Marketing Strategies in the Uk Car Insurance Market

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Marketing
strategies
in
the
 UK
car
insurance
market
 Marketing
of
Financial
Services


 
 31/06/2011
 
 
 
 
 
 Anne‐Sophie
de
Zuttere‐

 George
Koussis‐070007618
 Kyriakos
Tyllis‐100039290
 Neophytos
Stylianides‐100059219
 




 


1.0
Introduction


 Due
 to
the
high
level
of
regulation
that
 exists
in
the
 insurance
 industry
differentiation
is
 limited
as
 products
 and
 services
 need
 to
 be
 compliant.
 In
 regards
 to
 car
 insurance,
 where
 competition
 is
 intense,
insurance
premiums
and
policies
are
similar.
 Marketing
 of
 insurance
 products
 should
 be
 carefully
 designed
 so
 that
 the
 main
 message
 about
 various
insurance
services
would
be
easily
understandable
to
the
potential
customer,
appealing
with
 interest
and
trust
but
at
the
same
time
not
being
annoying.1
Due
to
low
customer
loyalty
that
exists
 in
 the
 sector,
 any
 marketing
 communications
 tend
 to
raise
 consumer’s
 awareness
 not
 only
 on
 the
 advertised
product,
but
on
competitive
products
as
 well.
 As
the
product
 itself
is
 intangible,
 it
lacks
 overall
understanding
by
the
general
public.
Consequently,
the
customer’s
decision
making
process
 is
 of
 high
 importance.
 The
 AIDA
 model
 is
 therefore
 used
 to
 illustrate
 the
 four
 stages
 (Awareness,
 Interest,
 Desire
 and
 Action),
 that
 marketing
 communications
 should
 move
 through
 a
 potential
 customer.2

 Furthermore
 there
 are
 two
 types
 of
 marketing,
 known
 as
 tactical
 marketing
 (short‐term)
 and
 strategic
 marketing
 (long‐term).
 The
 former
 focuses
 mainly
 on
 awareness,
 price
 and
 promotional
 activity,
thus
creating
brand
awareness
and
increase
in
sales,
whereas
the
latter
focuses
on
changing
 attitudes/feelings
 and
 establish
 perceptions
 of
 quality
 and
 brand,
 resulting
 in
 adding
 value
 to
 the
 company.3

 As
insurance
market
develops
and
competition
becomes
fierce,
marketing
of
insurance
products
and
 services
 has
 changed
 creating
 its
 own
 rules,
 targets
...
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