2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, 2018, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-13-4
The success of the company to preserve consumers consists of better understanding of consumer’s needs and theirs buying processes. In order to build a good business and profitable relationships with their customers, the insurance company should first analyze and understand customer needs and offer a product as a set of insurance services with greater value. When the insurance company differentiates its offer with superior value in the selected target markets, then it acquires a competitive advantage. However, achieving strong market positions require maximum professionalism in the performance and fulfillment of the promise to the customers. Namely, if the insurance company places its product on the market as an offer with the best quality and service, then it must transfer the promised quality and service. Therefore, the insurance company chooses a marketing offer that will be different from the marketing offer of the competition, in order to offer to their consumers’ greater value than the one offered by competitors.
In order to find the points of differentiation, the marketing department in the insurance company should investigate the behavior of consumers towards its products or insurance services. The insurance company that seriously approaches the relationship and communication with its customers finds different ways to differentiate in contact with customers.
Selection of the market is one of the most important decisions that the insurance company should make in building the development strategy. The selection of the market on which the company wants to perform conditions the process of its development is very important, and any prematurely taken steps can cause negative consequences in the future. Decisions to enter the market based on wrong assumptions, poorly executed and badly timed, may have serious negative consequences on the company’s development.
When an insurance company makes the decision to select a particular market to perform, management must consider all factors that affect that market. The company should make a detailed analysis, paying particular attention to the impact that such a choice will have on the development strategy.
competitive advantages, insurance companies, insurance services, insurance market
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