1、1Analysis on the Market Positioning and Sales of Insurance ProductsAbstract. Along with the development of the times, the competition at the insurance market is getting fiercer and fiercer. Because of the differences in capital strength, marketing ability and marketing channels, all sorts of insuran
2、ce companies are different in the competition ability. To occupy a place in the fierce market competition, it is necessary for the insurance companies to accurately position their own insurance products and also take effective sales strategies. This is mainly discussed in this paper. Hopefully, enli
3、ghtenment can be produced on the counterparts. Key words: Insurance Enterprises; Market Positioning; Sales Strategy Introduction As is known to all, the insurance market is a place full of fierce competition. Because the business scale, capital strength, product development ability, marketing abilit
4、y and marketing channels of insurance companies are different, any insurance company is unable to compete with any other insurance 2company. An insurance company is able to survive in the competitive market only if it can accurately find a position and take appropriate marketing strategies in the fi
5、erce competitions, and then a development can be sought. However, to participate in the competitions and implement correct sales, it is necessary for insurance companies to know themselves as well as the enemies, and then they can fight a hundred battles with no danger of defeat. Thus, the premise o
6、f choosing an insurance sales strategy is to know well its own competitive environment as well as the competitors, and also make the reasonable positioning of the insurance products, so that an invincible position will be always occupied in the fierce market competitions. In this paper, the market p
7、ositioning of insurance products is first analyzed, and then a set of sales strategies are proposed in a planned way. Therefore, this paper is of certain practical significance and guiding significance. The Market Positioning of Insurance Products Market positioning can show the competition relation
8、ship of an insurance product or an insurance company with similar products or enterprises. The different ways of positioning will promote the different competitive situations. Specifically, the several ways of market positioning in the following can be 3concluded. Positioning the Market in the Way o
9、f Avoiding the Powerful Competitors. This is a market positioning way of avoiding the powerful competitors, so as to fill the market blanks through the use of other strategies. Its advantage is to form a unique local advantage at the new market where the products are only available in the hands of f
10、ewer enterprises, and thus the enterprises can quickly and stably survive at this market and also build up a brand image among the consumers. Because of the small market risks, this positioning way owns a higher success rate and is often used by most enterprises. However, the blank market segments a
11、re the places with the greatest difficulties. For example, the insurance products and services, which were offered at the “insurance supermarket“ launched by China Peoples Insurance Company in 2002, were very special for customers to a great extent and difficult to replace; for the domestic and fore
12、ign competitors in the same industry, the products and services at the “supermarket“ are difficult to imitate, or the cost of the imitation of these products and services is too high. The “insurance supermarket“ is an assembly place where excellent products as well as all kinds of insurance products
13、 with a broad adaptability are integrated, 4and therefore it features an obvious nature of filling in the blanks. Advantage Positioning. The so-called advantage positioning refers to a positioning way used by an insurance company to occupy a place at the market through the full play to its own advan
14、tages at the selected target market. This positioning way proposes the following requirements: (1) an insurance company should find its own advantages through the comparison with competitors; (2) know well what the market demands through investigation and research; (3) find the best combining point
15、with competitors, namely correctly choosing the competitive advantages; (4) be good at using various ways such as advertising or publicity agents for promoting its own advantages. The effective combination of the subjective advantages with the objective demands is the best positioning of an insuranc
16、e company. For example, the annuity market of Chinas enterprises has attracted the attention from many kinds of financial companies such as life insurance companies, banks, trust companies, fund companies, securities firms, and finance companies. However, compared with competitors, the annuity busin
17、ess of the enterprises in the life insurance industry owns multiple advantages that cant be available in many other financial institutions. Therefore, it is necessary for life 5insurance companies to give full play to their own advantages, so as to research and develop the products with unique chara
18、cteristics. Then, they will certainly make a success at the annuity market and find the best market positioning. Positioning the Market in the Way of Following the Powerful Competitors. The positioning by following the powerful competitors is a way used by an insurance company to compete with the mo
19、st powerful competitors, so as to put on “a rival show“. Obviously, this is a dangerous tactic way. However, some enterprises think that this is a feasible positioning attempt which can encourage them to exert themselves, and they can acquire a huge market advantage once a success is made. In the us
20、e of this positioning way, it is necessary for enterprises to clearly evaluate their own strength. Because this positioning way features great risks, the general companies will keep a prudent attitude toward its use. How to Sell Insurance Products in Combination with Market Positioning After the bas
21、ic strategies of insurance products market positioning are clearly determined, how should the insurance companies choose a sales method suitable for their own products? This is a very key point, and has a direct tie with the 6survival of the insurance companies. To keep advantageous in the fierce co
22、mpetitions, it is necessary for the insurance companies to take several sales methods as follows. Implementing the Sales by Aiming at the Market Focuses. To achieve the very effective sales, the most important for insurance companies is to orient at market, find the “focuses“ in the economic life th
23、rough investigation and researches, concentrate their technical advantages, and constantly offer new products for sales. This sales way always starting from the actual needs can ensure the high accuracy of the rapid sales, and subsequently can constantly improve the market share and competitiveness
24、of the companies. For example, in recent years, with the development of the electric power industry in our country, the third-party injuries and property damages, which are caused by the electric power operation accidents because of short power supply circuit, open circuit, wrong line and unqualifie
25、d quality, often happen; the rapid development of the catering and entertainment industries also have promoted the food poisoning accidents caused by the unclean food of catering units to occur frequently. According to the demands of the market, some insurance companies have developed and designed “
26、power supply liability insurance“ and “food place liability 7insurance“ in a planned way. Also, insurance companies can promote the power supply units and catering units to enhance the management concept in accordance with law and increase the management level through the use of their unique profess
27、ional risk management advantages, so that a protection umbrella is opened for the vast number of consumers. The insurance product sales starting from the actual conditions owns a solid foundation in reality. Implementing the Sales by Tightly Following the Industrial Policy Adjustment of the State. T
28、he development of the insurance industry is closely related with the development of the national economy. The trends of the states industrial policy adjustment and economic system reform have played a guiding role in the sales of the insurance products. Therefore, it is necessary for insurance compa
29、nies to pay close attention to the dynamics of this aspect and also timely develop the corresponding new insurance products. For example, along with the unceasing adjustment of the industrial structure in China, the proportion of the third industry in GDP is increasingly enlarged in recent years, an
30、d also the reforms of the medical and health, real estate, and tourism within the third industry are continuously deepened. The frequent occurrence of medical 8accidents and medical errors as well as the increasingly rising claim amounts of the patients in accidents has successively given rise to th
31、e continuous increase of medical disputes, and therefore the participation in medical liability insurance is a good way to solve medical disputes. Some insurance companies timely develop the medical liability insurance, which is a new insurance product dedicated to this risk. Also, in recent years,
32、the dispute events caused by the quality of construction project designs are exposed from time to time, and therefore some insurance companies have first offered the “construction project design liability insurance“ after knowing that the construction department of the state has changed the existing
33、 design quality accident compensation measures and made new compensation provisions. This insurance guarantees the liability of the insurant (designer) for the construction projects material loss and the personal casualty and property loss of the third party because of the project quality accidents
34、caused by design negligence and fault. “Insurance of travel agent liability“ is also a new insurance product offered by insurance companies, and its design and development give a full expression to the needs of adapting to the national industrial policy adjustment of the state. Implementing 9the Sal
35、es by Orienting at the International Market. In the background of the insurance market to develop toward openness and international market, the integration of the sales of any insurance products with the international market should be taken into consideration. The products, only starting from the ac
36、tual national conditions and also keeping pace with the international market, can meet the needs of the consumers, and subsequently can be sold without difficulties. Therefore, it is necessary for insurance companies to orient at the international market and actively absorb the advanced technologies
37、 of the international insurance market for developing new products, and thus they can occupy an invincible position in the international competition. For example, the professional liability insurances including lawyers and certified public accountants, which are offered by an insurance company in Ch
38、ina on the basis of introducing foreign insurance clauses and rating methods and combining with Chinese laws and customers needs, are to offer guarantees to the liability of lawyers and certified public accountants for the economic loss of consignors or other interested parties because of the neglig
39、ence and fault in work. These product sales reflecting the “compatibility“ will promote the new products to obtain a 10very broad development prospect in the international competition. Implementing the Sales within the Scope Allowed by Laws. Insurance is a special financial product. To ensure insura
40、nce companies an enough solvency, a series of regulatory requirements have been proposed by insurance supervision departments on the management activities of insurance companies in accordance with laws. Therefore, in the sales of insurance products, it is necessary to consider the legal environment
41、and national regulatory requirements. That is, market positioning should be in line with the standard requirements, and the sales of these products can be feasible. Conclusion The development of the insurance industry has a close tie with the daily life of everyone. Therefore, it is necessary for in
42、surance companies to reasonably position insurance products and also sell them according to the market demands, so that a due contribution can be made to the improvement of peoples living standards. References 1 Tiejun Wu. Discussion on Insurance Marketing Strategy J. Modern Economic Information, 2009 (11).
