Marketing papers of insurance companies 1
Research on Marketing Strategy of Insurance Company
Abstract: For insurance companies, marketing strategy has great influence on product marketing and brand building, and it is one of the important contents of enterprise development strategy.
Among them, target market strategy and competitive strategy are the two most important aspects of marketing strategy.
This paper analyzes the ways to find the insurance target market and improve the competitive advantage, recognizes the existing problems and puts forward innovative suggestions.
Keywords: insurance; Marketing strategy; competitive edge
First, the insurance company STP strategic analysis
Insurance market segmentation
Insurance market segmentation is a process in which insurance companies divide the whole insurance market into several market segments on the basis of insurance research and according to the demand characteristics of insurance consumers and the differences of insurance behaviors.
The basis of the company's segmentation of the insurance market mainly considers demographic factors and behavioral factors.
Demographic factors mainly consider family population and family life cycle, age, gender, income and so on. Behavioral factors include the insured's motivation, insurance behavior, interest-driven, attitude towards insurance, etc.
Behavioral factors commonly used by companies are divided into travel insurance, accident insurance, investment and financial insurance, health insurance and property insurance according to customers' purchasing motives.
Market segments should have ideal scale and development characteristics, have certain profitability and be attractive to enterprises. Enterprises should take customer demand as the center, adjust the segmentation strategy, and provide marketable products according to customer demand.
(B) the choice of insurance target market
Market attractiveness is one of the important factors for the insurance industry to choose the target market. If the market is small or tends to decline and it is difficult to develop after entering, don't enter easily.
We should also consider the demand potential of the target market. Although some market segments are attractive, they can't promote enterprises to achieve development goals, and even distract enterprises' energy, so we should consider giving up.
We should also consider whether the resource conditions of the enterprise are suitable for operating in a certain market segment. Only by choosing those markets that enterprises have the conditions to enter and can give full play to their resource advantages as target markets can enterprises succeed.
Generally speaking, the means for insurance companies to find the target market include both internal insurance companies, such as group insurance direct sales, personal marketing, internet, telephone and other direct sales methods.
It also includes the marketing of enterprises outside the company, such as banks, postal services, securities institutions and other part-time institutions; It also meets the diverse needs of customers by combining and bundling the products of other companies or marketing channels.
(C) Insurance market positioning
There are two ways to position the insurance market. One is to refer to the positioning of competitors, who have explored the market and considered the product positioning comprehensively. Reference to industry standards can greatly reduce business risks;
The first is to avoid strong positioning. The company develops its own new products, new marketing model and new brand communication mode from another angle. This method can be regarded as a way to improve competitiveness. With the strength of the company, after strict market research,
Companies can open up a blue ocean in the insurance market through innovative marketing strategies, laying a good foundation for enterprises to stand on their feet for a long time.
Second, the competitive strategy analysis
Michael. Porter believes that there are five competitive forces that determine the long-term internal attraction of the whole market.
There are four aspects that have obvious influence on the insurance industry:
(A) the threat of competitors in the industry
The insurance market is in the mature period of the market life cycle, with many competitors and large investment.
These situations often lead to price wars, advertising wars and the launch of new products, and companies must pay a high price to participate in the competition.
(B) the threat of new entrants
If a target market may attract new competitors, who occupy a lot of resources and have the power to compete for market share, then enterprises in this market segment should carefully consider whether to keep it.
Therefore, insurance companies should always observe the trend of new competitors, correctly choose competitive advantages and resist the threat of new entrants.
(C) the threat of substitute products
The insurance industry also faces the threat of some substitute products, such as funds and some investment and wealth management products, which will pose a threat to insurance. Companies should pay close attention to the types, benefits and customer groups of alternative products.
Develop new products for substitutes, find target customers different from substitutes, continuously extend product life cycle and develop product lines with different development directions from substitutes.
Buyer's bargaining power
There has always been competition between buyers and enterprises. On the one hand, the buyer is the partner of the enterprise and provides benefits for the enterprise; On the other hand, they will strive for their own interests to the maximum extent, they will put forward higher requirements for product quality and service, they will try to lower prices and make competitors compete with each other, which will make the profits of enterprises suffer losses.
If the enterprise does not consider the interests or needs of customers, or the switching cost of customers is low, or customers can form alliances, then the bargaining power of buyers will be strengthened.
Therefore, insurance companies should attach great importance to customers, classify customers, give customers more profits, constantly improve product differentiation and service level, and develop loyal customers.
Third, innovative suggestions on the marketing strategy of insurance companies.
(A) a reasonable market segmentation
The insurance market segmentation should seek a better and more suitable angle, design the product mix and marketing strategy in strict accordance with the market segmentation, and carry out marketing activities more systematically.
If we combine age and income and subdivide the market on the basis of fully considering customer needs, we can divide the market into elderly low-income groups, traditional middle-aged customers, wealthy customers, high-quality young and middle-aged customers and young salaried customers.
Fully consider the social background of these groups and find out the product demand of * * *, so as to formulate a set of effective marketing measures suitable for a group and popularize them in the company, which greatly improves the work efficiency.
We can also flexibly adjust product and service strategies according to the needs of different groups, which will promote the adjustment of marketing strategies.
(B) to strengthen brand marketing
A successful brand is of great significance to enterprises. Brand success includes popularity, reputation and loyalty.
Under the background of information society, enterprises can carry out brand marketing in many ways, such as making public service advertisements and putting them in well-known media, spreading public service micro-movies through the Internet, participating in community service activities and timely public relations by the media.
At present, the core of market competition is customer demand and brand image is the value standard. There is no shortcut to building a brand, which must be realized step by step by sincerely serving the society, paying attention to social interests and developing trust and loyalty with customers.
(C) Sustainable innovation and differentiated competition strategy
(1) product differentiation.
The insurance industry should develop diversified product systems on the basis of customer segmentation to meet the diversified needs of customers.
The product system can be divided into: first, a series of products aimed at specific customer groups, such as women's insurance product packages and family insurance product packages. This is the most convenient and effective customer classification, and enterprises can continuously develop new products in this way.
Second, channel franchise products developed according to the characteristics of different marketing channels, such as bank savings dividend products and online shopping insurance products, are suitable for bank postal channels and online channels respectively. In addition to the differences in channel types, products from different channels should increase the differences in insurance liability, otherwise products from different channels can easily replace each other, leading to channel conflicts.
Third, the humanized and personalized special insurance scheme tailored for special customers, such as the insurance scheme tailored for a star and well-known entrepreneur, can meet the needs of different customers.
The diversification of customer demand is the basis of the formation of diversified product system, which is the premise and reason for enterprises to integrate resources and cross-sell.
(2) service differentiation.
To improve the quality of employees, in addition to knowledge training and ability training, we should pay more attention to improving the quality of employees, paying attention to service attitude, emphasizing gfd and advocating teamwork spirit. The mental outlook of employees reflects the culture and connotation of the enterprise;
Establish a reasonable service process, so that employees can follow rules when serving, and the evaluation of employees can be based on evidence. Standardized management is carried out in all aspects, such as customer search, sales negotiation, customer maintenance and handling after-sales problems. The requirements are strict, so that everyone has something to do and everyone has something to do, which improves the customer service level.
(3) Conduct network marketing.
With the help of computers and the Internet, we can not only increase business sales, but also reduce work costs. We can use the internet to carry out market research activities, online product sales, online promotion, advertising and public relations and a series of activities.
Drawing lessons from the concept of e-commerce, establishing a fully functional internal database and professional portal website, providing online consultancy or auxiliary telephone service and realizing online marketing of some products will surely become an important marketing strategy for insurance companies in the future.
As a very important part of insurance companies, marketing strategy should be paid enough attention. Enterprises should gather all kinds of resources, increase marketing investment, improve profitability, and maintain sustained and stable development, which is the realistic requirement of enterprises' continuous efforts.
References:
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[3] Wu Tiejun. Thoughts on insurance marketing strategy [J]. Modern Economic Information, 2009.