Marketing Your Healthcare Organization Is it really for YOU? Dr. Hesham O. Dinana

Agenda What is Marketing & What it is NOT What is Marketing & What it is NOT Is it Ethical to Market Medical Services Is it Ethical to Market Medical Services The Concepts of Marketing – S.T.P. The Concepts of Marketing – S.T.P. The Tools of Marketing – the 4Ps The Tools of Marketing – the 4Ps The Key to Medical Marketing - Service Quality The Key to Medical Marketing - Service Quality Conclusions Conclusions

Egyptian Marketing? Selling Public Relations Advertising Promotion

What is Marketing? The identification of customers NEEDS and fulfilling them in a profitable manner

(Almost) Anything Can be Marketed Consumer Goods and Services Consumer Goods and Services Business- to- Business Marketing Business- to- Business Marketing Idea, Place, People Marketing Idea, Place, People Marketing Not-For- Profit Marketing Not-For- Profit Marketing

Major Criticisms of Healthcare Marketing Marketing Wastes Money Marketing is Intrusive Marketing is Manipulative Marketing will lower the quality of health care Marketing will cause health care institution to compete Marketing will create unnecessary demand for health care

Why Marketing is For Everyone The purpose of a business is to create a customer… Marketing is not a specialized activity…it is the whole business seen from…the customers point of view. If you focus on the patient and the patients needs you are practicing marketing concept

MYTHS & TRUTHS ABOUT MARKETING Every member of a practice is a marketing specialist every day, whether consciously or unconsciously What medical marketing cant do Overcome unsatisfactory or unpleasant experiences in your practice. Overcome unsatisfactory or unpleasant experiences in your practice. Overcome poor performance by you and your staff. Overcome poor performance by you and your staff. Create a sudden and incredible response. Create a sudden and incredible response. Create a demand for services where no demand exists. Create a demand for services where no demand exists. Produce effective results if the message is misleading. Produce effective results if the message is misleading. What medical marketing can do Increase awareness in your market area and reach newcomers. Increase awareness in your market area and reach newcomers. Encourage current patients to STAY. Encourage current patients to STAY. Generate renewal and referral patients. Generate renewal and referral patients. Increase patient volume for certain services and programs. Increase patient volume for certain services and programs. Support volume at slow times of the year. Support volume at slow times of the year. Improve the attitude and morale of you and your staff. Improve the attitude and morale of you and your staff.

Whats Holding You Back It distracts from my real work It distracts from my real work Fear of imposing on others Fear of imposing on others Sleazy image of selling Sleazy image of selling Pressure to produce results Pressure to produce results

Life is too short to make all the mistakes yourself

Marketing Concepts The Three Questions: 1. Who are we? 2. Who cares? 3. How do we get our message out?

Marketing Tools: The Marketing Mix Product Good, Service, Idea, Place, Person Product Good, Service, Idea, Place, Person Price Assignment of Value Price Assignment of Value Place Availability of Product Place Availability of Product Promotion Activities to Inform Consumers Promotion Activities to Inform Consumers Tools that Are Used Together to Create a Desired Response Among a Set of Defined Customers Tools that Are Used Together to Create a Desired Response Among a Set of Defined Customers

Product Mix length Medical / surgical (45 beds)* Obstetrics (20 beds) Pediatrics (15 beds) Cardiac (ICU) (8 beds) Emergency (4 examining rooms)* Walk-in clinic Outpatient therapies Health education sessions (5 Staff)* Health fair (30 exhibits)* Product line width Inpatient Services Ambulatory Services Health Promotion

Five Patterns of Market Coverage M1M2M3 P1 P2 P3 Product/market concentration M1M2M3 P1 P2 P3 Product specialization M1M2M3 P1 P2 P3 Market specialization M1M2M3 P1 P2 P3 Selective specialization M1M2M3 P1 P2 P3 Full coverage

Resources of Medical Services Technical Quality – –Physicians knowledge – – Ability to make correct diagnosis – –Therapeutic procedures – –Quality of the medical equipment Service Quality. – –The physicians willingness and ability to communicate with the patient. – –A culture of sharing information, and systems enhancing a long-term doctor-patient relationship

Service Quality is IMPORTANT Business with High Service Quality have: Business with High Service Quality have: –12% higher return on sales –6% faster growth rate –10% price premium

Patients as Consumers The majority of your patients are (or will be) sophisticated, comparison-shopping consumers of health care, who are armed with facts, ideas, and concerns that they have reaped from different media, and from their friends, associates, and family. Your patients will assess your medical practice and compare it to other practices where they have previously been and will evaluate your practice against standards THEY consider important. The majority of your patients are (or will be) sophisticated, comparison-shopping consumers of health care, who are armed with facts, ideas, and concerns that they have reaped from different media, and from their friends, associates, and family. Your patients will assess your medical practice and compare it to other practices where they have previously been and will evaluate your practice against standards THEY consider important. How patients "rate" your practice will influence patients to stay with you even if there is a problem. How patients "rate" your practice will influence patients to stay with you even if there is a problem. Consider very carefully what messages you convey about yourself, your practice, and the importance of your patients to your practice. Consider very carefully what messages you convey about yourself, your practice, and the importance of your patients to your practice.

How to develop your medical marketing plan Define your target audience Define your target audience Research your service areas Research your service areas Know your competitors Know your competitors Define your Goal Define your Goal Develop your plan Develop your plan Implement your plan Implement your plan Follow up your plan Follow up your plan

Who are your Target audience Any group or individual that affect the revenue and profitability of your practice. Patients---your current revenue base and major source of referrals. Patients---your current revenue base and major source of referrals. General public---especially those who do not have a doctor and might need your practice someday. General public---especially those who do not have a doctor and might need your practice someday. Referring physicians---send your practice patients needing your services. Referring physicians---send your practice patients needing your services. Special groups---targeted for future services, such as HMO members (managed care). Special groups---targeted for future services, such as HMO members (managed care). Media contacts---need to know what is newsworthy about your practice. Media contacts---need to know what is newsworthy about your practice. Area Employers---pay for health insurance plans for patients, also have employees with occupational injuries, or have applicants needing pre- employment health assessments (preventative AND industrial medicine services). Area Employers---pay for health insurance plans for patients, also have employees with occupational injuries, or have applicants needing pre- employment health assessments (preventative AND industrial medicine services). Government/regulatory agencies---their decisions effect your business. Government/regulatory agencies---their decisions effect your business. Staff members---whose performance greatly determines patient satisfaction and practice productivity Staff members---whose performance greatly determines patient satisfaction and practice productivity Providers---all important to your business, such as laboratories, pharmacies, hospitals, civic groups, salespeople/vendors, etc. Providers---all important to your business, such as laboratories, pharmacies, hospitals, civic groups, salespeople/vendors, etc.

Researching your Service Areas How many people live in your service area? How is the population distributed? How many people live in your service area? How is the population distributed? Age distribution: has the birth rate increased or decreased during the last ten years? Where are certain ages most prevalent? (for example: young families concentrated in newer subdivisions, and older people in established, older neighborhoods) Age distribution: has the birth rate increased or decreased during the last ten years? Where are certain ages most prevalent? (for example: young families concentrated in newer subdivisions, and older people in established, older neighborhoods) Composition of families: Singles, married couples with and without children, single parent families, etc.) Composition of families: Singles, married couples with and without children, single parent families, etc.) Population expected to grow or change? Population expected to grow or change? New industry or new housing expected in your area soon? New industry or new housing expected in your area soon? Median income of those living in your service area Median income of those living in your service area Percentage of the population is employed: percentage of white collar / blue collar Percentage of the population is employed: percentage of white collar / blue collar Industries: types most prevalent, major employers Industries: types most prevalent, major employers Stability of the community and the economy (old and established area VS upwardly mobile living temporarily here Stability of the community and the economy (old and established area VS upwardly mobile living temporarily here Physicians: Dr. to patient population ratio, location of doctors, populated areas around the physician locations Physicians: Dr. to patient population ratio, location of doctors, populated areas around the physician locations

Know your Competitors It is important to know: HOW MANY physicians of your specialty are there in your community or service area, where they are located, and in what concentration. HOW MANY physicians of your specialty are there in your community or service area, where they are located, and in what concentration. WHAT SERVICES your direct competitors provide; in this way you may be able to provide needed services. WHAT SERVICES your direct competitors provide; in this way you may be able to provide needed services. WHAT VOLUME these doctors have; accepting new patients or are they "closed' to new patients? (OPPORTUNITY!) WHAT VOLUME these doctors have; accepting new patients or are they "closed' to new patients? (OPPORTUNITY!)

Key to Patient loyalty feeling for staff and patients that PATIENTS ARE YOUR NUMBER ONE PRIORITY is the only way doctors can make sure they keep their patients by cultivating relationships with them. Key to Patient loyalty feeling for staff and patients that PATIENTS ARE YOUR NUMBER ONE PRIORITY is the only way doctors can make sure they keep their patients by cultivating relationships with them. The actions of the entire staff can make or break a practice. The actions of the entire staff can make or break a practice. An excellent doctor with mediocre staff will not prosper. How well the office does is up to both the physician and the staff. You have joint custody of your practice's patients. Respect your patients. Respect your patients. –Go out of your way to do something nice for each one. –Go out of your way to do something nice for each one. –Memorize names. –Memorize names. –Jot down on sticky paper and place in the chart any personal info you would like to remember (such as a new grandchild, likes to garden, son in college, plays tennis, etc. ) People love to hear someone else remember things about themselves. Focus your attention on the patient, as much as you are able. Focus your attention on the patient, as much as you are able. –Avoid doing three things at once while you are talking to the patient. –Avoid doing three things at once while you are talking to the patient. –Wait until they are finished talking to speak. –Wait until they are finished talking to speak. –Be a good listener. Show empathy. Show empathy. How would YOU feel if you were going through the same situation?

Keeping your current patient On an average, every happy patient can bring you six happy referrals. And conversely, on an average, every disgruntled patient will relay his or her negative message to 26 other people Keeping your current patient On an average, every happy patient can bring you six happy referrals. And conversely, on an average, every disgruntled patient will relay his or her negative message to 26 other people WHY PATIENTS LEAVE THEIR PHYSICIANS Doctor vague and evasive Doctor vague and evasive Poor or no bedside manner (physician) Poor or no bedside manner (physician) Chronically not seen on schedule Chronically not seen on schedule No diagnosis given No diagnosis given Doctor discourages second opinion Doctor discourages second opinion Doctor does not respect confidentiality Doctor does not respect confidentiality Unpleasant office staff Unpleasant office staff

Some ideas on keeping your patient Small assessment cards to be filled by the patient on what he liked most about the service and ideas to improve it Small assessment cards to be filled by the patient on what he liked most about the service and ideas to improve it Reminder calls or cards for their next appointments Reminder calls or cards for their next appointments Birthday cards Birthday cards Reminder notes to yourself that would help to ask about personal stuff your patient cares about Reminder notes to yourself that would help to ask about personal stuff your patient cares about

PRINTED MATERIALS AS A MARKETING TOOL Printed materials are can be an effective image-maker and a positive marketing tool, if your choices are made with care. The printed materials that you present to your patients and other contacts are a reflection on the quality and image of your office. Printed materials are can be an effective image-maker and a positive marketing tool, if your choices are made with care. The printed materials that you present to your patients and other contacts are a reflection on the quality and image of your office. Things you will need to be custom printed: Things you will need to be custom printed: –Letterheads---letterheads should be of letterhead-weight paper, with an impressive look and texture Business cards---business cards likewise should be of heavier weight with impeccable typesetting. Remember that these cards are passed on to others, especially potential patients and referrals. –Patient brochures- –Appointment cards--- –Prescription –Direct mailing brochures.. –Cards: birthday cards, appointment reminder postcards, preventative care reminder cards, thanks you cards for public relations purposes and for follow-up continuity.

PRINTED MATERIALS AS A MARKETING TOOL PRINTED EDUCATIONAL INFORMATION MATERIALS PRINTED EDUCATIONAL INFORMATION MATERIALS –Many types of patient information materials can be obtained free from pharmaceutical suppliers. Information sheets can also be created in your office to meet the specific needs of your practice. –Written explanations given before testing or specialty services are done are especially useful for patients, as well as written instructions regarding medications and prescriptions. Hospitals, clinics, and outpatient services often provide specialty information and instructions. –Written home going instruction sheets can be created in your office, and these help to cut down on the number of phone calls to your office relating to forgotten or misunderstood instructions. –Computerized patient instruction software is also available for the office. These provide written instruction and diagnosis information, and can be customized to include the patient's name and the name of the ordering physician.

The circle of positive outcomes of a good patient-physician relationship.

Rapport + Results = Retention + Referrals MARKETING