October 7, 2022
Advertisement of insurance

Advertisement of insurance companies

Advertisement of insurance is one of the parts of marketing, advertising, and public relations in which a company or organization tries to encourage people to buy their product by increasing its image.

The word “advertisement” is derive from the Latin word “ad vertere”, meaning “to turn toward.

What is the advertisement for insurance?

The insurance companies are trying to promote their business with the advertisement of insurance by using different ways such as mass media and direct mail. The following is an example of an advertisement of insurance through the mass media. Transportation ads appear on buses and subways, in the Saturday paper, and even on television. Private insurance companies also advertise in the newspaper.

Advertising through direct mail is another way insurance agents try to promote their business with the advertisement of insurance. Direct mail is a form of advertising that requires less effort to develop than other forms of advertising. Which one is better? From a consumer’s perspective, direct mail advertisements have higher success rates than TV or radio advertisements because they require more time and effort by the consumer to read.

A major disadvantage of direct mail is that most people do not respond to them.

Types of advertisement of insurance

The advertisement of insurance is usually classified into two types: direct mail and mass media. However, there are many other detailed classifications.

The following are the classifications of the direct mail advertisement of insurance:

1) The first classification is based on the goal of an advertisement. Insurance companies want to increase the number of clients by using this type of advertisement. For this reason, agents use a personal tone in their advertisements and try to catch the attention of potential customers by providing them with special offers or incentives. This approach leads potential customers to believe that they will get something in return for buying insurance from that company.

2) Insurance companies make use of the second type of direct mail advertisement to increase customer retention. Companies doing business in a marketplace that is highly competitive and where consumers can easily switch between products use this kind of advertisement. In order to appeal to potential customers, insurance companies often use a variety of incentives such as gift certificates and other special offers.

Advertisement of insurance

3) The third classification is based on the organization that sends out direct mail advertisements. There are three main types: direct mail from individuals, direct mail from insurance companies, and group mailings from associations like AARP or New York’s Best.

4) The fourth classification is based on the length of the mailing piece being sent out. Direct mail pieces are classified as either tabloids or envelopes. An envelope is a piece of paper with the address pre-printed on it. A tabloid is a larger sheet that folds in half to make two pages and includes an address label.

The following are the classifications of the mass media advertisement of insurance:

1) The first classification is based on the audience that receives a message. Insurance companies seek to target either an entire population (such as everyone in a particular geographical area), or subgroups within it, such as single men and women, or middle-aged homeowners.

2) The second classification is based on whether or not a product is being sold from this form of advertising. Companies selling insurance want to attract not only general interest customers. But also people who have the financial means to afford insurance.

3) The third classification is based on how a message is deliver. Corporate messages are generate and deliver by in-house staff while singles and couples. Alike receive solicitations from family, friends, and co-workers.

4) The fourth classification is based on who receives the message. Only 20 percent of marketers use mass media advertising because it can be very expensive. On the other hand, as many as 80 percent use direct mail because it costs much less when compared to television or radio advertising.

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