Marketing in Banking and Insurance

Risk is defined by the probability of injury, harm, loss or danger. We all take risks every day, and don’t even think about implications.

business of insurance. But the lack of uniformity, loop holes, blind spots and deficiencies within

Speculative risk exists when there is uncertainty about an event that can produce either a profit or a loss.

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.

Of all the companies in my area there are many that don’t seem to implement the marketing concept to its fullest potential. Among these companies are Chase Bank, Big Lots, Pulse Yoga and Fitness Studio, and Tecknowlogic. On the other hand are the companies that use the marketing concept to the fullest extent. These companies include Huntington Bank, Meijer’s, The YMCA, and eGreen Computers, Inc. When looking at Huntington Bank everything they market and everything they set out to do is to satisfy their customers’ needs. Their marketing is everywhere from pens at the store, radio ads, television ads, billboards, etc. They make their banking and marketing out to be all about the customer and coordinate it between corporate, branches, employees, and take it as far as coordinating between bank accounts. Huntington is good at implementing the 4 C’s of customer value, cost, convenience, and communication. When looking at the marketing for Chase bank there is little marketing and it isn’t always geared to the customer. They lack in promoting their banking to customers and this is essential to maintain those customers. Chase is unable to show how valuable their company is in their marketing and should take measures to coordinate their efforts accordingly.

Nowadays, having insurance is a ‘nice thing’ to carry in case of emergency. In the U.S, most people should have at least one type of insurance. As for auto insurance, the law requires drivers to carry insurance when driving. Because of this need, the constant demand for having insurance drives many firms competing in this saturated market. In this analysis, the focus attempts to show GEICO Insurance promotional strategy in communicating its products and services to the market and identifies the effective ways in growing the brand-awareness.

Many parents ask themselves a question whether there is a difference in raising their children in urban or rural areas. And therefore, what are the advantages and disadvantages of rural and urban environment. The life quality is one of the major factors to consider while comparing rural and urban living. That is why the main task to be made when talking about advantages and disadvantages of urban versus rural life is evaluating such important factors as health and employment possibilities, presents and quality of educational institutions, coast of living, diversity, choice issues, etc. Although, rural environment offer a wide range of benefits, the urban environment has much more to offer children and their caregivers.

Defined by Coopers textbook, risk is the exposure to the consequences of uncertainty and has two elements: the likelihood of something happening that has an impact on the project objectives, and the positive or negative consequences of something impacting the project objectives (Cooper, Grey, Raymond, & Walker, 2005)

First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.

1. Personal Promotion: The bank marketer gets opportunity to tangibilise the product through personal selling; persuasion is more effective with direct contact. It helps in creating impulse buying.

Urban areas are the human settlement with high population and well-established infrastructure. People who live in urban areas are mostly involved in commerce and trading activities. However, urban areas are not confined to cities only, but also includes the suburbs areas. On the other side, rural areas are region situated on the outskirts. There are open space and natural vegetation. Residents practice agriculture and animal husbandry and use it as a source of income. Many people and families raise questions on the benefits that one acquires by choosing to live in either urban or rural settlement (Lucas 31). Quality of life is essential when comparing both urban and rural life. Even though both locations are best to live, it is crucial to evaluate the similarity and differences between two places. Various factors such as the diversity, employment opportunities, health, and capacity to make broad choices influence one decision while comparing urban and rural life. Even though life in both urban and rural areas offers great benefits, there are some drawbacks in both lives.

Risk can be defined as “The possibility of a (negative) event occurring”. Risk and uncertainty go hand in hand. When you are certain about something that you do then there is less or no risk involved. There is more risk when there is uncertainty about a particular outcome and you still go for it.

Insurance is a federal subject in India. It is a subject matter of solicitation. The legislations that deal with insurance business in India are Insurance Act, 1938 and Insurance Regulatory & Development Authority Act (IRDA), 1999. Insurance is defined as is a form of risk management primarily used to hedge against unforeseen risks of contingent losses. Another approach to Insurance is as the equitable transfer of risks, or the possibility of occurrence of losses, from one entity to another, by the method of diversification in exchange for a premium. An Insurer is a company designing, promoting and selling insurance products and services amongst the public. An insured or policyholder is the person or entity purchasing these products and services.

Changes in tax laws, government benefit programs, and other State and Federal regulations can affect the insurance needs of clients and how agents conduct business (Abraham & Herman, 1998). Courses in psychology, sociology, and public speaking can prove useful in improving sales techniques (Abraham & Herman, 1998). The use of computers to provide instantaneous information on a wide variety of financial products has greatly improved agents’ and brokers’ efficiency and enabled them to devote more time to clients’ needs (Abraham & Herman, 1998).

Concept of risk, risk assessment, risk management and how uncertainty affects the process will be discussed.