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Marketing in Health Care

Presented by
Guru.K
Manager Marketing
Dr.Agarwals Eye Hospital Ltd.
Chennai
What is marketing?

Identifying, anticipating & satisfying

Philip Kotler, Satisfying needs & wants


through an exchange process

P.Tailor, Marketing is not about providing


products or services, it is essentially about
providing changing benefits to the changing
needs and demands of the customer
Marketing in Health Sectors

Health care programs recognize the impact of


price, everything the potential user must go
through to avail himself of the service,
promotion, communication, education, and
motivation

This is called the marketing mix or the 4 Ps of


marketing:

Product, Price, Place, and Promotion


Marketing Mix

Product Mix
Price Mix
Promotion Mix
Place Mix
Product Mix

Brand
Style
Colour
Design
Product packaging
Price Mix
Pricing Strategy
Pricing Policy
Basic Price
Terms of Credit
Discounts
Promotion Mix
Personal Selling
Advertising
Publicity
Sales promotion
Place Mix
Whole salers
Retailers
Mercantile Agents
Physical Distribution
Evolution of marketing

Product emphasis
Sales approach
Marketing or client approach
Segmentation Rural & Urban
Market

Person or group of Health care market


people who have
resources they want
to exchange or Publics
might want to
exchange for a Stakeholders
benefit.
Demand
Negative Irregular
No demand Full
Latent Overfull
Falling Unwholesome
Hospital Product
Medical Service
Medical Training
Medical Education
Medical Research
Products

Existing New
new existing
new Market Product
Penetration Development
Markets

New Market Diversification or


existing Development Total innovation
Marketing needs and wants
Marketing
Understand the customer
Understand the competition
Coordinate company resources
Long-term focus
Profitability
Corporate needs
2. Determining strategy

Market growth rate

Relative market share


Corporate needs
3. Analyze the competition

Existing competitors
New entrants
Threat of substitution
Strategy and planning
Corporate goals
Identify a target market
Develop a marketing plan
Marketing plan
Executive summary
Situation analysis
Objectives and goals
Action plans
Budget
Evaluation
Some examples...
Coca-cola
Star Wars
International Bloopers
Situation Analysis: Internal
Marketing specific issues
Marketing resources
Financial resources
Human resources
Senior management support
Political factors
SWOT Analysis
S = strengths
W = weaknesses
O = opportunities
T = threats
Questions to ask
What changes and trends are taking
place?
How will these affect us?
What opportunities do they bring?
What are the barriers to entry?
Adapting CRM Strategies for the
Healthcare Market
Healthcare Marketing
is Changing

Hospitals are moving from mass


advertising to targeted direct marketing.
Hospitals are very competitive. Look at
the New York City metro area
marketplace.
How do you make sure prospective
patients come to your facility?
Healthcare Marketing
is Changing

Doctors used to be the target of marketing but


has changed to direct to consumer.
Hospitals are developing customer outreach
databases and are using traditional direct
marketing techniques.
Different offers, creative and techniques are
used in direct mail to attract prospects to the
facility.
Healthcare has many of the
same goals as other consumer
marketing companies

Hospitals are no different than consumer


driven companies such as BMG, Time, Inc.,
Boardroom, Pfizer, or Chase, etc.

The business acronyms may be different but


the goals are the same.
Healthcare marketing is
consumer marketing

Patient acquisition: How do I get more


patients coming to my facilities?
Patient retention: How do I get my patients
continuing to use my facilities?
Patient winback: How do I bring back
patients who havent using my facilities for
some period of time?
New Movers: How do I attract prospective
patients in my facilitys footprint?
Healthcare CRM

Tenet Healthcare tested direct response and


database marketing to 3 hospitals in 2000.

Based on the tremendous results the program


was rolled out to 25 additional hospitals in 2001.

An additional 20 hospitals were added in 2002.


Two goals from direct marketing:
1. Increase profitability from existing patients
2. Drive prospects to Tenet hospitals.
Customer Satisfaction and
Service Marketing
Who are the customers in a
hospital?
Patients
Family members
Referral Doctors
Suppliers
Employees

Who is the key customer in the hospital?


What is patient satisfaction?
Patient Satisfaction is hospital services and
its perception by the patient minus patient
expectations
0 = Patient Satisfied
- = Patient Dissatisfied
+ = Patient Delighted
Patient satisfaction measures need to be
developed from the patients perspective
Patients are becoming better informed
Involve patients for making improvements
Patient satisfaction is not Static but Dynamic
Patient Expectations
Good Medical Care Cleanliness
Good Nursing Care Good Coordination
Less Waiting Time Cooperation among
Excellent Hospitality the Staff
Personal Attention Discipline
Courteous Behavior Communication &
Affordable Charges Information
Transparency in
charges and
procedures
Why customer satisfaction?
Health care is generally becoming
competitive
Providers must not only maintain high
clinical standards but also service that
satisfies the patients
To meet the dual challenge, providers
must have an understanding of what
constitutes both clinical excellence
and customer satisfaction
What is Service Marketing?
Examples: Defense, Postal, Education,
health, Religious Services, Hospitals, Airlines,
Hotels, Law Firms, Entertainment, etc
Definition: Activity or benefit that one party
can offer to another that is essentially
intangible and does not result in the
ownership of anything. Its production may or
may not be tied to a physical product
Eye Care-Why do we need to do
service marketing?
Perspective

Public Health
Programme Perspective
Sustainability
Public Health Perspective:
Increasing backlog of Blindness
Low levels of eye care services e.g. CSR
in the Region varies from 500 to 3,500
Crucial to reduce the blindness rate
High geographic & gender disparities both
in the coverage of service as well as in the
quality of eye care.
Demographic transition issues
Commitment to VISION 2020-The Global
Initiative
Programme Perspective
Rising costs of equipments & other
resources
Need to have economies of scale (lower fixed
costs) to sustain
Increase resource utilization due to scarcity
Availability and Affordability of eye services
Make eye care programme effective and
efficient
New services coming to the forefront
Sustainability Perspective
Increasing patient awareness and technology
acceptance
Government as well as the voluntary sector is
under increasing pressure to meet costs.
International NGOs support for operating
expenses have lowered.
Developing a differential price mechanism and
other strategies to become self-sufficient
through user fees and attracting paying
patients.
Private practitioners have also recognised that
goodwill of the community increases their
clientele.
Services
Unique characteristic - 1

INTANGIBILITY
Customer is unable to experience
theproduct prior to purchase
Services
Unique characteristic - 2

PERISHABILITY
Cant be stored
Services
Unique characteristic - 3

INSEPERABILITY
Production & consumption
happen at the same place and cannot
be separated
Services
Unique characteristic - 4

VARIABILITY

Difficulty in establishing consistency in


quality
across Providers or within providers
across Time
across Delivery Centers
Challenges in Service
Marketing
Giving a feel for the product
Managing Demand Fluctuations
Maintaining Quality
Cost Containment
Attitudinal block in using proven
marketing principles in service
marketing
Factors that promote
Demand
- Availability Perspective
Services are available for longer or
convenient hours
Patients are provided information through
Brochures, Publicity, etc on services
available
Services are reliable and offered promptly
Required equipment are available
Patient friendly Systems & Procedures
Factors that promote
Demand
- Accessibility Perspective
Good public transportation
Centrally located
Outreach Programs to reach out to the
Rural People
Factors that promote
Demand
- Affordability Perspective
Standard pricing structure
Charges affordable by most of the
people in the Community
Transparency in Patient Fees no
hidden charges
Simple procedure for getting
free/subsidized care
Factors that increase
Demand
- Promotion Avenues
Structured approach with designated staff
Good Rapport with Community
Publicity through different media
Promotion at Outreach activities
Meetings/seminars for other doctors
Developing a referral network
Promotion through satisfied patients
Industrial tie-up for routine examination of
their employees
Factors that affect Demand
- Attitude Perspective
Reasons for Low Demand:
Sophisticated technology will automatically
trigger demand
Belief that patients, if need eye care, will
definitely come to us
Providing Service as per Providers
Convenience
Systems & Procedures are not patient friendly
Gap between Patients Expectations &
Providers Perception
Lack of patient orientation
Factors that promote
Demand
- Quality Perspective
Skilled Doctor & other staff
Standard Clinical Protocol
Good Administrative System &
Procedures
Courtesy & Politeness
Proper Explanation
Clean environment and comforts meeting
or exceeding expectations
Systems to monitor clinical outcomes &
Patient satisfaction
Factors that promote
Demand
- to the Rural areas & the
Promoting
Reasons for Low Demand: poor
Demand:
No one to Escort Counseling to build
confidence that Staff
Fear of Surgery will take care
Ignorance Health education
No desire for surgery Explain benefits
No time for Surgery Free Transport/Food
No money for surgery Free/subsidized
Surgery
Creative and Offers
Creative and Offers