MARKETING AND PROMOTION

Remembering the quotation above, this is a very important area for the insurer.
The particular areas of responsibility include:

(a) Public Relations: as explained, this may overlap to some extent with Customer Services, but the image of the company and its perceived standing in the eyes of the public is of great significance. This wide-ranging activity will include: (i) the co-ordination of all external communications; (ii) the co-ordination of media enquirers and interviews; (iii) press conferences, to announce or explain things, as necessary; (iv) preparing press releases and copy for trade and other journals.

(b) Promotions: organizing and coordinating their preparation and conduct.

(c) Advertising: closely interconnected with the above, this enormously important area includes: (i) selection of external agencies (if used); (ii) the extent to which TV or other media are to be involved; (iii) co-ordination of advertising campaigns; (iv) expenditure analysis and control.

Note: Advertising is an area which could involve massive expenditure. Great care must therefore be taken in its management and control. As one famous businessman said ‘Half the money I spend on advertising is wasted. Unfortunately, I do not know which half!’

(d) Sponsorship: insurers are frequently asked to sponsor industry or educational projects. Also, this is of course an important aspect of advertising, involving much time and probably a considerable budget.

(e) Market research: obviously, continuous monitoring of one's present and potential market is a vital element for a marketing department. This will seek to establish existing and perceived needs and demands in respect of insurance products.