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Healthcare Marketing – The Optimization Scenario
24th August, 2013by Nirmala
Marketing Management | Brand Management | Retail management | Arts Management | Translation Services | Email: [email protected]
Healthcare business is the world’s largest after Retailing.
Healthcare expenditure in Asia-Pacific (APAC) is anticipated to increase by 75 percent by 2015. This is expected to be 33.1 percent by 2015 in the Global Market.
The Indian healthcare industry, was valued at US$ 79 billion in 2012, and is expected to reach US $160 billion by 2017.
It is estimated that for every 1,000 individuals, there are only 6.8 healthcare workers in APAC when compared to Europe and America, with 18.9 and 24.8 workers in 2010, respectively.
Emerging Trends in Healthcare
Potential Healthcare industry is the world's largest industry with total revenues of approx US$ 2.8 Trillion.
In India as well, Healthcare has emerged as one of the largest service sectors with estimated revenue of around $ 30 billion constituting 5% of GDP and offering employment to around 4 million people.
By 2025, Indian population will reach 1.4 billion with about 45% constituting urban adult (15 years+).
To cater to this demographic change, the healthcare sector will have to be about $100 billion in size contributing nearly 8 to 10% of the then GDP.
Emerging Trends in Healthcare
The growth of the Indian healthcare sector is further driven by the 300 million strong middle class population with significant disposable income, which is likely to demand superior healthcare services.
Availability of new media and technologies which helps in Targeted Group Marketing.
There is a huge potential for day care surgeries. Almost 60% of all surgeries can be done in day care mode.
Interestingly, traditional medicine system is an important segment of India’s healthcare industry.
Popular indigenous healthcare traditions such as Ayurveda and Unani, has been gaining prominence.
Opportunities in Healthcare Marketing
India is the most competitive destination with advantages of lower cost and sophisticated treatments.
Due to such promising factors, the medical tourism has great potential in the country.
Favorable demographic virtues offer an attractive market for healthcare providers and investors in India.
In the recent past, there has been an increase in foreign investment inflows and private equity deals in the industry’s various segments.
Opportunities According to Investment Commission of India, the sector has witnessed a phenomenal expansion in the last 4 years growing at over 12% per annum.
As per a recent CII-McKinsey report, the growth of this sector can contribute to 6-7% of GDP and increase employment by at least 2.5 million by 2012 (current being 5% )
Opportunities in Healthcare Marketing
Healthcare Industry
Sector
HospitalDiagnosticsMedical devicesMedical EquipmentMedical Infra StructureClinical trialsoutrsourcingtelemedicinehealth insurance
Some Basics
What is Marketing
Some Basics
The American Association of Marketing defines marketing as, ‘Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual’s and company’s goals.’.
Some Basics
In Simple Terms
Marketing is about creating a
DEMAND for your Product or your Service
The Optimization Scenario
Marketing is about gathering and Optimizing the resources of an organization so as to meet the needs of its customers.
The Optimization Scenario
In the Optimization Scenario – marketing is no more a single person’s (single department) job. In an organization it is everybody’s business
Industry Classification
Need of the hour
The Bare Minimum Fact – Conflict between Operations vs Marketing – the blame game
And the Optimization Scenario is about Integrating Marketing and Operations.
Orient each and every one in your organization to be a CUSTOMER.
Operations
Marketing
Few Examples
Case 1: Marketing Team places an advertisement which promises less waiting time, but when a customer walked in - it took 20 minutes for him / her to meet the doctor. Now whose fault is it?
Marketing or Operations?
Few Examples
Case 2: The company boasts of high standards and quality. A customer walks in and finds dusts every where, cotton wastes etc.
What happens here?
Few Examples
Case 3: Marketing runs an offer ad.
Marketing team had informed the operations head about this offer 3 days before.
Telephone Operator receives a call asking about the offer. She replies that ‘currently no offer is running’.
Whose fault is this?
Few Examples
Sales dropped by 10% this month.
Marketing wants to run a BTL campaign .
Finance says no budget.
The front office staff keeps complaining that Customers are complaining about lack of visibility and the marketing is not placing a board in that road corner.
Marketing says finance has not approved the budget. Finance says management / board has not approved the budget
Why does such a situation arise?
Ready to made Solutions
Ask marketing to inform about their campaigns well in advance.
Establish a proper contact and communication matrix.
Ask the marketing to take budget approvals with finance every time they plan a campaign.
Best thing is to let operations run the business, no no finance should run the business, no no marketing should run the
business…. No no its TEAM work
Newer Approach
If its about team work, Team work is working together as a group (not as separate groups) toward a common goal. To achieve this
A great deal of optimization and change management is necessary.
Open your eyes to - Marketing Operations – most effective discipline in Corporate Marketing.
Reinforce your Marketing with process, technology, metrics, best practices and most importantly your people.
Run the marketing function as a fully accountable business by empowering marketing to lead.
Marketing is responsible for demand generation Marketing operations is about performance, financial management,
strategic planning, marketing resource, skills assessment and management.
Newer Approach
Have an annual Marketing Plan fed by functional plans that include goals, objectives, strategies, measures, and tactics.
All functions require input from senior management on the company’s goals , Strategic approach and budgets.
This Marketing Plan should be made Top to Bottom, Bottom to Top and combination of both.
Orient each and every employee about the goals, objectives, strategies, measures, and tactics.
Have a Marketing Orientation program for each and every employee (apart from the H.R’s Organization Orientation)
Newer Approach
Each and every employee should be oriented towards the timeline for a marketing activity, the process and the life cycle of the different activities involved in a marketing campaign.
Set your goals, Set your process, get everybody speak the same language.
Internal Marketing is more important than external marketing.
The Program
Service Audit GAP Analysis & Strategizing
Phase-wise implementatio
n
Continuous Evaluation and
Analysis
Standardization
Re-inforcement
Service Audit
Reporting
Feedback
Analysis
SWOT Analy
sis
GAP Analysis & Strategizing
Department-wise
discussions
Expectations &
Lacunae
Feedback Analysis
Strategic Planning
Reporting
Phase-wise Implementation
Reporting
Orientation
Feedback Analysis
Continuous Evaluation & Analysis
MIS & Analysis
EnhancementsQuarterly ReviewsReporting
Standardization
Manual
C.R.M Integration
Reports & Formats
Re-inforcement
Internal
External
http://www.youtube.com/watch?v=ZQzsQkMFgHE
Marketing in the Digital age If you are not online, then you are not on
customers mind.
Kodak’s failure story:
Kodak thought that its new digital technology would cannibalize its film business. Sony and Canon saw an opening and charged ahead with their digital cameras. When Kodak decided to get in the game it was too late. The company saw its market share decline, as digital imaging became dominant.
This blind faith in marketing’s ability to overcome the threat from the new technology proved fatal. Kodak failed to adapt to a new marketplace and new consumer attitudes.
Marketing is not the art of selling products, as Kodak thought. It is that your brand becomes a trusted Partner by offering Customer delight.
You got to be relevant and be in the top of the mind of a customer.
Digital adaptation is much more than presence, it builds relationship. It keeps the customer engaged.
Summary
Due to the lower cost of procedures, India has become an attractive destination for medical tourism, and a base for clinical trials.
The challenges that India Healthcare faces on its way up are optimal utilization of resources, minimizing operational costs, maximizing performance and efficiency and scaling of business to the rapidly evolving technology.
The need is driven by globalization, the accelerating pace of technological change, minimal resources and so many other factors.
first define your optimization objectives, such as maximizing profit, revenue or response rate, or minimizing total marketing cost.
Marketing Management | Brand Management | Retail management | Arts Management | Translation Services
Email: [email protected]
Take home message
Treat your Business Processes as assets and that will directly improve enterprise performance
Marketing Management | Brand Management | Retail management | Arts Management | Translation Services
| Email: [email protected]
Summary
Thank You
