CHAPTER 1 INTRODUCTION TO MARKETING

Marketing is one of the most important expect that help any product
to develop and same is the case for Insurance sector and their product.
Insurance is a basically a service which is provided to the people rather
than a physical product therefore it is effected by service marketing.
Almost every marketing textbook has a different definition of the term
marketing. The American Marketing Association (AMA) uses the
following: The process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges
that satisfy individual and organizational objectives.
Some of the main issues of marketing involved include:
Marketers help design products, finding out what customers want and
what can practically be made available given technology and price
constraints.
Marketers distribute products there must be some efficient way to get
the products from the factory to the end-consumer.
Marketers also promote products, and this is perhaps what we tend to think
of first when we think of marketing. Promotion involves advertising and
much more. Other tools to promote products include trade promotion (store
sales, coupons, and rebates), obtain in favorable and visible shelf-space, and
obtaining favorable press coverage.
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FLOWERS OF SERVICES
Flower of services refer to a well-formed package of total
services with all the supplementary services being well formulated
along with the core services. The various petals of the flower are

Information:
2

A marketer needs to provide adequate information to his

employees and his customers. This information is general information
provided through various communication channels. In the insurance
industry information is provided to the customers with the help of:
o Agents
o Seminars
o Web sites
o Print media
o Radio, Television, etc.
Consultancy:
This is additional customized information provided to the
potential customers by the service provider. In the insurance industry
it is provided by companys staff and agents.
Example: In LIC when a customer enters asking of information about
the policy, he is directed towards the assistant sales manager.
Assistant sales manager will listen to the customers requirement and
as per his requirement list the number of policies that are available.
He will also ask the customer about the price and limit the number of
options for the customer, so that he can easily choose the policy
without confusion.

 Order taking:
Order taking should be done without mistakes. In LIC order
taking is generally done by:
o By Agents
o On Web site (www.licindia.com)
o By Assistant sales manager directly in the office.
Hospitality:
Hospitality is a very pretty petal, reflecting pleasure at meeting
new customers and greeting old ones when they return. Hospitality
finds its full expression in face-to-face encounters. In LIC customers
directly come in contact with the sales manager. The customers are
treated as guests. The sales managers of LIC are given special training
of how to sell the policies to the clients. It is only in LIC that a
customer can meet the chairman directly without any appointment.
Safe keeping:
It is in the process and procedures used by marketers to safe
guard and to maintain secrecy. In LIC the data of the customers is
very important. They feed the data of the customers in their Front
and Application Program Software which is connected with all the
branches of LIC. The data is only available with the sales people and
not shown to any person.
4

 Exceptional:
Exceptional service means service over and above customers
expectations.
LIC has the fastest claim settlement in the world thereby providing
exceptional service. LIC also solves complains of the customers
within 7days.
Payment:
The payment of premium is normally through cheques.
Customer can make payment in LIC through:
o Agents
o Loans
o Web sites
o Standing instruction to banks:
In this the account holder will give standing instruction to his bank
to pay the amount of premium every month without his consent on
the given date directly to LIC.
Billing:
The billing should be done in such a way that there are no
mistakes and if there are any they must be immediately rectified. The

billing should provide break-ups of premium charged, service

charges, etc.

STRATEGY IMPLEMENTED FOR MARKETING

Basically there are 4 steps to be followed before selecting a marketing
strategy. These steps are as follows:
1. Identification of Target Market:
The target market is the focus of deciding the promotion
mix. The total number of groups is analyzed and decision is taken
regarding which segment is to be targeted.
Example: LIC (India) has introduced a new life insurance policy
especially for childrens (JEEVAN ANURAG).
2. Determination and Setting Objectives:
Service marketers employ a range 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.

In case of insurance sector, the main objectives of a promotion

campaign will be:
To make all or maximum population aware of the various
insurance policies of the company.
To promote the advantages of all the insurance policies.
To make the people aware of the risks involved and the
importance of taking insurance.
Example: LIC (India) conducts seminars and mass marketing
campaigns in order to make the customers aware of insurance and
why it is needed.
3. Message development for right communication effect:
The message is an instrument for converting a suspect into a
prospect. To obtain an effective response from the target market, there
is always need to plan an effective message such that promotional
efforts cause:
Building of brand image
Service awareness
To provide knowledge for service
To ensure that customer will have a positive perception for
service promoted
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 To build up preference for service offered

In the insurance sector, LIC (India) and MetLife Insurance are
examples of companies who have used promotion mix to promote
insurance.
E.g.: LIC (India) promotes its life insurance policies using the slogan
Zindagi ke saath bhi, zindagi ke baad bhi This creates awareness
of risk of death as well as the importance of insurance. The slogan
creates a positive perception about life insurance in the minds of
people.
4. Selection of promotion 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
Activities of the competitors
Characteristic of target customer
Cost effectiveness, etc.

7 PS OF SERVICE MARKETING OF INSURANCE

PRODUCT

The 7Ps of service marketing will be discussed below in

respect of Insurance sector and their product. The 7Ps of service
marketing are:

 Product mix
Price mix
Place mix
Physical evidence
People mix
Process mix
Promotion mix

Product Mix
A product is anything that can be offered to a market to satisfy
a want or a need. A product mix is the set of all products and items
that a particular seller offers for sale. In case of insurance sector, the
product mix comprises of Life and Non life insurance policies that
are offered to the customer by the company. A companys product mix
has certain width, length and depth.

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 The Width of a product mix:

It refers to how many different product lines are available. In
case of insurance sector, there are generally three different product
lines i.e. Life Insurance, Marine Insurance and Fire Insurance.
Life Insurance:
Life insurance is a financial resource for your family and loved
ones in case of your death. It is a contract between you and an
insurance company in which the company provides your beneficiary
with a certain amount of money upon your death. In return, you make
periodic payments (premiums) in an amount that depends on medical
history, age, gender, and occupation.
General Insurance:
The term general insurance essentially applies to the insurance
risk that is not life insurance or health insurance risk and so the term
covers familiar forms of personal insurance motor vehicle insurance,
fire insurance and travel insurance.

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INSURANCE

LIFE INSURANCE

GENERAL INSURANCE
Fire
Insurance

Whole Life
Policy

Marine
Insurance

Limited
Payment Life

Motor
Insurance

Convertible
Whole Life
Policy
Joint Life
Endowment
Policy

Business
Risk
Burglary
Insurance

Double
Endowment
Policy
Jeevan Saathi
Money Back
Policy
Annuity Plans
Group
Insurance
Policy

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 The depth of a product mix:

Various products and their different types. In the insurance
sector, one policy can be made available in different variations. Some
of the examples are as follows:

Life Insurance:

Whole Life
Insurance

Whole Life with

Profit Policy

Limited Payment
Whole Life Policy

Single
Premium
Whole Life
Policy

These product mix dimensions permit the company to expand its

business.
E.g.: It can add new product lines thus widening its product mix.

13

Price Mix
Price is one element in the marketing mix that produces
revenue; all the other elements produce costs. Prices are easiest
marketing mix elements to adjust; product features, channels and even
promotion take more time. Price also communicates to the market the
companys intended value positioning of its product or brand.
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.
Premium:
Premiums are the periodic payments usually monthly or
quarterly that the policy holder pays to the insurance company to
purchase and keep a policy in force.
For example in case of life insurance according to the policy it may
be the amount payable during the endowment term of the policy or
until the death of the life assured whichever is earlier.
Insurance is essentially a matter of sharing risk. A thousand
people contribute a certain fixed amount (i.e. premium) and in future
if something were to go wrong with any of the mass contributors, the
lump sum collected as premiums is used to compensate for the loss.
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The basis on which the insurance company decides the amount of

premium to be paid by each person is determined mainly by 3 factors:
Mortality Tables:
All insurance companies refer to different mortality tables.
These tables differ from country to country. The mortality table
indicates the probability of a person dying in a particular age group.
For e.g. in an age group of 25-30 years, the probability might be just
two, but this probability would increase for a higher age group of 4550 years.
Expected Surplus:
The premiums collected by the insurer are invested in capital
markets. There is a fixed investment pattern for the insurer. Out of the
surplus earned on the premiums invested, 95% is distributed to the
policyholders and the insurance company retains the balance 5%.
If an insurer expects to earn more return on his investment then he
would charge more premiums to his investor.
Expenses:
An insurance company has to incur expenses in the form of
commission to agents, office expense, advertising expense, salaries to
employees. These expenses are to be managed by the company in the
5% surplus earning which they earn as mentioned above. In order to
meet the above expenses the insurer has to collect more premiums so
that there is more surplus from which expenses can be met.
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Place Mix
Place mix can be defined as the Physical distribution i.e. the
delivery of goods/ services at the right time at the right place to the
customers. Place decisions involve building relationships with the
wholesalers, retailers and through these intermediaries building
relationships with the customers. Products and services must be at the
right place, at the right time in order to be consumed. Probably the
best way to perceive place is to think of the flow of products from
manufacturer through intermediaries to the consumer or user. This
flow can be thought of as a channel used to move goods and services.

Channels:
According

to

Philip

Kotler,

Channels

are

sets

of

interdependent organizations involved in the process of making the

product or service available for use or consumption Marketing
channel decisions are among the most critical decisions facing the
management.

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The channels chosen intimately affect all the other marketing decision
In case of insurance sector, the following channel of distribution is
followed according to the target market:
CHANNELS
Direct Selling

Agents
Financial Advisors
Call Centers
Bancassurance

Partner Selling

Postal Department
Selling through Corporate

Direct Selling:
Agents:
The agents are selected and recruited by the development officer of
the insurance company. These agents inform the customers about the
various insurance policies offered by the company and convince them
to buy these policies.

17

Financial Advisors:
The financial advisors are also consulted by the customers regarding
their financial matters. These advisors suggest their clients to get their
goods insured against any calamity or risk. Hence they act as a
channel in distribution of insurance.

Bancassurance:
With the evolution of interconnected financial services, banks are
converting themselves into one stop financial supermarkets. This
has promoted two big classes of financial institutions: banks and
insurance companies to combine and deliver an innovative product
i.e. Bancassurance. In bancassurance, the insurance products are sold
through the banks network of branches.
Call centers:
The people who require insurance call up the call centers. These call
centers send their direct marketing agents who go to the customers
place and sell the insurance policy.

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Postal Department:
India has an extremely well developed postal network, which is even
stronger than the network of banks in the country. Post offices have
been established even in the interior parts of the country. Insurance
companies can tie up with the postal department to sell and distribute
various insurance covers. This would certainly require upfront
training costs, as the postal employees in turn need to educate and sell
the concept and benefits of insurance to the people in rural areas.
Such a tie up with the postal department would open up Indias rural
areas, which are largely untapped for insurance sector. This can prove
to be a sustainable source of growing revenues.

Selling Through Corporates:

Insurance can be sold through corporates too.
E.g.: When a customer purchases a Maruti car, he gets the insurance
of the car free from the Maruti Company itself. Thus this is termed as
selling insurance through corporates.

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Physical Evidence
Physical evidence is the environment in which the service is
delivered and where the company and the customers interact and any
tangible goods that facilitate the performance and communication of
the service. Services are intangible and heterogeneous. Intangibility
means that services cannot be displayed, physically demonstrated or
illustrated; heterogeneity means that consumers cannot be certain
about performance on any given day. It plays a major role in
enhancing customers perception of the service quality.

Insurance

Tangibles as Physical

Service
1
2
3
4
5
6
7
8
9

Evidences
Policy Documents
Brochures
Periodic Statements
Renewal Notices
Business Cards
Stationary
Calendar, Diaries
Letters/Cards
Website

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People Mix
Employees:
Employees are very crucial because:
1.
2.
3.
4.

They are the service

They are the brand
They are the marketers
They are the organization in the eyes of the customers.

The various employees involved in providing service to the customer

in insurance sector are:
Customer service representatives:
They, process insurance policy applications, changes, and
cancellations. They review applications for completeness, compile
data on policy changes, and verify the accuracy of insurance
21

company records. They may also process claims and sell new
policies to existing clients. Nowadays, these workers are taking on
increased responsibilities in insurance offices, such as handling most
of the continuing contact with clients.
Marketing and sales managers:
These constitute the majority of managers in carriers local
sales offices and in the insurance sales agents segment. These
employees sell insurance products, work with clients, and supervise
staff.

Claims adjusters, appraisers, examiners, and investigators:

Claims adjusters work for property and liability insurance
carriers or for independent adjusting firms. They inspect property
damage, estimate how much it will cost to repair, and determine the
extent of the insurance companys liability; in some cases, they may
help the claimant receive assistance quickly in order to prevent further
damage and begin repairs. Adjusters plan and schedule the work
required to process claims, which may include interviewing the
claimant and witnesses and consulting police and hospital records. In
some property-casualty companies, claims adjusters are called claims
examiners, but in other companies, a claims examiners primary job is
to review claims to ensure that proper guidelines have been followed.

22

Insurance investigators handle claims in which companies

suspect fraudulent or criminal activity, such as suspicious fires,
questionable workers disability claims, difficult-to-explain accidents,
and dubious medical treatment. Investigators usually perform
database searches on suspects to determine whether they have a
history of attempted or successful insurance fraud.

Underwriters:
Underwriting is another important management and business and
financial occupation in insurance. Underwriters evaluate insurance
applications to determine the risk involved in issuing a policy. They
decide whether to accept or reject an application, and they determine
the appropriate premium for each policy.
Insurance sales agents:
About 15 percent of wage and salary employees in the industry are
sales workers, selling policies to individuals and businesses.
Insurance sales agents, also referred to as producers, may work as
exclusive agents, or captive agents, selling for one company, or as
independent agents selling for several companies. Through regular
23

contact with clients, agents are able to update coverage, assist with
claims, ensure customer satisfaction, and obtain referrals. Insurance
sales agents may sell many types of insurance, including life,
annuities, property-casualty, health, and disability insurance. Many
insurance sales agents are involved in cross-selling or total
account development, which means that, besides offering insurance,
they have become licensed to sell mutual funds, annuities, and other
securities.

Lawyers:
The insurance industry employs relatively few people in professional
or related occupations, but those who are so employed are essential to
company operations. For example, insurance companies lawyers
defend clients who are sued, especially when large claims may be
involved. These lawyers also review regulations and policy contracts.
Nurses and other medical professionals advise clients on wellness
issues and on medical procedures covered by the companys
managed-care plan.

24

 Customers:
People mix not only includes employees but also customers. The
customers are to be treated with respect and courtesy. Customer is the
king of the market. Satisfaction of the customer is the primary motive
of the insurance industry as well as all the organisation

Process Mix
In case of insurance sector, the process mix includes the various
interactions that take place between the insurance agent and the
customer in the process of selling the policy to the customer till the
settlement of claims.
The following process mix is followed by insurance companies in
case of life insurance:
1. The insurance agent calls up the customer and informs him about
the different policies offered by the company and the price mix of

25

all the policies. If, the customer seems interested in taking the
policy then, he fixes an appointment with the customer.
2. The insurance agent meets the customer and gives him some
information about the insurance company and also about the
benefits of the policy.
3. The customer is then asked to fill a financial review form (FRF)
and the agent is asked to find out the standard of living of the
customer so that the insurance company gets a clear picture about
the financial condition of the customer and what kind of policy he
can afford.

4. The insurance company offers various policies but they might not
be suitable for the customer hence, on the basis of his requirements
and financial status, the insurance agent suggests two or three
policies to the customer, which will be suitable for him.
5. The insurance agent explains the different policy plans in detail to
the customer i.e. the amount of premium to be paid, the time
interval at which the premium is to be paid, the benefits of each of
the policy etc. A brochure is also provided to the customer wherein
the entire description of all the policies is given.
26

6. Then, the insurance agent provides a feedback form to the

customer and asks him to give his feedback regarding the policies
that he has been informed about. This feedback is taken in order to
find out whether the customer is satisfied with the plans of the
policy or whether the company needs to make the policy plans
more attractive so that it may appeal to its future customers.

7. Then, the next appointment is fixed by the insurance agent with

the customer and in this meeting; the customer selects the policy
plan, which appeals to him. The customer is then asked to fill up
the proposal form which contains various details of the payment
and he is asked to make the first premium payment.
8. Then, the insurance agent submits the duly filled and signed form
in the insurance office along with the other necessary documents.
E.g.: Medical Reports in case of Life Insurance.
27

9. Then, a reconfirmation is taken by the agent from the customer

that he agrees with the terms and conditions of the policy.
10.The insurance agent then regularly collects the premium from the
customer whenever the premium becomes due.

Promotion Mix
Promotion is a descriptive term for the mix of communication
activities, which a service organization carries out in order to
influence the target customers on whom their sales depend. It is an
element in an organizations marketing mix that serves to inform,
persuade, or/ and remind people about an organization or individual
goods, service, image, ideas, community involvement or impact on
the society. It is used in hopes of influencing the recipients feeling,
belief or behaviour through any form of communication.
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The types of promotional methods used in insurance sector are

as follows:
Advertising
Public relations
Sales Promotion
Personal Selling
Word of Mouth.

Advertising:
It is a paid form of non-personal communication. It is used to create
awareness and transmit information in order to gain a response from
the target market. Forms of advertising are as follows:
1. News Papers and Magazines:
LIC give ads in the news papers and magazines round the year
to continue its brand image and also when new products are
introduced. Normally its ads are published in Times of India.

29

2. Electronic media:
Insurance companies also advertise its services in the
Electronic media like:
Internet (Websites):
Companies

like

LIC

(www.licindia.com),

ICICI

(www.iciciprudential.com) all have websites from which

people can get the information about their products, prices,
various schemes, and lots of other information. People can also
purchase the product through this website.

Television:
Companies like LIC, Met Life India, advertise on television to
make people aware of their products and services.
Radio:
ICICI Prudential advertises on 92.5 red Fm.
3. Brochures:

30

Companies provide brochures to the customers so that they can

have a look on various schemes and their prices. Eg: LIC have
brochures of various schemes that are available different
languages i.e. Hindi, Marathi, English, and other regional
languages. They provide the brochure of the scheme the
customer has chosen, in the language which they understand.
Brochure will provide the customer the information like
features of the scheme, amount of premium to be paid, rebates
(if any), etc.

4. Hoardings:
LIC put its hoardings where there is a mass flow of people,
especially outside the railway station or at the backside of the bus. When
Met Life was introduced it has put his hoardings on the side of the train, to
target huge number of people

31

 Public relations:
Public relations are helpful for the companies to build their brand
image, to maintain good relationship with customers, to make the
people aware of its recent happenings, etc. Mediums of Public
relations are:
1. Press releases:
This helps the company to convey its message to its customers and
other people.
2. Seminars:
These are held to provide information about the new product
launched, position of the company in the market, etc.

Sales Promotion:
1. Gifts:
LIC provides diaries, pens, booklets, etc to its customers.
2. Sponsoring Events:
E.g.: Max New York Life Insurance Company has sponsored
the recent India-Zimbabwe-New Zealand tri series.

32

 Personal selling:
Agents:
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.

Chapter 2 Insurance Businesses

INTRODUCTION

A promise of compensation for specific potential future losses in

exchange for a periodic payment. Insurance is designed to protect the
financial well-being of an individual, company or other entity in the case of
33

unexpected loss. Some forms of insurance are required by law, while others
are optional. Agreeing to the terms of an insurance policy creates a contract
between the insured and the insurer. In exchange for payments from the
insured (called premiums), the insurer agrees to pay the policy holder a sum
of money upon the occurrence of a specific event. In most cases, the policy
holder pays part of the loss (called the deductible), and the insurer pays the
rest. Examples include car insurance, health insurance, disability insurance,
life insurance, and business insurance.

Insurance, in law and economics, is a form of risk management

primarily used to hedge against the risk of a contingent loss. Insurance is
defined as the equitable transfer of the risk of a loss, from one entity to
another, in exchange for a premium. Insurer is the company that sells the
insurance. Insurance rate is a factor used to determine the amount, called the
premium, to be charged for a certain amount of insurance coverage. Risk
management, the practice of appraising and controlling risk, has evolved as a
discrete field of study and practice.

Security has always been a universal desire, right from the earliest
civilizations. This quest for security has been a major motivating force in the
progress of mankind. The early societies looked up to their families for
providing this security, which resulted in cohesive units. Gradually, as
lifestyles changed and as man progressed into a more modern industrialized
setup, this cohesive quality of the family started fading. One had to look for
other ways of providing economic security and somewhere along the line
was born insurance.
34

REASONS FOR BUYING INSURANCE PRODUCTS

Ask individuals wanting to buy life insurance, about how they
do their tax planning and the first reply will be - insurance policy.
Such is the nature of life insurance. It is bought by almost everyone
right from the bigwigs of the business world to small retail investors.
And most buy it for one core reason - to save tax. But this is not the
only reason.
Living too long:
Advances in the field of medicine have grown by leaps and
bounds over the past few decades. Due to this, life expectancies have
gone up. This poses another problem for individuals. It is generally
observed that individuals who tend to live way beyond their earning
years like say, till the age of 85 or 90, usually face a problem coming
to terms with increasing costs of living.

Fear of passing away early:

One is never sure about life. We often come across people
claiming that nothing is going to happen to them; that they are too
young to pass away. But do they really know what the future holds for
them? We can assure you they don't, because the question `What if?'
has probably never crossed their minds. We only have to read
35

newspaper headlines about the Tsunami, the earthquake that took

place and such other natural calamities to understand how the future
can be unpredictable.
Individuals need to insure themselves to secure the future of
those who are dependent on them; especially so if they happen to be
the sole breadwinners. You wouldn't want them to go through
hardships or rely on others/relatives, etc. This, in fact, is the prime
reason why one should buy an insurance policy.
Painful Existence:
Maybe an individual has planned well during his earning years
to secure himself financially. He has also designed his financial
portfolio in such a way that he is drawing a comfortable monthly
income to support his family expenditure. Life insurance can act as
the saving grace in two ways. One, by way of a medical rider like the
accidental death benefit rider, permanent disability benefit rider,
critical illness benefit rider. These riders are taken along with the life
insurance plan and help cover the medical expenses.

Tax benefits:
Do we need to elaborate on this any further? Traditionally, life
insurance has always been bought more for tax benefits than for what
It is actually purported to do; i.e. insure human life. But the role of
36

life insurance in an individual's tax planning cannot, in any way, be

undermined. Under the new regime, individuals can now invest up to
Rs 100,000 in insurance premium to avail of a deduction from taxable
income. The tax sops provided on insurance help `increase' the
individual's disposable income and make him consider taking a life
insurance plan which he otherwise may not have done.
Investment:
The other major persons who invest in Insurance are those who
have earned good money in their young age and want to invest in
some safe investment scheme which also provides additional benefits
like life insurance cover and pension benefits at later stages of life.

FUNCTION OF INSURANCE
PRIMARY FUNCTIONS:
a) Providing Protection:
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The primary function of insurance is to provide protection

against future risk, accidents and uncertainty. Insurance cannot check
the happening of the risk, but can certainly provide for the losses of
risk. Professor Hopkins observes "Insurance is a protection against
economic loss, by sharing the risk with others.
b) Collective bearing of risk:
Insurance is a device to share the financial loss of few among
many others. Dinsdale opines, insurance is a mean by which few
losses are shared among longer people. Similarly, William Bevridge
observes, "The collective bearing of risks is insurance." All the
insured contribute the premiums towards a fund and out of which the
persons exposed to a particular risk is paid.
c) Provide certainty:
Insurance is a device which helps to change from uncertainty to
uncertainty. This may the reason that John Magee writes that the
function of insurance is to provide certainty. Similarly, Regal andMiller observe, "Insurance is device whereby the uncertain risks may
be made more certain".

SECONDARY FUNCTIONS:

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a)Prevention of losses:
Insurance cautions individuals and businessmen to adopt
suitable device to prevent unfortunate consequences of risk by
observing safety instructions; installation of automatic sparkler or
alarm systems, etc. Prevention of losses causes lesser payment to the
assured by the insurer and this will encourage for more savings by
way of premium. Reduced rate of premiums stimulate for more
business and better protection to the insured.
b) Small capital to cover larger risks:
Hinsdale observes, insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks
and uncertainty.
c) Contributes towards the development of larger industries:
Insurance provides development opportunity to those larger industries
having more risks in their setting up. Even the financial institutions
may be prepared to give credit to sick industrial units which have
insured their assets including plant and machinery.

Chapter -3 Insurance Marketing

39

Marketing of insurance products have become an important activity in the

insurance business. Insurance marketing is found both in the life insurance
sector as well as in non-life insurance sector.

Life Insurance Marketing

An Introduction to Life Insurance Marketing
Life Insurance Marketing is one of the most strenuous jobs for those who are
involved in the insurance marketing.. It is because of the everlasting conflict
between the insurance companies which want to profit the most and the
insured person who wants to get as much compensation as possible from the
insurance company. Commissions for the Life Insurance companies are very
high and they seldom make profits out of the policies. Also the insurance
policy needs to be transparent so that the potential customer understands it
totally and should not feel that they have been treated unfairly by the
insurancecompany.

Reasons for Life Insurance Marketing

The Life insurance companies were paid very little premiums by young
40

children or healthy people and thus the scope for profit was very small and
those who paid high rates of premium were the older beings who died and
the Life insurance companies compensate for that. However nowadays the
Life insurance premiums are almost the same for an young adult and an old
person who just had a major operation.
As the Life Insurance Marketing Companies already deals with this
type of a scenario, what one can do is to change the public perception about
the Life insurance companies. One can connect himself or herself with
companies whose workers need a plan for Life Insurance. One can also go to
crowded places and advertise for the Life insurance company. The Life
insurance companies also offer fliers and hanging banners. One can also
offer free Life check in a reputed place to the insured for at least once. One
should always give the life insurance policy holders existing a chance to
prefer the marketing techniques that the insurance company is presenting.
If the policy holder does this at a regular basis then the company has a high
chance of succeeding.

This is making the competition much tougher for the Life insurance
companies as most of the companies offer similar types of premiums and
facilities. So it has become very important for the life insurance companies
to concentrate on Life Insurance Marketing and attract as many people as
41

possible towards their company.

The Life Insurance Companies prefer to go for Group Life Insurance for a
group of people from a particular company or a family so that they get a
group of customers and even if they compensate for some of them for
various reasons they usually make it up with other's premiums. They also get
fewer papers to control and also they provide better facilities for their
clients. So to promote this type of policy they need to have social and
industrial connections. Life Insurance market helps developing that. Even
for other policies like term life insurance and permanent life insurance one
needs to be aware of making people realize the profits of the policy by
various means provided by marketing agencies.
So before going for a Life Insurance Marketing one actually needs to
know the market target and the desires of the people who are actually seen
as potential insurance customers.

Life Insurance Marketing Strategies

A very common way to promote a Life insurance company through

Life Insurance Marketing is to make the name of the company familiar
42

to others by means of television commercials, handling out pamphlets,

hanging banners in populated areas and by providing exciting offers.

Telephone marketing is another way of Life Insurance Marketing. One

can see the telephone companies send messages about various offers and
they even make phone calls. Web Insurance Marketing is another good
strategy to promote insurance policies. The pop ups that one sees while
using Internet are actually a very effective way of sending messages
across the potential insurance customers.

One should listen to the existing Life Insurance Policy Holders as well
as the potential Life insurance policy holders and listen to what people
who actually matters have to say. One common problem that the insured
persons face is that the insurance companies do not inform its clients about
the hike in the premium rates. These things should be kept in mind. Not
only that, a client should be informed about everything related to his
policy and the Life insurance company should keep the transparency as
much as possible.

Community Life Insurance Marketing is another different way to

get promotion and a high recognition for the Life insurance company.
43

Eminent workers join local community institutions, such as Chamber of

Commerce, and by signing up there one can help out various projects that
take place. These kinds of activities and social works on behalf of the Life
insurance company helps the company to get free publicity as their names
are published in news paper and in media also. Doing charity works also
helps the Life insurance companies to come across various people who act
as volunteers and can act as their potential Life insurance clients. People
also like to deal with like minded people and companies and this is how
many deals are made.

A Life Insurance Company should not charge different Life insurance

client different charges for the same policy. This kind of policy gives the
Life insurance policy holders the feeling that they are being treated
unfairly and also that the Life insurance companies are only looking for
profits and not the betterment of customer welfare.

When a Life insurance claim is filed, especially for a very big hefty
amount, the Life insurance company should help out the policy holder in
processing out the paperwork. One should not let bureaucracy enter and
make it so difficult for the one making the claim so that he gives his
claim .This has always been a common tactic on the insurance company's
part to avoid paying claims claimed by the policy holder. This though
makes a short term profit for the company but it hurts in the long run as
the reputation of the company is hampered severely.

People in this Life insurance industry should always try to keep in

constant contact with the existing customers as well. The competition in
the insurance market is so fierce today that no company wants to loose out
44

on a customer to another company. Clients who are not contacted for a

longer period of time normally fail to remain loyal to the insurance
company and look for a different Life insurance company. The company
can keep the records of the client's birthday and days like anniversary and
sent him or her small tokens of love or loyalty at a regular basis. If the
company can afford a little more it can send dinner coupons to the Life
insurance policy holder. These things play a major role and can be
considered as an effective Life Insurance Marketing strategy.

May be the most crucial thing in insurance marketing is to always

speak about unity and honesty while dealing with a business. A Life
Insurance Holder can find so many frauds in various life insurance
companies today, that life insurance customers are going for products and
services which are trustworthy to them. Feeling safe is about insurances
and other things are most important as far as the insurance holder is
concerned. So, if a company remains loyal to its customers it will itself do
Life Insurance Marketing for itself. So, only by remaining loyal to its
customers the company can do a world of good to its reputation.

Health Insurance Marketing

45

An Introduction To Health Insurance Marketing

Health Insurance Marketing is one of the most difficult jobs in insurance
marketing. It is because of the everlasting conflict between the insurance
companies which want to profit the most and the insured person who wants
to get as much compensation as possible from the insurance company.
Commissions for the health companies are very low and they very seldom
make profits out of health insurance.
Reasons for Health Insurance marketing
The health insurance companies were paid very little premiums by young
children or healthy people and thus the scope for profit was very small and
those who paid high rates of premium were the older people who often get
ill and the health insurance companies compensate for that. However
nowadays the health insurance premiums are almost the same for a healthy
young adult and an old person who just has had a major operation.
As the Health Insurance Marketing Companies already deal with this type of
a scenario, one can have an alternative view of the health insurance
companies. One can be associated with companies whose workers need a
plan for health. One can also go to crowded places and advertise for the
health insurance company. For the purpose of advertisement the health
insurance companies offers fliers and hanging banners.

46

They also offer free health checks in reputed places to the insured. One
should always give the life insurance policy holders, existing or potential, a
chance to understand the gifts and opportunities the insurance company is
presenting to make them comfortable and make them feel that they care for
the clients. If this is done regularly by the company then there are high
chances of success in attracting customers on the part of the company.
This has invited tough competition for the health insurance companies as
most of the companies offer similar types of premiums and facilities. So it
has become very important for the life insurance companies to focus on
Health Insurance Marketing and attract as many people as possible towards
their company.
It is hence mandatory for one to know about the market target and the
desires of the customers before going for health insurance marketing.
The confusion about the way a Health Insurance Marketing conductor can
draw the potential Insurance holder's attention evaporates fast if he knows
his targets and aims clearly. So, it is important to conduct a survey and then
aim at attracting people.

47

Health Insurance Marketing Strategies

A very common way to promote a health insurance company through

Health Insurance Marketing is by making the name of the company
familiar to others by means of television commercials, handling out
pamphlets, hanging banners in populated areas and by providing exciting
offers.

Telephone marketing is another way of Health Insurance Marketing.

One can see the telephone companies send messages about various offers
and they even make phone calls. Web Insurance Marketing is another
good strategy to promote insurance policies. The pop ups that one sees
while using Internet are actually a very effective way of sending messages
across the potential insurance customers.

One should listen to the existing Health Insurance Policy Holders as

well as the potential health insurance policy holders and listen to what
people who actually matters have to say. One common problem that the
insured persons face is that the insurance companies do not inform its
clients about the hike in the premium rates. This things should be kept in
mind. Not only that a client should be informed everything related to his
policy and the health insurance company should keep the transparency as
much as possible.

48

A Health Insurance Company should not charge different health

insurance client different charges for the same policy. . This kind of policy
gives the health insurance policy holders the feeling that they are being
treated unfairly and also that the health insurance companies are only
looking for profits and not the betterment of customer welfare.

When a health insurance claim is filed, especially for a very big hefty
amount, the health insurance company should help out the policy holder in
processing out the paperwork. One should not let bureaucracy enter and
make it so difficult for the one making the claim so that he gives his
claim .This has always been a common tactics on the insurance company's
part to avoid paying claims claimed by the policy holder. This though
makes a short term profit for the company but it hurts in the long run as
the reputation of the company is hampered severely.

Community Health Insurance Marketing is another way to get

promotion and a high recognition for the health insurance company.
Eminent workers join local community institutions, such as Chamber of
Commerce, and by signing up there one can help out various projects that
take place. These kinds of activities and social works on behalf of the
health insurance company helps the company to get free publicity as their
names are published in news paper and in media also. Doing charity works
also helps the health insurance companies to come across various people
who act as volunteers and can act as their potential health insurance
clients. People also like to deal with like minded persons and companies
and this is how many deals are made.
49

Insurance Agency Marketing

The basic of an Insurance Agency Marketing is to increase the impact of
an insurance company's business as much as possible. Insurance Agency
Marketing is used to make the project work and profit as much as possible.
Every insurance company has its own Insurance Agent Marketing budget
and the company employs its Insurance Marketing Agent accordingly. Some
choose cheap agencies and some choose Insurance Agency Marketing who
are renowned in the market better known as branded agencies.
Most of the big insurance companies prefer branded agents because the
bigger ones have better resource and better employees than the smaller ones.
It is important to choose a suitable Insurance Agency Marketing because
more than anything else the insurance products would be sold on the basis of
itspresentation.
Any customer today gives special emphasis on proper information. Most of
the Insurance customers or the potential insurance holders are well informed
today and that is why Insurance Agency Marketing should depend mainly
on the media that provide information. So the marketing agency should
concentrate on providing information in the media like news paper,
television magazines and through Internet as well. This is a very easy and
cheap way to make people aware of one's company. Another way the
Insurance Agency Marketing can go on which is by employing good
salesman who can work as individual agent for the company.

50

Chapter 4 Recent Strategies

Strategies adopted by the players in the market
Gone were the days when the customers were forced to take up the kind of
products whatever coming from LIC's and GIC's stables. But now, the
customer has been portrayed as the king and to his delight, the products are
redesigned and customized suiting his need taking into account his paying
capacity and multiple benefits.
Let us look at the strategies adopted by the players in the market.
Shift in the product portfolio
Earlier the entire industry was revolving around investment and savings
oriented plans. As the interest rates are moving southwards, all the players
are deliberately focusing on selling pure risk covers in an effort to capture
the new customers. The premium on such products is low as it covers only
the risk aspect and does not factor in investments or savings. Even the
market leader LIC has withdrawn some of the products, which are
positioned, on the assured returns platform. Though the share of the term
plans in the product portfolio is quite negligible, the shift towards the term
products is already visible. Typically a term plan does not provide anything
by way of maturity, unlike money back or endowment policies.

51

Value For Money (VFM)

The sea change since the sector opened up has been on the way the basic
products have been packaged innovatively, often tailor made to provide a
bundle of benefits to the customers. This is possible through the introduction
of riders, which have added value to the risk cover at minima Riders are
nothing but add-ons coming along with the base policies for a slightly
additional premium. Riders have become the major instruments for the
organizations to lure the customers away from the competitors.
Tapping the Niche Markets
Private insurers are concentrating much on designing attractive products by
investing heavily on research, studying life expectancy and health statistics
across age groups, income levels, professionals and regions on their own
instead of relying on data with state insurers. The products are designed with
a technical team of actuaries and a product development team working
closely together to target the niche market.
Thrust to the rural markets
Thanks to the norms stipulated by the regulator IRDA, all the players have
turned their eyes towards the rural market. The rural obligation on part of the
new private insurance companies is incremental in nature. It goes from 5%
to 15% over the period of 5 years for life insurance and from 2% to 5% in
case of general insurance.

52

MODERN MARKETING APPROACH

INTRODUCTION
The Insurance sector plays a vital role in the economic development of our
nation. It acts as a mobilize of savings, financial intermediary, promoter of
investment activities, stabilizer of financial markets and a risk manager.
India is still an under-insured country in the world. It is at the 18th position
among Life Insurance markets and 28th in Non-Life Insurance markets in
the world. This indicates that there is a huge potential, yet to be explored.
MODERN MARKETING APPROACH
Marketing strategies for insurance in the emerging scenario could be
understood in terms of the following steps:
R >>>>>> STP>>>>>MM>>I>>>> C
Here, R = Market Research
STP = Segmentation, targeting, positioning
MM = Marketing Mix
I = Implementation
C = Control
Having done market research and finalizing on segmentation, targeting and
positioning the strategy would focus on the marketing mix namely, Product,
Price, Place and Promotion.

53

While determining the implementation methodology, the four characteristics

viz. Intangibility, Inseparability, Perishability and Variability gives rise to
certain unique requirements that deserve careful attention while formulating
the marketing strategy for insurance. After implementation, the insurers
should concentrate on the effective control that would enhance their
business.

In India Insurance is sold and not bought. The agents / Advisors by using
various strategies sell the product by convencing the customers.
This approach to selling their products requires understanding of concepts
and principles borrowed from the fields of psychology, communications, and
sociology and needs a lot of personal commitments and self discipline
from

the

seller.

The commitments referred are:

Finding and understanding the needs of the customers.
Partnering with the customers.
Helping the customers to achieve his business and other objectives by
the purchase of the product or service.
Believing that your products / services are a great fit with your
customers needs, and
Believing in yourself and your ability to help the customers in solving
their problems.

54

PUNCH LINES AND LOGOS WHICH ARE ALLOTTED

BY SOME COMPANIES:
It helps to create awareness about the brand among the target
audience. It also helps the company to convey its message to the
customer.
Brand

Positioning: Tag Line

LIC

Zindagi ke saath bhi, zindagi ke baad bhi

Oriental

Prithvi, Agni, Jal, Aakash, Sabki suraksha hamare

Insurance
Max New York

paas
Your partner for life

ICICI Lombard

Business Uninterrupted

Birla Sunlife

Your dreams, our commitment

ING Vyasya

Adding life to insurance

ICICI

We cover you at every step in life.

Prudential
Aviva

Kal par control

Royal

Beyond Expectations

Sundaram
Bajaj Allianz

Haske Jeeyo Yaar

55

Chapter -5

MARKETING TRIANGLE FOR INSURANCE

56

 Company:
The company makes various promises to its customers through External
Marketing. The external marketing function relates to anything that is
communicated to the customer before the service is delivered. There are
many factors beyond the traditional marketing mix that communicate to the
customers in case of LIC.
The Marketing Mix i.e. the product, price, place and promotion of LIC is
been already explained the 7 Ps. However, the important role of Agents in
LIC cannot be neglected.
Agents:
LIC is a kind of organization where Agents play one of the most
prominent roles. No customer could get an insurance policy without the help
of an Agent.
So in the above diagram the Agents are considered on the both the levels
(Company & Employee level) as per their role.
External Marketing is generally undertaken by the Company whereby the
Company makes certain promises to the Customer through Marketing Mix.
But LIC is an exception. Here even the Agents sometimes work as the

57

Company itself i.e. they themselves carry out External Marketing and
commit certain promises to its potential customers.

Employees:
The agents and the development officers act as the front-line staff and
they are in direct contact with the potential or existing customers. They are
the ones who keep or satisfy the promises made by the company. The
marketing of insurance basically comes under concept selling. The agents
are thus given various incentives, rewards, commissions and all the
necessary training required.
As regards incentive, they receive PLI (Productivity Linked
Incentive), which is based on the increase in premium amount and the sums
assured by the agent. They are also given extra commissions in case of
policies, which are of high value. There are normal promotions for any good
work done on a regular basis. The agents generally work under the training
and guidance of their respective development officers.
These incentives provided to the Agents and other employees are a
part of Internal Marketing. Internal Marketing relates to meeting the needs
of the employees so they can meet the needs of their customer. As explained
above, the company tries to meet the needs of the employees or try to
motivate them through their needs there by satisfying customer needs.
58

 Consumers:
The consumers are the policyholders. Apart from the routine life
insurance policies other services like housing finance, mutual funds, pension
and group insurance. Thus the range of consumers is far and wide.
The employees of the Company need to convince the Customers
through Interactive Marketing. Interactive Marketing is nothing but
implementation of a marketing policy that is founded on direct interactive
contact with the customer or the desired customer. It is done through
different types of Employee-Customer communication, Customer Oriented
Programmes, after sales services etc.
As explained earlier, the LIC Agents try to convince the customers to
get the appropriate policy provided by the Company. Word of mouth
promotion and Personal Approach is one of the major aspects of Interactive
Marketing in any Insurance Company.

59

MARKET SEGMENTATION
According to Philip Kotler Market segmentation is the subdivision of a market into homogenous sub-sets of customer where
any sub-set may conceivably be selected on a market target to be
reached with a distinct marketing mix
Thus market segmentation is the process that segments a market
into smaller sub-markets called segments. Segmentation is normally
performed along with demographic, geographic, psychographic, and
behavioural variables;
Demographic variables describe characteristics of populations
and include age, gender, race, education, occupation, income,
religion, marital status, family size, children, home ownership,
socioeconomic status, and so on.
Geographic

variables

include

various

classifications

of

geographic areas, for example, zip code, state, country, region,

climate, population, and other geographical census data. Note that
this information can come from national census data.
60

 Psychographic variables describe life style, personality, values,

attitudes, and so on.
Behavioural variables include product usage rate and end, brand
royalty; benefit sought, decision making units, ready-to-buy stage, and so
on. This information can be extremely useful for marketing purposes.

Criteria of effective segmentation:

Measurable- size, purchasing power characteristics of the segment must
be measurable
Substantial - The segment must be substantial enough to earn profit
Accessible- The segment must be accessible
Differential- The segment must be conceptually distinguishable and
respond differently to different marketing mix
61

 Actionable- Effective programme must be formulated for serving the

segment

Insurance Market Segmentation:

In insurance industry, profiling is very important in determining
premium rates. Typically, insurers collect every information available.
However, analyzing thoroughly is not feasible since the number of variables
is normally large.
The starting point is thus mass marketing. In mass marketing, the
seller engages in the mass production, mass distribution and mass promotion
of one product/ service for all buyers. A niche on other hand is a more
narrowly defined group seeking a distinctive mix of benefits.
In terms of target customers, insurance products can be broadly
classified into products that can be used to indemnify perils that are faced by
a few individuals or industries. These can be termed as mass market and
niche market products. Also, in terms of product complexity, insurance
products can be categorized into low complexity and high complexity
products.
Low complexity products: These are simple products with a standard set
of covered risks, perils and hazards.
62

High complexity products: They have a large number of riders and

warranties and do not indemnify certain causes of loss.

IMPORTANCE OF SEGMENTATION IN INSURANCE:

Helps to understand the need and the requirement of the
policyholder and accordingly helps to cater i.e. the needs and the
requirement rural sector is different from the urban sector
Segmentation helps in having a microscopic study of culture
language, likes and dislikes. This helps in marketing decision
which indirectly helps to cater all segments like rural & urban,
men & women, agriculture and industrial.
Segmentation helps to make promotional measures more creative
like advertisements, personal selling, pricing/fee decision.
Segmentation helps to cover maximum policy holder. It helps to
identify profitable segment and helps in formulating attractive
packages.

63

 Many successful insurance companies will recognize the Internets

potential as a powerful marketing tool. Not only might this reduce
costs for insurance companies, but it also could enable many
clients to turn to the Internet first to get information on their
policies, obtain quotes, or submit claims.

Chapter - 6 Surveys and Analysis

HDFC BANK

HDFC Bank Ltd. is a major Indian financial services company based in

India, incorporated in August 1994, after the Reserve Bank of India allowed
establishing private sector banks. The Bank was promoted by the Housing
Development Finance Corporation, a premier housing finance company (set
up in 1977) of India. HDFC Bank has 1,725 branches and over 4,232 ATMs,
in 779 cities in India, and all branches of the bank are linked on an online
real-time basis.
It is one of the Big Four banks of India, along with State Bank of India,
ICICI Bank and Punjab National Bankits main competitors.
Business focus
HDFC Bank deals with three key business segments. - Wholesale Banking
Services, Retail Banking Services, Treasury.
64

It has entered the banking consortia of over 50 corporates for providing

working capital finance, trade services, corporate finance and merchant
banking. It is also providing sophisticated product structures in areas of
foreign exchange and derivatives, money markets and debt trading and
equity research.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corp to small & mid-sized
corporates and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of for its to corporate
customers, mutual funds, stock exchange members and banks.
Retail banking services
The objective of the Retail Bank is to provide its target market customers a
full range of financial products and banking services, giving the customer a
one-stop window for all his/her banking requirements. The products are
backed by world-class service and delivered to customers through the
growing branch network, as well as through alternative delivery channels
like ATMs, Phone Banking, Net Banking and Mobile Banking. HDFC Bank
was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro
debit card as well. The Bank launched its credit card business in late 2001.
The Bank is well positioned as a leader in various net based B2C
opportunities including a wide range of internet banking services for Fixed
Deposits, Loans, Bill Payments, etc.
Treasury
65

Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. These services are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury
business is responsible for managing the returns and market risk on this
investment portfolio.

HDFC BANK LTD has branches in 33 States

Andra Pradesh
Kerala
West Bengal
Uttaranchal
Uttar Pradesh
Tripura
Tamil Nadu
Sikkim
Goa
Gujarat

Rajasthan
Punjab
Pondicherry
Orissa
New Delhi
Nagaland
Mizoram
Meghalaya
Haryana
Himachal Pradesh

Maharashtra
Arunachal Pradesh
Assam
Bihar
Chandigarh
Dadra & Nagar Haveli
Daman & Diu
Delhi
Jammu & Kashmir
Jharkhand

Findings:

HDFC has more than 10- 12 products of insurance

Advertisement is done through paper, hoardings, statements, T.V,
walk-in to branches, personal guidance.
HDFC provides special training to insurance agent

66

 Performance of agent is based on the lead generation and the lead

conversion made via follow- ups, no. of policies sold.
They have no co- branding strategy.

AXIS BANK
Axis Bank Limited, formerly UTI Bank,
is a financial services firm that had begun
operations in 1994, after the Government
of India allowed new private banks to be
established. The Bank was promoted jointly by the Administrator of the
Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance
Corporation of India (LIC), General Insurance Corporation Ltd., National
Insurance Company Ltd. The bank changed its name to Axis Bank in April
2007 to avoid confusion with other unrelated entities with similar name.

Branch Network
The Bank's Registered Office is at Ahmedabad and its Central Office is
located at Mumbai. At the end of September 2010, The Bank has a very
wide network of more than 1281 branches and Extension Counters (as on
31st December, 2010).The Bank has a network of over 5303 ATMs (as on
31st December, 2010).Axis Bank one of the largest private sector financer in
India for Agriculture loans wiz Retail Agri, Commodity & Corporate Agri
Findings:

67

 Axis has more than 8 insurance products.

Advertisement is done through banners, brochures etc
Axis bank has tie-ups with Max Newyork Life insurance co.
They do not provide any special training to insurance agent. The
agents are trained and appointed by Max- Newyork Life insurance
which has tie-ups with Axis Banks.
Then the agents are sent to various branches of Axis bank for selling
insurance products.

CONCLUSION
Marketing of Insurance is essential ingredient for selling
insurance product. Insurance product is intangible.
Insurance company uses different marketing measures to
convince the customers and increase market shares.
Private company are using various 7ps to sell product. Private
players are successfully market their products.
After privatisation marketing is essential for all private
companies.
Life Insurance Companies as well as 16 private players they
advertise their products through Agents, Television etc.

68

 Marketing of Insurance can be useful for companies who want

sell the policies, increase profit share, market share.
Thus it is clear, that insurance sector is booming and is one of
the most dynamically growing sectors of the Indian chapter.
Growth potentials are tremendous, and in era of cutthroat
competition, the best marketer can reach to dizzying heights.

BIBLOGRAPHY
Books
Service Marketing by Ravi Shankar
Insurance by M. J. Mathew
Marketing in Services by Philip Kotler

Webliography
Websites
69

 www.wikipedia.com
www.hdfc.com
www.axis.com
www.google.com

Annexure

Questionnaires
1. How many insurance products do you have in your organization?
2. Which advertisement promotional methods are used? Which one is
best?
3. What are segmentation criteria for marketing insurance product?
4. What kind of hierarchy is maintained at marketing level?
70

5. Do you provide any special training to an insurance agent?

6. How do you analyze their performance?
7. What is overall percentage advertisement expenditure?
8. Do you have any co-branding strategy? If yes which is other
company?

71