January 20, 2013
TARES Evaluative Essay for GEICO GEICO, otherwise known as Government Employees Insurance Company is a subsidiary of the parent company Berkshire Hathaway company. The company provides coverage for more than 9 million policy holders that own more than 10 million motor vehicles and is the third largest writer of private insurance throughout the US. The auto insurance giant GEICO was founded in Fort Worth, Texas in 1936 by Leo Goodwin and his wife Lillian, and is headquartered in Chevy Chase, Maryland. The company is known for its aggressive TV advertising campaigns that have grossed millions of dollars with the just a few words like: “15 minutes could save you 15 percent or more on your car insurance”. This effective campaigning not only shows costumers just how simple and easy it is to write a policy over the phone, but you can also save 15 percent or more on your car insurance. In this exercise, we will examine the GEICO advertising campaign using the TARES test of ethical advertising. The TARES test for GEICO
The TARES test for GEICO consists of 4 questions that test the ethical advertising for the company. Each question will determine if GEICO claims are ethically truthful, authentic, respectful, and customer friendly. The TARES test is a combined questionnaire that allows us to test the ethical foundation of each company when it comes to the consumer. In this exercise, we will examine the GEICO advertising campaign using the TARES test. Are the ad’s claims truthful?
Are the ad’s claims truthful? GEICO business model is set up to where the company does not have sales reps in the field to push the business but offices across the nation are set up with telemarketers to serve their customers over the phone. The idea is to channel the budget in to offices where the associates are ready to help you over the phone, and therefore more budgeted dollars can go in to the marketing media such as television ads which GEICO is so famous for. This equates to more business with less overhead driving cost down and increasing more company revenue and above all it strengthens the brand with the consumer. But what has GEICO done to build the brand and bring awareness to the product line they provide in last several years? Is the claim and authentic one?
Is the claim and authentic one? Over the last decade, GEICO has had many popular TV advertising campaigns that have become well known throughout the country. Their ads feature many well know characters such as the anthropomorphic Day Gecko, Caveman, stack of money, celebrities, chipmunks, pigs and many more. GEICO has put its sales strategy on the line by creating a no hassle save you money kind of campaign. In order to do this GEICO uses a one two punch sales promotional strategy that is simple yet effective. The two sales promotion strategies used by GEICO are “Building Demand” and the “Pull Strategy”. Building demand promotional sales strategy is everything to do with building the demand for the product or brand. This is done by offering a discount or limited promotion to create that since of urgency and for the product to be used quickly by the consumer. Another way to build demand is to advertise your product in a way that it shows the consumer how your product will for fill a need or a benefit in their lives. GEICO also used the pull strategy to increase business. The pull strategy is used in such a way that it targets consumers instead of individual companies or corporations. On example would be when a company develops a campaign plan or program to drive a new product or promotion. Does the ad treat the recipient with respect?
Does the ad treat the recipient with respect? Whether you are marketing goods through an ad or a