26 avril 2017 SAAFI.FR

Marketing strategy for Takaful Institutions in Europe

The marketing approach has to be based on a triple vision: cultural, organizational and strategic.

Marketing must reflect the institution’s atmosphere; it must have the purpose of maintaining coherence of actions and ensure veracity of speech.

As in all key areas of the institutions, the commitment of leaders is essential. Marketing can be defined as the effort to adapt organizations to competitive markets, in order to influence the behavior of the public on which they depend, by an offer whose perceived value is higher than competitors.

Marketing is therefore a customer-oriented mindset but also profitability. It is the set of techniques that enable the meeting of products and services intended to satisfy the expectations and needs of consumers.

Today, the power of customers is growing, thanks to the development of blogs, forums and social networks. It is possible to inquire before a purchase, to testify as a result of good or bad experiences, to propose improvements products, etc. The institutions must learn to take this into account in a transparent and respectful manner.

The roles of marketing in Takaful are multiple:

  • At the institution’s highest strategic level;
  • At all levels of the institution as market scout;
  • At the operational level as sales accelerator;
  • On the Internet for the animation of networks.

Key success factors of Takaful on the European market

  • Take into account technical and management constraints without cannibalizing marketing;
  • Integrate the network dimension into product design and marketing actions;
  • Addressing brand communication and communication in synergy;
  • Integrate the Internet and ICT dimension into all strata of the institution;
  • Ensure a good coherence between the marketing actions, the environment of the institution;
  • Ensure a good mix and consistency over time of marketing actions
  • ricing policy determination regarding existing offers on the market

Pricing policy determination regarding existing offers on the market

In insurance the price is a part of the product offer, the price must always be competitive and its determination is carried out according to a two-fold approach:

  • Objective, determined by actuaries and lawyers on the basis of technical characteristics: technical components, performance and associated services;
  • Subjective determined by consumer perception: product concept, positioning and brand.

The price factor is decisive in order to capture the shares of this concentrated market. Demand is elastic and low switching costs allow consumers to easily change insurance. The offer may also try to play on other parameters such as service, quality and highlight its religious compliance through awareness campaigns.

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