CAIB 3 Chapter 6 Study Questions with
Answers
Identifying the three meanings given to marketing in the insurance world. - ✔✔1. Placing of
business by an insurance brokerage with various insurers.
2. Insurance companies promoting their products to brokerages
3. Insurance companies promoting their products to consumers.
Marketing may be defined as a system of business activities which are designed to plan,
promote, price and distribute want-satisfying products, services and ideas to target markets in
order to achieve the objectives of both the consumer and the company. Indentify and explain
the four important issues or aspects of marketing that is contained in this definition. - ✔✔1.
Value - Clients must perceive value in what they are receiving from the company. Unless clients
perceive that they are receiving good value, they will take their business elsewhere.
2. Objectives of the Consumer and the Organization - Clients must be satisfied that a product or
service meets their needs and the company must achieve its objectives in order for a
relationship to be built.
3. Products, service and ideas - Marketing is no longer viewed simply as the sale of tangible
products. There is now a much greater focus on the marketing of services. Managers in most
industries realize that they have to put an attractive offering in front of their clients if they are
going to get their business.
4. System of Business Activities - This implies that marketing consists of a number of different
tasks that must work together in a "system"; that is, they must be coordinated. It also suggests
that a variety of different people are involved in the delivery of marketing.
Identify and briefly explain the three stages believed to compose the evolution of marketing. -
✔✔Marketing as a toolkit - The 4 P's (price, place, product, promotion). This is the view that if a
, company has a great product and if it is priced low enough, clients will come from far and wide
to buy from that company.
Marketing as Strategy - Marketers have come to the realization that client satisfaction is
influenced by actors beyond the basic marketing mix. The way clients are treated and how they
feel after doing business with a company are important determinants of client satisfaction.
Marketing as Culture - Today, in the most progressive of companies, marketing has been
elevated to the point where it is genuinely part of the corporate culture. Everyone who works
for the company and everything that the company does is focussed on the client and on
achieving client satisfaction.
It was once believed that if a company worked the elements of the marketing mix properly then
that was all that was needed to guarantee client satisfaction. Identify these four tools or the 4
P's as they are sometimes referred. - ✔✔1. Price
2. Place
3. Product
4. Promotion
This 'toolkit' view of marketing is reflected in the overeat ion that "if you build a better
mousetrap, the world will beat a path to your door. Briefly explain what is meant by this
statement. - ✔✔In other words, if a company has a great product and if it is priced low enough,
clients will come from far and wide to buy from that company.
The view of marketing has emerged since the 1960's and represents a strategic approach to the
development of marketing. This approach to marketing makes a great deal of sense, in that it is
no longer a selling emphasis that drives marketing, but rather a considered strategic approach.
Identify and briefly explain the three fundamental strategies that brokerages include in the
strategic approach. - ✔✔1. Marketing segmentation - Deciding which segments of the client
market it wants to do business with.
2. Differentiation - Doing things that will set the company apart from the competition; in other
words, giving the client a reason to deal with them, rather than with the competition.
Answers
Identifying the three meanings given to marketing in the insurance world. - ✔✔1. Placing of
business by an insurance brokerage with various insurers.
2. Insurance companies promoting their products to brokerages
3. Insurance companies promoting their products to consumers.
Marketing may be defined as a system of business activities which are designed to plan,
promote, price and distribute want-satisfying products, services and ideas to target markets in
order to achieve the objectives of both the consumer and the company. Indentify and explain
the four important issues or aspects of marketing that is contained in this definition. - ✔✔1.
Value - Clients must perceive value in what they are receiving from the company. Unless clients
perceive that they are receiving good value, they will take their business elsewhere.
2. Objectives of the Consumer and the Organization - Clients must be satisfied that a product or
service meets their needs and the company must achieve its objectives in order for a
relationship to be built.
3. Products, service and ideas - Marketing is no longer viewed simply as the sale of tangible
products. There is now a much greater focus on the marketing of services. Managers in most
industries realize that they have to put an attractive offering in front of their clients if they are
going to get their business.
4. System of Business Activities - This implies that marketing consists of a number of different
tasks that must work together in a "system"; that is, they must be coordinated. It also suggests
that a variety of different people are involved in the delivery of marketing.
Identify and briefly explain the three stages believed to compose the evolution of marketing. -
✔✔Marketing as a toolkit - The 4 P's (price, place, product, promotion). This is the view that if a
, company has a great product and if it is priced low enough, clients will come from far and wide
to buy from that company.
Marketing as Strategy - Marketers have come to the realization that client satisfaction is
influenced by actors beyond the basic marketing mix. The way clients are treated and how they
feel after doing business with a company are important determinants of client satisfaction.
Marketing as Culture - Today, in the most progressive of companies, marketing has been
elevated to the point where it is genuinely part of the corporate culture. Everyone who works
for the company and everything that the company does is focussed on the client and on
achieving client satisfaction.
It was once believed that if a company worked the elements of the marketing mix properly then
that was all that was needed to guarantee client satisfaction. Identify these four tools or the 4
P's as they are sometimes referred. - ✔✔1. Price
2. Place
3. Product
4. Promotion
This 'toolkit' view of marketing is reflected in the overeat ion that "if you build a better
mousetrap, the world will beat a path to your door. Briefly explain what is meant by this
statement. - ✔✔In other words, if a company has a great product and if it is priced low enough,
clients will come from far and wide to buy from that company.
The view of marketing has emerged since the 1960's and represents a strategic approach to the
development of marketing. This approach to marketing makes a great deal of sense, in that it is
no longer a selling emphasis that drives marketing, but rather a considered strategic approach.
Identify and briefly explain the three fundamental strategies that brokerages include in the
strategic approach. - ✔✔1. Marketing segmentation - Deciding which segments of the client
market it wants to do business with.
2. Differentiation - Doing things that will set the company apart from the competition; in other
words, giving the client a reason to deal with them, rather than with the competition.
