Marketing Strategies, Organisation and Performance Control in Insurance

Abstract

Every insurer must recognise that its depends partly on competitive environment, partly on its allocation of marketing resources. This posture should be determined in light of insurance firm's strengths, limitations, and corporate objectives. This paper presents eight different marketing strategies for insurers, suggesting that selection of an appropriate strategy should be based on internal conditions and external forces facing firm. The selected strategy should then be implemented by a careful marketing plan. If an insurance marketing strategy is to be effective, due attention should be given to marketing organisational structure and its departmental responsibilities. Finally study suggests several alternative control systems that might enable insurers to evaluate performance of selected marketing strategy. Under existing dynamic conditions strategic objectives should be under continuous appraisal in order that an insurer might retain initiative in its market. The literal meaning of word strategy is the art of general, deriving from ancient Greek word for General, strategos'. Prior to Napoleon's times word had a military connotation implying art and science of directing military forces to defeat an enemy or to mitigate results of defeat. Although deriving from an ancient heritage, term strategy has found its way into management literature in past decade or so. To insurance people term strategy has come to mean type of decision made by top insurance managers concerning relationship between insurance organisation and its environment. In other words, strategy describes those critical boundary-spanning decisions that define framework and direction for overall marketing organisation management. An insurance firm strategy is a plan for action that determines how an insurer can best achieve its goals and objectives in light of existing pressures exerted by competition, on one hand, and its limited resources Arthur Meidan is a Senior Lecturer in Marketing Management (rank parallel to that of Associate Professor in United States) and Director of MBA Programme at Sheffield University, England. He earned his undergradutae degree and M.B.A. from Hebrew University in Israel and his Ph.D. from Bradford University Management Centre in England. Dr. Meidan has spent over fifteen years in management and commerce and has consulted and lectured widely on marketing of services with special reference to insurance marketing. He is an Associate Editor of theJoiurnal of Enterprise Manatgement published by Pergamon Press and a member of Editorial Board of Quarterly Review of Marketing published by British Institute of Marketing.