Promotion Mix of Insurance sector

Advertising:

It is a paid form of non-personal communication. It is used to create awareness and transmit information in order to gain a response from the target market. Forms of advertising are as follows:

• News Papers and Magazines:

LIC give ads in the news papers and magazines round the year to continue its brand image and also when new products are introduced. Normally its ads are published in Times of India.

• Electronic media:

Insurance companies also advertise its services in the Electronic media like:

• Internet (Websites):

Companies like LIC (www.licindia.com), ICICI (www.iciciprudential.com) all have websites from which people can get the information about their products, prices, various schemes, and lots of other information. People can also purchase the product through this website.

• Television:

Companies like LIC, Met Life India, advertise on television to make people aware of their products and services.

• Radio:

ICICI Prudential advertises on 92.5 red Fm.

• Hoardings:

LIC put its hoardings where there is a mass flow of people, especially outside the railway station or at the backside of the bus.

When Met Life was introduced it has put his hoardings on the side of the train, to target huge number of people.

• Brochures:

Companies provide brochures to the customers so that they can have a look on various schemes and their prices.

Public relations:

Public relations are helpful for the companies to build their brand image, to maintain good relationship with customers, to make the people aware of its recent happenings, etc. Mediums of Public relations are:

• Press releases:

This helps the company to convey its message to its customers and other people.

• Seminars:

These are held to provide information about the new product launched, position of the company in the market, etc.

• Sales Promotion:

            Gifts:

LIC provides diaries, pens, booklets, etc to its customers.

• Sponsoring Events:

Eg: Max New York Life Insurance Company has sponsored the recent India-Zimbabwe-New Zealand tri series.

• Personal selling:  

• Agents:

It is the most widely used method of promotion by all insurance companies. They recruit, train and motivate the insurance agents to convince the customers to buy insurance policies of that particular company. The agent also collects the monthly premium and settles the claims of the customers.

• Word of Mouth:

Word of Mouth promotion plays the role of hidden sales force. The word of mouth promotion is normally carried out by customers, agents and employees. It can be positive or negative depending upon the service or experience they receive.

• Customers:

It is important for the organization to provide customers with quality service so that he is satisfied and spread the good word of mouth. On the contrary if the customer is not satisfied with the service or experience he spreads bad word of mouth.