Marketing Strategy Example For Insurance – A marketing strategy refers to a company’s overall game plan to reach potential consumers and convert them into customers for its products or services. A marketing strategy includes a company’s value proposition, key brand messages, target customer demographic data, and other high-level elements.
A clear marketing strategy revolves around a company’s value proposition, which tells consumers what the company stands for, how it works, and why it deserves their business.
Marketing Strategy Example For Insurance
It provides a template for marketing teams to inform their initiatives for all of the company’s products and services. For example, Walmart ( WMT ) is widely known as an “everyday low price” discount retailer whose business and marketing efforts are rooted in that idea.
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A marketing strategy is outlined in a marketing plan – a document that outlines the specific types of marketing activities a company will undertake and includes timetables for rolling out various marketing initiatives.
Marketing strategies should have a longer lifespan than individual marketing plans because they include value propositions and other key elements of a company’s brand, which are usually consistent over a long period of time. In other words, marketing strategies cover overall messages, while marketing plans outline the logistical details of specific campaigns.
For example, a marketing strategy might say that a company aims to increase authority in niche circles frequented by its customers. A marketing plan puts it into action by ordering leadership ideas on LinkedIn.
The ultimate goal of marketing strategy is to achieve and communicate a sustainable competitive advantage over competing businesses by understanding consumer needs and wants. Whether it’s print ad design, mass customization or a social media campaign, a marketing asset can be judged on how effectively it communicates a company’s core value.
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Market research can help chart the effectiveness of a particular campaign and identify untapped audiences to achieve bottom line and increase sales.
Creating a marketing strategy requires a few steps. HubSpot, the digital marketing resource, provides insight into building your strategy.
A marketing strategy helps a company direct where its advertising dollars will have the most impact. Compared to 2018 data, the correlation between organization and salesperson success is nearly four times more likely to be nearly seven times greater in 2022.
The four P’s are product, price, promotion and place. These are the key elements in marketing a product or service. The four Ps can be used when planning a new business venture, evaluating an existing offering, or trying to optimize sales with a target group. It can also be used to test an existing marketing strategy on a new target group.
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A marketing strategy describes the advertising, outreach, and public relations campaigns to be undertaken by a company, including how the company will measure the effectiveness of these initiatives. They generally follow the four P’s. The characteristics and components of a marketing plan include market research to support pricing decisions and new market entries, message designed to target specific demographics and geographic areas, and platform selection for marketing products and services – digital, radio, Internet, trade magazines, and mix. Metrics that measure the results of these platforms and marketing efforts and their reporting timelines for each campaign.
The terms “marketing plan” and “marketing strategy” are often used interchangeably because the marketing plan is developed based on the overall strategic framework. In some cases, strategy and planning can be combined into one document, especially for smaller companies that only run one or two major campaigns in a year. A plan outlines marketing activities on a monthly, quarterly or yearly basis, while a marketing strategy outlines overall value.
Authors are required to use primary sources to support their work. These include white papers, government data, original reporting and interviews with industry experts. We also refer to original research from other reputable publishers where appropriate. You can learn more about the standards we follow to create accurate, unbiased content in our Editorial Policy. Market penetration is a measure of how much customers use a product or service compared to the total expected market for that product or service. Market penetration can also be used to develop strategies used to increase market share for a particular product or service.
Market spread can be used to determine potential market size. If the overall market is large, new entrants to the industry may be incentivized to gain market share or a percentage of the total number of potential customers in the industry.
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For example, if a country has 300 million people and 65 million of them own mobile phones, the market penetration of mobile phones is about 22%. Theoretically, there are still 235 million potential mobile phone customers or 78% of the population still untapped. Penetration statistics indicate the potential for growth of mobile phone manufacturers.
In other words, market penetration can be used to evaluate an industry as a whole to determine the ability of companies in an industry to gain market share or increase their revenue through sales. Returning to our example, global cell phone market penetration is often used to predict whether cell phone manufacturers will meet their revenue and earnings projections. If a market is considered saturated, it means that existing companies have the most market share – leaving little room for new sales growth.
Calculating a company’s market penetration is a key component of market penetration. This is done by calculating the company’s market penetration (discussed below). Market penetration is a ratio that compares a company’s performance to the market as a whole.
Market penetration is important because it allows companies to compare where they are now, where they are, where they want to be, and how their competitors are doing. Market penetration rate allows a company to set a SMART goal that can be quantified and tracked over time.
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Market penetration is calculated as a rate that describes how much the company has saturated the market. To calculate market penetration, you need to know how many customers the company has acquired in addition to the total market size.
MarketPenetrationRate = Number of Customers TTMS × 100 Where: TTMS = TotalTargetMarketSize begin&text = frac }} times 100 \&textbf \&text = \\\\\\\ \\\\\\\\\\\\\\\\\\\\\\ \\\
The number of customers is each unique customer who secures the company’s business. Some may choose to use only repeat customers to analyze a strong user base. Others may select customers who have transacted within a given time period (ie, the last five years).
Total market size can be difficult to define, especially if the company has a wide geographic area or sells goods online. The total market size is not necessarily the population of the region; Rather, it is the total number of potential customers a company has.
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An alternative but similar way to calculate market penetration is to focus on dollars versus people. Sometimes industries may be listed as having a certain value or sales potential; Therefore, companies can compare what they have sold and compare it to this market potential.
MarketPenetrationRate = TotalSalesDollars TTMSP × 100 Where: TTMSP = TotalTargetMarketSalesPotential begin&text = frac } } times 100 \&textbf \&text = text \end TSPRatetal = RSPRatetal TSPRatetal = Penetration Rate TTMSP × 100 = TotalTargetMarketSalesPotential
In the latter formula, a company cares less about the number of customers retained. This strategy is important for companies trying to secure the largest customers or largest market players. Even if they have small market penetration when considering the number of people they serve, companies that deal with the largest customers may be in better shape using the second principle.
Market penetration is not only used on a global and cross-industry scale to measure the scope and range of products and services, but is also used by companies to estimate the market share of their product.
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As a measure, market penetration relates to the number of potential customers who have purchased a particular company’s product instead of a competitor’s product or no product at all. Market penetration for companies is usually expressed as a percentage, meaning that a company’s product represents a certain percentage of the total market for that product.
To calculate market penetration, the current sales volume of a product or service is divided by the total sales volume of all similar products, including those sold by competitors. The result is multiplied by 100 to move the decimal point and create a percentage.
If a company has high market penetration for their products, they are considered the market leader in that industry. Market leaders have a marketing advantage because they can reach more potential customers thanks to well-established products and brand. For example, market leader and cereal manufacturers have more shelf space and better positioning than competing brands because their products are more popular.
Additionally, market leaders can negotiate better terms with them