promote, price and distribute products and services to target markets where the goal is to achieve the objectives of the company and client satisfaction.
Insurance is an intangible Product because:
The client can not touch, taste, smell hear or see it. They pay for it but do not have anything to show for it. They view it as a commodity until they need to use it.
Reduce the perception of insurance as a commodity by:
Focusing on the purchase of security, peace of mind, convenient, fast, accurate claims service and comfort in knowing that they are dealing with a knowledgeable professional who will provide them w/ the products they need and will be there to help them out when they are in problematic times. In short, they are buying a relationship.
4 P's used in Marketing (Toolkit approach)
a. Product - consists of the lines, brands, services to offer and how products will be packaged together.

b. Price - of the product is found in rate manuals. Premiums often fluctuate with the economy.

c. Place - entails not only the companies location, but also how the products and services are going to be delivered to the client. Examples of this include 24 hour call centers, internet presence or days of the week in which they are open.

d. Promotion - of the company can be achieved by personal presentations, special promotions, advertising, public relations or direct marketing.
Promotion
a. Promotional Advertising - generated for a specific product.

b. Corporate Advertising - focused on creating a positive image for the brokerage.

c. Public Relation - activities are designed to generate a positive image of the brokerage in the community in hopes of generating new business.

d. Direct Marketing - is built solely on known characteristics of the client.
Strategic Marketing's three fundamental Strategies.
**1. Marketing Segmentation - is the process of dividing the total markets into sub markets (segments) based on characteristics such as demographics (age, gender, occupation, ethnicity), geography (population, climate, urban/rural), behavior (clients behavior with respect to purchase, payment and product usage), psychographics (personality, social class and lifestyle) and relationships (to see how clients view relationship). Bottom up approached is used (used to be top down)

2. Marketing Position - is where the brokerage decides what type of company it wants to be and where it wants to be positioned in the first place.

3. Positioning/Differentiation - to increase it's opportunities. Positioning advantage is the clients perception of how brokerages compares to other brokerages. A differential advantage occurs when a brokerage provides products/services that the client deems important. By doing so- Brokerage differentiated itself from competitors.
Two types of advertising brokerages could use when developing their promotion component
Personal Presentations - where an employee of the brokerage makes a presentation to a perspective client with a few of selling insurance.

Advertising - Advertising campaigns - Promotional (to generate sale of a specific nature) and Corporate advertising (focused on creating a positive image of the brokerage)
Why do brokerages undertake PR activities?
To earn the acceptance and confidence of the public. They involve generating news about the brokerage or creating a positive impression in the community.
Marketing Action Plan?
1. Financial Schedules - include a business analysis made up of forecasted sales, profits and budgets which outline the resources dedicated to each objective.

2. Timetable - illustrates when activities will be completed by.

3. Evaluation Procedures - are put in place so that periodic reviews can be completed to determine if changes are necessary and must be implemented.
Target Markets
Are the specific markets which brokerages are directing their marketing efforts.

When selecting the target markets for marketing segments, the brokerage ensures that the target markets are compatible with the goals and image of the brokerage.

Resources must be available to meet the needs of the markets.
Four target market strategies
Undifferentiated Marketing - occurs when a company uses the same marketing mix for the entire market. (Ex Walmart)

Differentiated Marketing - uses different marketing mixes for each target market. (Ex. McDonalds - kids/adults)

Niche Marketing - occurs when a company directs its efforts to one market (ex. Chuck Norris - bow flex)

Customized Marketing - occurs when a company develops a different marketing mix for each client. (ex. customized coupons)
There are seven steps to the sales approach
1) Prospect and Qualify

2) Set Objectives

3) Make the initial contact

4) Probe for needs

5) Present the proposal

6) Overcome objectives and close the deal

7) Follow up
Six steps of the buying process
1) Problem Recognition

2) Identify and analyze solutions

3) Identify and analyze solutions

4) Compare and decide

5) Purchase

6) Evaluation
Three benefits of measuring sales performance from the client's perspective
The brokers actually focusing on the activities that are most important to the client.

Clients appreciate being contacted and asked their opinion

Further training can be customized for brokers not meeting their clients needs.
Brokers are viewed as the product, identify the five elements that the broker must project to the client
1) Attitude - out there to do a job. Professional and Positive.

2) Appearance - professional appearance.

3) Knowledge - Technical knowledge

4) Motivation - motivated to keep going/take rejection.

5) Commitment - committed to doing their best the proper way.