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CONCEPT OF ADVERTISEMENT
Advertising is a form of communication intended to persuade its viewers,
readers or listeners to take some action. It usually includes the name of a product
or service and how that product or service could benefit the consumer, to persuade
potential customers to purchase or to consume that particular brand. Modern
advertising developed with the rise of mass production in the late 19th and early
20th centuries.
Commercial advertisers often seek to generate increased consumption of
their products or services through branding, which involves the repetition of an
image or product name in an effort to associate related qualities with the brand in
the minds of consumers. Different types of media can be used to deliver these
messages, including traditional media such as newspapers, magazines, television,
radio, outdoor or direct mail. Advertising may be placed by an advertising agency
on behalf of a company or other organization.
Organizations that spend money on advertising promoting items other than a
consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on free
modes of persuasion, such as a public service announcement.
Advertising is the promotion of a companys products and services carried out
primarily to drive sales of the products and services but also to build a brand
identity and communicate changes or new product /services to the customers.
Advertising has become an essential element of the corporate world and hence the
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Different
types of advertising
Audio-Visual Media Advertising: In this advertising technique, the advertisers
use the very popular audio and visual media to promote a product. It is the most
widely used media that can effectively influence the masses. Television and radio
have always been used to achieve a mass appeal.
Bandwagon: This advertising appeal aims to persuade people to do a certain thing
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because the masses are doing it. It is a human tendency to do as the masses do.
Bandwagon technique of advertising captures exactly this psychology of human
beings to induce them to use a certain product or service.
Black and White Fallacy: In this advertising appeal, only two choices are
presented before the audiences, thus compelling them to buy the product being
advertised.
Card Stacking: This advertising appeal involves the display of a comparative
study between two competing products. The facts in favor of the product to be
advertised are selected. They are put forth in comparison with those of a competing
product to make the product appear better than its competitors.
Classified Advertising: This type of advertising makes use of newspapers and
periodicals to make public appeals about the products or services to be advertised.
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Demonizing the Enemy: In this advertising appeal, the advertisers make the
people with an opposing point of view appear unacceptable. The people bearing
certain ideas are made to appear among the disliked individuals of society. This
form of advertising involves the idea of encouraging an idea by discouraging the
ideas contrary to it. It is like proving a theorem by disproving its inverse!
Direct Order: When the advertisers appeal the masses by showing them the steps
to take, in order to opt for a particular product or service, they are said to be using
direct order. This advertising appeal often communicates the steps to choose a
certain product or service and presents them to the audiences in a simplistic
manner.
Disinformation: This technique involves a purposeful dissemination of false
information. In the context of military, this technique is used to mislead the enemy.
It commonly includes forging of documents and the spread of rumors.
Email Advertising: This is a relatively new advertising appeal that makes use of
emails to advertise products. Advertisements are sent through emails, thus bringing
out communication with a wide range of audiences.
Emotional Words: This advertising appeal makes use of positive words to
generate positive feelings in the minds of the people about a certain product. The
advertisers often use the words like 'luxury', 'comfort' and 'satisfaction' to create
positive vibes among the masses to attract them towards the product being
advertised.
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the common folks. They can rather be attracted by communicating with them in
their language. The use of homey words, as they are called, and purposeful errors
while speaking to give a natural feel to the speech, is characteristic to this
advertising appeal.
Print Media Advertising: The print media is one of the most effective means of
advertising. Many advertising appeals make use of the print media to reach out to
the masses. Media like newspapers, brochures, manuals and magazines are used
for publicizing the products.
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Repetition: This advertising appeal uses the technique of repeating the product
name several times during an advertisement. Jingles are often used in this
advertising technique to linger the product name in the minds of the masses.
Scientific Evidence: This technique attempts to appeal the masses to use the
advertised product, by providing the audiences with survey results. The advertisers
often use statistical evidences and market surveys to publicize their product.
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Unstated Assumption: When the idea behind the product or service being
advertised is repeatedly implied, it is known as an unstated assumption. In case of
using this advertising appeal, the advertisers do not state the concepts explicitly.
They rather imply their ideas in various ways.
Viral Advertising: It can take the form of word-of-mouth publicity or of Internet
advertising. The aim of the advertiser is to market the product on a very large
scale. This advertising appeal intends to achieve a speedy publicity of a product
similar to the spreading of a pathological or a computer virus!
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TYPES OF ADVERTISMENTS
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INTRODUCTION TO INSURANCE
Concept of Insurance
In a layman's words, insurance means, a guard against pecuniary loss
arising on the happening of an unforeseen event. In developing economies, the
insurance sector still holds a lot of potential which can be tapped. Majority of the
people in the developing countries remains unaware of the functions and benefits
of insurance and it is for this reason that the insurance sector is still to
grow. Tangible or intangible an individual can insure anything! Be it a house, car,
factory, or the voice of a singer, leg of a footballer, and the hand of an author.....etc.
It is possible to insure all these as they have the possibility of becoming non
functional by any disaster or an accident.
Meaning of Insurance
Insurance provides financial protection against a loss arising out of
happening of an uncertain event. A person can avail this protection by paying
premium to an insurance company. A pool is created through contributions made
by persons seeking to protect themselves from common risk. Premium is collected
by insurance companies which also act as trustee to the pool. Any loss to the
insured in case of happening of an uncertain event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of
insurance is that it spreads the risk of a few people over a large group of people
exposed to risk of similar type.
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Definition
Insurance is a contract between two parties whereby one party agrees to
undertake the risk of another in exchange for consideration known as premium and
promises to pay a fixed sum of money to the other party on happening of an
uncertain event (death) or after the expiry of a certain period in case of life
insurance or to indemnify the other party on happening of an uncertain event in
case of general insurance. The party bearing the risk is known as the 'insurer' or
'assurer' and the party whose risk is covered is known as the 'insured' or 'assured'.
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The history of general insurance business in India can be traced back to Triton
Insurance Company Ltd. (the first general insurance company) which was formed
in the year 1850 in Kolkata by the British.
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Providing
protection
The
elementary
purpose
of
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aftermaths
of
risk
by
observing
safety
INSURANCE
LIFE INSURANCE
Mediclaim
GENERAL INSURANCE
Fire Insurance
Motor Vehicle
Marine Insurance
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General Insurance
Corporation
of General
India.
Insurance
Corporation
of
New Entrants
ICICI Prudential Life Insurance Ltd.
Alliance
Insurance
Life Insurance
Life Insurance is a contract between the insured and the insurer (insurance
company), wherein the insured pays a certain amount as premium to the insurer at
regular intervals, and in return, the insurer promises to pay a specified sum upon
the occurrence of insured's death. Insurance against risk of loss to one's life is
covered under Life Insurance. Life insurance is also known as long term insurance
or life assurance. It includes Whole Life Assurance, Endowment Assurance,
Assurances for Children, Term Assurance, and Money Back Policy etc. To buy or
get information on life insurance products offered by us, please click on the link
above.
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General Insurance
Insurance against risk of loss to assets like car, house, accident etc. is
covered under General or Non-life Insurance. General insurance includes fire
insurance, marine insurance, motor insurance, theft insurance, health insurance,
personal accident insurance etc. Insurance against risk of loss to assets like car,
house, accident etc. is covered under General or Non-life Insurance. General
insurance includes fire insurance, marine insurance, motor insurance, theft
insurance, health insurance, personal accident insurance etc. To buy or get
information on life insurance products offered by us, please click on the link
above.
INDIVIDUAL
INSTITUTIONAL
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Theodore Levitt propounded the Total Product Concept (TPC), which implied that
a product had three levels of features and the consumption was in totality.
LEVEL 1:
Core Product:
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In the Insurance Industry the core product is the policy that provides protection to
the consumers against the risks. This is the main reason for which the Insurance
Company is in existence. It provides protection by way of various riders viz.
Accidental Death Benefit, Double Sum Assured, Critical Illness benefits, Waiver of
Premiums, etc.
On the basis of the risks perceived, the insurer develops a product to cover the
stipulated risks. While designing an insurance product, an insurer decides its cost
to be charged from the insured in the form of premium, reduction thereof in certain
cases like not lodging any claim during the previous covered period(s), suggesting
the implementation of risk-mitigating measures, etc. The features of a product
should be flexible enough to provide for the determination of premiums, rebates,
additional premiums, etc. depending upon the risk benchmarks as determined.
LEVEL 2:
Formal Product:
When the customers expectation grows synchronized with increased competition
the marketer offers some tangibility to the existing core product to differentiate
itself from the competitors.
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1.
Brand:
In order to distinguish itself from the competitors, the Insurance Company gives a
brand name to its policy. This brand name gives an identity to the product (policy)
offered by the insurance company.
Thus ICICI Prudential Life Insurance has brands viz ICICI Pru Smart Kid, ICICI
Pru Save n Protect, ICICI Pru LifeLink, etc.
2.
Attributes:
Just giving a brand name to the policy may not be enough for the insurance
company to distinguish its offerings. The product offering must also have attributes
that will attract the consumers to take the policy. The attributes must suit and
satisfy the needs wants and desires of the various types of consumers that the
company is targeting at.
Thus ICICIs investment plans suit the consumers who want to secure their family
through insurance or invest money for growth. And its retirement plans suit the
ones who want to enjoy their fruits of labor after retirement or want to go for a
dream vacation.
3.
Instruction Manual:
To make the service consumption easier for the consumers, the instruction manual
with the policy becomes very important. The instruction manual gives an overview
to the consumers as to how to go on with the filling of the application form. It also
gives information about the various formalities that have to be adhered to at the
time of submission of the application form.
LEVEL 3:
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Augmented product:
With further expectation of the consumer again synchronized with intense
competition marketers offer more and more intangible features.
1.
Post-sales service:
The insurance company must not consider it as the end of the service providing
the consumer has taken once the policy. The functions of an insurance company
include the provision of the Post-sales services to the consumer. Among the
services rendered by the insurance company is the service of processing and
release of claims. The insurance company needs to verify the accuracy of the
facts presented in relation to the insurance claim and the documents produced
in support thereof.
Delivery points:
The delivery points can be the branches that the insurance company has at the
discretion of the of the consumers location. The delivery points can also be
mobilized with the presence of the insurance agents. The agents can cover a
wide area and get in contact with the consumers to provide the service to him.
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company. The agents play a vital role in this context. The customer can be
educated on various benefits that can be accrued in his future life by taking a
policy. This is where the agents communication skills come into the picture.
The insurance company has to play an active role in enabling the agents to
impart the best customer education through appropriate training given to the
agents.
Payment options:
The insurance company can offer payment options to the consumers with
regards to payment of premium the mode of payment and the period within
which the premium amount has to be paid.
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MARKETING
INTRODUCTION OF MARKETING
Marketing is an important social economic activity. It is an essential
activity for the satisfaction of wants and for raising social welfare. Marketing
links producers and consumers together for mutual benefits. It facilitates
transfer of ownership of goods and services form producers to customers.
DEFINITION OF MARKETING
According to Philip Kotler, marketing is an activity directed at
satisfying needs and wants through exchange process.
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PRODUCT MIX
The formulation of product mix for the insurance business makes it significant to
take a look at the services and schemes of insurance organizations. The product
portfolio is known and the process of formulating a package should be known. It is
natural that the users expect a reasonable return for their investments. It is quite
natural that the insurance organizations want to maximize profitability. Both of
these dimensions are found interrelated.
It is well known that the key objectives of insurance business are mobilization of
savings and channelization of investments. This makes it essential that insurance
business is made lucrative so that the users /potential users get incentives to buy a
policy or to invest in the insurance organizations. The insurance organizations also
need to promote the underwriting activities, which would activate the process of
arresting the regional imbalance. In the context of formulating the product mix, it
is essential that the insurance organizations promote innovation and in the product
portfolio include even those services and schemes which are likely to get a positive
response in the future.
The corporate objectives indicate that the insurance organizations are required to
be careful, especially while launching a new policy. The policies should not only
generate enough premium but it is also important that the policies cover persons
working in the informal sector, serving as porter, working as manual laborers, or
engaged in farm sector. It is the need of the hour that the insurance organizations
make their service internationally competitive. This makes a strong advocacy in
favor of innovative product mix strategy for the public sector insurance
organizations. Thus the formulation of product mix should be in face of innovative
product strategy. Strategies of foreign and private insurance companies should be
taken into consideration while initiating the innovative process.
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The formulation of product strategy should assign due weight age to the rural
segment emerging as a big profitable segment especially in the 21 st century. The
policies and schemes should have rural orientation so that backward and neglected
regions of the country get priority attention and the regional imbalance is
minimized.
In this context, it is also pertinent that the insurance organization make possible
welfare orientation and include in the product portfolio even those policies and
schemes which become instrumental in safeguarding the interest of the weaker
sections of the society.
The formulation of package is also found important. Designing a package on the
basis of the needs and requirements of the concerned segment would make the
product mix more competitive.
The partially tapped or totally untapped profitable segments of the future should be
identified and tapping the potentials optimally is also important.
A sound product portfolio is the need of the hour and therefore the regulatory
barriers or constraints in activating the innovation process should be minimized.
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The product development needs a new vision, a new approach and a new strategy.
Till now the public sector insurance organizations have made possible an optimum
utilization of their marketing resources especially in rural areas where tremendous
opportunities are available. Thus they should assign due weight age to the
development services /schemes which cater to changing needs and requirements of
the rural segment.
In the development of product, the corporate investments need due priority.
Channelizing the corporate investments influences the rate of profitability of
insurance companies and also contributes considerably to the socio-economic
transformation process.
Give due weight age to the socially and economically backward classes
Maximize the mobilization of savings by offering lucrative schemes.
Assign due weight age to interests of investors.
Maintain economy in business by promoting cost effectiveness.
Act as a trustee of policyholders.
Keep in mind the emerging trends in business environment.
Improve the quality of customer / user services.
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PROMOTION MIX
With the advent of private players in the insurance, companies resort to rampant
promotion. Promotion mix for this sector is as follows:
Advertisement
Advertisement can be done through the telecast media, broadcast media and print
media. Insurance companies have been making optimal use of all the three kinds.
Use of World Wide Web, as media is almost negligible and will not be very
frequent in the near future considering the fact that the majority of customer base
of these companies is not yet exposed to the Internet. The telecast media has been
the most effective of all in case of the insurance sector. Most of the companies
have their separate advertising section to take care of this aspect. An important
consideration while making the decision as to the selection of the media is
budgetary constraint. Since the insurance companies work on a large scale, usually
this constraint does not stand as an obstacle.
Publicity
It is a device to promote business without making any payment and therefore it
could be also called as unpaid form of persuasive communication bearing a high
rate of sensitivity. Developing rapport with the media is an important aspect of
publicity. This makes it essential that the PR officers working in the insurance
organizations maintain contacts with the media personnel, organize press
conference, and offer small gifts and memento to them. These days LGD
marketing is gaining popularity the world over. It also can be applicable here. At
the apex and regional levels, the PROs bear the responsibility of projecting
positive image of the organization. Thus it is necessary to select suitable personnel
for this. They should be in particular taught to deal with people, simple things like
talking, greeting etc.
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Sales Promotion
Incentives to the end users for taking the policy play an important role in
promoting the insurance business. Since the insurance business is also related to
achieving of a particular target, it is pertinent that the policymakers assign due
weight age to the same. The offering of small gifts during a particular period, the
rebate, discount, bonus can increase business of organization by leaps and bounds.
Besides, there can be gifts for the insurance agents also.
Personal Selling
Personal selling in case of the insurance organizations is quite important
considering the existence of the insurance agents spread at all levels. Selection of
these agents, their training is responsibility of the organization. There is difference
in urban and rural market. Rural customers might be uneducated / uninformed etc.
compared to the urban customer. Hence the organizations will have to make
selections of the rural and urban agents accordingly.
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Telemarketing
With the development of satellite communication facilities and with the expansion
of the television network, we find telemarketing gaining popularity the world over.
The insurance organizations in general need to promote telemarketing. The foreign
insurance companies have been assigning due weight age to this and in India this is
beginning to gain importance with the advent of competition in this sector. The
telemarketer is supposed to be well aware of the telephonic code so that the task of
satisfying the customers/their queries will not consume much of time.
World Wide Web
In banking as well as insurance, more and more importance is being given to
online contact facilities whereby complaints/comments could be sent through an
email. Email is fastest written mode of communication and since it has been
recognized legally, its use to clear doubts has been in full swing.
PRICE MIX
In the insurance business, the pricing decisions are concerned with the premium
charged against the policies interest charged for defaulting the payment of
premiums & credit facilities, commission charged for underwriting & consultancy
services. The formulation of pricing strategies becomes significant with the
viewpoint of influencing the target market or prospects. To be more specific in the
Indian context where the disposable income in the hands of prospects is found low,
the increasing inflationary pressure has been instrumental in contracting the
discretionary income, the increasing consumerism has been making an assault on
the saving potentials of masses, it is pertinent that the insurance organizations in
general & public sector insurance organizations in particular adopt such a strategy
for pricing that makes it a motivational tool & paves the ways for increasing the
insurance business. Of course, a motivational pricing strategy is required to be
given due weight age. This necessitates a new vision for setting premium structure
& paying the bonus & charging the interest.
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The strategy may have a new vision in the sense that the insurance organizations
prefer to make a mix of high & low pricing strategy. The motive is to make the
premium structure commercially viable so that the insurance organizations succeed
in having a sound product portfolio besides fuelling development orientation. The
pricing decisions make it essential that the insurers keep in their minds the nature
of policy vis--vis the segment to which the prospects belong.
In the tangible products, cost of production is taken as the basis for fixation of
prices. Even in the insurance business, it is found to be an important consideration
& a dominating base. This makes the cost of insurance a decisive factor for
charging premium. The important bases for determining the cost are rate of death,
rate of interest & the expenses incurred on the insurance business. The mortality
table helps the determination of death rate. It is to predict future mortality. The
best method of construction of mortality table is to select a large number of persons
at attained age, which is meant age close to the birth rate. The second important
element is the rate of interest. On the basis of mortality rate, it is estimated that
when & how much amount is to be received as premium & would be paid as
claims but on the basis of interest rate, it is estimated that how much interest can be
earned by investing the insurance funds. The last element is cost which focuses on
different types of expenses. There are certain expenses, which incurred at the time
of inception of the policy. This necessitates determination of the nature of
expenses. The determination of expenses according to occurrence & equal
distribution of the expenses every year for equitable distribution of loading are
found significant to make possible a sound management of expenses.
The process of rate of fixation in the insurance organizations is not so scientific &
identifies the cases of moral hazard. It is easier to identify the physical hazard but
the task of identifying the moral hazard is found difficult. The premium charged is
to be made rational to cater to the payment of claims on a priority basis including
the catastrophic losses, management expenses & margin of profit. It is essential
that various related to both the hazards are estimated in a scientific way. The
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actual process of rating consists of three steps, e.g. classification, discrimination &
scheduling.
The price mix decisions are:
Making possible cost of effectiveness
Restructuring of premium
Due priority to profit generating investments.
Rationalizing or optimizing the social costs
Paving avenues for channelizing the productive investments
Assigning dude weight age to the policies meant for the socially &
economically backward classes
Making the ways for maximizing profit
PLACE MIX
The first component of the marketing mix is related to the place decisions in
which our focus would be on the two important facets managing the insurance
personnel and locating a branch. The management of agents and insurance
personnel is found significant with the viewpoint of maintaining the norms for
offering the services. This is also to process the services to the end user in such
a way that a gap between the services- promised and services offered is
bridged over. In a majority of the service generating organizations, such a gap is
found existent which has been instrumental in aggravating the image problem.
The policy makers make provisions; the senior executives specify the standards
and quality and the branch managers with the cooperation of the front-line staff
and others bear the responsibility of making available the promised services to
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the end users. The public sector insurance organizations have failed in both the
areas. The agents, rural career agents, the front-line staff and even a majority of
the branch managers have become a party gap.
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Another important dimension to the Place Mix is related to the location of the
insurance branches. While locating branches, the branch manager needs to consider
a number of factors, such as smooth accessibility, availability of infrastructural
facilities and the management of branch offices and premises. In addition it is also
significant that the branch managers assign due weight age to the safety provisions.
The management of offices makes it significant that the branch managers are
particular to the office furnishing, civic amenities and facilities, parking facilities
and interior office decoration.
Thus the place management of insurance branch offices needs a new vision,
distinct approach and an innovative style. This is essential to make the work place
conducive, attractive and proactive to the generation of efficiency. The motives are
to offer the promised services to the end users without any distortion and making
the branch offices a point of attraction. The branch managers need professional
excellence to make place decisions productive.
PEOPLE MIX
People are most important component of marketing mix for the insurance industry.
Sophistication in the process of technological advances makes the ways for the
personnel in such a way that an organization succeeds in making possible a
productive utilization of technologies used or likely to be used. Professional
qualification requirements change as technological develops & evolves. The use of
computers microcomputers, fax machines, sophisticated telephonic service, emailing, intra-net service have been found throwing a big impact on the perception
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of quality of service. This makes it essential that the insurance organizations also
think in favor of developing personnel in line with the development and use of
information technologies.
The front-line-staff as well as the branch managers are required to be given the
training facilities so that they in position to make possible an effective use of the
technologies. The insurance organizations bear the responsibility of developing the
credentials of their employees. In this context, it is also significant that they think
about the behavioral profile of insurance personnel. It is pertinent that the
employees are well aware of the behavioral management. They know & understand
the changing level of expectations of users & make sincere efforts to fulfill the
same. In this context, it is also significant that the senior executive while
recruiting, training & developing the insurance personnel make it sure that
employees serving the organization have a high behavioral profile in which
empathy has been given due place. The psychological attributes become significant
with the viewpoint of influencing the prospects or retaining the users. It is in this
context that the insurance companies need a rational plan for the development of
insurance personnel.
PHYSICAL EVIDENCE
Physical evidence includes facility design, equipment, signage, employee dress,
tangibles, reports & statements.
Signage:
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Tangibles:
Insurance companies give their customers & agents various tangible items like
pens, letter pad, calendars etc. such things try to reduce the intangibility
characteristics of this industry.
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Statements:
The statements are the punch lines, which deeply depicts the vision & attitude
of an insurance company towards its users/potentials. It also indicates their
business motive.
PROCESS
Flow of activities: Since major activities are conducted through the agents, the
agents are given training and refresher courses etc. There are branches of
insurance
organizations
where
these
agents
go
for
processing
of
proposals/claims etc.
Customization: As stated earlier, each case has its own peculiarities. Hence
amount of premium, proceedings of a claim etc. are quite subjective.
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handling the proceedings. Thus the actual customer, the agent handles the
proceedings. Thus the actual customer is not involved in proceedings for a
majority of steps. In case of the corporate, usually separate officer are appointed
to take care of each case. Standardization reduces many steps as well as the
time taken.
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Today, the changing needs of consumers have led insurance companies to use
direct marketing strategies instead of relying solely on field agents. Direct
marketing offers advantages to both insurance companies and consumers.
Definition
Direct marketing in insurance is the use of television, radio, print, website
and social media advertising to attract customers. Typically, customers are
encouraged to contact the company directly to obtain quotes and start
policies.
Direct Mailings
Insurance companies frequently use mailings as part of a direct marketing
campaign. Prospective customers receive postcards or letters encouraging
them to contact the company.
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Marketing Efficiency
Direct marketing gives an insurance company greater control over the
message that is conveyed to potential customers. It also allows the company
to save money on advertising through economy of scale.
Convenience
Customers can enjoy the convenience of working with an insurance
company over the phone or via the Internet. In many cases, customers can
obtain quotes and coverage without leaving their homes or offices.
Savings
Because insurance companies save money through direct advertising, they
can pass those savings on to customers in the form of lower premiums.
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INSURANCE ADVERTISEMENT
Introduction
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Of course, knowing to whom you wish to advertise can only be part of the
promotional process, as there still needs to be a message to transmit. At this stage,
it may be beneficial to hire an advertising agent, designer, or other industry
professional to help fashion the kind of image and idea that is desired. While such
professionals can be of great help, they are not necessarily required; a growing
number of agents and brokers are using their own skills to put together simple
advertisements that are both attractive and effective. To tackle the content of
advertising for insurance alone, it may be of benefit to sit down with a brainstorm
or other organizational tool to arrange thoughts and ideas about the sort of
impression that should be made. Testing the results in a small batch run or putting
the advertisement or set of advertisements before a judging panel of colleagues
may be advisable before full publishing and distribution are completed.
After advertisements have been created and tested, with any necessary
revisions and refinements applied, they can be printed or otherwise mass-produced.
Though it is, in theory, possible to complete this step by hand, the vast majority of
insurance advertisers chose to work with a professional printing shop or other wellequipped service.
Advertising for insurance can then be distributed in whichever way is most
appropriate for the message; a consideration which is crucial in the creation of a
good campaign.
When these elements are combined with patience and skill, quality
advertising for insurance is a snap. Though preparing a first campaign can be
challenging, following these simple steps and incorporating personal, creative
ideas can result in effective advertising that makes great impressions, and will only
improve over time.
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Of course, knowing to whom you wish to advertise can only be part of the
promotional process, as there still needs to be a message to transmit. At this stage,
it may be beneficial to hire an advertising agent, designer, or other industry
professional to help fashion the kind of image and idea that is desired. While such
professionals can be of great help, they are not necessarily required; a growing
number of agents and brokers are using their own skills to put together simple
advertisements that are both attractive and effective. To tackle the content of
advertising for insurance alone, it may be of benefit to sit down with a brainstorm
or other organizational tool to arrange thoughts and ideas about the sort of
impression that should be made. Testing the results in a small batch run or putting
the advertisement or set of advertisements before a judging panel of colleagues
may be advisable before full publishing and distribution are completed.
After advertisements have been created and tested, with any necessary
revisions and refinements applied, they can be printed or otherwise mass-produced.
Though it is, in theory, possible to complete this step by hand, the vast majority of
insurance advertisers chose to work with a professional printing shop or other wellequipped service. Advertising for insurance can then be distributed in whichever
way is most appropriate for the message; a consideration which is crucial in the
creation of a good campaign. When these elements are combined with patience and
skill, quality advertising for insurance is a snap. Though preparing a first campaign
can be challenging, following these simple steps and incorporating personal,
creative ideas can result in effective advertising that makes great impressions, and
will only improve over time.
* Finalizing the budget:
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Insurance Agents
Insurance agents have become another important tool for advertising
insurance product. These agents have knowledge about the respective insurance
company details and its products in which they are working as agent. They provide
all the details about the insurance product to the potential customers and also
persuade the customers to buy the insurance policies. They also provide brief
details about the insurance policies. This advertisment are very famous in LIC ltd.
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Councelling advertisment
These are the non famous advertisment used by insurance companies. The
insurance companies take advantage of making customers in any seminar,
presentation etc. they too provide pamplets,brouchers etc to the potential
customers. Special seminar is conducted by a high qualified personnel like the
manager of the company for attracting the customers and too, pusuading them.
Television Advertising
Insurance advertising, which is worth over Rs 300 crore now, is set to enter a
new phase from August this year and Consumers may no longer be lured by
attractive ads and tall promises.
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The genre of insurance ads have changed over time in the way marketers
have tried to position life insurance as a category, shift ing from corporate brand
recall to introducing solutions. Today life insurance is not associated with death
and despair as much as it is with hope and security, which is getting reflected in
insurance advertising.
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"We will be evaluating all our advertisements and ensure that, by September
1, 2007, which is the prescribed grace period, we will be fully compliant with our
ad promotion. This will require us to review all our advertisements. We are going
through all the implications that the new guidelines will put through to not only our
Ulip but also to other products," Rahul Sinha, Marketing head, Kotak Mahindra
Old Mutual said.
"The changes in the trends in advertising is significant as ads are not going
to fight on the rupee spend and the recall but on differentiation of offer and
demonstrating the same at the point of sales," he added.
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"Our 'Sar Uthake Jiyo' campaign has made a huge difference for HDFC
Standard Life. While it has increased our overall brand awareness, our stress on the
need of children and pension plans has helped us grow in these segments and
increase our business. Till date HDFC Standard Life has been compliant with all
guidelines set by the Irda and ASCI in our advertising. We are going through the
Irda guidelines and may need to make some minor inclusions," Sanjay Tripathy,
Marketing head, HDFC Standard Life, said.
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Because of these valuable benefits, television is one of the most expensive ways to
advertise. A spot during primetime hours (8:00 PM until 11:00 PM) can cost 10 to
30 times more than a radio spot during drive time!
Disadvantages of television advertising include:
o
But despite these drawbacks, if you have the budget to incorporate TV advertising
in to your marketing practices, most experts agree that it's worth doing.
Due to the complex nature of television advertising, you will probably want to
consult with or hire an agency or representative to help you. Your representative
will guide the creative direction of the ad, pinpoint the programs between which to
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run your ad(s), and help you determine whether to run the ad on broadcast
television or cable television.
When it comes to advertising on television, it's important to shop around and find
the best fit for your businessand your budget.
Radio advertisements
The insurance company does advertise on radio. They inform the radio
instructor to repeat the name of the insurance company in each break or to repeat
the new insurance policy of the insurance policy. This way the attrat the viewer's
attention on radio.
Example: radio mirchi, radio city, red FM, fever 104, meow, etc.
Telemarketing
The telemarketing is very important tool for advertising about any respective
products of any insurance company. Now days the tele employees of insurance
company give a call to the potential customer and try to provide each information
about their products and also, try to convince them for buying the products. The
tele employees are given a task as per day, months, etc to sell the insurance
products through telecalling. Telephone sales, or telemarketing, is an effective
system for introducing a company to a prospect and setting up appointments.
Newspaper Advertising
When it comes to print ads, newspaper advertising is one of the best ways to
advertise your agency and products. Because nearly all households receive a
newspaper through a personal subscription or newsstand, newspaper advertising is
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a great way for your agency gain consumer recognition. Famous slogans or punch
lines of any life insurance or general insurance products are advertised in the
newspaper advertisement. They are the secondly common adopted types of
advertisement of insurance product. Newspapers are one of the traditional
mediums used by businesses, both big and small alike, to advertise their
businesses.
Advantages of newspaper advertising include:
o
People expect to see ads in the papersome even look for them
Disadvantages:
o
Ads have to compete for the reader's attention with all other ads on the
page
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Internet
Online advertising is a form of promotion that uses the Internet and World
Wide Web for the expressed purpose of delivering marketing messages to attract
customers. Now a days insurance products are also sold on internet. They
advertise the insurance products on the web pages of any. The web provider
manages to inform about the insurance policies of any company within a short
period of time. This are commonly used advertisements for insurance. This are the
other type of indirect insurance advertisement. Direct mail is a type of advertising
medium in which messages are sent to target customers through the mail.
Newcomers to the field of direct mail often use the terms "direct mail," "direct
marketing," and "mail order" interchangeably.
Outdoor Advertising
While outdoor advertising used to be contained to large signs and billboards,
businesses have expanded outdoor advertising to include benches, electronic signs
and public transit systemsgaining popularity as an affordable advertising
medium. Unlike television and newspaper advertisements, outdoor advertising is
not voluntary to the consumer.
Outdoor advertising include:
o
The public can't throw out or turn off outdoor advertising, resulting in a
true "captured audience"
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Truly effective outdoor advertising makes use of bold colors, simple backgrounds
and to-the-point text, which can present quite a challenge.
Disadvantages of outdoor advertising include:
o
As with television and print ads, you'll most likely want to consult with or hire an
outside advertising agency to help you build a campaign that best suits your agency
and the products you sell.
Magazine advertisements
This is the advertisements is done through magazines. The insurance
company sponsored the magazine to release in the society and in return they
advertise the policies of their company. This is the other types of indirect
advertisements done by the insurance companies. The magazines may be release
by any colleges, society, schools, apartments, etc. Magazines are a more focused,
albeit more expensive, alternative to newspaper advertising. This medium allows
you to reach highly targeted audiences.
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Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day
consumer getting immune to the exaggerated claims made in a majority of
advertisements, there exist a section of advertisers that still bank upon celebrities
and their popularity for advertising their products. Using celebrities for advertising
involves signing up celebrities for advertising campaigns, which consist of all sorts
of advertising including, television ads or even print advertisements.
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out with their family to watch a film, typically coming up when viewers are sitting
in their seats waiting for the movie to start.
Life insurance companies are also finding different innovative ways of
advertising their brand. They are distributing newsletters so as to reach target
customers in person. These firms are also advertising life insurance through their
business stationary and supplies. They distribute stuffs like pens, paperweights,
calenders etc with their names embarked on the stuffs. Online advertisements on
popular web portals is also being employed by these firms. Along with publicizing
their brand names, the life insurance companies also keep reminding people about
the importance of getting life insurance.
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secured life but also to build a nation with greater life expectancy ultimately
leading to a much brighter future of a country for its all-round development.
Health insurance is a field which has been experiencing alarming growth
rates in recent years nationwide, and which continues to be one of the most
lucrative areas in which insurance agents and brokers can work. With the universal
need for health care, having a pitch to express to health insurance prospects isn't
especially difficult, but agents and brokers working in this field will likely readily
acknowledge the fierce competition that exists as a result of the volume of health
insurance policies and packages being shopped for and sold. While selling health
insurance through traditional advertising strategies that incorporate emotional
triggers and excellent placement are still important considerations within these
fields, it is often the case that outperforming competition is a major factor in
successful health insurance campaigns.
Of course, rising over competition can be a tall order, especially when it
comes to the insurance world. The high degree of variability in size, scope, and
potential reach of agents and over-arching agencies means that not all hopeful
health insurance salespeople will be able to devote the resources necessary to outperform others. One of the most important considerations when approaching health
insurance advertising is the honest assessment of potential reach; that is, how large
and varied an audience a campaign will address. One this figure has been
produced, agents and groups can work towards identifying other health insurance
advertising sources that present realistic competition.
Tackling competition has become something of a catch-phrase in modern
business, and its essential meaning may be lost in the frequency with which it is
used. While some agents may enjoy the idea of seeing a competitor completely
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destroyed, truly out-classing another has more to do with the strength of individual
performance than with the direct effects on others. It's a good idea to become
familiar with the health insurance advertisements of others, and to get a feel for
their style and message; these elements can be used to consider the mindsets and
existing messages being shown o the audience you wish to reach. But beyond this
point, many of the best health insurance advertising practices are based simply on
doing well in an objective sense.
Apollo Munich Health Insurance Company Theme - Let's Uncomplicate Apollo
Munich Health Insurance Co Ltd. (Apollo Munich), the pure health insurance
company, Apollo Munich launches its new marketing campaign ...
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As with most things in the insurance world, this takes diligence, patience, and a bit
of personal cunning -attributes that insurance agents and brokers are likely to
already possess in abundance.
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that even when using a professional service, slogans may turn out to be less
successful than anticipated, and may need to be revised or entirely re-invented in
the future. Ultimately, a determined attitude and a bit of fun encouraged along the
way can lead to the perfect slogan whether it's created with the help of an outside
agency or is an entirely in-house affair.
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message or leave a positive or lengthy impression on those who are exposed to the
advertisement, a failing that can render a campaign practically worthless.
Rather than adapt the advertising styles and strategies deployed by other
insurance companies, it can be a great idea to work with basic, common-sense
guidelines for advertising, upon which individual ideas and efforts can be built.
Insurance companies advertising should follow the simple rules of advertising in
any line of business, focusing on targeting and effectively communicating with
certain demographics, and placing advertisements in quality, high-traffic areas that
can convey deep meaning to audiences.
Once methods for meeting these goals have been established, insurance
companies advertising is simply a matter of expressing the vision and personality
of the company itself.
Whether this expression is created by a dedicated professional or is
performed in-house is up to those producing the advertising, and both methods
have their own individual merits. Keeping work in-house is likely to be less
expensive than contracting the work to an outside talent or agency, though the
quality of designs in any medium as created by a seasoned professional may prove
to be well worth the expense. In either case, creating an accurate representation of
the flair of an insurance company, instead of attempting to make it align with the
image of its competitors, is a powerful idea with consistently positive results. The
answer to the question of how insurance companies advertising should look can't
truly be answered with a single collective image, though some professionals may
suggest that a magic formula or other special, proprietary tool is the secret to
insurance advertising success. Relying on the principles of good advertising for all
businesses while bringing insurance to the fore through portraying a company's
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personality is a dependable method for making any insurance company stand out
with a great image and a lasting ability to persuade and impress.
MAJOR MISTAKES DONE BY INSURANCE COMPANY IN
ADVERTISING
Envisioning a new advertising product, it's unlikely that a professional in
any field will take the time to consider what precisely they might do wrong, and
how badly the campaign might turn out to be as a result. Though it can be of great
benefit to make such considerations, it's far from an appealing task for most
people. In the world of insurance, however, the consideration of risk, and of what
might go wrong, are elements that help define and legitimize the industry as a
whole, and insurance agents and companies are likely to have such considerations
in mind throughout various tasks and stages of work -even when it comes to
advertising. Staying aware of the risks of any individual choice can go a long way
towards avoiding any unpleasant surprises, but it can also be beneficial to
investigate and understand common mistakes that are made in insurance company
advertising, so that repeat performances can be avoided without the hassle of
learning the lesson first-hand.
There are some major mistakes in insurance company advertising that are
fairly straightforward and which might be avoided in the first place by ensuring
that at least a minimal understanding of modern advertising is reached before a
campaign is started. Knowing what kind of people make up an intended audience,
and catering a message to them in a precise and individualized way, is an important
process that is all too often ignored, leading to wasted expenses and the possibility
of creating negative impressions. Targeting auto insurance advertising to groups
that are too young to drive or who have likely retired from the activity, or to those
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concerned about the environment and dedicated to public transport, for instance,
can have disastrous results.
Choose the wrong place or time to release an advertisement is another fairly
common mistake made in the world of insurance company advertising. Plastering a
poster anywhere and paying for an air spot on any and all radio stations can have
poor results, and such efforts tend to miss the quality prospects that could actually
become lucrative sales opportunities. Other mistakes frequently made by insurance
companies when working with advertising are less apparent to the inexperienced,
though they can be just as crucial to the success of a campaign.
Incorporating trendy images, slogans, or other elements into an insurance
advertisement may seem like a fun and convenient way to make an advertisement
fresh, or to create appeal to a young or hip audience, but using this technique can
often lead to difficulty in disassociating from the time-dependent aspect of the
advertisement at a later point, making an insurance company seem out-dated or
behind the times. In a similar vein, adopting the techniques and styles of other
insurance companies or competitors is a mistake that new and even seasoned
advertisers sometimes make, hoping to show audiences that they are just as
valuable as other companies. This method, however, often leads to the impression
of homogeneity, making it difficult for shoppers to distinguish between firms, so
that a simple association, rather than a distinction, is made. Avoiding common
mistakes in insurance company advertising is easy when basic advertising
guidelines are followed and care is taken to consider how different variables may
have an effect on a campaign.
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GUIDELINES ON INSURANCE
ADVERTISEMENT
GUIDELINES ON ADVERTISEMENT, PROMOTION & PULICITY OF
INSURANCE COMPANIES, AND INSURANCE INTERMEDIARIES
The success of sales communication depends on public confidence and the
faith they repose in the insurance companies, when they receive a communication
from them promoting their products. As such the insurers are expected to adopt
honest and fair practices in the market-place and avoid practices that tend to impair
the confidence of the public. As it is very difficult for the public to understand and
evaluate the latent intricacies involved in the various insurance products, it is of
paramount importance that the publicity material is relevant, fair and transparent
enabling informed decision making about whether or not to buy a specific
insurance product. The verbal communication that the prospects receive from their
advisors can be supplemented by the written material that is made available to
them. These guidelines issued with the above background are intended to protect
the interests of the insuring public, enhance their level of confidence on the nature
of sales material used and ultimately encourage fair business practices. They are
to be considered as the minimum standards to be adhered to, in addition to
compliance with the IRDA (Insurance Advertisements and Disclosure)
Regulations, 2000 (hereinafter referred to as Advertisement Regulations) and the
code of conduct prescribed by the Advertisement Standards Council of India
(ASCI) and any other regulations as applicable. These guidelines reinforce the
extant
regulations
on
all
promotional
communications
with
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Institutional advertisement:
Insurance advertisement:
Any advertisement issued with the specific purpose of soliciting insurance
business, and / or to influence the choice, opinion or behavior of the prospective
policyholders will fall under this category. Advertisement, for this purpose, means
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3. Guidelines on Advertisements:
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Coverage:
These guidelines apply to advertisements, issued through all recognised
marketing media, in any mode including printed material, radio, television, emails, hosting on the Internet and any other audio/visual electronic media.
General Requirements:
Dos: All insurance advertisements should ensure that:
Communications are clear, fair and not misleading whatever be the mode of
communication. They should use material and design (including paper size,
colour, font type and font size, tone and volume) to present the information
legibly and in an accessible manner.
Sales material and advertisements are comprehensible in the light of the
complexity of the product being sold.
Brand names of the product as proposed in the File and Use application are
adhered to.
When issued in vernacular languages, the mandatory disclosures are also in
the same vernacular language.
Donts
The design, content or format shall not disguise, obscure or diminish the
significance of any statement, warning or other matter which an
advertisement should contain as required by these guidelines.
Use or denigrate names, logos, brand names, distinguishing marks, symbols
etc., which may be similar to those already used by others in the market that
may lead to confusion in the market place.
Specific Requirements for an Invitation to Contract:
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a. The nature of the insurance contract (i.e., whether traditional/unit linked) and the
type of the product (i.e., its uniqueness or otherwise, whether annuity, pension,
health or whole life, home owners, shop keepers policies and any combination
thereof, etc.,).
b. The risks involved; the limitations and exclusions of the contract;
c. Illustrations which indicate the exact costs and charges; reasonable projections
of benefits; and full disclosures of the basis and sources of information (e.g.,
disclose date of NAV);
d. The commitment of the insurer and the policy holder under the contract (e.g. the
minimum amount to be invested; minimum and/or maximum sum assured; lock-in
period; the reasonable safety norms to be adopted in case of non-life insurance
products etc.,)
Where illustrations are provided, they should adhere to the guidelines
issued, if any, by the Authority or the Council.
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Text, graphics, hyperlinks and sound should be entirely consistent with all
the requirements specified in these guidelines.
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5. Rating/Ranking/Awards:
Any claim of rating/award should be based only on those declared by
entities which are independent of the insurance company and its
affiliates. Insurance company and its affiliates should not however, procure
services from such independent entities so as to get a rating/award.
Source of such rating/award is to be disclosed conspicuously and legibly in
such advertisements.
No claim of ranking by an insurance company, as regards its position in the
insurance market, based on any criteria (like premium income or number of
policies or branches or claims settlements etc.,) is permissible in any of the
advertisements.
6. Mandatory disclosure as specified by advertisement regulations and
applicable guidelines as may be specified from time to time should be clear,
conspicuous and legible and should find at least 10% of the total space
utilized for the advertisement in print/visual mode with a minimum print
equivalent to font Times New Roman In case of audio mode, these
disclosures should be spelt for at least 10% of the total time slot of the
advertisement.
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CONCLUSION
Insurance Advertising encourages brokers and sellers to earn for them by
selling more and more insurance products of their company. They try to convince
the customer and fulfill their demands and provide services according to their need.
Satisfaction of the customer is the utmost policy in this field of Insurance
Advertising. They use various methods to attract attention which may include
media, banner display, visual interaction, etc. Product advertising describes the
benefits from the product that it will give after it is being taken into consideration.
The other Insurance Advertising used is Institutional Advertising. It describes the
financial strength and stability of the company. Companies advertising may be
national, local or corporative; it entirely depends on the target of market and size.
Advertising and marketing are very competitive when it comes to personal
general Insurance Industry. The better you make strategy, the better you are as a
competitor. It entirely depends on the current scenario of the market as how the
likings and disliking of the common people are going in the world. Companies
have to keep themselves updated all the time for Insurance Advertising purpose.
An effective advertisement in any area of business often holds a special allure for
those who are approaching the task of advertising in their own fields. While it's
certainly common knowledge that there are a number of elements that go towards
creating a great advertisement, the initial look, as well as the less overt visual
elements, can seem to contain the secret of the advertisement's success.
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Bibliography
Books:
Theories and Practices in Insurance
Insurance watch
Business world
Business today
Webliography
www.insuremagic.com
www.licindia.com
www.insurancewatch.com
www.insuranceonline.com
Search engines:
www.google.com
www.ask.com
www.rediff.com
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