BIRLA INSTITUTE OF TECHNOLOGY, MESRA RANCHI extension center, jaipur

MARKETIING MIXOF

INSURANCE INDUSTRY

PRESENTED BYNIPUN NIKUNJ

What is service marketing“Any activity or benefit that one party can offer to another that is essentially intangible & does not result in the ownership of anything. It’s production may or may not be tied up to a physical product.”

Characteristics of Services

What is marketing Mix“Marketing mix is the combination of elements that you will use to market your product. There are seven elements: Product, Place, Price ,Promotion, people process, physical environment. They are called the seven Ps of the marketing mix.”

CLASSIFICATION OF SERVICE

It is required to design & apply marketing techniques to completely satisfy the customer & increase profits & identify new emerging services. Classifications can be done on following basis:• Classification by Industry• Classification by Target Effect• Skill level of service provider (Professional/ Nonprofessional)• Labor intensiveness (People-based/Equipment-based)• Degree of customer contact (High / Low)• Goal of the service provider (Profit /Nonprofit)

Classification By Industrya. Entertainment industryb. Educationc. Telecommunicationsd. Finance & Insurancee. Transportationf. Public utilitiesg. Government servicesh. Healthi. Hospitability Industryj. Business servicesk. Telecommunicationsl. Trading

INSURANCE INDUSTRY

OVERVIEW OF INSURANCE INDUSTRYMega opportunity in IndiaHistorical perspective•The Government of India in 1956, brought together over 240 private life insurers • provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born.

Services Marketing Mix for Insurance

a financial service for collecting the savings of the public and providing them

with risk coverage.

The main function of

Insurance is to provide

protection against the possible

chances of generating lossesINSURANCE MARKETING

the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction.

MARKETING –MIX FOR INSURANCE COMPANIES is the combination of marketing activities that an organisation engages in so asto best meet the needs of its targeted market.

7 P’s used for marketing of Insurance products

MARKETING MIX OF

INSURANCE COMPANY

PRODUCTDesign

Technologyusefulness

ConvenienceValue

QualityPackagingBranding

Accessorieswarranties

PRICEStrategiesSkimming

PenetrationPsychological

Cost planLoss leader

PLACERetail

WholesaleMailorderInternet

Direct sell peer to peer

Multi chennel

PROMOTIONSpecial offerAdvertising

EndorsementsUser trails

Direct mailingPosters

Free giftsCompetitionJoint venture

PEOPLEEmployee

ManagementCulture

customers

PROCESS1. Especially restraint to

service industries

2. How are services consumed

Physical environmentRun downInterfaceConfortfacilities

1.PRODUCT:A product means what we produce

2.PRICING:i) The premium charged against the policies,ii) Interest charged for defaulting the payment of premium and credit facility, andiii) Commission charged for underwriting and consultancy activities.

3.PLACE:

i) Managing the insurance personnel, andii) Locating a branch

4.P ROMOTION:The insurance services depend on effective promotional measures.

i) In promoting insurancebusiness, the agents and the rural career agents play an important role

5.PEOPLE:

Understanding the customer better allows to design appropriate products Training the employees, use of IT for efficiency, both at the staff.

6.PROCESSThe process should be customer friendly in insurance industry.

7. PHYSICAL DISTRIBUTION:Distribution is a key determinant of success for all insurance companies

Companies under Insurance sector1) Bharti AXA General Insurance  is a joint venture between Bharti, one of India’s leading business groups with interests in Telecom, Agri Business and Retail; and AXA, world leader in

Financial Protection and Wealth Management.  Group holds 74% of equity and AXA holds 26% of the equity.

7 Ps of Marketing of Bharti AXA General Insurance1. Products and Services:A)Retail Insurance:a. Motorb. HealthB)Commercial:a. Fireb. EngineeringC)Rural:a. Agricultural Pumpsetb. Cattle Insurance Policy

2. Price:Pricing factor is decided on the basis of the type of products which the customer buys.Bharti AXA is a strong player in private companies and its price structure is highly competitive and reliable

3. Place:

4. Promotion:Tele-marketingInternetHoardingsPersonal SellingAdvertisement through newspapers, business magazines and FM radio

5. People:6. Process:From the minute customers claim intimation is received, the Claims Team becomes active and acts efficiently and swiftly towards its settlement.

7. Physical Evidence:•Stationery•Separate departments for smooth functioning of work like Public Relation Department•Brochures•Internet / Web Pages•Business cards

Bajaj Allianz General Insurance Company Limited

is a joint venture between Bajaj Finserv Limited and Allianz SE.received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India.VisionMission

7 P’s of marketing of Bajaj Allianz :1. Products and Services:Motor InsuranceAsset InsuranceHealth InsuranceTravel InsuranceCorporate Insurance2. Price:The price structure is based on the type of policies

3.PLACE

4.PROMOTIONHuge advertisements on Television and radios.Tele-marketingPromotion in front of corporate officesInternet MarketingHoardings and brochures

5.People:People are the main assets of financial organization because of service factor attached to it.

6. Process:The prestigious awards itself speaks the smooth functioning of the insurance activities.

7. Physical Evidence:

COMPARISION BETWEEN BHARTI AND BAJAJ ALLIANZ

On the basis of 7 P’sPRODUCTPRICEPLACEPROMOTIONPEOPLEPROCESSPHYSICAL DISTRIBUTION