Telemarketing in the Hong Kong Insurance Industry - Essay Example

1. The Introduction The working of your Dissertation: A feasibility Study of Telemarketing in the Hong Kong Insurance Industry Your selected topic area – Include here background to the topic you have chosen, a description of the topic including keywords and definitions and boundaries of the topic you will be investigating (Approx 200 words) A closer look at Hong Kong reveals that it posses an excellent environment with regards to the operations of insurance industry despite the ever emerging sophistication in the financial service industries and capital markets across the world. As the leading centre in Asia, Hong Kong boasts of having the largest number of authorised insurers in the Asian region according to OECD, (2001). This has provided the much needed impetus to the increase of professionals allied to the insurance industry within this region. Due to the market liberalisation that was engulfing the insurance sector in the region during the 1990s, many foreigners have ventured into insurance and the reinsurance business. It is imperative to note that many of the companies that moved into Hong Kong were mainly from the West, especially from the UK as well as the United States of America. As it was expected, this created an environment within this market or sector that was largely characterised by heightened competition as presented by Clutterbuck (2005). As a result, it became apparent that companies within this industry needed to explore other marketing modes if they were to remain in the business and competitively impact on it. Hence, it is against this backdrop that telemarketing should be construed as a feasible option to help in the option of market amongst the various players within this industry. Telemarketing is a form of reaching the ‘would be’ clients by telephone according to Rosenzweig, (2000) and Boone and David, (2002). Why is it important? – Why is it important topic to investigate from a theoretical and/or practical perspective? State how the dissertation will help your personal development objectives; career development objectives; your organisation’s objectives (where appropriate) and meet the Henley objectives. (Approx 300 words) It is every business entity’s drive to increase on its profit earnings. To achieve this, a business organisation needs to conduct an exhaustive study of its surrounding environment and get information on how operations are executed. On the other hand, the business environment is quite dynamic. In this regard, operating businesses, irrespective of their line of operation, need to take into account these aspects. As pointed above, the Hong Kong market was witnessing changes in the insurance sector due to the liberalisation of her economy. As a result, more companies, both within and without the country, ventured into the insurance business; a development that would take the local competition to the next level. That this has been a source of concern to a number of players in this sector is a fact. Hence, firms need to rethink the efficacy of their traditional marketing strategies such as use of social networks, branding, e-advertising as well as competitive pricing. Recent developments within this industry have seen the introduction of telemarketing. However, unlike in nations such as Ireland and the UK, this mode of marketing has not been fully appreciated in the Hong Kong society. That not withstanding, it carries an immense potential in terms of enabling these insurance market players to secure market control within the country. To this end, the most important area of concern should be on the issue of telemarketing in the context of the emerging challenges associated with it. In particular, emphasis should be laid on its applicability based on the type of insurance business as well as the root causes of its unacceptability by the Hong Kong populace. Based on my15years experience in the insurance industry, especially in the Frontline of Employees Benefits (EB) in addition to my current role as the Development Manager, I would wish to see this business grow as well as overcome challenges. Events of the unprecedented economic down turn calls for proactive measures to resuscitate this sector. In as far as I am concerned, the success of a company translates to the success or well-being of the people and so by improving on performance, expansionist activists would lead to job provisions. 2. Literature Review Summary of key findings and ideas from your initial literature search; How does the literature link to your research question and provide support for your proposed research? (Approx 250-300 words) Telemarketing, also known as telesales is a direct marketing method whereby sales people usually solicit for potential clients to buy the insurance services or any other product through the use of phone (Finch, 1995) and Sissors and Roger, (2002). In some instances, this might involve face-to-face or web conferencing that had been scheduled over the phone. Furthermore, it may incorporate the use of sales pitches that have been recorded and programmed in order to be played over the telephone through automatic dialling. As it is put forward by Qiaoyi (2009), the use of telemarketing is bound to grow in the near future given that it is achieving good results. Its low costing is the main drive. Courteousness is one of the characteristics of telemarketing owing to the fact that it is indeed a form of customer service. The second feature of telemarketing is that it is founded on the premise of making the client believe in the product or service on offer. This is usually coupled with resiliency in the use of this mode of marketing. In addition, telemarketing is often focused on a specific target group or market segment that is normally selected through the use of a range of criteria according to Stone and John (1992) and Schiffman, (1992). Also, telemarketing involves the use of more than one phone call to the potential client according to Bendremer, (2003) and Sen, (2003). One of the merits of telemarketing is captured in terms of its low cost per sale. Additional merits include cheap and easy to use, increased sales volume or revenue turnovers, and increase in the customer base among others according to Stone and Ron, (2001) and Schiffman, (2002). Opponents of telemarketing hold the view that it is a nuisance on the basis of reception of disturbing and unwanted calls according to Cagape (2009) and Coe and John, (2003). It has also been cited that telemarketing provides for an ideal platform for fraudulent acts in which case the customer is often left to bear the brunt. (Booth, 1996). Though it is promising, telemarketing is usually faced with regulations that are related to the privacy of consumers and protection. This limits its scope of coverage and thus its efficacy ultimately as it has been argued by Friedman, (2001) and Weitz, Stephen and John, (2004). Initial bibliography: Provide at least 10 key academic literature references in your reference list and attach at Appendix A. 3. Research Question(s) Specific research question(s) Your literature review should culminate to a specific statement of the research question(s) that your dissertation will investigate. (Approx 50-100 words) A preliminary review of literature brings to the fore the mixed views and results in relation to telemarketing. While there are successful cases such as CIGNA Hong Kong and Metropolitan life insurance, there are others that underperform as it is revealed according to their profile details. With this in mind, the research questions for this dissertation are; what is the potential of Telemarketing for the Hong Kong Insurance market? Within which area of insurance is telemarketing most appropriate in Hong Kong? To answer these research questions, this dissertation shall be focused on exploring the feasibility of telemarketing from two perspectives namely; the insurance companies’ perspective and clients’ perspective. 4. Research Design Research design and data collection plan... What research method will you use and why? Explain how you will collect the data and identify any practical issues. Give details of your proposed sample and how you will access it. (Approx 200-250 words) Based on the nature of this study, the most appropriate research instrument shall be both qualitative and case study approaches. The latter according to Bryman and Bell (2003), carries the merit of providing richer insights. Of importance to note is the fact that quantitative approach to this study has deliberately been avoided since it is often rigid and thus would hamper the researcher from getting an exhaustive insight into this study area. With this in mind, the research data collection process shall be divided into two parts with the first being the use of structured interview. In particular, the said interview shall be based on approximately 20 different level employees of different organisations in the industry in Hong Kong. As such, CEO, top management, middle level supervisors shall be covered. The primary objective of this interview shall be to explore the efficacy of telemarketing and its challenges among the country’s insurance players with respect to the cultural differences. (Moran, Phillip and Sarah, 2007) The second component of this process shall involve questionnaire administration to a sample size of about 70 comprising of both direct and indirect clients. Hence, three insurance companies shall be selected for this study and their clients as well. The purpose of this study shall be to explore the efficacy of telemarketing strategy in the insurance industry in Hong Kong. Thus, by so doing, it shall seek to investigate the areas of insurance that this mode of marketing is most suitable and applicable. In this regard, the target of this study shall be both the insurance players and clients. Proposed analysis and presentation techniques to be used.....How will you analyse the data and present your findings? (Approx 100-150 words) The research findings/results shall be used to compare with the existing theoretical context Vis a Vis the reality within the market. Owing to the fact that this is a qualitative based research, data shall be analysed and presented through the use of descriptive statistical methods. This shall be critical in terms of capturing the personal views of both the insurance providers and clients. Although it is the main variable of analysis, personal views from the insurance players shall be analysed on their own merit based on the perceptions on the efficacy of telemarketing amongst the different insurance provider organisations in Hong Kong. However, views from clients shall be analysed as a single entity with regard to telemarketing. The analysed data shall be presented in terms of score tables, pie charts and graphs having been calculated using the relevant statistical formulae. 5. Managing Your Dissertation Project Plan: Your project plan should include key milestones and timings and be attached as Appendix B) List of resources and stakeholders needed for success: Resources = Time, finances, field enumerators, library resources and previous research studies. Insurance market analyses in Hong Kong from the business press and Information technology. Stakeholders = Insurance companies and clients. 6. Appendixes: (Attach appendixes to your completed proposal form): A. Reference list B. Dissertation project plan Part 7 Office use only Name of Tutor allocated: …………………………………………. Date: ……………………………………………. Appendix A References Bendremer, E. (2003). Top Telemarketing Techniques. New York: Career Press. Boone, L.E and David, L.K. (2002). Contemporary Marketing. California: Thomson Learning. Booth, D 1996, Hong Kong commercial law: current issues and developments. Hong Kong University Press, Hong Kong. Cagape, E. (2009). Hong Kongs Telemarketing Epidemic, Hong Kong University Press, Hong Kong. CIGNA Hong Kong Insurance. Accessed on 06/01/2010 from; http://www.cigna.com.hk/en/html/header/about_cigna/cigna_hong_kong.html Clutterbuck, D. 2005, Making Coaching Work: Creating A Coaching Culture. London, CIPD 2005 Coe, J and John, M.C. (2003). The Fundamentals of Business to Business and Marketing. London: McGraw-Hill Professionals. Finch, V. A. (1995). Telemarketing: Applications and Opportunities. Washington: Crisp Publications Friedman, N. J. (2001). Telemarketing Tips from A to Z: How to make Every Call a winner! New York: Crisp Publications. Metropolitan Life Insurance; Hong Kong; Accessed on 06/ 01/ 2010 from; http://www.metlife.com.hk/eng/about_hk.htm Moran, R.T., Phillip, R.H and Sarah, V. M. (2007). Managing Cultural Differences: Global leadership strategies for the 21st Century. 7th Ed. New York: Butterworth-Heinemann. OECD, (2001). Insurance regulation and Supervision in Asia and Latin America. OECD Publishing. Qiaoyi, L. (2009). Insurance telemarketing to see rapid growth soon, Global Times, Hong Kong. Accessed, 06/01/2010 from: http://business.globaltimes.cn/industries/2009-11/483840.html Rosenzweig, S. (2000). Smart Telemarketing: How You can Turn Ordinary Telemarketing into Extraordinary income. New York: Emery Publishing Company. Schiffman, S. (2002). Getting to ‘Closed’. New York: Kaplan Publishing. Schiffman, S. (1992). Stephen Schiffman’s Telemarketing. New York: B. Adams. Sen, K. (2003). Restructuring health Services: Changing Contexts and Comparative Perspectives. London: Zed Books. Stone, B and John, W. (1992). Successful Telemarketing. London: McGraw-Hill Publications. Stone, B and Ron, J. (2001). Successful direct marketing methods.7th Ed. London: McGraw-Hill Professionals. Sissors, J.Z and Roger. B.B (2002). Advertising media planning. London: McGraw-Hill Professional. Weitz, B.A., Stephen, B.C and John, F.T. (2004). Selling: Building Partnerships. London: McGraw-Hill Professional. Appendix B Dissertation Work plan-2010 1st Month Develop detailed project plan & critical timing plan. Reconnaissance of the study field Contact prospective interviewees 2nd Month Complete Literature Review Assembly of the necessary resources for the study 3rd Month Write up introduction, aim, objectives & hypothesis Conduct Interviews and questionnaire administration 4th Month Compilation of data 5th Month Critical assessment of data and discussion 6th Month Write up conclusions. 7th Month Presentation of research findings to the stakeholders. Submission of the dissertation Read More