This article will be looking at the assistance which Aviva provides and how the services the business enterprise offer change from a typical processing firm. Considering the theoretical issues of intangibility, heterogeneity, inseparability and perishability which affect the various components of the assistance marketing mixture of Aviva's products provided to their customers.
Aviva is the sixth-largest insurance group on the globe. It has a turnover of over Ј47. 1 billion.
Aviva provides more than 44. 5 million customers with insurance, personal savings and investment products. They are really one of Europe's leading providers of Auto insurance, Motor insurance, Life insurance, Home insurance, Health insurance, Travel cover, Personal mishap insurance, Dog or cat insurance and Business insurance.
Aviva's main activities will be the provision of general and life insurance, long-term personal savings products and finance management services. The group has around 36, 600 employees, Ј379 billion of property under management and 43 million customers.
Aviva's Main subsidiaries are:
Aviva Life - Pensions, opportunities, LIFE INSURANCE COVERAGE and long-term savings (previously Norwich Union)
Aviva Insurance - General Insurance
Aviva Traders - Fund Management (previously Morley Fund Management)
Aviva is positioned among the UK's top 10 most valuable brands in 2012 and has been voted the UK's top life, standard and health insurance provider by insurance intermediaries. Aviva seeks for superior long-term investment performance which is UK's one of the most economically strong investment company.
Aviva has an extensive range of value-for-money, good quality products - investments, retirement, security and professional medical - designed and changing to meet your needs, both now and in the future.
Aviva was made by way of a merger of two British isles insurance companies, Norwich Union and CGU plc. In October 2009 the company decided to focus on its commercial insurance sector and demonstrate its commitment to brokerages by launching their 'find a broker' service, using the British Insurance Brokers Relationship search engine. To help them with this endeavour, Paul Whitehouse was recruited to experience the part of an effective hairdresser running three salons. The subject matter of the campaign centered on business insurance through insurance broker agents. The closing line of the plan was "We're in business to keep you in business".
Marketing is the power of an company to supply the right product, at the right price, via the right outlet stores and presented in the correct way. Furthermore to product, price, place and advertising, services marketing demands three additional Ps - people, functions and physical proof.
The notion of classification influencing the marketing blend often expands our understanding of the marketing combination itself. For example excluding product classifications such as tangibility, reputation, heterogeneity, inseparability, perish-ability and possession which can be associated with service, we can go through the marketing combine as simply four P's: The product, the price, the area, and the campaign. This initial notion of a marketing combine started in the 1960's when produced by Neil Borden in his publication: "The idea of the Marketing Mix" (Borden, 1965) In this article Borden lists various elements of the marketing mix for manufacturers, twelve in total, saying the list "can be long or brief depending on how far one needs to travel in his classification and sub-classification of the marketing steps. " Out of this list has derived the four P's of the marketing mixture we realize today.
These four P's make up the raw product without any service factor, the actual product, where it comes, the campaign to the mark consumer and the selling price. There is probably no evidence to show almost any customer support in the four P's marketing combination, can be thought of as "distinctly producer-orientated. " (Kotler, Armstrong, Harker, & Brennan, 2009)
Theoretical issues of Intangibility, Heterogeneity, Inseparability and Perishability are as follows
Intangibility is a distinctive feature of service which cannot be seen physically, experienced, tasted or touched as physical goods are. For example whenever we watch a movie in the theatre, we are amused by seeing it. Entertainment is the outcome of the service that is sent.
Issues induced by intangibility are
Lack of service inventories: Services cannot be stored as the physical goods are.
Lack of patent coverage: As services are intangible, they cannot be patent covered as the physical goods are. Service proposed by one company can be made available from other company in different way.
Difficulty in communicating services: Goods can be physically viewed, but whereas services aren't physically shown to customers. It's hard for the companies to convince the customer to buy make the products that are offered as services. E. g. Insurance
Difficulty in pricing services: Services proposed by companies differ no two services can be same as customers' needs are different. Services are customised and hence tend to have fixed costing.
Heterogeneity is a unique attribute of service that reflects the difference in the service that is provided from one customer to other customer. For instance when a customer would go to a restaurant and purchased food would vary kind from the other customer and no customer's experience is the same. In the same way no one's tailor made jewellery looks likewise as it's unique to the customers' requirements.
Issues brought on by heterogeneity
Service standardization and quality control are difficult to achieve
Services provided by different providers within the same location have a tendency to be same.
Mood and skills of an individual provider differ from day-to-day
Inseparability is a unique characteristic of service which exhibits the association between your people or company which gives service and the individual who is employed in getting the service and various customers who are indirectly or immediately getting the knowledge. For example when a customer wants to use an web connection, the sales team of the internet company need not interact face to face with the client to give the info about the product. But whereas in a creation process like Saloon, the customer has to be physically show get his haircut.
Issues induced by inseparability
Physical connection of the service provider to the service: To be able to supply the service to the customer, the service agency must be bodily present and Face-to-face relationship with customers makes employee's satisfaction critical when they are not able to provide proper guidance to customers.
Involvement of the customer in the production techniques: Customers participation may vary according to the requirement that the client be physically show receive the service, i. e. for a oral service, customer needs to be physically present in order to resolve his or her problem related to tooth.
Involvement of other customers in the development process: Customers occurrence is required in a few service plus some customers often discuss a typical service experience and this shared experience can be negative or positive depending after the experience the client gets from the service he has received.
Perishability is a unique characteristic of service in which the service can't be saved. Unused services cannot be reserved or neither can be inventoried. For example seats in a theatre can be inventoried for a time period before the purchase of the solution and can't be inventoried following the show is finished. Another example of perishability is fresh meats, it can be stored for several time period but once it sold it is totally perished.
Issues induced by Perishability
Matching resource and demand is a significant task for the service provider, when there is an increased demand of service, than companies makes the way to obtain the service maximum. When there's a higher demand, than the provider gives optimal resource level.
There is not any point in creating a product or service that no one wants to buy. Companies try to find out what the clients need and then develop the right product that appeals to customers.
A produce is we produce. If we produce goods this means tangible product and when we produce or generate services, it means intangible service product. Something is just what a seller sells and what buyer will buy. Thus, Aviva provides insurance services and therefore insurance services are their products.
Aviva is the leading company offering insurance services to the users. Aside from offering life insurance policies, in addition they offer underwriting and consulting services. When a person or an organisation buys insurance coverage from Aviva, he purchases an insurance plan along with it the assistance and the prestige of the insurance company and the facilities of statements and compensation. It is natural that the clients expect an acceptable return for his or her investment and Aviva as insurance provider wants to maximize their success.
Aviva could have intangibility issue as the company can expose new insurance plan which would supply the customer the good thing about having to take single insurance policy for your family. The company can protect the product brand but it cannot restrict other insurance companies to create similar system with a different name, hence you can find lack of patent protection. The company provides different schemes in line with the customers' needs and the rates of the insurance is not similar for each customer.
A product is only worthy of what customers are prepared to shell out the dough and the price needs to compete.
In insurance business the pricing decisions are worried with the prime charged from the policies a customer would take and also interest is priced for defaulting the payment of premium.
The factors that Aviva uses for identifying the high grade rates under a life insurance coverage plan are mortality, charge and interest. The high quality rates are modified if there are any significant changes like
Mortality: When deciding upon the prices strategy the common rate of mortality is one of the key considerations that it requires in to caution.
Expenses: The expense of processing, fee to real estate agents, reinsurance companies as well as sign up are all designed into the price of instalments, premium sum and forms the integral part of the rates strategy.
Interest: Interest is one of the major factors which see whether the customer's willingness to purchase insurance. Customers will not be willing to put their funds to invest in insurance if the interest levels provided by finance institutions are much greater than the perceived dividends from the insurance premiums.
Aviva could have intangibility concern in pricing, Aviva provides different varieties of insurances. Customers have a tendency to choose which product they would want to choose so that as insurance is not same for all your customers the purchase price varies with regards to the premium and the word that a customer is will to move for. Hence rates the service performs a major role in Aviva.
The place where customers buy something must be appropriate and convenient for the client and the product must be accessible in the right place at the right time.
Place performs an important role at Aviva. It offers branches all over the UK and also has insurance agents in order to offer the services. This can help the company to process the assistance to the end-user so the distance between services that are guaranteed and services that are offered is bridged over.
Aviva also offers customers to apply for insurance policies online. This helps the customers to get their insurance without heading to the branch or even to contact agent and will save you customers' time.
Aviva would have inseparability issues, if a customer wants to use insurance he has to speak to the staff and get the information needed to choose the best kind of product he desires. Aviva must have more dedicated advisers to teach the customers for taking insurance and detailing the great things about having insurance off their company.
Promotion is just how an organization communicates what it does and what it provides to the customers. Good promotion is essential for an organization to acquire better income looked after shows what advantages the clients get when they choose their services.
Aviva promotes its services by advertising in tv set advertising, radio and billboards. This can help Aviva to improve its sales. In addition, it provides loyalty savings to existing customers which helps the company to attract new customers by word of mouth. The business also uses immediate email and online campaigns to target new customers.
Aviva also offers special promotional offers which help the business to get new customers who want to switch from a preexisting insurance company.
When it comes to promotion, Aviva would have heterogeneity and intangibility issues as no customer could have the same kind of insurance policy. Insurance policy depends on various factors like age, health etc. so the company has to customise the policy according to the customer needs in order that they could entice more customers.
The company offers promotional offers to customers which are intangibility in aspect and this helps it be hard for the business to actually influence the customer to have their service as they are not physical products which a customer can feel.
Anyone who comes in contact with customers can make the feeling and it could have positive or negative. It really is out most significant for a company to ensure that all employees who have contact with customers are properly trained and also must have right kind of folks for the job.
Understanding the client better allows planning appropriate products. Aviva being a service industry and entails a high level of folks interaction, Aviva makes sure that all its staff is given regular training so that they can maintain strong human relationships with the clients. They have got 24 hour helpline with multi-lingual personnel to answer customer concerns regarding them guidelines or any other service related issues.
When it comes to people, Aviva would have perishability concern. If a customer is unhappy with the service that the business is providing then he have a tendency to look for better services that other company offers. Employees should make sure that they understand what the client issues are and make an effort to help them out so that they don't loose the customer.
The procedure for giving a service to a customer is essential in conditions of customer satisfaction such as waiting around times, the information directed at customers and what sort of staff helps the clients are essential for a firm to keep the customers happy. Customers are not considering the details of the way the business works.
Aviva's process is customer friendly. They suggest customers about the products that they give and tell the customers which product is most effective. Aviva gets the reputation of rate and exactness of repayment. Their control method is easy and convenient to the customers. The instalment strategies they provide cater to the ever growing requirements of the clients. They offer different techniques to provide the demand of customers who want to go for the service. The IT & Data Warehousing system of Aviva helps the business to truly have a unified way to provide service large no. of customers proficiently and keep maintaining their overheads. This helps to improve customer service levels.
When it comes to process, Aviva can have issues related to inseparability, intangibility and perishability because they have to have advertise regularly about their products that they provide, new schemes that the company is presenting to its existing customers as well as new customers. Service and quality control could also have adverse effect on the sales with their products. If they don't offer customers the assistance that they need promptly, customers might feel unhappy about the service that they get which brings about switchover to another company.
Service cannot be experienced before it is sent. Physical evidence distributed by an organisation must validate the assumptions of the client. As the client cannot experience the service before buying it, nevertheless they can discuss the service with other people about the experience they have got by choosing their product.
Distribution is an integral determinant of success for everyone insurance companies. Today, the insurance providers have a sizable reach and presence throughout UK. Building a distribution network is very costly and frustrating.
Aviva provides everything on their website so that customers can have all the information about the merchandise and the assistance the business provides.
Aviva in addition has been using distant distribution stations such as cell phone and email to be able to attain more customers so that they can avoid intermediaries, bring down overheads and increase success.
Aviva provides an entire selection of products including motor, home and life insurance and pensions.
The seven p's of Marketing Mix
The marketing combination is the blend of marketing activities that an organisation partcipates in to be able to best meet up with the needs of its targeted market. Taking product classification in to account when coping with marketing of services, it expands the knowledge of the initial 4p's. The Insurance business deals in reselling services and therefore anticipated weightage in the forming of marketing mixture for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i. e. the merchandise, its price, place, promotion, people, process & physical attraction. The above mentioned 7 P's can be used for marketing of Insurance products.
The services that Aviva offers as stated above is influenced by issues of classification of being Intangibility, Heterogeneity, Inseparability and Perishability which predicated on the researched information is performed well by the business. Aviva offers services that are competitive with other insurance companies on price and service support which has helped the company to be rated as one of the UK's top 10 10 most effective brands in 2012 and sixth-largest insurance group on the globe. It is becoming one global brand with 43 million customers and has over 300 years of heritage.