There are 7 Ps of services marketing; this is beyond the traditional concept of marketing mix which used to have 4 Ps of marketing. Let us have a brief look into the 7 Ps of marketing mix-related services marketing.
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical Evidence
Product
Motor insurance policy is an intangible, heterogeneous and perishable product. The product can be customized as per the requirement of the customer. One customer may require a small sum insured and another customer may require a larger sum insured. Even within the same product, there may be differentiation. In motor insurance one of the common aspects is that almost all the states have a minimum mandatory insurance coverage linked to motor insurance and this coverage is termed and mandatory third-party insurance. Under this type of coverage, the mandatory cover wordings are prescribed by the regulator. The insurers have an option to give any add-on covers. However, the insurer can get the customers based on the reputation, services, and rates.
Pricing
Pricing in simple terms is determining the cost of the services offered, in motor insurance, it is the determination of the premium of the product. Cheap auto insurance with no deposit or with low down payment will always be options that many clients will want to be eligible for. The actuary will build the basic premium and various factors are added to it like operating costs, marketing costs, reserves, commission offered to the intermediaries, and reinsurance costs, etc.
Then the rates so arrived are again subject to modification depending upon the quality of service being offered by the insurance company, the insured past claims experience, and the type of the client. However, insurance price plays an important role in the sale and purchase of the product.
Place
The term place in marketing refers to the distribution of the product. The motor insurance product can be sold directly by the insurance company through its employed salesman and this type of distribution is known as direct selling. Whereas they can also avail the services of Brokers and Agents to sell their products, such a mode of selling is known as indirect selling.
In direct selling, the insurers do not pay any commission to any outside agencies. However, in the indirect channel, they have to pay the commission to the outside agencies, commonly known as intermediaries. Some marketers of motor insurance follow a mixed method they have their own sales team and they also rely on the business through the broker and the insurance agents.
In motor insurance, by virtue of agents’ presence in the right location, they are able to get the right business at the right place. Nowadays we find that the opportunities provided by the internet to the marketers are immense, the motor insurers are also able to exploit this opportunity by selling some of their restricted policies through the internet (online marketing).
Promotion
Promotion is communication with the existing and potential customers about the offering or the brand of the organization. The promotional activities may include advertisements, direct marketing, point of sale (POS) banners, sales promotion and even sponsoring events for the benefit of society. The purpose of promotion is to persuade the customer to be aware of the brand and the offerings of the company with the ultimate aim to sell the product or services.
People
In service marketing, the people of an organization play an important role in the sale of products. Especially marketing no down payment car insurance, needs people with special skills to market the product. A person with empathy will be a better salesperson than a person who is lacking empathy. The role of the salesman or the sales manager who is interfacing with the customer is important. The people will buy from the person whom they trust and if the salesperson is not trustworthy then the chances of his clinching the sales are less.
There has to be a trustworthy relationship not only in the explanation of the product but also in the settlement of the claims. The trustworthiness of the salesperson in the relationship will help in continuing the relationship. The attitude of the people who deal with clients is very important, their treatment of the customer, their attention to clients’ concerns, their handling of the documentation, and their handling of the claims are all of the concern from the point of view of the customer.
The insurance companies should integrate their services which are behind the salesperson so that the person interfacing with the customer is able to deliver impeccable service. In the insurance industry, as per the regulations a person selling the motor insurance policies needs to have certain minimum technical competency, which is acquired by passing an examination made mandatory by the local regulator.
Process
Like any service industry, motor insurance is also a strong service-oriented industry dependent on the delivery of its service. The process of delivery is very important in insurance as the person approaches the insurance company in times of distress. The claims handling process has to be streamlined with the proper checks and controls. The responsibilities and accountabilities should be properly fixed. The times for processing of the approvals, settlement of claims, address of complaints should be fixed and it should be made sure that they are strictly adhered to.
The motor insurance companies should provide a 24 hours helpline to the customers with the purpose of helping the processing of the claims, towing of the vehicle, and addressing their queries related to the insurance and also helps them in addressing the issues related to coverages and other legal issues. The insurance company can hire the services of a third-party provider, who can provide a dedicated 24-hour helpline.
So, it is important to make a thorough research of multiple insurance companies online in order to select the most suitable for you. Rodney D Young is one of the reputable ones. The service they provide can make a difference for you. Comparing quotes online is the best way to find the coverage you need at the company you deserve.
Physical Evidence
The physical evidence is the tangible evidence of the insurance company selling motor insurance. It can be the location of the office; the location may be in the prestigious building, which gives a good impression to the customer. It may be the designing of the office both interior and exterior. A good design will give a better image of the company. The other pieces of evidence may be the dressing of the employees of the insurance company, their brochures, business cards, proposal forms, receipts and policy documentation, etc.
