Chapter 6 - Marketing in Insurance

Market Research

Systematic gathering of information about a market’s size and trends.

Demographics

Statistics showing characteristics of a population such as age, gender, and income.

Market Research

Systematic gathering of information about a market’s size and trends.

Demographics

Statistics showing characteristics of a population such as age, gender, and income.

Buying Behaviour

Information about how and when consumers purchase goods and services.

Psychographics

Study and classification of people according to their attitudes and aspirations.

Market Segmentation

Dividing a larger group of customers into smaller sections based on similarities.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position.

Marketing Strategy

Defines how an organization engages its customers, potential customers, and competitors.

Digital Marketing

Leveraging online channels and platforms to promote products and services.

Public Relations

Activities promoting public understanding and sympathy for a company.

Advertising

Building awareness of a product or service through various media.

Crisis Communication

Managing communication in response to negative events or speculation.

Sales Promotion

Marketing tactics aimed at stimulating demand for a product or service.

Public Image

The perception of a company by clients and potential clients.

Sales Forecasting

Estimating future sales based on past sales data and market analysis.

Merger and Acquisition (M&A)

The process of companies merging or acquiring another company to grow market share.

Economies of Scale

Cost advantages and efficiencies achieved as a company increases its size and output.

Target Market

A specific group of consumers identified for marketing purposes.

Positioning Statement

A statement that defines how a brand is perceived relative to competitors.

Customer Acquisition Cost

The total cost of acquiring a new customer.

Mass Marketing

A marketing strategy aimed at reaching as many customers as possible without targeting segments.

Competitive Analysis

Evaluating competitors in terms of size, share, standing, and methods.

Online Advertising

Promoting products or services using the internet, including ads on social media and websites.

Customer Relationship Management (CRM)

Strategies for managing a company’s interactions with current and potential customers.

Influencer Marketing

Using influential figures to promote products and engage consumers.

Market Opportunity

A favorable situation that could lead to increased sales or profits.

Broad vs. Niche Market

Refers to targeting a wide audience versus a specific, defined segment.

Loyalty Programs

Incentives designed to retain and reward customers for continued purchase.

Brand Awareness

The extent to which consumers recognize and recall a brand.

Messaging Strategy

How a company communicates its value proposition to a target audience.

Sales Territory

A specific geographic area assigned to a salesperson or sales team.

Product Positioning

Establishing a product's image or identity in relation to consumer needs.

Targeting Strategy

The method of selecting which segments of the market to focus on.

Consumer Trust

The confidence consumers have in a brand's reliability and integrity.

SEO (Search Engine Optimization)

The practice of optimizing a website to rank higher in search engine results.

Market Penetration

The percentage of customers using a product compared to the total number of potential customers.

Insurance Underwriting

The process of evaluating and deciding the terms of insurance coverage for a policy.

Brand Equity

The value added to a product by having a well-known brand name.

Sales Channels

The various pathways through which a product or service reaches the customer.

Consumer Insights

Understanding consumer behavior to inform marketing strategies.

Retention Rate

The percentage of customers a company retains over a period.

Value Proposition

The promise of value to be delivered to customers.

Cross-Selling

Selling additional products or services to existing customers.

E-commerce

Buying and selling of goods or services over the internet.

Market Dislocation

A situation where a significant player exits a market, causing disruption.

Quantitative Research

Research that collects and analyzes numerical data.

Qualitative Research

Research that seeks to understand human behavior through interviews, focus groups, etc.

Customer Needs Assessment

Identifying the specific needs of customers in order to tailor products.

Consumer Behavior

The study of how individuals make decisions to spend their resources.

Risk Management

The identification, assessment, and prioritization of risks followed by coordinated efforts to minimize or control them.

Brand Positioning

Creating a distinct image or identity for a brand in the minds of consumers.

Email Marketing

Using emails to send advertisements, request business, or solicit sales.

User Experience (UX)

The overall experience a person has while using a product, particularly in terms of how pleasing or effective it is.

Social Media Engagement

How actively a company interacts with users on social media platforms.

Promotional Budget

The financial plan for marketing and promotional activities.

Referral Marketing

Encouraging existing customers to refer new customers to a business.

Community Engagement

Efforts by an organization to connect and contribute to the local community.

Data Analytics

The process of examining data sets to draw conclusions about the information they contain.

Personal Selling

Direct interaction between a sales representative and a customer.

Market Insights

Understanding market conditions, dynamics, and trends.

Sales Metrics

Quantitative measures used to evaluate sales performance.

Content Marketing

Creating valuable content to attract and engage a target audience.

Influencer Partnerships

Collaborating with influencers to promote products or services.

Market Research Tools

Technologies and methodologies used to gather market intelligence.

Advertising Campaign

A coordinated series of linked advertisements with a single idea or theme.

Social Proof

The phenomenon where people rely on the feedback of others when making decisions.

Customer Satisfaction Scores

Metrics to measure how products or services meet customer expectations.

Return on Investment (ROI)

A performance measure that evaluates the efficiency of an investment.

Lead Generation

The process of attracting and converting prospects into potential customers.

Insurance Product Features

Characteristics of an insurance policy that provide value to the customer.

Stakeholder Engagement

The process of involving individuals, groups, or organizations that may be affected by a decision or project.

Feedback Loop

The process of using consumer feedback to improve products and services.

Product Lifecycle

The progression of a product through introduction, growth, maturity, and decline stages.

Insurance Claims Process

The procedure through which an insured party requests coverage under an insurance contract.

Crisis Management Plan

A strategy for dealing with emergencies or public relations crises.

Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Market Trend Analysis

Assessing market trends to identify emerging patterns and shifts.

Networking Events

Opportunities for professionals to connect and build relationships with others in their industry.

Lifestyle Segmentation

Dividing markets based on consumer lifestyles and behaviors.

Digital Presence

The online visibility and accessibility of a business.

Risk Assessment

The identification and evaluation of risks involved in a business operation.

Customer Advocacy

Designating customers' interests as a priority within a business.

Lead Nurturing

Building relationships with potential customers throughout the buying process.

Humor in Advertising

Using humor to engage an audience and make ads memorable.

Brand Loyalty

Consumers' commitment to repurchase or continue using a brand.

Campaign Performance Measurement

Analyzing the success of marketing campaigns based on metrics.

Ethical Marketing

Marketing practices that consider the moral and ethical implications of the marketing effort.

Insurance Policy Coverage

The extent of protection and benefits provided by an insurance policy.

Target Market Research

Investigating to understand the demographics and preferences of a potential customer base.

Market Entry Strategy

A plan for selling goods or services in a new market.

Product Diversification

Offering a variety of products to reach different segments of the market.

Business Model

The plan implemented by a company to generate revenue and make a profit.

Campaign Objectives

Goals an organization aims to achieve through its marketing campaign.

Promotional Mix

The combination of promotional tools used to reach the marketing objectives.

Channel of Distribution

Pathway through which goods and services flow from the manufacturer to the consumer.

Logistics

Which of the following is not typically considered one of the components of the modern marketing mix?

Understand and target customer needs and preferences

Market research primarily helps insurance companies to:

The company’s annual revenue

Which of the following is an example of demographic information for a commercial client?

Target as many people as possible without segmentation

Mass marketing is most appropriate when a company wants to:

Psychographic

What type of segmentation involves classifying consumers based on hobbies and attitudes?

Define market segmentation and explain its purpose in insurance marketing.

Market segmentation is the process of dividing a broad market into subgroups of consumers with similar needs, characteristics, or behaviors. In insurance marketing, it allows companies to tailor products and marketing strategies to specific groups, improving the effectiveness of marketing efforts.