Basic characteristics of the following marketing system
Basic characteristics of the following marketing system used in life and health insurance: a. Agency building system b. Nonbinding agency system c. Direct response system 1- Agency building system: This system involves hiring and training new agents that represent only the insurer. Sales can be expanded by hiring and training more new agents. There are 2 different kinds of systems: General agency system: the insurer hires a salesperson that has experiences and represents only the insurer.
That salesperson is responsible for a territory, and for hiring and even training new agents. Commission received will be based on the amount of sales. Managerial system: this is the most expensive for the insurer. Mostly, the insurer opens a branch office and hires a manager and that manager will be in charge of hiring, training and managing to run the branch. The manager usually does not sell insurance. Salary is paid and commission on the business of his sales team. Nonbinding agency system: this kind of system uses agents that already selling life insurance. The new agents who hired by the company as independent contractor and paid above average commission in exchange. If the company want to expand their business, they simply hire new
Need essay sample on "Basic characteristics of the following marketing system"? We will write a custom essay sample specifically for you for only $13.90/page