An organization's healthcare marketing plan for an organization - Assignment Example

? Marketing plan in health care: An educational program 25 December SECTION A EXECUTIVE SUMMARY This project has been chosen, because it will deliver key educational information based on the pressing needs of the market. The target markets are the patients of the hospital, particularly the obese, those with diabetes, and the elderly. Communication channels will combine traditional and digital means. They will also focus on attracting the consumers and make them interested in knowing more about healthcare information. The key challenges in preparing this marketing plan is in the research and writing process. The challenges have been surmounted through organizing material, asking help from others, and applying the right marketing concepts to the concerns at hand. INTRODUCTION Healthcare organizations face the same challenges as corporations: the ability to provide the right services to the right market segment at the right place, time, and price. This ability has a clear marketing nature to it, which is why many healthcare organizations are pursuing marketing principles and practices to help them develop and achieve their strategic management goals (Calhoun, Banaszak-Holl, and Hearld 2006). Kotler and Armstrong (1999) define marketing as “a social and managerial process by which individuals and groups obtain what they need and want through exchanging products and value with others” (p.3). The American Marketing Association provides the particular functions of marketing in building relationships that exchange value with one another: “Marketing” pertains to the wide range of “activities and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (cited in Rooney 2009, p.242). Furthermore, Kotler and Armstrong (2004) underscore that the marketing management’s most important task is to develop profitable relationships with customers. These marketing concepts can also be applied to the healthcare services industry, because healthcare is also considered a service that can be marketed to particular groups. This paper will discuss an organization's healthcare marketing plan for an organization. The project concerns a healthcare information awareness campaign that will boost the availability of educational resources for the target market, so that their overall welfare can be enhanced. This will benefit them, as well as the organization, because of reduced delay and absences due to illnesses. This paper will explain the rationale of the plan, describe the external and internal forces affecting the organization, and provide the 4Cs of marketing, including the budget and implementation plan. RATIONALE, DESCRIPTION The healthcare campaign is an educational project that will distribute educational information in diverse platforms: opening a health information clinic, mobile communications, electronic information screen, and gym. In the clinic, a doctor and nurse will be available to answer healthcare questions and train patients or customers about healthcare management skills. Leaflets and other educational materials will also be available at this clinic. That clinic can be named as education clinic, where the patient will get any information needed. The Hospital management can seek for an agreement contract with Etisalat, so that it can send educative material through SMS to the public. The public has to key in keywords and send them to a specific number, in order to access health materials, such as first-aid tips and ways of dealing with hypertension and seasonal illnesses, such as colds and heat strokes. The electronic information screen will be set up in the hospital. This screen is going to be similar to those screens that give directions inside malls. The healthcare screen will contain basic healthcare information and tips. The patients or visitors can click on these screens and choose among diverse healthcare topics, such as illnesses and healthcare management tips. It should be accessible to the physically disabled too, so it should have a voice and text dimension. Healthcare information can also be translated into three languages: Arabic, English and Urdu. Finally, a gym may be open on the hospital which can be accessible to all patients. It is mainly going to be for obese patients who have health problems; however, others may pay a small amount of money to join it. This gym will increase awareness about health too. This project has been chosen, because it will deliver key educational information based on the pressing needs of the market. The target markets are the patients of the hospital, especially the obese (who are at risk for numerous diseases, including diabetes, cardiovascular diseases, hypertension, heart attack, stroke, and several forms of cancers), those with diabetes, and the elderly. The idea for this project came from the organization of this researcher. In the organization, it has been realized that many of the target market members lack knowledge about handling their diseases and that numerous employees are also at risk for diabetes and other common diseases, because they lack healthcare knowledge and healthcare management skills. The use of diverse platforms will also ensure maximum distribution of healthcare knowledge and skills across the target markets, who also have diverse healthcare needs and different ways of accessing information. MARKETING PLAN SITUATIONAL ANALYSIS The general health status is a product of consumer behavior and environment, which can both be enhanced through a market-targeted health promotion and disease prevention project (Chang et al. 2007, p.466). The United States and other countries significantly spend on their healthcare budget in treating illnesses, when it can also be used to finance prevention measures; prevention can reduce the risks of developing illnesses, as well as help manage existing illnesses (Chang et al. 2007, p.466). The community is identified as requiring a healthcare education program, because of the prevalence of different illnesses, such as cancer, hypertension, several cancers, and diabetes. Like Chang et al. (2007), this paper believes that it is important to have a prevention dimension to health care, which can be attained through healthcare education projects. At the organization level, it has been realized that many of the target market members lack knowledge about handling their diseases and that numerous people are also at risk for diabetes and other common diseases, because they lack healthcare knowledge and healthcare management skills. If only they can access healthcare information in efficient ways, they can be educated to take care of their health and avoid developing illnesses, or if they already have these illnesses, they will be better equipped with the knowledge and skills required to treat and/or manage them. Furthermore, the market needs multiple service channels that they can access, so that they can easily retrieve valuable healthcare information and develop and reinforce needed healthcare management skills. The use of diverse ways will ensure maximum distribution of healthcare knowledge and skills across the target markets, who also have diverse healthcare needs and different ways of accessing information. This project has been chosen, because it will deliver key educational information based on the pressing needs of the market. The target markets are the patients of the hospital. The market is also concentrated in Abu Dhabi, although this can also be applied to other locations that have similar market characteristics, environmental resources and systems, and healthcare needs. MARKETING ANALYSIS Before marketing a health product or service, it is critical to understand what the market needs, before it is developed, and then offer an opportunity to meet that need in ways that are persuasive enough for them to attain the service (Prue and Daniel 2006, p.79). The social exchange should lead to a “mutually bene?cial outcome for patients and their providers” (Prue and Daniel 2006, p.79). The first step to preparing the marketing plan is the marketing analysis. It is the part that understands how the environment will affect the marketing plan, because the environment also influences consumer budget, needs, lifestyles, and preferences (Kotler and Armstrong 2004). SWOT Analysis Strengths Management support. The management supports the endeavor to launch a healthcare education project. They know that prevention is better than cure, because it will reduce the costs of treating diseases. Spreading healthcare information and skills to patients can improve their recuperation and ability to also reduce risks to family members. Market research system. The company also has a market research system already that can be tapped to understand the market's healthcare needs and preferences, as well as consumer lifestyles and behaviors that impact their health. This market research system can be exploited to help design an effective healthcare educational plan for this project. Weaknesses Lack of operations management system for managing this project. The provision of health services entails handling the operations management (OM) issues of integration, coordination, and control (Lillrank, Groop, and Malmstrom 2010, p.595). Knowledge management is important to interconnect different forms and content of medical knowledge into logical projects (Lillrank, Groop, and Malmstrom 2010, p.595). Different service elements must be also be linked in time and space by translating them to processes, workflows, and pathways that can adapt to different circumstances (Schmenner and Swink 1998). The organization lacks the OM system that can address the needs of the project. This system has to be designed first to help implement the diverse dimensions of the project. Organizational culture. The culture of the organization is not yet prepared for technology-based healthcare prevention strategies. There is more emphasis in treating illnesses and it will be hard to change the mindset of people toward early prevention and getting timely healthcare information and knowledge. Work overload is also existent and there is a need to hire more members that will take care of these new healthcare education measures. Opportunities Market segmentation and enhancement of effectiveness of healthcare service delivery. Lillrank, Groop, and Malmstrom (2010) point out that: “Health care clearly is too huge and too diversified to be treated as a single industry with one perspective on and one solution to operations management” (p.595). Based on the complexity theory, a conceptual lens can show that what seems to be complex and varied can be broken down into relevant and simple patterns (cited in Lillrank, Groop, and Malmstrom 2010, p.595). Health care can also be segmented into parts that are more manageable because of existing homogeneities (Lillrank, Groop, and Malmstrom 2010, p.595). Mobile content demand. An increasing number of consumers, especially those with smartphones, are interested in accessing information and content through their cellular phones. Solomon (2011) highlights that mobile phones can provide “a critical format to deliver the information that people need-and want-about their health care” (p.29). Threats Increasing number of hobbies and distractions. The modern world is filled with numerous hobbies and distractions. Though an initial small-group survey of the market shows that there is an intention to use the services of this project, it is possible that the intentions will not translate to behaviors (Fogel and Janani 2010). Competition. Competition from other healthcare information sources is also intensifying. Bhalla, Evgenlou, and Lerer (2004) underscore the existence of numerous healthcare organizations that are using customer relationship management (CRM) systems and approaches to their marketing plans. CRM technologies aim to retrieve better customer data and to standardize approaches to the management of organization-market interactions (Bhalla, Evgenlou, and Lerer 2004, p.371). MARKETING STRATEGY 4 CS A comprehensive marketing plan defines the market, determines competitors and risks, identifies the service offering after a SWOT analysis, and designs the 4Cs (Knowlton and Penna 2003, p.201). Consumer The target markets are the patients, especially the obese (who are at risk for numerous diseases, including diabetes, cardiovascular diseases, hypertension, heart attack, stroke, and several forms of cancers), those with diabetes, and the elderly. They are not highly educated and need quality healthcare information. They are in need of healthcare education and healthcare management skills. They do not have the money to pay for regular, private hospital checkups or consultations. Many of them, nevertheless, have cellular phones. Cost The clinic will provide free healthcare information. The screen will also provide free basic health information. The gym will be free for patients though others can pay a small amount to join it. Priority, nevertheless, will be given to patients. Communication The main forms of communication are electronic, through SMS, e-mails, and even social networking sites. Social media will be maximized in reaching consumers with access to the Internet. Leaflets and other print materials will also serve as additional communication channels. They will discuss main illnesses prominent in the market, such as hypertension and diabetes. They will use simple language to explain the causes and risks of these diseases. They will also have lifestyle and diet advice for high-risk groups. There will also be bulletin boards. They will be updated regularly to highlight one illness per month. The SMS will also contain healthcare information. They will teach basic healthcare management skills too. See Appendix A for communications strategy. Convenience The clinic will be located near the other clinics in the hospital. The electronic screen will also be located in different area around the hospital and there might be 2 or 3 screens in different places, so that more people can access it. The gym will be placed near the clinic or in nearby place, where people can come to it any time during the day. Convenience can also be enhanced by using light-emitting diode (LED) signs or special lights where appropriate. LED signs can be used to improve the prominence of the clinic, gym, and electronic information screen. The health organization Solantic's already use LEDs and an article stresses that “LEDs have proven to be a highly effective and efficient use of marketing dollars and are mentioned frequently in patient satisfaction surveys as one of the ways new customers heard about Solantic” (Bowling 2011, p.21). LED signs are also effective in promoting new healthcare educational services or information, such as free consultations, flu shots, and other medicine immunizations and physical tests in hospitals and healthcare centers that have tie-ups with the organization (Bowling 2011, p.21). BUDGET A budget is a “detailed plan” that will show how financial resources will be acquired and allocated to particular expenditures in a particular time period (Ward 1994, p.57). It is a future plan that is measurable and specific. A budget must be detailed enough to describe the exact expenses and where they will be spent so that management in different levels are informed of what to expect (Ward 1994, p.57). A matrix budget organization will be used, because it will allow a great deal of information to be displayed in an orderly and condensed manner (Ward 1994, p.58). When organized properly, new interrelationships can be identified, such as realizing that there are more costs in delivering certain kinds of services or information. A matrix approach also ensures that no information category will be forgotten (Ward 1994, p.58). In addition, the resources should include both people and equipment needed. For instance, it should identify and allocate money for buying the electronic information screens and the person who will act as the guide for users. It is estimated that the operational budget should include six people: a doctor and nurse for the clinic, two people for the electronic screen maintenance and operations, and two people for the gym, as well as gym equipments. The time period of the budget should also be established. Certain assumptions can be made, such as demand for the information and services, although more realistic data can be gathered throughout time. IMPLEMENTATION/ACTION PLAN The plan will be applied in one year. One to two months will be devoted to planning the project, which will include vital stakeholders, as well as some volunteer target market members. After that, another seven months will be devoted to designing the healthcare information systems and tools that will be used for the project. As mentioned, the healthcare information campaign is an educational project that will distribute educational information in diverse platforms: the clinic, mobile communications, electronic information screen, and gym. Thus, there will be an IS for sending SMS, handling the electronic screen, and the gym consumers. CRM will be included in this system. After that, there will be pilot testing of the project for one month. All these systems will be implemented using a pilot group. The group will be interviewed for their comments and feedback about the systems' quality, content, and convenience. They will be evaluated too for their customer satisfaction. Their comments will be used to improve the system and tools of the project. The remaining months will include the full operation of the project, which will be evaluated every month for the first year of operations. The employees, managers, and consumers will be interviewed for problems, issues, and satisfaction to ensure the continuous improvement of the services being offered to the market. DISCUSSION AND CONCLUSION It is not easy to deploy this kind of project, because of the logistics and technology needed to make them work individually and together. These platforms should be in harmonious too in terms of content and information. For instance, the healthcare content should not contradict each other. In addition, the employees should feel like a team, so that they can collaborate in providing a consistent, high-quality service to patients or customers. They should also be trained to have a marketing perspective in their mindset, so that they will treat patients as customers too and gather marketing information that cannot be retrieved by electronic means alone. For example, their observations on consumer behavior can help understand minor details that may be important factors of their consumption of the services being offered to them. Finally, the organizational culture cannot be changed overnight. Healthcare promotional materials should be enticing to the market. CHALLENGES ENCOUNTERED WHEN DEVELOPING THE MARKETING PLAN The main challenges in developing the marketing plan are the beginning research and writing. First, the research on marketing concepts has been difficult, because English is not this researcher's first language and some references are quite technical in their languages. Nevertheless, the researcher persevered and asked the help of other students and friends to help understand the reading materials. In addition, the researcher conducted an interview on the healthcare information needs of the market. This part had been complicated, because of the lack of interest of some consumers. Apparently, they do not have time or interest in accessing additional healthcare information. The marketing communications plan must be aggressive enough to entice them to use the services. Second, the writing of the marketing plan, especially the 4Cs has been a test of marketing knowledge and skills. There must be enough information, not only about the market, but also about their surroundings and organizational resources, before an effective 4Cs can be prepared. This means that additional environmental scanning is needed that will delve further into the competition, threats, and opportunities in the environment. Also, the promotional materials must be attractive and culturally appropriate too. This means that they should provide also to cultural aesthetics and social norms, while remaining creative enough to attract the public. Reference List Bhalla, G., Evgenlou, T., and Lerer, L. 2004, 'Customer relationship management and networked healthcare in the pharmaceutical industry,' International Journal of Medical Marketing, vol. 4, no. 4, pp.370-379, Available at: Advanced Placement Source [Accessed 22 December 2011]. Bowling, K. 2011, 'Health care goes retail,' Marketing Health Services, vol. 31, no. 2, pp.20-23, Available at: Advanced Placement Source [Accessed 22 December 2011]. Calhoun, J.G., Banaszak-Holl, J., and Hearld, L.R. 2006, 'Current marketing practices in the nursing home sector,' Journal of Healthcare Management, vol. 51, no. 3, pp.185-200, Available at: Academic Source Premier [Accessed 22 December 2011]. Chang, D.I., Bultman, L., Drayton, V.L., Knight, E.K., Rattay, K.T., and Barrett, M. 2007, 'Beyond medical care: how health systems can address children's needs through health promotion strategies,' Health Affairs, vol. 26, no. 2, pp. 466-473, Available at: Academic Source Premier [Accessed 22 December 2011]. Fogel, J. and Janani, R. 2010, 'Intentions and behaviors to obtain Invisalign,' Journal of Medical Marketing, vol. 10, no. 2, pp.135-145, Available at: Academic Source Premier [Accessed 22 December 2011]. Knowlton, C.H. and Penna, R.P. 2003, Pharmaceutical care, American Society of Health-system Pharmacists, Maryland. Kotler, P. and Armstrong, G. 2004, ‘Chapter 1: Marketing: managing profitable customer relationships,' in Principles of marketing, 10th edn, Prentice- Hall, Inc., Upper Saddle River, New Jersey. Kotler, P. and Armstrong, G. 1999, Principles of marketing, Prentice- Hall, Inc., Upper Saddle River, New Jersey. Lillrank, P., Groop, P. J., and Malmstrom, T.J. 2010, 'Demand and supply-based operating modes-a framework for analyzing health care service production,' Milbank Quarterly, vol. 88, no. 4, pp.595-615, Available at: Academic Source Premier [Accessed 22 December 2011]. Prue, C. and Daniel, K.L. 2006, 'Social marketing: planning before conceiving preconception care,' Maternal & Child Health Journal,vol. 10, pp.79-84, Available at: Academic Source Premier [Accessed 22 December 2011]. Rooney, K. 2009, 'Consumer-driven healthcare marketing: using the web to get up close and personal,' Journal of Healthcare Management, vol. 54, no. 4, pp.241-251, Available at: Academic Source Premier [Accessed 22 December 2011]. Schmenner, R.W. and Swink, M.L. 1998, 'On theory in operations management,' Journal of Operations Management, vol. 17, no. 1, pp. 97–113. Solomon, S. 2011, 'Going mobile?' Marketing Health Services, vol. 31, no. 4, pp.28-29, Available at: Advanced Placement Source [Accessed 22 December 2011]. Ward, W.J. 1994, Health care budgeting and financial management for non-financial managers, Greenwood Publishing, Connecticut. Appendix A: Communications Strategy Electronic communication Traditional print communication Face-to-face (clinic/gym) - Simple language, direct language, focus on illnesses, their causes and how to manage them, with pictures to engage the market SECTION B Key learning from the literature Marketing is a social and managerial process. It is a social process, because it includes building and strengthening a wide array of social relationships to market the services. The first relationship is between the management and employees. This interrelationship is critical to delivering quality services to consumers. The second relationship is between the project implementors and the consumers. Implementors should know the market and be sensitive to their needs and concerns. They should exploit CRM, but they should not depend on it entirely. They should remain open to nonverbal behaviors that customers display to express their attitudes toward the offered healthcare education services. The national culture is a high-context one and nonverbal communication is important in their lives. Marketing is also a managerial process that should be standardized and customized at the same time. The use of information systems will be invaluable, but they be designed and used with the users and consumers in mind. These systems should also remain as tools for managing the healthcare services. They are not the ends of marketing itself. In addition, the management should standardize processes that are working. At the same time, they should customize services to the needs of the customers. This means redesigning promotions to changing customer wants and lifestyles. Marketing is invaluable to the healthcare industry. It will enhance how the industry sees and responds to its markets. Marketing analysis tools and the 4Cs will help make segmentation more precise and the marketing plan more responsive to changing customer needs and wants. Finally, marketing provides ways that can measure marketing success, which will also help evaluate the benefits of marketing to healthcare organizations. Relevance of literature to personal experience In my experience, the marketing literature has helped me understand how exactly marketing can be applied to the healthcare industry. I learned that marketing makes sense to health care, because it is basically about relationships that exchange value among different stakeholders. Health care also provides valuable services. Services are intangible, unlike products, but they have real benefits to customers. For instance, this project has the benefits of convenience and improving healthcare knowledge and skills. Marketing can be used to improve strategic management of healthcare organizations, because it provides the analytical and planning tools that will understand the market and help prepare the most efficient and effective healthcare services possible. Marketing, however, is not a black-and-white scientific process. Though it follows science, in terms of following systematic steps in understanding marketing needs and problems and preparing solutions, marketing is about people and people are not easy to understand always. Studies show, for example, the intentions to purchase are not always translated to purchase behaviors. Mediating marketing factors have to be considered, such as actual budget and attitudes when passing over the clinic or educational healthcare screen, for instance. A good marketing plan means that I should strive to identify diverse environmental and individual factors that will impact actual service use and purchases. I will be more sensitive to the different factors that will impact the marketing plan, so that I can consider them in the marketing process. Finally, the marketing literature will also make me more effective in my work, because I have developed relevant marketing skills and knowledge. I now treat patients as customers too, not because they are means to profitable ends, because I honestly want to satisfy their healthcare needs and concerns too. The main focus is the customer and how services can be constantly customized to their needs, demands, and interests. Insight about topic My insights about marketing have been generally negative, because of advertisements that tend to exaggerate the features and benefits of products and services. I also do not think that marketing should be about the “experience” alone, but should also focus on the actual and real benefits to the clients. After this paper, however, I realized that marketing can be turned into social marketing, where people are considered as ends. I believe I am taking a Kantian approach to marketing ethics, because I do not see profitable relationships as justified ends to using people and manipulating them. I will use marketing to make healthcare truly valuable to my customers, so that they will have no problems in paying for and using the services offered to them. In addition, there is nothing wrong in selling services as an “experience.” Experience marketing can differentiate the services from competitors. I am thinking of enhancing the “experience” by embedding technology into human health systems. As for customer relationship marketing, I thought they were limited to sending customers e-mails, mails, or messages online or through SMS, regarding product or service promotions or anything about promoting the product/service sales. I learned that CRM is an informations system too, which makes it a technical part of managing customer information. Nevertheless, I believe that the management should not entirely rely on data but also use observations to verify trends and insights from the CRM data. Lastly, I thought that marketing plans are pull-driven, where companies conduct market research, but they still rely on pulling customers to their products or services. Companies should then have blockbuster products to reel their customers in. I realized now that marketing is about customers first and developing products and services that they need. I hope that this project will respond to an unmet need and that the communications strategy will be enough to entice consumers to use the services. I am concerned though that there will not be enough promotional materials to inform the market about the benefits of the services. I think this is where guerrilla marketing will be useful. I read that guerrilla marketing is grassroots-based and will maximize free social media to achieve marketing goals. I will maximize word-of-mouth marketing if there is not enough budget for technologically-edgy marketing tools. This way, I can enhance the image and usefulness of the services without spending too much on advertisements. Read More