a) Using the example of a service organization, explain what you understand by the marketing mix Introduction Marketing mix

coined by Borden (1960) may be defined as combination of marketing elements used in the sale of a particular product. McCarthy (1975) classified the mix as the 4 Ps for developing an effective marketing strategy, which encompasses: product, price, place (distribution) and promotion. When it's a consumer-centric marketing mix, it has been extended to include three more Ps: people, process and physical evidence. All these functions are considered in planning a marketing strategy, and any one may be enhanced, deducted, or changed in some degree in order to create the strategy necessary to efficiently and effectively sell a product. Depending on the industry and the target of the marketing plan, marketing managers will take various approaches to each of the 4 Ps. Marketing mix in insurance with reference to Lion Assurance Co. Ltd Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, burglary, etc. Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. It is also pertinent that they think about the innovative promotional measures. It is not sufficient that the company performs well but it is also important that it lets others know about the quality of services and contributions rendered.

Insurance marketing refers to the marketing of insurance services with the aim of creating customers and generating profits through customer satisfaction. Insurance marketing focuses on the formulation of an ideal mix for insurance business so that the insurance organization survives and thrives in the competitive environment. Lion Assurance Limited is a member of TA Holdings and belongs to a regional insurance group which has its presence in Botswana, Uganda and Zimbabwe. They draw from the strong interaction of the business units in the various countries to ensure that the insurance solutions it offers are world class. They sell insurance services to the corporate, commercial and personal markets. The corporate business division is supported by various underwriting managers, who assist brokers in designing a complete range of tailor-made insurance products. Lion Assurance deals in selling services through the marketing mix that includes 7 Ps of marketing i.e. the product, price, place, promotion, people, process & physical evidence. The seven Ps can be used for marketing Lion Assurance products, in the following manner: Product: A product means what is produced or generated. A product can be in form of goods or services. Successful companies find out what customers need or want and develop the right product with the right level of quality to meet those needs now and in the future. The product must provide value for the customer. This value is the eye of the beholder-we must give our customers what they want and not what the company thinks they want (CIM, 2009). In Uganda, Lion Assurance provides various insurance schemes such as property insurance against all risks such as accidental loss or damage of portable items e.g. laptop

computers, mobile phones and fixed phones, office equipment and furniture, burglary, fire, business interruptions, machine breakdown; group personal accidents; motor vehicle; fraud; agriculture; travel insurance among others. Pricing: A product is only worth what customers are prepared and willing to pay for it. The price also needs to be competitive but it does not necessarily have to be the cheapest. The price must also provide a profit because it is the only element of the marketing mix that generates revenue. In designing pricing strategies, a company must live up and be consistent to the higher quality expectations of the customers- packaging, environment, promotional materials, letterheads, invoices, among others (CIM, 2009). In Lion Assurance business the pricing decisions are concerned with: the premium charged against the policies, interest charged for defaulting the payment of premium and credit facility, and commission charged for underwriting. The pricing in insurance is in the form of premium rates. Lion Assurance uses premium rates to determine pricing of the services they sell their insurance plans such as mortality, expense and interest. The premium rates are revised if there are any significant economic changes and change in legal framework. Place: Place is a way of displaying the companys product to customer groups. This could be in a shop window, but it could also be via internet (CIM, 2009). The place where customers buy a product, and the means of distributing your product, and the means of distributing your product to that place, must be appropriate and convenient for the customer (CIM, 2009).The product must be available in the right place, at the right time and in the right quality, while keeping storage, inventory and distribution costs to an acceptable level. In Lion Assurance, this component of the marketing mix is related to two important facets managing the insurance personnel, and locating a branch.

Lion Assurance personnel and agents maintain a norm of offering the services through accessing their customers by emails, meetings at the customers premises, train policy holders when ever called upon. Lion Assurance has an accessible head office at Kololo and sub offices in various districts across the country where they display their services for public viewing and also have a website where their clients can log on to view their services. Promotion: This is a way a company communicates what it does and what it can offer customers to their satisfaction. It includes activities such as advertising, branding, public relations, corporate social responsibility, special offers and exhibitions. Promotion must be appealing, tell a consistent message and above all else give the customer a reason to choose the companys product (CIM, 2009). Promotion ensures that the companys internal and external stakeholders are aware of the value and attributes of the companys products. Lion Assurance employs agents who move to offices requesting for presentations of their services, they advertise their products on radios, Televisions, newspapers, magazines, they pinch their tents at various functions such an annual exhibitions at Uganda Manufacturers Association grounds, National Social Security Fund dialogues and forums with their staff talking to the public about their products. They also participate in fundraising for noble causes such as the fundraising dinner for furbishing Mulago neuro ward, print out brochures and calendars which they give out to their cliets.

People: These are employees or agents of the organizations that directly or indirectly interface with the clients. They are involved in the sale and purchase of products of the company. CIM, 2009 notes that, anyone who comes into contact with the companys customers will make an impression and that have a profound effect-positive or negative- on

customer satisfaction. They add that the reputation of the companys brand rests in the hands of its people. Therefore, they must be appropriately trained, well motivated and with the right attitude. Many customers can not separate the product or service from the staff member who provides it which shows the importance of the companys people. Lion Assurance believes that their people are their greatest assets. They include staff, agents, policyholders or the general public and believe each of them has a role to play. Process: The process of giving a service and behavior of those who deliver the crucial customer satisfaction. Issues such as waiting time, the information given to customers and the helpfulness of staff are vital to keep the customer happy (CIM, 2009). In insurance industry, the process should be customer friendly, easy and convenient to the customers. The speed and accuracy of payment is of great importance. For instance, Lion Assurance has in place various departments responsible for different activities of their services for instance the claims department makes sure that compensation is done on a timely manner, they ensure that the third party service providers such as Walusimbi garage do not delay with their customers vehicles if they are taken for repair, injury cases are also compensated on time without having hassles of following them up by clients. Physical evidence: A service cannot be experienced before it is delivered. This means, choosing to use a service can be perceived as a risky business it is not tangible. This uncertainty can be reduced by helping potential customers to see what they are buying through case studies and testimonials, facilities such as a well decorated reception area of the companys office, signage. There is Lion Assurance sign post at acacia avenue directing people to their office, the reception area is decorated with posters of the services

they offer. When a corporate company wants to engage in business with them, they provide a list of their clientele for reference checks to find out about their services and reputation.

b) What do you think is the importance of the marketing mix for a company operating in Kampala? Successful marketing depends upon addressing a number of key issues. They include: what a company is going to produce; how much it is going to charge; how it is going to deliver its products or service or its customers; and how it is going to tell its customers about its products and services. Kampala District is both an administrative and business centre bordered by Wakiso District to the south, the west and the north and by Kira Municipality to the east with an estimated growing population of 1,659,600 (UBOS, 2010). It is characterized by high unemployment levels, difference in income levels and different lifestyles. Marketing mix for a company operating in Kampala is important due to the following: Marketing mix helps a company on focusing on a particular target group/segmet

Marketing mix provides a valuable framework for allocating financial and human resources. Every company has to allocate a certain amount of its precious resources towards its marketing efforts, and they need to be used in the most effective way. For instance, A well blended marketing plan helps with goal achievement, which will constitute the companys tactical-tool-kit for establishing strong positioning in the target markets. For instance

Marketing mix can also promote customer satisfaction, by delivering a special customer benefit tied together with each element of the 7 marketing p's. For example the Price could be fixed in such a way that imposes minimum cost to the customers, and Promotion activities may be designed in a way to properly and completely "communicate the message" of the company to targeted consumers in the correct markets.

The marketing mix has benefits for a small business that wants to market their business. The marketing mix consists of the choices and decisions that a business must make to bring their product or service to the market. For insatnace

The marketing mix is known as the 4 Ps because each ingredient affects the other. The marketing mix is the way in which a business uses price, product, place, promotion, people, process and physical evidence to sell its product or service. All businesses should spend a certain amount of their finances on marketing. There is some work to do to find out what customers want and how the company can produce the product or service at a price that will represent a value to them.

2011 Estimated Populations of Ugandan Cities And Towns 2010 mid-year projected
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E. Jerome McCarthy (1975)Basic Marketing: A Managerial Approach," fifth edition, Richard D. Irwin, Inc., p.37. Borden, Neil H. (1964), "The Concept of the Marketing Mix," Journal of Advertising Research, 4 (2), 2-7. Philip Kotler, Gary Armstrong, "Principles of Marketing, 12th Edition" Prentice Hall | 2008 Read more at http://ebookee.org/Principles-of-Marketing-12th-Edition-PhilipKotler_883685.html#5gI6OKqK3OIDjJb5.99