Healthcare Marketing Chapter 6 PDF

Chapter 6 Healthcare Marketing  Chapter Objectives Define marketing and the progression of becoming a market-oriented organization. Explain the critical link between strategic management and health care marketing. Explain the major functions that are part of the marketing man...

Chapter 6 Healthcare Marketing  Chapter Objectives Define marketing and the progression of becoming a market-oriented organization. Explain the critical link between strategic management and health care marketing. Explain the major functions that are part of the marketing management process. Define marketing terms, including market segmentation, target marketing, marketing mix, and positioning.  Chapter Objectives (Cont’d.) Evaluate consumer behavior and the decision- making process as it relates to health care offerings and distinguish between marketing approaches. Describe how health care managers can integrate ethics and social responsibility into marketing strategy. Create marketing tactics such as using social media related to the strategic goals of the organization.  Key Concepts Strategic marketing process in health care. Marketing as a critical management function of the organization. Approaches managers use to create, communicate, and deliver value. Marketing mix and marketing plan.  Who Is the Customer? “…the purchaser of product, services, and ideas.” In health care, is the customer the decision- maker, ultimate consumer, or payer?  Historical Perspective Before the 1980s, marketing in health care did not exist. WHY? – Unethical? – Not consumer driven? – Induces demand?  What Is Marketing? The American Marketing Association (2007) defines marketing as "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.“ Source: http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx  What Is Marketing? (Cont’d.) Marketing plays a central role in satisfying customer needs. Marketing activities center on building a sustainable value-driven system for customers, stakeholders, and society. Market-oriented organizations and managers have a relentless focus on creating long-term customer relationships to achieve superior performance.  Strategic Marketing Factors Controllable Uncontrollable Factors Consist of External Factors: the Four Ps: – Political – Product – Economic – Price – Social and Cultural – Place – Technological – Promotion – Regulatory – Competitive Figure 6-3: Strategic Marketing Strategy Process Framework  Marketing Management Health care marketing management is the art and science of selecting target markets, and creating, communicating, and delivering value to selected customers in a manner that is both sustainable and differentiated from the competition. Source: Kotler, P., Shalowitz, J., & Stevens, R. (2008). Strategic marketing for health care organizations: Building a customer-driven health system. San Francisco, CA: Jossey-Bass.  Segmentation, Targeting, and Positioning (STP) Segmentation: process of dividing the total market into groups or segments that have relatively similar needs for products and services. Targeting: choosing market using concentration strategy or multisegment strategy. Positioning: the various techniques used by health care organizations and providers to position the brand image and offerings in the mind of the target market. Organizational vs. Consumer Focus Organizational behavior concentrates on organizational buyers. An example is employers purchasing health care insurance for employees. Consumer behavior refers to consumer decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas. An example is a person choosing a cosmetic surgeon.  Marketing Plan Marketing plan is a written document that serves to guide marketing initiatives across the organization. – Part of the broader strategic plan with a long-term horizon. – Contains specific tactical marketing activities that are more short term in nature. – Developed on an annual or biannual basis.  Social Marketing and Cause-Related Marketing Social marketing refers to the application of commercial marketing principles and techniques to influence behavioral change in a specific target audience in order to promote public health for the benefit of society as a whole. Cause-related marketing links a for-profit company and its offerings to a societal issue, with the goal of building brand equity and increasing profits.  Ethics and Social Responsibility Consideration for outcomes at three levels: 1. Individual – consumer well-being 2. Organizational – goals 3. Societal – health of the public What is your moral responsibility in marketing as a health care manager?  A Sampling of Research Sources Balanced Scorecard Institute Dartmouth Atlas of Healthcare Sg2 Healthcare Intelligence American Hospital Association Henry J. Kaiser Foundation Society for Healthcare Strategy and Market Development To name but a few.  Conclusion The role of marketing in the health care organization is to create, communicate, and deliver value to customers through mutually beneficial relationships. Marketing is a discipline in itself. Health care managers should seek assistance from marketing specialists, strategic planners, advertising agencies, public relations firms, and other consultants.