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EFFECT OF PERSONAL SELLING IN THE MARKETING OF INSURANCE SERVICES IN ENUGU METROPOLITAN

Abstract

The research aims at looking at the impact of personal selling in marketing of insurance business which focuses on NICON insurance company in Enugu metropolis. The researcher aimed at finding the ideas of personal selling in the distribution of insurance services. It requires finding prospects, convincing them to buy and keeping customers satisfied. In chapter one, the researcher underscores the concept of personal selling and its attendant problems which cotter urgent attention and corrective measures on which the highlight the significance scope purpose and limitation of the study for maximum reviewed some related works of literature which formed this backbone of this study to enable the reader to know the steps taken in making the finding here he unraveled the measures at which an organization uses in locating the target customers and the more expanded ways of satisfying their needs. The third chapter discussed the use of data (primary and secondary) in making his findings which he through into limelight the population of study its sample size determination which will enable readers to understand the responses to the questionnaire and interviews. In the fourth chapter, the general analysis of data underscores the general finding of the work with the test of hypothesis. Finally, he packaged the general summary of the major finding and gave suggestions to those who may embark on a further study on the topic

CHAPTER ONE

INTRODUCTION

1.1Background of the Study

Generally, life is full of risk and this therefore become important that it must be recognizing of meaningful future success is to be attained. In family there is risk exists and in school, risk exists and in running the affairs of government risk is full.

 

What about business, it is even more pronounced. These under come the need to study how best to reduce if not eliminate the how best to reduce if not eliminate the incursion or on straight of risk in our everyday activities

Personal selling in the marketing of insurance services has helped in educating the masses about the insurance programme and its products and how to go about its premium. it has become practically important to understand the concept and discovered how best to use person selling to realize the objectives of Nicon insurance company. Insurance therefore can define as a prevision of made to cover risk future loses.

 

In the case of insurance business it seems as the payment of a sum of money (premium) by one person or body of person (called insured) to another (the insurer) on the understanding that in certain specialize circumstances may loses suffered by the first person (insured) will be made good by the second (insurer) they further stated that insurance is a contract between two parties for the payment of a sum of money or for some corresponding benefit (compensation) such as the re-building of a house or repairing of vehicle to become due in the happening on event already specified.

 

Generally, insurance is seen as a pooling risk in the sense that insurance payment of premium from companies and individuals that insured some level of risk. Insurance business involves risk, then risk deals with the chance accuracy of loss in the future some see it as the uncertainty of loss this uncertainty of can occurs in diverse ways first, he does not know whether the said risk will occur and time that will occur secondly, he cannot explain in advance the degree of such loss if it in the long run occur. Finally, supporting such part or department of organization that will experience such losses.

 

Insurance business is a business which does not sell tangible items like motor car the insuring etc. But exist basically to provide against insuring public with a system of projection against financial losses from accelerate and unexpected event. The use of personal selling in an insurance business is of utmost necessity because of the level of the knowledge of importance of insurance in our society. This personal selling becomes a catalyst for achieving this, the essence of insurance business is to bring successor and relief to people who may insure losses or damages arising from unexpected accidence. Therefore, to ensure effective marketing of product, the use of personal selling remain the most effective and efficient means to achieving it. Thus, therefore emphasis the need usefulness of personal selling in insurance business.

 

The use of personal selling in the insurance as as a result of the difficulty in convincing consumers to buy their product after advertising. personal selling here is one promotional mix, the other element of the mix and advertising sales promotion, public relation. It is said to be any form of communication damaged to inform persuade venue or educate its potential customers about the product, its brand name, package design, sales force team, mass medical sales promotion promotional there presentation etc.

The need for promotional era product establishment or image, creation, communication of product feature and performance with other product educating customer and method of use of usage etc.

Personal selling is promo-tool used for achieving attention and spontaneous purchase on oval presentation in conservation with one more prospective purchase for the purpose of making sales (Obesie 2003, 151), it is the face –face communication of information from a seller to prospective buyers. Busch and Mouston (1985 626) personal selling is therefore used by insurance company in order to work on the customers because customer have normal tendency to resist buying, mostly those that are not essential for their needs on when the message of the advertise product is not clear or understood.

So at this points, personal selling being a direct communication in order to make substantial effort to induce the prospect and to stimulate their interest to like the product and because in the company’s product by directly educating the customer on the usefulness of the product as well as they various terms used by inductance companies while lead to the innovation and revolutionized stage the use of personal selling as a promotional mix entail proper education of the customer on the use of need for the purchase of insurance services. This is why it is said to be informed and persuasive interchange designed to obtain a transaction.

Personal selling as a promotional mix is an aspect of marketing activities which are indispensable tool for profit making in the insurance business. In view of these analysis, Nicon insurance applies personal selling to optimize its corporate objective through reaching out to their target customer with very promotional strategies which will appeal to their prospects. Before now here use to be low patronage of insurance business by the customer due to large insurance by the public, unskilled insurance salesman channel member. Lack of the necessary where withal to reach act to the customer and how them into buying. But there has been a significance increase in the rate of involvement of people into insurance due to broad knowledge of the importance of the business Nicon has created an enabling environment for consumer to confide on their product.

1.2   History of the Firm

Nicon insurance Plc. was incorporated on April 2, 1965 to underwrite non-life class of insurance business as the Nigeria insurance company limited following the merger of the Northern assurance company limited and while cross insurance companies limited both oversees operation October 1 1965. In 1990 the company was renamed” the United Nigeria insurance company Plc. following the divestment of government interest in the company under  the Nicon insurance limited, one African leading insurance was fully owned by the federal government of Nigeria.

The corporation was established by decree No. 22 of 1969 (now cap 263 law of 1990 as amended with the main objective of assisting in the development of the insurance industry in Nigeria and specifically to ensure that federal government assets and property are fully protected by way of insurance. However, consequent upon the commencement of the second phase of the federal government privatization policy Nicon was privatize in December, 2005, with as asset based on N52. 4bn gathered over a 40 years period of operation 88 branches and six regional offices. It is therefore modest to classify Nicon as a cocose in the insurance and other financial services sector.

 

Nicon Insurance and its Significance

The Industry and the National at Large

Nicon stands tall in insurance market it is IT driven in its operation, highly vibrant with experienced workforce. Special nationwide with offices located in the 36 states across the six geopolitical zones in Nigeria, vendering insurance and financial services and provide employment to the teaming population most companies remained costose but Nicon insurance continues to wax stranger in the midst of the wild and murky water of business uncertainties in a fragile economy such as ones.

 

1.3   Statement of the Problem

The use of personal selling in the insurance services is as result of the difficulty in convincing consumers to buy their product after advertising.

These personal selling becomes a catalyst for achieving this the essence of insurance business is to bring succored relief to people who may insurance losses or damages arising from unexpected accidence therefore, to ensure effective marketing product, the use of personal selling remain the most effective and efficient means to achieving it.

 

Here are some of benefits of insurance

  • It creates employment
  • It provides loss prevention
  • It increases marginal utility of assets

 

 

1.4    Objectives of the Study

The main purpose of this study is to generally appraise the impact of personal selling in the marketing of insurance policies by Nicon insurance company. The other specific objective are as follow.

  • To generally appraise the personal selling programme of Nicon insurance company.
  • To identify the problems Nicon insurance encounter in using personal selling as means of marketing its insurance policy.
  • To establish the relationship between effective personal selling programmes or strategies of Nicon insurance with increase sales volume
  • To determine how effective personal selling programmes or strategies will improve customers services in Nicon and also achieve better customer satisfaction.
  • To identify defects in the current periods selling programme of Nicon.

 

1.5   Research Questions

The study questionnaire and interview revolve around the following research questions.

  • Are customers better satisfied with personal selling programmes and strategies by Nicon insurance company
  • How best could personal selling effort by Nicon insurance translate to an increase sales volume
  • What are the major defects affecting the personal selling programmes of the company
  • Are customers the major challenges of the company in marketing their insurance policies and how they (customer) do reacting to these policies?
  • Are the variables that affect the company’s effectiveness of personal selling controllable.

 

 

 

1.6 Significance of the Study

The benefits of the study can be discussed under the following:

To the NICON, the research the general public and intending future researcher. NICO insurance Plc, like every other research spends on researching in order to rate profits.

Therefore, this study will be of great benefit to the insurance company, in that it would inform them more about the reaction of their target market towards their research activities and in turn bring a profitable return for management to continue to improve of it. The research agency the more it can understand how the research has created work on the tagged audience, the better will its planning and decisions be in future.

 

 

 

Similarly to the industry (the service industry in this case) which responsible for spending over N1 billion annually on behalf of researcher, has an individual and collective responsibility to improve the level of prediction for its recommendations.

 

Finally, this study would help the researcher and the reader to appropriately appreciate the use and importance of proper research in introducing and increasing profit and services rendered.

 

1.7   Scope of the Study

The study takes a look into the marketing research activities of Nicon firms in the service industry. Because of time and other factors involves, the research was limited to the study of a particular insurance firm known as Nicon insurance corporation Plc Enugu.

It examines the conduct of personal selling in the selling processes, the condition for using personal selling and the goals of personal selling to the insurance company.

1.8  Limitation of Study

The study met with the following country into as the research understand it.

  • The researcher also had shortage of finance in the course of this research
  • Nonchalant attitude of the respondents
  • The researcher also face shortage of time frame that hindered / him from gathering enough information needed for the success of the researcher
  • Lack of satisfied as such the researcher did not make qualitative companion in competency of some of the researchers

 

1.9    Definition Of Terms

Insurance: A contract made by a company to provide a guarantee of computerization for loss, damages, illness, death etc.

In return for regular payment called premium.

Production: The act of raising or activities intended to increase the sale of a product or services.

Marketing: A possible process of negotiation which could be at a meeting place or by telephone or by correspondence.

Product: A bundle of physical and psychological satisfaction that a buyer derives from a product purchases.

Personal selling: A seller production presentation conducted on a person to person basis with the buyer it is direct face to face form of promotion for the purpose of making sales.

Impact: The somebody or something.

 

Analysis: The detailed study or examination of something in order to understand more about the result of the study.

 

EFFECT OF PERSONAL SELLING IN THE MARKETING OF INSURANCE SERVICES IN ENUGU METROPOLITAN

Attached Files

EFFECT OF PERSONAL SELLING IN THE MARKETING OF INSURANCE SERVICES IN ENUGU METROPOLITAN.docx
DESIGN AND CONSTRUCTION SECURITY CODE LOCK
CHALLENGES TO THE IMPLEMENTATION OF THE PUBLIC PROCUREMENT ACT, 2003 (ACT 663) AT STATE OWNED ENTERPRISES (A CASE STUDY OF GHANA PORTS AND HARBOURS AUTHORITY)

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