Posted at 10.04.2018
It is challenging to make marketing strategies in promoting insurance services. By conceptualizing the modern marketing promotional strategies the insurance business can be better, the profitability can be increased and the service can be matched up as per the client requirement. Today's research is a descriptive in nature and brings about significant difference in the promotional strategies used by general public and private companies in India. The study shows about the most amazing tools to market insurance services.
Key Words: Insurance promotional strategies
The most significant component of marketing mix is advertising. For different sectors promotion has different aspects. The promotional strategy followed by any business is informing, persuading, and influencing in a consumers decision making. It's important for nonprofit and income oriented organization. The primary purpose of promotional strategy is:
To expand the market.
To sustain the current market position.
To reach a specific market.
To provide information to customer for differentiating between product and services.
To increase and stabilize the sale.
Different business have different and multiple promotional strategy. Today all insurance firms rely on promotional strategy as it is one of the top tools to provide competitive benefit in this competitive world. Which means this escalates the need to review the promotional strategies of different insurance companies( general public and private companies). The types of advertising strategies adopted are advertising, sales advertising, publicity, personal selling, telemarketing, Immediate marketing. One cannot refuse this fact that every component of promotional mix have to be given full attention. From past research done by different researcher we find that general public sector organization is certainly going via an image problem so they nee to d to look at the push technique to in which each one of these components of campaign need to donate to meet up with the organizational goal and meet the challenges of the industry. While making promotional decision the insurance broker need to concentrate on creativity in order to enhance profitability.
Many firms they have advertising because so many effective nonpersonal campaign. It really is a paid nonpersonal communication usually directing a large range of potential buyer. Advertising expenses vary from company to company and from industry to industry. A couple of in essence two types of advertising product advertising and institutional advertising. Product advertising involves the offering goods and services. Institutional advertising is mainly done for ideas, beliefs, or for goodwill of any business or organizations.
With advertising now insurance company need to believe in favor of publicity, this element of promotion if found in right fashion makes the professional effort proactive. The ad's can be insensitive, but the insurance areas find publicity think it is more effective, because the views messages, judgment facts and characters a publicized by mass media. Publicity is a tool to market business without making any expenses and therefore is called an unpaid form of persuasive communication bearing high rate of sensitivity.
Word of mouth area communication results into a wider publicity which sensitise the process of influencing the impulse of prospect in insurance service provided. The satisfied customers, the cultural reformist, the judgment leaders, act as person to person communicator for the business. The organization involved with providing insurance like banking institutions, brokers, need to assign credited weightage to the grade of service provided to the user in order that they are satisfied and allow the responsibility of promoting the services. The word of mouth is also called the hidden sales force for the insurance industry. The other element of person to person is to seek cooperation and recommend from the satisfied customer. Since they are habitual customer of the services provided so they discuss this to there friends and relatives about their experience. The other promotional strategies like advertising, publicity, sales advertising may be insensitive and inadequate but the positive sense of friends and relatives can't be ineffective. Which means this makes us recognize that sevice provided by insurance provider to there customer. That's the reason the most crucial thing that of promotion of an company product is the quality of service provid by the insurance provider. It could not be denyed that private insurance company use hidden sales team, so open public insurance group need to provide full focus on there promotional strategies.
As we find that in insurance company sales campaign is a tool use to promote sales to meet certain sales concentrate on. This is a momentary device that can be withdrawn after a specific period. It really is meant for both the person of service and the route found instrumental in promoting service. In insurance business the promoting business is the sales promotion tools. Different firm have been noticed using the sales advertising tools in various ways. Because the business environment is more competitive therefore the insurance provider need to innovate new tools of sales promotion to increase and reduce sales. For this reason background it makes a strong advocacy and only sales advertising for promoting insurance business. The senior executive of insurance company are the insurance policy maker who thinks in favor of making impressive tools. It is a great responsibility of the insurance provider that they keep carefully the innovation process energetic such that it is simple enough for the private and general population company to compete with foreign insurance provider.
This fact can't be denied the personal advertising is one of the top element of promotional mixture, so we can say that insurance business is significantly influenced by incrementing of real estate agents. If an insurance agent has an artwork of informing, sensing and persuading the potential policy holder then your process of any insurance provider is simplified. Companies know about this fact that that personal advertising is dependant on excellence of a person (who are agents). All this make it significant that the agencies have some remarkable properties such as perseverance, communicative potential, attractive personality and dedication to the occupation. This business cannot exist if the real estate agents stop working. Therefore the insurance corporation are supposed to assign credited weight age group to the brilliance in an person that is assigned these responsibility. These agents have to be incentivized satisfactorily to excersice the process of informing and persuading the prospect policy holder.
Telemarketing is one of the trend in the advertising strategies adopted by the company
It promote the merchandise by using two communication device like cell phone and television. International provider of insurance and bankers have find that is one of the effective tool of promoting a product. It is not always possible for any company to do personal selling face to face with a person as it incure more cost and time and at one time only 1 customer is there in order to save time, money and entice more customer telemarketing can be used. . telemarketing is a tool which promote business in which telemarketer with high communicative capacity retains on moving the process of convincing a person. Insurance company need to promote telemarketing in India more as the opportunities are usually more. Insurance companu cannot deny this reality some of the public sector insurance firms branches don't have telephonic services.
In Financial companies more importance is directed at the online facilities provided by the companies. As we find that in Insurance there are many quaries and grievance so if this system is increased by the company to address there customer then there won't be communication barrier. The greater communication is simple, effective and cheap it draw in the client. Today online purchase can be acquired for each and every thing so if the campaign of the insurance product is done online then it clear the uncertainties of cutomers.
The main goal of differentiating a product is by creating inimitable, sustainable competitive advantages over the opponents for a period. Insurance companies are anticipated to bring up attractive intend to joy there customer. Insurance companies can be differentiated in these areas:
This project is about the comparative research of promotional strategies of the private and general public general insurance companies, we will discuss about different promotional strategies adopted by the three community and three private insurance provider.
The general population companies taken for comparability are:
Public Ltd Co
Private Ltd Co
National Insurance Co
New India Insurance Co
United India Insurance Co
NIC was established on 6th Dec 1906. After, 106 calendar year of incorporation, 37 many years of nationalized a decade delinking from GIC, NIC is the oldest insurance company of India, and among all the life span and general insurance companies to be the headquaterd of the eastern region of the country.
NIC has been the marketplace leader in north and eastern zone of INDIA.
NIC showed an outstanding business performance in the year 2011- 12 giving progress of 25%.
The profit gained in previous five yr is 331 Cr.
The Gross premium collected in the year 2010- 11(6246Cr) and 2011-12 (7785 Cr). Which ultimately shows substantial progress.
Under served market penetration award
Award for business command in nonlife category.
Strategic alliance with top auto companies.
Bancassurance relationship with leading banks.
373 Business centers.
Office on steering wheel in two city is launched.
63% market talk about of motor and health jointly.
Highest no of Electric motor policies released. (16538468)
They emphasis main on getting maximum customer at low cost. They targeted more on advertising to target there audience. printing media was the primary tool. They focused mainly on daily local and local newspapers which offered a good review
They also does product advert through outdoor screen. advertisement through print media served dual goal first for public announcement and send an internal motivation measure for inside customer. Print ad with link up with hero Honda build there brand equity. Electronic Advertising radio and TV is also used to be competitive in the market. By sponsoring different seminars, seminar event like quiz competition, social educational, musical, national and international suits, workshops etc they make a good general public relation.
Company involved in large jobs and the HO handles all the functions and the guidelines of these projects. The techno marketing section caries out various functions.
Guiding for new tasks and informing for new job.
Keeping touch with broker agents, bidder, financiers.
Conducting seminars and work look for clients.
NIA was founded by Durab TATA in 1919 and got nationalized in 1973. Largest range of office. first Indian non life insurance coverage company to reach 10073 cr gross high quality. Received 1st prize in highest customer satisfaction with automobile insurance provider.
The company has used various advertising multimedia to reach the urban, semi urban and rural people. Electronic media print mass media and outdoor marketing are being used for publicity goal. Hoardings and glow sign have been placed at major street junction, highways, railway train station, airports. Advertisements are shown on transit media like bus, train, barricades etc. Banners are viewed at different local occasions in rural areas. They participate in fairs, exhibition, and also sponsor social gathering, events, sports activities. Organizing workshops, customer education camps to teach customer. Because of this year the business ventured into tv and radio activities around India and also to all generation.
The techno team of new India guarantee co tries to keep to be at number one position by providing business of large and operational risk policies. New India dominate the marketplace in underwriting Mega risk guidelines. All the insurance firms try to bring increasingly more mega risk procedures.
Brokers channel top quality added - 790 Cr, 41% progress over last year.
Bank assurance channel premium added- 243 Cr
Major general public sector banks get excited about selling the guidelines of New India and after establishing their own commercial agency they have decided to copy their corporate company to SBI Genaral insurance co.
United India Insurance co was incorporated on 18th Feb 1938. After nationalization is continuing to grow with 18300 workforce 1340 office buildings and 1cr insurance plan holder. Covering employees of big public sector companies. Been a pioneer in taking insurance to the rural people by implementing general health procedures.
UII has conducted various promotion campaing in a variety of area of the country through mass contact program, so as to increasethe awareness of rural insurance. They have got undertaken publicity campaign which involve TV, radio, banner, bus pannel advert, sponsorship of events, hordings, metro channels, glow ball advertisement at airports, so that they end up being the most preffered brand in the non life insurance. To show the co vision they integrated it on co calendar, diaries, brochures, twelve-monthly report.
The company is focusing on mainly retailing product in rural market, and sociable sector and can increase the shares in various sociable oriented structure of condition and central government. They have began with internet marketing by launching their online portal on 18th February 2012 and prpose to up grade their online marketing functions in this season.
Hdfc ergo standard insurance company is a joint venture between HDFC and ERGO International AG, the primary insurance entity of Munich re Group. They are present in 71 places and with 80 branches with a worker basic of 1234 proffessional. Granted by ICRA for higest lay claim paying capacity. ICAI award for brilliance in financial reporting.
The company offer different product by mix distribution channels. The company is focusing in strengthening there agency make. They are trying to expand their physical reach. The web sale of policies through company website, which started this past year is accepted by customers and is now stretching to retail products. The Multi route approach of the business and the distribution model enables to reach wider customer Bottom part.
The promotional strategies adopted by HDFC ERGO is very solid by using the various distribution channels in promotion, radio, TV commercials, print mass media and electronic marketing.
ICICI Lombard is the joint venture between ICICI bank and Fairfax financial positioning limited a Canada established financial service company. It's the largest private sector insurance provider in India. Issued 76 lac procedures and resolved 44 lac cases and claim disposal proportion of 99%. They recived fantastic peacock award for CSR, fantastic peacock innovators award this year 2010, ratated highest in client satisfaction in Automobile insurance, customer and brand loyalty award in non life insurance coverage.
ICICI Lombard health insurance ad plan was honoured at the 2nd CMO Asia award function.
Best advertising campaign for the year.
Brand excellence in BFSI. (increased in conditions of brand loyalty and customer reach)
Use of diverse mass media to reach target audience to boost brand awareness.
To improve the scale of businesses and increase channel responsiveness technology has enjoyed an important role. To enhance channel service capability and customer connect company has used various techno marketing initiatives.
Key effort by them is I partner for the route partners self applied service. Retail and SME product were put into this platform which is a benchmark in the industry.
Tata AIG is a joint venture between TATA Group and North american international group Inc. They were honored for best travel insurance in year 2012, best non urban coverage award.
They are into business of various product with the alliance of different programs. They have got conducted various publicity campaing in various area of the country through mass contact program, so as to increase the awareness of rural insurance. They have undertaken publicity campaign which involve Tv set, radio, banner, bus pannel advertisement, sponsorship of events, hordings, metro channels, glow ball ad at airports, so that they end up being the most preffered brand in the non life insurance. To show the co eye-sight they incorporated it on co calendar, diaries, brochures, annual report.
While formulating any marketing strategy, an insurance provider should focus attention on 1. consumer sovereignty, 2. Attitude, 3. responsiveness and personal skill of the working staff, 4. revitalizing the marketing department, 5. top management support given to the marketing office, 6. participation of marketing staff in key company decision (kumar Ashok 1991, with the same perspective, the prime aim of the analysis was to learn about the various promotional tools of private and general public insurer.
In India, to make comparative examination of customers conception for promotional there are few Strategies of private and general population" "sector insurance companies to find out key promotional tools for insurance services on the basis of customers response. Plus they find out that both types of companies take the help of virtually all types of mass media to promote their services in the united states. The major difference in promotional begin by private sector companies as compare to general population sector. The major difference in the promotional strategies implemented by the companies is two techniques of the promotion and they are "personal selling and direct marketing : on the other side the same are followed by privates sector companies. The explanation for this are high stability and less revenue orientation of open public sector company of India will not go for innovative strategies of campaign nonetheless they conducts plus they go for interactive marketing through internet but that is not promoted very much like private sector companies. Promotions had different aspects for different establishments, products and services.
Its final goal to talk positive word mouth among existing sector. The client must be ensured that services provided by the advertising nonetheless they are better in services, and particular company have been designed to give them a maximum value of there money and satisfactory risk cover all together. In brief, it could be said that in India whenever the dilemma of private and public sector comes always two things are considered that is General population sector is more reliable however, not so good in quality and innovativeness and private sector is not considered so reliable, there could be covered charges in the assistance and phony an deceptive information in the advertising but they are better in services quality. Private sector companies should be more true and reliable first like open public company. They have to gain the trust of the client. Private sector companies are implementing more force strategies attract and get the clients. this creates the difference between Promotional strategies adopted bye open public and private sector insurance firms.
Researches learned the difference in the promotional mixture of the companies. Studies notices that the insurance firms have emphatic frequencies for every single components of promotional mixture strategies used by different insurance companies.
Companies have emphasized more on telemarketing, advertising in electronic media and print out advertising and advertising companies as additional promotional combination strategies.
Researchers uncovered the that respondent have emphasize on general public relation and publicity, sales campaign and promotional tools to stimulate consumers.
The insurance companies believe that the market researcher and survey help advertising director of insurance companies to choose best blend of advertising to soaked up more possible customers.
As there can be an association between the general market trends and survey with flurry of marketing, it's advocated that efforts have to be diverted by the insurance companies to the proven department in insurance firms. Market research supply the specific information for insurance companies and enable these to opt for right mix of promotional strategies to advise and pursued the end user of the insurance products.
Researcher recommended that brand communication should cautiously done by the insurance companies to project the right kind of image in the mind of the customers and the consumer, researchers have already proved that there surely is some other expectation exist in the mind of customers of insurance.
Since the customers' prospects from an integral aspect of brand strategy predicated on which ideal brand placement is progressed further.
I have done my dissertation in New Delhi from 13. 12. 2012 to 11. 02. 2013. This project is on the secondary data available of 2 Open public sector and 2 private sector insurance companies.
The proposed study is usually to be centered around satisfying the following targets:
To compare promotional mix of public sector insurance provider with private sector insurance provider.
Effectiveness of promotional Blend.
Target Population- Public and private insurance companies
Sample Structure- Data basic of companies functioning in Delhi and NCR
Sampling Product- Person companies
Sampling method - Convenience
Sample size - 6
Method of Data Collection- Secondary data
HDFC ERGO General
The Above data demonstrates the top quality underwritten by New India insurance company is 28% which is highest among all the other six companies.
As we realize every financial service provided any where include risk and folks are bothered about the security from it. Where ever there exists uncertainty there is risk. Even the large in financial company takes insurance for their uncertainty. The Government of India has created history by providing back insurance business to private organization on 24th Oct 2000 by adding IRDA. Present situation shows that the organizations are contending in complex business environment. Paul Cox, (2007) discovered an undeniable fact that financial providers are not recognized highly trusted
promote insurance business is quite distinguished affair, increasing competition and efficiency of regulatory environment, complexity in the insurance services This is the time when insurance are providing new and impressive services, frequently in the market.