Farmers Insurance is an American insurance group of automobiles, homes, and small businesses, and also provides other insurance and financial services products. Farmers Insurance is very popular with consumers who want the experience of working with an agent to handle all of their insurance needs. These consumers are also generally considered confident planners because these consumers care about their insurance and protecting their assets. These consumers are also financially savvy, between the ages of 35 – 45 or older, more affluent, married, and 90% of these consumers own a home. Just like market research was used to determine the information about the demographics of Farmers consumers, market research is essential to the companies long term success (Fletcher, 2013). The five key reasons why companies should use market research is because it centers the business on your customers, it keeps you focused, it allows you to pursue the most lucrative growth opportunities, it keeps you relevant and future-oriented, and finally it improves decision-making capabilities and reduces risk (Fletcher, 2013).
For Farmers the research strategy the company should focus on is remaining relevant and future-oriented. By conducting regular research with consumers will allow Farmers to ensure they are adapting and evolving in order to meet the long-term needs of their consumers. In today’s society technology is involved in just about everything. As a result, Farmers should start looking at more efficient and advanced ways their customers can file claims, talk with their agents, etc. Some of the ways Farmers can do this would be to conduct market research on the use of telematics. This is a rapidly growing form of getting auto insurance quotes, and paying a premium that is based on that particular consumer’s driving habits. This allows for more personalized insurance, and would be a great market for Farmers to explore since the company is already focused on creating a more personalized experience with the use of Farmers agents. In addition, Farmers should explore the market of adding apps or programs to vehicles similar to products like OnStar. This way when a Farmers client is in a car accident the app will automatically detect the crash and would be connected with a person from the call center who monitors this program. The person from the call center would be able to call for emergency responders, and could connect the client to their Farmers agent.
Conducting market research for these types of products would ensure that Farmers is able to remain relevant and future-oriented, and will allow the company to innovate with impact. For every company, innovation is a key element for any brand to grow (Fletcher, 2013). As a result, this could also allow the company to engage in better decision-making capabilities which will reduce their risk of exploring markets that may not provide the benefits they are searching for. Performing this type of research can allow Farmers to focus their innovation efforts in areas that will provide the highest growth opportunities. Also based on the consumer demographics of Farmers consumers, focusing on creating new innovative insurance services will address consumer needs and desires.
In order to promote these products, Farmers needs to determine the best media tool to use in marketing these products. Because Farmers consumers are considered confident planners, they are more likely to read financial magazines. This would be one beneficial media tool that Farmers can use to market their new insurance services. In order to improve brand awareness Farmers could also engage in a form of guerrilla marketing. This were companies create a campaign that seeks to obtain instant results using limited resources (Clow & Baack, 2014). Farmers needs to determine the relevant “touch points” with their consumers, and for each of these touch points Farmers needs to create a memorable experience for their existing and potential consumers. Because this type of marketing focuses on specific regions, Farmers could focus their campaign in regions where they are seeking to improve their brand presence. For example, in some of these regions Farmers could create an advertisement that plays during the previews before a movie. In the ad the company can display the automobile app that can detect when the vehicle is involved in a crash. The ad can demonstrate the quick response of Farmers and how helpful it can be to have an agent who takes care of everything and provides the client with peace of mind.
As for the telematics product, Farmers could use experimental marketing for promoting this product. Experimental marketing combines direct marketing, field marketing, and sales promotions into a single consumer experience (Clow & Baack, 2014). Farmers could attend technology conventions and set up a driving simulator with the telematics device. They could invite users to come and try out the simulator and see if it would be beneficial for the consumer to switch to Farmers. Since this type of marketing seeks to engage consumers with the brand rather than just providing a free sample, Farmers could also demonstrate the value of having an agent handle a client’s insurance needs.
Clow, K. E. & Baack, D. (2014). Alternative Marketing. Integrated Advertising, Promotion, and Marketing Communications (6th ed.). Retrieved July 29, 2017, from https://view.ebookplus.pearsoncmg.com/ebook/launcheText.do?values=bookID::17975::platform::1030::bookPageNumber::0::fromloginpage::N::invokeType::lms::launchState::goToEBook::platform::1030::userID::16971613::scenario::11::scenarioid::scenario11::courseid::giroth14885::pageid::0::sessionID::9099245291654212476292017::smsUserID::75964803::isSecuredPlatform::true::hsid::117a3a8ccb35c93940a3bc82c0da1d11
Fletcher, B. (April 25, 2013). Five Reasons Why Market Research Matters (and Five Tips for Using It). Retrieved July 29, 2017, from http://www.marketingprofs.com/opinions/2013/23874/five-reasons-why-market-research-matters-and-five-tips-for-using-it
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