291 Module 3 Lesson 1

Marketing
Summary of Key Points

“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.”

The marketing mix is made up of the four Ps:

Product
Price
Place
Promotion

The product mix (product portfolio) is determined by the company’s product strategy and by
product development.

In insurance, Price = Financial Design = the combination of all of the product’s financial features.

In insurance, Place = Distribution.

In insurance, Promotion is composed of

Personal selling
Advertising
Sales promotion
Publicity

Personal selling is conversation between a producer and customer.

Advertising is paid communication by the insurer in the mass media.

Institutional advertising promotes an image of the company—used with customers
Product advertising promotes a specific product—used more often with producers

Sales promotions used in insurance include incentive programs for producers.

Publicity is information intended to bring a person, place, thing, or cause to the attention of the
public, such as news releases.

Elements of the marketing mix must:

Fit together and support each other
Align with strategic goals
Support company positioning

Positioning is a company’s efforts to create a unique market identity in customers’ minds.

Market segmentation: division of the total market into a series of smaller submarkets with
unique sets of needs.

Target marketing: evaluating market segments and selecting one or more to focus on.
Undifferentiated (mass) marketing targets the entire potential market and uses a single
marketing mix.
Concentrated marketing focuses on satisfying the needs of one segment of the total
market.

Copyright © 2009 LOMA (Life Office Management Association, Inc.) All rights reserved.
 Differentiated marketing divides the total market into segments with distinct needs and
uses different marketing mixes for each segment.

Sources of marketing information:

Internal databases contain internal records and reports illustrating the internal marketing
environment.
Marketing intelligence analyzes publicly available information, primarily about
competitors.
Marketing research: one-time or as-needed study of specific issues.

The marketing department

Is primarily responsible for advertising, market segmentation, target marketing, marketing
information.
Contributes to marketing strategy, product development (including financial design),
distribution and producer issues.

Copyright © 2009 LOMA (Life Office Management Association, Inc.) All rights reserved.