LOMA 291 Module 3 || ANSWERED
Marketing - Correct Answer Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large.
Marketing plan - Correct Answer A written document that states the marketing goals for a product or
product line, and describes the strategies and the implementation and control efforts the company
intends to use to achieve those goals.
Marketing plans contain:
- An executive summary, or a brief highlight of the purpose, recommendations, costs, and intended
results
- A situation analysis, or an explanation of the environmental factors affecting marketing operations
- Marketing objectives
- Marketing strategies
- Tactical/action programs, or a description of the activities to be carried out
- Budgets
- The evaluation methodology, or the controls the company will use to analyze progress toward goals
The Marketing Mix - Correct Answer To market effectively, marketing departments need to understand
the details of
Product
Price
Promotion
Distribution
,These four variables work together to attract customers, trigger buying, and help companies meet
business goals.
Product - Correct Answer The goods, services, or ideas that a seller offers to customers to satisfy a need.
Some specialization possibilities for insurance - Correct Answer Under life Insurance are term life, whole
life, group life, universal life, variable universal life, indexed universal life, and final expense insurance.
Under medical are group major medical, individual major medical, and supplemental medical. Under
disability are short-term disability, long-term disability, and long-term care.
or
Under annuities are qualified annuities, nonqualified annuities, fixed annuities, variable annuities,
indexed annuities, immediate annuities, and longevity insurance. Under retirement are 401(k), 401(b),
and pension plans. Under voluntary benefits are dental insurance, vision insurance, and critical illness
insurance.
Product Mix - Correct Answer The assortment of products a company offers.
Financial design - Correct Answer The combination of all the financial features of a product.
Which of these do you think are potential features of insurance product financial design? Choose all that
apply.
Required premium payments
Mortality charges
Charges for features, benefits, guarantees, etc.
Fees for services, transactions, etc.
Charges (if any) for early surrender or withdrawal
How fast the cash value accumulates
Investment or interest rate minimum guarantees
Guaranteed income, accumulation, or withdrawal benefits - Correct Answer All of them
,distribution - Correct Answer The collection of activities and resources involved in making products
available for customers to buy.
Face to face meeting methods - Correct Answer Career agents
PPGAs
Independent agents
Broker/dealers
Registered investment advisors (RIAs)
Banks and other depository institutions
Other insurance companies
Employee benefits brokers
direct to consumer methods - Correct Answer Email
Company website
Phone
Mail
Promotion - Correct Answer The collection of activities that companies use to make customers aware of
their offerings and to influence customers to purchase, and distributors to sell, a product.
3 types of promotion:
- personal selling
- advertising
- publicity
personal selling - Correct Answer conversation between a sales agent and one or more prospective
customers, either face to face or over the phone. Insurers use personal selling extensively, because it is
an effective way to convey information about a complex product.
, he customer can ask questions to clarify information
The financial professional can customize the message to fit the situation
Advertising - Correct Answer Any paid form of nonpersonal communication or promotion about a
company or its products or services that an identified sponsor generates and transmits through any type
of media
Institutional advertising - Correct Answer Advertising that seeks to promote a general image of the
company rather than to explain a specific product. Also known as image advertising.
product advertising - Correct Answer Any advertising used to promote a specific product or service.
publicity - Correct Answer Any form of nonpaid communication about a person, place, thing, or cause.
Another marketing mix model: The four C's - Correct Answer Customer: The insurer analyzes who its
customers are, what their needs are, and what products it can provide to meet those needs.
Cost: The insurer examines the value of its product for customers and the appropriate price to ask, given
the alternative products available from competitors.
Convenience: The insurer ensures that customers can learn about and purchase its products in the ways
that best meet their needs and preferences.
Communication: The insurer communicates with its customers over multiple channels to create an
ongoing relationship that will promote customer loyalty.
Marketing Mix Objectives - Correct Answer - Fit together so that each one supports the others: The type
of product a company offers determines the type of distribution methods the insurer uses. The type of
distribution an insurer chooses for a product, in turn, helps determine the product's price.
- Align with the company's overall strategic goals: If a company's strategic goal is to be an industry leader
in sales of term life insurance, the marketing mix should include specific strategies for customer, cost,
convenience, and communication that will allow the company to sell term life insurance policies to
customers more successfully than its competitors can.
