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HA 4305 marketing
Terms in this set (171)
number of hospital days a particular population spends in a facility and is calculated by the number of patient days accrued per 1000 residents
average length of stay
is a measure of the average number of days patients remain in the facility during a specified period
Early proponent of healthcare marketing
"...the process of planning and executing ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."
a real or virtual setting in which potential buyers and potential sellers of a good or service came together for the purpose of exchange.
refers to the individuals or organizations in that market who are potential customers.
set of people (or organizations) who have an actual or potential interest in a good or service.
a set of potential buyers of a product.
a geographical area containing the customers of a particular organization for specific goods or services.
refers to segments of the population independent of geography.
the total volume of a product or service likely to be consumed by specific groups of customers in a specified market area during a specified period.
-conceptualizing the market.
-determining strategic direction.
-supporting business goals.
-establishing a reputation.
-preforming marketing research.
-developing a marketing plan.
-coordinating enterprise-wide promotional efforts.
-developing relationships (and referral patterns).
-creating a marketing organization.
-educating patients and the general public.
-providing information and referral sources.
-enhancing visibility and corporate image.
-differentiating the organization and its services.
-influencing consumer decision making.
-improving market penetration.
-winning awards versus being effective.
-uses publicity and other nonpaid forms of promotion and information to influence feelings, opinions, or beliefs about an organization and its products.
-carried out by press releases,
press conferences, distribution
of feature stories to the media,
PSAs, and other public-oriented
-mechanisms created for
organizations to communicate
with their publics (internal
to specific customer groups,
patient education materials.
-seeks to present the organization's programs to
the community and establish relationships with
-health fairs, educational programs.
-emphasizes the organization's commitment to the community and support of local organizations.
-maintaining of discourse with a
variety of government agencies.
-cultivating relationships with
politicians and other policymakers.
developing and nurturing relationships with individuals and organizations with which mutually beneficial transactions can be carried out.
any activities or -materials that act as a direct inducement to customers by offering added value to a product.
-health fairs and trade shows, exhibits, demonstrations, contests and games, premiums and gifts, rebates, low-interest financing, and trade-in allowances.
any paid form of nonpersonal presentation or promotion of ideas, goods, or services by an identifiable sponsor transmitted via mass media for purposes of achieving marketing objectives.
print advertisements, electronic advertisements, mailings, catalogs, brochures, posters, directories, outdoor advertisements, and displays.
establishing and exploiting data on past and
current customers and future prospects in a
way that allows effective marketing strategies to be implemented.
-targets groups or individuals with specific characteristics.
-promotional messages are delivered directly to them.
presentation of promotioal material in a conversation with one or more prospective purchasers for the purpose of making sales.
Customer relationship management (CRM)
business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on customer relationships. (coordination important here)
-applying commerical techniques to influence attitudes, knowledge, and behavior of target audiences related to the improvement of individual and community health status.
-goal: influence the social behaviors for the benefit of the target audience and general society (not for the benefit of the marketing organization).
the development of generic messages that are widely broadcast to the entire service area.
focuses on a market segment to which an organization desires to offer goods/services.
-a form of target marketing.
-potential customers identified at the household/individual level.
-used when a firm wants to reach customers with a narrow range of attributes.
what healthcare providers are marketing.
the amount charged for a product/service.
additional healthcare implications involved also.
the manner in which goods/services are distributed.
not simply location.
any way of informing the marketplace that the organization has developed a response to meet its needs.
how the product/service appears from the outside.
think of those within and outside of the organization.
Consumer health products
-Includes "cosmeceuticals" and "nutraceuticals
-Various household items.
-Alternative therapies (CAM).
Geographically based market
the most common method for defining a market.
-broken-down levels of geographic market areas.
-Possibly unique demographics, psychocharacteristics, etc.
-May be very broad/narrow.
using the service itself to delineate the market.
in healthcare, where gaps in cost, quality, and access presently exist.
Markets without walls
no geographic boundaries or population segment parameters.
-Current customer distribution/point of origin
-Estimated effective markets for areas that are interspersed with populations with other characteristics
-Proxy data may assist
How do healthcare marketers profile?
-Health services demand.
-Availability of resources.
What are the three levels of marketing?
Any person (or entity) with the potential to consume a good or service.
Healthcare market segmentation:
Dimensions of Quality
Ability to perform the promised service dependably/accurately.
-Implicit and explicit.
Willingness to help with any problems that arise during service delivery. Is what happens during regular mass customization efforts.
Striving to truly understand the patient's concerns, as a person.
An understanding and confidence in the healthcare being provided.
What is the most important dimension of quality?
-Physical evidence present in a transaction or interaction.
End-user typically does not make the decision to purchase the service.
Family members, counselors, other health professionals.
PCPs, insurance plan personnel, discharge. planners
Family members, PCPs, caregivers.
Employers, business coalitions.
Steps in consumer decision making:
Who ran an ad for the Maricopa County Legal Aid Society?
Bates v. State Bar of Arizona
1977. First Amendment rights upheld.
-"Lawyer advertising is essential to meet consumer needs and legal access in society."
JFK's Consumer Bill of Rights
-The right to safety.
-The right to be informed.
-The right to chose.
-The right to be heard.
Expansion of rights by the United Nations
-The right to satisfaction of basic needs.
-The right to redress (remedy).
-The right to consumer education.
-The right to a healthy environment.
techniques used to communicate with customers/potential customers for purposes of promoting an idea, organization, or a product.
the combination of techniques constituting a given promotional strategy.
SADPP or adsP^2
any type of promotion that draws general attention to an organization without targeting a specific audience.
-Oral presentation of information through a conversation with one or more prospective purchasers for the purpose of generating sales.
-Key personal selling characteristic: two-way communication.
any nonpersonal form of promotion.
an outline of the objectives for an advertising campaign, target audience, and vehicles used to reach the audience.
What is the most traditional form of promotion?
What has been popular with hospitals and health plans?
-The application of commercial marketing techniques to the development and implementation of programs.
-Improving individual and community health status without using traditional media.
-Often used by not-for-profit and government organizations to try and change consumer behavior.
What is the goal of integrated marketing strategy?
achieve synergy between the component parts of the 'promotional mix' to generate an effective approach to communication. (positioning is vital here)
-Marketing industry changes since the 1990s.
-Filtered down into newly adopted healthcare marketing techniques.
-Termed, "innovative" or "emerging" marketing techniques.
Emerging marketing techniques
-Movement from image marketing to service marketing.
-Movement from mass marketing to service marketing.
-"Cradle to grave" relationships more important.
the process of getting closer to the customer by developing long-term relationships.
What are the goals of relationship marketing?
Moving customers up the ladder.
requires the organization to rethink all of its services currently offered, in the context of the new marketing reality.
Direct-to-consumer healthcare marketing
-understand the link between psychographics and consumer behavior for any specific market segment.
-Healthcare is becoming much more consumer-driven.
-Further ability to target healthcare market segments continues to eliminate potential marketing waste.
Business-to-business HC marketing
-When the consumer/customer is not the patient (directly).
-Targeting of corporate (business) customers, rather than individuals (patients).
-A service provider's efforts to effectively train and motivate its customer service and support staffs to work as a team.
-Goal - to generate customer satisfaction.
-This goal is met by establishing and monitoring organizational objectives. (horizontal integration)
-Family member perks/rewards
-Assistance with insurance paperwork
- use of state-of-the-art technologies now available to healthcare marketers.
-Most often adopted in other industries first, then brought into healthcare after proven useful/effective.
Database HC marketing
Collecting, storing, analyzing, and using information about customers and their past purchase behaviors to guide future marketing decisions.
What are the two requirements needed to meet database HC marketing?
-Customer profile database
-Direct marketing initiatives, based upon the customer segments generated from the database itself
-Very slow to develop in the healthcare arena.
-Key benefits: access to information and branding.
Increased efficiency had to be monitored carefully!
Social Media approach to marketing
-No concise definition.
-And many others...
When a healthcare organization establishes a relationship with a customer (or prospective customer) that involves the customer's participation in brining about a desired behavioral change.
What are the five stages of Change model? (PC-PAM)
-Electronic tools that enhance communication, support collaboration, and enable users across the globe to generate and share content.
-Allows for people to form online relationships for personal, political, and business use.
Difference between social media and traditional media
-Ohh, and also perishable!
A retronym that refers to the state of the World Wide Web and any website design style used before the advent of Web 2.0.
-Scond-generation of Web development.
-Failitates communication, information sharing, interoperability, user-centered design, and collaboration.
Alows for patients to take a more active role in gathering and sharing their health information.
-Primary goal - improving healthcare systems, experiences, and outcomes.
"people interested in healthcare issues" (p. 323); more consumers than organizations using social media, in part because of protected health information
Who are the users of social media?
Health products companies
Government health agencies
Voluntary health organizations
"free exposures, publicity, or word of mouth"
"ads and/or sponsorships"
(organizations): best practice of "developing a social media strategy" (p. 334) that "transform[s...] social media... into...advertising"
(consumers): "Patient-oriented websites": "online communities dedicated to health and wellness"
Image management/damage control
"social media monitoring entails tracking the content of various channels"
safeguard personal information.
ensure that accurate and appropriate content is posted for all personal and professional sites.
patient-physician relationships, privacy, and confidentiality must be maintained.
keep personal and professional content separate while online.
acknowledge that consequences exist and can negatively affect reputations (among patients, as well as other colleagues).
What makes up the organization's product mix?
a tangible product, typically purchased in an impersonal setting on a one-at-a-time basis.
fulfilled through an ongoing process.
Differences between goods and services
Usually the largest difference between the two.
More variation in the delivery of a service vs. the delivery of a good.
-Simultaneous production and consumption.
Primarily pertains to services.
Services are perishable (cannot be inventoried).
value = quality/cost
is a solution to fix any problems that occur during the healthcare process.
similar to HC equity
Attributes of healthcare quality
-Technical Performance - timeliness and accuracy of diagnosis, appropriateness of treatment, and the skill of treatment performed.
-Interpersonal Relationship - how well the provider relates to the patient on a human level.
-Amenities - comfort, convenience, and privacy of the healthcare environment.
-Access - degree to which individuals are able to access required healthcare services.
-Patient Preferences - respect for patient values, preferences, and expressed needs.
-Equity - the application of necessary healthcare services to the needs of all people (particularly race/ethnicity).
-Efficiency - how well resources are used in achieving a given result.
-Cost-Effectiveness - how much benefit results from the healthcare service intervention for a particular level of expenditure.
a product consumers purchase frequently without forethought. dental floss, tissues, etc.
occurs when service performance that falls below a customer's expectations in such a way that leads to customer dissatisfaction.
a product consumers compare to competing brands
a product-often expensive-that carries a brand name
a product or raw material used to produce other goods
a product used to supply or support the provision of goods and services
a product used once or a few times and then disposed of
the coordination of activities across operating units that are at the same stage in the process of delivering services.
-Grouping of organizations that provide a similar level of care.
-Often managed under one large umbrella of administrators.
Levels of HC products
-Levels of care:
Primary, secondary, tertiary, quarternary care.
-Levels of urgency:
Routine, urgent, emergent.
a product used over an extended period
an organization that offers a broad range of patient care and support services.
Semiautonomous, "cradle to grave."
"packaging of services for marketing purposes."
Who is the customer (consumer) of the service in our industry?
Why is demand for healthcare complex?
Price of care often depends on insurance coverage and the specific policy.
Healthcare decisions are very complex.
Healthcare consumers typically have poor information regarding the costs and benefits of any plan of care.
Due to consumer ignorance, healthcare producers (including providers) often have a large influence on demand.
Categories of services
-Facility-based vs. professional services
-Prevention, education, and community outreach programs
may be generated (or influenced) by an intermediary, opposed to simply the end-user
-Conceptualized as the ultimate result of the combined effect of:
Recommended standards of healthcare
Healthcare utilization patterns
when the price of a product is higher than that of its substitute, often the substitute is chosen.
when the price of a product falls, the consumer has more money to spend on products.
products used instead of the product in question.
product used in conjunction with the product in question.
an overall health status of a population
Standards for HC which influence demand
Based upon peer-reviewed, professional association and research studies for each healthcare specialty.
Healthcare demand influencing factors
-structural factors: technological advances, reimbursement changes, etc.
A population's wishes or desires for health services.
-healthcare want levels are elastic
How to measure utilization?
Patient days, ALOS
Physician office visits
Volume of services
Traditional utilization projections
-Straight-line projections (based upon historical trends).
Often not practical due to the multiple confounders in the healthcare context.
As a result, more sophisticated approaches are now necessary.
-Size of the population dictates an assumed level of demand.
Often the most influencing factor in health services utilization.
Demand = (population projection X known utilization rate).
simply a generalized approach taken to meet marketing challenges.
overall development of all business activities.
-Statistical software (SPSS, SAS, private, etc) used to infer demand upon a population based upon pre-programmed characteristics and algorithms.
Multiple regression equations often used, among other quantitative techniques.
specific product/market focus.
marketing mix focus.
"de facto" strategy
in practice or actuality, but not officially established.
What is the overall goal of strategy?
remain strategically oriented with realities of the environment in which one exists (situational context).
a name, term, symbol, or design (or combination thereof) that signifies the goods/services.
visual features that create awareness in the mind of the consumer.
What are the steps of strategic planning?
-Plan for planning
-Gather initial information
-Profile the organization
-Collect baseline data
-Identify health status
-Convert health status to health service demand
-Conduct a resource inventory
the worldwide expansion and interconnectedness of organizations and their associated economies and influence
Factors in US healthcare globalization
-the Internet, computers, and other technologies. They have made it more accessible.
-multinational corporations have flourished. They expanded trade between countries and exerted resources and influence.
-immigration to the US surged in the 1980s and has been growing since
-the forces of supply and demand have been at play
-the middle class has increased demand for high-quality and accessible healthcare
the practice of traveling to another country to obtain medical care; also known as global medicine
Marketing staff can capitalize on and promote the following attributes:
-clinical expertise in a specialty
-distinctive or unique aspects
Marketers who work for foreign-based HCOs may pursue:
-collateral benefit strategy
What is most important to international HC consumers?
-physician skill set
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