Geico Insurance and How Its Marketing Mix Operates in the Insurance Industry
In this paper, we will discuss Geico Insurance and how its marketing mix operates in the insurance industry. We will describe the four elements of the marketing mix, more commonly known as the 4P’s. Next, we will describe how each one of the four elements affects the development of Geico’s marketing strategy and tactics. Last, we will describe how each element is implemented in Geico’s marketing strategy.
Geico Insurance
Geico Insurance was founded in 1936 by Leo Goodwin, Sr. and his wife, Lillian. Mr. Goodwin’s idea was to provide auto insurance directly to federal employees. Geico Insurance’s originally business model was to provide insurance directly to military personal as they were less risky and more financially stable as opposed to the general public. Today, Geico Insurance is one of the leading insurance companies in the industry. Geico insures more than 13 million vehicles and has become the 3rd largest insurance writer of auto insurance. While Geico Insurance has evolved with times to expand their insurance offerings to the general public, they have kept the originally business model of direct to consumer sales model and used these funds saved by not paying agent commissions to purchase more advertising.
The 4P’s Perreault, Jr., Cannon, & McCarthy (2011) stated, “A typical marketing mix includes some product, offered at a price, with some promotion to tell potential customers about the product and a way to reach the customer’s place†(33-34). This is the makeup of the 4P’s; product, price, promotion and place. Now let’s look at each part of the marketing mix in more detail.
The first element is product. Product is concerned with the development of a product or service for the targeted group. A product can be a service or a physical good. The most important thing for the product is that it meets or satisfies the customer’s needs. The next element in the marketing mix is place. The placement of the right product in the
Geico Insurance
Geico Insurance was founded in 1936 by Leo Goodwin, Sr. and his wife, Lillian. Mr. Goodwin’s idea was to provide auto insurance directly to federal employees. Geico Insurance’s originally business model was to provide insurance directly to military personal as they were less risky and more financially stable as opposed to the general public. Today, Geico Insurance is one of the leading insurance companies in the industry. Geico insures more than 13 million vehicles and has become the 3rd largest insurance writer of auto insurance. While Geico Insurance has evolved with times to expand their insurance offerings to the general public, they have kept the originally business model of direct to consumer sales model and used these funds saved by not paying agent commissions to purchase more advertising.
The 4P’s Perreault, Jr., Cannon, & McCarthy (2011) stated, “A typical marketing mix includes some product, offered at a price, with some promotion to tell potential customers about the product and a way to reach the customer’s place†(33-34). This is the makeup of the 4P’s; product, price, promotion and place. Now let’s look at each part of the marketing mix in more detail.
The first element is product. Product is concerned with the development of a product or service for the targeted group. A product can be a service or a physical good. The most important thing for the product is that it meets or satisfies the customer’s needs. The next element in the marketing mix is place. The placement of the right product in the
References: (Perreault, Jr., Cannon, & McCarthy, 2011) Geico. (2013). Geico History: An American Success Story. Retrieved from http://www.geico.com/about/history Perreault, Jr., W.D., Cannon, J.P., & McCarthy, E.J. (2011). Basic Marketing: A Marketing Strategy Planning Approach [University of Phoenix Custom Edition eBook]. New York, NY: McGraw-Hill. Retrieved from University of Phoenix, MKT/421 website.