Page 31 - MARKETING & PUBLIC RELATIONS EBOOK IC88

CHAPTER - 6

STRATEGIES FOR INSURANCE MARKETING - I

CHAPTER INTRODUCTION

Marketing strategies will have to focus on all the elements of the Marketing Mix. This chapter and the
next deal with such strategies as may be applicable to the business of insurance. None of the ideas in
these two chapters have to be considered as prescriptive. Strategies will have to be necessarily
innovative, taking note of competition as well as of changes in the environment including development
in technology. `

LEARNING OUTCOMES

A. Understanding Strategies
B. Product Strategy
C. Product Differentiation
D. The Boston Matrix
E. Dissonance
F. Market Research
G. Pricing

A. UNDERSTANDING STRATEGIES

A strategy, briefly, is a long-term plan. It is how an organisation proposes to achieve a long-term
objective or mission. Strategic plans provide direction and all operational plans are derived therefrom.

Marketing concepts suggest that products are developed in response to specific demands made or
needs felt by the consumers. That is not always the case. Technological advancement or fortuitous
emergence of some by-product in the course of efforts to develop something else, may lead to creation
of needs and demands. The computer and synthetic detergents are two examples. The 'watkman' was
an idea thought of by the CEO of Sony, long before the market expressed a need. The internet is the
outcome of efforts of the USA to protect and preserve data in the event of an attack by the then USSR.
Its possibilities and impact on the lives of people around the world are still emerging.

B. PRODUCT STRATEGY

(a) Product Personality

By definition, a service is not produced. It is performed. Therefore, to refer to service as a product, is not
quite appropriate. Yet, such a reference makes it possible to apply to the service business, concepts
relating to the processes of developing, managing and marketing of goods.

(b)The Insurance Product

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