LOMA 291 Module 3 Questions and Answers
Graded A+
personal selling 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 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 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 Any advertising used to promote a specific product or service.
,publicity Any form of nonpaid communication about a person, place, thing, or cause.
Another marketing mix model: The four C's 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.
Communication: The insurer communicates with its customers over multiple channels to create
an ongoing relationship that will promote customer loyalty.
Marketing Mix Objectives - Fit together so that each one supports the others: The type of
product a company offers determines the type of distribution methods the insurer uses. The type
of distribution an insurer chooses for a product, in turn, helps determine the product's price.
- Align with the company's overall strategic goals: If a company's strategic goal is to be an
industry leader in sales of term life insurance, the marketing mix should include specific
,strategies for customer, cost, convenience, and communication that will allow the company to
sell term life insurance policies to customers more successfully than its competitors can.
- support the company's positioning strategy: Through positioning, an insurer attempts to
distinguish itself from other insurers in the marketplace by building a company image or product
image that contrasts with the images competitors offer. An insurer may position itself on the
basis of company or product attributes, types of products offered, price and quality of products,
markets serviced, or distribution characteristics.
- Support the company's branding strategy: Companies develop branding strategies to distinguish
themselves among competitors. A company's brand—such as its name, slogan, and visual
elements like a logo or color scheme—can draw customers to that company. To develop brand
loyalty among customers, insurers need to create positive reactions to the brand by delivering
positive customer experiences.
positioning The process by which a company establishes and maintains in customers'
minds a distinct place, or position, for itself and its products.
branding A company's efforts to create public recognition and positive reactions toward its
brand.
brand A collection of elements that the company uses to identify itself, a product line, or a
product and to differentiate it from other companies or products.
, Insurers often substitute the term "financial design" for the marketing mix variable commonly
known as
A. Product
B. Price
C. Place
D. Promotion Because insurance and annuity products have a number of financial features
rather than a single, identifiable price, insurers typically use the term "financial design" rather
than "price."
"Distribution" is a term commonly used in insurance for the marketing mix variable known as
A. Product
B. Price
C. Place
D. Promotion C. - "Distribution " is used for "place" to describe all of the activities
involved in making products available for customers to buy.
A form of nonpaid communication about a person, place, thing, or cause.
A. Advertising
Graded A+
personal selling 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 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 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 Any advertising used to promote a specific product or service.
,publicity Any form of nonpaid communication about a person, place, thing, or cause.
Another marketing mix model: The four C's 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.
Communication: The insurer communicates with its customers over multiple channels to create
an ongoing relationship that will promote customer loyalty.
Marketing Mix Objectives - Fit together so that each one supports the others: The type of
product a company offers determines the type of distribution methods the insurer uses. The type
of distribution an insurer chooses for a product, in turn, helps determine the product's price.
- Align with the company's overall strategic goals: If a company's strategic goal is to be an
industry leader in sales of term life insurance, the marketing mix should include specific
,strategies for customer, cost, convenience, and communication that will allow the company to
sell term life insurance policies to customers more successfully than its competitors can.
- support the company's positioning strategy: Through positioning, an insurer attempts to
distinguish itself from other insurers in the marketplace by building a company image or product
image that contrasts with the images competitors offer. An insurer may position itself on the
basis of company or product attributes, types of products offered, price and quality of products,
markets serviced, or distribution characteristics.
- Support the company's branding strategy: Companies develop branding strategies to distinguish
themselves among competitors. A company's brand—such as its name, slogan, and visual
elements like a logo or color scheme—can draw customers to that company. To develop brand
loyalty among customers, insurers need to create positive reactions to the brand by delivering
positive customer experiences.
positioning The process by which a company establishes and maintains in customers'
minds a distinct place, or position, for itself and its products.
branding A company's efforts to create public recognition and positive reactions toward its
brand.
brand A collection of elements that the company uses to identify itself, a product line, or a
product and to differentiate it from other companies or products.
, Insurers often substitute the term "financial design" for the marketing mix variable commonly
known as
A. Product
B. Price
C. Place
D. Promotion Because insurance and annuity products have a number of financial features
rather than a single, identifiable price, insurers typically use the term "financial design" rather
than "price."
"Distribution" is a term commonly used in insurance for the marketing mix variable known as
A. Product
B. Price
C. Place
D. Promotion C. - "Distribution " is used for "place" to describe all of the activities
involved in making products available for customers to buy.
A form of nonpaid communication about a person, place, thing, or cause.
A. Advertising
