Integrated Marketing Communication - OSHC Insurance

Communicating with consumers is crucial to ensure consumer awareness as well as satisfaction. An integrated marketing communication aims to coordinate and integrate "its many communications channels to deliver a clear, consistent and compelling message about the organisation and its products" (Kotler et al. 2009, p. 605).  There are many channels that a financial services institution such as OSHC (an insurance company specialising in insurance for international students) can choose; mass, targeted, in-store or one-to-one communication. In the context of international students in ANU, OSHC uses targeted communication; by approaching universities and partnering with them. Consequently, OSHC uses an indirect distribution channel structure as the universities act as intermediaries for the insurance company to reach its end consumers; the students. OSHC would not opt for direct distribution channel as international students are most likely unaware of the different types of insurance and/or insurance companies operating in Australia prior to arriving to the country.

Insurance companies such as OSHC ought to understand its target market prior to eestablishing its IMC mix. For an example, a pull strategy would not be the wisest option for an insurance company that targets international students. The same reasoning is behind the decision to opt for indirect instead of direct and hybrid distribution channels. On the other hand, a push strategy allows the insurance company to communicate its product to consumers via intermediaries (ie. the universities across Australia). The strategy adopted by OSHC will not necessarily work for other insurance companies targeting different target segment(s). Hence, understanding the targeted segment(s), their buying behaviour, needs and wants are crucial to developing an effective integrated marketing communications mix.