GRAPEVINE, TEXAS--Effective insurance marketing goes beyond pricing and focuses on how a company wants to portray itself and the sort of customer they want to reach, a research expert said.

Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, made his comments at the National Association of Mutual Insurance Companies' annual convention here.

Companies, he said, need to understand where they are in the market and where they would like to go. "Look at what you are currently doing," from the perspective of shoppers, he said. Different companies will have different goals.

As an example he pointed to the work done by GEICO. For the past five years or so, he noted, GEICO has worked to increase the awareness of its name, and as a result has raised the awareness level of their brand to roughly 99 percent of the market.

With that awareness level, he said, the company has more recently shifted to trying to differentiate itself from others in the field.

But that advertising does not ensure more business, because brand awareness does not necessarily lead to an increase in sales, Mr. Bowler noted, especially given the increased amount of insurers doing television and Internet advertising.

Even with its high level of consumer awareness, only 42 percent of non-GEICO customers who shopped obtained a GEICO quote. "Less than half of those who knew them bothered to get a quote from them," he said.

What advertising can do is affect the consumer's perception of the company, as either an innovative, responsive or inexpensive company. The effect can help a company reach the specific audience it is seeking, which Mr. Bowler termed as "reach versus relevance."

Carriers can also research which companies are most often quoted along with them for customers. Based on that, he said, "you can adjust your message" to highlight the areas that would benefit a consumer more than a competitor can.

Other factors can also lead to a consumer seeking out quotes and switching to another consumer, he said. While those who have filed a claim do not necessarily shop for a different insurer, according to statistics, he said those who have had a bad service experience from an insurer were far more likely to switch.

Another reason for switching may involve a change in what the consumer is looking for. Another example, he said, can be seen in statistics showing that consumers seeking bundled coverage, such as auto and homeowners, are likely to switch, particularly if their auto insurer does not market a homeowners' policy.

Price is important to consumers, Mr. Bowler said, but it can be a double-edged sword. While price is a strong reason driving consumers to shop around, those who shop based primarily on price are likely to seek out more quotes from more companies.

Overall, though, he said companies should pay attention to consumer perceptions, because those perceptions can shape their actions.

"At the end of the day, perception is reality for the consumer," he said.