Page 18 - Life Insurance Today May 2016

family may have expanded, and he/she could have got a
promotion or other normal progression in life. All this will possibly purchase the product or selling the product to
definitely create an environment of new needs for some
life insurance products.
Generally every insurance agent should focus on getting
almost 80% of his/her business from his/her current
market comprising his/her existing customers. This is the
easiest way to increase his/her revenue.
Market penetration strategy can also be related to the
territory management that we often consider. Choosing a
limited geographical territory to work in (called a zone,
which is limited to 5/10 km in radius) will help us to have
a higher density of customers in a small geographical
which location will enhance branding and create more
awareness among customers. Market penetration strategy
increases the density of customers per square km.
3.2.2. Market development strategy (new markets,
existing products):
Here we market our existing product range in a new
market. This means that the product remains the same,
but it is marketed to new audience. Exporting the product,
or marketing it in a new region is example of market
development. Market development is the name given to
a growth strategy where the business seeks to sell its
existing products into new markets.
The organization here adopts a strategy of selling existing
products to new markets. This can be done either by a
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18 May 2016
better understanding of segmentation, i.e. who else can
new market overseas. ‘Market development’ is the name
given to a growth strategy where the business seeks to sell
its existing products into new markets.
There are mainly four possible ways of
approaching this strategy, which includes:
1. New geographical markets; for example exporting the
product to a new country.
2. New product dimensions or packaging: for example
i. Utilizing Direct Marketing - seeking for New
Distribution Channels;
ii. Different pricing policies to attract different
customers or create new market segments.
3.2.3. New product development strategy (existing
markets, new products):
This is a new product to be marketed to the existing
customers. Here we develop and innovate new product
offerings to replace existing ones. Such products are then
marketed to our existing customers. This often happens
with the auto markets where existing models are updated
or replaced and then marketed to existing customers.
The organization develop new products to sell within their
existing market, in the hope that they will gain more
custom and market share. For Example, Sony launching the
Play station 2 to replace their existing model. ‘Product
development’ is the name given to a growth strategy
where a business aims to introduce new products into
existing markets. This strategy may require the
development of new competencies and requires the
business to develop modified products which can appeal
to existing markets.
Quadrant II houses the 'New Product Development
Strategy' that helps an agent to increase his/her revenue.
This works on the premise that customers also need other
financial products like health insurance, term insurance
(as a co-lateral security for the house-building loan he/she
requires to avail), various Life Insurance Products on
pensions/ annuities and ULIPs (for his/her retirement &
complete financial planning).
If the agent cannot fulfill the need of his/her customer,
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