Running head: DATABASE MARKETING 1
DATABASE MARKETING 6
Database Marketing
Tianna Weston:
MHA626 Strategic Planning & Marketing
Professor Hall :
02/11/2018
Introduction
Database marketing is a form of direct marketing that identifies, collects, and then analyzes relevant information about the organization’s customers. The database is compiled using sets of information like the consumer’s name, phone number, information requests, addresses, purchase histories and any other data that can be legally and accurately obtained through promotional efforts, sales, social media and warranty cards (Tooker, 2008). The major objective of database marketing is to use the data within the database and guide the future marketing decisions. The two components of database marketing are to build customer profile and guide marketing initiatives as per this profile. Database marketing has been highly used in other industries but in healthcare, its adoption has been slow. This is because health care is not like other industries that are driven by incentives to promote the purchase of products. Therefore, this paper aims to analyze database marketing plan for Tanner Medical Center, in Carrollton, Texas in its delivery of healthcare services.
Understanding of Database Marketing in Healthcare
The healthcare business isn't care for different enterprises that are customer driven as the idea of wellbeing basically decides the planning of the buy than the choice of the purchasers.Additionally, the complexity of information involved requires an in-depth understanding of data dimension and different components that if not well evaluated, Tanner Medical Center could fail to adopt database marketing. The complexity of data results when it comes to the generation of adequate margins to be candidates for this kind of marketing and most of the healthcare services provided don’t qualify for this score (Stevens & Silver, 2015). With the available technological capabilities, healthcare organizations require a high level of sophistication, meaning that providers must acquire relatively high-tech solutions to integrate the marketing capabilities. Since database marketing necessitates a combination of analytical skills and technology, healthcare organizations like Tanner Medical Center must be ready to invest a lot of effort in the process. This becomes challenging to healthcare executives who still find it difficult collecting the required information that will respond to the consumer demands.
Tanner Medical Center can apply database marketing in three ways that include the collection of data, the transformation of data into information, and creating and development of business strategies. The health organization can apply database marketing in the collection of data regarding the current and future clients that are helpful in guiding the future marketing decisions. The data collected can also be transformed into information that is vital in productive communication and marketing (Tapp, 2005). This involves utilizing the data to contemplate the buy practices of the present and potential customers so engaged and significant marketing message can be made.Lastly, the data can be used to develop a marketing strategy for the healthcare organization because it’s based on their wants and preferences.
Benefits and Drawbacks of Using Database Marketing
Since database marketing has become universal, it has improved allowing organizations that have implemented it to enjoy its merits. Similarly, it also has its drawbacks, especially in the healthcare industry that has complex data. Improved customer relationship is one of the benefits that Tanner Medical Center will enjoy when it adopts database marketing. This is a marketing mix that improves the quality of client relationship because the health organization will monitor the frequency of the use of their service. This allows it to collect adequate information about the clients and be able to better serve them because they have data about the history of the patient. Database marketing is targeted marketing that will allow the health organization to apply business intelligence to make decisions about the top clients and their common interest (Jena, 2017). The healthcare organization can then collect information about specific links on their websites such as physical therapy or skilled care services that have many views and then it will be marketed as the top priority. This targeting marketing results in improved profitability.
Tanner Medical Center will face a number of drawbacks that are present in healthcare when it comes to database marketing. These drawbacks are ethical or legal issues as they relate to data security, privacy, and confidentiality. Disclosing the medical condition of a client has many repercussions that lead to litigation (Jena, 2017) . Additionally, healthcare buys are not open, despite the fact that this is the sort of procurement that database marketing is helpful. At that point, the wellbeing association must offer their administrations to whoever requires them, making database marketing frameworks hard to execute.Lastly, privacy concerns in the delivery of healthcare can contribute to the organization’s reluctance to implement large-scale database marketing.
Ethical, Legal, and HIPAA Issues to be Considered
Privacy is a major concern in the healthcare industry as the HIPAA privacy regulation determines the standards that safeguard patient’s medical records and other individual health information (Stevens & Silver, 2015). According to the rule, appropriate safeguards should be put in place by Tanner Medical Center to guard the discretion of individual data and set restrictions and terms of the usage and revelation of that information without the authorization of the patient. Therefore, this health facility handling the data of the patient should take precautionary measures to safeguard the privacy of the patients by finding the right balance between the appropriate disclosure of information and privacy (Mukherjee, 2013). The ethical issue that Tanner Medical Center should consider is the use of patients’ information without their permission or consent. The organization should be ethical and inform them or seek permission first.
Why I Would Implement Database Marketing at Tanner Medical Center
Database marketing has enhanced the capacities of health facilities as many organizations have implemented it. The marketing structure offers a tool for the management of chronic conditions because the healthcare facility already has the previous information about the client. It constitutes a thrilling new approach to consumer capturing, retention and follow-up services. The only important issue to consider is finding the right balance between disclosure and privacy. If implemented at Tanner Medical Center, that approach will be applied in clinical trials recruitment and interactive provider directories that demonstrate a passive approach to this type of marketing. Eventually, if implemented appropriately, database marketing will the marketer’s dream. (Mukherjee, 2013)
Conclusion
Database marketing in healthcare is a structured method of marketing that keeps up with different trends in health. Since the modern delivery of healthcare services requires the participation of consumers in the process, database marketing keeps them in the picture. The shift from an emphasis on treatment and cure to wellness and prevention has promoted the initiatives of database marketing as it all about the retention of clients. Therefore, Tanner Medical Center is set to benefits as this system allows the organization to spend less while delivering quality care.
References
Jena, B. (2017). Effective marketing tool for the marketing professionals in healthcare organization: The 4 ‘S’ model. International Journal of Healthcare Management, 1-6. http://dx.doi.org/10.1080/20479700.2017.1402423
Mukherjee, A. (2013). Healthcare law and regulations: a new perspective in healthcare marketing. International Journal of Pharmaceutical and Healthcare Marketing, 7(1). http://dx.doi.org/10.1108/ijphm.2013.32407aaa.001
Stevens, R., & Silver, L. (2015). Strategic Planning and Marketing in Healthcare Organizations. San Diego, CA: Bridgepoint Education, Inc.
Tapp, A. (2005). Principles of direct and database marketing. Harlow, England: Financial Times/Prentice Hall.
Tooker, R. (2008). The business of database marketing. Chicago, Ill.: Racom Communications.