INTRODUCTION1.

1 LIFE INSURANCE IN INDIA With such a large population and the untapped market area of this populationInsurance happens to be a very big opportunity in India. Today it stands as a business growing atthe rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent tothe countrys GDP .In spite of all this growth the statistics of the penetration of he insurance inthe country is very poor. Nearly 80% of Indian populations are without Life insurance cover andthe Health insurance. This is an indicator that growth potential for the insurance sector isimmense in India. It was due to this immense growth that the regulations were introduced in theinsurance sector and in continuation malhotra committee

was constituted by the governmentin 1993 to examine the various aspects of the industry. The key element of the reform processwas Participation of overseas insurance companies with 26% capital. Creating a more efficientand competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .Thecompetition LIC started facing from these companies were threatening to the existence of [Link] the liberalization of the industry the insurance industry has never looked back and todaystand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of newdistribution techniques and the IT tools has increased the scope of the industry in the longer run. 1.2 A BRIEF HISTORY The origin of insurance is very old .The time when we were not even born; manhas sought some sort of protection from the unpredictable calamities of the nature. The basicurge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India from UK; with the establishment of the Oriental Lifeinsurance Corporation in [Link] Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firmswere been established in India. Then the central government took over these companies and as a result theLIC was formed. Since then LIC has worked towards spreading life insurance and building a widenetwork across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance companyestablished in the year 1850 in Calcutta by the British. In 1957 General Insurance Council, a wing of theInsurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. In 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the generalinsurance

business in India with effect from 1st January 1973. It was after this that 107 insurersamalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New IndiaAssurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance CompanyLtd. GIC incorporated as a company. 1.3 INSURANCE SECTOR REFORMS Malhotra committee, headed by former Finance Secretary and RBI Governor wasformed to evaluate the Indian insurance industry and give its recommendations. The committee came upwith the following major provisions

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter theindustry.

Foreign companies may be allowed to enter the industry in collaboration with the domesticcompanies.

Only one State Level Life Insurance Company should be allowed to operate in each state It wasafter this committee came into affect the regulatory body for insurance sector was formed withthe name of IRDA. IRDA:

The IRDA since its incorporation as a statutory body has been framing regulationsand registering the private sector insurance companies. IRDA being an independent statutory body has put a framework of globally compatible regulations

1.4 IMPACT OF LIBERALIZATION The introduction of private players in the industry has added to the colors in the dull industry. Theinitiatives taken by the private players are very competitive and have given immense competition to

theon time monopoly of the market LIC. Since the advent of the private players in the market the industryhas seen new and innovative steps taken by the players in this sector. The new players have improved theservice quality of the insurance. As a result LIC down the years have seen the declining phase in [Link] market share was distributed among the private players. Though LIC still holds the 75% of theinsurance sector but the upcoming natures of these private players are enough to give more competition toLIC in the near future. LIC market share has decreased from 95% (2004-05) to 81 %( 200910).Thefollowing companies has the rest of the market share of the insurance industry.

A Brief Perspective on Advertisement In this chapter, we shall focus on advertisement research, which involves developing andevaluating advertisement. To do so efficiently, it is just not enough to know they evaluation techniques. Itis critical to understand advertisement first. This is briefly attempted and then the research methods aretouched upon in this chapter. The most famous question in the context of advertisement and very pertinent to advertisement research is-how does advertisement work? It is only when we know how itworks that we can use research to develop and evaluate it. In this context, it is apt to recall JohnManamaker's viewpoint-"Half of advertisement was wasted, but one did not know which half". Thisstatement is now decades oid, but the mystery still continues. No-one knows and most probably no-one shall ever know. The thus for unanswered questions-Who knows? And will anyone ever knows? - Still daunts the sincere and down-to-earth advertisement professionals and marketers. Not having any answer to these questions is not "modesty" in this context, but sings of true professionalism and integrity. It is believed that success or failure in advertisement isoften dependent on what is being measured and how it is being [Link] opinion statements are not meant to portray a defeatist posture, but a bold [Link] do exist some relevant thoughts based on theoretical constructs and empirical observations that canhelp in understanding advertisement. Some of these are briefly touched upon here, to provide anappropriate perspective to the [Link] is meant for its audience. There have been two eras pertaining two the audience of advertisement-the passive and active eras. In the first era, it was believed that the hierarchical processstarting with "attention" and ending with "action" was the order. What it meant was (what process doesadvertisement do to the viewer?) that advertisement did everything, and that the viewer did nothing. Some construct in this era were as below

Starch: Seen, Read, Believed, Remembered, and Acted upon.

DAGMAR : Awareness, Comprehension, Conviction, and Actions

AIDA: Attention, Interest, Desire, and Action.

 AIETA: Attention, Interest, Evaluation, Trial, and Adoption. In this era, advertisement goals were set accordingly, and then measured to understand howadvertisement was working. Successful Advertisement as Per Research International In a creative workshop conducted by research International, the following factorswere highlighted with reference to "what makes a successful advertisement". The points are stated very briefly.

[Link]

.Clear, string branding.

Help in mountainous branding. 2. Consistency

Advertising should have consistency in music, sounds, symbols, styles, over time, and campaigns. 3. Uniqueness

An advertisement should have a unique, distinctive communication, which should not beinterchangeable with other brands. 4. Involvement

This is about generating identification/empathy-the target audience should be able to identify withthe advertisement. They should see people who look real, not models.

It should trigger positive emotion-the advertisement should facilitate positive emotions like praise,admiration, coziness, etc. It should inspire curiosity and then satisfy it.

Avoid causing fear-the advertisement should not evoke negative feeling, like [Link] trends-these should be used with caution. It should be used only if appropriate for the target groupand not be short lived

[Link]
The story/main massage-the advertisement should dramatize the story and the mainmessage to make it a memorable experience.

The value of experience-the advertisement should have attractive picture, pleasant music, perhaps be erotic, dreamy, with surprise and humor, etc. It should provide memorableexperience for the target group.

Developing and Managing an Advertisement Programe Advertising is a any paid form of non personal presentation and promotion of ideas, goods, or service by an identified sponsor. Advertisers include business firm, but also museums, charitableorganization, and government agencies that direct message to target public. Ads are a cost-effective wayto disseminate messages whether to build brand preference for Coca-Cola or to educate people to avoidhard [Link] handles advertising in different ways. In small companies, advertising inhandled by some one in the sales or marketing department, who works with an advertising agency. Alarge company will often set up its own department, whose manager reports to the vice president of marketing. The advertising department job is to propose the budget; develop the advertising strategy;approve ads and company, and handle the direct mail advertising, dealer display, and other forms of advertising. Most companies use an out side agency to help create advertising companies and to selectand purchase [Link] companies that use a large numbers of ads agencies located in different countries andservice different divisions have suffered from uncoordinated advertising and image diffusion. Some largecompanies, such as IBM and Hewlett-Packard, now use only a few agencies or even one that can supplyglobal advertising, public relations, sales promotions, and Web consulting. The result is integrated andmore effective marketing communications and much lower total communications [Link] agencies need to redefine themselves as communication companies and assist client inimproving their overall communication effectiveness. Yet many agencies have reduce the size of their research departments and therefore are less able to build a research based brand strategy. Another criticism is that ad agencies or to oriented toward large budget mass-advertising and less skilled in PR,and direct and database marketing. Procter & Gambel recent required that all its marketing programs be jointly planned with the various communication group sitting t ogether, instead of letting its advertising, agency dominate the decisions making. It changedad agency compunction from a standard media commission to a percentage of how well its global sales [Link] developing a program, marketing managers must always start by identifying the targetmarket and buyer motives. Then they can make the five major decisions in developing an advertising program, know ad " the five Ms " Mission : What are the advertising objectives ? Money : How muchcan be spent ? Message : What message should be sent? Media: What media should be used ?Measurement : How should the result be evaluated ? These decisions are summarized in Figure 20.1 anddescribed in the following section. Involvement Involvement is a necessary condition for effective advertisements, although it will not whollysuffice. It is about the advertisement involving the viewer with not the advertisement itself, but the brandin the advertisement. This is because it has been experienced that brand - linked involvement is the [Link] order to ensure success, an advertisement must involve viewer with the brand . ManyHighly noticeable and attractive advertisement fail because, although they remain strongly in the memoryit is not in a way which links that memory clearly with the brand . This brand -linked involvementremains dormant until recalled into active memory by a relevant even, such as seeing the brand in theoutlet when one is

about to make a purchase/could consider a purchase .But the question that arises is ; 'how is the desired involvement achieved ? Some ways are.

Providing an immediate challenge. It involves something new and interesting being suggested in the advertisement, whichcaptures the attention. This is difficult to achieve very often, but capable of having dramatic sales effects.( e.g. , Godrej refrigerator's Puf campaign).

Providing interest statues. It is believed that interests keeps and idea alive through a combination of curiosity and anenjoyment of the familiar and loved status. This ensures that a brand is safe, approved and fashionable(e.g., Ayurvedic Concepts).

Generate enhancement.

Advertisement claims and images are converted, during the experience of the product, into beliefs about the brand.A vivid advertisement memory may enhance perception, Enhancement japans, not when theadvertisement is seen, but when the brand is looked at or used. The difficult thing to conceptualize is nothow to make a brand familiar for the first time, but how to deal with it when it is already familiar - Howto stop it becoming stale. Familiar stimuli are not arousing simply because they have already beenlearned. Advertisement has to work afresh when the stimulus has lost excitement or when the responsehas returned/reached' some sort of plateau'. Advertisement should refresh by presenting the familiar theme in new and interesting ways (e.g. Santoor and Lux) or by presenting a newly- interestingcompatible theme (e.g. ONIDA KY Thunder.