Advertising Strategy of Insurance Sector in Turkey
Marketing refers to the process by which a company or an entity's products and services
conduct their activities, such as trading, to convert money into profit. The strategy that is
applied until the product reaches its final consumer from its production is called marketing
strategy. To summarize, marketing is the act of turning a product into a sale by creating a
product for a market that is creating a new market.
The insurance sector is an important element that determines the level of development and
development of an individual. However, people in this sector in Turkey need to be conscious.
In addition, the insurance industry has a bad image. All these disadvantages indicate some
disadvantages in the insurance sector. In this article, the service sector, the insurance sector,
will be mentioned from the general theoretical point of view and from the perspective of a
specific country. The situation of the Turkish insurance industry, the problems in the sector
and the future of the industry will be emphasized. The Turkish insurance sector is defined by
large insurance companies as a promising and opportunity market. In addition to the
marketing of insurance, foreigners will be interested in the plans, developments in insurance
law and future plans of the sector.
We will talk about the history of the insurance sector in Turkey and the situation in Turkey.
Before the establishment of the Republic, the sector was managed by foreign companies.
Later, in the post-1980 period, the insurance sector grew and began to develop. By 2000, the
number of insurance companies reached 69. But after the 2001 crisis, there was a decline in
the sector. In the last 15 years, there has been a marked growth in the sector through the
ascension. Turkish insurance sector ranks 35th in the world. In terms of premium production,
Switzerland is at 5% while Turkey is at 1.6%. In late 2006, there were nearly 60 insurance
companies. Almost half of these companies sell insurance products. The other half serves on
issues such as credit, legal protection, agriculture. Premium production per capita in Turkey is
extremely low compared to developed countries with USD 93 in 2006 foreign exchange rate.
The biggest share in premium production is the accident. The accident is followed by fire, life
and health insurances. When we look at the figures up to 2006, it seems that income is
difficult to meet expenses. Despite these low figures, Turkey continues to attract foreign
companies due to the fact that the majority of the population is young people.
Foreign influence in the Turkish insurance sector is quite high. Currently, 17 companies in
the sector are in possession of foreign partnership or foreign capital. Foreign companies
constitute 35% of the market. Judging from the legal perspective, the Turkish insurance and
private pension market has gained a major solution to the problems with the adoption of the
Turkish Insurance Law No: 5684. The Turkish insurance sector continues to evolve in such
areas as technological infrastructure, legal environment, personnel qualifications and service
quality. If we look at the problems in the sector, the main problem in the sector is that the
market is narrower than developed countries. Despite legal obligation in 2006, most of the
residences and motor vehicles are not insured. One of the reasons for your underdevelopment
is unconsciousness on insurance. Deficiencies in the legislation and price-driven competition
are other problems. This sector is promising in terms of premium increase depending on
young population. In the future, the price-driven competition will be left to topics such as
productivity, profitability, continuity, product management, customer satisfaction. Currently,
the top 10 companies in the sector make up 65% of the sector. The Turkish insurance sector
was monopolistic, but with increased competition, small-scale companies would have to
withdraw from the market.
This section will talk about marketing in the insurance sector. Today's marketing strategy
does not establish long and healthy relationships with actors in the marketplace within the
framework of social and environmental responsibilities, taking into account the needs and
requirements of customers. The insurance sector suffers some difficulties in implementing the
marketing concept. Using the typical marketing mix (4Ps) classification, we can look more
closely at the insurance industry in our country.
There are numerous product types in the Turkish insurance sector. The most important ones
are automobile insurance and compulsory earthquake insurance. Although some insurance
brands are not well known, there are some deficiencies in branding. As in every sector,
product diversification is essential in line with customer needs. Product diversification should
be done following worldwide statistics. Special emphasis should be placed on R&D. For
existing issues such as the introduction of new regulations to increase product sales, necessary
relations with the existing management should be established.
Although price-driven competition is not in sight, the issue of pricing remains important.
The lack of analysis leads to the misunderstanding of the competence of the customers and the
inaccurate pricing of the cost factor. There are a lot of big foreign insurance companies in this
sector are trying to make a difference by entering new small-scale companies keeping prices
low. However, this situation causes imbalance in pricing.
Promotions are the strategies companies adopt to persuade a product to be purchased.
Integrated marketing communication (IMC) is a new and important method applied in
marketing. Four important issues for advertising, personal sales, sales promotion and
promotional promotion. Advertising is very important for the insurance industry. However,
when deceptive advertisements are seen, severe penalties are given. The personal sales issue
is not preferred because of the high cost. A company is obliged to prepare open policies that
all customers can understand. The insurance company must be sure that the customers are safe
for the company.
There are two types of sales in the insurance sector, direct and indirect. In direct
distribution, sales are made by those who have knowledge about the sales and customers.
Unlike other sectors, women make up half of the employees in the insurance sector. Indirect
distribution is usually done through intermediaries. Large European companies have a larger
share in retail sales. With the increasing use of the Internet, simple products such as
automobile insurance are sold on the internet. Online insurance sales have brought
competition within the market to a different dimension.
As a result, the new insurance law has opened the way for the development of the insurance
industry. Insurance companies should set a specific marketing perspective to get rid of some
problems in distribution. The importance given to branding and positioning should be
increased. In this way, more customer-focused products can be produced and customer loyalty
can be increased. Turkish insurance companies should focus on pricing, giving up
competition and better service. Compulsory insurance should be disseminated by the
governments and the customers should be conscious. Innovative sales methods such as online
sales and banking should be used. The bad image of the insurance companies should be
corrected by giving importance to promotion.
References
https://www.academia.edu/16924420/Insurance_Marketing_in_Turkey
http://www.jlt.com.tr/upload/files/Turkish_Insurance_Market_Outlook_2016-17.pdf
http://smallbusiness.chron.com/marketing-strategies-insurance-companies-1414.html
KOTLER, P. : Marketing Management, Prentice Hall, NJ, USA, 1997
Muhammed Berke Arslantay / 070140240