Marketing Research

The seminar on Marketing Research owed its success to Mr. Seymour Smith, Vice President and Actuary of the Travelers Insurance Company, who had prepared a general review of the subject. Marketing research may be considered to be the application of scientific methods and procedures in the study of marketing problems to provide management with factual information upon which to formulate executive decisions and policies. Clearly a company cannot usefully undertake such research until it has determined its overall aims which will vary according to its Surplus, Volume and Profit position. For some companies increased growth is desirable, for others, improved underwriting results. Again, in some cases, lower expenses must be achieved before growth is desirable. Without a strong surplus position, too fast a rate of growth is unwise. A stock company's major aim should be to serve its stockholders; and achievement in this field is measured not by growth but by dividends and future dividend prospects. The market measures the combination of these by the value placed on a company's stock. The value of a company with consistently good operating results will stand well above its break-up value while the reverse is true of a company with consistently bad results. Considerations in a mutual company are primarily good policyholder dividend service and growth must be subservient to maintaining a good profit and adequate surplus protection.