PRICE AND DELIVER VALUE OFFERING 1
Marketing Management Individual Project: Price and Deliver Value Offering
Savannah Schaefer
School of Business, Liberty University
Author Note
Savannah Schaefer
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Savannah Schaefer
Email: sschaefer@liberty.edu
PRICE AND DELIVER VALUE OFFERING 2
Marketing Management Individual Project: Price and Deliver Value Offering
Q1. Explain Your Pricing Strategy
When reviewing pricing in an industry such as insurance, since there are so many options
for who will provide insurance, most businesses will use competitor-based pricing to show
consumers that they will be the best option. In regard to Liberty Mutual Insurance Group, when
reviewing their website, a consumer will see that they are able to not only get a quote for what
their insurance bill may look like but also are able to compare this price to other large insurance
organization. When there are hundreds of options for insurance, especially for a regular
customer, knowing who will give the best coverage at the best price is what will be the main
focus.
Q2. Discuss Various Pricing Tactics That Have or Would Prove Effective in Stimulating
Sales
Within insurance, the market is flooded with any different options and slogans different
corporations will use. While Liberty Mutual focuses in on their personalized approach to
insurance to show they people are paying less due to only having polices with what they need,
another avenue that would be profitable is bundling pricing tactics (Marshall & Johnston, 2019).
Many insurance companies use a promotion of bundling home and auto insurance to give
customers a cheaper overall price for two policies. This tactic not only allows customers to get a
cheaper overall rate for their needed insurance policies but also brings in more business for the
company rather than only have one policy per client.
Q3. Discuss the Distribution Strategy Relevant to the Product/Service
Due to the nature of insurance not being a tangible product or service, their style of
distribution will be different than most other services. Insurance itself it not something that one is
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able to buy and hold in their hands but is instead a contract of “what-if” scenarios. Due to this,
distribution of Liberty Mutual’s policies are mostly done through exclusive distribution. By
being exclusive in their distribution, a customer must go directly to Liberty Mutual when trying
to buy or update their insurance polices. This style of distribution allows Liberty Mutual to talk
directly with their customers and no other employees or services will affect their chance of sales.
Q4. Explain the Channels Used to Distribute the Product/Service
With Liberty Mutual being an insurance company, their options for distribution channels
are limited. Specifically with this corporation, they use agents to distribute their policies. With
agent distribution, agents are hired directly by the company to negotiate purchases and sales to
customers (Marshall & Johnston, 2019). This allows customers to talk directly with one person
each time they need to discuss an aspect of their policy rather than going to a different person or
a general store anytime they need assistance.
Q5. Explain the Firm’s Use of E-Channels, E-Retailing, or Other Non-Traditional Methods
of Distribution
In an industry such as insurance, there is no tangible product or service being provided
until something happens when insurance is needed. Due to this, Liberty Mutual utilizes much of
electronic modes of communication to provide services to their current and potential customers.
Like many large corporations, Liberty Mutual provides customers with access to an app that
allows them to become more familiarized with their policy and have access to important
information. On the Liberty Mutual app, customers have access to ID cards, safe driving
programs, the ability to make minor changes to policies, call Roadside Assistance, file a claim,
upload photos of damages, and receive status updates on claims (Liberty Mutual). By providing
ro
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products such as an app for customers, Liberty Mutual has been able to make an intangible
service into something that has tangibility.
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References
Liberty mutual: Customize your insurance coverage and get A quote: Liberty Mutual. Liberty
Mutual | Customize your insurance coverage and get a quote | Liberty Mutual. (n.d.).
Retrieved from https://www.libertymutual.com/.
Marshall, G. W., & Johnston, M. W. (2019). Marketing management (3rd ed.). McGraw-Hill
Education. ISBN: 9781259637155.
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