ins ii - session 2

7/30/2019 INS II - Session 2

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Insurance II

Session 2

Insurance Marketing:

Modern Views on Marketing, Marketing ofInsurance Products, Selling Experience and

Service Experience


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Marketing

Marketing is to know and understand the customer so

well that the product or service fits him and sells

itself.

Marketing should result in a customer who is willing

to buy.

Need to look at the business from the customers

rather than suppliers viewpoint.


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A simple marketing system

Communication

Goods / services

Money

Information

INDUSTRY(a collection

of sellers)

MARKET(a collection

of buyers)

Economists view market as a collection of buyers and sellers. Marketers

view buyers as constituting the market.


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Marketing and Selling

Sales orientation

attempts to increase

sales by informing and

persuading the

customers through

advertising and publicity,

tempting the customer

through promotion

including price reduction

and gift offers, and

personal salesmanship.

Marketing involves designingthe product, determining the

price, deciding how to

distribute, planning the media

and the messages foradvertisement and publicity.

Marketing focuses on the

customer and his behavioral

characteristics in a manner in

which selling did not.


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Marketing vs. Selling

FOCUS Needs and interest of thebuyer

Needs and interests of

seller

ATTITUDE Create pull from buyer Push products to buyer

PRODUCTDEVELOPMENT

Follows marketing activity Precedes sales

PRICE Determines cost Determined by cost

HORIZON LONG TERM (customer isimportant throughout)

SHORT TERM (customer

not important after sales)


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Marketing of Insurance

Marketing of a contingent promise.

Benefits to be realized at a future date

Insurance is like sand while bought, like gold when

it is realized.

Need for buying the product rarely felt.

Prospective buyer has his own special needs:

requires specialized solution through face-to-face

contact (in most cases).


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The Concept of Marketing

Modern Concept

Philosophy ofCaveat Vendor(let the seller beware) Products to match the customer needs (ULIP, Annuity,

Health Plans, Micro-insurance etc.)

Business decisions are market or customer oriented

Continuous evaluation and adjusting the product

characteristics to market needs

Traditional Concept

Philosophy ofCaveat Emptor(let the buyer beware) Goods are produced as per the decision of the Marketing

Manager and are put on the market (Traditional products

like Endowment, Whole-life etc.)


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Marketing of Life InsuranceThree Important Areas

Effective and successful

marketing depends upon

the quality of customers

experience in three areas:

Selling

Service

Relationship

Selling

ServiceRelationship


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The Selling Experience

Personal selling is dominant ininsurance industry

Need to follow a sequence ofsteps in personal selling

Selling an art, not taught somuch as caught

When we sell insurance, we sellourselves

Emphasis upon grooming,personality & communicationstyle

Steps in Personal Selling

Prospecting &Qualifying

Pre-approach Approach

Presentation

Objection Handling

Closing Follow-up


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PROSPECTING

AND

QUALIFYING

PRE-

APPROACHAPPROACH

PRESENTATION

AND

DEMONSTRATION

OVERCOMING

OBJECTIONS

CLOSING

FOLLOWUP

AND

MAINTENANCE


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The Service Experience

Performance of certain services heart of theinsurance contract

Insurer need not be confined to just services only,

but may expand its scope to new areas(Example - Star Customer Support, Star Health Initiative, MaxBupa Health Information, Health Articles etc.)

Main concern Quality of Service Delivery, as

experienced in real time by the customer Everybody swears by quality service reality may be

different


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The Relationship Experience

Where is the relationship ?

Out of sight, out of mind

Merely catchingcustomers or meeting

their service requests: Is it

enough?

A relationship is to be

established

2012-2030:

RenewalsReceived

2031:

Maturity ClaimPaid

2011:Policy issued

ins ii - session 2

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