The prospective markets for the household insurance products are also promising to the company. The company being the one that is specialized in auto insurance they have a very good market share and satisfied customers.
Under internal audit concept, it is necessary to evaluate that whether PGI should have adequate resources for involving the new house hold insurance business. For the purpose of expanding the existing business, every business should require appropriate resources, like material, men, and money. Rather than these, effective marketing is also crucial.
Market audit of the company throws light on the current market share of the company and the future opportunities for the company in the Market. Analysis of the case shows that PGI is the market leader in the Auto insurance sector. In 2006 the company had a total policy strength of 5, 66,000. And also the company had gained an annual growth rate of 6.2%. But even though the company has the best policy strength the growth rate of the company is lower when compared to its competitor. Blair Patterson has the highest growth rate which is 82.5% and Cherry Ash has a growth rate of 25% while the growth rate is only 6.2% for PGI. For the purpose of introducing house hold insurance, it is necessary for PGI to undertake various marketing strategies. Among them Porter's five force model is significant. supplier Power, rivalry, threat of substitutes, buyer power, barriers to entry. While introducing new house hold insurance by PGI, it is essential to concentrate about the competitors, substitute's etc. Rather than this, it is also necessary to consider the macro environment factors like political, economic, social, technological, ecological and legal. Political Consist of legislation, regulation of transfer for capital and labour, and stability of political system. Economical consist of development of relevant economic indicators, business cycles, unemployment, and industry structures. Socio- Cultural consists of population and demographics and customer behaviour. Technological consist of life cycle phases of products and research and development expenses.
Marketing Structure for Company
Marketing is distinct in the Dictionary of modern English (1995:872) as the action to try to put up for sale a company's goods by advertising, by attractive packages. Consequently I can say advertising is a way companies sell their goods to the neighbourhood that needs them or customers. The following are a number of of the terms old in marketing covering, selling, advertising, endorsement of products and many additional, but these are the conditions I'm going to use a great deal on my essay. The paper will also be based on publicity, as it is fraction of advertising.
According to the expert analysis advertising is merely an economic action that is used by advertisers for the reason of selling or hire customer's conscious of their military. To add on that I got a meaning of the word publicity from Dade (1989:1) and reads that "a paid statement future to provide information about a manufactured goods or service or to convince people to perform in a sure way." Some people too argued that