Essentials of Health Care Marketing 2 nd Ed. Eric Berkowitz

1. Essentials of Health Care Marketing 2nd Ed.Eric Berkowitz Chapter 1 The Meaning of Marketing

2. 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

3. Learning Objective 1 • Marketing • the meaning of marketing • Prerequisites for marketing • Who does Marketing?

4. Learning Objective 2 • Marketing mix elements • Product • Price • Place • Promotion

5. 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 Learning Objective 3

6. Needs vs. Wants in Health Care Must Identify “Who is the Customer?” in order to uncover needs and wants. See figure 1-1, The Many Hospital Markets, on page 8. Learning Objective 3

7. Evolution of Marketing • Production Era • Sales Era • Marketing Era • Marketing Concept/Culture Era • Customer orientation • Competitor Orientation • Interfunctional Orientation • Long-term Focus • Profitability

8. Learning Objective 4 • Environmental Forces affecting Marketing • Internal and External Forces • Planning processes • Nonmarketing Driven • Marketing Driven

9. Learning Objective 4 • The Strategic Marketing Process • Stakeholders • Customers • Patients, physicians…refer back to fig 1-1 • Environment • Regulatory • Social • Technological • Economic • Competitive • Society

10. Learning Objective 4 • Target Market

11. Learning Objective 5 • Organizing for marketing • Product-oriented organization • Strategic Business Units • Market-oriented Organization • A Matrix structure

12. 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 • See Figure 1-8 on p. 25

13. Learning Objective 5 • The Changing Health Care Marketplace • Traditional Industry Structure • Evolving Industry Structure

14. 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 who 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.

15. Summary…continued • 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)

16. Summary…continued • Market-oriented organization focuses on major markets or customer groups. • Four prerequisites to marketing success: • Pressure, capacity, vision, actionable steps • Shift from transactional focus to customer retention in marketing paradigm. • Evolution of structure - three main customers of health care industry: • Corporations, MCOs, consumers