Effective Business Communication Methods for Tower Insurance Company

This report discusses the various methods of business communication used by Tower Insurance Company to attract more customers towards their products and services. It highlights the advantages and disadvantages of advertising techniques and provides recommendations for improving the company's organizational structure and vision statement.

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Business communication

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Introduction
Communication has been taken the form of interactive dialogue between the company and its
consumers that it covers the all stages such as pre-selling, selling, consuming and post-
consuming. The impact of technology has a huge impact on the means of communication. People
have become aware about technology and communicate by using computer and internet
(Grmanová, 2016). The report is described the various methods of business communication for
attracting more customers towards the products and services. Advertisement can be attractive
concept of business communication to influence more and more customers to buy the products.
The name of the company is Tower Insurance and it is located in New Zealand. The company
was founded in 1869 and the Government of New Zealand had given the capital for building the
New Zealand Government Life Insurance Department. After three years, ownership of Tower
insurance was transferred to the holder of policy. Michael Stiassny is the current chairman of
Tower Insurance Company. Graham Stuart, David Hancock, Warren Lee and Steve Smith are the
directors of the company.

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The organizational structure of Tower Insurance is a top down approach.
Figure 1: Organizational structure
Tower Insurance Company is publically listed in New Zealand. Earlier it dealt only in medical
insurance but due to growth in the organization, it presently deals in two divisions such as
medical insurance and investment divisions. The company provides different services to the
customers such as car insurance, house insurance, rural insurance, boat insurance and travel
insurance. The good aspect of this organizational structure is that entire management and
leadership is conducted by top management only. Board of members of the company
communicate with management team to provide the guidance regarding strategies and
supervision to be incorporated for company.
The vision of Tower Insurance is “to be the guiding light for the population of New
Zealand”. The company is putting lots of efforts to accomplish and collaborate teams to work

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together in functions which contribute to provide valuable customer experience and long
standing relationship with them.
The mission statement of the company is “to provide the best quality insurance services to its
customers in professional as well as personal manner”. Moreover, the mission statement is
focused on keeping the well efficient technical expertise and knowledge.

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Issues of the company
However, Tower Insurance Company is the leading insurance company in New Zealand but
there are number of issues in the company which influence the efficiency of the employees. The
vision statement of the company is less attractive which is unable to influence the customers and
the workers. There are various people in New Zealand who are unaware about the schemes and
profitable policies. It is necessary for the company to implement the strategies and effective
communication method for reducing the gap between the clients and the company.
Method for addressing the issues
There are number of communication methods which would be helpful for the company to
improve the efficiency of the employees. Advertising method is effective method for the
company because it is able to promote the business by fulfilling the expectations of the clients
from the organization (Baker & Logue, 2017). Advertising is one of the most common methods
of business communication which includes a paid message company build and place in a specific
media. For instance, running advertisements on television or radio, in newspapers and
magazines, utilizing outdoor media such as vehicle, billboards, banners or pay per click displays
on websites. Advertising has the ability to create awareness. Retail advertisement try to develop
sales on the other hand image advertising highlight the message of the company (Avant, Kim &
Hayes, 2017).
Goal of the business communication method
The goal of the advertising method used by Tower Insurance Company is to get the proper
attention of the customers towards the company by providing them efficient knowledge about the
products and services of the company. The customers of the company will be benefited from this

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business communication method and get aware about the schemes of the company regarding
insurance (Kim, Hayes & Avant, 2015). Tower insurance company is dealing with number of
insurance and provide the schemes and offers in their policies, the advertising method will be
effective for the company to accomplish the vision and mission of the company. The major goal
of the advertising method in Tower Insurance Company is to inform, convince and remind
customers about the insurances of the company. The efficiency of the organization and the focus
of the business towards long term relationship with customers and employees will be increased
due to this business communication method (Cummins & Weiss, 2013).
Usage of advertisement method
The advertisement method is being used in the Tower Insurance Company to spread awareness
about the company’s services. The techniques of advertisement are social media marketing,
television or radio advertising and bandwagon. However, the vision and mission statement of the
company is clear and the team of the company are teams are collaborated for working together in
functions. Torrent insurance company can use this method in the time of implementing new
schemes and proposals for insurance. It would be helpful for the company to attract new
customers. It can be used for target customers by providing valued ideas to attain the competitive
advantages. The customers of the company are happy with the services of the company but it is
vital for it to make ensure that the bonding with customers should be long lasting (Greene,
Tanner & Wright, 2015). That is why this technique should approach to those customers who are
unaware about the offered schemes and insurance by the company.
Implementation of the advertisement method

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The advertisement method of business communication is implemented by Tower Insurance
Company in order to make public aware about the different services of insurance. Advertisement
method in the company can be implemented by applying repetition, promotions and bandwagon.
Repetition is the effective technique of the advertising which is used to build identity awareness
and customer memory. Tower Insurance Company can use other successful approaches mention
the name of the company more than once. It will include the advertisement on televising because
T.V. has the combination of sight and audio which permits the advertiser to costume the
repetition by changing its delivery (Harris, Musgrove, Ernstberger, Cox & Choi, 2017). On the
other hand, bandwagon technique is also effective for it which will facilitate company in
convincing the target customers in competitive environment. The approach of promotion can be
used by the company to sell its service to the customers. Coupons, offers, prizes and involvement
will be enthusiasm clients to create the relationship with the sponsoring the services of the
company.
Merits of the advertisement techniques
Advertisement technique is helpful in bringing new services to the consumers along with
offering adequate advertising facilitates in marketing of the different services given by the
respective company. It will be helpful for Tower Insurance Company to increase the number of
customers because advertisement is the approach of targeting the customers. The unnecessary
cost of the company can be reduced with the help of advertisement technique by eliminating the
middleman (Khang, Han, Shin, Jung & Kim, 2016). The advertising method will facilitate in

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enhancing the morale of the employees as challenge will come at the workplace with new
opportunities to utilize and develop their skills (Terkan, 2014).
Demerits of the advertisement techniques
However, advertisement is the effective technique to promote services and products of the
company. It has some negative impacts as well which may influence the Tower Insurance
Company. It is an expensive function because it is considered as an indirect cost which is added
into distribution expenses of the company. Advertising is an economic waste because unbalanced
advertising is the reason of specific goods to cost more than they should. Advertisement of high
policies of luxury things influences the buying power of customers (Marotta, Zhang & Acquisti,
2015). Thus unnecessary advertising in Tower Insurance Company builds societal corruption. It
has been analyzed that there are many similar products in the market which are advertised. For
instance, there are many companies of policy that provide the same service, but are advertised as
dramatically different products.
Evaluation of strategy’s success
Tower Insurance Company has implemented the new strategies of advertisement technique to
improve the issues within an organization and keep focus on the accomplishment of vision and
mission of the company.

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Figure 1: Management Expenses
Source: (Tower Insurance, 2017).
The implementation of the effective advertisement technique facilitates organization to focus on
efficiency and productivity. The above image shows that the management expenses reduced in
2017 in comparison of 2016.

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Figure 2: Digital continues to deliver
Source: (Tower Insurance, 2017).
It has been found that online sales enhanced from 9% of new business transactions from March
to September due to advertisement technique. The above diagram shows the online conversion
rate optimisation and improvement.

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Conclusion
Concise summary
In the limelight of above discussion, it has been concluded that advertising is the most efficient
tool of business communication. The report has been made on the Tower Insurance Company
and in this company proper advertising technique has been applied. The major goal of the
advertising method in Tower Insurance Company is to inform, convince and remind customers
about the insurances of the company. Every coin has two aspects which show one face in
positive way and another is negative way. The advantages and disadvantages of the advertising
techniques have been elaborated.
3 highlighted points
Organizational structure: The organizational chart of the company is effective but there should
be some changes in the organization structure. New organizational structure of the company will
be effective than previous chart. The chart should be made by keeping all in the mind and CEO
of the company should conduct the meeting before taking any important decision regarding
employees and changes in the insurance policies and schemes (Lei & Moon, 2015).
Issues in the company
The company should focus on the attractiveness of the vision statement. The implemented
policies and schemes of different insurance should be reached to targeted customers. Along with
that marketing segmentation should be developed in the company which involve specific market
by considering the different characteristics of the customers.

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Usage of advertisement technique
Advertising technique is effective business communication to get the proper attention of the
customers towards the company by providing them efficient knowledge about the products and
services of the company.

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References
Avant, J. A., Kim, K., & Hayes, J. L. (2017). Thirty Years of Advertising Research in Leading
Communication and Marketing Journals: Learning From the Parent Disciplines. Journal
of Current Issues & Research in Advertising, 38(1), 44-64.
Baker, T., & Logue, K. D. (2017). Insurance law and policy: cases and materials. Wolters
Kluwer Law & Business.
Cummins, J. D., & Weiss, M. A. (2013).Analyzing firm performance in the insurance industry
using frontier efficiency and productivity methods.In Handbook of insurance (pp. 795-
861).Springer New York.
Greene, S. G., Tanner, J. R., & Wright, P. (2015). An Analysis of the Impact of the Motor
Carrier Act of 1980 on the Use of Advertising by General Motor Freight Carriers.
In Proceedings of the 1986 Academy of Marketing Science (AMS) Annual
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Grmanová, E. (2016). Influence of selected factors on the efficiency of insurance
companies. Journal of Management, (2), 29.
Harris, M. L., Musgrove, C. F., Ernstberger, K. W., Cox, K. C., & Choi, P. (2017). Differential
Effects of Marketing Messages in Online Advertising for an MBA
Program. International Journal of Technology and Educational Marketing (IJTEM), 7(1),
15-25.

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Khang, H., Han, S., Shin, S., Jung, A. R., & Kim, M. J. (2016). A retrospective on the state of
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Communication And Marketing Journals: Learning From The Parent Disciplines.
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Lei, N., & Moon, S. K. (2015). A Decision Support System for market-driven product
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Marotta, V., Zhang, K., & Acquisti, A. (2015). Who Benefits from Targeted Advertising?.
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Tower Insurance. (2017). 2017 full year results and announcement of entitlement offer.
Retrieved on 21 February, 2017 from:
file:///C:/Users/Geetika_ABSAS/Downloads/171114%20-%20Tower%20Limited%20FY
%2017%20Results%20Announcement%20Presentation.pdf.