>>>>>>HOTEL The Product Mix In any organization, we find product the focal point.

The hotel services also require a fair combination of core arid peripheral services. It is right to mention that in almost all the hotels of same category by and large the core services are found identical and therefore the peripheralservices divert a close attention where the hotel personnel need professional excellence. More innovative the peripheral services, more attractions is the product mix. This makes it essential that hotels and hotel companies assign due weightage to the formulation of an optimal product mix in which peripheral services prove to be a point of attraction. The emerging trends in the socio-economic parlance necessitate an analogous change in the product mix. With the passage of time, it is quite natural that some of the services become outdated and therefore, we need to eliminate them. At the same time, it is essential that we keep our minds open and come to know the latest developments in the likes and dislikes of the customers, and while including new services in the product mix, assign due weightage to their preferences. While formulating the product mix it is pertinent that we make the ways for frequent innovation. It is also right to mention that frequency in innovation is found essential and at the same time easier in the context of peripheral services. The hotel professionals are required to formulate a package that helps in attracting the customers. Modifications in the existing services by adding a few outstanding properties is found to be a suitable strategy for the development of product. The generation of idea, the formulation of concept, the analysis of product cost and the testing of services before their final commercial launch become significant in the very context. This necessitates an in-depth study of product life cycle. A hotel manager bears the responsibility of adding attractions to the product mix and this is possible when they have world class professional excellence. While formulating the product mix for the hotel services, it is essential that cateringmanagement, restaurant and cafeteria management, management of bedrooms, management of convention halls are given due weightage. The boarding services are considered to be an important part of product mix. In addition, the lodging services also become significant. Here it is essential that facilities like light, water, electricity, ventilation, entertainment, sanitation arrangement of bed etc. are available to the guests. While formulating the product mix, the hotelorganizations are required to make possible a fair mix of core and peripheral services. The Product Mix for a Hotel will typically include: Reception: – Welcome, Enquiry and sign posts. Boarding: – Catering, restaurants and cafeterias. Lodging: – Bed, room, light, water, sanitation, ventilation and view. Entertainment: – TV, Dance, music, cultural shows and radio. Shopping: – shopping arcade, fairs and exhibitions.

2. well appointed rooms. 5. The components like advertisement. The Presidential Suite: located on the top floor. 2. executive-sized rooms. coffee table. Rooms feature luxurious marble bathrooms. In the face of potentials. spacious bedroom with king bed and large marble bathroom with separate walk-in shower. This focuses the attention on innovative promotional measures. While advertising. papers. 4. personal selling. The spectacular lobby is destined to become Mumbai’s most popular meeting point. office and private living room. The product mix of the Regent Mumbai include: Room: 1. reservations asasand car rentals. There are a . there is a significant development in the print media since sophistication in the printing technologies has made ways for offset printing. Deluxe room: 400 sq. sales promotion. broadcast media and telecast media. 508 luxurious. it is significant that the hotel professionals make possible a productive use of print media. Services: 1. Five enticing restaurants serving Indian. dining area. Two bedrooms each with its own private bathroom. Executive room: 450 sq ft. hair cutting. screen. Of late. sensing and persuading the prospects or users. requirements and the intensity of competition. fitness centre and squash courts. there is a need to select media for promoting our messages and slogans. word-ofmouth promotion and telemarketing need due attention of hotel professionals. Separate bedrooms with king bed and suite bathroom and living room. each with its own private bathroom. magazines. Roomy living room area with a sofa. Executive Suite: 700 sq ft. Medicals: – first aid / ambulance. desk and chair. dining area. and large living and entertainment area. Advertisement Advertisement is a paid form of communication that helps in informing. 3. large. 5. 4. Chinese and European cuisine. two room suite. ft. news. Communication and transport: – Telephone. with executive desk and chair and sofa. 3. indoor and outdoor meeting and function space. The Regent Suite: located on the top floor.printing and laser printing. These devices are found efficacious in attracting the prospects.Personal Care: – Beauty parlour. Two bedrooms. Fully equipped health club. and lounge opening onto a private pool deck overlooking Mahim Bay towards the city. gymnasium and jogging. it is only not sufficient to concentrate on the quality of services but it is also impact generating that we promote our business in such a way that the prospects come to know about the quality to be offered to them as hotel customers. overlooking the Arabian Sea towards the north. publicity. Extensive. Promotion mix For successful marketing.

it is pertinent that the hotel professionals advertise sensibly. intelligently and for that seek the co-operation of advertising professionals who can simplify and sensitize the process. The magazines. While publicizing. The fact cannot be denied that while using print media. there are a number of events which should be transmitted to the local press. planned and sustained effort to establish and maintain mutual understanding between an organization and the public. Publicity Another dimension of promotion known as an unpaid form of persuasive communication also plays an incremental role in promoting the hotel business. rather than the advertisements unless they are looking for a product or are interested in booking a holiday or a restaurant or a convention hall or a wedding hall. the telecast media is considered to be the most sensitive but expensive media of advertisement. Public relations activities thus become instrumental in the process of publicizing. quality print. attractive scenes or so. While selecting the media for advertisement. It is due mainly to fact that in the print media. We are in a position to attract the attention of prospects by displaying attractive scenes. In view of the above. In the hotel business. It is against this ground that we find hotels advertising through TV. In this context. it is significant that we keep in our minds the magazines. In the world of marketing communication. The use of quality materials paves avenues for attractions. the materials used for advertising are found of world class. To be more specific when we have advanced print devices we find enough scope for using print media for advertising. The vast majority of hoteliers welcome publicity not only because it is free but because they know that most people buy a magazine or a newspaper to read the articles. Of late. such as quality papers. menus for certain . comforts. Another plus point that we find in the print media is related to economy. news and editorials. costs etc.number of plus points in the print media. newspapers preferred by women and teens should be given due weightage since in a majority of the cases. events. the advertisers get an opportunity to display facts and figures which may be very much instrumental in convincing and persuading the prospects. print media is found to be the most effective media for hotel advertisements. The services of advertising professionals would make possible creativity in the advertisement messages and appeals. We find it economic and therefore the promotion budget is not to be non-optimal. the decisions regarding a particular tour hotel are taken by them. quality photographs. list of cocktails. such as the appointment of a new chef. the hotelprofessionals play a significant role by managing the media personnel for publishing news items related to the hotel. newspapers preferred by the target audience. it is right to observe that out of all the media. top position is assigned to the telecast media because scope for audio-visual exposure makes ways for sensitising the prospects in a right fashion. It is possible to be descriptive while advertising. landscape. The British Institute of Public Relations has defined it as the deliberate.

which are grouped into the following heads: Printed Publicity Advertising Publicity Projected Publicity Structural Publicity Personal Publicity Thus it is right to say that public relations activities occupy a significant place in the promotion mix of hotel companies. In the public relations. Illustration. Sales promotion is considered as a temporary device to increase the business with certain objectives. In addition. There are a number of hotels doing a lot of charitable work and helping in organizing charitable fund-raising events too. These facts make it clear that sales promotion is complementary to advertising. particulars of certain important conferences or exhibitions to be held. You spend nominal amount but get big coverage. if not at present of course in future. it is important that hotel companies are getting the best co-operation from media and for which the Public Relations Officers or the marketers or the contact personnel bear the responsibility of developing rapport with them. some . menus for special days of the year. There is a three-tier arrangement for sales promotion in the hotel business.functions held at hotel. the activities range from a press release to newspaper and magazines. It is a short term activity seeking to boost sales during peak demand periods to make it sure that the firm obtains its market share and helps launch a new product or support an ailing or modified services. There are a number of media sources available for publicity. travel agents explore opportunities for educating the masses. offering to them small gifts and influencing them to write in favour. The holiday package tours and trips on familiarity with a tour spot. the hotels and hotel companies also offer incentives to the users vis-à-vis to the personnel and organizations evincing interest in promoting the business. Like other organizations.      Sales Promotion In almost all the organizations. tour operator and travel agents and guests or clients. organized by tour operators for the travel agents to help them in enriching their knowledge and making the travelling decisions. the tour operators. Sales promotion and advertising objectives do not conflict but reinforce one another. The “wine and cheese parties” organized by the British Airways to launch not required Seychelles as a new resort or other such functions with the motto of enriching the knowledge of the prospects. The tools of sales promotion are directed at the hotel staff. photographs of staff dressed up for special days and well-known people staying in the hotel. copy and the spoken word are the primary publicity to media. In the hotel companies. which help you substantially. There are a number of incentives offered to them. In this context. especially to create the interest of prospects in a holiday age in a good resort of a country. we feel the need of offering incentives for promoting the business. organizing for them lunch or dinner.

there are also cases of organizing sales contests. Folder: Folders are the most commonly used sales promotion tools. 5. specially the habitual guests for the purpose of keeping on the business. museums. It requires careful planning of the layout. There are giveaway and concessional accommodation facilities for them. 1. The particulars are required to be in brief but clear. This tool is found significant to restaurants and bars. Merchandising: It is found helpful in promoting mass-market. amusement parks. It describes and illustrates the services made available by hotels. The guests. When we talk about packaging in the hotel industry. The tour operators and travel agents are also given the incentives. 6. In this respect. 7. It is also called as a pamphlet bound in the form of a booklet. The folders are usually printed on a single sheet of paper and then folded.of the hotels also offer concessional travelling and accommodation facilities. The materials used for packaging are required to be attractive. The quality of paper and printing used for publication are found significant to make folders more attractive. Besides. Direct Mail Materials: The sales letters are found to be a direct mail material that can either be used alone or in combination with brochures and folders. . The following tools of sales promotion are used for all the three heads instrumental in promoting the hotel business. our emphasis is on the outer cover and internal layout of brochures and leaflets. Brochure: It is a device to stimulate customers and motivate them to visit a hotel and avail of the benefits offered by the management of the hotel. Tools of sales promotion. especially to their staff. 1. Besides. They are allowed off-season discount and a number of small gifts. it is essential that folders have an impressive appearance in totality. Display Materials: In the materials to be displayed at sensitive points are posters. colour and paper used for publishing the contents. 2. The brochures are supposed to focus on the theme and messages of promotion areas. Packaging: it is known as an attractive wrapper of product. the guests or clients are also offered incentives. clients get detailed in information from the brochure. The hotels can use folders for promoting the business. We find brochure different to folder in size and contents as well. exhibits etc. The restaurants and bars are required to place their important items at such point where the guest and clients get an opportunity to have a close view of special drinks or special menu. It is a final persuasive move on the part of hotels and hotel companies. The merchandising involves displaying of foodstuffs and drinks in the right location. It is a detailed publication helping hotel companies in promoting their business. outstanding points of attraction in the hotels or so. We can use these materials in the offices of the travel agents. 3. Attraction leaflets: This is exclusively meant for presenting a view of the different theme parks. 4. It is a single piece of illustrated paper that is found less voluminous than the brochure. dispensers.

8. This speaks of the fact that wordof-mouth promotion can show more negative effects and therefore the hotels and hotel companies need to assign due weightage to this component of the promotion mix. It conveys something to customers even about the quality of a product. The persons acting as word-of-mouth promoters are also called the hidden salesforce. These services pave the ways for oral communication and recommendation. no marketing mix is found so much critical as pricing. Pricing is not only the outcome of the marketing forces. and railway and bus stations. . Word-of-mouth Promotion Word-of-mouth promotion is very much instrumental in sensitising the prospects. This discounts are maximum for 10 persons on the food and beverage items also. Of course. 9. The hotel guests take a good meal for granted but don’t forget to narrate to their friends and relatives about a bad meal or the bitter experiences of menu-fatigue. There are a number of variables influencing the pricing decisions of an organization. card owner is entitled to a free meal on the purchase of a meal from any of the hotel’s restaurant. Price Mix Pricing decisions are found critical.of-mouth than fifty good meals. We find them close-mouthed and stiff-lipped till they make a goodbye and after going back they try their best to think twice before coming to that hotel again. such as tourists’ spots. Moreover they start narrating to their friends and relatives their bitter experiences of menu fatigue even without taking a rest. there are a number of components to promote sale but it is right to mention that other constituents may be ineffective but the word-of-mouth can’t. challenging and chaotic. it is much more significant that the satisfaction of users is give top priority. has a sales promotion strategy such as THE REGENT ADVANTAGE CARD system. travel agents. Of course. In the hotel industry. The word-of-mouth promoters are those who are satisfied with the services of hotels or are motivated to motivate the prospects.tour operators or at the places where tourists come. The card owner also gets various discounts such as 10% discounts in the THE REGENT’s Beauty Parlour. The aforesaid tools of sales promotion help hotels and hotel companies in increasing the business. refined behaviour and world-class services by the hotel personnel carry some meaning. Under this scheme. resorts. tour operators. We can’t deny the fact that one bad meal would often do more damage by word. hotel personnel. The hotel personnel need professional excellence to make the tools of sales promotion productive. It is against this background that high-level functions. Mumbai. such as users. THE REGENT. the dissatisfied group of users is free to complain to the hotel management but often they don’t act. Competition and Exhibition: There are organization of competition and exhibition for promoting the business. Special Officer: There is also a provision for special offer for all. 30% discount on the suite room. airports. Of course.

net operating cost plus rent (if payable) net operating cost plus interest and net operating cost plus a target return on capital. A hotel may also adopt a policy to give high pay roll to provide a higher standard of services that the customers are ready to pay.The pricing decisions are beset with many problems. At the same time. it is found to be a major selling tool.  This helps in calculating the total room sales and to achieve various levels of profits with the assumption that room department cost ratios. There are some common factors considered by the hotel management and the public:  Current charges prior to a review the established inflationary effect on cost the general economic situation the emerging trends in currency exchange and the intensity of competition. Pricing decisions are found important in both strategic and tactical sense. Pricing for Room Tariffs Here. Right averages and average room rates are the two important aspects to be taken into consideration while fixing hotel tariffs. Customary to charge lower prices. tactical pricing is found instrumental in promoting the hotel business. In addition. Net operating costs. They need world-class excellence while making strategical and tactical pricing decisions. While fixing room tariffs. it plays an outstanding role.  Trade Discounts Found applicable in the hotel industry as tour operators and travel agents are offered discounts. Experiences show that in the hotel industry. This is due to the inseparability and perishability of the hotel products. it is also right to mention that the hotel professionals need more excellence while fixing the hotel tariffs since the services are found of perishable nature. it is essential that we assign due weightage to the price structure to be adopted. Also known as price deregulation. In the tactical sense. This is also due to the inability of the service engineering organizations to carry over unsold stocks as a buffer to cope with future demand as found in the goods manufacturing organizations. The following are the economic criteria on room tariffs:      The total amount of net operating costs (after contribution from the food and beverage departments). There are a number of ways for practicing and benefiting from this tool: Seasonal Discounts Found applicable in the hotel industry. we go through the guidelines for fixing reasonable room tariffs. staff numbers and staff standards are known  . we find special function room rates for overnight convention. specially during the off-season.  Special Discounts In the hotel industry. The average room rate should not be much higher than the competitive hotels otherwise the market will not welcome it. No doubt in it that fixing the hotel tariffs is just like pricing other goods and services. the seasonal fluctuation in demand and increasing intensity of competition also complicate the task of professionals.

e. we find payroll more expensive. the major difference behind this price variation is the different quality of services provided by the hotel such as better quality shampoo. a schedule should be produced as per the average room rates required in order to break even and/or to achieve the profit targets at various occupancy levels. services or atmosphere is unique or just a little better than the competitors.. In addition. Let us consider the various means by which hotels and their customers can be brought together . bed sheets.  The business in the function room. there are three or four types of rooms but so far as the menus are concerned we can have dozen of dishes. The most expensive suite of THE REGENT. based on the current quoted tariffs. The would-be guest chooses a hotel and then contacts it by letter. i. There are some of the important points to be considered in the process: Do you find that your guests are eating in the hotel restaurant or coffee shop where the competitive restaurants are very close to the hotel. they compete with each other and help splitting the market down the middle rather than offering a true price. The only parties involved are the hotel and . Direct individual sales This is the simplest method. of course. Mumbai.  After this. In each room they are providing facilities such as T. But this aspect is found more complicated for function room services. Unless we move to the self-service (buffet style) functions. and the décor of the room. Pricing for Function Restaurants can get more business because the food.  Pricing for Food and Beverage In a majority of the hotels. telephones. this aspect is found more competitive specially on the price front. Most of the functions are fairly routines that make it difficult to produce a gastronomic experience. 15000 + 20% taxes. etc. Yet.V. the payroll would remain an important dimension. Generally a proportion does eat in but a significant proportion goes out. telephone or some other medium. it is possible to calculate the different sources of business. ‘king suite’ is for Rs. This costs money in the form of commissions.  Budgets on room sales are to be planned based on sales mix taking into account the different sources of business. computers.On the basis of the above. 45000 + 20% taxes and the ‘Normal Suite’ is for Rs.  Where a hotel has two or more restaurants. but then so does advertising. Payroll is found to be a major cost on functions. A number of hotels are found fixing a staff standard for functions based on their style of hotel or one waiter to a table of ten people or one waiter to two tables. must/not be exceeded if the average rate required is to be achieved.  Place Mix The problems hotels experience in reaching new customers lead them to use third parties as intermediaries.

Typical methods include mentions in guidebooks. local accommodation brochures or directories such as the motoring organization handbooks. This means that he has to place a long distance telephone call in order to make a booking. Of course. It receives the usual commission. [ Travel agents make their money from commissions received on the sale of tickets and bookings. These are sometimes arranged by specialist agencies. overnight functions and the like. the mechanism is simple. Since tickets are fixed in price. including hotel accommodation.face selling. but others can be very large. 2 Company agents Some city centre agencies specialize in business house travel. they sell an . such as sports clubs outings. Direct group sales Many direct bookings are actually made on behalf of groups of one sort or another. such as major conferences. Groups are so important as a source of business that they are an exception to the usual rule that it is not worth the hotel’s while to try to contact the customer directly for some face-to. Roadside advertisements are examples of this approach. One of the main problems with direct contact is that the customer is usually located a considerable distance from the hotel. However. Group Tour Operators These include the familiar names whose brochures you will find in any retail travel agent. Travel agents There are two main types: 1 Retail agents These are the common and familiar high Street agents who sell direct to the public. In all. Sometimes they buy one outright.the customer. Many of the larger ones have their own retail out lets. This involves some kind of advertising or promotion. Their main business is to arrange holidays for their customers. but quite often the organizer prefers to deal with the hotel directly. the customer has to find out about the hotel first. not all travellers bother or are able to arrange accommodation in advance. Either way. and might have to repeat this several times In order to obtain a room at a particularly busy period. the agency is likely to handle a lot of valuable bookings. though some of its profits are likely to be passed on to its parent company or major client. while organizations such as major multinational companies are so big that it is worth their while to have their own travel agency to handle all their business. and a hotel can always appeal directly to these. This costs money and (what is often worse) often takes a good deal of time. The agency carries a stock of blank tickets and simply remits the money less the commission to the carrier after it sells one. Some of these are relatively small. sometimes they simply invite a small agency to specialize in their business.

and it has attracted its own full-time companies that provide a range of consultancy and administrative services. One of the fastest growing sectors is that of incentive travel. food. Group tour operators do not receive commission because they are not introducing clients but rather booking the space themselves. We do not have any control over uncertainties which involves financial losses. This is a specialized field. accommodation.1 Week Ago Q. pension. etc. entertainment. >>>>>>>>>>>>>>. The risks may be certain events like death. They make their money from the difference between the cost of the separate elements of the ‘package’ (transport. retirement . Others specialize in arranging conferences.Insurance Marketing Mix in Insurance Industry (7 P's) . ski trips and the like. Some undertake ‘speciality’ work. Services Marketing Mix for Insurance (15 marks) ⇒→ INTRODUCTION: Wherever there is uncertainty there is risk.enormous number of holiday ‘packages’ and book a comparable amount of space at hotels. usually arranged by a company for its clients or its successful sales staff. arranging battlefield or birdwatching tours. This category also includes a vast number of smaller operators of various sorts.) and the price they are able to charge for it as a whole. safaris.

→ MARKETING –MIX FOR INSURANCE COMPANIES: The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. it means tangible product and when we produce or generate services. people. due care is to be takenin quality product and customer satisfaction. The creativity in the promotional measures is the need of the hour. Thus. the product. word of mouth communication needs due care and personal selling requires intensive care. . it is also pertinent thatthey think about the innovative promotional measures. in the following manner: 1. etc. its price. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage.PRODUCT: A product means what we produce. it means intangible service product. It also provides capital to the society as the funds accumulated are invested in productive heads. accident. Insurance comes under the service sector and while marketing this service. → INSURANCE MARKETING: The term Insurance Marketing refers to the marketing of Insurance services with the aim to createcustomer and generate profit through customer satisfaction. process & physical attraction.e. promotion. The advertisement. It eliminates worries and miseries of losses by destruction of property and death. publicrelations. The Insurance business deals in selling services and therefore due weightage in the formation of marketing mix for the Insurance business is needed. If we produce goods. The main function of Insurance is to provide protection against the possible chances of generating losses. While marketing the services. The marketing mix includes sub-mixes of the 7 P’s of marketing i.or uncertain events like theft. A product is both what a seller has to sell and a buyer has to buy. fire. The above mentioned 7 P’s can be used for marketing of Insurance products. The Insurance Marketing focuses onthe formulation of an ideal mix for Insurance business so that the Insurance organisation survivesand thrives in the right perspective. place. It is not sufficient that you perform well butit is also important that you let others know about the quality of your positive contributions. an Insurance company sells services and therefore services are their product.

In India. While initiating the innovative process it is necessary to takeinto consideration the strategies adopted by private and foreign insurance companies. the services or the schemes should be motivational. The policy makers are required to activate the efforts. Apart from offeringlife insurance policies. it is not that impressive. It would be prudent that the LIC is allowed to pursue a policy of direct investment for rural development. the formulation of productmix should be in theface of innovative product strategy. they also offer underwriting and consulting services. With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. The introduction of Rural Career Agents Schemehas been found instrumental in inducing the rural prospects but the process is at infant stage and requires more professional excellence. ii) Interest charged for defaulting the payment of premium and credit facility. The Life Insurance Corporation has intensified efforts to promote urban savings. 2. It is natural that the users expect a reasonable return for their investment and the insurance companies want to maximize their profitability. while deciding the product portfolio or the product-mix. but as far as ruralsavings are concerned. the pricing decision also governs the transformation of potential policyholders into actual policyholders. . In short. the Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included. In a developing country like India where the disposable income in the hands of prospects is low. The Group Insurance scheme is required to be promoted. When a person or an organisation buys an Insurance policy from the insurance company. he notonly buys a policy. but along with it the assistance and advice of the agent. the prestige of theinsurance company and the facilities of claims and compensation. Hence. and iii) Commission charged for underwriting and consultancy activities. Investment in Government securities should be stopped and the investment should be channelizedin private sector for maximizing profits. the Life Insurance Corporation of India (LIC) and the General Insurance Corporation (GIC) are the two leading companies offering insurance services to the users.PRICING: In the insurance business the pricing decisions are concerned with: i) The premium charged against the policies.

reinsurance companies as well as registration are all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy. • Interest: The rate of interest is one of the major factors which determines people’s willingness to invest in insurance. • Mortality(deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. The three main factors used for determining the premium rates under a life insurance plan are mortality. such a gap is found existent which has been instrumental in making worse the image problem. commission to agents. The agents and the rural career agents . This is also to process the services to the end user in such a way that a gap between the services. and ii) Locating a branch.The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums.promised and services – offered is bridged over. • Expenses: The cost of processing. In a majority of the service generating organizations. The premium rates are revised if there are any significant changes in any of these factors. The pricing in insurance is in the form of premium rates. expense and interest.PLACE: This component of the marketing mix is related to two important facets – i) Managing the insurance personnel. 3. In a country like South Africa the threat to life is very important as it is played by host of diseases. The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services.

4. Another important dimension to the Place Mix is related to the location of the insurance branches. distinct approach andan innovative style. It is also essential that they have rural orientation and are well aware of the lifestyles of the prospects or users. the rate of illiteracy is very high and the rural economy has dominance in the national economy. In addition it is also significant to provide safety measures and also factors like office furnishing. Even if the policy makers make provision for the quality upgradation. They are required to be given adequate incentives to show their excellence. the branch managers need to prefer local persons and provide them training and conduct seminars. lack professionalism. This is essential to make the work place conducive. In a country like India. attractive and proactive forthe generation of efficiency among employees. It is essential to have both personal and impersonal promotion strategies. The branch managers need professional excellenceto make place decisions productive. the front-line staff also needs an intensive training programme to focus mainly on behavioral management.acting as a link. the promised services hardly reach to the end users. parking facilities and interior office decoration should be given proper attention. the agents and the rural career agents play an important role. While recruiting agents. such as smooth accessibility. In promoting insurance business. civic amenities and facilities. The insurance personnel if not managed properly would make all efforts insensitive. the branch manager needs to consider a number of factors. availability of infrastructural facilities and the management of branch offices and premises. In addition to the agents. While locating branches. Thus the place management of insurance branch offices needs a new vision. The front-line staff and the branch managers also are found not assigning due weightage to the degeneration process.PROMOTION: The insurance services depend on effective promotional measures. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch .

If the insurers are willing to take advantage of India’s large . The processing method should be easy and convenient to the customers. is one of the important areas to look into. Technology can either complement or supplement the channels of distribution cost effectively. Training. of customers efficiently and bring down overheads. 5. use of IT for efficiency. exhibitions. the nationalized insurers have a large reach and presence in India. IT & Data Warehousing will smoothen the process flow. organisation of conferences and seminars. Advertising and Publicity. development and strong relationships with intermediaries are the key areas to be kept under consideration. participation in fairs and festivals. They also have to be given proper training in order to create impulse buying. The speed and accuracy of payment is of great importance. The use of data warehousing management and mining will help to find out the profitability and potential of various customers product segments.managers and front line staff.PROCESS: The process should be customer friendly in insurance industry. 6. it is very important to use this resource efficiently in order to satisfy customers. Being a service industry which involves a high level of people interaction. Today. 7. Building a distribution network is very expensive and time consuming. both at the staff and agent level. Arranging Kirtans. It can also help to improve customer service levels. PHYSICAL DISTRIBUTION: Distribution is a key determinant of success for all insurance companies. rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders. incentive to policyholders are impersonal communication.PEOPLE: Understanding the customer better allows to design appropriate products. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT will help in servicing large no. Training the employees.

retailer like Marks & Spencer sells insurance products. Technology will not replace a distribution network though it will offer advantages like better customer service. Buyers prefer a face-to-face interaction and they place a high premium on brand names and reliability.population and reach a profitable mass of customers. bring down overheads and increase profitability. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. home and life insurance and pensions. The financial services industries have successfully used remote distribution channels such as telephone or internet so as to reach more customers. Initially insurance was looked upon as a complex product with a high advice and service component. not necessarily insurance companies. financial services firms provide an entire range of products including bank accounts. then new distribution avenues and alliances will be necessary. Today. half of the life insurance sales are made through banks. In Netherlands. are selling insurance. It relied on telephone sales and low pricing. A good example is UK insurer Direct Line. Today. various intermediaries. motor. in UK. In France. As the awareness increases. the product becomes simpler and they become off-the-shelf commodity products. . it is one of the largest motor insurance operator. avoid intermediaries. For example.

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