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EXHIBIT 15.1 Functions of Marketing and Strategy

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Presentation on theme: "EXHIBIT 15.1 Functions of Marketing and Strategy"— Presentation transcript:

1 EXHIBIT 15.1 Functions of Marketing and Strategy
(continues on next slide) © 2016 Foundation of the American College of Healthcare Executives

2 EXHIBIT 15.1 Functions of Marketing and Strategy (continued)
(continues on next slide) © 2016 Foundation of the American College of Healthcare Executives

3 EXHIBIT 15.1 Functions of Marketing and Strategy (continued)
© 2016 Foundation of the American College of Healthcare Executives

4 EXHIBIT 15.2 Illustration of Marketing Functions
(continues on next slide) © 2016 Foundation of the American College of Healthcare Executives

5 EXHIBIT 15.2 Illustration of Marketing Functions (continued)
© 2016 Foundation of the American College of Healthcare Executives

6 EXHIBIT 15.3 Major Listening Activities
(continues on next slide) © 2016 Foundation of the American College of Healthcare Executives

7 EXHIBIT 15.3 Major Listening Activities (continued)
(continues on next slide) © 2016 Foundation of the American College of Healthcare Executives

8 EXHIBIT 15.3 Major Listening Activities (continued)
© 2016 Foundation of the American College of Healthcare Executives

9 EXHIBIT 15.4 Examples of Alternative Collaborative Structures for HCO Services
(continues on next slide) © 2016 Foundation of the American College of Healthcare Executives

10 © 2016 Foundation of the American College of Healthcare Executives
EXHIBIT 15.4 Examples of Alternative Collaborative Structures for HCO Services (continued) © 2016 Foundation of the American College of Healthcare Executives

11 EXHIBIT 15.5 Spectrum of Potential Relationships with Organizations
© 2016 Foundation of the American College of Healthcare Executives

12 EXHIBIT 15.6 Matrix of Market Attractiveness and Advantage
© 2016 Foundation of the American College of Healthcare Executives

13 EXHIBIT 15.7 Miles and Snow Typology of Strategic Types
© 2016 Foundation of the American College of Healthcare Executives

14 © 2016 Foundation of the American College of Healthcare Executives
EXHIBIT 15.8 Formal Hierarchy for a Large Marketing and Internal Consulting Operation © 2016 Foundation of the American College of Healthcare Executives

15 EXHIBIT 15.9 Measures for Specific Campaigns
© 2016 Foundation of the American College of Healthcare Executives (continues on next slide)

16 EXHIBIT 15.9 Measures for Specific Campaigns (continued)
© 2016 Foundation of the American College of Healthcare Executives

17 Questions for Discussion
1. Why are the four Ps ordered as product, place, price, promotion? What sorts of questions would the four Ps prompt for implementing the new Well-Baby Program suggested in Exhibit 15.2? How would you answer those questions in a real HCO? © 2016 Foundation of the American College of Healthcare Executives

18 Questions for Discussion
2. Consider a planning team designing a major renovation or expansion of a patient service. Focus groups and surveys will cost nearly $100,000. How might that expenditure pay off? What is your backup plan if you think that’s too much money? © 2016 Foundation of the American College of Healthcare Executives

19 Questions for Discussion
3. How would you justify a hospital’s investment in health promotion and palliative care? Successful efforts could mean less income for the hospital and its doctors and even reduced employment. Identify the stakeholder segments that must be sold on the concept, and propose the best arguments for each. © 2016 Foundation of the American College of Healthcare Executives

20 Questions for Discussion
4. The Managerial Issues section in this chapter suggests that the logistic and strategic support functions described in chapters 10 through 15 create a critical competitive advantage for large-scale HCOs. Summarize the arguments you would make to a trustee of a small not-for-profit HCO that an excellent healthcare system could offer substantial advantages to patients, associates, and community over continued freestanding operation. What questions would you expect from the trustee? © 2016 Foundation of the American College of Healthcare Executives

21 Questions for Discussion
5. The second paragraph of the Managerial Issues section is an indictment of U.S. healthcare that concludes, “the typical hospital is not strategically managed; it is simply drifting.” Could this be true? Is there a counterargument? If it’s true, what should be done about it? © 2016 Foundation of the American College of Healthcare Executives

22 Critical Issues in Marketing and Strategy
Marketing is a broad approach to building exchange relationships. Not limited to patients, it applies to all aspects of the organization’s interfaces with the world. The order of the four Ps (product, place, price, promotion) is important. © 2016 Foundation of the American College of Healthcare Executives

23 Critical Issues in Marketing and Strategy
Markets are segmented. Segments are subgroups with similar needs. Specific segments drive many strategy and marketing decisions. © 2016 Foundation of the American College of Healthcare Executives

24 Critical Issues in Marketing and Strategy
Listening is fundamental to both marketing and strategy. The goal is to understand the perspectives of customers, associates, and suppliers. Both qualitative and quantitative approaches are used. © 2016 Foundation of the American College of Healthcare Executives

25 Critical Issues in Marketing and Strategy
Strategies are framed using the tools of evidence-based management. Strategies integrate the results of the environmental assessment and include quantitative forecasts. Extensive discussions and listening allow stakeholders to gain understanding and agreement. © 2016 Foundation of the American College of Healthcare Executives

26 Critical Issues in Marketing and Strategy
Senior management and governance manage strategic discussion and implementation. Not-for-profit HCOs require a long-term commitment to mission and ongoing use of evidence to achieve excellence. Large healthcare systems can strengthen both the commitment and the evidence-based tools more readily than small organizations can. © 2016 Foundation of the American College of Healthcare Executives


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