(a) the steps to choose the target market There are three steps to choose the target market:
First, market segmentation. According to the different needs of consumers for insurance and marketing mix, the market is divided into different consumer groups.
Second, choose the target market. Formulate standards for measuring market segments, and select one or several market segments to enter.
Third, determine the marketing insurance and marketing mix strategy. That is to determine the insurance types and marketing mix strategies provided by insurance companies to each target market to ensure their competitive position in the market.
(II) Basis for selecting the target market 1. The scale and potential of the target market
2. Attractiveness of the target market
(1) Influence of competitors in the same industry
(2) the influence of potential new competitors
(3) the influence of substitute products
(4) The influence of buyers' bargaining power.
(5) The influence of suppliers' bargaining power.
3. Objectives and resources of insurance companies
(3) Selection of target market strategy 1. Indifferent market strategy
Also known as the overall market strategy. This strategy is that insurance companies take the whole market as the target market, only pay attention to the identity of insurance consumers' insurance needs, regardless of their differences in insurance needs, and sell the same insurance to all insurance consumers with the same insurance terms, the same standard insurance rates and the same marketing methods.
Indifferent market strategy is suitable for the promotion of insurance products with small differences, wide demand range and strong applicability. The advantages of this strategy are: reducing the cost of insurance design, printing, publicity and advertising, and reducing the cost; It can form scale operation and make the risk loss rate closer to the average loss rate. The disadvantages are: ignoring the differences of insurance consumers, it is difficult to meet the diversification of insurance demand and not meet the needs of market competition.
2. Differentiated market strategy
Differentiated market strategy refers to the strategy that insurance companies design different types of insurance and marketing schemes for each target market after selecting the target market to meet the insurance needs of different insurance consumers.
The advantages of differentiated marketing strategy are: making insurance marketing strategy more targeted, which is conducive to insurance companies to continuously develop new insurance products and use new insurance marketing strategies; Suitable for new insurance companies or smaller insurance companies. Disadvantages are: increasing marketing costs, increasing insurance design and management accounting costs.
3. Centralized market strategy
Also known as intensive market strategy. Insurance companies choose one or several market segments as the target market, formulate a set of marketing plans, and concentrate on striving for a larger share in these market segments, rather than a smaller share in the whole market.
The advantages of centralized market strategy are: it can concentrate on occupying the market quickly, improve the popularity and market share of insurance products, and enable insurance companies to concentrate their limited energy to obtain higher returns; Be able to deeply understand specific market segments and implement professional management, which is suitable for small enterprises with limited resources and weak strength. Disadvantages are: if the target market is concentrated, there are few types of insurance, and the business risks are high, once the insurance demand in the market changes, or strong competitors intervene, insurance companies will be in trouble. (1) Insurance policy 1. Insurance development strategy
The procedures for developing new types of insurance include: concept formation, concept screening, market analysis, trial marketing process and commercialization.
2. Insurance portfolio strategy
(1) strategy for expanding insurance portfolio
There are three ways to expand the insurance portfolio strategy: one is to increase the breadth of the insurance portfolio, that is, to add new insurance series; The second is to deepen the depth of insurance portfolio, that is, to increase the number of insurance series and make insurance serialized and integrated; The third is the breadth and depth of insurance.
(2) Reduce the combination of insurance.
(3) Insurance portfolio strategy with little correlation
3. Life cycle strategy of insurance products
(1) Investment Period Marketing Strategy
The investment period of insurance refers to the initial stage when insurance products are put into the insurance market. Its characteristics are: first, due to the lack of understanding of underwriting risks, the accumulated risk information is extremely limited, and the insurance premium rate is not reasonable; Second, because the number of insured objects is extremely limited, the degree of risk dispersion is low; Third, due to low premium income and high input cost, insurance companies have little profit or even losses.
Therefore, the marketing methods commonly used by insurance companies are:
① Fast predation strategy;
② Slow predation strategy;
③ Rapid infiltration strategy;
④ Slow infiltration strategy.
(2) Marketing strategy in growth period
The growth period of insurance refers to the stage of rapid growth of insurance sales, which shows that insurance companies have mastered the law of risks, insurance clauses are more perfect, insurance rates are more reasonable, insurance demand is increasing, a large number of risks are transferred, and underwriting costs are declining.
Therefore, insurance companies should adopt marketing strategies, including constantly improving the connotation of insurance products, expanding marketing channels, adjusting insurance rates in a timely manner, and ensuring after-sales service quality, so as to maintain the long-term growth rate of this type of insurance in the insurance market as much as possible.
(3) Marketing strategy in mature period
The maturity of insurance refers to the highest stage of insurance sales, which is characterized by the peak of insurance profit, the decline of sales growth rate, the saturation of the market, the decrease of potential consumers and the emergence of more perfect alternative insurance.
Therefore, the marketing strategy that insurance companies should adopt is:
(1) Develop a new insurance market
② Improve insurance coverage.
③ Competing for customers.
(4) Marketing strategy in recession.
The decline period of insurance refers to the stage when insurance has not adapted to the needs of the insurance market and the sales volume has shrunk dramatically. This stage is characterized by a large insurance supply capacity and a rapid decline in sales, a decline in the profits of insurance companies and a shift in the demand of insurance consumers.
Therefore, insurance companies should adopt prudent marketing strategies to limit the promotion of this type of insurance in a planned and step-by-step manner. In addition, it is necessary to develop new types of insurance in a predictable and planned way to attract consumers who seek alternative types of insurance again and shorten the decline period of insurance as much as possible.
(B) rate strategy
1. Low price strategy
It refers to the strategy of determining the insurance premium rate at a price lower than the original price level. The purpose of implementing this pricing strategy is to quickly occupy the insurance market or open the market for new types of insurance and attract more insurance funds.
However, insurance companies should pay attention to strictly controlling the scope of low-price strategy.
2. High price strategy
It refers to the strategy of determining the insurance premium rate at a level higher than the original price level. Insurance companies can get high profits by implementing high-priced strategy, which is conducive to improving their own economic benefits. At the same time, they can also use the high price strategy to refuse to underwrite high-risk projects, which is conducive to the stability of their own operations.
However, insurance companies should be cautious when using high-priced strategies.
3. Preferential price strategy
It refers to the strategy that the insurance company gives the insured a discount rate according to the marketing needs on the basis of the existing price.
(1) unified guarantee discount
(2) Renewing the offer
(3) Wholesale premium discount
(4) Safety precautions
(5) Reduction or exemption of insurance premiums
4. Differential pricing strategy
Regional differential price means that insurance companies should adopt different insurance rates for the same subject matter in different regions.
The differential price of insurance refers to the difference in rate standards and calculation methods of various types of insurance.
The main methods of competitive strategy differences include: first, adjusting the rate with competitors at the same time to ensure the company's share in the insurance market; Second, when competitors adjust their rates, keep the original rates unchanged to maintain the reputation and image of the enterprise. Third, adopt a follow-up strategy. Don't rush to adjust the company's rate when you know that the competitor has adjusted the rate. When the competitor's rate has a great influence on the market sales, then adjust the relevant rate with the competitor.
(3) Promotion strategy 1. Advertising promotion strategy
The main functions of advertising are: first, to establish the corporate image of the company; The second is to introduce new insurance services or marketing strategies; Third, publicize the social evaluation of insurance companies; Fourth, promote insurance consumers to accept insurance marketing methods and so on.
2. Public relations promotion strategy
(1) news promotion
(2) Event creation
(3) Public welfare activities
(4) Books, periodicals and audio-visual materials
(5) Telephone public relations
3. Personnel promotion strategy (1) competitive position
1. Strategies of market leaders
Market leader refers to the insurance enterprise that occupies the highest market share in the insurance market. Market leaders usually adopt the following strategies: ① expanding the total market, that is, expanding the demand of the entire insurance market; ② Take effective defensive measures and offensive strategies in time to protect the existing market share; (3) Expand market share under the condition of constant market size.
2. Market Challenger Strategy
A market challenger refers to an insurance company that ranks second or third in the industry. The purpose of market challenger strategy is to plunder the leader position and annex the weak market. The most commonly used strategies of market challengers are frontal attack, flank attack, containment attack and guerrilla warfare.
Section 2 Insurance Marketing Strategy
3. Market follower strategy
Market followers refer to insurance companies that want to maintain their original market share without disturbing the current market situation.
There are three follow-up strategies, namely, follow-up strategy, distance follow-up strategy and selective follow-up strategy.
4. Market scavenger strategy
Pickups refer to some small insurance companies that specialize in businesses that big insurance companies ignore or despise.
The key factor in becoming a scavenger is specialization.
(B) the relationship between competitive position and competitive strategy
Competitive strategy and competitive position are mutually causal and influence each other.
When an insurance company decides its competitive strategy according to its own competitive position, it should not only consider its own business objectives, strength and market opportunities, but also consider the following factors:
(1) Strategies that competitors cannot imitate;
(2) Strategies that competitors are unwilling to adopt;
(3) the strategy that competitors must follow;
(4) Strategies for both sides to benefit from the competition.