MARKETING CONCEPTS A SURE WAY OF ENHANCING GROWTH IN THE SELL OF INSURANCE SERVICES. A RESEARCH PROJECT TOPICS ON INSURANCE
1.1 BACKGROUND OF STUDY
The concepts “insurance” has been defined by many authors and from different perspectives but all those definition are emphasizing on one things, that is being a pool of risk and also a risk transfer from one person to another.
According to Falgan J.I (1989). Insurance is defined as a social derive of reducing risk by combing a sufficient number of exposure units to make their individual losses, collectively
Insurance allows the individual insured to substitute a small cost (ie premium) for so large but uncertain loss (not to exceed the amount of insurance) under an arrangement whereby the fortunate many who escape loss will help the fortunate many who escape loss will help compensate the unfortunate few who suffer loss. The aim of insurance contract is to provide indemnity, ie compensation for injury or loss sustained. Insurance has two broad classes which include life and non-life insurance. Life insurance comprise of whole life assurance, term assurance, endowment assurance and anmioty whole non-life insurance consist of fire insurance, marine insurance, motor vehicle insurance, contractors “all risk” and engineering risk insurance miscellaneous insurance and oil and gas insurance, occupy a strategic position in an economy because it is the only business which exists for the survival of other business.
The marketing concepts is a philosophy of business that sates that the customer wants satisfaction as the economic and social justification of their wants at a profitable volume in an integrated business operation.
The marketing concepts can also be said to be the philosophy that recognizes that the consumers is at the center of everything we do in business it’s concepts believers that without the consumers there can be no marketing and based on this it should be aimed at satisfying the need of the consumer. The following are some of the factors that enhanced the adoption of the marketing concepts.
a. MASS MARKERS AND MASS AFFLUENCE: The existent of well to do consumers: whose patronage, a discordant collection of producers would compete, inspires these producers to adopt the marketing concept. In this state of market competition, with consumers who are affluent, marketing concepts helps producers to sufficient satisfy these consumer so as earn.
b. ENHANCES IN MARKETING CHANNELS: Nigerian distribution channels here changed considerably over the years, becoming more complex and more diversified. This has enabled the consumer to locate and buy products of their choice easier from producer. Producers always adopt marketing concepts to ease the diversification and complexity of distribution channels.
c. TECHNOLOGICAL CHANGES: Technological charge in most developing countries as enhanced the production of goods and services in amazing varieties which can be made available to consumer the speed associated with these technological changes means that producers would more seriously compete for the consumers money. Marketing concepts offers the surest way for fully satisfying consumers want under this situation.
d. GROWTH OF MASS COMMUNICATION MEDIA: this also contributes to the adoption of marketing concept in the sense that many more consumers in far places can be informed about the existence of products. In this way an insure in owerri, Imo state could compete with an insurer in far away Lagos for the patronage of consumers in Lagos. This existence growth of mass communication means that competition for the consumer money is generally more intense since a producer would be well aware that even a competition who base in overseas coned fight for a local consumer. To cope in this state of intensely competitive market situation, we are likely to adopt and implement the marketing concept.
e. A CROP OF PROFESSIONAL MANGERS: The existence of a crop of professional managers, the transfer of full management and executive responsibility and authority for the different organizations from the founder to a crop of educated and professional mangers would enhance the adoption of the marketing concept.
In spite of the inductive appeal of the marketing concepts, many firms are unable to adopt it in their organization. This state of affair is normally due to one a combination of these factors.