INTRODUCTION

Marketing of products and services is the essential element of an organization. It is important aspect for making sustainable future for the business operations. Every company focuses on planning and implementing such marketing strategy which assist them to achieve their desired goals and objectives (Kunnanatt, 2008). In the first part report will focus on various elements of marketing process and will evaluate benefits and cost of indulging marketing orientation in business operations. In second part report will discuss about macro and micro environmental factors that could affect in making decisions regarding marketing. Furthermore, report will highlight the elements of marketing mix and in last part report will focus difference in marketing products and services to consumer and industry or sector.

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ASSIGNMENT 1: Evaluating Concept and Process of Marketing

1.1

Marketing refers to an ongoing process that indulges the aim of flowing information relating to products and services offered by an organization. Promotion is a vital element of business operations and plays important role in firm’s future sustainability (Malhotra, Lee and Uslay, 2012). In other words, through advertising desired wishes of customer’s are fulfilled by company’s products and services. Marketing process is molded in four steps:

Situation Analysis – This step involves in providing information relating to targeted market needs and wants and according to that company can mold their products and services in order to sustain in the market. Marketing manager can analysis situation through market research which includes research like surveys and market audit etc.

Marketing strategies – Market research will provide selling manager the specific information regarding needs and wants of targeted market and in this stage manager can make strategy or plan for future functioning on research basis and achieve their desired goals and objectives (Thurau and Hansen, 2000).

Marketing Mix Decisions – After evaluating critically all the needs and wants, in this stage manager can make tactical decisions regarding marketing mix of products and services such as product development, pricing decision, distribution contracts and promotional strategies.

Implementation and control – After making strategies and taking decisions for future operation, manager should focus on implementing that strategies and decisions on targeted market and take measures to control any problem or issue regarding functioning.

1.2

Marketing orientation refers to that approach which focuses on identifying and achieving the needs and wants of customers through product mix. In other words this approach differs from past strategies which focused on establishing selling point for existing products and services offered by the corporation (Akrani, 2012). Therefore, it can be stated that marketing orientation plays a vital role in between firm’s products and its targeted customers. There are several advantages and benefits of adopting marketing orientation in corporation like Aviva plc in insurance industry.

Competitive Advantage – The main aim of any firm is to have competitive advantage in its targeted market. For achieving competitive edge, Aviva plc needs to identify and evaluate the needs and wants of market and achieve their desired goals and objectives.

Customer Centric – Aviva plc is customer oriented business and having marketing orientation approach firm can focus on providing utmost benefits top its customers through various offerings as per their needs and wants. For taking such step Aviva plc needs to critically evaluate the needs and wants of targeted market and on that basis prepare their offerings.

Low Product Differentiation – There are various costs that need to be incurred by Aviva plc while marketing their products and service.
Through marketing orientation company can focus on identifying needs and wants of customers and accordingly product differentiation can be made to decrease the cost.

2.1

For analyzing macro environmental factors of Aviva plc, marketing manager have to critically evaluate PESTLE (political, economical, social, technological, legal and environmental) factors. These factors indirectly affect company’s business operations.

Political – Political factors refers to the influence or interference made by government in firm’s operations. Aviva plc have to operate according to the rule and regulation made by the government in insurance industry. Political factors make interference regarding the decisions taken by the manager for future functioning (Naidu and Chand, 2012). Political factors can be national employment law, international trade regulations, merger’s rules, and taxation and consumer protection.

Economic – These factors are influential to an economic performance of a country that directly impacts on company’s functioning. Economic factors play a major role in financial growth of Aviva plc as they have to make pricing strategy accordingly because if country is suffering from inflation than company have to lower their price of insurance policies such as motor, health, home and travel insurance etc.

Social – Social factors include those factors which are related to the social environment of targeted market. Changes in cultural trends, demographic and age distribution, level of education and standard of living can affects the products like motor insurance, health insurance of Aviva plc.

Technological – Technological aspects plays a vital role in growth of an organization, insurance industry is highly competitive so Aviva plc have to adopt latest technology in order to make their products and services available to targeted customers (Helms and Nixon, 2010). In past insurance have been paper based, but nowadays agents and customers can directly interact through internet and every formalities can be done through internet which decreases the time consumption and provides comfortability.

Micro environmental factors SWOT (strength, weakness, opportunity and threat) analysis can be done.

2.2

In present era accidental cases have been increased as people are suffering losses from it. Aviva plc has launched health insurance for individual and business in order to make their life more safe and secure. For this company can propose two segmentation criteria for products and services in different markets.

Geographic segmentation – Aviva plc according to their services can divide their targeted market into geographic conditions. Through this they can focus on those markets in which their products and services are more demanded (Kennedy and Parsons, 2012). corporation can promotes its products to developed countries where they can target various organization headquarters employees as well as people in developed country are more aware about insurance and wants to secured future.

Demographic segmentation – Through this segmentation enterprise can focus on dividing market on the basis of age, sex and gender. Health insurance can be given to everyone as per their needs and wants. Aviva’s main aim is to target those people who have disposable income or in other words those persons who can spend money after fulfilling their basic needs and wants. Such customer base can increase the sale of company’s products and services (Lafotaine and Shaw, 2005). Aviva plc has different health insurance policies criteria for businesses according to their ages in order to ensure employees while working in offices such as policies for sole traders, policies for 2 - 49 employees, policies for 50 – 249 employees and policies for 250 + employees.

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2.3

After deciding the market segmentation, Aviva’s next step is to target these potential consumer segments with a proper plan in order to get maximum return from it. For Aviva plc a differentiated target marketing strategy will be appropriate in order to fulfill the needs and wants of customers. This strategy will help in creating various marketing mixes for the above identified segments. Before applying this strategy Aviva plc have to make marketing and advertizing campaigns (Pulendran and et.al., 2003). Company can target both individual and businesses to make policies for healthcare. Through this strategy Aviva can appeal people of at least two segments it may be of two cities or locations, individual or group etc. Health insurance in present situation is one of the essential elements of an individual because people are more aware about their life and future. For securing future individuals and businesses groups are taking steps to have insurance policies which would be beneficial for them in near future. This strategy will assist Aviva plc to offer their products and services at lower prices to attain the competitive advantage (Wheelwright, 2010).

2.4

Buying behavior refer to the stage where various types of methodologies that consumers follow while purchasing of products and services. Buying behavior of an individual can be influenced by the marketing strategy used by the company in order to make their products and services reach to its targeted customers (Kennedy and Parsons, 2012). There are several steps which lead them towards making final decision of buying the products such as situational and psychological factors.

Situational factors – Buying behavior of an individual can be defined on the basis of situation he or she is in case of health insurance. Awareness amongst the family members could create such situation for the individual to have such insurance or the rate of accidents happening in present time could influence them to buy policies (Malhotra, Lee and Uslay, 2012). Aviva plc also has to make several offers regarding the services they provide on the basis of several situations that an individual faces in routine life.

Psychological factors – These factors can easily be understood by adopting Maslow’s need hierarchy theory, because customer’s level of satisfaction can increase with increase in standard of living. Their necessity will changes according to their income and with that insurance policy can be affordable for them to have future security in life. Maturity period and installments are also other factors that strike in the mind of customers while acquiring an insurance policy (Salminen, 2001). Customers are more focused on the quality and quantity of services offered to them at cheaper prices, till the moment company is taking well care of their customer’s needs and wants they will remain loyal. Aviva needs to focus of fulfilling basic needs and wants of customers in order to make loyalties.

2.5

There are several positioning strategies that can be adopted by the top level management of Aviva plc.

Positioning by Product Attribute – Aviva should position healthcare insurance against several disease on the basis of features and attributes that it possesses. Top level management of Aviva plc should ensure that while marketing the policy in two different market segments, they should offer in such manner that its feature and characteristics can be easily presented to customers (Thurau and Hansen, 2000). Services of insurance policy can differ according to the needs and wants of clients.

Price – Prices plays a vital role in sustainability of every products and services. Aviva plc can market or promote their healthcare policy by charging different prices from different customers. Differentiated target marketing strategy also provides option for the company to charge different prices from its targeted market segments (Nwankwo and Gbadamosi, 2010). On the other hand attracting individual Aviva plc needs to low their price of healthcare insurance so that it make space in the targeted market and more numbers of people are covered under it.

Product user – Aviva plc have to apply different marketing mixes while advertizing the insurance policies into two different segments. As user of the services in both the segment are different from one another. In geographic segmentation, it is assumed that big corporate will use this insurance more often because their working conditions rate much tougher than the others, in spite of providing several services accidents can take place any moment which would be harmful for the company.

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3.1

There are several ways through which a new innovative product or services can be created by Aviva plc for sustaining in such highly competitive market. product development process of Aviva plc can indulge following options.

Aviva plc can gain competitive advantage through offering services in an insurance policy and range of options covered in a policy will make impact on the customers buying behavior and force them to go for Aviva’s heath care insurance policy (Hines, and Francis and Found, 2006).

3.2

Distribution of products and services are the major elements of an organization. To ensure the availability of product to individual customer, Aviva can use the source of internet such as through means of electronic commerce. So that business enterprise and client can easily interact with each with having any physical interaction. Since it is an insurance policy which is an intangible product, it is crucial to have various agencies and outlets to sell the policies within the country (Lafotaine and Shaw, 2005). Aviva plc can also adopt distribution channel of door to door, for that several agents can be appointed who will personally go to the clients and influence them to purchase and avail the services relating to health care insurance. Apart from this, company can also have insurance brokers who are authorized through various governing and regulatory bodies.

3.3

In insurance industry pricing is very important aspect, price of a product and services set the future sustainability of an organization because of high competition. There are several pricing strategies can be adopted by the management of Aviva plc. The pricing strategy that should be adopted by company in order to develop market and as well as become the leading company in healthcare insurance and that is cost driven price that is competitive in nature and provide maximum value to its customers (Pulendran and et.al., 2003). Penetration pricing strategy would be appropriate for Aviva plc because this strategy will indulge in influencing individual as well as businesses. Furthermore, this strategy will assist Aviva to gain competitive advantage in existing market. Firm can also make awareness amongst those people who are not able to generate much income to have such policies, as Aviva plc lower their products and services price through this strategy and increase their customer base.

3.4

Every organization promotion of their products and services is essential part of marketing process. Through promotions Aviva plc can create and spread awareness of healthcare insurance policy amongst targeted customers and increase their sales. There are several promotional strategies that can be adopted by Aviva plc for marketing their products and service in existing market. Aviva can adopt personal selling because policy is a sensitive product which is acquired by the customers, for them having policy is precautions taken before any injury. Personal selling can be suitable in both segments geographical and behavioral. Firstly, in geographic segmentation Aviva plc can use personal selling as well as advertizing. Advertizing at large scale will be best suitable strategy while marketing products and services to different geographical locations in UK. The advertisements will be based on culture of different places so that product can attract utmost numbers of customers. Secondly, behavioral segmentation where local people do not have much awareness about health insurance policy than direct and personal selling would be the best option, for this Aviva have to appoint numbers of qualified agents for selling their products door to door or personally to the client.

3.5

The extended marketing mix for both geographical and behavioral segmentations is same as it includes that appointed employees should be highly trained and skillful in order to provide information regarding insurance policy to customers and have the ability to convince them to have such insurance for their future security (Kennedy and Parsons, 2012). Furthermore, Aviva plc need to function according to needs and wants of customer and focus on improving existing customer services and make efforts to introduce new services so that they can gain competitive advantage over its competitors. Secondly, processes refer to the number of methods involved in making marketing effective in Aviva plc. Thirdly, physical evidence refers to the methods provided by the manager of Aviva plc to use the health insurance policies.

CONSLUSION

Aviva Public Limited Company deals in insurance industry which focusing on promoting and providing service related to healthcare insurance (Edgell, Meister and Stamp, 2008). In the early part report focused on discussing various elements of marketing process and evaluating cost and benefits of acquiring marketing orientation in the functioning of business operations. Market for healthcare insurance has to be promoted in geographic and behavioral segments so that Aviva plc can gain competitive advantage over its competitors in existing targeted market.

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