Directed Study in Marketing 2
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WK4 Questions/Problems – Chapters 10, 11 & 12
October 30, 2012
Chapter 10
6. Insurance agents are intermediaries who help other members channel by providing information and handling the selling function. Does it make sense for an insurance agent to specialize and work exclusively with one insurance provider? Why or why not?
Insurance intermediaries enable the placement and purchase of insurance and deliver services to insurance companies and consumers that supplement the insurance placement process. Traditionally, insurance intermediaries have been viewed as either insurance agents or brokers. The difference between agents and brokers relates directly to the way they operate in the marketplace.
Insurance agents are generally, licensed to conduct business on behalf of insurance companies. Agents act in the interest of the insurer in the insurance process and generally function under the terms of an agency agreement with the insurer. In some markets, agents are “independent brokers” and work with more than one insurance company (commonly a small number of companies); in others, agents operate exclusively – either representing a single insurance company in one geographic area or selling only one line of business for several insurance companies.
8. Give an example of a producer that uses two or more different channels of distribution. Briefly discuss what problems this might cause.
Delivery of products and services takes place via the use of channels. Channels are groups of mutually supporting organizations called intermediaries, who are involved in making the product available to consumers and in many cases, servicing those customers. Retailers are intermediaries that buy and then resell the products.
An organization can set up any number of channels. Channels are organized by the number of intermediaries between producer and consumer. A level one channel has a single intermediary. This flow is typically from manufacturer to retailer to
WK4 Questions/Problems – Chapters 10, 11 & 12
October 30, 2012
Chapter 10
6. Insurance agents are intermediaries who help other members channel by providing information and handling the selling function. Does it make sense for an insurance agent to specialize and work exclusively with one insurance provider? Why or why not?
Insurance intermediaries enable the placement and purchase of insurance and deliver services to insurance companies and consumers that supplement the insurance placement process. Traditionally, insurance intermediaries have been viewed as either insurance agents or brokers. The difference between agents and brokers relates directly to the way they operate in the marketplace.
Insurance agents are generally, licensed to conduct business on behalf of insurance companies. Agents act in the interest of the insurer in the insurance process and generally function under the terms of an agency agreement with the insurer. In some markets, agents are “independent brokers” and work with more than one insurance company (commonly a small number of companies); in others, agents operate exclusively – either representing a single insurance company in one geographic area or selling only one line of business for several insurance companies.
8. Give an example of a producer that uses two or more different channels of distribution. Briefly discuss what problems this might cause.
Delivery of products and services takes place via the use of channels. Channels are groups of mutually supporting organizations called intermediaries, who are involved in making the product available to consumers and in many cases, servicing those customers. Retailers are intermediaries that buy and then resell the products.
An organization can set up any number of channels. Channels are organized by the number of intermediaries between producer and consumer. A level one channel has a single intermediary. This flow is typically from manufacturer to retailer to