Evaluation of Marketing Strategies of Nigerian Insurance

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An evaluation of the marketing strategies of Nigerian insurance companies.

Abstract:
The apparent unclear performance of the Nigerian insurance industry, in addition to the dynamics in the insurance business environment, spurred the present research. Using a survey research methodology to investigate the marketing strategies utilized by Nigerian insurance companies to cope with the dynamics of the business environment in order to achieve set objectives, it was found that competition and clients' behaviour towards insurance services had the highest impacts on the marketing strategies of Nigerian insurance companies. Additionally, it was found that the marketing strategies of market development, pricing based on what insurance clients can afford, and use of high-level public relations were the most emphasized strategies in the Nigerian insurance industry. These findings, along with other interesting findings, were discussed pertaining to the research problem, empirical and anecdotal evidence, and extant literature, in addition to their managerial and research implications.

Subject:
Marketing
Author:
Osuagwu, Linus
Pub Date:
07/01/2001
Publication:
Name: Academy of Marketing Studies Journal Publisher: The DreamCatchers Group, LLC Audience: Academic Format: Magazine/Journal Subject: Business, general Copyright: COPYRIGHT 2001 The DreamCatchers Group, LLC ISSN: 1095-6298 Issue:

Date: July, 2001 Source Volume: 5 Source Issue: 2
Topic:
Event Code: 200 Management dynamics Computer Subject: Company business management Product:
Product Code: 9914000 Marketing
Accession Number:
208890531
Full Text:
INTRODUCTION

To achieve set organizational goals and objectives, companies conceptualize, design, and implement various strategies. These strategies can be corporate, business, or functional. Marketing strategies constitute one of the functional strategies amenable to application by contemporary companies in order to be efficient and effective.

Marketing has been defined and conceptualized in myriads of ways, depending on the author's background, interest, and education (Osuagwu, 1999). For example, marketing can be seen as a matrix of business activities organized to plan, produce, price, promote, distribute, and megamarket goods, service, and ideas for the satisfaction of relevant customers and clients. Relatedly, Achumba and Osuagwu (1994) posit that marketing is important for the success of any organisation, whether service- or product--oriented.

Insurance is a mechanism for reducing the uncertainty of an individual/organization through the exchange or transfer of specific risks to the insurer who offers a form of economic restoration, albeit partly, to the insured for loses incurred. Meidan (1984) has argued that the insurance services sector constitutes a financial service industry that has currently been changed by aggressive strategic marketing behaviour.

Insurance business behaviour in Nigeria, historically, can be traced to the actions of British merchants in 1874. These British merchants commenced their insurance business activities as agents for insurance companies in Britain, the major area of business being marine insurance. These agents operating in Nigeria packaged and organized insurance covers for imported and exported products.

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In 1921, the Nigerian insurance industry got a prop with the establishment of the Nigerian branch office of the Royal Exchange Assurance (REA) of London. This Nigerian branch office of the REA formed the foundation of the present Royal Exchange Assurance of Nigeria (REAN), which is the oldest insurance company in...
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