HCM-325-DQ

Exhibit 2-1-What Marketing Really Is

Most health professionals think of marketing in terms of advertising, public relations, direct mail, or any number of other promotional techniques. All too often in healthcare, the term marketing is used in reference to one of these specific functions, masking the range of activities carried out under the banner of marketing and the extent to which marketing should pervade an organization. Marketing has been defined as any activity related to the development, packaging, price, and distribution of healthcare products, along with any mechanisms used for promoting these products. This definition, however, does not capture the essence of marketing. Marketing is a multifaceted process that involves a wide range of activities, of which the promotional piece (e.g., advertising) is a small—albeit highly visible—part. Marketing involves research, planning, strategy formulation, and a number of activities that have little to do with promotion. (Indeed, promotion is only one of the four Ps that constitute the marketing mix.) Considered in a less pecuniary light, marketing serves the healthcare consumer as a force for health education, an information resource, a guide to decision-making, and an opportunity to make the customer’s perspective known. From the organization’s perspective, the marketing program can provide input into strategic direction, coordinate a wide range of corporate activities, and support the development of a customer service organization. Marketing can make or break the organization’s reputation and can serve as the driving force in relationship development efforts. Marketing—and marketers—are often viewed in a less than favorable light, not only in healthcare but in other industries as well. However, if one understands the true functions of marketing, it is clear that marketing can make a more significant contribution to the success of the organization than is generally acknowledged.