Service Marketing Mix of Allstate Corporation: 7Ps.

Seven P’s in the Services Marketing Mix of Allstate

In this article, you will read about the seven Ps of Allstate Corporation’s marketing mix and how it is working to achieve faster and superior growth (with a particular focus on the product, pricing, and promotion components).

Product:

Allstate Corporation has divided its business into following reportable segments:

Place:

The Allstate Corporation is headquartered at Northbrook, Illinois, United States. The company has maintained an extensive presence in the North American region through a large network of administrative, data processing, claims handling, and other support facilities. The company has around 450 facilities located throughout North America. Outside North America, the company has three facilities in Northern Ireland, two in India as well as two in London.

Price:

The US insurance industry is marked by heavy price competition and the pricing strategy followed by an insurance provider affects his competitive position directly. Prices do not just affect the popularity of insurance products but also the overall image of the brand. Allstate as well as other players in the US market are increasingly adopting sophisticated pricing models to attract customers and beat the competition. Apart from marketing, pricing is the most important factor on whose basis insurance firms across the US compete heavily.

Promotion:

Insurance brands advertise and promote their products heavily in the United States as well as in other parts of the world. While heavy competition is one of the major drivers of heavy spending on advertising in the insurance industry, other factors like low consumer awareness also tend to drive higher spending on ads and promotions. Some of the common channels that brands including AllState use for marketing and sales include digital advertising channels like paid online promotions, email marketing, use of websites and apps, direct marketing as well as social media marketing. Allstate also uses consumer awareness and education initiatives to drive higher brand awareness, sales, and faster growth. It has increased its investment in technology to provide superior customer experience and increased access to various AllState products since customer experience is a major driver of popularity and growth in the US insurance industry. Moreover, AllStates and other insurance companies are using social media channels to reach their customers and grow their awareness of insurance products and related services. The company has also focused on building a strong reputation since the brand image is a major source of competitive advantage for the company. Over the past several years, the company has won several rewards and recognitions in various areas including philanthropic, employee volunteerism, and diversity efforts. There is heavy competition in the US insurance market and some of the leading competitors of Allstate include Geico, Progressive, and State Farm.

People:

The Allstate Corporation had 45,780 full time and 510 part-time employees as of 2019. Its seven reportable segments use shared human resources. Thomas J Wilson is the president and CEO of Allstate Corporation and AIC. There is intense competition in the finance and insurance industry for talented and qualified employees. Allstate hires qualified people with specialized knowledge in various areas including underwriting, data and analytics, technology, and e-commerce. Apart from competitive compensation and other benefits, the company has many training and retention programs in place for retaining key employees.

Processes:

The company uses both online and offline processes for providing insurance and other services to its customers inside and outside the US. With the growing use of digital technology, a larger number of people are using online resources to compare and purchase insurance plans. It is why Allstate has grown its investment in technology to grow the accessibility and availability of its products and services and is dedicating more technological resources to customer service as well. Allstate also employs 27,100 licensed sales professionals and 1,000 exclusive financial specialists to interact with customers directly and provide their support where needed.

Physical Evidence:

Despite the growing use of online resources for selling and buying insurance products and services. It is not difficult to come across paper-based physical evidence in the insurance industry. However, due to the growing use of digital technology and services, a lot of business is carried out online. Customers can use the AllState website and app to check out their insurance records and documents. There are a large number of forms and documents that can be accessed online easily using the AllState app which customers can download to their mobile phones. However, they can also print hard copies of their insurance cards as proof of insurance. Moreover, AllStates offers a large number of educational resources related to its products and services on its website and app that guide customers over how to use the various services available to them.

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