Marketing has been adopted by the significant number of organizations with the aim of increasing their performance. Adoption of marketing incentives is characterized by the development of essential advertising strategies to help the organization attract more customers in the market. Advertisement has been adopted by various organization promote their products and it largely refers to the communication for marketing that is used to persuade and manipulate the audience to take some new action regarding the consumption of the new brands. Effective advertising is the strategy used for the development of ideal product development and it enhances increased performance of the organization by impacting on the development of new customers for the organization.
As the leading firm that delivers insurance policies to the markets, AAMI has gained wider scope of customers. This is essential because it increases the earnings of the organization. In recognition of the developmental efforts, the company was identified as the best insurer of the year for two consecutive years of 2011 and 2012 (Rosengren & Dahlén, 2013). Despite the advents o these development and market establishment, the management of the company have expressed concerns for the development of critical advertising incentives to enable the company develop incentives for attracting and retaining new customers. The records from AAMI has pointed out the management seeks to venture in the promotion of car insurance as the main objective for the company (Swaminathan & Kent, 2013). With the change in the primary product, there is the increasing need for the company to initiate the conduction of ideal advertising because this will help in the establishment of product awareness and further establish and increase in the earnings of the company.
Market segmentation and identification of the customers is an essential attribute that marketers must understand because it helps in the capacity of generating advertisements. The establishment of this advertisement helps in the liberation of increased participation and further increases the development of advertisements. Market segmentation is essential because it result in the grouping of the consumers in to various groups based on their shared interests. This is essential for the marketing company because it enables them to convey information about the product with ease of access to the targeted consumers (Rosengren & Dahlén, 2013). In the context of AAMI, the market has been segmented to the difference sin age group. In the development of the ideal advertising strategy, the management seeks to target new customers of the age group 18-30 years for the market of their new insurance product. Even though advertisement is essential for the enhancement of performance, it is highly essential for the marketing team to ensure that strong USPs is established.
Unique selling position (USPs)
The development of strong unique selling position is extremely critical for the business organization. This attribute is essential because it determines the market performance of the product and the entire assortment of the business organization. Certainly, it is important for the companies to ascertain unique selling position in the market because this will highly differentiate the product from those of other competitors. The basis for the establishment of the strong USPs is that the market is composed of significant number of sellers with the same commodities and services. These sellers are generally identified as competitors and compliments products. Therefore, it is extremely for the organization to develop attributes of competitive advantage to enable them standout from the rest of the companies.
The attainance of competitive advantage is essential for the organization and results in the aspect of increased product recognition. The conduction of survey within the Australian market has revealed the increase in the participation by various firms like insurance Australian group, Australian insurance alliance and Australian alliance. With the increase in the operations of these firms, AAMI has developed essential factors in the market that enhances the attraction and retention of new customers (Swaminathan & Kent, 2013). In view of this, the manager’s sentiment is justified because the establishment of strong USP results in the development of critically market dominance thereby enhancing the establishment of competitive advantage.
Objectives of the advertisement
Even though the management of AAMI considers the development of anew advertisement, it is highly essential to note that the creation of objectives is paramount. The establishment of the advertisement is based on the development of goals and objectives that will be achieved by the organization. The key strategies surrounding the development of this advert are considered as the aspect of increasing the degree of issuance of car insurance to the citizens of between the ages of 18- 30years. Analysis conducted to reveal the attributes of advertisement operations in the company (Vatjanapukka, 2004). Further information has revealed that advertisement position seems to have solid memory structures that highlight its levels of importance. It is essential for the advertising team to establish ideal adverts that will enhance the establishment of solid memory on the consumers. Advertising memory is essential as it enhance the change sin the perception of the consumers. Therefore, it is essential for the marketing team in the AAMI to understand the complexities of the market because this will help them in building critical advertisement for the age group specified.
The basis for the support of this recommendation is the consideration of the awareness concept of the advertisement. Significant number of customers in the market is aware of the existence of this product and probably majorities have utilized this insurance policy (Vatjanapukka, 2004). In this regard, the establishment of the new advertising campaign should seek the attribute of creating more awareness of the product by describing a simple message to offer name recognition. The brand name of the company should be made the focal point of the advertisement since it will have an impact on the customers. The recommendation to preset this advertisement to the market is considered as an essential aspect because it will impact on the market by increasing the output and performance. Therefore, the recommendation is justified as an essential factor that will increase the performance of the product given the targeted market.
The consideration reflecting the look and feel of the campaign concerns the incorporation of the factors of commissioning a great advertisement. The advertisement offered by AAMI to the market is viewed towards the promotion of car insurance policy to the segment of the market ages of between 18-30. Given that the consumers already have information concerning the product, is ideal for the marketers to identify the feel of the advert (Olsen, 2004). Unfavorable feel of the advertisement can also be detected through the analysis of the reactions from the audience. If the audience looks unfavorably towards the product to the communicator has to find the reasons for the cause of unfavorability. The best aspect to resolving such disparities involves the development of increased quality. The advertisement should highlight the quality and best point s about the car insurance by portraying unique selling position of the product (Olsen, 2004). In this case, it is recommended that the advertisement the critical and unique factors that are not offered by the competitors. These factors include car, travel, home, life and income protection covers. In reality, the aspect of offering these unique services is essential and enhances the performance of viability of the insurance cover.
The development of the insurance concerning the car insurance cover represents a tremendous development and movement towards increased future performance. Even though this insurance policy promotion is ideal and very unique in the market, the choice of the market segment for the target is characterized by the disparities (Morteza Azimzadeh et al, 2013). According to my opinion as the experienced marketer, the age group targeted by the advertisement is not ideal because it largely contributes of the higher percentage of dependant. I do not agree with the choice of market segment for the target of introducing the advertisement recommendation.
Even though this market segment chosen is aware of the product, the conduction of this advertisement campaign is not likely to yield new customers because the targeted age group and market segment have limited capacity to make car purchases. This is critical and represents an existing disparity in the market. Therefore, I would gladly wish to alter the existing set of the advertisement by proposing the change o the market segments to include the age group between 25 – 40 years. This segment of the market is critical and practical because higher percentage of the consumers in this market segment are prospective customers and likely to purchase the commodity being advertised.
The focus in to the recent development received in the global perspective has helped in the realization of the future attributes advertising. The advertising strategy initiated by AAMI is likely to changing in the future because of the changing complexities in the advertising world. Indeed, advertisement has witnessed radical change based on the essential of communication and the language used in advertisement has also changed significantly (Morteza Azimzadeh et al, 2013). Despite the future change in advertising, the demonstration of USPs has continued to be accorded significant validation. This is because competition has increased in the market and there is concern for various organizations like AAMI to develop ideal competitive advantage. The consideration of adopting competitive advantage has helped in the realization of increased performance because it will help the marketer sin formulating critical, marketing incentives of the insurance policies.
Further information depicting future advertising development is continued development of the strong theory. This theory of advertising is based on the fact that increase in the consumer’s knowledge about the product leads to change in attitude and preference. Therefore, the aspect of offering more information about the product helps in the persuasion of more consumers. This is the motive for the engagement of insurance policies offered by AAMI (Olsen, 2004). In this regard, the future performance of the company is based on the current delivery of the information.
Further criticism of the proposed advertisement by AAMI concerns the budget. Generally, an advertising budget is the sum total of the amount of money that the company is willing to spend on the advertisement of its products. One of the important factor that should be considered during the preparation of the advertisement budge it’s the existence of the trade offs between spending one additional advertisement dollar and the amount that will be generated with that same dollar. In this regard, the pro[posed budget for the advertisement is relatively low for the insurance budget. given that that the company has conducted an awareness program, it is ideal for the company to increase the amount of money allocated for the budget to ensure that the budget is beneficial. In this regard, my recommendation for the company is to increase the amount allocated for the conduction of budget. The basis for the establishment of the advertisement cost is highlighted as follows
1. Determine how big is the businessv
2. The yearly income generated by the company
3. The aims and objectives of setting the advertisement and this should include the proposed income revenue from the advertisement
4. Finally, establish the amount the competitors are spending on their advertisements
In view of the above advertisement provisions, it is clear that the budget allocated for the condition of market advertisement is minimally low and does not compare with competitors figure sin the market. Given the media accounts for more than 10%, the revenue earned by the advertising agency is minimal compared with the expected income to be generated by the advertisement in terms of policy sales and new member registrations (Vatjanapukka, 2004).
Finally, the aspect of advertising has gained recognition amongst marketers. Advertising involves the usage of critical theories that are targeted towards persuading and convincing consumers to make purchases. The consideration of AAMI case has highlighted that advertising is an essential component of sale and serve the purpose of driving new customers for the organization. Furthermore, it is extremely essential for the marketers to consider various precisions of advertising during establishment of advertisement. In this regard, the proposed advertisement prepared by the marketing team is characterized by flaws and should be adequately corrected to change the market segment and budget amongst others.
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Olsen, C., 2004. Maximising brand recognition. Information Outlook 8 (1), 43.
Rosengren, S., & Dahlén, M. (2013). Judging a Magazine by Its Advertising: Exploring the Effects of Advertising Content on Perceptions of a Media Vehicle. Journal Of Advertising Research, 53(1), 61-70. doi:10.2501/JAR-53-1-061-070
Swaminathan, S., & Kent, R. (2013). Second-by-Second Analysis of Advertising Exposure in TV Pods: The Dynamics of Position, Length, and Timing. Journal Of Advertising Research, 53(1), 91-100. doi:10.2501/JAR-53-1-091-100
Vatjanapukka, V. (2004). Relationship between consumer knowledge, prescription drug advertising exposure and attitudes towards direct-to-consumer prescription drug advertising. International Journal Of Medical Marketing, 4(4), 350-360.