Unit-4 MIP New
Unit-4 MIP New
Unit-4 MIP New
E-marketing:
E-marketing is an advertising discipline that includes all marketing activities conducted by a
business online using an electronic device or the internet. Other names for this type of
marketing include internet marketing, online marketing, digital marketing or web marketing.
Within this framework, a business uses modern media and technologies to attract new
customers, keep current customers and build a brand identity. There are many online tools a
business can use for e-marketing based on your business goals, products, capacity and target
market.
Why is e-marketing important?
It's important to have an effective e-marketing plan in place for your business to keep up with
growth and changes in your customers' technology use. Here are some other reasons e-
marketing is so important:
1. Online customers: People search the internet daily to find a variety of information about
businesses, products and services. E-marketing is valuable as it allows you to reach and
target those people who are already using electronic devices and the internet to interact with
companies.
2. Alternative communication channels: E-marketing helps you communicate better with
your target audience. Reaching customers through digital marketing channels makes finding
your contact information simple. Browsers can then call, chat, message or email your
business with questions right from their devices. When you reply, you start two-way
communication, which builds relationships and helps your audience see your company as a
valuable source of information. This may help non-customers become clients.
3. Personalized marketing and customized experiences: People who find your business
online may contact your company for different reasons. E-marketing enables you to
personalize your advertising strategies and create customized experiences that target your
audience's best interests. Personalized e-marketing helps you deliver a better experience for
new leads, which can convert them into loyal customers.
3. Quality traffic: When used effectively, e-marketing can help you reach the right leads at
the right time and drive them to your website or online store. You can get very precise with
Sales Promotion: Sales promotion refers to the activities which supplement and co-
ordinate personal selling and advertising to attract customers to buy a product. Sales
promotion methods include displays, demonstrations, expositions, exhibitions and other non-
recurrent selling efforts which aim at impelling spot buying action by prospective customers.
Consumers are attracted by displays, packaging and publicity.
Objectives of Sales promotion activities
1. Providing information: The producer generally provides the information regarding
the quality, uses, different uses of the products and the price etc to the consumers
while introducing the product.
2. Increase in sales: The main purpose of all promotional activities is to increase the
sales of the products of the company. Promotional activities increase the sales by
changing the elasticity of demand of the product through various techniques, i.e., by
distributing samples, free gifts, discounts etc.
3. Reducing seasonal decline: In slack season, the promotional activities help in
maintaining the sales of the product. Customers and middlemen are offered attractive
discounts and free gifts along with the products to induce them to purchase their
products.
4. To keep memory alive: One of the objectives of the sales promotion is to keep the
memory of the product alive in the minds of the present customers.
5. To induce middlemen to purchase more: The middlemen-wholesalers retailers are
induced to purchase mere stock by offering more facilities such as credit facilities,
higher trade and cash discount and free gifts etc.
Promotion: Promotion is one of the four variables in the marketing mix. It refers to an
activity, such as a sale or advertising campaign, designed to increase visibility or sales of a
product. Basically, it is communicating information between producer/seller and buyer or
prospective buyer to change attitude and behaviour of consumers. The promotion has become
necessary today as selling has become more complex today because product are more
technical and customers are more sophisticated and the competition has become more
intense. These all valuables are make it necessary for the product producer or seller to make
proper flow of communication to the buyers or prospective buyers about the characteristics
of his products.
Nature of Promotion
1. Customers are informed about the product or services of the company, either at the
time of information of a new product into the market or when any change is made in
the existing product.
2. Customers are reminded of the products and services of the company.
3. Customers are persuaded to purchase the products and services of the company.
4. Promotion includes, advertising, personal selling and other sales promotion.
5. Promotion activities are performed by the manufacturer. It is the responsibility of the
producer to get information about the consumers and prospective consumers so that
the necessary product may be served to meet their demands.
Sponsor: Sponsor is a person, firm, organisation etc., that finances to buys the time to
broadcast a radio or television program so as to advertise a product.
Corporate Sponsorship: A corporate sponsorship is a form of marketing in which a
corporation pays for all of some of the costs associated with a project or program in
exchange for recognition. Corporations may have their logos and brand names displayed
alongside of the organisation undertaking the project or program, with specific mention that
the corporation has provided funding.
Sponsorship of Insurance Industry
i. The Times Group
ii. Fiinovation
iii. Union Bank of India
iv. State Bank of India
v. Ravin Group
vi. Life Insurance Corporation of India (LIC)
1. Direct channels:
These channels make direct contact between insurers and customers. In the direct
channel total control over how the product is marketed and sold is in the hands of
the insurer.
2. Indirect channels:
Indirect channels are those in which there is no direct contact between insurers and
customers. It includes insurance brokers, reinsurance brokers, financial
organizations, independent financial advisers, managing general agents, retail
organizations, affinity groups, peer-to-peer, broker networks, and aggregators.
In today’s world, Insurance companies have a lot of delivery methods for their products
and services. Digital marketing is substantially on the rise but along with this, we can’t
undermine the efforts of agents or brokers in insurance marketing. A variety of
distribution channels are currently used in the marketplace, and some insurers utilize a
combination of distribution channels. The following are some distribution channels of
insurance products:
• Bank-led channel
The bank-led distribution channel is also known as ‘Bancassurance’. In this
channel, banks and insurance carriers join together to sell insurance products to
consumers. The passage of the Financial Modernization Act of 1999, was predicted
for the U.S. market which ensured the growth of the bank-led channel in the U.S.
The channel utilizes the strengths of both the insurance carriers and banks to not
just distribute insurance policies but also to increase customer satisfaction and
maximize their own profits by minimizing the costs. Banks with their expanded
reach in the financial services market were the perfect vehicle to assist the
Direct response marketing may be defined as the use of mass media advertising to
generate inquiries directly to insurers. It does not involve the sale of insurance
through local agents. In direct response marketing, employees of the insurer deal
with applicants and customers through telephone, by personal meeting or more
frequently via the Internet. Direct selling continues to be the dominant channel of
distribution for insurance companies.
The Internet is likely to be the latest and most important of the new forms of
insurance distribution channel. It is already apparent that customers are using new
Internet technology in almost all business fields. Web technology supports multiple
marketing channels, including agents, sales of insurance products, and call centers.
However, insurers have been slow to get to this distribution channel.
It means selling insurance products by dealing directly with consumers rather than
through intermediaries. Direct mail campaigns deliver better overall responses than
digital channels. In this marketing channel, there is no need to share profit margins
and the insurer has complete control over the sales process.
There are several issues and concerns related to distributing financial products in
rural areas due to which financial service providers have been hesitant towards providing
financial services. These issues are examined below:
2. Scale of investment: The funds available for investments among rural households
are observed to be lower than the urban household due to lower incomes.
According to a survey conducted by NCAER and MAX New York Life in 2005,
the average income levels of urban households in India are 85% higher than that of
rural household. Further, rural households could avoid huge investments in risky
financial products since income irregularities.
3. Customers scattered over wide areas: The investors in the rural areas are
scattered over a wide geographic area thus creating accessibility problems for the
financial service providers/vendors. The providers would have to incur huge costs
on setting the required infrastructure for providing financial products among large
number of dispersed rural households. Also, the rural investors may not prefer
travelling long distances to avail the financial services due to lack of accessibility,
awareness, willingness etc.
Branch offices, one of the direct channels of insurance marketing, have also continued to
be a key element in the distribution systems of both life and non-life insurance
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