MARKETING FOR TODAY’S HEALTH ORGANISATIONS

Presentation to 2014 Combined Education Symposium Dr Jayne Krisjanous School of Marketing and International Business Victoria University of Wellington February 7th 2014

Introduction My journey- how did I end up in marketing?

Marketing and healthcare; close cousins or completely different breeds?

Developing a marketing plan

Hot topics in marketing

Questions

My journey into marketing

“Wow, that’s a strange move” (sic “What’s a nice girl like you

doing here?”)

Marketing and healthcare

Close cousins or completely different breeds?

Is marketing in professional services- still a dirty word?

“Do you think we should put up a billboard outside the hospital to

try and get more patients?”

What do marketer’s do? Making people buy stuff

they can’t afford, deceiving and trapping people,

pushing vice products – gambling, tobacco , sex,

alcohol, sugar

Make people fat, drink too much, greedy, grow up too

quick

Cluttering the environment with ugly advertising,

adding to a non-sustainable future by overuse of

resources and oversupply

Pushing products, dumping products

Big brands exploiting low paid workers, enslaving

workers: diamond mines

Deceiving and trapping people, using skinny models

Spin doctoring Commercialising and branding everything

Or? Informing and

educating the buyer, understands CDMP,

adds choice and variety through competition

Macromarketing, sustainability

Ensuring products are available through

distribution logistics

Increasing market sophistication

Managing customer expectation and

satisfaction

Adding a vibrancy to the landscape of a city

Ensuring stakeholder communication

Cause related marketing and

sponsorships now essential for sport and

NFPs

Increasing equity for brands and shareholder investment

And for health in particular

Creativity and creative appraoches

Creativity to form a solution that will have cut through

++

Segmentation and targeting markets

and audiences

Designing products to meet customer

needs: new product design

Service blueprinting: (hotels, retail, banking,

health), atmospherics and servicescapes

Reaching and communicating with

the right message and through the

right medium

Managing customer expectation,

complaint management and service recovery

Managing stakeholder relationships (including

internal staff audiences),

maintaining loyalty

Changing attitudes and behaviour to

achieve desired outcomes

Designing strategies to compete with

‘competition’

Brand and organizational image

Brand Personality

Assurance of Quality

Reminder and Top of Mind

Communicating a proposition

Managing demand

Creating expectation

Marketers know how to meet needs very well

Joe Camel (1987 to 1997) and The Marlboro Man

Why can’t marketing be used to reverse the behaviours it has been so successful at building?

Social Marketing/ Transformational Consumer Behaviour

Successful SM campaigns aligned with health promotion

So What is Marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

American Marketing Association (Approved October

2007)

OK so: “Colonoscopies are not Colas:

Nedra Weinreich

Health as a changing environment Health consumerism

Commercialisation of medical information

Changing consumer media preferences

Information age/ rapid emergence of new technologies, social media

Health organisations as commercial operations

Service economy, S-D logic

Changing laws- eg., pharmaceuticals

Attractiveness of industry to other disciplines

Acceptance of marketing into health as an essential component of the overall business strategy

Health is a service

Nature of services: Seven Ps

Product, Price, Promotions (communications) Place, People: staff and customers , Processes, Physical evidence Staff are co-producers of the brand: front line

staff empowerment Customer co-creation-S-D logic

An uncommon language? Is there anything on there health organisations wouldn’t recognize?

Customer focused, market orientation (patient centred)

Target market (patients desired)

Target audience s (all stakeholders who we deal with)

Positioning

Goal/ objective setting- where we want to be

Product lifecycle- stage of ‘product’ offerings

Persuasion tactics- encouraging desired behaviours

IMC- delivering the same message in the same way

Service quality and recovery

Segmentation- different sections of the market

Customization (individualised care)

Services mix - the 7 P’s

Service design and blueprinting (the plan)

Crisis communications- considered and effective response

Still more,

Meeting needs and solving problems

Marketing communications

Relationship marketing

Evaluation and feedback

Changing attitudes and behaviour

Quality control and assurance

Branding

Social marketing and health promotion

Servicescapes

Diffusion of innovation

Synchronising with overall strategic plan-resource allocation/ meeting budgets

Ethical marketing

The filling in the sandwich

Practice management plays a critical role in overall running of a successful health care enterprise

Considerations in marketing planning

Is this marketing? What is the overall purpose and context ? : Maintain share of voice, create demand, manage demand, gain ‘different customers? gain capital?, more staff, avoid closing beds, contribute to a review, annual reporting, purchase of new equipment?

Short term or long term, strategic or tactical? What marketing is currently undertaken? What messages in the marketplace are

generated by us, what messages aren’t?

?

Cont.,

Who are our audiences/stakeholders? What are their characteristics? Do we know enough about them?

Do they want to hear from us? What are our objectives? What is the available budget, who decides the

budget? What type of reporting is used within the

organisation ? Who will write the marketing plan in the

organization? How often is it looked at? For the ‘problem’ or ‘issue’ What will be an excellent

outcome? What will be an acceptable one?

The marketing plan

Executive summary and TOC A description/overview of the issue you aim to

address. A comprehensive situational analysis,

synthesizing primary and secondary data Segmentation, description and analysis of

target market/s Desired positioning and statement Discussion of the marketing objectives: use

SMARRTT criteria. A description of the marketing strategy to be

applied.

Objectives

Derived from business objectives

Objectives that marketing can do something about

Written with SMARRTT criteria

Revisited often

Measured

Short term and long term

The marketing plan cont.,

Services mix- 7 P’s- the engine room of the plan

Product,

Price,

Promotions (communications)

Place,

People: staff and customers

Processes,

Physical evidence

Branding decisions (for example: name, symbols, logos, desired brand personality)

Big idea/creative strategy

Allocation of budget: top down or bottom up

Identification of risk: management of these

Implementation timeline

How success is to be evaluated and measured.

Would you take off in a 747 if you knew

the pilot had no fuel gauge?

Importance of financial literacy for marketers

How do you measure?

Brand awareness

Satisfaction- what do target audiences think of us?

Customer ‘purchase’ patterns

Reputation and engagement in community

Reasons for customer attrition

WOM, online ‘chatter’

Service recovery success

Is an absence of complaints reassuring?

What are marketing’s hot topics at the current time Relationship marketing -still relevant today

Servicescapes

Service-Dominant Logic (S-D logic) and Customer Value Co-creation

The e-health consumer and e-marketing

Relationship Marketing

Building and maintaining long term relationships with customers that bring about

Loyalty

Commitment to the brand

Spread positive WOM

Mutually enjoyable exchanges

‘Profit’

The Servicescape

The built environment

Comfort

Decor

Signage and getting around

Appearances of staff

Overlaps with other disciplines

‘Cyberscape’

Co-creation in health services Collaboration with the ‘firm’ to co-create the

brand

Customer co-creates ‘value’ for themselves

Draws on external networks

The e-health consumer /e-marketing E-health information- customer collaboration? Role of health organizations in health

information Websites for brand image/ reputation/

communication (announcements, PSA’s, quality links)

Creating attitudes and ‘forming’ relationships Social media- why?? Who will interact and

regularly maintain the site? Dialogue- who is posting? Benefits of Facebook but others?

Summary

Marketing is an essential component of a health organization’s overall strategy

Creates valuable exchanges between the organization and stakeholders

The marketing plan is an important document– relevant, current, objectives regularly measured

The ‘customer’ is a critical co-creator

QUESTIONS