In this assignment you will write an engagement letter to your client (a health care provider of your choosing) that defin
In this assignment you will write an engagement letter to your client (a health care provider of your choosing) that defines the business relationship and introduces fundamental aspects of health care marketing.
Scenario
Imagine that you are a health care marketing professional and have been contracted by one of the following health care providers (choose one) to help them create a marketing plan.Choose one of the following provider types, then decide upon a specific service that they offer. Note that you will use this organization in all three of your class assignments and related activities.BusinessGoalExamples of Services(you define)Small Dental/Physician PracticeGain new patients.General services, oral surgery, orthodontics, orthopedics, pediatrics, etc.Department within a hospitalAnnounce a new service.Women’s reproductive services, outpatient dialysis, laser treatments, etc.Health Care Specialty Clinic (such as physical therapy or cosmetic services)Reach a new target market.Disabled veterans, people seeking cosmetic enhancements or occupational therapy, etc.Home Health Care ServiceExpanding services to a new area.Mobility, wound care, therapy, etc.Government or Non-Government OrganizationEducate the public on a health care topic.Mental health, HIV, domestic abuse, anti-smoking, addiction, etc.The client mentioned in their initial contact with you that they have a great service, but they need help with marketing and they want learn about marketing in the context of their business.Your first step is to respond to them with a letter of engagement that summarizes the relationship and aspects of their business to better define and enhance the mutual understanding of the relationship. It should also explain elements of marketing that are unique to health care and the 4 Ps of marketing in the context of their business.
Preparation
- Reflect on the scenario above, choose your provider type and service, and define their specific mission and goal. Note: you will have to be creative in writing the mission, but it should be fairly evident based upon your chosen business.
- Review chapters 2–5 of your textbook. They provide excellent information on basic health care marketing to guide you, so make sure to study them carefully.
- Research local health care providers that offer services similar to one of those listed in the scenario above. Study how they market their services and pay close attention to their social media presence, as you will be working on developing a social media plan in your final assignment. You should also briefly research the service they are providing so you better understand how and to whom it should be marketed.
Instructions
Write a one-page letter (one-page single-spaced) to your chosen provider type and their service (feel free to create a name and any other relevant and important details to provide depth). The letter should be professionally written and formatted, and do the following:
- Introduce yourself and summarize your understanding of the engagement including:
- Provider name, primary goal for engaging your marketing services location or program, service, or organization, and a short description of their service.
- Explain two aspects of marketing that are unique to the health care field.
- Describe your role as a marketer through the lens of the 4 P’s of marketing and the context of this business.
- Explain two main areas or questions that may guide your upcoming market research.
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Chapter 3
Marketing and the
Healthcare Organization
Health Administration Press
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Chapter 3 objectives
Chronicle the acceptance of marketing by healthcare organizations
Provide an overview of types of healthcare organizations
Describe the uses of marketing in healthcare
Describe the role of marketing in healthcare
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Factors affecting the adoption of marketing
Conservative orientation of nonprofit healthcare providers
Acceptance of the importance of profit
Need to serve multiple constituencies
Role of third-party entities
Health Administration Press
Types of healthcare organizations
Healthcare providers
Health product suppliers
Consumer product companies
Pharmaceutical companies
Health insurance companies
Support services
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Health Administration Press
Role of insurance in the healthcare system
Emergence as a major influence
Role in influencing consumer behavior
Role in influencing provider behavior
Impact of the Affordable Care Act
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Health Administration Press
Healthcare providers
Hospitals
General hospitals
Specialty hospitals
Nursing homes
Assisted living facilities
Residential treatment centers
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Healthcare providers (continued)
Physicians
Other clinicians, counselors, and the like
Alternative therapists
Public health agencies
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Health Administration Press
Other key entities
Product suppliers
Consumer health product companies
Pharmaceutical companies
Health insurance companies
Support services vendors
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Health Administration Press
The uses of marketing
Disseminate information
Solicit business
Encourage consumer interaction
Develop and maintain relationships
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Health Administration Press
The evolution of marketing’s role
Initially inconspicuous—not considered “marketing”
Expansion of public relations and communication functions
Establishment of marketing departments
Expansion of marketing’s role in the organization
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Health Administration Press
,
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Chapter 5
Healthcare Consumers and Consumer Behavior
Health Administration Press
Chapter 5 objectives
Describe the healthcare consumer
Compare the healthcare consumer with other types of consumers
Review the variety of healthcare consumers
Describe professional/institutional consumers
Describe consumer segmentation
Discuss consumer behavior
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
How healthcare consumers are different
Consumer purchases often not discretionary
Purchase decisions often not made by the consumer
Consumers usually unaware of price
Limited ability to evaluate products
Experience an emotional aspect not found for other purchases
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
How healthcare consumers are similar
A surprising amount of purchases are discretionary
Consumers exhibit elasticity of demand
Purchases influenced by many of the same factors as other purchases
Financial circumstances affect consumer behavior
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
The healthcare consumer
In healthcare, a consumer is anyone with the potential to use health services
Only in recent years have healthcare organizations thought in terms of “consumers”
Healthcare consumers are different from other consumers in many ways
Healthcare consumers are similar to other consumers in many ways
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
The variety of healthcare consumers
Patients of various types
Professional and institutional customers
Physicians
Other clinicians
Hospitals and other institutions
Employers
Other entities
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Health Administration Press
Trends in international healthcare
American health systems/foreign patients
US health systems overseas
International marketing of US healthcare products
Foreign health systems/international patients
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Health Administration Press
Factors contributing to the growth of international healthcare
Investment in healthcare infrastructure around the world
Prohibitive medical costs in some systems
Growing international medical expertise
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Health Administration Press
Factors contributing to the growth of international healthcare (continued)
Deficiencies in public health systems
Positive patient experiences in other countries
Strong medical travel industry
Opportunity for international travel
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Health Administration Press
International healthcare marketing strategies
For US organizations marketing overseas
For US organizations establishing satellites overseas
For foreign-based organizations hoping to attract international patients
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Health Administration Press
Factors critical to attracting international healthcare customers
Excellent care
Physician thoroughness
Word-of-mouth reputation
Physician recommendation
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Health Administration Press
Methods of consumer segmentation
Demographic segmentation
Geographic segmentation
Psychographic segmentation
Health risk segmentation
Usage segmentation
Payer segmentation
Benefit segmentation
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Health Administration Press
Adopters of innovative health services
Innovators
Early adapters
Early majority
Late majority
Laggards
What factors influence the acceptance of innovative health services?
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Consumer behavior in healthcare
Patterns of consumption of goods and services
Factors that contribute to consumer activity
Hierarchy of consumer needs
Importance of consumer engagement
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Health Administration Press
Consumer decision-making
Problem recognition
Information search
Initial awareness
Knowledge emergence
Alternative evaluation
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Health Administration Press
Consumer decision-making (continued)
Contract assessment
Preference assignment
Purchase decision
Product usage
Post-purchase behavior
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Health Administration Press
,
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Chapter 4
The Nature of Healthcare Markets
Health Administration Press
Chapter 4 objectives
Introduce the concept of “market” as it relates to healthcare
Review methods of delineating markets
Describe the market profiling process
Describe shifts in levels of marketing
Introduce the notion of “effective” market
Describe the changing nature of healthcare markets
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
The concept of “market”
“Market” means different things to different organizations
Usually means the geographic area served by a healthcare organization
For-profits typically serve a “market area”
Not-for-profits typically serve a “service area”
Health Administration Press
Methods of delineating markets
Based on geography
Based on population segments
Based on consumer demand
Based on opportunities
Markets without walls
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Criteria for market delineation
Distribution of patients
Driving time/distance
Anticipated demand
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Geography as destiny (exhibit 4.2)
Interaction between geography and health status and health behavior
Role of geography in determining health status
Health status as a “product” of the community (and not vice versa)
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Geographic units
Political/administrative units
Statistical units
Functional units
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Health Administration Press
Geographic units (continued)
Political/administrative units
Nation
State
County
City
Congressional district
State legislative district
School district
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Geographic units (continued)
Statistical units
Region
Metropolitan statistical area
Census tract
Census block group
Census block
Zip code tabulation area
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Geographic units (continued)
Functional units
Zip codes
Areas of dominant influence
Natural regions
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Health Administration Press
Methods of delineating markets (continued)
Existing patient distribution
Prospective markets
Nongeographic boundaries
Proxy data
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Health Administration Press
The market profiling process
Market size
Market composition
Health status
Health services demand
Availability of resources
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Shifts in levels of marketing
Mass marketing
Target marketing
Micromarketing
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Shifts in levels of marketing (continued)
Mass marketing
Emphasizes organization rather than specific services
Promotes all things to all audiences
Broad-based promotional techniques
Decreasing effectiveness in current healthcare environment
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Shifts in levels of marketing (continued)
Target marketing
Aimed at selected segments of the total market
Typically emphasizes specific services rather than overall organization
Customizes approach depending on the target
Increasingly used in healthcare
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Shifts in levels of marketing (continued)
Micromarketing
Targeted to the level of the individual or household
Involves highly customized promotions
Emphasizes specific promotions to a very select audience
Limited usefulness in healthcare
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
Delineating the “effective” market
Perceived need/demand
Consumer acceptance
Payer mix
Competition
Health Administration Press
Copyright 2020 Foundation of the American College of Healthcare Executives. Not for sale.
The changing nature of healthcare markets
Increasing instability and unpredictability
Demographic trends
Changing consumer attitudes/preferences
Evolving competitive situation
Health Administration Press
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