Healthcare Marketing

Module ONE Overview

 

Welcome to Healthcare Marketing! In this course, we will explore key marketing principles as they uniquely apply to healthcare management. Throughout the course, you will be provided with the opportunity to engage in the marketing process by establishing marketing objectives, analyzing the market environment, and developing promotions that will effectively market a healthcare product or service.

We begin the course by introducing basic marketing concepts. In this module, you will define key terms and concepts that form the foundation of marketing and will review their application to healthcare. Marketing functions, techniques, and approaches are described as we consider the challenges of adapting traditional marketing concepts to healthcare. Module One establishes a basic understanding as we prepare to expand upon these ideas in future modules.

As a healthcare marketing professional or healthcare manager, you will be expected to support your organization’s marketing efforts. In Module One, you are introduced to marketing planning, which uses a systematic process for promoting an organization, a product, a service, or a program. Marketing planning may be used for a short-term promotional project or may be a component of a long-term strategic plan. Whatever the scope and purpose, a plan should be in place before any marketing activities begin. Throughout this course, you will gain experience with all phases of marketing planning by developing a strategic marketing proposal.

 

 

 

 

1-1 Discussion: Introduction to Healthcare Marketing

Discussion Topic

In this discussion, you will have the opportunity to explore marketing strategies that are specific to healthcare. To begin, introduce yourself to your classmates and instructor. Briefly discuss your background, describe your professional goals, explain what you hope to gain from this course, and share what you enjoy doing in your free time.

Then, read Case Study 2.1 in Chapter 2 of your textbook and reflect on what you know about marketing and the concepts presented in the module in responding.

RMC deemed the campaign a success but was not able to specifically determine which promotional techniques had the most impact. To continue your initial post, discuss what you think prompted RMC to invest the time and resources to develop and promote this service line. From among the marketing techniques employed, which do you think would have been most effective in reaching the target population? Support your response by citing fundamental marketing concepts presented in your assigned readings.

(This is response post will send the posts)

In your response posts, respond to peers who selected a different marketing technique than you did in your initial post. Explain why you think the technique you selected in your initial post was more effective in reaching the target audience. Or describe how your peers’ posts helped you to understand how a different technique might be more effective.)

 

 

 

Example of a peer’s post

I believe RMC saw that the baby boomers were going to be needing support as they aged and they took the opportunity to provide that. RMC used direct marketing to start by using the mailing lists and mailing collateral material to those aged 50-65 to let them know if their new services. RMC eventually used social marketing and media marketing to get the word out to not just those aged 50-65 but to those individuals that may be making healthcare decisions for their loved ones that fall in that age group. I feel that the mixture of marketing techniques is what made RMC’s campaign so successful.

 

 

 

HERE IS THE CASE STUDY

CASE STUDY 2.1

Capturing the “Older Adult” Market

Many healthcare organizations came to see the aging of the baby boom generation as an opportunity to expand their services. Regional Medical Center (RMC, a fictional organization on which this case study is based) responded to this opportunity by establishing a service line devoted to older adults. The intent was to capture the business—and the loyalty—of this large, relatively affluent, and increasingly needy segment of the population. The service line was designed to meet the emerging needs of this population for specialty services such as cardiology, orthopedics, ophthalmology, and urology in a way that would be appealing to this relatively demanding consumer segment.

Because this service was considered innovative in the community served by RMC, an aggressive promotional campaign was undertaken. RMC’s marketing department considered a wide range of marketing options and decided on a multipronged campaign to approach the target population from a variety of directions. The first phase of the promotional campaign focused on internal marketing. It was important that RMC’s employees be familiar with this new program and be able to articulate its merits to potential customers. Many of the customers for the new program were likely to be existing patients of RMC.

Well before the new program was scheduled to open for enrollment, an aggressive PR campaign was initiated. Press releases were distributed, articles were prepared for local publications and professional journals, and celebrity spokespeople were lined up. Simple yet attractive  collateral materials  (e.g., business cards, letterhead, envelopes, brochures) were developed for distribution to prospective customers and to referral agents who might channel customers to RMC. Information was distributed to providers and organizations that might serve other needs of the target population, and the community’s major insurance plans were made aware of the new program and its benefits. Tours of the facility housing the new program were provided to key constituents (e.g., referring physicians and health plan representatives), and open houses were scheduled for both medical professionals and the general public.

The marketing initiative also involved direct solicitation of members of the target population. RMC extracted data from its internal database on existing customers and purchased mailing lists of households that included members aged 50 to 65. Using the findings from previous research on the “buttons to push” in this age cohort, marketing staff prepared materials that would appeal to the particular needs of older adults. The address lists were then used to mail materials directly to targeted individuals.

While RMC did not want to rely on expensive media advertising for attracting customers, its marketers felt that some media presence was necessary—not only to attract customers who might be missed through the direct mail campaign but also to make the general public aware of this new program. In some cases, other family members might be making decisions for the older adult population, and awareness of this program on the part of the general public was considered important. After careful research on the communication attributes of family caregivers, a series of newspaper, radio, and television advertisements were produced. These advertisements were placed in the sections of the local newspaper that members of this age group read, aired on the radio stations they preferred, and presented on the television channels they viewed most often. For the electronic media, particular attention was paid to the time of day and day of the week members of the target population were expected to be engaged.

The success of RMC’s new older adult service line during the first year exceeded the expectations of the organization’s administrators. While it was difficult to determine which of the promotional techniques used had the most impact on the program’s early success, the marketing staff concluded, on the basis of its evaluation of the campaign, that it was the integrated approach—a variety of coordinated activities—that led to the successful program launch.

CASE STUDY DISCUSSION QUESTIONS

1.Why did RMC think that older adults presented enough of a market opportunity to establish an entirely new program?

2.What information did RMC need to gather about this target population before the program could be established?

3.What information did RMC need to gather about this target population before the marketing campaign could be planned?

4.What were the different paths through which RMC attempted to reach the target audience?

5.Which marketing techniques did RMC use to reach the target population?

6.Why was internal marketing an important first step in marketing this new program?

 

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