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
Require  the relevant authoritative literature on the lower- of- cost- or- market rule for valuing inventory using the FASB's Codification Research System. Clarify the circumstance

Money or Discount Markets - Financial Markets 1. Are discount and acceptance financial institutions 2. This is a market for S.T funds growing up in one year. Money market w

Forms of Business Organizations The term business is wide in meaning. It includes all human activities made for the sake of earning profits through the process of production of

1)       What is the holding period return to an investor who bought 100 shares of Charter Oil nine months ago for $36 a share, received two $50 dividend checks, and sold the s

Characteristics of sole proprietorship The main characteristics of sole proprietorships are as follows: 1) Ownership- The ownership of the business unit is by one person.

Agency Theory An agency relationship arises whether one or more parties identified the principal contracts or hires another identified an agent to perform on his behalf some

Example of Quantity Discounts Consider illustration one and suppose that a quantity discount of 5 percent is given whether a minimum 200 units is ordered. Required Fin

Question 1: Consider a 5-year $10,000 endowment assurance issued to a select life aged 30 under the following bonus schemes:- (a) Simple reversionary bonuses of 5% p.a., 6%i

A manufacturing organisation has three production cost centres, the cutting department, the processing department and the finishing department, and two service cost centres, the st