Marketing Strategy Evaluation by Integrating Dynamic Systems Modeling and Network Data Envelopment Analysis

Abstract

Nowadays, the service industries play an essential role in the economic development of countries, and among the various fields of insurance, life insurance is of particular importance because it covers its cover directly to humans. Increased competition in the insurance industry has led managers to seek marketing strategies that, in addition to increasing insurance sales, reduce costs and gain competitive advantage. Therefore, the purpose of this study was to develop appropriate marketing strategies in the form of scenario-based strategic planning in the life insurance market of Mellat Insurance Company. For this purpose, system dynamics and network data envelopment analysis tools have been used. In order to formulate marketing strategies, the causal-loop diagram and then the flow-stock diagram were simulated for scenario-based strategic planning. Then the operation was performed for different scenarios and the simulated results were put as input to the data envelopment analysis model and based on the obtained results, the best and most efficient scenario was selected. It should be noted that in this study, different scenarios play the role of marketing models and strategies, and their performance has been analyzed.