Healthcare Marketing

four issues that impact the conceptualization of healthcare products.
1. Level of care- products might be categorized in terms of the level of care they reflect.
2. Level of Urgency- products can be categorized by the level of urgency of the condition to be treated,
3. Medical vs. Surgical Services-The two approaches to care are different and they are implemented by different specialists. Marketer must emphasize the benefits and minimize the risks of the procedures involved.
4. Diagnosis vs. Treatment- Differentiating between types of tests (screening, diagnostic)is important because the same test might be marketed in a different manner according to its use. With treatment procedures, the emphasis is on treatment and cure,and the intent is to restore health.
Why is demand in healthcare a complicated issue? Describe 4 factors that influence health care demand
Demand is imprecise and vague
Psychological – attitudes, emotional response, personalities
Demographic- Sex, age, race, religion, education
Sociocultural- lifestyle characteristics, culture
Economic – type and extent of healthcare coverage available to individuals and families
Can demand for a healthcare service be created?
Yes; introducing new procedures or drugs, modifying diagnostic criteria, and identifying new health problems.
Why do patterns of health services utilization vary widely from community to community when the communities generally share the same characteristics?
Because even though certain segments or groups of people may be the “same” they can still be split up into sub groups
What are the steps in the strategic planning process?
1. Plan for planning
2. State assumptions
3. Gather initial information
4. Profile the organization
5. Collect baseline data
6. Identify health characteristics
7. Conduct a resource inventory
The main market-oriented strategies
Dominance Strategy: Number one player in the market, focus on maintaining this position
Second Fiddle Strategy: The runner-up in the market concedes its second-place status and acts accordingly (aka market-follower)
Frontal Attack Strategy-The organization decides to confront the market leader or major competitors head on
Flanking Strategy-The organization outflanks the competition by entering new markets, cultivating new populations, or offering fringe products.
Why are branding strategies not universally employed by healthcare organizations? Under what circumstances do they appear to work best?
Branding is most effective for products that command a mass market, can benefit from advertising, and can be effectively evaluated by customers-these qualities are uncommon with healthcare services.
Healthcare services are usually provided locally, so national recognition is not always necessary for organizations.
They work best for the pharmaceutical industry and personal health product companies because consumers are more familiar with the brand.
Why is PR a preferred form of promotion for healthcare organizations? list 3 PR vehicles used by healthcare organizations
1. Public Service Announcement-radio, tv, newspaper, magazine
2. Sponsorships on the part of the organization-corporate financial backing for a project or an event
3. Community outreach programs- establishes relationships with other community organizations; health affairs, education programs for community residents
What is the difference between push and pull approaches to sales promotion?
Pull incentives- used to promote consumer goods. Discounts on the customer’s next purchase, cash refunds, coupons, BOGO, consumer contests, loyalty cards, free trials (samples), free products, price reductions, merchandising, & POS displays. (“pulling the customer directly to you”) Ex. Participation in health fairs, offering diagnostic tests, distributing health education materials.

Push incentives- used to influence intermediaries (healthcare providers, organizations) to carry or deliver a product. Ex. Exhibitions at trade shows, professional meetings, conferences.

Why is the Internet and social media growing in importance for healthcare marketers? List and describe two healthcare examples of these emerging promotional vehicles.
Internet provides a vast database of information for marketers to profile markets and target customers. Social media allows marketers to utilize social marketing techniques to better segment a population in order to target audiences, tailor messages, and engage people.

Two examples: Banners, pop up ads related to healthcare, internet based directories of physicians, hospitals, or other providers.

List and briefly describe three marketing and or healthcare factors that are encouraging the adoption of more sophisticated marketing techniques
1. Emergence of electronic modes of communication-information sharing has replaced information hoarding
2. Emphasis on long-term relationships-Careful attention to service needs and quality delivery
3. Direct to consumer movement-Targets narrow population segments and becomes more refined
Three ways healthcare organization can use a customer database? What role does HIPAA play?
1. Database marketing can collect, store, analyze and use information about customers and their past purchase behaviors to guide future marketing decisions
2. Build a comprehensive database of customer profiles
3. Launch direct marketing initiatives based on those profiles

HIPAA-A number of constraints are implicit in database marketing in healthcare. These constraints are legal or ethical and often relate to issues of privacy, confidentiality, and data security.

List and describe four characteristics of relationship marketing? Why has it become more important for healthcare organizations?
1.A focus on customer retention
2.An orientation toward product benefits rather than product features
3.A long term view of customer relationships
4.Maximum emphasis on customer commitment and contact

Relationship marketing has become more important for healthcare organizations because there has been a shift in emphasis from image marketing to service marketing and a movement away from a mass marketing approach to a more targeted strategy. It has shifted to emphasize long term relationships.
Relationship marketing is the process of getting closer to the customer by developing a long-term relationship through careful attention to service needs and quality delivery.