role of mktg

7/27/2019 Role of MKTG

1/39

w

ww.t

hemegallery.com

Subject: Marketing insurance productsand services

IPGD- CORE SUBJECT

Covered in 33 sessions

Based on CII 945 Subject

Examination pattern: case studyThree hours are allowed for this paperwhich carries a total of 160 marks,

Part I 1 compulsory question (case study)

80 marks

Part II 2 questions selected from 3 (scenarios)

80 marks

Pass mark 55% i.e 88 marks


2/39

w

ww.t

hemegallery.com

Chapters and contents

Numbers Subject

Chapter 1 Role of marketing

Chapter 2 marketing strategy: planning steps, audit,SWOT

Chapter 3 Understanding customers: Mix, segmentation

Chapter 4 Product development and positioning: PLC

Chapter 5 Information gathering: market research,identifying customers and competitors

Chapter 6 Branding: establishment, importance,awareness, extension

Chapter 7 Communication: comm process, message, advt,PR, sales promotion

Chapter 8 Distribution and service, risk assessment ,

service delivery


3/39

LOGO

Chapter - 1

Introduction to Marketing


4/39

w

ww.t

hemegallery.com

Contents

Importance of customer3

Matching Process4

Market Types5

Marketing Definitions2

Role of marketing in insurance industry6

Importance of Customer

Market, Marketing fundamentals1


5/39

w

ww.t

hemegallery.com

What is market

Market has many meanings

Market is a physical space with shops wherebuying and selling takes place

Market refers to Demand-Supply situation(How is the Market; The Market is tight; Themarket is down)

It also refers to Demand (e.g., India is a big

market for electronic goods; Is there a marketfor toys? )

The term Market is also used as a verb i.e., tomarket goods or services


6/39

w

ww.t

hemegallery.com

Concept Contd.

Markets are old but marketing is new

Buyers and sellers used to meet at a

place called Market on fixed days and

exchange goods of fairly equal value

which is called the Barter system.

Even today the fixed market place

continues in rural areas, called Mandis or

Haths.


7/39

w

ww.t

hemegallery.com

What is marketing in general

Marketing is about identifying and understanding your

customer and giving them what they want. It's not justabout advertising and promoting your business.

Key to business success is the ability to satisfy current

customer needs and for continues success satisfy the

future needs as well. Hence here marketing plays a vital role. It goes beyond

understanding them. It uses the knowledge gained from

interaction and understanding to provided solutions to

customers requirements. Though it is used as common term, some say it is a

award winning advt, having drink with client, sending

greeting cards etc.


8/39

w

ww.t

hemegallery.com

Define marketing

There are a range of definitions to the term

Shortest def: Meeting needs profitably- ULIPpolices

The achievement of Corporate goals throughmeeting and exceeding customer needs betterthan the competitor

Marketing consists of individual andorganizational activities that facilitate and

expedite satisfying exchange relationships in adynamic environment through creation,distribution, promotion and pricing of goods,services and ideas


9/39

w

ww.t

hemegallery.com

Definitions continuous .

Philip Kotlerdefines it as a social and

managerial process by which individuals

and groups obtain what they need and

want, through creating and exchanging

products and value with others

Another definition by Kotlerismarketing

is not the art of finding clever ways to

dispose of what you make. It is art ofcreating genuine customer value.


10/39

w

ww.t

hemegallery.com

Another definition

marketing is the management processresponsible for identifying, anticipating and

satisfying customer requirements profitably

This definition highlights the customeras being atthe heart of marketing. It implies that marketing

has a central role to play in business success,

since it is concerned wit the creation and retention

of customers.


11/39

w

ww.t

hemegallery.com

Another definition

Defining markets

Quantifying the needs of customer groupswithin these markets

Putting together the value proposition to

meet these needs communicating theirvalue proposition to all the people in theorgn responsible for delivering them

Playing an appropriate part in deliveringthe value proposition

monitoring the value actually delivered.


12/39

w

ww.t

hemegallery.com

Contd.

Marketing helps to:

Add value and brings a better match betweenproducts and needs

Reduces wastages (if product is not needed)

Improve effectiveness of communication bybetter targeting of messages

Cuts cost through more effective distribution

arrangementsImprove better understanding between the

organisation and the customer


13/39

w

ww.t

hemegallery.com

What is marketed

Goods

Services

Events

Experiences Persons

Places

Properties

Organizations Information

Ideas


14/39

w

ww.t

hemegallery.com

Selling

Focuses on needs and

interests of seller

Pushes products to buyer

Target is vaguely defined

customer

Profits through sales

volume

Product development

precedes sales

Marketing

Focuses on needs and

interests of buyer

Creates pull from buyer

Target is well defined

customer

Profits through value

satisfaction

Product development

follows Marketing activity


15/39

w

ww.t

hemegallery.com

Contd.

Selling

Packaging is done tocontain/protect theproduct

Price is determined by

costs Selling is subordinate to

production

Customer is notimportant after sales

Horizon (limit/boundary)is short term

Marketing

Packaging is done to addvalue/appeal too

Price determines cost

Production is marketingcentral (mktg. oriented)

Customer is important

throughout Horizon is long term


16/39

w

ww.t

hemegallery.com

Contd.

Sales orientation

Attempts to increase sales by informing and persuadingthe customer through advertising and publicity temptinghim to buy through price reduction & gift offers andpersonal salesmanship

Marketing orientation

Recognizes all the above attempts and adds awareness touse distinct characteristics of Market more effectively in(i) designing the product (ii) determining the price (iii)

deciding as to how to distribute (iv) planning the mediaand messages for advertisement and publicity


17/39

w

ww.t

hemegallery.com

Factors which influence marketing

Developments of marketing has followed the developments of trade

Marketing

Amount ofcompetition

Target salesvolume

Price ofCompetitors

products

Customers abilityto pay ability topay


18/39

w

ww.t

hemegallery.com

Who is a customer

Wikipedia

Mahatma

Gandhi

Peter

drucker

The purpose of business is to create

customer

There is no business with out a customer

A customeris the recipient of a good,

service, product, or idea, obtained from a

seller, vendor, or supplier for a monetary or

other valuable consideration.

A customer is the most important visitor on our

premises. He is not dependent on us. We aredependent on him. He is not an interruption in our work

- he is the purpose of it. We are not doing him a favour

by serving him. He is doing us a favour by giving us the

opportunity to serve him


19/39

w

ww.t

hemegallery.com

How important a customer is

Customers are the most important people for any

organisation. They are the resource upon which the success of the

business depends.

When thinking about the importance of customers it is

useful to remember the following points:1. Repeat purchase is the backbone of selling. It helps to providerevenue and certainty for the business.

2. Organisations are dependent upon their customers. If they do not

develop customer loyalty and satisfaction, they could lose their

customers. Loyalty is developed through trust and by consistently delivering a

memorable experience.

Loyal customers provide repeat business andequally important

referrals of new customers. Word-of-mouth advertising may be one of

the oldest and most effective methods of developing new customers.


20/39

w

ww.t

hemegallery.com

How important a customer is

3. Without customers the organisation would not exist.

4. The purpose of the organisation is to fulfill the needs of the

customers.

Needs may differ from customer to customer. Anticipating acustomer's needs is an important part of most retail and wholesale

businesses, especially in a more challenging retail environment

5. The customer makes it possible to achieve business aims.

Maximising profits

Top position

Market share

Etc


21/39

www.t

hemegallery.com

Changed marketing

Markets become sophisticated, the seller of the product

was no longer necessarily producer of the product. Agents and other intermediaries began being used to

represent both sides of transaction.

Improved communications- contract of sale is negotiated

at a distance without the parties ever meeting. Mid twentieth century, producers and sellers in market

given greater attention to customers than ever before.

Concept of selling shifted towards serving the customer

through use of help desks, calls centers and CS

programmes, including companies asking the customersfeedback about the products, basing on which they are

redesigning the products.

In the process, technology has allowed for more data

collection


22/39

www.t

hemegallery.com

The matching process

With these developments, marketing is about the

matching the abilities of the needs of its customers.Marketing is about identifying what customers

want; which of those wants the business is good at

delivering.

The matching process takes place in the marketingenvironment in which the business operates.

This environment is dynamic and not necessarily

controlled by the business.

The challenge for businesses is to identifycustomer wants in this dynamic environment.


23/39

www.t

hemegallery.com

Marketing environment


24/39


25/39

www.t

hemegallery.co

m

Production based market :Seller emphasizes on

effective production and distribution. The approachworks best when demand is greater than the supply

and goods and services are relatively easy to sell.

There is no need to concentrate on marketing them

Product based market: This is a market where

goods and services sell themselves, usually

because of inherent quality and performance

characteristics. All the consumers are generally well

informed and know about the product. Sales

promotion and marketing are not necessary. Fore.g., specialist computer software, gold bullion and

other precious metals


26/39

www.t

hemegallery.co

m

Reluctant market: This type of market is one

in which consumers will not buy sufficient

goods and services unless persuaded to do

so by advertising and sales promotion. Theinherent quality and performance of the

goods is insufficient in itself to generate

sales. Marketing is essential in this market,

especially when supply of goods andservices is more than the demand

Hyundai cars, surf excel, ULIP policies


27/39


28/39

www.t

hemegallery.co

m

Marketing a service

With an intangible product serving

the customer is difficult taskCopy right of service is impossible

How can the firm differentiate inservice?

Looks similar airline ticketing orinsurance policy

Intense competitive environment


29/39


30/39

www.t

hemegallery.co

m

Marketing activities

For need-satisying products, business

requires the following activities to be done:

Identify and target those markets that bestfit its resources (banassurance)

Develop the products that meet the needs oftarget market better than the competitors

Make products readily available forconsumption (online sales)

Develop consumer awareness of valuedelivered or problem solving techniques (newplans and claims process)

Generate formal and systematic feed back.


31/39


32/39

www.t

hemegallery.co

m

Who does marketing

One individual will be accountablefor all the marketing activities,however, every one in orgn , in wayor the other responsible for

marketing that business.They can all have an influence on

customer satisfaction through their

work.


33/39

H d k f i


34/39

www.t

hemegallery.co

m

How does mktg function operate

B2C

Consumerend user,

on emotion

B2B

Manufacturers,wholesalers,

retailers

On logic

C2B

Invite forbids, offers

C2C

Auction,exchangeforums

B2E

Employeebenefitscheme

Marketing as an activity is carried out in a variety of contexts;

How does mktg relate to other business


35/39

www.t

hemegallery.co

m

How does mktg relate to other businessfunctions

What ever the objective, top level support is essential

for success of orgn. There must be demonstrable link between mktg and

business ability to achieve its commercial objectives

Functional business structure

High degree of communication between functional

sections is needed for the marketing function to be

successful. Mktg dept to be consulted in designing the

product, production, distribution and finance.

Chiefexecutive

operations services Purchasing Marketing Personnel Finance

M k i i hi di i i l


36/39

www.t

hemegallery.co

m

Marketing within a divisional structure

Development of divisional organization is found

when they offer wide range of products. Eachdivision handles all activities associated withproducing and marketing its own product

Group head

office

Division A Division B Division C

Group functions

Finance, mktg


37/39

Marketing within Matrix management


38/39

www.t

hemegallery.co

m

Marketing within Matrix managementstructure

Combination of all the above structures, this

structure allows the benefits of a rigid verticalmanagement structure to co- exist with a loosehorizontal project management structure.


39/39

role of mktg

Documents