Presentation on theme: "Essentials of Health Care Marketing 2nd Ed. Eric Berkowitz"— Presentation transcript:
1 Essentials of Health Care Marketing 2nd Ed. Eric Berkowitz Chapter 11Promotion
2 Chapter 11 Learning Objectives Understand the nature of the communication processRecognize the alternative components of the promotional mix and their respective valuesAppreciate the range of sales promotion strategies for both consumers and the tradeKnow the alternative promotional strategy approaches for controlling the channel of distribution
3 Introduction Four basic components of promotional strategies: AdvertisingPersonal SellingPublicitySales PromotionCommunication is at the heart of all these tools
4 Learning Objective 1 The Communication Model Sender – person or companyReceiver – target of communicationEncoding or developing the messageMessageChannel to send messageDecoding or interpreting message by receiverNoiseFeedbackSee figure 11-1, p. 294
5 Learning Objective 1 The message Two-sided: Sender presents both pros and cons of service being promotedHave stronger impact on educated consumersComparative messages – Claims relative to the competitionEmotional appeals – humor, fearTesting the boundariesVs. rational appeals
6 Learning Objective 1 The channel Mass communication vs. personal approachHealth Care – traditionally word-of-mouthOpinion leaders
7 Learning Objective 2 The Promotional Mix Four basic components of promotional strategiesAdvertisingPersonal SellingPublicitySales Promotion
8 Learning Objective 2 Advertising – paid and nonpersonal Advertiser can control to whom, when, what and how often the message is deliveredMost effective when buyer awareness is minimalAlso when industry sales are risingWhen service features are not observableWhen opportunities for differentiation are strongWhen service is new
9 Learning Objective 2 Personal Selling Strength – allows for direct feedbackMore direct control over who receives messageMore direct targeting of audienceLimitation – cost, personnel training
10 Learning Objective 2 Personal selling vs. advertising Trade-off Decision making
11 Learning Objective 2Publicity – most common to health care organizationsIndirectly paid form of communicationCredibilityNo control over when or how message is deliveredPlanned vs. unplanned messages
13 Learning Objective 3 Sales promotion objectives To encourage trial usageTo encourage customers to buy more than oneTo acquaint customers with service changesTo identify new customersTo build customer loyaltyTo encourage customers to switch facilities or providers
14 Learning Objective 3 Sales promotion objectives (continued) To gain entry into new marketsTo encourage intermediaries to utilize the facilityTo encourage intermediaries to devote more effort to selling/referring the product or service
15 Learning Objective 4 Factors affecting sales promotion Product life cycleChannel Control strategyPush vs. pullDiscuss push vs. pull strategies
16 SummarySeveral factors are necessary for effective communication. Communication often is affected negatively by noise.Messages can take several forms; they can be one-sided, tow-sided, or emotional.The promotional mix for an organization consists of advertising, personal selling, publicity, and sales promotion.
17 Summary continuedA major advantage of advertising over publicity is in terms of control over the message.Publicity has greater credibility than advertising.Advertising and personal selling each have distinct values. The decision to use one promotional tool more than the other is based on the risk of the decision, size of the decision-making unit, the complexity of the service, the size of the market, and the geographic dispersion of the market.
18 Summary continuedAdvertising and personal selling have differing levels of impact in each stage of the consumer’s decision-making process. The more personal the post-purchase contact with the buyer, the more satisfied the buyer.Sales promotion has been an underused tool of the promotional mix within health care. Sales promotion tactics can be directed to consumers or to the trade.In a push strategy, the promotional efforts are directed to the intermediaries in the channel, while in the pull strategy, promotional efforts are directed to the end user.