LOMA 291 Module 3 UPDATED Questions
and CORRECT Answers
Marketing - CORRECT ANSWER - Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
Marketing plan - CORRECT ANSWER - A written document that states the marketing
goals for a product or product line, and describes the strategies and the implementation and
control efforts the company intends to use to achieve those goals.
Marketing plans contain:
- An executive summary, or a brief highlight of the purpose, recommendations, costs, and
intended results
- A situation analysis, or an explanation of the environmental factors affecting marketing
operations
- Marketing objectives
- Marketing strategies
- Tactical/action programs, or a description of the activities to be carried out
- Budgets
- The evaluation methodology, or the controls the company will use to analyze progress toward
goals
The Marketing Mix - CORRECT ANSWER - To market effectively, marketing
departments need to understand the details of
Product
Price
Promotion
Distribution
,These four variables work together to attract customers, trigger buying, and help companies meet
business goals.
Product - CORRECT ANSWER - The goods, services, or ideas that a seller offers to
customers to satisfy a need.
Some specialization possibilities for insurance - CORRECT ANSWER - Under life
Insurance are term life, whole life, group life, universal life, variable universal life, indexed
universal life, and final expense insurance. Under medical are group major medical, individual
major medical, and supplemental medical. Under disability are short-term disability, long-term
disability, and long-term care.
or
Under annuities are qualified annuities, nonqualified annuities, fixed annuities, variable
annuities, indexed annuities, immediate annuities, and longevity insurance. Under retirement are
401(k), 401(b), and pension plans. Under voluntary benefits are dental insurance, vision
insurance, and critical illness insurance.
Product Mix - CORRECT ANSWER - The assortment of products a company offers.
Financial design - CORRECT ANSWER - The combination of all the financial features of
a product.
Which of these do you think are potential features of insurance product financial design? Choose
all that apply.
Required premium payments
Mortality charges
Charges for features, benefits, guarantees, etc.
Fees for services, transactions, etc.
Charges (if any) for early surrender or withdrawal
,How fast the cash value accumulates
Investment or interest rate minimum guarantees
Guaranteed income, accumulation, or withdrawal benefits - CORRECT ANSWER - All of
them
distribution - CORRECT ANSWER - The collection of activities and resources involved in
making products available for customers to buy.
Face to face meeting methods - CORRECT ANSWER - Career agents
PPGAs
Independent agents
Broker/dealers
Registered investment advisors (RIAs)
Banks and other depository institutions
Other insurance companies
Employee benefits brokers
direct to consumer methods - CORRECT ANSWER - Email
Company website
Phone
Mail
Promotion - CORRECT ANSWER - The collection of activities that companies use to
make customers aware of their offerings and to influence customers to purchase, and distributors
to sell, a product.
3 types of promotion:
- personal selling
- advertising
, - publicity
personal selling - CORRECT ANSWER - conversation between a sales agent and one or
more prospective customers, either face to face or over the phone. Insurers use personal selling
extensively, because it is an effective way to convey information about a complex product.
he customer can ask questions to clarify information
The financial professional can customize the message to fit the situation
Advertising - CORRECT ANSWER - Any paid form of nonpersonal communication or
promotion about a company or its products or services that an identified sponsor generates and
transmits through any type of media
Institutional advertising - CORRECT ANSWER - Advertising that seeks to promote a
general image of the company rather than to explain a specific product. Also known as image
advertising.
product advertising - CORRECT ANSWER - Any advertising used to promote a specific
product or service.
publicity - CORRECT ANSWER - Any form of nonpaid communication about a person,
place, thing, or cause.
Another marketing mix model: The four C's - CORRECT ANSWER - Customer: The
insurer analyzes who its customers are, what their needs are, and what products it can provide to
meet those needs.
Cost: The insurer examines the value of its product for customers and the appropriate price to
ask, given the alternative products available from competitors.
Convenience: The insurer ensures that customers can learn about and purchase its products in the
ways that best meet their needs and preferences.
and CORRECT Answers
Marketing - CORRECT ANSWER - Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
Marketing plan - CORRECT ANSWER - A written document that states the marketing
goals for a product or product line, and describes the strategies and the implementation and
control efforts the company intends to use to achieve those goals.
Marketing plans contain:
- An executive summary, or a brief highlight of the purpose, recommendations, costs, and
intended results
- A situation analysis, or an explanation of the environmental factors affecting marketing
operations
- Marketing objectives
- Marketing strategies
- Tactical/action programs, or a description of the activities to be carried out
- Budgets
- The evaluation methodology, or the controls the company will use to analyze progress toward
goals
The Marketing Mix - CORRECT ANSWER - To market effectively, marketing
departments need to understand the details of
Product
Price
Promotion
Distribution
,These four variables work together to attract customers, trigger buying, and help companies meet
business goals.
Product - CORRECT ANSWER - The goods, services, or ideas that a seller offers to
customers to satisfy a need.
Some specialization possibilities for insurance - CORRECT ANSWER - Under life
Insurance are term life, whole life, group life, universal life, variable universal life, indexed
universal life, and final expense insurance. Under medical are group major medical, individual
major medical, and supplemental medical. Under disability are short-term disability, long-term
disability, and long-term care.
or
Under annuities are qualified annuities, nonqualified annuities, fixed annuities, variable
annuities, indexed annuities, immediate annuities, and longevity insurance. Under retirement are
401(k), 401(b), and pension plans. Under voluntary benefits are dental insurance, vision
insurance, and critical illness insurance.
Product Mix - CORRECT ANSWER - The assortment of products a company offers.
Financial design - CORRECT ANSWER - The combination of all the financial features of
a product.
Which of these do you think are potential features of insurance product financial design? Choose
all that apply.
Required premium payments
Mortality charges
Charges for features, benefits, guarantees, etc.
Fees for services, transactions, etc.
Charges (if any) for early surrender or withdrawal
,How fast the cash value accumulates
Investment or interest rate minimum guarantees
Guaranteed income, accumulation, or withdrawal benefits - CORRECT ANSWER - All of
them
distribution - CORRECT ANSWER - The collection of activities and resources involved in
making products available for customers to buy.
Face to face meeting methods - CORRECT ANSWER - Career agents
PPGAs
Independent agents
Broker/dealers
Registered investment advisors (RIAs)
Banks and other depository institutions
Other insurance companies
Employee benefits brokers
direct to consumer methods - CORRECT ANSWER - Email
Company website
Phone
Promotion - CORRECT ANSWER - The collection of activities that companies use to
make customers aware of their offerings and to influence customers to purchase, and distributors
to sell, a product.
3 types of promotion:
- personal selling
- advertising
, - publicity
personal selling - CORRECT ANSWER - conversation between a sales agent and one or
more prospective customers, either face to face or over the phone. Insurers use personal selling
extensively, because it is an effective way to convey information about a complex product.
he customer can ask questions to clarify information
The financial professional can customize the message to fit the situation
Advertising - CORRECT ANSWER - Any paid form of nonpersonal communication or
promotion about a company or its products or services that an identified sponsor generates and
transmits through any type of media
Institutional advertising - CORRECT ANSWER - Advertising that seeks to promote a
general image of the company rather than to explain a specific product. Also known as image
advertising.
product advertising - CORRECT ANSWER - Any advertising used to promote a specific
product or service.
publicity - CORRECT ANSWER - Any form of nonpaid communication about a person,
place, thing, or cause.
Another marketing mix model: The four C's - CORRECT ANSWER - Customer: The
insurer analyzes who its customers are, what their needs are, and what products it can provide to
meet those needs.
Cost: The insurer examines the value of its product for customers and the appropriate price to
ask, given the alternative products available from competitors.
Convenience: The insurer ensures that customers can learn about and purchase its products in the
ways that best meet their needs and preferences.
