Letter of the month - Marketing should target carefully

The May 2006 issue of Professional Broking reported two major industry figures' comments advising how brokers should improve marketing (Robert Hiscox on p7 and Oscar Holmes on p9).

One expressed surprise at the lack of marketing, the other urged focus on the use of marketing. Insurance marketing relies on such figureheads promoting the industry to customers. Their choice to publicly offer criticism to brokers within the industry suggests a substantial divide between brokers' and insurers' marketing efforts, and great confidence in their own, and fellow insurers', efforts.

I neither believe such a divide exists nor that such confidence is well founded.

Brokers' marketing is geared to their target customers and may only sometimes coincide with any one insurer's target customers. The methods adopted tend to be highly focused because the target is identified and because only that target needs to receive the message.

Instead of an apparent "lack of marketing" there is a difference in the promotional practices, with a preference to rely on more personal mediums than expensive mass audience television adverts.

Marketing to an identified audience with the aim of delivering products and services they want, is precisely what brokers do, implicitly or explicitly. Some are better at it than others and some have far more resources than others.

Insurers' marketing fits with their own strategy and resources, occasionally geared to supporting select brokers. Often, insurers' marketing is very different, sometimes geared to direct selling, cutting out the broker. The confusion amongst our industry's customers is plain to see and is partly the cause of much wasted marketing effort.

While many of us have much to learn and can benefit from constructive criticism it would be much more helpful if the public effort of prominent insurance people could be aimed at securing public confidence in our industry.

Barry Wicks

Group marketing manager,

RHG Corporate Insurance Brokers.