Primerica Financial Services - Differentiating Between Market Structures

1. Primerica Financial Services -Differentiating Between Market Structures

2. Jeanene L. Baldwin Collins

3. ECO / 365

April 11, 2016

Juan Carlos Ginarte

1. Primerica Financial Services -Differentiating Between Market Structures

1. Primerica Financial Services became a company in 1977 when the company began its revolutionary crusade to transform the life insurance industry. It originated the “Buy Term and Invest the Difference” philosophy which encourages families to purchase affordable term life insurance so they can get the protection they need at a price they can afford and have more money to invest in their family's future. In 2010, Primerica became a newly independent company and is now traded on the New York Stock Exchange under the ticker symbol PRI. It is the largest independent financial services marketing organization in North America. Their goal is to dominate the changing financial services landscape for Main Street North America. ("Primerica", n.d.). 

Primerica's Market Structure

        Primerica's market structure is most directly under perfect competition with some monopolistic competition characteristics. The company decided to compete in the mainstream as a life insurance company. Over the years, the company developed into a full financial services company offering many products and services. The goal has been to help families in all areas of their finances so they will make more income, protect their existing income, become debt free and financially independent. What differentiates Primerica over its competition is the way they market without advertisements and by focusing on educating families that under normal financial industry guidelines would not be able to invest or get the proper assistance they need. Primerica's marketing and business model is unique to the financial services industry. There are a couple of other companies that have tried to imitate them, however Primerica stands out in its unique company quality.

        The way Primerica markets is what sets them apart in how they compete. Primerica uses a word of mouth strategy rather than the traditional marketing methods such as radio, television, direct mail, mass marketing, bill boards, etc. The company's philosophy is to keep the money that could be spent on advertising and use it to compensate its employees and sales force with bonuses and incentives. The founder of the company, Art Williams, created the company to help clients while also taking care of the ones out in the field reaching them. It was important to him to keep the crusade alive to show middle income families that they did not have the information they needed for their families to survive financially.