CAIB 4 – Marketing Questions and Answers 100% Pass

CAIB 4 – Marketing Questions and Answers 100% Pass Define positioning advantage Refers to how the brokerage is perceived by clients in relation to competing brokerages. "image of the brokerage" Positioning is in relation to other brokerages operating in the same environment Image is the clients perception of the brokerage Three ways a brokerage can be positioned in relation to its competition 1. Low or high priced 2. Low or high service quality 3. Faster to settle claims Define differential advantage Refers to any feature, service, or product offered by the brokerage which differentiates or from others. Provides an advantage because clients deem it as being important to them. Three ways a brokerage may have a differential advantage 1. 24 hour access via technology 2. Superior client service 3. Large variety of services or products Components of a marketing action plan 1. Financial Schedules 2. Timetable 3. Evaluation procedure Financial Schedules Part of marketing action plan Business analysis with forecasted sales, expenses and products. Outlines a budget and breakdown of resources needed to achieve various objections. Timetable Part of marketing action plan Schedules and clarifies when various activities will be carried out Evaluation Procedures Part of marketing action plan Outlines what will be measured and how/when performance will be evaluated Must measure level of client satisfaction and strength of client relationships Purpose of marketing segmentation Dividing total market into sub-markets typically based on characteristics like geography, demographics, etc Top-down market segmentation Start with the mass market and divide it into smaller segments Bottom down market segmentation Starts with information about individual clients and defines segments based on those characteristics Allows marketers to develop a clearer picture of segments currently being served and the types of clients to target in the future Five most commonly used categories to identify client segments 1. Demographics 2. Geographic information 3. Psychographics