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by BBI Team on MAY 12, 2012 in MARKETING IN BANKING AND INSURANCE

Promotion Mix. POPULAR LATEST COMMENTS TAGS

The best advertising is done by List of 30 Project Topics on Insurance

MAY 11, 2012
a satisfied customer
TYBBI 6th Sem 2013 timetable announced
Philip Kotler FEBRUARY 26, 2013

Promotion is a descriptive term for the TYBBI Sem 5 Syllabus

mix of communication activities, which a MARCH 28, 2012

service organization carries out in order to

What after BBI?
influence the public on whom their sales
JULY 25, 2012
depend. It is an element in an
organizations marketing mix that serves to inform, persuade, or/ and remind people Interview with Prof. Aurora Vaz , BBI Head,
about an organization or individual goods, service, image, ideas, community Mithibai College
APRIL 2, 2012
involvement or impact on the society. It is used in hopes of influencing the
recipients feeling, belief or behavior through any form of communication.

Steps to create a favorable awareness amongst the target audience: ARCHIVES

STEP 1: Identification of Target Market: The target market is the focus of deciding January 2014
the promotion mix. The total number of groups is analyzed and decision is taken November 2013
October 2013
regarding which segment is to be targeted.
August 2013
February 2013
In case of insurance sector, mass marketing is favorable however, different policies
November 2012
are targeted towards customers from different income groups.
August 2012
July 2012
E.g. LIC (India) has introduced a new life insurance policy especially for rickshawallas
May 2012
and landless laborers.
April 2012
March 2012
STEP 2: Determination and Setting Objectives: Service marketers employ a range
November 2010
of promotional methods, so it is essential to What the promotion has to achieve. It
is necessary to define marketing objectives clearly so that most effective type of
promotion is designed and utilized. CATEGORIES

In case of insurance sector, the main objectives of a promotion campaign will be: Alerts
Articles
1) To make all or maximum population aware of the various insurance policies of Aspirant Queries

the company. Auditing

BBI Colleges

2) To promote the advantages of all the insurance policies. Career Fundas

Careers
3) To make the people aware of the risks involved and the importance of taking Case Studies

insurance. Customer Relationship Management

Economics I

Eg: LIC (India) conducts seminars and mass marketing campaigns in order to make Effective Communication I
Financial Management I
the customers aware of insurance and why it is needed.
Financial Reporting & Analysis

STEP 3: Message development for right communication effect: The message is Financial Services Management
Institutes
an instrument for converting a suspect into a prospect. To obtain an effective
International Banking and Finance
response from the target market, there is always need to plan an effective message
Jobs
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6/19/2014 Promotion Mix of Insurance Sector | BBI.co.in
such that promotional efforts cause: Marketing in Banking and Insurance
Principles of Management
Building of brand image Prof Talk
Service awareness Projects
Question Banks
The promotional message should aim: Reference Books
Result Alerts
To provide knowledge for service/product Security Analysis & Portfolio Management
To ensure that customer will have a positive perception for service/ goods Student Talk
promoted Syllabus
To build up preference for service/ goods offered Taxation of Financial Services
Topper Talk
In the insurance sector, LIC (India) and MetLife Insurance are examples of companies University Alerts
who have used promotion mix to promote insurance.

Eg: LIC (India) promotes its life insurance policies using the slogan Zindagi ke saath
META
bhi, zindagi ke baad bhi This creates awareness of risk of death as well as the Log in
importance of insurance. The slogan creates a positive perception about life Entries RSS
insurance in the minds of people. Comments RSS
WordPress.org
STEP 4: Selection of communication mix: There should be a careful blend of
promotion mix with the marketing strategy of the firm and each situation should be
examined for its merits and demerits. The following criteria should be considered
while devising different promotional techniques:

Overall marketing objectives

Nature of the service
Activities of the competitors
Characteristic of target customer
Cost effectiveness
Integration with other marketing elements
Requirements for effective implementation
Management Issues
Legal and ethical considerations

There are various methods and media through which the message can be
communicated to the consumer. In case of insurance, following media is used for
promotion purposes:

1) Advertising: It is a paid form of non-personal communication. It is used to

develop attitudes, create awareness and transmit information in order to gain a
response from the target market. Various media channels can be used for
advertisement such as print media, electronic media etc.

Eg: MetLifeIndia insurance has aired a television advertisement with the caption
line have you MetLife today? The advertisement shows that people are falling from
high places but instead of falling on the ground and getting hurt, they are falling on
a bed called MetLife. This advertisement assures the customer that the risk is covered
efficiently by the policies of MetLife insurance company.

2) Personal Selling: It is the most widely used method of promotion by all

insurance companies. They recruit, train and motivate the insurance agents to
convince the customers to buy insurance policies of that particular company. The
agent also collects the monthly premium and settles the claims of the customers.

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