Planning and marketing health services
Helpm31990
9781284094428_SLID_CH01.pptxChapter 1
The Meaning of Marketing
Chapter 1 Learning Objectives
Define marketing and differentiate between a marketing-driven and nonmarketing-driven process.
Distinguish among marketing mix elements.
Delineate between health care needs and wants.
Understand the dimensions of the environment that have an impact on marketing strategy.
Appreciate the ongoing restructuring of the health care industry.
Learning Objective 1
Marketing
The meaning of marketing
Prerequisites for marketing
Who does marketing?
Learning Objective 2
Marketing mix elements
Product
Price
Place
Promotion
Learning Objective 3
Needs vs. wants in health care
Health care professional responsibility demands treatment of needs.
Many consumers are seeking a professional response to wants.
Dilemma!?
Need: A condition in which there is a deficiency of something
Want: The wish or desire for something
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This is a great opportunity to facilitate discussion among students between wants and needs. Have students break into groups of two, and form two lists: Health Care consumer needs; and Health Care consumer wants. The instructor can begin the discussion by listing the examples in the text on p. 6. A patient NEEDS medication for hypertension, or to control cholesterol. A patient may WANT appetite suppression medication. After a few moments, have the students take turns naming the items on each list, with the facilitator (instructor, or student appointee) writing the names where the whole class can see. This always stirs good discussion about the definitions of needs and wants.
Learning Objective 3
Needs vs. wants in health care (cont.)
Must identify “who is the customer?” in order to uncover needs and wants.
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This is a great opportunity to facilitate discussion among students regarding the changing consumer needs and wants in health care. It has been an evolution from the traditional “doctor–patient” relationship to encompass MANY more consumers, as Figure 1-1 indicates. The instructor could adjust the previous exercise between wants and needs to include the different markets. Have students break into groups of two, GIVE EACH GROUP AN IDENTITY AS ONE OF THE MARKETS; and THEN they should form two lists: Health Care consumer needs; and Health Care consumer wants (based on WHICH) consumer that group represents. The instructor can begin the discussion by listing the examples from the text on p. 6. A patient NEEDS medication for hypertension, or to control cholesterol. A patient may WANT appetite suppression medication. After a few moments, have the students take turns naming the items on each list, with the facilitator (instructor or student appointee) writing the names where the whole class can see. This always stirs good discussion about the definitions of needs and wants.
FIGURE 1-1 The Many Hospital Markets
Evolution of Marketing
Production era
Sales era
Marketing era
Marketing concept/culture era
Customer orientation
Competitor orientation
Interfunctional orientation
Long-term focus
Profitability
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Homework Project: Have students research Sentara in Virgina; Lakeland Regional Medical Center in Florida, and other such organizations that may have won quality awards for customer service (Baldridge Award). www.asq.org is a great resource. Students can bring their research back for discussion at a later class.
Learning Objective 4
Environmental forces affecting marketing
Internal and external forces
Greater role of transparency of price
Planning processes
Nonmarketing driven
Marketing driven
Learning Objective 4
The market driven planning process
Outside to inside to outside flow
Market research at two points
Service development
Pre-testing
Customer driven differential advantage
Learning Objective 4
The strategic marketing process
Stakeholders
Customers: Patients, physicians, etc. (see Figure 1-1)
Environment
Regulatory
Social
Technological
Economic
Competitive
Society
Target market
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Now, the instructor could mention a local hospital/health care system, one that most students would be familiar with. Next, the students would be broken into five groups, each group representing one of the “environments.” The students can then do research as to how their representative environment affects the hospital/system in question.
EXHIBIT 1-1 Major Organizations in the Health Care Environment
Learning Objective 5
Organizing for marketing
Product-oriented organization
Strategic business units
Market-oriented organization
A matrix structure
Learning Objective 5
Organizational marketing success requirements
Pressure to be market-oriented
Capacity to be market-oriented
A clear shared vision of the market
Action plan to respond to market
Clinical microsystem approach
FIGURE 1-8 Prerequisites to Marketing Success
Diamond, S.L. and Berkowitz, E.N. Effective marketing for Health Care Providers, Journal of Medical Practice Management, Vol. 5, No. 3, pp. 198.
Learning Objective 5
The changing health care marketplace
Traditional industry structure
Evolving industry structure
Accountable health care organizations
FIGURE 1-12 The Paradigm Shift in the ACO Environment
Summary
Marketing is a process that involves planning and execution of the four marketing mix variables (the 4 Ps).
Effective marketing for health care organizations involves the recognition of multiple customers or markets that often have a diverse array of needs and wants.
A nonmarket-based approach to planning is one in which the conception of the service begins internally.
Marketing-based planning is an external-to-internal process.
Summary (cont.)
The strategic marketing process must consider the broad macroenvironment.
Stakeholders, environmental factors, society.
Health care marketing planning requires identification of the target market.
May differ from the organization’s present customer base.
Product-oriented organization: Services are managed as separate strategic business units (profit centers).
Summary (cont.)
Market-oriented organization focuses on major markets or customer groups.
Four prerequisites to marketing success
Pressure, capacity, vision, actionable steps
Shift in marketing paradigm from transactional focus to customer retention
Evolution of structure—three main customers of health care industry
Corporations, MCOs, consumers
Accountable health care organizations
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