Suggestion and conclusion
There are many aids of marketing of products but the challenges are
also there. The external environment of insurance market changes
time to time, the customer expectations are increased, they need good
technology services at quick.
The aim of marketing of insurance product is to create customer and
generate profit through customer satisfaction. The insurance
marketing focuses on the formulation of an ideal mix for insurance
business so that the insurance organization survives and thrives in the
right perspective.
The government policy changes and low productivity and high cost of
agency organization, Illiteracy of people many challenges, by giving
high technology services to the customer, giving special training to the
agents so that they can convince the customers in rural areas.
The marketing of insurance really helps the companies and customers
to know what type of insurance are in the market.
So in todays world MARKETING is the life of Insurance
companies
Life insurance or life assurance is a contract between the policy owner and
the insurer, where the insurer agrees to pay a designated beneficiary a sum
of money upon the occurrence of the insured individual's or individuals'
death or other event, such as terminal illness or critical illness. In return,
the policy owner agrees to pay a stipulated amount at regular intervals or
in lump sums.
MARKETING --MIX FOR LIFEINSURANCE
COMPANIES:
1. PRODUCT: An Insurance company sells services and therefore
services are their product. The first level is that of basic service
package which includes core service, facilitating services and
supporting services. The second level is that of an augmented service
offering where accessibility interaction and customer participation is
given equal importance in delivering the service product. The third
level is that of the market communication of the service offering as
in its absence the augmentation service package doesn't have any
relevance to the customer. When a person or an organisation buys
an life Insurance policy from the insurance company, he not only
buys a policy, but along with it the assistance and advice of the
agent, the prestige of the insurance company and the facilities of
claims and compensation.
2. PRICING: The life insurance business the pricing decisions are
concerned with:
i. The premium charged against the policies
ii. Interest charged for defaulting the payment of premium and
credit facility
iii. Commission charged for underwriting and consultancy
activities.
The strategies may be high or low pricing keeping in view the level or
standard of customers or the policyholders.
3. PLACE: This component of the marketing mix is related to two
important facts
(a)Managing the Life Insurance personnel
(b) Locating a branch office.
In addition to the agents, the front-line staff also needs an intensive
training programme to focus mainly on behavioural management.
Therefore place is important but other than place what is more important is
wide distribution of policies through banks or financial institutions
directly. It is known as Bancassurance.
PHYSICAL DISTRIBUTION:
Distribution is a key determinant of success for all insurance companies.
Today, the nationalized insurers have a large reach and presence in India.
Buyers prefer a face-to-face interaction and they place a high premium on
brand names and reliability. As the awareness increases, the product
becomes simpler and they become off-the-shelf commodity products. of
alliance between insurers and banks will emerge,
4. Promotion: It includes the various ways of communicating to the
customers of what the company has to offer. It is about communicating
about the benefits of using a particular product or service rather than just
talking about its features.
In a country like India, the rate of illiteracy is very high and the rural
economy has dominance in the national economy. It is essential to have
both personal and impersonal promotion strategies.
PEOPLE: Being a service industry which involves a high level of people
interaction, it is very important to use this resource efficiently in order to
satisfy customers. An essential ingredient to any service provision is the
use of appropriate staff and people. Consumers make judgments and
deliver perceptions of the service based on the employees they interact
with. Staff should have the appropriate interpersonal skills, aptitude, and
service knowledge to provide the service that consumers are paying for.
6. PROCESS: The speed and accuracy of payment is of great importance.
The processing method should be easy and convenient to the customers.
Instalment schemes should be streamlined to cater to the ever growing
demands of the customers. IT & Data Warehousing will smoothen the
process flow.
7. PHYSICAL EVIDENCE: In Life Insurance marketing Physical
evidence is an essential ingredient of the service mix, consumers will
make perceptions based on their sight of the service provision which will
have an impact on the organisations perceptual plan of the service includes
facility design, equipment signage, employee dress, tangibles, reports and
statements. It gives an identity by which users recognize the company.
CONCLUSION:
From above discussion that in marketing of life insurance 7P's have a
important role to make business of insurance without these or lose any one
all marketing strategies is insufficient to make insurance sales.but if
insurance industry consider to 8th one - physical evidence it make more
sale because of signage advantage which customer want this
time,customer behaviour is to gain more facility
