reinsurance.
At the same rime, we are com-
mitted to bringing the overall firepower of
rhe U.S. RK Group to bear on our partner-
ship. This will also inciude capabilities stem-
ming from our captive and related enter-
prises, which assist corporate insurance
buyers in facilitating alternative risk transfer
mechanisms," he added.
"As the first broker to be licensed in
Turkey," said Ergun Turker, general manager
and chief executive of Baris, "we remain
deeply committed to the important role the
insurance industry plays in Turkey and our
company's relative position in the market.
We are delighted that U.S. RE shares our
vision of the vast development opportunities
in the Turkish insurance arena. We are also
excited over U.S. REs commitment to the
transfer of technology with our venture.
inclusive of facilitating the deployment of
reinsurance mechanisms and other products
designed to assist the growth of our local
industry while strengthening the bond with
reinsurers. U.S. RE's creativity is renowned as
is irs commitment to the international arena
in which it is one of the largest players." A
The Benefits Of
Marketing-Driven
Growth Stategy vs.
Saies-Driven Strategy
By John Graham
"We had to stop the mailings to our hos-
pitality database," said Tom Helbach, presi-
dent of Mosinee Insurance Agency in
Wisconsin. "We were getting so many calls
we couldn't process the work efficiently until
we made some internal changes."
Marketing gives Mosinee Insurance a
statewide reach and allows it to compete suc-
cessfully against an association-endorsed
insurance program. The next srep is to begin
markering in neighboring states.
But this isn't all. This marketing strategy
demolishes rhe myth that companies only
want to do business locally.
And it's also true that this marketing ini-
tiative, as well as others, costs money. But
business is coming to Mosinee Insurance
without face-to-|-ace calls. Ir cosrs money but
it's also efficient and effective.
What Mosinee Insurance Agency is doing
is just one example, but it illustrates the ben-
efits of a marketing-driven strategy vs. one
that's sales-driven.
In spite of those who claim "marketing
costs too much," here are four major reasons
why just the opposite is true:
Marketing bullctproofs a business against
competitive attack. Most companies don't
give marketing serious attention until some-
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thing goes wrong. It may be the activity of an
aggressive competitor, falling sales, or some
internal crisis. Then everyone expects mar-
keting to kick in instantly and solve the
problem. Companies, all companies, are vul-
nerable to competitor attack when they fail
to create a legacy of marketplace credibility.
This means projecring and protecting the
company image and constantly caring for the
way the brand is perceived and appreciated.
This takes time, effort and money. But when
a problem arises, and it always does, there's a
reservoir of goodwill, knowledge and value
that offers protection against the attack.
The hundreds of millions of dollars that
tobacco companies are committing to
smoking educates aren't at cross-purposes
with selling cigarettes. Those sales are far less
important than having these corporations
viewed by the public as responsive and
responsible, thus helping to mitigate possible
legal, legislative and regulatory action.
Marketing creates a company's future.
When someone calls and says, "I've known
about you for years," you know that mar-
keting has been at work doing its most
important job. Here's what effective mar-
keting contributes to a company's success:
before customers make the decision to buy,
they must make the decision to go to you.
The markeing objective is to help customers
September 6, 2004
CALL: 800-665-7304
FAX:631-581-9385
EMAIL: info@brownyardprograms.com
form the picture in their minds that you are
the right company to do business with.
Behind all this stands a carefully designed
and thoughtfully implemented marketing
program with one aim: at the moment of
need, the customer either seeks you out or
welcomes your call.
Today, we are seeing many companies that
have been in business but are now in decline.
Why? In some cases, their customers have
closed their doors, merged or been acquired.
Or, new competitors have entered the market
and grabbed their accounts. And quite pos-
sibly, the "inside" customers who knew them
so well - buyers, purchasing agents, managers
- have gone elsewhere or retired.
Unless a company is actively prospecting
two to 10 years in advance, it will find itself
always pucshing for sales.
Marketing makes selling easier. If cus-
tomers have a positive predisposition toward
doing business with your company, product
or service, making the sale is simply easier.
This makes it possible for the salesperson to
be a consultant (and not just to call himself
one). Such common selling issues as over-
coming objectives and closing techniques
become irrelevant. In fact, relying on "selling
skills" to get the order is an idlcation that a
CONTINUHD ON PAGE 22
21
 B U S I N E S S & F I N A N C: I A L

Marketing writes for a variety of business publications, and coverage does not cover external power
C O N T I N U E D F R O M PAGE 2 1 speaks on business, marketing and sales topics for outages. Fortunately, insurers do offer
company and association meeting. He is the optional business interruption coverage that
company has no marketing. winner of an APEX Grand Award in writing will cover certain losses in the event of a
Everyone in business receives calls that and the only two-time recipient of the Door & power outage.
start out something like this: "A couple of Hardware Institues Ryan Award in Business "For instance, a company that has refrig-
weeks ago, I sent you intormation about our Writing. He can be contacted at 40 Oval Road, erated storage may want to buy additional
company "This is a call that goes nowhere Quincy. MA 02170 (6l7'328'0069: fax 617- protection to specifically cover the loss of the
today. Of course salespeople (very good ones, 471-1504); j_graham@grahamcomm.com. stored contents in the event their operations
too) run from such antiquated and stifling The company's website is ^ahamcomm. com. are interrupted by a power outage.
working conditions. Commercial insurers typically work closely
Trying to make the sale when prospects with a company to understand their business
lack a clear understanding of why it's in their and assess their risks and they work with the
best interest to talk to you is a waste of a ISO Estimates Hurricane management to help them make informed
company's resources - time, personnel and
money. Jacking up commissions or lowering
Chariey Losses; PCI Cites decisions on what kind of coverage they want
and need. In the end, it always comes down
the price only drives up the cost even higher. Damages To Businesses, to choice, and some companies buy the
The role of marketing is to create the right
environment for selling to be successful.
IMobile Homes minimum coverage while others insist on the
Rolls Royce version."
Without it, the cost of doing business is too JERSEY CITY, N.J.. August 25—With
Criffin said catastrophes like Hurricane
high. Hurricane Frances poised to strike the
Charley always raise questions about insur-
Marketing extends your reach. Whether Florida coast as Insurance Advocate goes to ance coverage. He outlined some points that
it's drilling down into existing companies to press. Insurance Services Office (ISO) has business owners should know about basic
find new opportunities, further penetrating a weighed in on loss estimates for Hutticane business coverage, including:
market or market area, or opening the door Charley, putting the number at $6.8 billion A standard business policy typically covers
to new markets and new territories, mar- in claims payments to homeowners and busi- loss to the building, fixtures, and perma-
keting is the engine that drives the effott. nesses. ISO arrived at the number by using
nently installed machinery and equipment. It
the preliminary estimates of its ISO Property
To grow a business today, the task is one also covers furniture and fixtures, stock and
Claim Services (PCS) unit.
of going from "everybody knows us" to your interest in "improvements and better-
Charley is the second costliest hurricane
"nobody knows us." Few companies are ments" if the property is leased. It also covers
after Hurricane Andrew, which hit south
willing to acknowledge the height of the wall property in your care, custody and control
Florida in 1992, causing insured losses of
this creates for anyone in sales. Firms enter a under certain conditions.
S20.3 billion in inflation-adjusted dollars,
new market where they're not known and Some items not covered typically include
according to ISO. ISO added that, of the
then wonder why sales lag. More often than foundations of buildings (below ground
nearly 622,000 claims that insurers expect to
not, it's the sales force that gets the blame for level), land, bulkheads, pilings, piers, wharves
receive from homeowners and businesses for
the debacle, even though the fault was a lack or docks (although this coverage can be pur-
insured losses to personal and commercial
of marketing. chased separately) and vehicles (usually these
property and vehicles, 605,000 are from
OnStar is an example of a company that are insured on another policy).
Florida.
literally drove customers to GM dealers. Business policies also typically include
ISO estimated losses for North Carolina
They have created demand for the product. coverage for debris removal. This is usually
and South Carolina at $25 million and $20
Motion pictures are pitched the same way:
million respectively. ISO noted that Charley part of the policy limit; however, additional
"Coming in October."
"lost its punch" by the time it reached those coverage is available. For buildings that are
Here's the message: it's failing to market states. insured for replacement cost, the typical
that's too costly. The bottom line value of PCS will resurvey insurers in the near policy also includes up to $10,000 or 5
marketing becomes clear when you take into future as more claims are filed and existing percent of the limit for the building
account these three factors: sales that are claims are amended, said ISO. (whichever is less) for the increased cost of
going to a better-known (but not necessarily The Property Casualty Insurers construction due to huilding ordinance or
more competent) competitor, sales opportu- Association of America (PCI) has stated that law changes.
nities that are missed because you ate businesses especially have been hit hard by A business policy may also include a
unaware they even exist, and thin-margin the storm. According to PCI's latest esti- "coinsurance" clause that requires the policy-
sales that are being made to save accounts or mates, 40 percent of the $6.8 billion in holder to insure the property for at least XX
"get in the door." claims are commercial claims. percentage (usually a minimum of 80
The money is going out the door now. percent) of the value of the property. If, at the
"Many of the businesses in the storm's
The goal of marketing is to keep it where it path had to shut down due to the widespread time of loss, the amount of insurance does
belongs - on the books. A not meet the minimum, the policyholder
power outages," said Donald CrifFin, PCI's
becomes a "co-insurer" and will bear a
John R. Graham is president of Graham vice president of commercial lines. "The
portion of the loss, beyond the deductible.
Communications, a marketing services and sales standard commercial insurance policy does
A standard business interruption policy
consulting firm. He is the author of The New not cover losses due to 'off-site' power
Magnet Marketing and Break the Rules Selling, outages and typically, business interruption CONTINUED ON PAGE 28

22 September 6, 2004 Insurance ADVOCMl