Question

GEICO: From Bit Player to Behemoth through Good Advertising

Founded in 1936, GEICO initially targeted a select customer group of government employees and noncommissioned military officers with exceptional driving records. Unlike its competitors, GEICO had no agents. Instead, the auto insurer marketed directly to customers. In 1994, however, when GEICO decided to expand its customer base, it knew that it must also expand its marketing.

Would GIECO’s method of marketing communication work in an international environment (out of USA) Why or why not?

Answer 1

The mode of marketing which GEICO was using in the US will not work in international markets. This is because this method of marketing targets only a small group of individuals who have exceptional driving records. This is a very narrow form of marketing form. It should expand its marketing base to all the groups of consumers who know safe driving. This is because in international markets and in some of the developing nations there may be few drivers with exceptional driving records. Also, agent base needs to be expanded. With high population in international markets and in some of the developing nations of the world, the insurer cannot meet the demand of each willing customer by meeting them directly, Thus, agents needs to be deployed in this case who can expand the market base of the company and interact with consumers on one on one basis without relying on a single auto insurer.