Effective reach and effective frequency-insurance , Finance Basics

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance. They are effective reach and effective frequency. In the view of promotional management, effective frequency means the total count of times an object audience should be depicted in order to attain a specific goal. On the other hand effective reach signifies the minimum number of existing exposures. And it is observed that if there are a very few exposures, it will fail to achieve its specific goal; however too many exposures are also not good because it waste resources.

Insurance planners generally use the term reach in order to decide their aim intended for the net count of persons depicted to their plan. Reach has three basic characteristics and one of the most important aspects with respect to insurance. These basic characteristics of effective reach are: (1) it is basically a percentage but it hardly uses the percentage sign. (2) Effective reach is always related to some time period. It describes exposures over a particular period of time. (3) Now if the plan consists of multiple exposures of people, effective reach will not count it.

It has been observed that every year a search party conducts a survey about "Recall and Readership". This implies that it is the survey about finding most remembered ad, and the ad will be then printed repeatedly in the insurance journals. This helps in keeping potential clients in the market and the important ads are also being viewed again and again. This is the frequency effect. So that means the frequency effect is the most desired as has been chosen by the people. So it is the main advantage of effective frequency while choosing an insurance plan. Sometimes it is also seen that a simple plan, no fancy at all, is successful just because of frequency effect. So from the above discussion it can be concluded that effective reach is the dispersion of the promotional management on the other hand effective frequency demonstrates about the repetition of the effective plan.   And other important thing is that for achieving a particular goal if we can set the effective frequency properly then only the reach in the effective frequency level will be called as effective reach. So in my point of view for purchasing insurance plan considering effective frequency is more important.

Posted Date: 3/14/2013 1:14:21 AM | Location : United States







Related Discussions:- Effective reach and effective frequency-insurance , Assignment Help, Ask Question on Effective reach and effective frequency-insurance , Get Answer, Expert's Help, Effective reach and effective frequency-insurance Discussions

Write discussion on Effective reach and effective frequency-insurance
Your posts are moderated
Related Questions
explain the main sources of finance ?


What is a Treasury bill? How risky is it? Treasury bills are short-term debt instruments granted by the U.S. Treasury which are sold at a discount and pay face value at maturit

What are some good examples of C.O.L.A?

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                  Liabilities Amount Assets

Growth rate : The average of PC manufacturing industry growth rate was 22.24% for 2004, 20% for 2005, and 17.29% for 2006. It showed that the industry's growth rate has been declin

Price Earnings Ratio Valuation P/E ratio is traditionally employed for valuation of shares however it is an important ratio in the valuation of business. The P/E ratio is the

The scope of supply chain management  Supply chain management includes the determination of suppliers; distributors, distribution channels and warehousing; manufacturing infor

Why do some investors prefer high-dividends paying stocks? Why ,ight other investors prefer low-dividend paying stocks?

How are financial trades made on an organized exchange? Ans: Each exchange-listed security is traded at a fixed location on the trading floor known as the post. The trading is