Senior Care 2.0: Your Guide To Marketing Senior Services

Senior Care 2.
Introduction: Senior Care 2.0:
From the ivory tower position, where I have tried to

lower it for 40 years or so, I have experienced the
difficulty of preparing “practice oriented administrators”
to move out into senior care responsibility positions.
College education at its base is an education in abstract
thinking. Programs in applied gerontology or programs
that focus upon administrative skills use the internship
experience to prepare our student to actually function in
a facility.
As any one knows who operates a program, it is difficult

not lose prespective in any dynamic organization or
program. Day to day stresses of internal and external
forces do not allow the administrator to have a "retreat"
every year to take stack on the progress of one's
organization.
What is needed is a volume that one can be picked up

periodically. Brune, Daehn, Graham and Sperr, all
experience administrators, have put together an
entertaining and an easy read. This volume allows the
busy director to set back for 30 minutes to reflect on his
or her activities of the week or month and perhaps adjust
direction.
They deal with such classes issues as mission, producing

a quality services, research needs and pitfalls, overloads,
benchmarks, marketing, return on investment and how to
keep quality personnel. Not in great detail which it the
volume strength. Remember this presentation is
designed to keep you engaged. How? By learning how
1
Your Guide to Marketing Senior Services
experienced leaders of senior service things about

typical issue faced by all administrators.
What is of added importance in this volume? The

authors all come from a deep moral value base. They
understand the debate about bad capitalism vs good
capitalism, or why Bill Gates is pushing for a new form
of capitalism.
They point to the urgent need to rethink all business
practices and more specifically in health and social
service institutions.
For these authors, a major challenge facing our planet as

it warms and fails to create more eguity, is ethic
behavior and the corruption of human souls and daily
living. Heath care corruption in medical care delivery,
hospice care, home care renal care programs, insurance
industry are all but examples that this volume addresses.
These authors’s know that the "bottom line" does not tell
the complete story for any society or for any
professional administrator who is also person of faith.
Dr. Stan Ingman, Director – Center for Public and
Community Service, University of North Texas
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Senior Care 2.0
Foreword
Michael Daehn - The Marketing Guy
You are not only reading a book but undergoing
a unique experiment in writing and education. As
a marketing professor I felt the 500-page
textbooks had lots of data; but not much down-
to-earth and practical information about
marketing. I decided to develop a simple-to-use book
based on seven foundational principles for being a
successful marketer. The result was my first book, “The
Seven Keys to Marketing Genius.”
Over the next year, I was approached by some
churches and Christian institutions for marketing help. In
response I developed my second book, “Marketing the
Church.” Since the basic principles of marketing still
applied, I added sections on how churches could apply
the marketing information to their unique situation.
Kendall Brune (see “Senior Living Guru”) saw
this application and realized that there is a need for
Health Care and Senior Living facilities as well. We met
and discussed putting together a dream team of Health
and Senior Living professionals to add their expertise,
examples, and case studies of how they have applied
these marketing principles in their careers.
Working together we have developed a powerful
and necessary tool for anyone entering this field or
looking to get a leg up on the competition. I’m sure you
will learn a lot from reading the insights of my co-
authors. I know I have.
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Dr. Kendall Brune - Senior Living Guru

It is frightening to contemplate writing your first
book. I would rather tackle the development of a
$50 million dollar retirement community than
put pen to paper. However, after Michael
approached me about or tricked me into,
considering this project. I finally thought, “Why not?” I
have spent the past 20-years developing new healthcare
and retirement communities, turning around poorly run
operations, and shutting down older communities in
order to breathe new life into new healthcare
communities. I have been on projects for both non-profit
and for-profit organizations.
In most cases I have found that employees want to do

the right thing, and that they just need some gentle
direction. Michael challenged me to this task in this
fashion: “If I am a faith-based group that owns a facility
facing financial viability, how can you help?” I
immediately think of my “A” team. They are
professionals on whom I can count to get the job done.
We all have them! Team members always change,
depending on the challenges facing the community. For
marketing and product positioning in the senior
healthcare community, Wes Sperr and Michael Graham
are part of my A Team.
It is my hope that this book will provide readers with
some fundamental principles in marketing their facility.
In all of my turnarounds, I have found gaps in the
marketing plan if there was one present. To have these
seven basic “Key Principles” developed will position
your community on a pattern of recovery and growth.
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Senior Care 2.0
Throughout each chapter we will share our successes

and horror stories of healthcare facility life. I hope an
outcome of this book will be the creation of a blog
(weblog, or online journal) to stimulate more sharing of
stories. Our times in the pits of facility life seem so
lonely. It is nice to know that others have been there and
not only survived but thrived!
All facilities have life cycles in the marketing
process. This is mostly due to the changing of personnel
and/or ownership of your facility. So the seven keys, or
chapters, may be extremely developed or not at all. Your
number one job is to assess the facility’s knowledge and
development in each area. Create a “Marketing Care
Plan” for your facility. In healthcare, we are great at
developing a multi-discipline approach to caring for a
frail person. Your facility might be very frail and soon
die if you don’t take action. Use your gift of assessment
to analyze the problems and develop some solutions.
Good luck and happy learning!
Wes Sperr - The Professor
When it comes to communicating a certain
product advantage to or for seniors, the first
thing to overcome is the stigma “why should I
buy something I really do not want, but may still
require.” The second hurdle to overcome is the
perception problem that these items or services are for
“seniors” or “old people” (a category of which I am
definitely not a member, regardless of my actual
chronological age). The third concern is the difficulty of
marketing a service or product to someone who may not
be the direct end user, such as, a daughter seeking a
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long-term care bed for a parent or a friend or a third

party seeking a similar housing situation.
In past years, many long-term care providers sold on the
basis of need. They spent minimal effort and money to
package the service, product or program because a need-
based positioning approach still filled the beds or sold
the product. Little consideration was made for the
niceties of customer satisfaction or life cycle of
consumer purchasing behaviors. The senior customers
had high turnover rates and were not discriminatory
purchasers; on the contrary, they had sacrificed their
whole lives and this particular purchase, medical or
living experience was just another stepping stone on the
pathway of life.
Thankfully, those days are past and senior choices now
abound. The Baby Boomer generation, known for its
high expectations, individualistic caterings and historic
trend-setting, have now entered a new market niche; that
of senior service purchasers. As owners, administrators,
marketing directors and product providers, we need to
present a clear, concise, and compelling message that
reinforces the desires and values of a dramatically
different clientele base.
Those who respond successfully to this immense
challenge will find the new era very rewarding. Those
who remain in the past will find that their services,
products and situations will no longer be necessary. Our
purpose in this writing is to encourage thoughtful
excellence, distinctive product choices, and
communication that not only addresses the facts of a
situation or product, but also speaks to the heart and
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Senior Care 2.0
emotions of both the decision maker and the end user.

When this standard is reached, the specific merits of any
product or service rises above the competition and
becomes the benchmark by which all similar products or
services are judged.
Mike Graham - Health Marketing Maestro
For the past 15-years, I have seen many changes in the
long-term care industry. When it comes to marketing for
assisted living, retirement or nursing homes, the
long-term care industry has struggled to find its
niche. If you are going to be successful in
marketing, then you need a book that will take
you on this journey. This journey will provide
you with a map, tools and all the necessary equipment to
succeed. Michael Daehn has assembled a team of
experts that includes owners, administrators and
marketing professionals who have dug the trenches and
weathered many storms in the ever-so-volatile healthcare
industry.
For years, I have been asked by those entering the
field if there was a book, a guide, to lay the foundation
for marketing long-term care facilities. Many
newcomers get frustrated because what works in some
industries doesn’t seem to fit the long-term care
industry. They overlook the solid principles of customer
service, positioning and sales. They make the fatal
mistake of not planning. Instead newcomers often
shadow their competition and try to stay one step ahead
of them. Instead of establishing a pricing strategy that
works for the customers, newcomers often continue to
operate “in the box” and wonder why their revenue
never increases. Many others operate from the “strategy
7
of the month club” to see what new programs they can

modify for their residents and families. Yes, there are
those that still believe that purchasing a state-of-the-art
bird aviary will increase their census. What happened?
Where did things go off course? Where is the planning?
Social workers, activity directors, and therapists

have all been thrust into the marketing role by owners
and administrators to sustain the “optimum occupancy.”
Marketing has been confused with public relations and
the essence of planning and strategizing has gone by the
wayside. Administrators and managers have created a
team of people who march out to hospitals bearing gifts
of cookies, mugs and pens. They call this marketing. Not
only does this not produce results, but it gets awful
crowded on that hospital floor with all the competitors.
What is missing in all this?
I never thought I would be involved in creating a
book that outlines the simple principles in marketing.
The Seven Keys to Marketing Genius will take you
through a step-by-step journey into the minds of
healthcare professionals. It includes proven techniques,
strategies and ideas that will guide you step by step
along the way. Marketing professionals are thirsting for
a back-to-basics course that clearly defines the role of
marketing and creates a workable strategy to achieve
success. This book is a must-read for anybody thinking
of marketing in the healthcare industry.
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Senior Care 2.0
Introduction
So you want to be a marketing genius? It is not as
difficult as some say, and you are well on your way
since you are reading this book. “The Seven Keys to
Marketing Genius,” is certain to increase your marketing
IQ whether you are a seasoned professional or a
beginner. There are more approaches to marketing than
Christian churches have denominations. In the case of
churches, each denomination holds certain principles
and beliefs in common; that is what makes them
Christian. In the same way, there are certain principles
that are always involved in the process of marketing.
This book will lay the foundation for sound marketing
strategy, while at the same time challenging common
assumptions. It can be fun to take a rebellious approach,
but you have to know the rules before you can break
them. So keep reading.
Many marketing books jump right into the
promotion process, with detailed instructions on how to
broadcast the marketing message. The problem with that
approach is that if you are sending out the wrong
message, it will not only be ineffective but also be
counterproductive. That is why this book begins with
creating a sound strategy upon which to base the
promotion process.
Because what you are communicating is so
important, this book starts with defining the message
that you are going to broadcast. Key 1: Find Your
Advantage outlines a process for determining what
advantage your product has over the competition.
Having an advantage is core to competing today.
However, without the right team in place to promote the
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message, long-term success is doubtful. Key 2: Define

Your Purpose helps you set a direction for your
company and your product. Once you know where the
company is going, Key 3: Create an Image describes the
process of communicating an identity and brand to the
target audience. The nuts and bolts process of getting the
message across to consumers is laid out in Key 4:
Implement Promotions. Key 5: Build Relationships tells
you how to sustain long-term success and establish
protected relationships with customers. To gauge the
effectiveness of your marketing efforts, you must use
Key 6: Gather Feedback. Since our world is in constant
flux, it is necessary to use Key 7: Adjust to Changes in
order to remain competitive in the marketplace.
I hope this book will give you a grasp of the big
picture and define a format for thinking about the
marketing process. Once you understand the form, I
hope you are bold enough to demonstrate your freedom
to customize, tweak and bend the rules to suit your
purposes. What you do with the information is more
important than remembering a list of facts. As Einstein
said, “Imagination is greater than memory.” “The Seven
Keys to Marketing Genius” is a springboard to
increasing your marketing IQ. These concepts are
intended to provide fertile soil in your mind in hopes that
your own unique ideas will germinate and grow into the
next marketing revolution.
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Senior Care 2.0
Key 1: Find Your Advantage

All marketing focuses on communicating to
customers the advantage of your product over the
competition. To compete in the marketplace, you must
find what your company or organization offers better
than the competition. What unique competitive
advantage do you offer? What are the distinctive
competencies that separate you from the pack? A
Strength, Weakness, Opportunity and Threat (SWOT)
analysis will help you find your advantage.
Kendall
Every facility or community that I was called upon to
consult or operate had a unique product. If you have
been in the long-term care business for long, you
know what I mean. I have worked for more than
19 facilities (on purpose if you can imagine
that!) and every one had a different personality.
Oh yes, there were some similarities, but the
residents, their families and the communities they served
morphed them into something unique.
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The first challenge is to engage this uniqueness and see

if it can be marketed. Sometimes it hasn’t any advantage
and really does the major problem need to be stopped
and redirected immediately. Remember, I said that I was
a turnaround administrator, so this was always my first
order of business.
Many of you have heard about the “Eden
Alternative™” program that received national
recognition for its progressive care for the elderly. I had
the fortune of being part of the research team at the
University of Missouri to publish Dr. William Thomas’
work in a book sponsored by “Project Life.” Dr.
Thomas was a medical director at a healthcare facility in
rural New York. He hated going to the nursing home to
see his patients. It wasn’t his patients that bothered him
but rather the gloomy living environment. Fortunately,
his wife was the speech therapist in one particular
facility and wanted to experiment with how residents
verbally responded in the presence of animals. The
residents loved their new animal friends. The rest is
history. The point is that this facility was no different
than the hundreds of thousands of nursing homes out
there, except that it found a new niche. Families began to
flock to this facility, no pun intended, to get on the
waiting list. The staff didn’t change, but the environment
did. The new “Eden™” culture changed the staff’s
behavior over time.
I visited Dr. Thomas in New York twice to see his
work firsthand and it amazed me so much that I was
certified as an “Eden Alternative™” Administrator,
empowered to change the industry. What I found out
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Senior Care 2.0
was that animals, plants or children are viewed much

differently in every facility. That’s because “culturally”
every facility is part of a larger community. Facilities
naturally become a close unit of similar people.
However, we are not identical. Our residents might have
similar ages or genders, but they are part of a web of life
tied to the outside world.
Look around your facility. Does it reflect the
lifestyles of the greater community? Are the residents
blending in comfortably or are they uncomfortable in
their surroundings? I remember one operator who
remodeled every facility in the same fashion. When I
went to their home, it looked just like our facilities. The
only problem was that we struggled with census in every
facility. The only facility that was doing well was the
one in the owner’s community, which reflected their
history and taste. Spend some time with your residents
and their immediate families to see what values they
share with your facility. It will be an eye- opening
experience! A word of advice, though. Don’t make too
many promises if the list of changes is too long. Most
families are feeling guilty enough placing their loved
one in your facility, so be prepared for complaints.
The “Town Hall Meeting” forum is a good time to
use the SWOT analysis. Place the residents and their
family’s comments on a wipe board in the SWOT
quadrants. These meetings must be facilitated by an
outsider in order to move them along. Your strengths
will surface quickly in this setting. They can’t become
“gripe” sessions for one family. Those issues should be
dealt with an administrator or director of nursing.
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Take those strengths and creatively script talking points

for your tours and marketing presentations to families
and referring professionals. You will be selling the
strengths of the facility as developed by your customers.
Nothing is easier to sell!
In my educational experience, this type of SWOT
process assisted in creating a “Value Chain” analysis. It
is briefly described below.
Resident
Facility Expectations
Expectations
Family
Expectations
Every stakeholder (someone who has an interest

or stake in the care provided) has an expectation of care.
However, their knowledge, values, backgrounds and
communication styles are all different. As marketing
professionals, you have to unlock or decipher the
cultural language or community value systems to break
the code. Each time you drill into the customer’s values,
you move closer to a product that is hard to replicate
with some other provider.
As you develop your value-driven, code-breaking
talents, I hope you will come across some “Aha’s.”
These are the true marketing pearls that take your
facility into the niche that is hard to duplicate. For
example I once turned around a facility in a rural
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Senior Care 2.0
community. I had successfully introduced the Eden

concepts of self staffing, animals and plant life into a
rural farming community facility. It was natural fit for
this small and well connected facility. Unfortunately,
the facility was suffering from poor management and
many federal deficiencies. When I took over the facility
it was on the front page of the St. Louis Post-Dispatch
for poor care. As we introduced the “Eden Alternative™”
principles, through Town Hall meetings, I found that
many of my families had competed in state fair and 4-H
competitions.
First Aha:
The residents and families embraced Eden and off
we ran together. Five weeks later, the federal and state
suveyors commented that the differences in resident life
were amazing and the deficiencies were removed. And
yes, we made it into St. Louis Post-Dispatch again. This
time, however, we were on the back page and the
headlines read, “Facility in Trouble Now Goes to the
Dogs!” Not exactly what I wanted to say…but it gave
us our community pride and niche!
Second Aha:
I was convinced that since “Eden Alternative TM”
had worked at a rural nursing home, it would work even
more in a larger LTC community. So much for thinking!
Fortunately, I kept the Town Hall model of pulling out
information from my immediate community and then
from the community at large. I was gathering
information for my SWOT analysis but implementing
programs before I knew my community. This new
group of residents and families was from a university
community and not interested in the care of animals.
15
After I tried to push them into their laps a resident took a

toy stuffed dog, tied a rope around its neck, and hang it
from my door knob. That was a pretty strong message!
What this community of residents represented was many
civic and business leaders trapped within failing bodies.
They wanted to still have a voice within their “larger”
community. So we set out to define how our facility
could meet this need and build a niche for our
marketing.
First, the residents wanted to elect alderman to
represent each hallway. Then they elected a mayor and
city administrator. An agenda was set and the “Resident
Council” was to be a body that reported lifestyle issues
to their elected officials. These residents (and families)
were empowered to fight for their voice. The first rule of
business was to develop some by-laws, community
organization and then community connectivity. Now, I
don’t know about you, but my degree in healthcare
administration never prepared me to run a city
government. What happened next was amazing. The
elected officials (residents) wrote a letter to the city
officials and invited them to talk to our new community
government! The city mayor responded and the
residents were EMPOWERED!!!
Now, how does this translate into a marketing niche?
Third Aha:
I received a call one day at this facility from a
gentleman whose mother was in the hospital with a
broken hip. He was a city development officer for a
major western city. He had called the city chamber and
community development folks for a referral. He was
surprised at their response. All of them said how
“dynamic” this facility was in its approach to resident
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Senior Care 2.0
care. He called and asked what kind of program we were

running. Who was our consultant? And, how did we get
this kind of response in only six months of operation?
Oh yeah, we were filled in 96 days (120 beds).
He traveled out to our town to personally admit
his mother to our facility. We weren’t the fanciest place
in town, but it was lively. This is the best type of
marketing at any facility. Get the stakeholders to boast
about your facility. Remember, people have a hard time
judging the medical care we provide. They can easily
judge how we meet their caring values and personal
dynamics.
Wes
Senior adult consumers live in a dichotomy of wanting
things to get better, while still remaining the
same, at least as they envision it. Senior care
product and service providers need to identify
with their consumers and declare if they are
creating an advantage through;
¾ doing the same thing better,
¾ doing the same thing as it’s remembered,
¾ doing the same thing more conveniently, or
¾ doing something radical by fulfilling unmet needs
that have always been a problem, have never been
addressed, or maybe even by presenting
something new that expands their horizons.
A level of success can be achieved by finding and
exploiting your particular niche. A product or service
provider need not try to be all things to all people
because that will merely dilute any perceived advantage
they may have. A focused approach on a handful of
17
specific distinctions will help both the consumer and the

staff to realize the specific advantage you may have over
your competitors. It will help clarify the message you
want to communicate.
This is born out by those facilities that identify
with a specific denomination, university or hospital for
their client base. Life is good as long as the parent
organization’s reputation and membership volume is
sufficient to support the facility. Those county- or
community-based facilities that have more of a
geographic draw must make a careful choice to appeal to
the local neighborhood or else create a new “distinctive
niche” that would draw from a much broader spectrum
and result in the facility becoming a “destination
location.” The facility then will drive people to go
beyond their normal geographic purchasing circle.
Among those distinctions may be:
¾ The availability of inpatient or outpatient
rehabilitation therapy center services,
¾ The availability of private rooms within the facility,
¾ A higher level of nursing hours per patient for hands-
on care,
¾ The use of more RN’s on the floor for all shifts
¾ An increase in safety through the use of special
lifting devices,
¾ The ability, through special training or equipment, to
care for certain types of patients, e.g., Alzheimer’s,
bariatric, wound center, or other special need
patients,
¾ The acceptance of special types of payment sources
like VA, Medicare and Medicaid,
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Senior Care 2.0
¾ The special recreational and activity opportunities

available at your facility,
¾ The statistical significance of a quicker return-to-
home and the expected possibility of remaining at
home after completing a prescribed therapy regimen
at the facility,
¾ The affiliation of the nursing or assisted living
facility with a larger senior housing campus,
¾ The close proximity of your facility to other services
or enrichment opportunities,
¾ The spaciousness of your facility units,
¾ The length of continuous service to the community or
heritage of the facility,
¾ The perceived strength of contracting with a
reputable management company.
There are times when our distinctives are readily

apparent. Other times, it may take creative packaging to
achieve an advantage among a field of equals. It is up to
the facility to set the stage. An individual consumer of
senior products and services is usually embarking into
new territory and needs help in discerning the proper
choices for their specific situation.
SWOT (Strengths/Weaknesses/Opportunity/Threats)
When I suggest organizations perform a SWOT
analysis, they usually confuse me with the exterminator.
However, the SWOT analysis process is not about
swatting insects but about finding the advantage of an
organization or a particular product. SWOT is an
acronym that stands for strengths, weaknesses,
opportunities, and threats.
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A SWOT analysis is best performed before going

to market with a product or developing a new business
enterprise. If there is no competitive advantage then it is
not likely the company will be sustainable. Many of
today’s most successful companies had every piece of
strategy written on paper before laying a single brick. It
is better to see on paper whether a business is viable
before investing valuable time, money and other
resources.
Generally, companies start off in a haphazard
fashion and get to a point where they decide to get more
organized. They hire a consultant who recommends
going through the process of a SWOT analysis. There is
much more at risk for these existing organizations. What
if they discover they have no real competitive advantage
in the market? For these organizations, a SWOT
analysis can be a nerve-wracking experience because so
much is at stake. Should they close up shop and go home
if they don’t find a competitive advantage? Maybe. Or
they might decide to shift their strategy to one better
suited to their skills. The good news is that many
discover, or rediscover, why they have been able to
compete to date. The SWOT analysis helps them regain
their focus and concentrate on their core competencies.
For those new to the SWOT analysis, a good
exercise is to perform a personal analysis to determine
your individual strengths, weaknesses, opportunities and
threats. If you are starting a new company, it is useful to
analyze an organization with which you are extremely
familiar. This helps you become comfortable with the
process.
As you can see, a SWOT analysis can be done on
many levels. A SWOT analysis may be performed for an
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Senior Care 2.0
individual, organization or corporation. Certainly, when

considering a new product launch, you should use this
process for the product itself. In this section I am
referring to creating a SWOT analysis for an
organization.
SWOT your competition with a marketing strategy based on

your competitive advantage
Implementing a SWOT Analysis

A SWOT analysis can be done on many levels. In
my role as a university professor, I have my students
perform a personal SWOT in order to get a grasp on the
concept. They list their individual strengths, weaknesses,
opportunities and threats. I then take them through the
process for their school as a whole. I ask for input from
the whole class and write their answers on the
whiteboard. In organizations that have different
departments, I advise having each department perform a
SWOT, as well as a SWOT for the whole organization.
When creating a SWOT, it is best to get all the
stakeholders into a room and create the SWOT together
on a whiteboard. For larger organizations when this is
not possible, distribute questionnaires to all the
stakeholders. Gather the information and create an
analysis based on their feedback. A combination
approach involves giving questionnaires to all
stakeholders and then getting team leaders and managers
into a room to create a final version based on feedback
from the managers and the other stakeholders’ input.
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To begin the SWOT analysis, gather information

from as many stakeholders of the company as possible.
Stakeholders are any persons who have an interest in
seeing the company succeed. This includes owners,
managers, employees, partners and key customers. Once
you have identified the stakeholders, present each with a
SWOT questionnaire. Next, we condense all their input
into a master analysis.
The SWOT analysis begins by having
stakeholders list the strengths of the organization. These
are internal elements that are positives for the
organization. Things like products, people, and corporate
culture are all strengths. Being first to market with a
product, having a well-trained staff, and organizational
alignment with mission are all strengths.
Next, dig deep and honestly consider the
weaknesses of the company. Even the strongest
organization has weaknesses. It is better to be aware of
these weaknesses and address them in the proper
manner; otherwise they will fester in the background
until they eventually take over and destroy the positives.
Weaknesses are internal elements that are negatives for
the organization. Weaknesses can be people, products
and corporate culture. Being last to market, a poorly
trained staff and organizational misalignment are all
weaknesses. Have participants write as many
weaknesses as possible, but try to get at least five before
proceeding.
Typically companies have two extremes when
completing this portion. Either the participants are naïve
and over-positive, or pessimistic and negative. Neither is
conducive to a productive analysis. Every company has
a weak flank; it is best to understand vulnerabilities and
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Senior Care 2.0
take necessary precautions. On the other hand, do not

allow this to become a gripe session where every
disgruntled member of the company can complain. Make
sure to bring forth realistic and useful information that
can help the corporation create an action plan to succeed
in the future.
The next letter of SWOT stands for the O in
opportunity, but we will come back to these at the end
and skip to the threats for now. Threats are external and
negative environmental factors beyond the control of the
company. The word threat connotes fear, as well it
should, because these external elements have the
potential to kill your company. Competition, changing
consumer tastes, and copies of your product by others
are all examples of a threat. Be honest: what threatens
the livelihood of your company?
Talk of weaknesses and threats can leave you
feeling deflated. Now is the time to turn that frown
upside down and look at the many opportunities afforded
the company. Opportunities are positives that can result
from being proactive, capitalizing on the listed element.
Go back to the list of strengths, weaknesses, and threats
and decide how each can be a positive opportunity. This
is an easy task for the strengths but is more difficult with
the weaknesses and threats, so you will have to be
creative. For example, how can lack of training be an
opportunity? The company can train its people the
proper way without their having to loose a great deal of
historical information.
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SWOT Analyzing Inside the Outdoors

When I was contacted by Inside the Outdoors to
do some marketing consulting, the first thing we did was
perform a SWOT analysis. Inside the Outdoors is a
wonderful program affiliated with the Orange County
Department of Education that provides school-age
children with hands-on environmental education
experiences. The organization comprises three programs.
The Outdoor Science School program places students in
a camp setting for a week to get them immersed in an
environmental learning experience. The Field Program
provides field trips to local harbors, beaches and parks.
This allowed students to participate in an outdoor
classroom for the day. The Traveling Naturalists
program takes the outdoors to the students by bringing a
van full of animals to local schools for assemblies.
I met with the leaders of the individual programs
to create a SWOT for the whole organization. They were
given the SWOT form to fill out before the meeting.
There was some difficulty and confusion during the
process around whether their answers should concern
Inside the Outdoors as a whole, or their individual
programs. We decided to create a SWOT for the whole
of Inside the Outdoors because the marketing plan that
was being created was for the organization as a whole. I
recommended that it would be beneficial for the various
programs within Inside the Outdoors (and I recommend
the same for any organization with subprograms or
departments) to create a SWOT and a marketing plan for
each of the programs at a later date. One of the side
benefits of the process was that the leaders felt as if they
were all a part of the same team for the first time. They
realized that their resources, goals and identity were
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interdependent on the other programs. Inside the

Outdoors had so many strengths that choosing a
particular one to promote was difficult. In the end, we
decided the hands-on approach to education was their
distinct competitive advantage.
Competitive Advantage
What sets your company apart? What areas are
unique and cannot be easily copied? This is a crucial
discovery for organizations. Your competitive advantage
is what sets you apart and makes up the message that is
broadcast through the integrated marketing
communication process. This is where the rubber meets
the road. You should come to one of three conclusions:
1. There are things about the company that are
unique and not easily duplicated, and are better
than the competition.
2. The company is just like their competition, no-
better, no-worse.
3. The company is worse than the competition.
Take a deep breath and go back to the list of
strengths on the SWOT analysis to determine what items
are distinctive to the company. When determining the
competitive advantage of the company, I caution you to
avoid basing it on a supposedly unique product. It is
very difficult to have a sustained competitive advantage
based on a product in our modern technological age. In
the past, a technological innovation on a product could
give a company the advantage for decades because
others were not able to copy the product easily. Today
successful products can be, and often are, copied in a
matter of weeks if not days. Many software applications
25
are copied (though not necessarily legally) almost

immediately. For these reasons, it is very difficult, if not
impossible, to hold a competitive advantage based on
technology or a technologically superior product. For
these reasons there has been a shift to the intangible
elements of customer service and other value-added
components dominating the marketplace. Competitive
advantages today are usually based on service,
reputation and longevity.
First to Market
Being first to market with a new product can
provide a sustainable competitive advantage when
marketed properly. This may sound like a contradiction
to the paragraph above, but it is not. Being first to
market with a product can establish the image of the
brand in the mind of consumers (Key 3). The
competitive advantage is the identification of the
company as the originator of the product and not the
product itself. Rollerblade was the first inline skate
company and is synonymous with the product. All other
inline skates are copies of Rollerblades in the minds of
consumers.
By being first to market, a company has the
opportunity to establish itself as the originator and to
paint all competitors as copycats with inferior products.
They also have the ability to be the first to create
relationships with customers (Key 5). If you are first to
market, concentrate on establishing a brand image (Key
3) and building relationships with customers (Key 5). Do
not promote that no one else has anything like your
product because tomorrow there will be a copy.
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What makes your company and or product unique?
Tired of Poor Service

I went to a tire store for new tires. I walked in and
waited patiently while the clerk was on the telephone.
After a few minutes, I started to pick up on his
conversation; he was talking to a friend about baseball
cards. I was not pleased and walked out of the store. As I
got to my car, he came out of the store after me and
asked what I needed. I said I needed tires. However,
because he did not have time to greet me, or ask me to
wait a moment, or in any other way acknowledge my
presence, I was going to go somewhere else. I also told
him plainly “I can get tires anywhere.” While this is a
customer service issue, it also illustrates the point that
tires are the same anywhere. They are merely round
pieces of rubber as far as I am concerned and there are
27
about 12 tire stores within a five-mile radius of my

house. I am going to go to a retail location where all my
needs are met, including my need for civility and
courteousness from the sales staff.
No Advantage
If you find no unique strength(s) for your
company or product then there is no competitive
advantage. If this is true in your case, I recommend you
do not spend any more time, money or other resources in
development. Either find a way to differentiate or find
another way to make a living. Fortunately there is the
ability to add value through great service and by creating
and sustaining relationships with customers (Key 5).
If this is true, why are there so many companies
out there that are doing the exact same thing as their
competition yet continue to exist? Some companies
have found a way to communicate a unique market
position to their customers, even if it is only a matter of
perception. Some have great relationships with existing
customers and are subsisting on their patronage. For
others, it is just a matter of time until a shake-out
narrows the field and puts them out of business, as
witnessed by the demise of thousands of mediocre
Internet companies in 2000.
To use scientific terms, “only the strong survive,”
so a thinning of the herd will take place sooner or later.
Science also teaches us that only one species at a time
can occupy a particular niche. The same is true in
business. If you do not have a competitive advantage
then you will not survive.
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Mike
Restaurants do a great job of identifying their products.
Many of them have mastered the art of customer service.
Hotels have long been into customer service, but
now many of them are scrambling to find
another advantage. Why has it taken hospitals
and nursing homes so long to discover that good
customer service will enhance any product? The
process is simple but we tend to overcomplicate the
training and never get the desired results. I recently
stayed in an averaged-price hotel. Upon my arrival to the
room, there was a message blinking on the phone. I was
amazed that somehow someone had already tracked me
down and left a message. When I played the message, it
was the manager welcoming me to the hotel and
explaining all the benefits of the hotel. He also stated
that if I needed anything, just look for the bald headed
man walking around the hotel. Wow, that’s customer
service.
I remember selling retirement condos for a small chain.
The current reality was nine vacant condos, and the
owners wanted them sold quickly. There was a couple
who wanted to relocate rather quickly and was very
interested in one of the condos. They wanted to make
sure that everything was ready for them when they
moved into their unit. I spent hours building trust and
overcoming objections but could not get them to finalize
the deal. It occurred to me that they needed additional
service to make their move. I had spent so much time
with them that they gave me a list of things for the condo
to purchase. Because I listened to their needs they
entrusted me with their credit card to purchase many of
29
the items. I went as far as having a refrigerator

delivered and an ice maker installed. The couple
literally moved into a situation where they did not have
to do anything to feel at home. Good customer service!
You bet! I sold all nine condos in six months.
Customer service is such an intangible product that
many facilities overlook the concept. It takes countless
hours of teaching and training, good solid leadership and
a commitment from management to provide an ongoing
program. When done right, this can give you the must
needed edge to trump your fiercest competitor.
Only One
Do not panic if you find only one unique strength
that can be considered a competitive advantage. Be
thankful you have one at all. Many find through this
process that they have none. There is the threat of the
competition catching up to you when you only have one
area of expertise, but marketing a company or product is
actually simplified by having one dominant advantage
instead of trying to communicate multiple messages at
the same time.
Some companies find that they began by
capitalizing on a unique strength but have since strayed
away from their original competitive advantage. This
loss of focus on their core will catch up with the
company. Companies cannot keep their position in the
market without maintaining a competitive advantage,
even if they are able to survive for a time on the returns
from earlier success.
In one case I facilitated a SWOT analysis for a
private university. The school is located in the heavily
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populated Orange County area of Southern California.

We determined that one of the distinct strengths the
school had over the competition was the location of the
campus on a beautiful green hill away from the
congestion of the surrounding cities. Comparable
schools in the area were located in the middle of busy
streets and intersections. Few others had the same
amount of green space as this university. For the
competition to copy the advantage of this university,
they would have to purchase and tear down neighboring
commercial areas and turn them into grassy knolls. This
is a difficult if not impossible proposition for them,
which makes this feature a distinct competitive
advantage for the university. Right now the university is
in the process of developing much of the green space
and putting up new buildings. While the university has
other strengths and advantages, I am curious to see how
this will affect their ability to compete in the future
because they are removing one of their only
irreplaceable and irreproducible competitive advantages.
Mike
In order to identify a product or service in your facility,
you must first look at your USP or “unique selling
principle.” Every facility has one or can create a
process to identify it. Simply put, this is what
makes your facility different from the
competitions. It could be transportation, customer
service or any other product. Before we go any further
we need to look at the products that relate to the long-
term care industry. The long-term care industry has three
basic products: Nursing Homes, Assisted Living and
Retirement Centers. The nursing home product is based
31
on medical and nursing care. There is also a huge

emphasis on rehabilitation. Assisted living requires some
assistance with the activities of daily living. Retirement
is unrestricted independent care. For us to be successful
in the industry, we need to sell only one product at a
time. The one mistake most people make is lumping all
the products together in an advertisement or brochure
and then wonder why they have no results. Think about
it: not one person comes to your facility needing all three
of these products.
Inside these products are sub-products to sell.
Housekeeping, Nutrition, Activities, Transportation;
these are all products that, when enhanced, can
differentiate you from your competition. How, where,
and why it is different will give you the competitive
edge. Let’s look at an example.
I was working with a rural facility that told me they
didn’t have any unique products in their facility. They
basically were convinced that they were no different
from their competition—the basic services were the
same. Once we sat down as a group, we determined that
they provided transportation for residents who needed
dialysis. Their closest competitor used their van only for
activities. What was created was a transportation
service for residents to and from the dialysis center. It
made it easier for the hospital to refer patients because
it was exactly what they needed to facilitate the
discharge.
Once you complete your analysis and identify your USP,
you can create a 90-day vision map to help you
accomplish your goals. I have spent many hours working
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with facilities on moving this process of planning

forward by creating a mapping system. This process
requires the cooperation of management to bring
together all the department heads, to look at the current
reality of the situation, and then to map out a plan to
reach the desired goal. It may look something like this:
The results from your satisfaction surveys just came
back and have shown that satisfaction levels are far
below expectations. The surveys state that families and
residents are not satisfied with the food, and it has been
reported that the staff is rude and not attentive to the
residents’ needs. The current reality is a 75 percent
overall satisfaction. The goal is to have a 90 percent
satisfaction survey in 90- days. In a group setting, each
department head is required to come up with three
things to improve overall satisfaction. If there are 10
department heads, you now have thirty ideas to develop
a plan to improve customer service. You will be amazed
at the enthusiasm this will create from your leaders. You
now have a 90-day vision map to improve overall
satisfaction. This can work with any product that needs
improvement.
Perceived Value and the Quality Myth

Many people try to compete on either price or
quality. Their advertising touts their product as the low
price leader or the best quality available. These are both
ambiguous descriptions that have little rational value. It
is not wise to base your marketing message on either of
these. Price, as we will discuss later in the text, is not a
competitive advantage because it can be copied easily
and almost immediately. Your competition need only
33
match your price and your perceived price advantage

will vanish.
Why wouldn’t quality be a competitive
advantage? The reason is that quality is relative,
subjective and determined by the consumer. Ask five
friends what constitutes quality, and they will usually
give you different answers. What you are promoting as
quality may not mean the same thing to your customer.
Wes
Because much of senior marketing is based on
healthcare needs and much of our health
experience is based upon individual definitions or
reality of health, perceptions can sometimes be
more critical than reality.
Statements overheard include:
¾ “Don’t tell me I’m not in pain; it still hurts!”
¾ “You obviously have insufficient staff. I’ve been
waiting for hours since I pushed my call button”
¾ “This food is the worst I’ve ever eaten!”
¾ “I know I selected that entrée, but it doesn’t look
or smell good to me now.”
¾ “I don’t think I’ll ever be able to take care of
myself again, so why should I even try.”
¾ “My family and friends never visit me. I might as
well be dead.”
¾ “I couldn’t possibly live in a place like this. It’s
too small, or it’s too full of old people.”
¾ “I’m not old enough to be in a place like this.”
Merely responding to a stated need or perception may
improve customer satisfaction levels and might improve
market share. How much better is it to anticipate in
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advance perceived needs and desires, and then meet

those needs before they even become issues? Some of
the best hotels use focus groups and staff training to
identify distinctions. They then communicate to the
customer how they anticipated and either met their
needs, or presented several options from which the
customer can choose to meet their own expectations.
A facility or community that meets the perceived needs
and provides a variety of choices will likely separate
itself from the roster of good choices and become the
best choice.
Learn From Coca- Cola TM

In the 1980’s Coca-Cola TM was winning the cola
wars. They were dominating Pepsi TM in sales and things
looked good. The new CEO of Coke wanted to go
further. What bothered him was that Pepsi consistently
beat Coke TM in blind taste tests. The CEO reasoned that
this was because Pepsi TM had a better quality product. I
think he was right. If tests of what people prefer based
on how the cola tastes is a measure of quality, Pepsi was
better. The CEO decided to do something to improve the
quality of his product. His answer was New Coke, which
was a copy of the sweeter, less carbonated taste of Pepsi
TM.
The result was a tremendous backlash from the

Coke faithful. Consumers were disgusted with Coke for
changing the recipe they had loved for years. Cases of
old Coke were being auctioned like fine vintage wine.
The CEO wisely gave in and brought back the old
formula as Classic Coke TM. New Coke seems to have
disappeared since then, and all that is available is Classic
35
Coke TM, now called just Coke again. This illustrates the
point that New Coke was better in physical quality, as
proven by taste tests, than Classic Coke, but Classic
Coke was perceived as being the original and therefore
of higher quality. Quality is in the mind of the consumer.
Define Quality
The word quality is used so much in the
marketplace that it no longer has significant meaning.
Everyone claims that they are high quality. Please
understand I am not saying that an inadequate product
will work. Your product must live up to the promises it
makes. If you say your product kills athlete’s foot, your
product needs to deliver. Besides the threat of potential
lawsuits, people will catch on to the validity, or lack
thereof, of your claims. A problem occurs when
companies say they provide quality without defining
what they mean. It is generally assumed by consumers
that you are making the best product you can.
I usually come across this problem when
developing mission statements with businesses. I
worked with a restaurant that wanted to make “providing
quality” part of their mission. Sounds nice, but how do
you really provide quality? I pressed for answers and
found they meant “treating customers and co-workers
with respect in a clean and family-oriented
environment.” These specific descriptions of quality are
easier to measure and to communicate to customers.
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Quality Pattern
While individual definitions of quality differ,
there is a pattern to buyer behavior. In general, whatever
is the leader in a category is perceived as being of
quality. In other words, whatever sells the most is
usually seen as being the real thing or the name brand.
Others are seen as imitations or copies, and therefore as
not as good as the original. Even if the products are
identical in every other way, imitators are perceived as
having less quality.
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Tagline
The tagline is a distillation of the competitive
advantage into a single word or sentence. The tagline
will appear on every piece of promotional and
organizational communications material. For the tagline
to be effective, it must reinforce the unique competitive
advantage of the company. A simple and easy to
remember tagline is best. Try to use literary tools like
rhyming and alliteration. It is also helpful if the tagline
clarifies the purpose of the business when the name does
not clearly do so. The purpose is to get the company’s
competitive advantage stuck in the heads of customers.
The more complex and convoluted the tagline, the less
likely this will happen.
Many taglines do nothing to clarify the advantage
of the company. Nike TM says to “Just Do It.” Just do
what? And what does this have to do with their
advantage? Why is this company a better choice for me
as a consumer than their competitors? The answer to all
these questions is “I don’t know.” I don’t think they
could tell me why they are better if I asked the CEO
himself, probably because they have not gone through
the SWOT process. That’s great if you have a few
hundred million dollars a year to spend on advertising to
keep your company in the mind of the consumer, but
most companies don’t have such resources. Nike TM is a
major market force today, but they are weak on this
point of promoting their competitive advantage. A savvy
marketer could give a competitor a way to overtake the
shoe giant and give Nike TM a run for its money (pun
intended).
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Get Your Hands on Nature

In the case of the Inside the Outdoors SWOT
analysis, we discovered that the distinct strength of the
program is the unique hands-on science education that
takes place in the various programs. After taking the
organization through the SWOT analysis and
recognizing this advantage, we determined a good
tagline would be “Get Your Hands on Nature.” It is
simple, easy to remember, and captures the essence of
the program. Another positive is that this is not a
typically passive tagline, but one that calls for action.
What and Why

Completing the SWOT analysis provides an
organization with an assessment of the potential for
success. It is best to do all of this on paper before
investing time or money. Smart new companies today
have everything planned on paper before a single brick
is laid. The SWOT analysis illuminates the competitive
advantage of the organization, which provides a basis for
all marketing activities. Once you have discovered your
advantage or the “what,” you must now determine your
purpose or the “why” of the organization by defining
your purpose.
39
Key 2: Define Your Purpose
Why are you in business? What are you trying to

achieve? How will you measure your success? Answering
these questions is vital to defining your purpose and Key 2
will help you get started.
Mission
The overarching purpose of an organization is
described in its mission statement. The mission is the
most important strategic element of any organization. It
is also one of the most overlooked and misunderstood. A
mission statement defines the “raison d’être” of the
company. The mission gives purpose and meaning to
daily activities. A mission statement is to a company as a
thesis is to an essay. Neither makes sense without a clear
statement as to what is to be accomplished. In a well-
written essay, every sentence supports the thesis. The
thesis of this book is that there are seven keys to
marketing success. Every sentence is written in support
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of this thesis. In the same way, every activity of a

company should be in concert with the mission
statement. The mission clearly defines for all
stakeholders what the company is striving to achieve.
The mission is a filter for every decision made,
from banal details to watershed movements. “Does this
fulfill the mission?” should be the question everyone
asks when making decisions that affect the organization.
Some mission statements are several pages long, while
others are just a word. Here are some helpful guidelines
for creating a mission statement:
• Make it memorable. It may be great, but if people

can’t remember it, the words are useless. In most
cases, brevity is more effective than complexity.
• Make it relevant. If it does not connect with the
various stakeholders of the organization, people
will likely ignore it.
• Make it theirs. You must get input from as many
people as possible or they will not buy into the
mission. Remember this axiom: “involvement
equals commitment.”
I recommend that people create a personal mission

statement for themselves before going through the
process of helping to create one for their organization for
two reasons. First, people then have a better
understanding of the process and the value of creating a
mission. Second, they will be able to determine whether
their personal values are in alignment with those of the
organization.
41
Mike
Unless your mission is established by a
corporation or past company philosophy, understanding
what the long-term care industry is all about can
be quite confusing. So much of it is defined by
the negative images that are portrayed in the
media and by the public. Here are few examples
to drive home my point. On Dec 3, 1992, the
front page of the Wall Street Journal read: “Older people
do anything to avoid life in a Nursing Home.” Some 20-
years ago, groups were calling nursing homes
warehouses and dumping grounds for the dying. In the
United States today, 30 percent would rather die than
end up in a nursing home. More than 3,000 patients
suffering from diseases ranging from acute respiratory to
advanced lung cancer responded to a UCLA School of
Medicine survey. Thirty percent said they would rather
die than go to a nursing home, and 26 percent said they
were unwilling to go. The rest said they would consider
going or didn’t know. How do you market a product that
comes with so much negativity?
While there are many good things that can happen
in a nursing home, negativity still has a hold. How can
you define your positive mission statement in such a
negative environment? I have read many mission
statements; some were good, some were not so good.
Many of them stated the same theme of “providing
quality care in a home-like setting” or were backed by
the corporate philosophy. When describing your mission
or philosophy of care, pay close attention to how you
describe the environment, innovative programs, and
what it is you are trying to promote. Here is an example:
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Our skilled and compassionate staff ”enable”

residents to use abilities and strengths to engage in daily
activities that reflect their individuality, while
maintaining the highest degree of independence, dignity,
and safety. We develop and maintain a strong
partnership with families, offering support and
personalized care every step of the way.
Notice how their philosophy is described. In order
to get the general public to notice what we are doing, we
have to carefully convey it. That’s our mission.
Positive Story:
Remember the line from the movie “Cool Hand
Luke: ‘What we have here is a failure to communicate.”
One huge problem in the long-term care industry is that
it has failed to communicate the positive things that
happen in a nursing home. I just read an article about a
patient who was in a coma for 15 years. His brain just
regenerated over time and this person is now moving his
arms and speaking. For the past 15 years he has been in
a nursing home receiving care and therapy. Only once
was the name of the facility mentioned in the article. The
article was front page news in a very prominent
metropolitan paper. Will the nursing home follow up
with some positive public relations in the next few
weeks? Only time will tell.
Kendall
It is a natural process for most healthcare
professionals to have a personal mission
statement or philosophy of care. What seldom
occurs is the measure of that philosophy against
the companies’ mission statement, or the degree
43
to which that mission or philosophy of care is

implemented. One of my greatest experiences in
healthcare came from working with our home health
branch office. We had developed Total Quality
Management (TQM) Process Improvement Teams (PIT).
Our first task was to understand how the healthcare
system’s “mission” was supported by field healthcare
providers. We first discovered that none of the home
care staff had ever read the hospital’s mission statement.
Second, it really didn’t relate to their line of business.
The mission statement was centered on acute, in-hospital
patients.
Our first goal as a group was to write personal
mission statements. The second was to write a mission
statement for the business unit Home Health. It was a
major challenge for the staff to see how their job
function fit into the hospital mission. The true success
came from the hospital leadership valuing and realizing
that “true healthcare delivery” came from our
community focus (beyond the walls of our building) and
not the day-to-day on-site operations of the hospital.
Backwards Creation
A great tool for creating a mission statement is to
start at the end and work backwards. What do you want
to accomplish? What do you want people to say about
the organization 50 years from now? In seminars, I have
people create a personal mission statement. To visualize
the future, I have participants pretend they are at their
own funeral. I ask these questions:
• Who is present?
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• Are there loved ones, family, co-workers,

friends, teachers, coaches, and/or children?
• What is each one saying about your life?
• Do you like what they are saying about what
you accomplished with your life?
• If you could choose, what kind of things would
you want them to say about you?
In doing this exercise over the years, I have
discovered a similarity in people’s responses. Typically,
people want to be remembered as being kind and
friendly and contributing to society. I ask, “How many
people said they would want their loved ones to
remember them for the cool car they drove?” I have
never had anyone raise his or her hand. I also ask, “How
many of you have kindness as a current concern?” Most
people do raise their hands. There is an inconsistency
between what most people value and what they are busy
pursuing. The same principle is true of organizations.
Based on the responses to these questions, people are
usually able to formulate what is most important to
them. When they stop and reflect, they can see whether
they are currently living their lives in a way that will get
them to the point where people will say about them what
they want them to say. The mission statement defines
what the person or organization values and the standards
they pursue. To create powerful mission statements see
the Seven Keys Companion Guide. Accomplishing the
mission is dependent upon setting and reaching goals.
45
Kendall
The creation of the PIT crews provided a backwards
view of the hospital’s mission. The staff made
adjustments to their daily process. Some of the
job tasks were eliminated once everyone tried to
align the function with the true mission of the
Home Health unit and eventually the hospital.
The teams utilized MSW’s (medical social workers)
from the home health group to facilitate the mission
discussions (backward view). It was a great learning
tool for all members.
Gooooal!
In Los Angeles there is a famous soccer
announcer who shouts “gooooal” at the top of his lungs
every time someone scores. If you have seen an
international soccer match, you know that every time
there is a goal the announcers get very excited, the fans
go crazy, and the players go nuts and run around the
field, often ripping their shirts off their backs. Setting
goals does not usually connote excitement, but reaching
goals does. In order to fulfill your mission, short- and
long-term goals must be set and measured to evaluate
progress. To learn how to create measurable goals
worth celebrating, see the Seven Keys Companion
Guide.
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Are your goals clearly identified?
Review, Reevaluate and Revise

While the mission is the guiding force, it is still a
work in process. If you have done the hard work of
creating a mission statement, it will come to mind
whenever making decisions. The mission should be
reviewed, reevaluated, and revised at least twice a year.
You should evaluate how well the organization is
fulfilling the mission. If it is aligned with the mission
you can feel confident that you are on the right path. If
not, then you will need either to refocus the energies of
the organization or to revamp the mission statement to
more closely fit with the true values of the organization.
47
I wrote my personal mission statement, then reevaluated

and rewrote it several times. I still review it frequently
but have not revised my mission for several years. I have
changed my behavior several times by reviewing my
mission and realizing when I get off track.
Wes
I recently worked with a church organization of
50 churches who felt compelled 50 years ago to set aside
ground in a great location for a future retirement
community. I was told a retirement community
had been their dream and yet for fifty years they
had used the ground as a campground, then as
community recreational ball fields and
eventually, just as office space and for occasional church
hayrides, small conferences, and baptisms.
This organization said their mission-minded goal
was to build a retirement community, but their actions
over the years said their true goal was probably
community outreach and church planting. They finally
decided to sell the ground to a group to build a
retirement community and chose to take the proceeds of
the sale to build more churches in the area.
A mission statement needs to be revisited
occasionally to verify the actions of the organization. If
there is a disconnect, then either the mission statement
needs to be modified, or the actions need to be changed.
This church organization reaffirmed that their primary
mission statement was to be focused on external
outreach to the community at large, versus having an
internal focus on their immediate membership. They
found that selling the property allowed them to meet
their primary mission while still providing an
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Senior Care 2.0
opportunity for meeting the retirement dreams, desires,

and needs of their membership that may not have
otherwise been realized.
Kendall
The review process of a company’s mission statement
will become more aligned with the company if
there is an open and honest dialogue. The review
process must occur frequently at first. The staff
will be making mistakes and questioning
everything. In one instance, the housekeeping
staff questioned whether they needed to take out the
trash twice a day. This seemed like a valid question
when the staff shared that the cost savings would amount
to $45,000 per year in labor and supply costs! I was
really interested in how this change was going to bring
the housekeeping staff into the mission value system of
the skilled facility.
Trash pick-up was the result of a housekeeping

directors’ anger at a mess left in a residents room, so
both shifts had to empty trash throughout the 300-bed
community. This led to numerous years of waste and
dissatisfaction among staff members. A change was
implemented and the staff was empowered to work
toward a better department alignment with the
community’s mission statement. They also created a
nickname: “Trash Busters.”
Discovering Mission
Writing a mission statement is often more a matter
of discovering a mission than creating one. In the
49
illustration of the funeral, most people have an idea in the

back of their minds of how they would want to be
remembered. Many people have never taken the time to
contemplate what is really important to them, and often
once they do, they see that their values do not align with
how they are living their lives. The most important things
to them, like family and relationships, usually get put on
the back burner due to pressing concerns such as finances
and daily routines. Creating a mission puts life into context
and helps to determine not only what is truly important
but also whether or not you are on the path to
accomplishing what’s important.
Kendall
What I began to share in earlier sections is truly
the “staff’s discovery of mission.” The staff
tends to know intuitively what the healthcare
facility’s mission is all about. How they play a
role in making up the mission is where it all gets a little
confusing. My son has started working for a retirement
community close to our home. He has grown up in
nursing homes and retirement communities all of his
life. Literally! We started an intergenerational daycare
with a retirement facility in the late 1980’s. However,
this is his first paid job in a facility. It changed his
perception of everything in the facility. Two staff
members didn’t show up to serve dinner to the residents.
My son was upset! Haven’t we all been there? How
does this test our mission? What can we communicate
to our “lead staff” to place mission in front of “work
function.”
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Quality People
It is often more difficult to do this as an individual
than for an organization or product. It takes a great deal
of introspection and personal discipline. I recommend
having people on your team who are capable of thinking
at this level; they will likely perform better and provide a
greater overall contribution to the organization. When I
present this exercise in seminars, I find a great deal of
resistance. I think the reason is that people feel
uncomfortable with how out of alignment they are with
their own values and mission in life. The reason I
perform this in traditional business settings is because it
lays the foundation for understanding the mission and
alignment of the overall organization.
I have participated in 19 turnaround situations in

the skilled nursing facility environment. Our goal may
be trying to expect great things out of average folks. I
don’t want you to take this negatively, but just think
about all the great sports teams that come to mind. For
me, it is when the St. Louis Rams won the Super Bowl,
under the leadership of quarterback Kurt Warner. Coach
Dick Vermeil led his young giants of average players
into a mighty TEAM that beat the odds. Quality people
are out there as mediocre employees; they are waiting to
be aligned with a mission.
Alignment
I was trying to park my truck and I banged into a
curb pretty hard. For the next few weeks, until I got it
repaired, whenever I took my hands off the wheel, my
51
car would veer to the left. My truck had become

misaligned. Have you ever driven a vehicle that is out of
alignment? When you drive down the road, you have to
hang on to the wheel with both hands or the car will
swerve into the next lane. If the car is out of alignment
enough, it can actually try to pull you right into
oncoming traffic, with disastrous consequences. As bad
as that sounds, imagine a car with wheels pointed in
different directions, some going forward, some in
reverse. How far do you think a car like that would
travel? (See Figure 2.1.)
Figure 2.1: Misaligned Vehicle
Obviously a car this far out of alignment would

not get you to your desired destination. The same is true
for organizations that are out of alignment. In every
organization people have an agenda. People have an
understanding of why they are there and what they are
supposed to be doing. Sometimes their understanding is
correct and at other times they are way off base. Even
when members of the organization are not sure what
they are supposed to do, they still come to their jobs with
a perception of what they think they should accomplish
each day. This is just as true for the president and CEO
as it is for the guy sweeping cigarette butts in the
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Senior Care 2.0
parking lot. Where each fits into the makeup of the

organization is demonstrated in Figure 2.2.
Figure 2.2: Sample Company
You can substitute the titles in your company for

those in the illustration. For the organization to function
efficiently, every level must be headed in the same
direction. In reality, different levels do not typically head
in the same direction. Everyone does what seems right in
his or her own eyes. Without an overriding purpose that
everyone is aware of and buys into, people will drift off
in their own directions as seen in Figure 2.3.
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Figure 2.3: Company Misalignment
It is not altogether uncommon to find companies

that look like the one in Figure 2.3. In fact, unless the
leadership is intentional about alignment, it is more
likely to observe misalignment than alignment. You can
see how different levels are working directly against the
others. Sometimes this is intentional when you have
disgruntled employees disobeying company policies or,
even worse, sabotaging the progress of others out of
jealousy or bitterness. It is difficult for a company to
make much progress when everyone is doing his or her
own thing.
So how does a company become aligned?
Everyone must understand and buy into an overriding
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Senior Care 2.0
purpose. You should already know where this is

heading. This overriding statement of purpose is most
commonly called the mission statement. After creating a
mission statement, the task of leadership is to get the
personnel aligned with the mission of the company, as in
Figure 2.4.
Figure 2.4 Alignment of the Company with the Company’s

Mission
Wes
A mission statement (Sample: To foster
independence in a supportive living
environment) is more than a tagline (Sample: An
Active Retirement Resort), although they
certainly should be related. While a tagline may
highlight a competitive advantage or focus, a
mission statement will underscore your very reason for
being. As an organization, why are you driven to being
out there? Why not let someone else provide the
healthcare services or housing option being considered?
I find very few organizations truly ask this question.
55
How many CAT scan or MRI machines are necessary?

Just because you can do something does not necessarily
mean you should do it. Will your actions improve the
scope of services, choices, options, or value available to
the prospective client? If not, your “mission” may be
only one of accumulation, power-brokering or driving
the competition out of business. Admittedly, some
competition needs to be driven out of business due to
poor quality issues. All these may be achievable short-
term goals, but they will not provide the impetus for
long-range, value-based, heart-launching reasons for
being that answer the age-old question, “Is there not a
cause?”
Individual Missions
Everyone has a purpose for his or her life that he or
she pursues. Some people work for money while others
want to contribute something meaningful to society.
Sometimes their mission is conscious, but often it is not.
Regardless of their awareness level, if the mission of
individual members and the mission of the company do
not align, there will be major problems. You will see the
same results as putting a wheel on a car that drives only
sideways: the car will not function properly. For this
reason, members must have an alignment of their personal
missions with that of the company.
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Figure 2.5 Alignment of the Company’s Mission with Personal

Mission
This is where hiring practices become important.

First, the organization must be able to articulate its
mission. Next, interview questions must be asked to
determine whether a prospective employee would add
momentum to accomplishing the mission or be a driving
force in a different direction.
Kendall
I see the creation of individual mission statements as
central to understanding how each of us fits into
the organization. The illustration above of the car
alignment makes perfect sense to me. When I
was a certified auto body mechanic, vehicle
alignment was centered in the success of our auto repair.
All points of the body, frame, and suspension must be
aligned for proper functioning. You would never think of
driving a car down the road with one tire turned in
another direction. Why then would we tolerate an
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employee heading off down his own path of self-

fulfillment?
Career Counseling
What do you do about the company’s current
members who have a conflicting mission? They should be
counseled to get on board or to seek work elsewhere. Not
only do they hold back the company, but they are not
going to be happy working for a company whose purpose
conflicts with their own. The sooner they move on, the
better for both parties.
Kendall
My best senior manager shared with me after the first
department crisis: “How are we going to avoid
this problem in the future?” I was ready to take
a thrashing. That statement took the wind right
out of all my arguments. He shared that this
mistake cost the hospital around $20,000, so he thought
spending $20,000 on my education was about right.
Needless to say, I was more attentive to planning details
in the future. This administrator also wouldn’t allow me
to just fire an individual. He had the philosophy of “let’s
prepare him/her for their next job, or make them
attractive for the next employer.” I remember thinking
how odd this type of management was at the time. But it
has been the key to slowing down the high turnover rates
in healthcare facilities.
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See The Principle

There is another layer to the alignment picture. To
be successful at any level, a mission must align with
principles. Principles are universal truths or laws, such
as gravity. If you walk off a cliff, what happens? You
go straight down and make a splat. It does not matter
whether or not you believe in gravity; the principle
exists and you will live (or die) by the consequences.
In the same way, there are principles involved in
marketing. The more you understand these principles
and align to them, the greater the likelihood for success.
As a university professor, I typically demonstrate
this concept by having my students make paper airplanes
at their desks. I then have them aim their creations at a
particular target and send them flying. A chorus of giggles
occurs as a flood of paper airplanes crosses the room.
Usually only one or two come close to the objective.
Planes thrown forward fly sideways, do loop-to- loops, or
take a nosedive right into the floor. I ask my students
whether they think they could make a better airplane if
they were well-versed in the principles of flight. Do they
think a pilot or an aircraft engineer could design a better
airplane? Invariably, the answer comes back, “Yes, of
course.”
Understanding gravity, acceleration, lift, thrust,
velocity, and the other principles of flight helps aircraft
designers make better flying aircraft. The more the
designer’s craft is in harmony with these principles, the
more likely the plane is to fly. In other words, their
mission of creating an aircraft must be in alignment with
the basic principles of flight in order to be successful.
Likewise, the marketer who understands the basic
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principles of marketing, or the seven keys to marketing

genius, is more likely to be successful.
Figure 2.6 Alignment of Mission and Principles
To harness the power of alignment, every level must be in

harmony. All your circles must be parallel and all your
arrows must be pointing in the same direction.
Figure 2.7 Alignment of Personal & Company’s Mission and

Principles
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Mike
In an industry that has some of the highest
turnover rates, it is difficult to hire people who are
aligned with the company’s mission. Companies
are getting smarter. They realize the importance
of hiring winners and the cost of hiring losers. I
was recently involved in an interview with a
social worker, and we were describing her job
duties. She was quick to point out all the organizations
that she was involved in and how great an advocate she
was for the elderly. The administrator got smart and
asked her how she would handle a situation with a
family if the resident choice was to withhold artificial
means for nutrition. What he really wanted to know was,
as a social worker, what was her personal mission
statement and would it align with the facilities?
I know of another individual who was
interviewing with a pharmaceutical company. The
company’s biggest selling drug was one of the most
abused narcotics in the country. This individual had a
history in his family of medication abuse and addictions.
When it came time for the manager to describe some of
the products he would be selling, it was clear that his
personal mission would not align with the company’s. It
was easy for him to move on to another job. If that
person had accepted the job, you can see how the values
and chemistry would not match up.
Synergy
One plus one equals three or more. In the world of
math, that does not add up correctly. When it comes to
people, it is called synergy. Synergy is people coming
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together to accomplish more than they could do

individually. Sports teams talk about the chemistry of a
team being important. There have been many teams that
did not look like much on paper, but who, together, were
able to win championships. In construction, a single
block of wood that is one-by-one inch thick could hold
up 10 pounds of weight. Two single blocks of wood
stacked together would logically hold up 20 pounds of
weight, but instead can hold up 100 pounds of weight.
The two blocks together can do exponentially more than
they could do alone.
These are examples of synergy. Alignment within
organizations creates powerful synergy. When everyone
is working together for a common purpose and going in
the same direction, they can become virtually
unstoppable. This momentum will carry over into the
marketing process, particularly in the area of promotion
(Key 4).
Wes
Historically, the best operational reason for a
facility action has always been voiced as one
that is “doing something for or with the
resident in mind.” In other words, the resident
becomes the operational, tangible thrust for
why certain decisions are made. As more
positive individual resident/staff interactions occur and
are reinforced or celebrated, the more these actions
become an ingrained part of your organization. These
actions spawn similar actions and are then recognized as
the new norm for your community by the families and
the public in general. This norm then becomes your
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reputation which becomes a very marketable asset. As

an organization, it is best to have a broad support base
for both determining the mission statement and then
allowing it to be played out in concrete actions. Mission
statements crafted in a boardroom rarely have any
“wheels.” One that is developed with input at the grass-
roots level has a strong chance of becoming your
reputation in the community.
Vision
Though the terms mission and vision are typically
used interchangeably, there is value in defining them as
different tools. While the mission is a snapshot of how
the current day-to-day activities of the organization look,
the vision is a future-oriented picture of where the
company is going. The mission and vision must be in
harmony with one another, but they are distinct. The
vision is more of a stretch of the imagination, a best-case
scenario of what the company can look like; it defines
the destiny of the organization.
Another important aspect of the vision is that it is
visual. It should be an actual physical picture. Usually
this will coincide with the distinct competitive advantage
of the organization and the logo but not necessarily.
People need a picture they can visualize (Key 3). To
create a vision for your company, see the Seven Keys
Companion Guide.
Conflicting Missions
What happens when the members of an
organization do not agree on a mission? Conflict. The
conflict will be resolved eventually by everyone’s
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agreeing on a common mission, by individuals leaving

the organization, or by the dissolution of the
organization itself.
I did a mission-building workshop for a small and
growing company I worked for called XCOM. I had the
different members work through their personal missions
and what they felt the company’s purpose should be. It
became apparent that one of the owners, Betty, had an
opinion of why we were working together that was very
different from that of one of the other owners and most
of the employees. Betty felt the main purpose of XCOM
was to make a profit. Her partner and most of the
employees were there to build a legacy and a company
that would be respected. I was at a bit of a loss at the
time because I had not expected this to happen. There
was no way to agree on a mission for the company in the
hour we had set aside for this meeting. I recommended
that we think some more, that I would take everyone’s
ideas and create a draft to e-mail around for approval.
My draft, which was a compromise of the conflicting
missions, was rejected by Betty and the other employees
who had their own preferred versions.
Needless to say, I was never able to create a
concrete mission for XCOM. I also watched these
conflicting values play out during my time there. Betty
and the other owner and employees had petty arguments
and did not get along. I could see that the root problem
of most of these arguments had to do with a different
view of why the company existed. Betty was viewed as a
penny-pincher who cared only about money. Betty
viewed the others as being irresponsible with company
resources. Who was right? I think they both were right
in a way. It is irrelevant who was right or wrong; the
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point is that they would always have a difficult time

working together because they were going in different
directions.
One of our brightest employees who had been
vocal in the mission-building workshop just picked up
and left one day. He was there to create a unique
company and leave a legacy; this was in conflict with the
way Betty was trying to run things.
Because my role with the company was also not
clearly defined, I was moved around to different
departments a couple of times and finally was made the
marketing director. I had a big problem because I did not
know what I was trying to market. I could not get a clear
answer on what exactly our business was and who my
target market was. Definitions of what we were trying to
do changed from day-to-day and week-to-week. This is
understandable because some days we were trying to
build an identity as an innovative company, and the next
day we were talking about jumping into a popular
market and doing the same things as our competition to
make some quick cash. The company did not have a
mission, and the personal missions of the stakeholders
were grossly misaligned.
I had a few ideas for marketing promotions, but
the lack of a definitive purpose and a commitment from
management to allocate finances meant they were never
implemented. I sat at my desk and listened to the owners
feud about what the company was trying to do. I tried to
think of something productive to do with my time, but
had no real purpose to pursue. I felt guilty taking a
paycheck, so I advised my boss to lay me off and use me
as a consultant if he wanted to do any marketing in the
future. A couple of months later, citing a lack in sales, I
65
was taken up on my offer and laid off. Betty and the

other owner never did get along. The fighting grew more
furious and finally the ownership disbanded.
Could creating a mission statement have saved
this situation? Probably not, but it could have saved
some aggravation. The inability to agree on the purpose
of XCOM and create a mission was a clear indication of
what was to come. From the beginning, they should have
either come to a consensus or decided to part ways. This
would have saved time, money, and heartache.
Natural Alignment
Not all organizations struggle with alignment.
Some great companies have neither gathered all their
people in a room to draw a bunch of circles on the board
nor had mission-statement writing marathons. However,
to be successful, they did have an implicit and tacit
understanding of these common elements. They may not
have verbally defined their purpose, but they acted with
a common purpose in mind. If your organization has not
created a mission statement, it should do so right away.
If your organization has diverging missions for each
department and is totally out of alignment, this process
will provide a platform for discussion and get you all on
the same path. If you have been acting within a common
purpose already, then the process will be simple. Having
a defined purpose provides a way of attracting and
retaining like-minded employees, members and
customers.
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Kendall
I have always found a natural alignment with the
nursing staff and the true mission of the facility.
The problems usually occur within the area of
people dynamics. In assessing individual
mission statements, it is a good idea to evaluate
personality profiles. Individual personality
profiles will allow the manager to understand personality
conflicts between staff members. I have observed
residents caught in the middle of personal conflicts
between staff members. The resident looks like they are
watching a tennis match with verbal volleys going back
and forth. Natural alignment must begin at the individual
assessment phase. All of this takes time! Don’t rush into
it. If you are facing high turnover, take the time to assess
the situation. It takes creative minds to break a poor
hiring scenario. We must stop eating our young (new
recruits) if staffing by need can ever be accomplished.
As healthcare mangers we are driven by our staffing
requirements.
I once went into a facility that was experiencing

511 percent turnover! There wasn’t a natural alignment
to the facility’s mission because staff never lasted long
enough to learn what the facility was all about. The first
process improvement committee was the “Human
Resource Team.” Our team focused on ways to
recognize our staff and add value to their work-life. The
old Golden Rule was modified to be “Do unto our staff
as we would have them do unto our residents!”
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Long-Term Focus
The story about conflicting missions should
illustrate the necessity of having a definitive purpose for
any activity, corporation or organization. To go through
the above exercises can be exhausting. Even those
organizations that see the value of defining their purpose
have difficulty putting in the effort and resources to do
this kind of planning. There are scores of organizations
that ignore these strategic tools and still survive. The
question is, what kind of organization do you want to
be? Do you want to have a short-term focus and be
overtaken by a better-organized competitor down the
road? Do you want to provide a workplace that allows
people to participate in the strategic process and find
fulfillment in their work? Do you care about attracting
and retaining quality employees?
If you want to market your product or company
for the long-term and create a protected relationship
between members, employees and consumers, you need
to put in the effort (Key 5). You must invest time and
energy into creating and/or defining a strategic plan for
the company. Doing so will provide a firm foundation
for enduring success. Once you have defined the “what”
and the “why” of a company, it is time to start
communicating this identity to customers.
Kendall
I have been employed by for-profit (FP) and not-
for-profit (NFP) healthcare organizations. Both
are margin-minded. Both fail and have success
in communicating mission to staff members. The
NFP communities have a definite advantage in
communicating mission because a mission (or,
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unmet need) led to the business operation. The NFP’s

are usually raising money through development efforts,
so pushing their need to a greater audience is critical and
at the forefront of their mind. Your mission statements
must have a future position, or your audience will
disappear.
Having a clear mission statement that can be
communicated by your front-line staff is critical to the
morale and self-esteem of your community. Push this
task to number one as a marketing professional.
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Key 3: Create an Image
The purpose of advertising is to promote image

and awareness. Before you can implement promotions
(Key 4), you must create an image. An image is both a
concept and a physical, visual representation. I am not
an artist, nor do I pretend to be one. While I understand
the importance of creating a unique and powerful image,
I have not been blessed with the ability to create visual
images. Therefore, this section provides an analysis of
proper strategy, not artistic instruction. If you do not
possess the artistic skills yourself, I recommend you hire
someone skilled in graphic arts to help you turn your
strategic image into a physical, visual reality.
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Kendall
The typical image of the senior center, retirement
community, or nursing home is negative and
sometimes depressing. This isn’t true in all
countries, but it is in America. I have found that
this stemmed from the “Poor Houses” that we
established to care for the old men that were
homeless in our country in the early 1900’s. Creating a
positive image in the retirement industry requires
overcoming “ageism.” Much like racism in fighting
against society’s negative position on people of non-
white race, ageism is the negative perception of
becoming a mature adult. The fountain of youth dream
for an aging community is continued health and beauty.
One of the national programs in which I had the blessing
to participate with is the Eden Alternative™. The mental
image of the Garden of Eden was critical to the
communication of growth, balance, and prosperity for
this program. Nothing in the title or vision
communicated anything about care or combating the ills
of nursing home care.
Wes
Healthcare has an added uniqueness to the concept of
creating an image. Where most organizations can
focus their efforts on the visual cocept
representation, this constituency will remember
that healthcare organizations need to do more.
The timeworn phrase, “I’ll know it when I see it”
in this context is expanded to “I’ll know it when I feel
it.” The emotional feelings of the client can reinforce or
even overshadow any factual concepts or visual imaging
developed for a product. The main reason for this is that
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the healthcare and housing services provided to a client

is a variety of many separate experiences and
impressions that make up a whole summary conclusion.
The other interesting phenomenon is that this particular
environment holds few concrete, unshakable truisms.
My experience has shown that confidence and brand
loyalty can be fleeting when you are dealing with how
you are feeling or how an organization is responding to
your perceived needs versus merely suggested desires. I
believe the intensity and the emotional focus of both the
individuals and the involved family members and the
perception of how individuals in the organization
respond is what fine tunes the established public image.
Mike
Image: What do we want to portray? As we discussed
previously, we have to do a better job creating a
positive image in such a negative environment.
The best thing the long-term care industry could
do is develop a public relations (PR) campaign
designed to highlight all the positive things that
happen in nursing homes. Think of the “Got Milk?”
campaign that was popular in the past few years. If each
nursing home in Missouri (where there are 517 facilities)
would put up $100 to $500 to a public relations
campaign rather than on yellow pages advertising, local
papers could cover more postive stories about local
homes and more mature adult aid services. Additionally,
most individuals go to a nursing home based on word-
of-mouth or hospital referral (Key 6).
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Visual Orientation
How many times have you heard a friend say a
movie was stupid, but you should see it anyway because
the special effects were great? This is an example of
looks being more important than content. There have
been several movies that weren’t good movies, but had
great special effects and therefore set box office records.
On the other hand, there are great films that are not
widely seen because they do not have enough visual
appeal. I have a friend who will not watch black and
white movies because he finds it too great a distraction.
Society in general is becoming increasingly
visually oriented. In their book 13th Gen, authors Neil
Howe and Bill Strauss describe how Generation X (also
known as 13th Gen) grew up with color televisions and
video games and therefore seeks visual stimulation.
Previous generations like Generation Y continue to be
enamored with the visual. Some have criticized the trend
of form’s becoming more important than function and
looks more important than content. While we may not
think this is a positive direction, the implications are
clear: to compete today, you must have the right look. It
is not enough to have a good product; you must also be
able to attract the attention of the audience. The look
should enhance the image of the product while
maintaining alignment with the mission (Key 2) and
promoting the competitive advantages of the
organization (Key 1).
Logo
The logo is a visual representation of the
organization or the product. The logo must be used to
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reinforce the competitive advantage of the organization

and tie into the vision of the company. A good portion of
any target market is going to respond to either the logo
or a combination of the logo with other marketing
elements. Besides being visual, logos also have the
advantage of being global. Billions of people around the
world understand the NikeTM swoosh. Unlike with names
or fancy fonts, no translation is necessary. I cannot
overstress the importance of the logo in modern
marketing communications.
Wes
The graphic image of a healthcare company needs to be
very concrete and link familiar, everyday
images that have brought comfort,
encouragement and hope to the client. Using
that basic premise brings to mind several
general and specific healthcare and senior
housing images: stethoscopes, nursing and physician
personnel shadow outlines, front doors or door knockers
with “Welcome” written on the front, butterflies, birds,
houses, friendship, handshakes, and hugs to name a few.
Most of these have a carefully crafted emotional element
in addition to being recognizable images, symbols, or
subliminal actions.
Kendall
Logos are extremely important and names of
communities are important. The first picture
that is marketed to the public creates a lasting
impression on the customer. Does the image
portray a healthy visual, or an older lady, a
wheelchair client, or someone walking between parallel
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bars?
Surely we have more to make a lasting impression
than a set of bars in our communities. My favorite ad
campaign centered on “Chicken soup, it is good for the
soul!” The campaign was centered on our short-stay
market. The public didn’t need to process what our
message was trying to communicate. A mother’s good
medicine included chicken soup for an ailing family
member. Another advertising campaign focused on
residents feeding the birds and animals at our facility.
Here again, the marketing campaign communicated a
long tradition of how people care for and nurture living
things in the environment. One resident felt that by
caring for something, she was able to give back, free
herself from her physical limitations.
Both communicated a caring, holistic environment
without showing the nursing staff delivering medical
care.
Colors and Style

The use of proper colors is sometimes overlooked.
Certain colors evoke certain emotions. Pink is probably
not a good uniform color for police officers. Careful
consideration should be made about what colors
appropriately express the image you are trying to
convey. I suggest getting assistance from a professional
artist who understands the use of color and style when
creating an image for the organization.
Wes
When dealing with seniors there are some additional
physiological considerations for logo and brochure color
and type styles. Because seniors typically experience
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some visual impairment crisp, wider graphics

with sharp, distinct color choices are important.
Keep your marketing materials free from bold
contrasting colors. The use of true primary
colors, and avoiding pastels or same color
variations will help maintain the attention of seniors. An
industry term for this area is for everything to be “senior
friendly,” including the above contracts as well as the
overall size of the typeface. Check out the brochures of
national organizations such as AARPSM are delivering to
the public.
Anthropomorphic Brands
Key 5: Build Relationships details the crucial
nature of creating a connection with consumers. People
are more likely to feel connected to a person than to an
inanimate object. For this reason many smart companies
have created a personality to represent their product.
There are three typical ways to connect the product to a
personality:
Connecting to a Person - The brand is attached
to a person, typically the founder, such as Ford
MotorsTM which was named for Henry Ford, or
Dell ComputersTM named after Michael Dell.
Connecting to a Personality - While
MicrosoftTM is not a personal name, most
people connect the company to its founder, Bill
Gates. In the case of DisneyTM, the personality
has shifted from Walt Disney to Michael
Eisner.
Creating a Character - Mr. WhippleRM was
created to represent a sometimes embarrassing
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product, toilet tissue, while the DoughboyRM is

a giggling little character for PillsburyTM.
By creating a personality, companies provide
someone that people can relate to on a personal level.
Images that connote personality do better in the
marketplace than impersonal or generic brands.
Consistency
To reinforce and promote an image, the organization
must use its logo and tagline at every opportunity. All
marketing materials should look the same, feel the same
and share the same style. In other words, to achieve
synergy, all marketing communications should be in
alignment with one another (Key 2).
Mike
In my experience as a marketing director, I have
witnessed a lot of confusion in companies that
have multiple facilities. There is no consistency
in their brochures or marketing materials. There
is total confusion in their products, and they miss
the key point that brands them together. Why not
use one brochure that represents each facility?
When creating a brochure, avoid the trap that many
amateurs fall victim to: the Jargon Trap. Those of us that
have been around healthcare for a period of time know
what I mean. We tend to fill our brochures with
healthcare lingo that the average consumer can’t
understand. Give a clear explanation of the procedure or
service that you offer in your brochure. When I
implement customer service training in a facility, I
always try to emphasize this point. I talk about the
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interview process with the family meetings, explaining

that their mom would get a registered therapist (physical,
occupational or speech) in a certified Part A bed, if they
qualified financially and if not, they could apply for the
Title 19 Medicaid program. WOW! Talk about
confusion. In fact, if you understand what I was just
talking about, you understand the jargon.
JAAIDK
What in the world is JAAIDK? It’s just another
acronym I don’t know. I am amazed at how start-up
companies that are establishing their identity try to use
acronyms. They reason that many of the most successful
companies use acronyms. What they don’t consider is
the millions or billions of dollars spent by those
companies to establish an identity before they were
known by their initials. Most organizations are not in a
position to spend that kind of money to get their names
recognized.
I recently purchased a game called
ACRONYMITY. It is a trivia game with over 5,000
acronyms as questions. You are given the letters and
have to come up with what they represent. A category
and hint are also given because many acronyms stand for
more than one thing. (For example, in marketing, the
term CRM stands for both customer relationship
management and cause-related marketing.) Trying to
communicate with acronyms can be very confusing,
especially for customers. Do yourself a favor and use a
name people can remember.
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UMG
I was trying to explain this concept to a friend
who was starting a new graphic design company. He
created a great logo with the letters UMG. Do you know
what UMG stands for? Neither does anyone else. He
explained to me how many big companies are known by
their initials and use them as a logo. I explained that
those companies had spent millions of dollars to get into
the minds of their customers before being known by
initials. This gentleman is a graphic artist, so I also
explained that I would expect an artist to be able to
create a logo that represented his company better than
these three letters. He told me the way he designed the
three letters was unique and would be enough to garner
attention from his target audience. However, because
advertising is aimed at creating image and awareness for
new customers, by definition, people targeted would not
be familiar with the company nor the acronym. If UMG
is one day a household name for graphic arts, I will eat
my words (but he still will have spent unnecessary
millions before people could identify the company).
SBG
I worked for a company called SBG (I am using
the acronym here for anonymity). I was in charge of
marketing and had just finished the beta version of the
website. One of the partners of the company, after
spending many hours and dollars on design, told me to
leave the company logo off the website. He explained
that he did not think the logo was a good match for the
company.
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I can understand his not liking the logo. What I do

not understand is why he did not say anything before we
had printed letterhead, business cards, and now a website
with that logo. He told me that many companies do not
have a logo and picked up a magazine to show me all the
companies that just had their name with no logo. There
are many companies without a logo that just write their
brand name in a font. A name written in its own unique
and often copyrighted font is a great branding tool. This
is not the same as having a logo. When creating a visual
presence and establishing a relationship, you should use
all the branding tools available. A unique font and a logo
are a minimal necessity.
I told my boss that I respected his view. I felt it
was my duty as the marketing director to point out the
advantages of having a logo on the site, but that I would
respect his wishes. When it came time to launch the
website, I did not have the heart to leave off the logo,
particularly when the rest of the company loved the logo.
I decided to leave the logo on the site. I was laid off a
few weeks later—just a coincidence I’m sure.
The Numbers Game

Would you like a V, 500 or 505 today? Not sure
what I am talking about? These are the names of
different personal digital assistants (PDA) made by
PalmTM. I have worked in retail sales since I was a
teenager. I had the opportunity to sell Palms for a while.
It was difficult for me as the salesperson to keep it all
straight, and the customers were very confused by all the
numbers. It is easier for people to remember names than
to remember numbers (another reason to attach products
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to a personality). Eventually Palm came out with a new

line of products. The high-end PDA was called the
Tungsten T, and the low-end PDA was called the Zire. I
was excited that Palm had learned from its mistake and
now was using names that people could remember. But
then Palm added the Tungsten C, the Tungsten W, and
the Zire 71. If you are wondering what the 71 meant,
nobody seems to know. These PDAs were all different
prices with different features. This is even more
confusing than just using numbers. At least in the past,
each Palm had its own number; now different Palms had
the same name too.
Do not name your product a number. Numbers are
not attractive and do not have the ability to build
relationships with people like actual names can (Key 5).
Here is another tip: do not mix numbers and letters. Ever
notice that it is harder to remember your license than
your phone number? That is because our brains are
made to handle either numbers or letters. Mixing the two
only adds confusion. Stay away from names like
Marketing4U. Besides being confusing and causing
problems when creating a web address, they do not look
professional.
Marriage
The label reads “New Betty CrockerTM chocolate
cake mix with real Hershey’sTM Chocolate Syrup.” A
popular trend is to partner with other companies or
organizations to promote a product, but is this a good
idea for the two companies?
There are pros and cons to these types of
partnerships. On the plus side, they can gain the synergy
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of combining the recognition of both companies. Those

who do not know or trust Betty Crocker may be sold
because they love Hershey’s. Each company gains
access to the prestige and clientele of its partner.
Minuses occur when people do not buy the
product because of the partner. Those who do not like
Hershey’s (this does not include me—I love Hershey’s)
will probably choose an alternate cake mix. When you
partner with another company, you give up control of
your most important asset: your brand image. If for some
reason the reputation of your partner is disparaged with
your name attached, this has a negative impact on your
image as well.
The best way to understand partnerships is to look
at a marriage. In the right circumstances, a marriage is a
beautiful thing. It represents two coming together as one
to do greater things than they could alone. Just as in
marriage, the two should be independent and come
together for mutual benefit, not because they are needy
and are worthless alone. Breaking a partnership or
violating the trust can end in a nasty, costly divorce. So
if you decide to partner, choose wisely because it is a
great commitment with risk involved.
Mike
Developing strategic partnerships is one of the best
ways to market your facility or product. On several
occasions, I have worked with a home health
agencies, or hospice companies, to market my
facility. What tends to happen is you build
confidence with your customer in offering an
additional service that your partners offer. There is a
symbiotic relationship, and it can benefit both parties
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tremendously. Buyer beware! Make sure you choose a

reputable partner that will enhance your image and not
damage it. It happens to the best of us.
I remember working at a non-for-profit facility in
a large metropolitan area. They wanted to increase the
census in the rehab unit that was located inside the
facility. The rehab unit had struggled because it was
associated with the long- term care side of the nursing
facility. Individuals did not want to rehab in the same
area where most of the nursing home patients were.
There was confusion with the products being offered and
the community perception was that “we were just a
nursing home.” As the marketing director, I worked
hard convincing management to create a distinct unit and
to change the name to brand the rehab product with the
community. A few months later the unit was renamed
and a separate logo was created to market the rehab unit.
We created a brand-new brochure highlighting a
prominent physician in the community to promote our
product. The physician’s picture appeared in the
brochure and the unit was a tremendous success. To this
day, it is still recognized as one of the premier skilled
rehab centers in the area.
Promises, Promises
Brands are promises. The image presented by
your brand promises to deliver on the commitments
made by your marketing communications with
consumers. Break your promises, or don’t deliver on
what you say you can do, and your image will be
tarnished. Live up to, or better yet, exceed expectations,
and your relationship with customers will grow stronger.
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Meeting time and convenience needs is a major

benefit to most consumers. For this reason, many brand
promises are based on providing more time or
convenience. More important, brands themselves meet
time and convenience needs. When you look at an aisle
of toothpaste boxes, you do not know which one will
best meet your needs. If you see Brand X which you
know and trust that says “whitens teeth better,” you can
save time by grabbing that box of toothpaste and moving
to the next item on your shopping list. But if there is a
plain label brand that says it also will whiten teeth, do
you try it? How do you know you can trust this
product? You can take time to compare the labels and
ingredients with the name brand. The only way you will
know for sure is to take it home and try it. There is risk
involved and potentially a lot of wasted time. It is safer,
quicker and more convenient to use the brand you
already know and trust.
Recently people have become more willing to try
non-branded items. Over time, there has been an
increased acceptance of non-branded items. However
this is usually done at the expense of the brands
themselves. Non-branded items or brands distributed
under the retailer’s name are often placed right next to
the branded products on the shelves to gain credibility.
Do you remember the introduction of non-branded
items to the supermarket? I remember a whole aisle of
“generic” items packaged in plain black and white
labels. You could buy a six-pack of white cans that had
scrolled across the front in black letters “beer.” I
enjoyed a large bag labeled simply “jellybeans” that had
different sized jellybeans cast off from some candy
factory as imperfect. If you are not old enough to
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remember the generic aisle, you might wonder where it

went. Those items are still in the store, but the grocers
wisely changed their strategy. Stores today have their
own house brand names that usually include in the title
Select, Choice, Premium or President.
Technically these products are no longer non-
branded or generic. They carry the brand image of the
store and rely on the trust the consumer has with the
particular retailer. The reason for the shift is that plain
generic products did not sell as well as those with at
least a nominal amount of branding from carrying the
name of the store. Brands are important because they are
the guarantee and promise of the brand maker that the
product is what it says it is.
Wes
A healthcare organization delivers both a tangible and an
intangible product. Did the patient/client get
better and return home quicker, with full
recovery potential and with no relapse? Was
this done with direct assistance from attentive
personnel, or was it accomplished in spite of any
warm, comforting, encouraging staff involvement?
Therapists are often disliked during the recovery process
because they initiate some pain, but after the results are
in, they often receive thank-you notes. I bring this up
because painful memories and/or the feeling of
emotional slights are often remembered far beyond the
memory of an actual event. This makes it especially
difficult to recover from a perceived “break-of-promise”
accusation. It’s much better to have your promises
reinforced by caring staff that provide a direct link to
client well-being and, personal positive results. A caring
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involved staff can be invaluable when dealing with the

occasional service mishap and the sharing of a bad
medical diagnosis.
A Word
Keep it short and sweet. Consumers are inundated
with a plethora of messages daily. Simple easy to
remember the messages, are better. Companies should
be able to describe themselves in a few words or, better
yet, a single word. Much more than a sentence is not
usually going to be remembered by the customer
anyway. Think of the brands that have taken over the
identity of a product:
• KleenexTM
• Ping PongTM
• Band-AidTM
• RollerbladeTM
• Roto-RooterTM
Most people don’t even know that these are brand

names because they have come to represent the item
itself. This is the goal of any brand marketer. Going
directly counter to the strategy of a word standing for
your product is the practice of line extension.
Wes
For your healthcare and senior housing communications,
consider using these key words:
choice, client control, security, well-being,
wellness, home-like, client centered,
independent, assistive, catered living.
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Kendall
Eden Alternative ™ has become a brand name for any
program that involves animals and plants. Much
like someone who says “Could I have a
KleenexTM?” when really what they wanted was a
tissue. Retirement communities would get a dog
and say that they were an Eden ™ facility to gain
a marketing advantage in the community. Be careful as
you adopt a specific image to your facility.
Even Eden™ can look different in different
communities. Survey your residents, staff, families and
greater community to understand your product.
Avoid the Line Extension Trap1

If you follow the prevailing logic of most modern
companies, you will inevitably fall into this trap. Line
extension is using an existing brand name or image and
extending it to new products. Sounds like a good idea,
right? Why not use the equity of your known brand to
draw attention to a new product? The reason is that you
tend to confuse customers as to what your brand means,
and in the long run this strategy decreases overall market
share.
For example, in 1978 7-UPTM was the lemon lime
Uncola with a 5.7 percent share of the soda beverage
market. Trying to capitalize on this significant market
share, they created 7-UP GoldTM, Cherry 7-UPTM, and
assorted diet versions. Logic would dictate that with a
greater product offering they would have gained a
1 Ries, Al. Focus: The Future of Your Company Depends on It. ©1996 HarperCollins
Publishing, New York, NY. I highly recommend reading this book for a thorough
explanation of line extension and the power of focusing a brand.
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greater share of the market. On the contrary, their sales

plummeted to 4.2 percent. Line extensions confuse
customers.
Why do so many companies use line extensions if
they tend to fail? I’m not really sure why they continue
to ignore the data, but here are some possible reasons:
• They don’t do their homework. If companies

took the time to investigate the lack of success
of line extensions by other brands and
companies, they might think better of the idea.
• Ego. They feel so successful with their current
brand they think they can carry the momentum
to the next item by slapping their name on the
label. They also don’t think the seven keys to
marketing apply to them.
• Copycats. Everyone else has line extensions so
they reason that it is the proper strategy, not
taking into account the number of line
contractions that frequently occur.
• Appearance of success. An insidious feature of
this trap is that line extension usually has
initial success. Consumers are usually curious
about the new product with a familiar name
and will try the new item initially, but long-
term sales plummet. Some line extensions
become market leaders, further muddling the
argument. But in those cases, it is usually
because their direct competitors are also using
line extensions such as Diet Coke versus Diet
Pepsi.
• Appearance of growth. Most executives are
paid to come up with ideas on how to grow the
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brand. By concocting new versions of a brand,

it appears as though they are earning their
paycheck since there are more items in the
market with their brand name on the label.
• Appearance of cost-effectiveness. It would
seem that extending a brand would be cheaper,
since the company already has a place in the
mind of the consumer. On the contrary, it often
costs just as many, if not more, marketing
dollars to educate the public about the new
product line. In many cases, brands try to
reeducate their consumers about what their
name means. They are changing the promises
made by the original brand.
No Splashing
An example of this is V8 SplashTM. V8TM aired a
commercial where a person drinking the new line of
product is shocked to discover there is no tomato-y
aftertaste. After decades of advertising and millions of
dollars trying to get consumers to recognize V8TM as a
tomato beverage, they change the rules. In my book, this is
a classic example of the line extension trap, and what not
to do.
Of course there are times when it is a good move
to expand a company by offering more products. A
better strategy is to use co-branding (same company,
different brand names). CokeTM has found success in this
area with SpriteTM. Imagine if CokeTM had named its
product Lemon Lime CokeTM. Sounds absurd, but think
of the brands that have gone that direction. There is
Pepsi BlueTM, which I still am not sure is berry-colored
or berry-flavored, and I don’t really care to find out. The
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new Mountain Dew Code RedTM is another confusing

moniker; why didn’t they just come up with a new
name? But even a giant like CokeTM does not learn from
its own success and follows with Lemon Coke. Each
product needs its own image and word associated with it.
If you feel you have significant market share where you
are and you need to expand into new markets, co-
branding is the better route. Proctor and GambleTM has
built an empire on co-branded products.
Narrow Your Focus

The 20th century taught businesses the power of
specialization. Line extensions go against this theory by
trying to make one brand all things to all people. As the
saying goes “jack of all trades, master of none.” People
may not realize it at a conscious level, but they do
categorize and choose brands known for a particular
specialty. For this reason, marketers must narrow the
focus of their product. The brands that stick in the brain
are those that have a narrow, sharp and focused tip. The
broader the description and lines of a brand, the less
likely it is to pierce the consumer’s psyche. It is helpful
to picture the brand as an actual object penetrating the
brain tissue of the intended receiver. Imagine the
customer standing in front of you with the top of his or
her skull sawed off. The squishy gleaming brain matter
is sitting exposed before you. If you are using a broad,
expansive tool, it will not get past the gray matter. By
creating a narrow, focused point, the brand is able to
puncture the brain tissue. I know this is a grotesque
illustration, but I bet I got it to stick in your brain.
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Kendall
Bottom line, in healthcare, you can’t be everything to
everyone. This is harder to do when you are
serving a faith or rural community. The
community that you are serving may not have
other options for care available. What comes to
my mind is a small rural facility where I was
serving as the administrator. We were the only nursing
facility in town (only healthcare facility in the county).
We would have local kids stop by the facility to ask the
nurses to remove stitches, dress wounds, and coordinate
care for physicians who were two hours from our town.
Did we send these folks away? No, because we were a
part of the local community. We communicated this to a
larger hospital system and had the blessing to attract a
nurse practitioner to this community and raise the image
of our facility to the whole county. You might be in a
similar facility and community.
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Does your marketing stick in people’s heads?
Greatest Asset
The greatest single asset of your company or
organization is your image also called brand or brand
image. Why is this so important? Customers and
partners relate to you based on how they perceive your
reputation, behavior and corporate personality. The same
principle holds true of individuals. We trust people who
are trustworthy, treat us with respect and keep their
word. The image of the organization must be in harmony
with the purpose (Key 2) and consistently promote the
competitive advantage (Key 1) that gives a rationale for
choosing your company over the competition.
Please realize that you cannot fake an image.
Eventually your true self will be revealed to customers.
You can spend billions of dollars promoting the great
service you provide, but if salespeople treat your
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customers rudely, that money is wasted. Make sure you

understand your advantage (Key 1) and that your whole
company is in alignment with a purpose (Key 2) before
promoting an image. Your image can be taken from you
or destroyed by your own actions. Once you have made
the investment to create an image, protect it at all costs
because it is your greatest asset.
Mike
Many other facilities have taken the idea of branding one
step further and partnered with the community.
They choose a particular interest, create
popularity in the community, and before long the
community will become a marketing arm for the
facility. I know of a local family-owned nursing
home chain that has perfected this. They started out
with a small Fourth of July fireworks display. Over the
years, they kept expanding the display to involve the
community, and now people go to the facility just to see
the display. When someone mentions this facility, they
immediately relate it to the firework display. Not only
did they do a great job branding their facility, they now
have one of the better firework displays in the area.
That’s “SMART MARKETING.”
Indecent Exposure
Many people think any kind of exposure must be
good. They say, “Look at the attention that company got
from doing that wild publicity stunt.” Not all publicity is
good, as we will discuss in Key 4: Promotion. A public
relations department helps to ensure that your public
perception is positive. If you gain exposure for your
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product, make sure it is for the right reasons and is

sending the message you want to send about your brand
image. While many feel it is important to “just get your
name out there,” I disagree. You want your name to be
well known for the right reasons. Though Hitler, Stalin,
and Charles Manson are well known and publicized,
they are not exactly popular fellows. The word for such
exposure is infamy.
Kendall
It is always hard to overcome a negative public relations
issue. I have stepped into too many facilities that need to
turn around their negative image. Believe me, it
isn’t a cake walk. You might be asking yourself.
“How do you turn around a negative public image
in a nursing home?” It is a common issue in
many facilities or communities. The best offense
is a good defense. Manage your image daily. Always be
working toward best practices in your communities.
Mission, Vision, and Values are KEY to success. Simple
communication to the staff, with a simple message and
be faithful to the community.
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Sound Strategy
If you have done the hard work of finding your
advantage (Key 1) and defining your purpose (Key 2),
you should not have much difficulty in creating an
image (Key 3). The image is an expression of what the
company is about. The important thing to remember is
that you must stay focused and clearly communicate a
concise message to the target audience. Now that you
have a sound strategy, it is time to use promotion to
communicate your message to the marketplace.
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Key 4: Implement Promotions
Promotion is the nuts and bolts of the marketing

process. The promotion element is what most consumers
see and think of when you mention marketing. Before
we tackle the promotion process, there are a few points
to consider first.
Ideal Customer
Who is your dream customer? If you are selling a
hair growth product, the ideal customer is likely to be
bald, or balding and have a disposable income to spend
on your product. When thinking of the ideal customers,
try to envision them as actual persons standing before
you. Where do they live? What kind of lifestyle do they
enjoy? Determine as many traits as possible that
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characterize your ideal customers. Are they male or

female? What is their age? Their income level? These
demographic questions help you target your market
more accurately. Be as specific as possible, because the
more demographics you find for your ideal customers,
the better equipped you are to meet their needs. Ideal
customers will become advocates for your product, as
discussed in Key 5: Building Relationships. The goal is
to discover the ideal customers, then meet their needs
better than the competition by using your competitive
advantage(s) (Key 2).
Mike
Over the years, many nursing homes have relied on
capturing every possible patient through the hospital
system. As the competition grew, the promotion
of their facility was nothing more than a new pen
or brochure to stay in touch with the referral
source. But were they really marketing to the
decision maker? Who is the decision maker in a
nursing department?
When I do most of my training with the
admissions department in many facilities, I have them
spend some time tracking and trending their referrals to
see where most of their business is coming from. We
gather the prospect’s name, physician, family and so on.
As it turns out, the real decision maker is the family.
Statistics show it usually is the daughter or spouse. Most
people will also tell you that they choose a facility based
on location, although the level of care offered is just as
important. If you want to effectively market your
facility, you have to know where to direct your
advertising dollars. This also applies to what type of
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patient you want to attract to your facility. You will most

definitely market differently if you want Medicare
referrals compared to private paying individuals.
Knowing your customer is essential to SMART
MARKETING.
Wes
Demographic profiling in senior marketing is a
key element in validating potential success.
Senior housing lenders usually require a
demographic study sometimes by an
independent auditing firm. These studies,
depending on the complexity, can range from $12,000 to
$50,000. Their reason to consider such a study is that
healthcare and senior housing choices are usually made
within a conscious geographic circle of consideration.
Those geographic circles are usually a three-, five-,
seven- and 10-mile radius from the property site. A rural
setting or one that features a specific church,
denomination, structure, or other unique drawing card
like a military, sports or climate distinction can many
times influence a longer move. People, however,
generally like to stay in their immediate neighborhoods
or town with the built-in familiar support structures of
friends, family and church considerations.
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Visualize your ideal customer
Target Market
Ideal customers are persons for whom your
product is an exact match. They will compose a larger
group of your target market comprising individuals who
will likely purchase the product. You may be creating a
new market, accessing a previously untapped market or
entering a mature market with plenty of competition. If
doing the latter, be aware that you have your work cut
out for you. You can be successful, but the odds are
against you unless you position yourself properly. Use
your competitive advantage to show your product as an
alternative to the mainstream brand. If you are more
focused on a particular segment of the market, you can
steal market share from the big guys.
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For example, if I were to start my own shoe

company, I would be facing plenty of competition since
the shoe market is already saturated by big companies
with big marketing dollars to spend. My only hope
would be to focus on one piece of the market. If I
designed a shoe for tennis only, and called it the
Racquet, I could go after the tennis portion of the
market. The big- name companies make all kinds of
shoes, as well as clothing and other sporting goods. By
focusing specifically on the needs of tennis players, I
could attract the attention of that segment of the market.
The big guys can’t compete because they have already
marketed themselves as making shoes for all sorts of
athletes. Use their line extension against them. The best
they can do is co-brand and come into the tennis market
segment under a new name, but you have the powerful
advantage of being there first.
I play hockey, so I will use an example of what I
have seen happening in the hockey equipment market.
The majority of the hockey market comprises
conservative players with a love for tradition. The big
names in hockey equipment have been around for
generations. In the 1980’s a new company called ItechTM
designed a plastic face shield for helmets. This is a great
name since their product was a new technology that
protects the eyes. Hockey players accepted Itech TM
because it was a new product focused on an area that had
little, if any, special attention paid to it previously. Itech
was the first face shield on the market and gained a
positive reputation. Years later Itech TM started making
sticks, gloves, and helmets. They lost their identity as a
face shield. What does a pair of gloves have to do with
eye technology? The name no longer matches the
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product and becomes a hindrance instead of an

enhancement. Itech should have stuck with making face
shields. Now they look like all the other hockey
equipment companies minus the history and prestige.
Today there is another face shield on the market, Excel 1
TM, which is known only for making face shields. Players
think of face shields when they hear the name Excel 1TM.
Mention ItechTM and no one is sure what product is
meant. The question is whether Excel 1TM will learn
from Itech’s mistake—or will they start making gloves
also? More importantly, will you learn from their
mistakes?
Mike
I was marketing a 140-bed facility that had a
designated Alzheimer’s unit. Management knew that in
order to provide the proper care needed for this
disease, we had to change our approach to
marketing this unit. Following several
brainstorming sessions, we decided to create a
product that would fill the need for families to
get a needed break in the care of their loved one with
Alzheimer’s. While most facilities offered respite stays,
we wanted to create something that each family member
could benefit from in the care of their loved one.
We created a “Respite Stay Program” that
included an assessment tool by the physician, dietary
manager, activity director, and nursing staff. With two
different levels of stay, each resident who was admitted
went through the assessment program. In creating this
program, we knew we were fulfilling two needs that
were huge to the Alzheimer’s patient. We gave the
family a much needed break and armed them with the
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tools to better care for the family member at home by

giving them feedback from this assessment. The
marketing genius behind this program was that, if they
were satisfied, they would choose our facility again
when the time arose. That is product marketing and if
done right, it can have an immediate impact on your
census and revenue.
Wes
Healthcare is a niche market and facility
programs, scope of service, insurance carrier
choices, and levels of care determine which
striated marketing choice will be the main focus
for consideration. The facility type that most
closely epitomizes a full scope of service is a Continuing
Care Retirement Community (CCRC). Those types of
communities will have independent housing in villas
and/or apartments with on-site available assisted and
skilled licensed services and possible home health
services to help maintain residents longer within their
apartment setting.
The Four Ps
Most descriptions of marketing include the four
Ps, which are product, price, place and promotion. Some
add a fifth P that stands for packaging (which can just as
easily be covered as part of the P of product). Others
have six or seven P’s. Rest assured the following four-P
approach provides a suitable explanation of marketing. If
you want to understand marketing, you have a firm
foundation if you can remember these four simple Ps
and what they signify.
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Product
The product is the item or items provided by the
company for the consumer. Products are both tangible
and intangible. Products may be physical items or a
service provided. Many physical products also have
some value-added service that accompanies the delivery
of the physical item. Packaging is important because it is
part of the product itself. Many people judge a book by
its cover, so make sure you do not skimp on the
packaging.
Price
Any economics student can tell you that price is a
matter of supply and demand. The market will bear a
certain price point and settle into equilibrium. This is not
very helpful when trying to determine the price for a
new product. Price is a very confusing area of marketing
for many people. This is probably because price is one
of the most misused and abused marketing tools.
Traditionally, there are three ways to set the price for a
product:
¾ Competitive Parity - The practice of charging the
same price or average price of the competition.
¾ Standard Markup – The practice of always adding
the same percentage markup to the cost of products
(e.g., cost plus 50 percent).
¾ Zero-Based Pricing – The practice of receiving a
small margin per item with a high volume of sales.
The problem with all three of these methods is
they do not take into account the customer’s perceived
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value of the product. Let’s assume I am going to sell

hats. The hats cost me $10 to make so I decide to sell
them for $15. What if the people buying my hats only
think they are worth five dollars? I am in big trouble. I
cannot afford to sell hats for less than they cost me to
make, but if that is the perceived value to my customers
I will not sell any at $15. On the other hand, what if
customers love my hats and would actually be willing to
pay $20 per hat? I am cheating myself out of five
dollars per hat. So how do you know what people will
pay? Do the research before going to market. Either hire
a market research firm or do it yourself if you are on a
budget. If people are willing to pay less than your cost to
produce the hats, you will be avoiding disaster by
knowing this information ahead of time. If people are
willing to pay more than your perception of a fair price,
you can be even more successful than you imagined.
Your price must be based on the perceived value
to the customer. Price is a double-edged sword, and
many companies find themselves falling into the trap of
competing on price. Price is not a competitive advantage
by definition because it can be copied easily and
immediately by the competition. Price wars with the
competition hurt everyone. Customers will be happy at
first because they will get better deals, but be
disappointed in the long-term when prices go back up or
their favorite company goes out of business. Price wars
destroy the perceived value of the product in the
marketplace. Even if your company wins the price war
by undercutting the competition, customers will feel
cheated when prices return to normal levels.
I went to McDonald’sTM to get my thirty-nine-cent
hamburger the other day, and to my dismay what had
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been 39 cents the previous six months is now all of a

sudden 79 cents. I felt cheated, but if they had not been
39 cents the week before when I bought them, I would
not have felt that paying 79 cents was a big deal. Like
millions and millions of other people, I have been going
to McDonald’sTM since I was a child. A few years ago
they panicked and jumped into the price wars with their
competition. This was a mistake. By creating their own
“value menu,” they started looking like everyone else.
There is now nothing special about going there because
they are just like their copycat competition. I just heard
on the radio that McDonald’sTM is closing almost 200
hundred locations. It does not sound like the low price
strategy is working.
Low price is not a valid competitive advantage,
yet companies spend millions of dollars saying they are
the low price leaders. Low price has no distinguishing
characteristic about it, particularly when everyone is
saying the same thing. Companies are also telling their
customers to shop based on price. Therefore, if their
competition has a lower price, they should go to them.
Let me repeat, companies are paying for advertising that
tells their customers not to be loyal, but to shop based on
low price! Besides encouraging a price war and creating
disloyalty, this violates Key 5: Building Relationships.
By telling people who the lowest price is the best
criterion for choosing a product, companies are
discouraging customer loyalty based on reputation or
quality of service. This practice is so prevalent that it is
no wonder many people are confused about the proper
place of price in a marketing plan. The good news is that
after reading this, you now know better than your
competition.
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Mike
One of the hardest things for most facilities to
overcome is the pricing strategies in their
buildings. To understand this we must first look
at what our customers are looking for. Each one
of the products in a facility, Alzheimer’s care,
orthopedic rooms, respite, etc., all have a basic
ingredient that the customer expects. The basic
components of any facility are a room, nursing care,
staff, services, and so on. There is an expected product
value that each customer wants when they come to your
facility.
They expect to have certain services, qualified
staff to meet their needs, and a staff that is accessible if
any issues occur. In this competitive environment, how
can a facility increase their perceived value of the
product? One of the simplest ideas is to create a product
that gives the customer a choice and adds intrinsic value
to the product.
One of the best examples of this can be found in
the automobile industry. They have become experts at
creating packages to add perceived value to their
product. This can also be done in the long-term care
industry. Whether nursing home or assisted living, you
can offer your customers’ choices in accommodations by
creating an amenities package that will add value and
also offer choice in prices. I once created a deluxe semi-
private suite by adding amenities to the deluxe room and
sold it for $50 to $75 more than the standard semi-
private suite. The family toured each room and chose the
higher-priced room based on perceived value. This is an
excellent way to create a pricing strategy for your
facility and continue to add services for your customers.
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Wes
The healthcare and senior housing setting is
usually very price sensitive; however, there is a
recognized willingness to pay a premium for
added services either due to a more complex
acuity (stair-step pricing) or a desire for more
privacy, space, or amenities.
Licensed healthcare placement is usually need-
driven and often involves a younger generation who is
not in a position to be a direct caregiver, either through
the lack of skills, choice, or other full-time job
responsibilities. Some facilities have recognized a
unique pricing approach, which provides an outstanding
pricing environment catering to those who feel guilty
that they cannot meet the current physical/ mental needs
of their family member. Other individuals, who are self-
selecting their independent living units, desire only the
best they can afford. This has resulted in a severe pricing
dichotomy for similar product categories and a different
experience between the haves and the have-nots. The
organizational positioning statement, corporate structure,
mission, vision and value statements, and the actual
costs of operations will largely determine your facility
pricing model.
Some not-for-profit organizations purposely
adhere to a low pricing model and try to supplement
actual costs with a philanthropy or church-based
donation program. This strategy has proven to be
increasingly difficult in recent years as the pool of
potential private donors has shrunk. Some believe this
area will blossom with the transfer of wealth anticipated
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with the passing on of the World War II generation.

Time will tell.
Place
Ask what are the most important attributes that
contribute to business success, and many will say
location, location and location. Where your business
resides is indeed an important consideration. Opening an
air conditioner store would likely be more successful in
Arizona than in Alaska.
Place also deals with distribution and logistics, a
world unknown to most consumers. They don’t question
how the milk got to the dairy aisle; they just pick up a
carton and move on to the next item on their list. The
steps involved in getting milk from a cow’s udder in
Kansas to a pasteurized, homogenized, vitamin A&D
fortified skim milk carton in a Safeway store in Oregon
are fairly complicated. Each step in the distribution
process is an opportunity for enterprising individuals to
make a profit, and/or for manufacturers to keep costs
low. Often it is more cost-effective for manufacturers to
focus on their competencies and to allow distributors to
capitalize on their specialized abilities of distribution.
The Internet revolution turned the traditional
distribution model on its head. The question for most
retailers today is whether to be a brick-and-mortar or a
click-and-mortar store. Brick-and-mortar is a traditional
physical location where consumers can visit a building
to purchase products. Click-and-mortar is a name given
to Internet businesses which parodies the brick-and-
mortar description. Companies expanding either online
or to physical locations should avoid the line extension
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trap by giving each location its own identity. The

Internet site should have a different name than the
physical store and vice versa.
Al and Laura Ries, in their book The 11
Immutable Laws of Internet Branding, call Law #1 the
Law of Either/Or.2 Your business should be either
online or at a physical location, not both (at least not
with the same name and branding). They also give some
tips on determining the best choice for your product:
• Is the brand tangible or intangible? The
Internet tends to be a medium for tangible
products and a business for intangible products
(banks, stocks, insurance, etc.).
• Is the brand fashionable or not?
Fashionable products (like clothing) tend to
use the Internet as a medium, while non-
fashionable products (like computers) tend to
use it as a business. For clothes, how do you
know if it will fit, what it will look like, and
will it be comfortable?
2 Ries, Al and Laura. The 11 Immutable Laws of Internet Branding. © 2000

HarperCollins New York, NY. Another great book from Al Ries written with his daughter
Laura.
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• Is the product available in thousands of

variations? If yes, then the Internet tends to
be a better choice, because it is difficult for a
retail store to house thousands of products.
Half of the customers leave retail stores
without making a purchase because the item is
not in stock. You should narrow your product
line in retail, or you will lose customers who
cannot find the model they want in stock. If
you use the Internet, then a wide selection is a
competitive advantage.
• Is low price a significant factor in the
brand’s purchase? If yes, then the Internet
tends to be a business. The ability to check
many prices quickly is making the Internet a
price-sensitive medium. This makes it difficult
to make money with the Internet as a business.
• Are shipping costs a significant factor
compared to the purchase price? If so, then
the Internet tends to be a medium. Self-service
has taken over the marketplace because it is
more economical.
The Rieses recommend using the Internet as part
of the overall integrated marketing communications
strategy regardless of product. If the Internet site is not
the business itself, then the Internet should still be used
as a medium to promote the physical locations. The
Internet is a powerful IMC (integrated marketing
communications) tool that is here to stay. We will cover
the use of the Internet and interactive tools more in depth
in the next section on promotion.
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Wes
In healthcare and senior housing the place
where the service is provided helps to reinforce
that people made the right decision to do business
with you.
¾ is it easily accessible,
¾ centralized to their world,
¾ does it have a décor and amenity presentation
compatible with their values,
¾ have enough room for their belongings,
¾ have available space for entertaining friends,
¾ have enough programming to keep them engaged,
and
¾ Is it already filled with former neighbors and
friends?
Some larger organizations have chosen to build
repeat architectural buildings for branding purposes.
Examples are SunriseTM, Holiday HouseTM, or Capital
Senior LivingTM. Others choose to build buildings and
amenities specifically tailored to the one site based on
topography, amenity access (golf course, water feature,
rural, city, or suburban locations), and resident choice
profiling based on targeted focus group analysis.
Kendall
It is hard to sell a fancy facility to a farming
community. In any instance, it doesn’t matter if
you’re in a corporate cookie-cutter facility, or a
unique privately held facility, your reflection
and bond to the community is critical. Don’t
minimize your residents’ community history or
identity.
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Promotion
Promotions are what most consumers relate to
when discussing the marketing process. Promotion
involves carefully blending various elements of
marketing communications to work in harmony with one
another, enhancing, complementing and synergizing into
a dynamic interactive message with the target audience.
When done correctly, integrated marketing
communications or IMC tools become the culminating
force which brings your marketing efforts to fruition. If
you have done the hard work and laid the proper
foundation by Defining Your Purpose (Key 1), Finding
your Advantage (Key 2), and Creating an Image (Key 3),
then you are more than ready to Implement Promotions
(Key 4).
Many companies don’t put in the effort to form
their strategy first; instead they jump right into
promotions. But what are they promoting? What is their
purpose? What is their value proposition (competitive
advantage) to the customer? What image are they trying
to project? It makes sense to understand Keys 1, 2 and 3
before trying to tackle the promotion of Key 4.
Think of each of the following methods:
advertising, public relations, sales promotion, direct
marketing, and Internet/interactive as tools in your IMC
toolbox. Like my dad used to say, “Don’t use a
screwdriver when you need a hammer.” Always pick the
right tool for the job. At the same time, IMC tools work
together; hence the term integrated. An engine and four
tires will not get you far, but put them together with the
right parts and you have a speedy Ferrari. So use as
many appropriate tools as possible to generate a
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synergistic marketing promotions campaign. The

following descriptions are in no particular order.
IMC TOOL #1 ADVERTISING

What is advertising?
Advertising is defined as paying a fee to create
image and awareness. Effective advertising is aimed at
new potential customers and always promotes the
distinct competitive advantages of the organization.
Sounds simple, right?
Forms of Advertising
There are the three main forms of advertising.
Print advertising consists of magazines, newspapers,
journals, brochures, flyers, etc. Broadcast advertising is
found on radio, television, film, and other formats. Then
there are various forms of interactive advertising
including word of mouth, mobile ads on automobiles, T-
shirts, Internet sites, etc.
Kendall
When I was a graduate student in healthcare
administration, it was considered unethical to
advertise your care. You couldn’t say you were
better or smarter than the hospital or nursing
home across town. Only the chiropractors
advertised for patients. Not that DC’s (Doctors
of Chiropractic) were wrong to advertise for patients, but
the medical doctors (MD’s) thought ethically it was wrong
to advertise for patients. Your physician was the center of
knowledge and as such, what was best for your hospital.
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This is all changed in our modern society. I have

friends whose kids have gone to eight different schools
from Pre-K to the 12th grade. Many of our friends have
multiple doctors, directed by their health plans. The tie to
the family physician of the past is hard to find in today’s
world. It does still exist in rural America, but it can’t be
considered a norm anymore.
Spend some time identifying your community’s
character and how it relates to the community at large.
Communities all have personalities and population groups
that they serve. My favorite method to understanding who
you are at a facility level is using focus groups. You can
always find out what people think of your operation; just
ask them.
Wes
In healthcare and senior housing I would propose
a fourth form of advertising. Although some may
consider it a subset of interactive advertising, I would
suggest that activity- or event-based advertising
is a great way to entice new customers to your
facility, while reinforcing value to your existing
residents or database referral sources. A good
initial contact decision was made and you will
remain on their choice list to consider as their needs
progress. Mike spoke earlier about the Fourth of July
facility and its reputation for this activity. The goal is to
retain goodwill and maintain top-of- mind awareness.
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Current Customers
Have you noticed how consumers receive
advertising for products they already purchase? How
frequently do you view or hear advertising for a product
you currently use? This is a violation of the true purpose
of advertising: to create image and awareness. You are
already aware of the product, and you must have a
favorable view of its image because you are purchasing
it. Building on current relationships with customers (Key
5) is very important, but advertising is not the proper
tool. If people are already customers, then advertisers
should already know who they are. Advertising to
current customers is not necessary and besides being
wasteful, can in some cases be counterproductive.
I sometimes receive advertising material from
companies of which I am already a loyal customer. In
some ways, I am offended that they do not know who I
am. It’s like calling your mother on the phone and giving
her a detailed explanation of who you are as though she
does not already know. She would think there was
something wrong with you. Advertising is aimed solely
at potential customers, while current customers should
receive targeted communications that acknowledge their
unique relationship with the company.
Don’t overlook the importance of the term
potential. By potential I mean someone who would
actually purchase the product. The majority of people
are not ever going to buy your product no matter how
much advertising you do to them, so why spend your
finances trying?
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Mike
If there is one thing that I learned early on in my
career, it is the principle of positioning. All healthcare
facilities find themselves trapped in a very
competitive and volatile environment. One
mistake or blunder can send a facility into a
public relations nightmare. The key is to know
your strengths and market them in some form of
the media. I’ll never forget the confidence I had in
marketing my first facility. I did a beautiful tour, found
out their needs, and told the family that we have the best
nursing facility in town. I encouraged them to tour the
facility down the street (even gave them the name) to see
why our facility was the best choice. I remember the
next week waiting for the family to come back only to
find out that they had chosen the facility down the street.
Here are my Six Pearls of Positioning.
¾ Never steer your customer toward your
competition; they just might like the competition
more.
¾ Always sell your strengths about your facility, and
avoid bringing up the weaknesses.
¾ To increase your sales advantage, always market
and sell the differences between you and your
competition.
¾ Give the customer facts about your services not
fluff. They can spot a sales pitch.
¾ Avoid insider healthcare jargon. Speak with
confidence but don’t overwhelm your customer
with your knowledge.
¾ Be genuine. Know the needs and wants of your
customer before you begin selling.
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These are basic principles that somehow get lost in the

day-to-day operations of marketing. You will spend
thousands of dollars on advertising the wrong ideas if
you don’t understand these principles. If your
advertising resembles the competitions, then you have
failed to communicate the differences that make you
special and unique.
Hitting the Target

Television commercials are the most widely
recognized form of advertising. When I ask my
marketing students on the first day of class for an
example of marketing, they usually talk about television
commercials. Usually their favorite commercials are
beer commercials (remember, these are college
students). BudweiserTM and Bud LightTM have some of
the funniest commercials. Many people have seen these
commercials and will even imitate the characters. I often
ask my students to raise their hands if they have seen a
particular BudweiserTM commercial and if they like it
and/or think it is funny. Almost all of the students raise
their hands. Then I ask them, “How many of you drink
this beer?” In all of my classes only a few, if any, raise
their hands. Do they not drink beer? No, they just drink
different beer from the ones advertised by Anheuser-
BuschTM. This leads to a discussion about targeting new
potential customers.
Most of the people who see these commercials are
not, and will not ever be, customers for Anheuser-
BuschTM, so who cares what they think? There is no
return on the advertiser’s investment for these students
to see the commercial. The advertiser is paying to reach
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this audience who does not buy the product; therefore

there is no return on investment for this audience.
While no advertising can be perfectly targeted, the
more targeted, the better. When unintended viewers are
receiving your message, you are wasting money. Even
worse, if they do not like the advertising, that is, think it
is funny, you might be creating antagonists out of
potential future customers. The more targeted the
message, the more effective, the less expensive, and the
greater the return on investment. We will go more in
depth into this concept in Key 5 when we look at the
Marketing Funnel.
Accountability
So if mass advertising is so ineffective, why do
people do it? First of all, they obviously have not read
this book and are misinformed. Most people do what
they see others doing, or what has worked in the past.
There is also an entire industry based on “the bigger and
more creative the better” ideology. Advertising
executives give each other awards for creating unique
advertisements. Unfortunately I see a lack of
accountability in the current system. Bottom line, it does
not matter how good the production quality is for an
advertisement; what matters is whether people buy the
product. It is a good strategy to use high standards for
creating advertising slicks, but it has to be a means to the
end, the end being when consumers understand the
message and buy the product. Some of the worst-
produced advertisements (infomercials) are still
successful because they sell the product.
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NissanTM
A few years ago NissanTM ran a series of ads with
an old man standing in a field. The camera would fly
around and then circle around his face. What did the ads
mean? What were they trying to say? What advantages
were they trying to promote? No one really knows, but
the ads were creative. When I spoke with an employee at
the Nissan offices, she said she had no idea what the ads
meant, nor did anyone else in her office. They were
confused and did not really like the campaign.
Eventually, NissanTM changed the campaign, but what
exactly they were trying to communicate will remain a
mystery. Are you willing to spend millions of dollars to
create a “cool” ad that no one understands?
Raisins
Oh, those adorable California RaisinsTM, dancing
across the table! Can you hear them singing, “I heard it
through the grapevine”? Who did not love those darling
claymation creatures of the 1980’s? They were so
popular they even had their own Saturday morning
cartoon. And you would think that the sales of California
RaisinsTM must have been prosperous during this time,
but you would be wrong. Sales of California RaisinsTM
actually declined during the campaign. This proves
there’s a big difference between entertainment and
selling the product.
Got Sales?
Arguably, one of the best-known advertising
campaigns of all time is the series of “Got Milk?”
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commercials. I love these commercials; they are

hysterical. But as you can probably guess, they have not
to date improved milk sales. In fact, they are considered
successful because milk sales stopped declining for a
while. Maybe I have high standards, but I expect a
campaign to improve sales, not keep them stagnant.
ROI
The criterion for success must be the ROI, return
on investment (i.e., people buying the product), not
people liking the advertisements. I believe advertising
agencies have tended to avoid being specific about
returns for two reasons. One, they don’t really know
how effective they are because they do not have systems
in place to truly measure effectiveness. Second, they
know there is a lot of waste and they do not want to
discourage their clients. That’s why advertising talks
about making impressions on viewers. If this is the case,
just say “I don’t do impressions,” and ask for sales to be
made instead.
Typically, sales are the measure of success, but as
any statistics student will tell you, correlation is not
necessarily causation; there are other intervening
variables. In English this means that just because sales
increased does not mean that the advertising (ads) was
the cause; it could have been something else. For
example, if you run a radio ad for hot dog buns on the
Fourth of July and sales spike for that weekend, it is not
necessarily because of the ad, but because more people
are barbecuing for the holiday.
In fact, if you are not measuring effectiveness,
you could be running counterproductive ads. What if
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more people would have bought your hot dug buns, but
they did not like the ads so they bought another brand, or
ate hamburgers? You could deduce from the spike in
sales that the ad had been effective, when in fact you
could have sold more with better ads, or no ad at all. If
you are not measuring properly, you will waste money
and, worse yet, you could be paying to cause damage to
your image.
Internet Bubble
In the late 1990’s the Internet was riding high as
the vital component of the information revolution.
Internet company founders were getting rich overnight.
Investors were pouring billions into what appeared to be
the next big thing. By 2000 there seemed to be trouble,
and many Internet companies started to go out of
business.
A major reason the Internet bubble burst is that
people were basing their business model on the selling
of advertising on their sites. The remarkable advantage
of the Internet, as we will discuss further below, is that it
is measurable. The Internet does not try to guess how
many people look at a site, or click on a banner ad, or
purchase a product from a banner ad for that matter; it
can actually measure all of those things in real time and
real numbers instantaneously. This is a Copernican
revolution in terms of advertising. It was also the death
of many of the businesses based on selling Internet
advertising. They were still trying to sell based on
impressions, but such fantasies are not needed nor
tolerated in the Internet world.
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Linkage
So if advertisers seem to be unaccountable for
results, what is the answer? This is a complex problem,
and if you can figure out an effective answer, you will be
rich. It is impossible to completely measure all
advertising, but some methods are better than others. I
have already mentioned the capabilities of the Internet to
evaluate sales. If you need hard numbers, the Internet is
a tremendous tool.
For other advertising methods, use some kind of
linkage that can be tracked. If you send coupons to
consumers, place a code on them so you can track which
ones were redeemed and by whom. If you do a television
commercial, add a web address or telephone number on
the screen. Place the same information in other media,
such as magazines. When consumers log into the site or
call, ask them how they heard about the company. If
most of your inquiries are coming from the magazine ad,
then you can ditch the television commercial and its
costs.
All your advertising should provide some kind of
linkage that provides you feedback about its
effectiveness. Without this data, it is difficult to justify
advertising costs. This information is also vital in
creating more targeted advertising and building
relationships with current customers (Key 5).
How do your promotions link you to your customers?
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Inward-Focused Jargon
Many companies fall into the trap of inward-
focused jargon. That’s why we see so many acronyms.
They expect people to know, or want to figure out, what
XYZ means. You may have noticed I used the initials
ROI above but was sure to immediately explain the
meaning. I hate to bruise corporate egos, but I have to
tell them that most people don’t really care what their
acronym means. Using terminology that makes sense to
you but not to new potential customers in advertising is
counterproductive. Marketing, and advertising in
particular, is about communication. The more clear and
simple messages are better. Instead of trying to be cool,
just try to be understood. If you can do it in a cool way,
that’s even better but cool without understanding is just
a waste of money.
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No, it’s all about your customers
Brown?
UPSTM started a campaign where they asked,
“What can Brown do for you?” Since I am interested in
marketing, I asked, “Who is Brown?” and started
investigating. I wrongly assumed that Brown must be the
name of their new package-tracking software. I spoke
with a UPSTM representative who told me Brown was the
nickname for UPSTM given to it by the employees. So the
answer to the mystery of what Brown stands for, and
why they are spending millions of dollars on advertising,
is that it means UPSTM. Do you see anything wrong with
this picture? If not, start rereading this section from the
top.
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Why spend so much money to advertise a second

name for the same company? They have already spent
millions to distinguish their three-letter initialism of a
name in our minds; now they want to throw more cash at
an extra name? Why spend so much money to confuse
people? This is a sign that UPSTM has become inward-
focused. They are more concerned with having fun with
an inside joke of a nickname than in reaching their
customers.
Alternatives
Good advertising promotes image and awareness
of the distinct competitive advantage(s) of the product to
potential new customers. There is a world of difference
between advertisements based on sound marketing
principles and those produced for the amusement of the
creators. With all the potential dangers and expense of
advertising, is there a better alternative? Yes there is;
read on…
Mike
The purpose of marketing is to increase revenue.
Most nursing facilities have forgotten the basic truth,
“You have to spend money to make money.” I
had the opportunity to work with one of the best
long-term consultants in the country. George
Molloy taught the sound principle of crafting an
advertisement that targets the family members
and care-givers. I soon learned that whatever product I
wanted to market in my building, I could effectively
advertise to increase revenue. Here is a prime example.
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One of the quickest ways to generate private pay

revenue in a facility is to go after the “respite” stays or
short-term stays that give the families a break. We
crafted an advertisement, ran it in a local newspaper with
the title “What happens to Mom when you go away on
vacation.” The title alone was enough to generate calls.
We advertised a program called the Vacation Plan for
Caregivers. This advertisement, which we mixed with a
few others, generated so much interest that our inquiries
doubled in one month and our private pay census
increased by 40 percent. Yes, advertising does work.
Spend some time researching what you want to sell and
don’t bunch all your services together.
IMC TOOL #2 PUBLIC RELATIONS/PUBLICITY
Free Advertising?
What if I told you that you could receive free
advertising that would be more effective than any you
could possibly purchase, would you take it? Welcome to
the world of public relations and publicity. PR or
publicity is non-paid coverage by the media. Smart
and/or thrifty organizations use the media to their
advantage. The advantages of using PR and publicity to
send marketing messages is that it is free and that it is
more credible to the recipients, since it is assumed to be
provided by an objective source. The disadvantage is
that there is little or no control over what is reported, and
a negative or distorted marketing message can be
reported.
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Wes
I have regularly challenged my marketing and
activity staff to coordinate positive publicity for the
facility. By regularly submitting press releases
and photos for activity events within the facility,
and also outreach programs to the outside
community, we come across as an engaged,
interesting, active community. By also occasionally
submitting human interest stories on our residents and
sometimes linking them with the testimonial
advertisements we had purchased in the newspaper, we
found that our call traffic increased as prospects
reconnected with old friends and also sought to be a part
of a vibrant community. Every community has a
repository of history in the lives of its residents. A well-
crafted memory lane story will resonate with like-
minded prospects. I think that is why “Reminiscence
Magazine” has a great following. People like to be
reminded of good memories and accomplishments and
feel they are still a valuable contributor to society and
their circle of friends. This tactic has always been a
successful approach at my facilities.
Sewn of the Same Cloth

What’s the difference between public relations
(PR) and publicity? That depends on who you ask. I
distinguish the two by separating them into proactive
and reactive forms of the same process. Publicity is
actively seeking media attention or offering a particular
message to news and community organizations. Public
relations is handling and/or spinning public perceptions
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and reports about the company. Corporations have

caught on to the benefits of PR/publicity and usually
employ a PR person or department. Now you know what
happens to all those scholar-athletes majoring in public
relations!
Typically, coverage comes from news agencies
like local radio and television stations who are called to
cover an event sponsored by the company. Coverage is
free, but be careful because you have no control over
how you are represented. Opening a new factory that
provides local jobs may seem like a positive boost to the
economy, but the media may portray you as an eco-
terrorist destroying precious habitat. Remember to use
the right tool for the job. PR and publicity may not cost
money, but it could cost your reputation. In some cases
when media response is in doubt, it is better to pay for
advertising so you can control the message. In the long
run, this is cheaper than defaming your image and trying
to rebuild. Don’t overlook the importance or the value of
positive PR and publicity, but be aware of the risks
involved.
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IMC TOOL #3 SALES PROMOTION

Promoting Sales
Sales promotion is a good way to break into a
market by providing a motivator for new customers to try
your product. Sales promotion is usually confused with
personal selling because the term sales is used. While they
work well when used together, they are very different
techniques. Personal selling is the process of interaction
between the seller and the consumer while sales
promotion is the use of specific incentives or rewards to
induce trial of a product.
Inducing Trial
Sales promotions typically offer a discount,
rebate, or reward for trying a new product, thus reducing
the perceived risk for new clients to try a product. For
example, if I can buy the new Brand X toothpaste for
half price with a coupon, then theoretically I have
reduced the risk of trial by 50 percent. The idea is that
once the clients try the product, they will be sufficiently
impressed to continue to purchase the product at the
regular price. You are demonstrating faith in your own
product by providing incentives to the consumer.
Types of Sales Promotion

There are many types of sales promotions. Most
of what we see is on the consumer side, but the majority
of sales promotions are given to wholesalers and
salespeople for selling a product. Most consumers are
familiar with coupons, a popular form of sales
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promotion. Some others include buy one get one free;

free-with-purchase packs; bonus-size packages; in-store
specials and sales; contests; loyalty programs; as well as
sweepstakes and rebates. A powerful way to build
relationships and often meet your potential customers is
through special events.
Most salespeople work on some kind of
commission where they receive a percentage of what
they sell. They also receive all sorts of promotional
items, such as T-shirts, key chains, and coffee mugs with
the sponsoring company’s name emblazoned on the
front. These giveaways to salespeople are commonly
called perks. Many times sales of individual products
will also provide salespeople with an additional reward
called a sales performance incentive fund (SPIF). So a
shoe salesman may make a two percent commission on
every pair of shoes sold, but he also may make an extra
five dollars when he sells a pair of Nikes.
Buyer Beware
Sales promotions given to salespeople can cause
problems for consumers and retailers. If you have
unscrupulous or untrained salespeople, they are likely to
sell a customer a product that he or she does not need so
that they can make a SPIF. Many retailers stopped
providing incentives because they had too many problems
with salespeople pressuring customers to buy items with
incentives, which led to declining sales. When purchasing
products, I will ask the salesperson whether their
recommendation is based on using the product and/or if
they get a commission.
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I have been in retail sales for many years and have

never sold an item because I got a SPIF, but it was
tempting. I liked to sell the item with a SPIF because I
made more money but it was not worth my integrity. This
was not always the case with my co-workers. I worked for
the national nutrition store GNCTM, where we received no
commission but did get a SPIF on certain items. One
customer returned a product my coworker sold her
because she had trouble sleeping when she used it. My
coworker told her we were out of the product she asked
for (which was a lie) and that this one would do the same
thing (which was also a lie). He also did not tell her that
the guarana in the product is a form of potent caffeine,
even though she said would be taking it before bedtime.
What did he recieve for compromising his integrity by
lying to a customer and disrupting her life by keeping her
up all night? He received $2.
Manufacturers, to boost sales of their products,
often use SPIFs. They are usually effective, but they must
be done carefully and given to trustworthy persons. In the
meantime, be wary if a salesperson is a little too excited
about a product, and don’t be afraid to ask questions.
Events are Your Friend

Having special events are an excellent way to move
closer to your prospects and start to build relationships
(Key 5). Depending on the setting you have the opportunity
to come face to face with the people who are looking at
your product.
When working with a local college I recommended
a series of events the school could use to get to know their
target market. Choosing a college is not typically an
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impulse decision, so having prospects visit the campus and

feel at home is key. The school can take advantage of its
beautiful campus and energetic students to make
connections with prospects before they graduate from
high school. By creating special events on campus like
sports clinics, concerts and retreat weekends, the students
become familiar with the campus and its people.
Imagine the eighth grade student who goes to the
campus for a baseball clinic taught by current college
students each spring. By the time they are a junior they
have spent time on the campus for four years and have
friendships with current students. When they are deciding
where to go for school, and possibly leave family and
friends, the school has a leg up on the competition.
Should you charge for these events? Absolutely. The
price may not be monetary, but you must get contact
information and build a strong database of the people who
are attending your events. They are your pre-qualified
leads; they already know who you are and have expressed
an interest in your product.
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Rethinking Rebates
Those advertisements in the paper have some great
prices, but then you read the fine print and it says, “after
rebate.” Why do companies use rebates? When I ask
most people this question, they say it is because a lot of
people will not send in the rebate form and the
manufacturer keeps the money. Does this sound like a
good strategy? It is not wise to have people angry with
you because they missed a rebate deadline, or to think you
are manipulating them out of their deserved cash. This is
the opposite of building relationships (Key 5) with
customers.
Rebates tend to confuse people and, by their nature,
are manipulative. They say the price is one amount, but
you pay another. You have to cut off this code, copy that
receipt, jump through a hoop, and do it all by a deadline.
Do you really want people associating this unpleasant
experience with your company? If you can afford the
rebate, a better alternative is to lower the price, or offer a
short-term promotion. I hate filling out rebate forms, so I
beg manufacturers, for the sake of humanity and my
personal sanity, please stop the rebate confusion.
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No one wants to fill out rebate forms
Linking Sales Promotions

It is important that sales promotion activities are
used in conjunction with advertising and public
relations/publicity activities. So if you are going to
promote a sweepstakes, place the details in an
advertisement. Let’s say you are giving away a dream
vacation. You could place an ad in a magazine with a
sweepstakes entry form. The form should be coded so you
know the magazine and the date and can track the
effectiveness of the advertisement. The consumer is
exposed to two IMCTM tools at the same time, which
provides synergy. Promotions should also link to the
product when possible. If you sell pasta, you could give
away a trip to Italy; that also reinforces the authentic
nature of your product. IMCTM tools work best when
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linked to each other; they also provide the manufacturer

the ability to track consumer information.
Turn It Off
Sales promotions should be used for only a limited
time and should be turned off quickly. Always have an
expiration date—the shorter, the better. Long-term
expirations diminish urgency for consumers. Often they
will set the offer aside and forget about it until it is too
late.
Another reason to limit their duration is that
extended or continual sales promotion activities lead to a
devaluation of the product in the eyes of clients. If there is
always a coupon available for half off, they will not ever
want to pay full price. The goal is to get customers to use
the product and then to pay the regular market price.
Unlimited sales promotion for an item is not really sales
promotion; it is a lowering of the price, which is not a
good idea. As we discussed earlier, using price as a
marketing tool is a trap because it could lead to a price
war.
No War
Excess sales promotions by one company usually
lead to retaliation by competitors. Each side continues to
lower the perceived value of its product until both are in
trouble. Consumers are usually happy but, in the long
term, price wars affect everyone. If one of the companies
goes out of business, then people lose their jobs. In other
cases, one company outlasts the competition and is able to
take over the market. They then raise their prices higher
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than they were at the start. I’m for a free market economy
and I believe that the market corrects itself, so you have
the freedom to lower prices and use sales promotions as
much as you desire, but smart businesses will differentiate
away from price.
Don’t Send Coupons to Customers

If you have read this section so far, then it should
be obvious why this is a bad idea; but just in case I’ll
reiterate the reason. Coupons (and sales promotions)
should be used to induce trial. Since current customers
have already tried the product, there is no need to induce
trial.
Retaining Customers
In the advertising section, I warn not to send
advertising to current customers but to send them targeted
customized communications. Customer retention and
loyalty programs are a way to show gratitude, promote
continued use of the product, and encourage customers to
be advocates to family and friends. Frequent shopper
cards, premiums, and thank-you letters are a few ways to
express appreciation and build relationships (Key 5) with
current customers.
Firing Customers
A big complaint I hear about using sales
promotions is that people do not use the product without
the incentive. My parents own an Italian restaurant. My
father tried running some coupons in the direct mail pack,
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but he was not happy with the response. He says the only
people who used them were paying in pennies and looking
for more deals. They also did not return later to make full-
price purchases.
The first problem is poor targeting. The wrong
people got the promotion. This is another reason you
should not run promotions indefinitely. If ideal customers
who enjoy the food had received the coupon, they would
have tried it and then returned to pay full price.
If you do get customers that are not ideal, or worse
yet, are anti-customers, fire them. These are not the kind
of people with whom you are trying to do business. They
will only look for bargains and try to take from you. They
will not build a positive reciprocal relationship with you
(Key 5). Fire them.
Cause-Related Marketing
A very effective sales promotion strategy is the use
of cause-related marketing in which organizations create or
partner with other charitable organizations or causes.
When teaching my Sales Promotion course I highly
recommend: Brand Spirit.3 Cause-related marketing is a
great concept, because it is a win-win/win-win for the
company, its employees, the charity and consumers.
The company wins because they have an increase in
the perceived value of the product due to a contribution to
charity. They are better able to differentiate themselves
from competitors. The employees of the company win
because they are helping to contribute to society through
their efforts. It can be difficult to find meaning in your
3 Brand Spirit : How Cause-Related Marketing Builds Brands by Hamish Pringle & Marjorie
Thompson
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work, particularly if you are making mundane consumer

products. On the other hand, if your company contributes
to a good cause, it brings meaning and purpose to your
activities. Obviously this is a win for the charity since they
are receiving needed funds. Lastly, cause-related marketing
is a win for the consumers because they are helping a
worthy cause with their otherwise ambiguous consumer
purchases.
When possible you should match the cause to the
product. There are two ways to go about cause-related
marketing campaigns. Either start your own or partner
with an existing philanthropy. We spoke of the pros and
cons of partnering earlier, and the same principles apply
here. For those who have the resources, creating their own
charity or foundation is a wise choice because they wholly-
own the entity and its image.
So if you wanted to promote your new dog food
Fluffy Time, you could start the Fluffy Time Foundation
to rescue fluffy dogs. Portions of the sales from Fluffy
Time Dog Food go to support the foundation. The
foundation directly correlates to the product and
reinforces a positive image in the consumer’s mind. The
foundation is a great way to achieve free publicity. The
public would perceive you as a caring company, thus
increasing your perceived value. Besides differentiating
yourself from the competition, studies have shown that
people are willing to pay a premium to purchase products
that help a cause. The employees of the company can feel
good about helping these fluffy little creatures to live a
long and healthy life. The Fluffy Time Foundation receives
funding to help our fluffy friends in need. Consumers can
buy your product with a smile, knowing they are helping
others.
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Sincere Causes
If the above sounds like crass commercialism, it
could sound the same way to consumers. That’s why
causes must be sincere. If the company and its employees
are not truly behind the cause, then the campaign could
backfire. Many people have been critical of the plethora of
products that have partnered with various breast cancer
charities. They have been questioned whether they are
trying to help women or sell products.
I believe this is especially the case when companies
are asking consumers to mail in yogurt lids and
admonishing them to “help lick breast cancer.” In my
mind, there are a lot of things wrong with this tagline, but
I will let you use your imagination as to why. Filling out a
rebate form is bad, but mailing in sticky lids is even worse.
There are few things more difficult to send in than a
yogurt lid. If you do cause-related marketing, do it for the
right reasons and with sincerity, or it will have a negative
impact on your image.
Old Cause, New Tricks

There has been more cause-related marketing lately,
but is this a new idea? Cause-related marketing has been
going on for the last century, but it is increasing today.
When modern marketing began in the Western countries,
the population was living on a subsistence level.
Advertising promoted the value of products and went into
technical details of what the item could do for the
customer. In the late sixties there was a cultural and
financial shift. People had more money and they were tired
of the same old advertising. People were also disillusioned
with materialism, so ads started to emphasize the
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emotional. Perfume ads talked about how the scent made

you feel like a woman, not how big the bottle was.
Today we are living in one of the most prosperous
times in history. People have also realized consumer
products cannot provide for emotional needs no matter
how appealing the advertising. At the same time there is a
lack of community. People, especially prosperous people,
like to give to society. Since there is a distrust and lack of
participation in traditional institutions like churches, many
people do not have an outlet to give to their communities.
Consumer products come to the rescue. Cause-related
marketing meets additional time and convenience needs of
consumers by letting them have their Duncan Hines cake
mix and contribute to charity too.
For psychology buffs, I will point out that this
pattern correlates with psychologist Abraham Maslow’s
Hierarchy of Needs model. Consumers used to be just
scraping to survive; advertising appealed to their base
needs of survival. Next there was advancement to the next
level of emotional needs. Finally today, we are at the
pinnacle of the hierarchy: self-actualization, fulfillment by
giving to others.
Use Them for Good, Not Evil

Sales promotions are a powerful tool. When done
right, they can be very effective. When misused, they
can bring disaster. Many times the success or failure of
sales promotion is dependent upon the salespeople.
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IMC TOOL #4 PERSONAL SELLING

Sell it
Personal selling involves the people of the
organization who directly interact with clients. Even if they
do not realize it, the people who interact with the public
are “selling” the organization by the way they speak,
behave, and represent themselves. Personal selling is a
form of direct marketing because there is direct contact
with clients and potential clients. Smart organizations
make sure their salespeople are aware of their importance
and equip them for the role. They also mine the treasure
trove of information available from salespeople and have
systems set up to perform the task of gathering this data.
Lifelong Personal Seller

Personal selling is a topic near and dear to my heart.
I have worked various retail positions for almost twenty
years. My first job was working at a drugstore when I was
fifteen. I was a part-time soda jerk at the snack counter
and part-time front counter salesperson. I have worked for
a sporting goods store, two health food stores, a hockey
pro shop, and a store that sells paper and electronic
planners. I have also spent hundreds of hours on the
phone as a financial advisor and telemarketer. I have
learned a thing or two about sales over the years.
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On the Front Line

Ask any general how battles are won and lost, and
they will tell you the frontline soldier makes the difference.
Even in this modern age of computers and unmanned
drones on the battlefield, it is still the humans running the
machines that make the difference. In marketing, the
salesperson is the one on the front lines and who makes
the difference to marketing success.
Wes
I think sometimes the most effective sales
reinforcement tool available is a well-trained, pleasant,
responsive staff. Yes, a salesperson is an
essential ingredient, but I think more sales are
won through the efforts of housekeepers, dietary
workers, receptionists, and maintenance staff.
Clients and their families make decision
transitions very easily between the thoughts of, “If they
take this much pride and care and attention to the
building, food and landscaping and telephone contacts,
then they will take equal or better pride and care of my
loved one.”
I like to have staff and their families identify
closely with the facility. Showing pride of affiliation and
recognizing their personal accomplishments publicly
reinforces that, as staff, they made a great decision to
come to the facility. They, in turn, share that pride, trust
and confidence with their community.
One way we train all staff to help when our sales
team is touring prospective clients, is to have them
prepared to share how their specific job and efforts make
a personal difference in the life of the residents.
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A housekeeper may say: “Hi! My name is

___________. I’ve been here at _________ for nine
years. I’m here on this floor or this hallway to see that
your mother lives in a clean and safe environment, free
from infections. I also am here to see that her clothes are
clean and neat and available for her to use. Let me know
if there is anything else I can do to help.”
A dietary aide may say: “Hi! My name is
_____________. I’m here to provide choices and a good
meal experience for your mother and, of course, for any
guests that she may have. Let me know if there is
something special she really likes. We also try to
recognize each resident on their birthdays with a special
dessert treat, even though there may be special dietary
considerations. I hope I’ll get a chance to share my
gooey lemon butter cake with you.”
A nurse’s aide may say: “Hi! My name is
______________. I’m here to encourage your mother to
be as independent as possible and yet help her with
things when she may need it. Your name is very
familiar. My sister, I think, had you as her teacher in the
seventh grade. We’ve lived in the town our whole life.
It’s great to be able to help those now who had such a
good influence on my life.”
An activity coordinator may say: “Hi! My name
is ______________. I’m in charge of good times and
celebrating life here at _____________. We have all
kinds of arts and crafts and entertainment coming to the
facility. I heard your mother was an elementary school
teacher. We also have a story hour session with the day
care center each Wednesday. We’d love to have your
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mother help with the reading or to hold one of the small

children on her lap during the story hour.”
Each staff member, through their comments,
reinforces the core mission, vision, and values and
beliefs of the organization and personalizes it for the
relationships they may have with residents. Prospective
residents and family decision-makers respond well to
this approach because it speaks to the heart of the matter
and brings the staff members individually into the
extended family unit of the resident. A person does
much more for “family members” than they will ever do
for strangers.
Kendall
I experienced this recently with a family member calling
me for advice in placing their father. I referred
them to Mike’s current rehab facility. For the first
time, the insurance company redirected their care
to another facility. The family felt confused and
concerned because they wanted to take my advice,
but felt the insurance company had more knowledge.
Interestingly enough, both facilities were providers with
the insurance company. The true strategic partner here
was the physician directing care to a facility with which
he/she was more comfortable. The facility was hurting
itself with poor communication to the physicians regarding
care.
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The face of your company to your customers is your frontline

sales and customer service people regardless of how much you
spend on promotions
The Weakest Link

Poor personal selling tends to be a weak link for
many companies. You can do all the advertising and
promotion in the world, but it will not matter if your
potential customers and customers are not treated well by
the salespeople. This is called providing good customer
service. The term is a misnomer for many businesses; in
fact a consumer advocate has labeled these the “customer
no-service departments” of companies. Often the
promotions can create expectations that the sales staff are
not prepared to meet.
When I worked for the nutrition store GNCTM, they
did extensive advertising. They ran numerous television
ads and had several beautiful full-color ads in all the
exercise magazines. They had to be spending several
million dollars per year on these ads. At the store level, we
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were paid minimum wage with no commission, but we did

receive occasional SPIFs (see definition above). I knew
nothing about vitamins and health products when I
started, and was looking forward to learning about them
on the job. GNCTM did have a training program, but in my
case I received no training from my manager. I like to
learn new things on my own so I was motivated to learn
about all of the health products. I studied the books in the
store and read all the labels on the packaging. I would ask
customers questions such as “What are you using this
product for? Is it working well for you? Have you tried the
GNCTM brand?” I was able to get into the minds of my
customers. I learned a great deal of good information by
surveying people on what worked and what did not. I also
tried all the popular products to see what worked for me. I
was then able to make recommendations to customers
based on personal experience.
I did a good job at GNCTM and the customers liked
me. I was praised for selling the most “gold cards” (a
frequent customer discount card) on a regular basis. I was
very knowledgeable about the product because I was
personally motivated to learn. On the other hand, I had a
coworker who had been there before I started but knew
very little about the product, did not like health foods, did
not interact with customers, and sold items that would get
him a SPIF even if it was not a good match for the
customer. If you owned this store, which employee would
you rather have wait on your customers? As a customer,
which of us would you prefer to wait on you? While I
enjoyed working at GNCTM, I had to leave to get a better
paying job.
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Mike
Early on, I learned that in order to be an effective
salesperson, you have to be excited, motivated, and willing
to go above and beyond in customer service. If
you do all of these things, opportunities will always
come your way. I’ll never forget a part-time job I
had selling Christmas trees. Of course it was easy
to be excited because of the Christmas season;
however, the below- freezing temperatures did make it
hard sometimes to be motivated. Nonetheless, I went out
of my way to exude great customer service and at the end
of one day a customer came back to the lot. He stated he
owned a company and was looking for good salespeople.
He liked my attitude and especially was impressed with my
customer service. Needless to say, I was offered a job and
then had my first big-league sales job. I always try to
remember this when I am training a new salesperson and
try to teach them about customer service. You just never
know where it may lead you.
Bright Flight
Bright flight is the process of all the smart people
leaving a business. Typically, this happens because the
smartest and most talented people realize when a business
is not run well or they are not being compensated
adequately. If you want to attract and retain quality people,
you must pay them what they are worth. Bear in mind that
studies have shown money is not the primary motivator
for most people. Employees are willing to receive less pay
for pleasant working conditions. Pay is a motivator, but
how employees are treated is also a big factor in their
dedication to a company. It is probably cheaper to treat
people with respect than to pay them enough that they will
work at a job they do not like. You must either pay your
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people well or treat them right. You are better off doing
both.
Training Pays
Studies have shown that the average return on
investment for training is 20 to one. That means for every
dollar you invest in your employees you should see a $20
return in productivity. That’s a tremendous return not
found in most places in the business world. Training helps
businesses to attract and retain quality people. Quality
candidates are attracted to companies with good training
programs. When hiring people, you have three alternatives.
First, hire someone and train him or her to do the job well.
Second, hire someone who already knows how to do the
job. The problem with this choice is that it is much more
expensive to hire someone who already knows how to do
the job. Third, pray for a miracle because without training
or experience, it will have to be a miracle for your new
person to succeed. Train your people.
Kendall
While working with a faith-based facility with a long
history of average care, we wanted to know how much our
turnover really cost the facility. The turnover rate at this
facility was around 125 percent, so it was a
significant task to measure. What we discovered
was astounding! Every new employee hired cost
approximately $1,894! We applied this to the 123
new employees hired for that year and WOW, that was
$232,962! The management team was at a loss for words!
No one could say that we didn’t have a budget for training
our staff. We just had to change our attitude about how we
were going to spend our time.
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If you want more of the green stuff, invest in training
Five Factors for Personal Selling Success

First, let salespeople try the product. If your
product is as good as you think, they will become
advocates for the product (Key 5). Second, train them in
the product. Knowledgeable salespeople are confident and
will help establish a positive relationship with customers
(Key 5). They are less likely to make mistakes and tend to
be more satisfied with their job. Third, provide a pleasant
environment. The best people look for and stay in good
working environments. Fourth, pay salespeople well.
Proper financial compensation is another way to keep and
attract quality people. Last but not least, get feedback from
your salespeople (Key 6). They will feel valued and you will
cull priceless information.
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IMC TOOL #5 DIRECT MARKETING

Go Direct
Direct marketing is a customized message for a
specific target audience. Some information is already
known about this audience to whom relevant targeted
advertising materials are sent. To be effective, research
has to be done about prospective customers before
sending these materials.
Wes
Direct marketing has been a benchmark of the
senior housing market strategy for a number of years.
Area market penetration rates (demographic targeting
task) demands that the facility unit count be based on
five- to six percent. This leads to a direct mail campaign
program which counts a two to three percent return
response rate as being a successful campaign,
even though it usually takes a three-tiered
contact to get a response. Senior retirement
marketers like this approach because it is target-
focused on pre-qualified potential candidates and is
relatively cheap for the results. A facility is able to fine-
tune the profile characteristics as desired. Usually a three
to seven profile benchmark criterion is adequate to get a
sufficient listing group.
The value of this program is only as good as the
purchased lists; not all lists are equal. Lists, by their very
nature, are time-sensitive and need to be purged and
updated. People regularly move and die; or financial or
health circumstances may later disqualify the potential
prospect.
The key goal of a direct mail piece is to get a
response, then a visit for a tour, and then either a
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validation of interest or a secondary referral of someone

who may be interested. One of the best list campaigns I
ever did at a facility was to solicit 250 existing residents
to offer up their address books and contacts in exchange
for a free month of rent should one of their contacts
move into the community. They were pre-qualified and
already linked to the community through their friendship
with our resident. We extended our circle of interest for
minimal cost because we paid only for results.
Get the Facts

Several companies sell marketing lists that contain
names of people who fit a particular demographic. These
can be useful in some cases, but you are still reliant on
the quality of research provided by an outside source.
The best way to find information is to get it yourself.
Most organizations already have a relationship with
current customers and should be implementing tools to
better serve them. You can provide a valuable service to
your customers by offering them products of use to
them. You can also annoy them into the arms of
competitors with useless, ceaseless, irrelevant marketing.
Gain feedback (Key 6) from customers then adjust your
marketing messages (Key 7) to make your offerings
relevant and build a better relationship (Key 5).
Your best recipients for direct marketing are those
people who are pre-qualified or self-qualified. This
means they have already expressed an interest in your
type of product either directly to your company or
through a third-party source. Many people out there
would welcome your advertising because they are in the
market for your product. The process of getting pre-
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approval for the sending of marketing materials is called

permission marketing.
Join the Club

I lived in Southern California during the Card Club
boom of the 1990’s. Most of the major grocery store
chains had their own clubs that provided discounts to
holders of their store’s club card. On one level, I thought it
was a little silly because I was not really a member of a
club. I knew I just got the sale price on items that a few
years before had been available without a card. On the
other hand, I was studying marketing in college and
thought it was a great idea for stores to get to know their
customers better. They had my name, address, phone, and
age, and knew how often I shopped and exactly what I
purchased. This is an incredible amount of information to
have about your customer.
I kept waiting for the stores to send me a coupon to
try a new chocolate chip cookie. They could tell from my
purchases that I was an ideal customer for chocolate chip
cookies. I never received that coupon, nor any other
customized marketing materials. Why not? Why would
they not use all the information I was freely providing
them? My guess is they had too much information and did
not know what to do with it. Or perhaps they never saw
the value of the information and just thought I would buy
more because I thought I was in a special club. I felt they
were wasting my time by filling out a form and carrying
around a stupid plastic card. Why go to all the trouble if
they were not going to follow up and solidify the
relationship with customized offerings and marketing
messages?
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All but one of the area chains gave up on the cards.

They started running promotions telling how they had
done away with the cards. Another store advertised how
you never needed a club card in their store in the first
place.
A few of the chains changed hands, and that is
when things got really confusing. I went to a large grocery
store on the weekend and needed my card; I went back
during the week for something I forgot and they had
changed the name of the store. All of a sudden, the
cashiers were laughing and assuring me I did not need a
card anymore when I checked out my groceries. About a
week later, I went to the same store and I needed my card
again because the store had changed ownership again (if
this seems strange, remember it was California where
anything is possible).
Confused? So was I. I do not mention the names of
the stores because I honestly cannot remember which was
which. I still go to that store, but I am not sure what the
name is anymore. I hope you understand by reading this
book that confusing the customer, especially about your
brand name, is bad. Marketing is about communication,
directly helping people to understand and not be confused.
The card clubs were not limited to grocery stores.
Drugstores, gas stations and pet stores are among the
other retail locations offering club discounts. While there
are still many companies that continue to use these cards,
and I hold a few of them, I have yet to see a personalized
marketing message from any of them. This is a waste of
valuable data about customers (Key 6) and a missed
opportunity to strengthen relationships (Key 5).
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Catalogs
I have seen some good examples of direct
marketing from catalogs. I used to receive a catalog from
FranklinCoveyTM, the company that sells time management
planners. I purchased a set of calendar pages by mail order,
and the next year I received a catalog about two months
before my pages expired. The catalog had my name on it
with a personalized message that said something like,
“Michael, your pages will be expiring in October, and we
have some great new products to choose from. Your
Monarch size products are available on page 22.” I was
very impressed.
I felt good that they knew who I was and were
giving me information to make my life easier. They were
actually meeting my time and convenience needs instead of
giving me more unsolicited advertising to sift through or
throw in the trash. I am sad to say that I no longer get
those personalized catalogs. I started getting about one
non-personalized catalog a month from them that I usually
threw away because there were too many. I was also not
happy that all of sudden they did not know who I was
anymore. I had slipped back into the anonymity of the
mass market. Now, for some reason, I do not get any
catalogs from them at all.
My marketing professor was a big fan of a running
store in San Diego that sent him personalized catalogs.
While in the store, they measured and tested his foot. They
were able to determine what kind of runner he was and his
unique pronation (the angle of the foot striking the
ground). They smartly entered his information into their
database and would send him personalized catalogs. Their
message said something like, “Hello Nick, it has been six
months since you bought your ReebokTM running shoes.
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Based on your running style, you probably will need to

replace them soon. Turn to page 17 to see some suitable
replacements.” This is a great use of collected data to
focus marketing efforts (Key 6) and to build relationships
with customers (Key 5).
Dear ________,
Before you get too excited about personalization,
realize that it must be used correctly. When I receive
marketing pieces with my name on them from companies
I have never heard from, I am not flattered but fearful. I
think, “How did they get my name and what do they want
from me?” Anything that says “Dear Micheal Dahane”
goes straight in the trash. And if someone calls and cannot
pronounce my name, I know the call will be short. Fake
friendliness does not build relationships (Key 5), it prohibits
them.
Knowing that names can sometimes get on lists for
unsolicited material, I have used pseudonyms. When I
signed up for a free muscle magazine I used the name
Michael Steel Daehn. That way anything I receive with the
name Steel shows me who sold my name. Besides, it is fun
to see a muscle magazine come with the name Michael
Steel Daehn printed on the front. If you want to test a
company, use its name as your own. So if I sign up for the
ACME catalog, I would put Michael ACME as my name.
Anytime I get unsolicited mail for Michael ACME, I know
ACME is the culprit.
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Direct Mail
Thankfully, my mailbox is only a few short steps
from the dumpster. I walk over and throw away handfuls
of advertising and handfuls of the advertisers’ cash. The
rate of return on direct mail has been steadily plummeting
over the years, and response rates remain only a fraction of
a percent. If that does not frighten you, then perhaps the
widely circulating e-mail encouraging people to mail
advertising back in the postage-paid envelopes might get
your attention. Of course, this wastes even more of the
advertisers’ money, but the point is that people are not
only irresponsive to unsolicited mail, but becoming hostile
as well. Unless you have data that shows your mail piece is
of value to the recipient, you should invest your money in
another tool.
If you do use direct mail, make sure it is tailored to
the needs of the recipient like the catalog example above.
Terminix had a successful direct mail campaign that sent
notices to homes in the path of an infestation of termites.
In this scenario Terminix was providing useful information
about a potential problem and offering a solution. This
was not mass advertising since they only sent the pieces to
those homes that were in danger.
E-Mail
E-mail has tremendous advantages. The same costs
are not involved since you do not have to pay printing and
postage fees as with direct mail. The best situation is when
people are able to sign up for your e-mail list from your
website. This is permission-based marketing that has been
proven to work wonders.
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I love the St. Louis Blues hockey team. I regularly

receive e-mails from the Blues Hotwire that provides me
breaking stories about the Blues. The team also informs
me of jersey sales and ticket prices. Do I mind getting this
kind of advertising? No, as a fan and a customer with a
strong relationship with the team, I welcome this kind of
information.
Many teams and companies have used e-mail
effectively in this manner. “Spammer” is the worst thing
you can be labeled in the e-mail realm. “Spam” is a term
coined for unwanted and unsolicited e-mail. To avoid this,
always provide a way for recipients to remove themselves
from the e-mail list and do not send unsolicited e-mail.
Telemarketing
While writing this I just got a phone call from the
Southwestern BellTM phone company for Mr. Agrusa, the
name of my father-in-law. I explained he does not live
here, and the caller asked if I was the phone decision
maker. I wisely said “No, my wife is” and the caller said
“thanks anyway” and hung up. I wonder how much
money Southwestern BellTM wasted to interrupt me while
writing this wonderful book? Well, at least it gave me a
great illustration.
Actually, that phone call was rather distracting so I
decided to take a break and did not continue writing this
until the next day. As I got back into the groove and
starting writing again, guess who called? Southwestern
BellTM called asking for Mr. Agrusa again. Their marketing
is beginning to feel a little more like harassment. In fact,
consumer groups are trying to make such calls illegal. To
help consumers, there is now a device called the
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PhoneZapper that is available to block unsolicited calls. I

have some friends who enjoy telemarketing calls as a
chance to play mind games with the callers by using funny
voices and acting like imbeciles. Once when asked how
much he spent on long distance calls, my friend
responded, “I do not have a phone.”
The problem is that a phone call is rather personal.
Of course, we want to build a personal relationship with
customers (Key 5), but we must earn the right to be heard.
Telemarketing is a poor advertising tool because it is a very
personal tool being used with strangers and non-
customers. Telemarketing is a good tool when the
prospects have prequalified themselves, and/or the call is
being provided as a client service. Following up on a sale
to make sure everything is working to the client’s
satisfaction is a great way to cement an already established
relationship and bolster future sales.
Network and Home Marketing

Companies such as AvonTM, TupperwareTM, and
HerbalifeTM changed the traditional channels of
distribution. These organizations use what is called
network or home marketing. There are no retail locations.
Individuals sell the product to friends and family, then
either deliver the product by hand or have it shipped.
There has been tremendous growth in this area over the
past decade for two reasons. First, people enjoy buying
from friends and family in a relaxed atmosphere. Many of
the products are sold in homes, and the sales presentations
are called “parties.” The second reason for the rise in
popularity is that individuals begin selling to supplement
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their income. It is becoming an increasingly popular

practice for one of the parents to stay home with children,
and this business model provides a way to earn income
without driving to an office to work. Look for this
industry to continue to grow over the next decade. If you
are marketing a new product, especially one that correlates
to home use, this could be the best channel to use.
Saturation?
I sometimes tell my students that direct marketing is
oversaturated. There is too much of what passes for direct
marketing such as mailings, e-mail and telemarketing.
However, since most of these efforts are not based on
knowledge about the prospect, they are actually another
form of mass marketing. True direct marketing has
knowledge about the recipients and provides relevant
customized information they will likely embrace. People
welcome marketing material that meets their time and
convenience needs and makes life easier. What is needed is
more genuine direct marketing, and less of what passes for
direct marketing, but is actually a nuisance.
IMC TOOL #6 INTERNET/INTERACTIVE

World Wide Wonder
I began working for an Internet development firm
in the summer of 2000. I did not know it at the time, but
the bubble was already bursting. The Internet provided a
tremendous boost to the economy as it revolutionized the
way business is performed. Many of the companies
founded were based on shaky business models.
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Traditional business plans provide a way to generate

revenue—which many Internet companies did not
consider. The demise of many of these companies was
only a matter of time, and when the time came for the
shakeout, many disappeared. What did not disappear is
the power of the Internet to influence the way business,
and in particular marketing, will be implemented.
Wes
The regular use of Internet newsletters,
information linkages, and web pages for facilities is still
under evaluation. It's amazing how many residents find
some past connection with the other residents. The pre-
resident Internet contact could help link the two
prospects together and assist in making the sale.
Many facilities have a posted web page;
however, most use it for online employment
applications or Mapquest TM capability for family
members. Some have expanded its use to include
resident mail boxes to encourage out-of-state family
communications. This medium intuitively seems more
suited to use by the non-senior population. The potential
customer/contact tracking capability is huge and may
prove to be the best way to garner sales in healthcare in
the future. Today, however, the personal face-to-face or
direct referral source still reigns supreme.
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Kendall
Internet utilization is just starting to pique interest
in retirement communities. Recently, I built a retirement
community associated with a university and
medical school in Kirksville, Missouri. The
residents attracted to the community were
definitely in the active adult community mind-
set. Residents demanded this community be wireless and
tied to the university system. It wasn’t an option!
Residents had cameras attached to their computers
and talked via Internet connections to grandchildren
around the country. The amount of banking and
investing done via computers was amazing to me as
well. This is a new senior! Are you ready?
“Custom”er
A key feature of the Internet is the ability to
provide interactivity with content. I have gone on ad
nauseam in this book about creating a customized message
for prospects and customers. The Internet provides a
means for marketers to provide customizable content.
Consumers can pick and choose not only what they view
but how they view it. Once they have taken the time to
customize content, they will not likely change to a
competitor. The customized content builds a relationship
between the company and the customer (Key 5).
I was invited by a friend to join a hockey fantasy
league on YahooTM! a few years ago. The league was free
except for providing some personal information in order
to register. I discovered that YahooTM! also provided me
my own personal start page on the Internet. There was a
link to my fantasy team and whatever other content I
wanted. I could put news headlines, comics, team scores,
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maps, and all sorts of other useful tools all in one place.
Yahoo! allowed me to choose what items I wanted to have
on my start page, a choice of colors, and how the
information is laid out on the page. I discovered later that
this same service is provided by my ISP (Internet service
provider), EarthlinkTM. I had already spent the time to
customize my Yahoo! Page, so I did not bother with the
EarthlinkTM page. Since YahooTM! was the first to establish
and then customize this relationship, I did not want to
change. Yahoo! was able to reinforce and protect their
relationship with me from competitors. I still use the
Yahoo! Page, and they receive revenue from advertising
posted on their site. Since I am in the hockey fantasy
league, I see ads targeted at hockey fans. Eventually, I
became disenchanted with EarthlinkTM and decided to
switch to YahooTM! as my Internet service provider. I
already had a great relationship with them before I was a
customer.
The important thing to remember is that people
expect interactivity on websites. Several companies did not
do well trying to provide video or written content that
offered neither customization nor interactivity. Radio,
television, and print media are still available for
communicating information and are well suited for most
purposes. It is easier to watch television lying on the couch
than to boot a streaming video on my PC while sitting at
my desk. On the other hand, if I want to see a particular
highlight, I can find a copy on the Internet and play it on
demand. Some cable companies, sensing their vulnerability
to Internet competition, are developing some interactivity
into their offerings through digital menus and video on
demand.
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Hit Me
The second key feature of the Internet is the ability
to track activity. Because the movements of viewers
around the site can all be recorded and tracked, there is a
plethora of data not provided by any other IMC tool. Most
people think a “hit” on a website means that someone
visited the site. Actually any time your cursor moves over a
link on a site it is counted as a hit.
There are a few key metrics focused on by Internet
marketers. They know what kind of software you are using
to browse the Internet. Companies can tell how you found
the site, whether through a search engine or a link and
sometimes, more important, marketers see where you
exited the site. I often will leave a site if I do not like or
understand the design of a particular page. I know that I
am sending a message to the company that there is a
problem with that page for me.
Just as with the club card data, there is almost too
much information available to Internet marketers. There
are several programs available to help companies make
sense of Internet data. Collecting all this information is
futile if it is not used to customize the experience and
build stronger relationships (Key 5).
Sticky
A site is sticky if people stay on it and/or return on
a regular basis. Usually this requires providing
information, entertainment, or services for viewers. To
make a site sticky, make sure you add and update
relevant content frequently. I set Yahoo! as my start
page and view it several times a day. I have a lot of
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important resources listed on the same page, so it is of

great benefit to me.
Mystery Meat
Mystery meat navigation is what web design
expert Vincent Flanders calls the fancy rollovers on
websites. These are the sites that have pictures of a
square, a circle, and a triangle and you have to guess
where each will take you when you click or roll over
them. When you put your mouse over them, they will
usually give you more information. So when you point
to the square, it shows text that says “contact
information.” Flanders urges designers not to make
viewers guess where things are. They should be clearly
labeled. What if street signs were blank until you shined
a special light on them? Think of the accidents that
would occur.
While some of these designs are artistic, they are
not appropriate for most websites that are trying to
interact with customers and clearly communicate
information. To learn better web design, I recommend
visiting Flanders’ website: www.webpagesthatsuck.com.
The Flasher
Another Flanders nemesis is the use of fancy
“Flash” presentations. Flash is a software program that is
used to create many of the animations seen on websites.
There are two problems with Flash. First, it usually takes
a long time to load. You do not want people clicking
over to a competitor because they did not want to wait
for your cartoon to load. The second reason is that most
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of the animations are commercials for the company. If

the person is already on your site and ready to buy, why
do you need to show them a commercial?
Check Please
In many cases Internet users want to find relevant
information and make a purchase as quickly as possible, so
why make them wait? Mystery meat navigation gives
unwanted challenges to customers trying to find the
information they need. Flash presentations are equivalent
to going to the cash register at Target and they say, “Wait.
Before you buy anything from us, watch our commercial
about why you should shop at Target.” Faster computers
may make the slow loading of web pages with Flash
obsolete, but you should always allow your customers to
make purchases as fast as possible by giving them quick
access to the checkout.
Win-Win
The Internet is a win-win situation in many cases.
The Internet should be a key component for most
modern businesses. It provides a place for prospects and
customers to gain customized information about the
company for less money than traditional printing and
mailing costs. Customers can access information,
catalogs, and forms on their own. You do not have to
ship as many brochures since many people will just read
the information or print it themselves. Many customers
will also provide their own data entry. They prefer to go
to a website and fill in their information, which saves on
the cost of the company’s paying staff for the same task.
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DISCus
Another interactive marketing device is the CD-
ROM. Unless you live in a cave, you have probably
received many of these from AOLTM. Place the CD in
your computer and it provides you with information
about the product and a link to their website. The AOL
disc also has software that allows you to use their
service.
Other companies have used CDs to send slideshows
and music presentations of their product to prospects. An
innovative company created business cards with contact
information printed on the front and a playable CD on the
other side. I like the idea of these cards, but they are costly
to produce and should be used only with targeted
customers who can benefit from the information. In most
cases, it makes more sense to invest in a quality website
and put your web address on your paper business card.
Here to Stay
Internet and interactive communication is here to
stay. You should be using this tool as either the primary
means of distribution or as a complement to your other
marketing communications. If you need further help
with creating a web presence, I recommend contacting
my good friends at Nexdesign Studios; check out their
website at www.nexdesignstudios.org. (Yes, I am an
advocate for their product [Key 5].)
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The Importance of Synergy

1+1=11
This equation is impossible in the world of math,
but not in the world of synergy. Synergy occurs when
the sum is greater than the individual parts. A one-by-
one- inch square of wood can support 50 pounds of
pressure, but two one-by-one inch squares side by side
can support 500 hundred pounds of pressure. Working
together they can do much more than they can do alone.
People often refer to sports teams as having
chemistry. The players may not look great on paper as
individuals, but together they form a team capable of
winning a championship. Another example is the
Christian Church as the representation of Christ’s body
on the planet. The Church is made up of frail, failing
human beings, yet together, and with Christ as the head,
it is the most powerful force on the planet. The same is
true of marketing communications. The more the
communications tools are integrated, the more synergy
occurs and the more powerful the promotion. Thus the
title integrated marketing communications.
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Bees and honeycomb - sweet examples of synergy in action.
Golden Ticket
If you are a child of the 1970’s like me, you
remember a magical place made of chocolate rivers,
candied flora, and mushrooms with marshmallow filling. I
am speaking of the inside of Willy Wonka’sTM chocolate
factory, from the film Willy Wonka and the Chocolate Factory.
I show this film to my marketing students to demonstrate
the powerful synergy of the WonkaTM marketing
promotion. Five golden tickets are placed randomly in
WonkaTM bars. WonkaTM throws the whole world into a
frenzy looking for the coveted tickets. The news media
covers the process, reporting on the finding of tickets.
One girl’s father has his factory of workers opening 100’s
of boxes of WonkaTM bars looking for a winner.
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In this film, chocolatiere Willy Wonka is

implementing a powerful and popular sales promotion. He
knows his target audience of chocolate consumers would
love nothing more than to see inside his secret chocolate
factory. He gets free publicity from the news-hungry media
who cover every second of the campaign. Wonka does not
have to pay for advertising; the news media does it for
him. A powerful synergy is created between the two
elements of sales promotion and publicity that sells
thousands of WonkaTM bars.
Congruency Provides Synergy

Linking the various tools together into a cohesive,
collaborative package provides synergy. Each tool must
provide a consistent look and feel. If printed
advertisements use a dog and the color orange with an
Arial font, then the brochures, coupons, letterhead,
website and every other marketing communications tool
must have the same elements. This repetition and
consistency help people to remember and identify your
brand.
Have you ever noticed that the color of traffic
signs is significant? Warning signs are usually yellow or
orange, street signs are usually green, and stop signs are
red. Imagine if traffic signs were all different colors.
Some warning signs were blue, some streets signs were
yellow, and some stop signs were green. What if every
city picked its own color of stop sign? Depending on the
city you were in, the sign might be purple, blue or pink.
You might recognize the octagon shape, but in this
alternate universe, the shapes are all different too. The
signs would be more difficult to identify quickly.
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Thankfully, for safety’s sake this is not the case.

But what happens when people are marketing their
brands? Sometimes their logo is blue, sometimes green.
Sometimes it has a circle around it, sometimes a square.
All of these factors make it more difficult for consumers
to identify the brand and, unlike in traffic, most people
do not have much motivation to care. Companies should
ask if there is consistency in the look of their website, in
their print material and on television. Inconsistency
confuses and distracts people.
Colors and shapes are rather simple things to keep
consistent, but what about the message? Are different
claims being made on the radio than in newspaper ads?
Are you touting your product as a high-end commodity
that is hard to obtain and then printing coupons in the
Sunday circular? Do you feature all men in some
advertising and all women in other ads? Pick a look and
feel, and implement it consistently across all marketing
communications.
No matter what style you choose, always make
sure you are promoting your competitive advantage (Key
1). While that advantage is likely to stay the same over
time, individual campaigns promoting the advantage can
and should change over time lest they become stale.
Keep the same message of promoting the advantage, but
present fresh perspectives and rephrase the message in
modern contexts over time. When you update various
campaigns, make sure to update them over all the
platforms you are using.
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Multiple Elements Provide Synergy

The more tools you integrate and synergize, the
more powerful the results. Hearing me lecture on this, a
marketing student of mine at Concordia University, Chris
Bowen, put together an excellent marketing plan using
multiple tools. He was a baseball player and was familiar
with the bat market. He chose to promote RawlingsTM
bats. His idea was to have a traveling van bring RawlingsTM
equipment to parks, retail locations, and schools. This gave
customers a chance to try out the equipment before
purchasing (sales promotion). He advertised the dates in
local newspapers and on radio stations (advertising). Dates
were also available on the RawlingsTM website
(Internet/interactive). Every event promoted tobacco
awareness and encouraged children not to use tobacco
(sales promotion/cause-related marketing). The van also
visited local schools with the message of tobacco
awareness amongst students (PR/publicity.) Local news
stations and community organizations were contacted and
encouraged to cover the events based on the tobacco-
awareness activities (PR/publicity).
Notice the consistency and synergy created by all
these elements. They build, promote, and support one
another. All of these promotional tools could be
implemented for much less than most commercial
television spots. The tools are targeted at likely users and
the return on investment will be excellent. Needless to say,
Chris received an “A” in my marketing class.
You do not have to use all the marketing
communications tools for every campaign. You should
always avoid paying for advertising if possible. Some tools
are not a good match for every situation. Typically the
more tools you are able to implement effectively, the more
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powerful your message becomes. Ultimately the goal is to

effectively communicate with customers in order to build
relationships.
Kendall
The greatest challenge for healthcare
administrators is federal and state economic
interventions. The government has the
responsibility to protect citizens from price
fixing. The economics of healthcare are really
skewed due to the inelasticity of demand. For
example, if a diabetic is insulin dependent, he needs the
medication regardless of the price. Vendors could, in an
open market society, control supply and charge whatever
they want.
The other layer of complication and regulation
comes from the insurance industry. Most of the United
States has a third-party insurance carrier that insulates
consumers from the true price of consumable goods. So
we have unlimited demand, and someone else paying the
bill. It is easy to understand why the government steps in
to help.
The retirement industry will rapidly have to
change their product line paradigms to serve the “Baby
Boom” generation. These independent and active adult
communities have money and are knowledgeable
consumers. We have to understand market positioning
and pricing strategies to deliver consumer-driven
products. If you are happy with the government as your
payor source, then keep your old business models. It will
be hard, but necessary for our industry to change and
communicate that change in this area.
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Key 5: Build Relationships
First Date
I did not kiss my wife on our first date because I
felt it was inappropriate. I did not really know her yet,
but I respected her as a person. Things worked out and
we got married two years later. Many times marketers
try to jump into a committed relationship without taking
the time to court and woo their prospect. Building
relationships is a process.
Like dating, some techniques for meeting people
and building relationships work better than others. If I
were targeting a Bible-believing conservative girl, I
would attend the church social instead of a strip club.
For our first date, I would take her flowers and candy. I
would wear my best cologne and nicest suit. I would not
likely talk about our wedding and children on the first
date. If all went well, I would try for a second date.
Hopefully, down the road, our relationship would grow
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into something lasting. If we did get married, I would

still need to do things to cultivate the relationship. I
would treat her differently as my wife, and there would
be new mutual expectations. If I ignored her or treated
her as if I did not know her, then she would be offended
and maybe even end the marriage. Though some people
are able to have a good relationship with former spouses
or girlfriends, there is typically a great deal of bitterness
when the relationship ends.
This is an imperfect analogy to the relationship
between companies and consumers, but there are some
striking parallels. You must provide something special to
get the attention of new customers, and be on your best
behavior. Once the customer is committed, he or she
should be treated like a valued partner, not a stranger.
You need to keep doing the little things to let the
customer know you care and are still committed. If you
should alienate a customer, it is worse than never having
been with him or her in the first place. Most people will
tell everyone they know about their bad experience and
why they no longer use your product. In the marketing
scenario, it is not better to have sold and lost than never
to have sold at all.
Kendall
Many of us in long-term care administration do a
great job relating to our resident families.
However, we do poorly sharing our knowledge in
the greater community. The Seven Keys to
Marketing Genius hits on a basic principle of
relationship building with our immediate care
givers. These aren’t necessarily the case-managers, or
social workers with the hospitals, but rather the
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churches, synagogues, community senior centers, malls,

social clubs, and high schools—and the list continues.
One activity director who worked for me was the
greatest at pulling our facility into the middle of every
community project available. We were involved in the 4-
H club, KIWANIS, Rotary, Cattleman’s Association,
Athletic Association, and the local Chamber of
Commerce. How did he get such a list of involved
agencies? It was through his resident interviewing
process. He simply asked the residents how they lived
their lives and what community activities they had been
involved in in the past. We had a waiting list for rooms
in both the skilled and assisted living units.
Mike
The key to any successful marketing program is in
the building of relationships. This is no different in the
long-term care industry. In fact, it is probably
more important than ever with limited budgets,
government funding cuts, and constant scrutiny
by state surveyors. Because of the lack of
resources available in most marketing
departments, they can not rely on high-dollar advertising
or high-tech marketing. Instead, building relationships in
the community is key, and can be the one tool that puts
you over the top. One-to-one marketing to physicians
and case managers will create a loyal customer as long
as you believe in what you are selling.
I remember marketing for a small start-up home
healthcare company in the mid 1990’s. We did not have
many resources and invested most up-front in the hiring
of staff. I felt lucky to be armed with business cards and
a brochure to try and grow this business. The one thing
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we did have was an affiliation with a nursing home and a

decent reputation for delivering care. I knew I needed to
get out and build some relationships if I had any chance
at all of succeeding. When talking to doctors, I had
something they wanted, a pool of patients for them to
see in the nursing home. My strategy was to find a
medical director who would give me patients for my
home healthcare company. In turn, I could offer them
the opportunity to pick up new patients in the facility.
Creating a “win-win strategy” for both providers. After
several cold calls to physicians, I found my doctor and
built a trusting relationship that was beneficial to both
sides. He became one of my top referring physicians and
eventually a personal friend.
Too Personal
Have you ever been on a date with someone who
tells you his or her whole life story with its deepest
darkest secrets, and wants to hear yours before you leave
the parking lot for the date? It gives you the creeps and
brings up your defenses instead of lowering them.
Sometimes too much information can be a bad
thing, and marketers cross the line. Getting mail from a
stranger who pretends to know my name and provides a
laundry list of past purchases invites fear not familiarity.
Privacy is a dearly held privilege in our country and
should be respected. Do not try to gain trust by using
artificial marketing data. Use information to invite
prospects into a relationship and earn their trust with
superior products and services.
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Multipliers
The process of dissatisfied customers disparaging
your reputation is called a negative multiplier. A
customer is not happy with your product, so he or she
tells two friends, and they tell two friends, and they tell
two friends, and so on. I am sure you can figure out that
the counterpart, a positive multiplier, is the goal. When
you truly satisfy your customer, he or she is likely not
only to remain a customer but to advise others to become
customers also.
Wes
Along the way I had the privilege of leading a
facility in the Minneapolis area. One of the things we
decided to do was to pinpoint the physical home
address on a map of those who responded to our
letters and phone calls with a certain colored
push pin. We changed it to a different color
when they chose to contract with us. It was an amazing
revelation to watch the power of positive word-of-mouth
and sales efforts being multiplied. You could watch our
marketing efforts march down certain streets in specific
prime areas and identify key similar areas where we
should focus our efforts. It was one of the most powerful
graphic representations I have encountered for both
focusing and celebrating our marketing efforts.
Kendall
We have all experienced the ‘nag’etive
family member! Constantly unhappy about the
care their mother or father is receiving. My
advice is to keep these people close to you. I
know that the gut feeling is to run the other direction. As
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a regional supervisor, I had one executive director who

could see the front parking lot from his window. One
time he jumped up and shut off his lights when he saw
the daughter entering the facility. I asked what was
going on! He explained the verbal abuse that he
experienced in the past with this family. You can
imagine that we had a heart-to-heart about family
management, and yes, we went out to meet the daughter.
On the other hand, I had another administrator
who had a similar view of the parking lot. She
proactively called the nursing station to get an update
and then went out to greet the family member. I bet you
can guess which facility was more successful in its
market.
Viral Marketing
Is this something you can catch from attending
business meetings? Here is a strategy in a need of a
name change. Viral marketing is the name for positive
multipliers at an extreme level. The Internet provides a
means for quickly spreading messages. When one person
sends information to another on the Internet, it is called
peer-to-peer communication. E-mail has provided
opportunities for messages to be widely broadcast peer-
to-peer in a short amount of time.
For example, MicrosoftTM provides free e-mail
accounts but attaches a short marketing message to the
bottom of every e-mail that is sent. BudweiserTM saw
great success with their “w’sup?” commercials. They
made the commercials available in a format that could
be e-mailed and it was shortly sent by millions to all of
their friends. Soon everyone I know was saying,
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“w’suuuup?” It just kept spreading and multiplying, like

a virus.
Fun with Funnels

A funnel is a good way to think of the marketing
process. The top is very broad and consists of using
mass marketing techniques. Mass marketing includes
items like mass mailings, national advertising,
billboards, and airing commercials during the Super
Bowl. The marketing message is sent to a broad
audience with little or no discretion. Mass marketing is
very expensive, difficult to evaluate, and has a low
return on investment. Mass marketing is a stab in the
dark, like trying to find needles in a haystack. The next
section of the funnel narrows the target audience into
market segments. The communications still appeal to a
large audience, but they are at least targeted to a specific
market segment by means of the chosen media.
Cat Fancy magazine, ESPNTM, and the OxygenTM
website each target a specific segment of the market: cat
lovers, sports enthusiasts, and women, respectively.
Next, we narrow the target audience further into niche or
specialty markets. Harley DavidsonTM, BarbieTM, and
MacintoshTM computers each appeal to a specialty area
of the market.
The bottom of the funnel is the customized or one-
to-one area of the funnel. The consumer being on a first-
name basis with the product or service provider often
characterizes these markets. Mike the mechanic, Bill the
barber, Doc Baker are all one-to-one relationships in
which the customer and service provider know each
other personally. Through the use of technology and
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mass customization, these relationships can be available

on a wide scale such as in the case of the “My Yahoo!”
page.
Kendall
Communication abilities via the Internet really are
just starting to have an impact on retirement
communities. After we installed high speed
Internet into my last community, a couple of the
residents signed up for SkypeTM. This service
allowed the residents to dial their grandchildren
through the Internet and physically view them over the
computer. I can’t tell you how much joy this provided.
The grandkids were in college four states away and
scheduled time to talk every week. We thought mail was
exciting in the past, but this takes the cake.
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ROI
ROI stands for return on investment. Every one of
the techniques in the funnel will gain customers. The
question is which technique will provide the greatest return
on investment. A Super Bowl ad is sure to create interest
and generate new customers, but at what price? The same
amount of money spent at the bottom and targeted
directly at ideal customers will produce a much greater
return on investment. Two benefits of targeting the
bottom of the funnel are the likelihood of a positive
response and the kinds of relationships that are
established. Relationships on the bottom of the funnel are
more committed and not easily broken. One-to-one
customers form the bedrock, the foundation, for any
successful product line. These people are not likely to
change to a competitor due to the mutual commitment
they feel between themselves and the brand.
Customers at the bottom of the funnel can and
should become your best marketing tool. They are positive
multipliers that spread the word to friends and family.
There are three levels of the one-to-one section: the
customer, the referent, and the advocate. The customer
will continue to buy the product and not switch to the
competition. The referent will continue to buy the product
and will tell others about the product when asked (give
referrals). The advocate will continue to purchase the
product, will actively promote the product, and will
convince others to buy it. The goal of every marketer is to
gain advocates for the product.
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To summarize, the top of the funnel is the most

expensive with the least return on investment and the
least amount of consumer loyalty, while the bottom of
the funnel is the least expensive with the greatest return
on investment and the greatest amount of consumer
loyalty. Getting consumers to the bottom is the goal.
Marketers should always be guiding their consumers to
the bottom of the funnel where the costs are less and the
relationships are stronger.
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Figure 5.1 The Marketing Funnel4
Take it from the Top

Why would anyone market to a mass audience at
the top of the funnel? There are three reasons marketers
come in from the top of the funnel: lack of education,
sloth, and lack of opportunity. The majority of people
marketing products do not know anything about the
marketing funnel. If you know anyone who needs to be a
more effective marketer, I urge you to advocate this book
to him or her. Millions of dollars are spent because that is
just the way things have been done in the past or that is
what companies see from their competitors. If you want to
lead the market, then innovate instead of imitating.
4
2001 marketingenious
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On the other hand, some people are too lazy to

work on building these types of relationships with
customers. Often it is easier to pay for a television
commercial or a billboard than to figure out how to
establish one-to-one relationships with thousands of target
customers.
The final reason is lack of opportunity. Sometimes
when marketing a new product, it is necessary to enter the
market from higher up in the funnel. If this is the case,
steer your customer relationships down the funnel as
quickly as possible. For example, if you must enter the
market by means of a national newspaper advertisement,
link the ad to a customizable website or some other tool
that allows the relationship to develop further and reduces
the need for future mass marketing efforts.
Word of Mouth
Many of my marketing students say they want to use
“word of mouth” to market their product. They have the
right idea—get people talking about and recommending
the product—but is it that simple? Can I just say “I’ll use
word of mouth,” and it magically starts to occur? I say to
my students, “That’s a great idea. How are you going to
create this phenomenon and what are people going to be
saying?” It takes planning and strategy to get the ball
rolling. Marketers have to provide the something for people
to talk about. Though creating advocates takes hard work
and commitment, if you follow the seven keys outlined in
this book you should have no trouble gaining them for
your product. You will have a product with a distinct
advantage (Key 1), and you will be clearly communicating
that message (Key 5).
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Daehn’s Marketing Question

For any marketing decision, determine whether it
is the best use of funds by asking, “Will it gain the
maximum exposure to the target audience that builds
relationships while avoiding wasted expense?” If you
are spending your own money, you do not want to waste
marketing dollars getting your message to the wrong
people. If you are spending someone else’s money, you
have the responsibility to use it to create lasting,
protected relationships with product advocates. To
achieve maximum success during the marketing process,
continue to ask yourself the “Daehn question.”
Mike
I attended a healthcare conference in which a lot
of vendors showcased their products and services. We
decided to set up a booth to market our facilities
in Missouri. Our real purpose was to market to
the people who attended the conference for
employment opportunities. We left with several
names just by networking and building
relationships. Not only did we save on the cost of
running expensive advertisements, but we built
relationships with prospective customers that will go a
long way.
That’s a Keeper
It is far less expensive to keep a customer than to
get a new one. The best way to keep customers is to
provide good customer service. It also is the best way to
increase the return on investment. Many companies
make the mistake of throwing dollars at the acquisition
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of new customers while ignoring current customers. A

few dollars spent on customer retention through
improved customer service, customized
communications, and customer recognition programs
will pay higher dividends than another mass marketing
campaign to gain new ones.
Mike
Who are your customers in a nursing home? Are
they your families, residents, clergy, staff, or physicians,
or perhaps your vendors? Actually, the correct
answer is that anyone who comes in contact with
your facility is considered your customer. There
is a small group that is often ignored but can be a
powerful marketing tool in any organization. The
families of your residents always have something
positive or negative to say about the care of their mom
or dad. If you do a good job developing a relationship in
the beginning, you can gain a testimonial that can be a
great marketing tool. I have often taken these and put
together a nice binder to give out to prospective clients.
The hidden marketing tool that most facilities
ignore is their staff. Prepare and train your staff and
teach them good customer service skills. This alone can
sell your facility. They will go out in the community and
sing your praises if they feel they are treated fairly. But
beware, because of their vast network, they can also be a
force to be reckoned with if they feel the work
environment is not good. As mentioned earlier, the
investment in customer service can cost in the beginning
but pays off big in the future.
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Wireless and Clueless

Companies selling wireless phone service spend
millions to attain new customers. Besides the
advertising, they entice new prospects with free or
discounted phones. These phones are sold below cost, so
the only way the company can break even is for the
purchaser to remain a long-term customer. But what
happens when the contract expires? If the current
customer wants to get a new phone, they have to change
companies or pay full price for a new one. There are no
incentives to remain a customer or to renew the contract.
Companies are more focused on spending money to get
new clients than to keep the ones they have.
How many companies spend millions on slick
television commercials that drive people into stores?
Once in the store, disaffected, underpaid, and under-
trained employees treat the customer like a second-class
citizen, while the advertised product is not what the
commercial claims or is unavailable. Marketers should
spend less on wasteful mass marketing campaigns and
more on building relationships with customers at the
point of sale.
DIRECTV TM took this to heart and made some
changes. They took some of their marketing dollars and
used them to enhance their customer service process.
They improved their main line of personal
communication between themselves and their customers:
the call center. DIRECTV TM gave incentives to their call
center workers by offering more training, benefits, and
career advancement opportunities. The result was an
increase in client retention and the amount of money
spent on subscriptions by callers. They also won
industry awards for customer service and retention.
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Quid Pro Quo

Quid pro quo is a Latin term meaning “this for
that.” In other words, you give me this and I will give
you that; one hand washes the other. This is not wrong in
itself, but it often lacks the intangibles involved in most
relationships. Building relationships with customers
comes from a transformational versus a transactional
perspective. Instead of each party getting what it wants
and leaving, each is concerned with benefiting its
counterpart. These interactions are often called win-win
scenarios where each side benefits. Marketers need to
treat their customers with respect and try to benefit them,
not just take their money, if they are going to build
committed, protected relationships.
Wes
Because healthcare is a roster of niche markets, I
have found a ready willingness among service providers,
to refer clients when they are unable to meet the
resident’s needs, or if someone else would be a
better fit. Handled well, the referral will be
reciprocated by the other business when they
encounter a similar situation. A facility that
works for the “best fit” for the resident will be
appreciated and will get other family referrals in the
future. This generous tactic is obviously a long-term
strategy investment, but these types of choices produce
the solid reputation that will pay dividends.
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Piece of the Pie

To approach life with the view there is plenty to go
around is called the abundance mentality. This view holds
that there is room in this world for everyone to prosper, and
it is best to form cooperative, mutually beneficial
relationships with others. Those who do not comprehend or
believe in the benefits of interdependence often have a
scarcity mentality. They think life is like a pie with only so
much to go around. If other people are prospering, there may
not be enough for them. They get upset at the success of
others because they think it means there is less chance for
their own success. Lasting relationships with customers
requires an abundance mentality that strives for the best
situation for the customer and the brand. Customers should
be viewed as lifetime partners not short-term sources of
income. There is plenty of pie for everyone to share.
Plenty more where this came from!
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Wes
Can a facility or community be successful if it
doesn’t own or control every aspect of its operation? I
used to think that way, but recently I realized
that I cannot be the expert on everything. There
is room for subcontractors, especially if the
subcontractor also brings along their positive
referral reputation, marketing expertise, and
advertising placement, cost structure, relationships, and
joint copy editing. Marketing a facility in addition to
direct sales to residents and their families is also a
business-to-business opportunity. Those contacts are
with people who also will have needs, and will broaden
your network as they prosper by providing various
services to your facility.
Kendall
I can’t say enough about personal relationships. I
ran into a family member of a resident who I
took care of more than 11 years ago. They were
glad to see me and wanted a reference to a
facility for another family member. Strong
caring relationships last a lifetime!
Napster
For decades the record industry held a
technological chokehold on the distribution of music
content. Because they had exclusive control, record
executives decided to charge large sums of money for
their product. While perfectly legal, this is not a good
way to build relationships with consumers. Ordinary
citizens had neither the technology to create their own
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access to popular music nor the organizational ability to

defy the practices of the record companies.
With the World Wide Web that is no longer the
case. Napster devised a way for individuals to share
musical content from peer to peer over the Internet. Not
only has new technology freed access to musical
content, but it has also provided a way for formerly
disconnected people to communicate, share and lobby
for change of music industry practices. The sharing of
copyrighted musical content is illegal, but most
consumers, feeling like they have been fleeced by the
record companies for years, justify their actions. The
record companies charged exorbitant rates for musical
content through monopolistic practices for decades and
thus angered their customers. Now these companies are
scrambling to convince customers they should pay for
their music again. Good luck!
Similar industries would be wise to learn this
lesson. Doctors and lawyers have used the same
distribution methods for generations. By limiting access
to information, these disciplines have been able to
charge high fees for their expert advice. Today
consumers can find much of this information on the
Internet for free or at a fraction of the cost.
I injured my foot and there was a great deal of
swelling. I called my doctor’s office several times to
have it looked at by a professional. While I was waiting
for someone to call me back from the office, I jumped on
the Internet website WebMD.com TM. In a few minutes I
had diagnosed the problem and was treating the injury.
When the nurse called me back a few hours later and I
described the symptoms, she began to give me treatment
advice. As she was telling me to elevate it and keep ice
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on it, etc., I started finishing her sentences for her. She

asked, “How do you know what I am going to say?” I
told her that I had already looked up the problem on the
Internet and was treating myself.
I am not recommending forgoing medical
treatment for self-diagnosis, but it proves the point that
we are not as reliant on these industries for information
as we used to be. Doctors, lawyers, and other purveyors
of information better adjust their practices and become
more consumer friendly, or they may wake up to find
themselves “Napster-ized” one day.
The Sherwin Marketing Matrix

My marketing professor, Nick Sherwin, developed
a process for understanding relationship building with
customers. Sherwin classifies marketing tools into
above-the-line, below-the-line, front-end, and back-end.
Above-the-line tools like advertising and public
relations/publicity are used before a relationship has
been established to create image and awareness. Below-
the-line tools such as sales promotion, personal selling,
and direct marketing are used after some type of
relationship has already been established. The front-end
tools should be used at the beginning of the strategy and
transition to the back-end tools. Many companies use
these tools out of order or inappropriately.
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Figure 5.3: The Sherwin

Marketing Matrix
Keep Your Word

As discussed earlier, brands are promises. Every
marketing activity is communicating a promise the brand
is making. Companies need to live up to and honor their
promises if they want to make and keep relationships
with customers.
Humans Crave Relationship

What is the greatest punishment inflicted upon
hardened criminals? Solitary confinement! The worst
thing that can be done to a person is to remove him or
her from interaction with other people.
The reason is that humans were created for
relationships. I have had people tell me that in my
business decisions I take things too personally. I retort
that they do not take their business personally enough.
Business transpires between individuals and groups of
human beings. Trying to depersonalize the process
causes problems; it does not make things easier. People
desire to have a relationship with your brand and will
feel betrayed if you do not treat them with the dignity
and respect required of human beings. Marketing is
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about the human communication process. To be

successful you must treat people like people and not
machines.
Wes
Healthcare and senior housing is a relationship-
based business. Often our staff becomes surrogate sons
and daughters or grandchildren to our residents.
This is because they see them more than their
own family members and share the small events
of the day with them.
When marketing to a senior-age resident group,
three to seven extensive contacts are not an unusual
occurrence. It takes that long for the relationship to be
set up and confirmed. Then business can be conducted.
In an era of high turnover, stability of staff in the facility
will pay huge dividends. A wait list-agreement candidate
may be a prospect for two to three years. They will still
feel very reassured when the same person reunites with
them when they take the next step of considering a move
into your community.
Kendall
We are in a people-to-people business.
Relationships aren’t built overnight and neither are
facilities. Create a plan, even if your marketing
plan is only in a spiral notebook or three-ring
binder. Get something on paper and discuss it
with all employees. Why is this important? You
will create a written contract with yourself. If it is
written, it is important. The saying is true, “what we
measure is what we accomplish.”
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I assumed responsibility for a rural facility that

kept all of its information in spiral notebooks. The
administrator was retiring after 27 years of service. Can
you imagine that! This facility was at 100 percent
occupancy and carried a waiting list. I thought to myself,
“We are dead in the water” when I saw the binders.
However, his notes were awesome! He had outlined
every family and how they paid, who they were related
to, when the family members visited, when they had
birthdays and anniversaries, and who had died! When
was the last time you had that information on your
families? This was why he was the number one person
the community looked toward when someone needed a
nursing home.
Manipulation
If you read this book, I will give you a million
dollars! Not really, but I did get your attention. How do
you feel right now? Cheated? Humiliated? Indifferent?
Welcome to the world of manipulation. It amazes me
how much people hate to be manipulated, yet, given the
opportunity, think it will work well on others. I had a
student in class give a presentation of how he was going
to tweak his advertising copy to essentially trick people
into buying his product. I asked the class what they
thought of his ideas and they thought it was a great idea.
I then asked how many people would like to be tricked
and would they continue to do business with a company
like this? They changed their opinion quickly. It is
astounding how quickly people who would not like these
techniques used on them adopt these manipulative
strategies when given the opportunity to do it to
someone else.
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A sound marketing strategy does not need nor

condone manipulation. To have long-term, lasting
success and strong relationships with customers, honesty
is the best policy. To vary on the Golden Rule: Market to
others as you would have them market to you.
Personal Selling Revisited

Personal selling is crucial to relationship
development because most of the face-to-face interaction
between companies and their customers takes place
during this process. I reiterate my admonition that
retailers would be wise to run a few less mass-marketed
advertisements and use the money to better train and
compensate their employees. People may come into the
store because of the advertising, but will only return if
they have a good experience and positive interaction
with employees. Otherwise there is little motivation not
to shop at a competitor particularly if they have a better
commercial.
Mike
I know this isn’t a book on selling. But I must
mention the fact that the difference between selling and
marketing is simple. Marketing means to
promote your product by two types: informal
promotion (word of mouth) or formal promotion
(advertising). Selling can be defined as educating
and motivating a qualified customer to purchase
your product. Why do I mention this here? Companies
spend millions of dollars promoting their product only to
fall short when it comes to selling. Personal selling
requires developing the skills for listening and asking
questions.
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Have you ever been approached by a salesperson

who goes directly into their presentation without ever
asking you what your needs are? It happens all the time.
Great marketing demands great selling. Their successes
are tied together. Promotion is essential to providing
customers to sell to, and more customers mean more
promotions.
Go Blues!
The St. Louis Blues are the greatest hockey team
ever. Sure, at the time of writing this they have not yet
won a Stanley Cup championship, but they are still the
best. I am speaking as a fan of the team. I am truly an
advocate for the St. Louis Blues because I have been
cultivating a relationship with them since before I was
born (my mother went to Blues games while she was
pregnant with me). We all know people who are crazy
about their favorite team. This is the kind of relationship
you want to have with customers. Ken Blanchard and
Sheldon Bowles expound on this theme in their book
Raving FansTM, which is about providing revolutionary
customer service. Successful marketers create raving fans
for their products.
Protect Your Investment
In today’s competitive marketplace, the best way
to ensure your investment is to establish relationships
with customers. By building and cultivating these
connections, you establish a protected relationship.
People will continue to do business with you because
they know and trust you. Make yourself invaluable to
your customers, and they will likely be yours for life.
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Key 6: Gain Feedback
Measuring Up
Gaining feedback is what tells you whether you
are on the right path with your customers. You have
already done the hard work of developing a roadmap for
success in your marketing plan. Feedback will tell you
whether you are on the right track or veering off course.
A jumbo jet leaving New York for Rome sets an

exact course to follow during the flight. If the trajectory
from the point of origin is off by mere inches, the plane
will land in another city or, worse yet, in the ocean. During
the flight pilots are constantly checking their instruments
and gaining feedback to determine if they are on target.
They continually make adjustments to their flight path
based on the information received from their instruments.
Intelligent marketers use various methods to gain feedback
on their efforts to keep them on course.
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Accountability
Feedback determines whether the marketing
efforts are worthwhile. I have spoken at length about the
importance of determining return on investment.
Measurement provides a way to evaluate the value of
marketing campaigns. From the results, you are
equipped to make decisions about what is working and
what is inefficient. If an advertising agency is unable to
show results proving the success of its activity, how do
you know that money is not better spent elsewhere?
Feedback must provide accountability and justification
for the use of various marketing communications.
Wes
I once worked for a company that hired an
advertising agency to promote the facility, raise awareness,
and help fill empty beds and apartments. The
company presented a $100,000 campaign and then
requested a similar expenditure after a four-month
experience. When confronted with mediocre
results from the initial campaign, they sold the
company on the need to invest enough time and money to
achieve results. Upon reaching the second cycle with
similar mediocre results, and being confronted with the
pattern, they immediately became defensive and stated
“their job was to generate traffic and not to produce sales.”
To me this advertising company wanted no accountability
for the large expenditures made upon their
recommendations and the creative efforts used to promote
the facility. Their contract was later dropped by the
organization when it was determined that the agency’s goal
was to generate large fees rather than achieve sales for the
organization.
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Mike
Many employees in companies suffer from the
same thing that the companies go through. People and
customers contantly give them feedback, yet they
don’t take the time to listen and make adjustments.
How often do our friends and relatives give us
feedback about our life (some more than others)
yet we fail to heed the warnings and make
corrections.
You go down the same path expecting something
different to happen. This is called a rut and, like you, many
facilities fall into the same trap. They continue to market
the same way, provide the same service, and wonder why
the census stays the same. The community and customers
responded to a survey describing their needs, but the
facility went another way.
Sound familiar? You bet it does. Listening to the
feedback of others is the key to keeping your marketing
fresh and vibrant. Always plan for change and know that
things will change. This is essential in the healthcare field.
Kendall
Fortunately, or unfortunately as the case may be,
the negative light is pointed right at nursing homes. The
media loves a good story that is centered on
controversy. Lawyers are just waiting for cases
that they can take to trial and make a name for
themselves. So how do you prepare for such an
event? Simple: know every bit of public information
that is out there. Create a list of key public issues that
everyone in the organization will know how to answer.
Yes, I said everyone— down to the frontline staff.
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I cringe when I hear housekeeping staff telling a

family member, “Yes nursing is always short-staffed. I
don’t know how they do it!” Co-author Mike Graham is
the best marketing director when it comes to customer
service training for frontline staff. Staff must know how
to approach family members and residents in order to
resolve issues. Rural homes seem to do this the best. It is
their community or family members that they’re taking
care of. It doesn’t matter if it is their job or not.
Take time to create a response page for all staff in
case of an emergency. I have lived through four fires,
two tornados, three power outages, two floods, and
many virus outbreaks. I really don’t think I’m a jinx! If
you are in the business of healthcare, you too will run
into natural disasters and epidemic outbreaks. A well-
thought-out communication plan will provide you with a
road map to responding to your market issues.
Benchmarks
When defining the purpose of the company, goals
are set and certain standards are to be achieved. These
goals or benchmarks provide a means for determining if
the marketing process is on target. All feedback should
be measured against the established benchmarks of the
company.
Wes
Typical benchmarks for senior housing
markets are:
• Facility size is based on a 5 percent

age-eligible household within a 10-
mile radius of the proposed facility.
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• Facility price point based on median home

value of the target group, plus no more than 20
percent.
• Prospective resident asset level should be at
least double the facility endowment or condo
price.
• Prospective resident’s income should equate to
at least two times the monthly service fee in
order to comfortably handle a cumulative 10
percent increase for 10 years.
• Recognize that the average senior housing
prospective resident is an 82- to 84-year-old
female. Positioning a facility for couples in
their 70’s is noteworthy but will need to be
special to be successful.
• It takes from seven to 10 contacts to get a
response from a prospect,
• It takes 100 prospects to get a visit,
• It takes 10 visits to get a contract,
• Out of three contracts, perhaps one or two will
cancel before they move into the facility, or
may need to enter the health center bed instead
of the apartment unit.
• The average, convinced, happy resident may
bring five to eight friends as pre-qualified
prospective residents, of which one or two also
may move into the facility.
Kendall
Facilities today have benchmarks set by
federal and state regulatory agencies, so you
don’t have to look far to find out if your
community measures up. Take time to know the
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numbers and baselines available to the consumer on a

monthly or weekly basis. It is easier these days with
automated systems to keep up with resident care
information. The key is to make sure your data is entered
correctly. Then know what it has to say! Take care to
protect yourself with resident knowledge and proper
medical intervention.
Surveys
Surveys are a good way to gain feedback from
current and potential customers. Most people wish they
could tell manufacturers what they want and how to
make it, but are never given the opportunity. When
constructing a survey, make sure it is easy to use and can
be completed with minimal effort on the part of the
participant. At the same time, make sure the survey will
provide accurate, easily quantifiable results.
• Start easy - Ask for the easy information first.
Start with name, address, and telephone number to
get people warmed up, and then move on to the
tough questions. I saw a church survey that had
formatted the layout of their survey in such a way
that the question “How much money do you
make?” was centered at the top of the first page.
While I was excited to see the church using a
survey to improve the organization, I was
concerned to see such a sensitive question
jumping off the page at first glance. This design
can cause respondents to not begin filling in the
questionnaire before they even get started.
• Avoid response setting - Response setting is the
psychological pattern of grouping answers in a
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similar pattern. For example, if you ask ten

questions that all regard the performance of the
company with one being “disagree strongly” and
10 being “agree strongly”, some respondents will
just go down the list and check all high or low
responses without reading the questions. To avoid
this occurrence, alter the questions. For example,
make question one “The company does a good
job” and the second question “The company is not
doing a good job.” If they score a “10” on the first
question and you are getting honest responses,
you should get a “one” on the second question.
There should be at least one question where you
reverse the positive and negative to determine
whether you are getting honest answers or the
respondent is giving response-setting answers.
• Use a quantifier - Quantifier is a big word for
using numbers. To gain results that are easy to
use, implement a quantifier into the responses. If
you receive one 1,000 surveys, you will want to
be able to plot the results such as a 90 percent
customer satisfaction rating and a 50 percent
approval rating of prices. If the responses are all
fill-in-the-blank, there is no way to put a number
on the amount of customer satisfaction without it
being a subjective, arbitrary number. By using
numbers in the responses, you can quantify the
results and make fancy charts and graphs. Internet
surveys and Scantrons also make it easy to get the
data into a usable format quickly.
• Avoid limited responses - Give the respondents
room to vary their opinions. If the customers feel
the service was above average they might give a
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70 percent, but they need the option to do so. If

the scale is from one to three, then they will
probably give a two, which is 50 percent. If the
scale is one to 10 they will probably give a seven,
which is 70 percent. Using a scale of one to 10 is
better than using a scale of one to three because it
provides more options and will gain more accurate
results.
• Allow for customization - Give respondents a
place to write their comments and give feedback.
While this is more difficult to quantify, it can
provide information you never thought to ask or
explain why some scores are high or low.
• Keep it short - Most people do not enjoy filling
out surveys. Your first response motivator is to
keep the survey short and easy to complete.
• Enhance the relationship - Use the survey to
provide useful information to the clients and
strengthen the relationship. Thank them for
partnering with you. Getting people involved and
interested in the company enhances commitment.
• Gain marketing information - Ask if there are
any projects you can help with and/or if they
know anyone else who could benefit from your
product.
• Provide a response motivator - How do you get
people to fill out a survey? Most people, unless
highly motivated by an extremely positive or
negative experience, will not take the time to fill
out and/or return a survey. A response motivator
must be attached to surveys to get a high
percentage of them returned. Companies must
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provide some product or service in exchange for a

completed survey.
When I began doing marketing consulting for a
graphic designer, the first thing I suggested was creating
a survey. He already had a group of past and present
customers, and a survey was a good way to measure the
depth of the relationship and determine customer
satisfaction. Some customers did business on a regular
basis, while others stopped talking to the designer after
their first project. We sent a letter that announced
celebrating five years in business and thanked the
customer for being a client. The letter also said we
wanted to hear from them so that we could better meet
their needs in the future. The graphic designer created
five-year anniversary T-shirts and delivered them to his
customers. Because he had only a few customers, and
most of them were local, he delivered the surveys and T-
shirts in person. When the survey process is done
correctly, it greatly enhances the connection between the
customer and the company (Key 5), especially when the
customer sees his or her information put into action (Key
7).
This is a proactive approach that asks for input
instead of waiting for customers to call and complain or
give compliments. The survey asked what we were
doing well and what we needed to work on improving. It
also asked the customers to rate their experience with the
designer. Each question had a scale from one to 10 with
a space to write comments for each question. There was
also additional space provided for open feedback from
the customer. We asked if the customer had any projects
that we could assist with in the future. Finally, we asked
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if they knew anyone that could benefit from our services.

By using this last question to ask for a referral we were
able to gauge the strength of our relationship with the
client and gain new business. The survey was a way to
strengthen our relationship with the customers (Key 5),
let them know we recognized them, cared about their
business, and were taking steps to improve our services
to them (Key 7).
Wes
Surveys are great tools to raise initial interest in a
new facility and to position the new facility in the right
market. Operational surveys are good to
evaluate services like dietary or housekeeping
activities and the ease of dealing with the front
office staff as well as general satisfaction with
the employees. Residents love being asked their
opinions, but be sure to let them know the summary
results and what you are going to do with the data to
improve or validate services.
Quality indicator satisfaction surveys are
becoming more essential benchmarks for healthcare
services. As they become a more universal tool used by
Medicare and the Joint Commission to help rank
facilities, along with inspection surveys, the prospective
residents and their families will use them to choose a
facility to patronize.
Kendall
I have found that private cohort groups,
volunteers and then larger Town Hall meetings
work well with retirement communities. The
more focused your question is, the more
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focused your group of respondents need to be. I also

recommend that the Town Hall meetings be centered on
an educational topic. In this way you are bringing
something positive to the general community instead of
providing a gripe session for everyone to air out their
dirty laundry.
Web Overload
We have already discussed the advantages of
using the Internet for its ability to track the activity of
viewers. The problem is that you can gather so much
information that it is difficult to determine what is
relevant and what to do with the information. Several
software programs are available that allow you to get
these statistics and put them into a usable format for
analysis and presentation. I also recommend hiring a
service to advise your company on useful application of
the information. Another option is to install an Internet
marketing department in the organization. The bottom
line is that the Internet is a vital component in the
modern marketing communications process, and the
smart companies will devote resources to leveraging its
use.
Kendall
I haven’t experienced web overload in our business
yet. In fact, many large privately held facilities
aren’t even on the web. If you are one of these
operators, or work for one of these operators,
get them on the web. The facility will reap a
great harvest from families, especially if the families live
out of town and would enjoy seeing activities in your
facility.
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Personal Selling One More Time

This is the third time I implore you to value
employees. Front-line salespeople and customer service
representatives are the face of the company. This
interaction is reciprocal. Not only does the salesperson
communicate the marketing message of the company to
the customer, but customers also directly relate their
responses to the company representative.
I have had hundreds of interactions with
customers in my years as a salesman. Customers would
channel their complaints and compliments directly to
me. I would often urge them to complete a response card
and submit it to headquarters, particularly if I agreed
with their comments. My fellow salespeople and I would
sadly, yet honestly, explain that the company did not
listen to us, but they might listen to them if they took the
time to fill out a response card.
Smart marketers use this valuable, timely, and
already paid-for resource for gathering information. This
is a win-win-win for the company and a win-win
situation for the customer and salesperson. The company
wins by gathering accurate data. The salespeople win
because they feel valued and as if they are making a
contribution. The company wins again because the
salespeople are more committed to a company that cares
and listens to what they have to say. The customers win
because they are being heard and are getting the changes
they want. The company wins a third time because the
customers are happier and more committed to a
continued relationship. Based on this reasoning, why
would any company not invest in gathering information
from its salespeople? Sadly, most companies do not
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know any better. Lucky for you, you have read this book
and can beat the socks off your competition.
I must admit I have ulterior motives for
emphasizing the role of salespeople in the marketing
process. The first reason is that I have spent so many
years being ignored as a salesperson that I desire to
reform the industry and make personal selling an
honorable and enjoyable profession. At the same time, I
recognize there is a rational basis for taking this
approach. The second reason is that I am tired of
receiving sub-par service. I have worked very hard to be
friendly and outgoing, and to meet the needs of my
customers, and I expect the same when I go shopping.
Once I had a customer remark to me that he
appreciated my service and my knowledge about the
products in my store. While I enjoyed the compliment, I
did not feel as if I had done anything extraordinary
besides talk with the man and answer his questions. He
said he was in the process of improving the customer
service for an Internet software company that he was
helping. I recommended him the names of some
excellent books on customer service. He laughed and
said that stuff was too advanced; these people just
needed to learn some manners and how to be polite.
Who is to blame for poor customer service?
Obviously, the salesperson needs to take responsibility
for his or her actions and many salespeople do not care.
But companies are also to blame for not spending time
or resources on a vital component of the marketing
process. They blow millions on television commercials
in hopes that customers will visit their stores, yet pay
their salespeople only minimum wage. Any customers
who do shop based on the commercials will certainly be
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turned off by poor service. It is a strange paradox that in

an age when service is a buzzword and everyone in
business is talking about great customer service, good
customer service is such a rarity.
Wes
Staff training on customer services issues, along
with open communication between management,
supervisors, and staff, and the setting of realistic
facility goals that are rewarded, can all
contribute to a facility environment where the
staff and even the residents have a vested
interest in the success of the community.
I once had a facility that was part of a large
corporation that conducted a “quality of work life”
survey to gauge the effectiveness of its facilities and
perhaps set some benchmarks for why some facilities
performed better than others. I had arrived at the facility
about four months after the survey was taken, but before
the results were known. In the first months of my arrival,
I found that the previous administrator had three
horrendous operational philosophies that he acted out:
¾ A lie is as good as the truth as long as you get
someone to believe you,
¾ Keep changing your mind; it will keep everyone
off balance and you firmly in control, and
¾ Never write anything down so it can’t be held
against you.
It was no wonder employee and resident morale was
at the corporate bottom rung with no trust and no
resident referrals and high employee turnover with no
real stability. I also “discovered” that there were over
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forty open lawsuits against the facility. A year later, after

much work on building trust, pride of accomplishment in
themselves and the facility, and being honest with the
residents and staff, the facility was in the top third of the
corporation and residents were once again referring their
friends to the facility.
One way this was accomplished was to emphasize
that each time a contact was made with residents, family,
friends, and even vendors, it should become a magic
moment—one that could become a savored memory of
being treated special. If appropriate a follow-up call
could take a savored memory and multiply it into a
“broadcast memory.” The first deals with an issue or
question well and leaves the person with a sense of an
emotional well-being. The second broadcast memory is
such an experience that they must tell someone about it.
Feedback Cards
For physical locations you should provide cards
for your customers to be able to communicate with you.
Allow them to leave the card with a salesperson or to
mail it in to the company at their leisure. Make sure you
put a stamp on the card to encourage their sending it
back. To avoid postage expenses, provide a web address
where customers can leave feedback. This will drive
more business traffic to your web site and value to your
customer. A contact/feedback section should also be a
part of any web-based business.
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Wes
This time-proven method continues to be widely
used to help develop senior housing communities. The
ongoing interest is every bit as important as the
data gathered at the event, as well as the door
prizes and discounts offered to prospective
clients should they tell a purchasing friend about
the community. Some communities even offer
the same discount prize to the friend as well.
Warrantees
Warrantee cards have been used for a long time.
Besides adding value to the product for customers,
warrantees are a tremendous way for marketers to gather
data about customers. Be careful not to make the response
card too long, or few customers will take the time to return
it.
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Trading for Data

People are willing to provide marketing
information in exchange for certain benefits. My
marketing professor was fond of creating events or
concerts that were almost free. The only charge for
admission was filling out a response card. For example,
he would stage a jazz music festival and get the names
and addresses from the attendees. The response cards
would ask if they were interested in receiving jazz music
information and offers from vendors. After the event he
had created a list of prequalified marketing prospects.
Another way to trade for data is to have contests and
giveaways that reward respondents with gifts or the
chance to win a large prize.
Many early Internet sites gave away free products
or information in exchange for registering with the site.
Be careful not to give away the store or to create a
climate where there is no possibility for paying for the
expense of gathering the data. Many early Internet
companies went bankrupt before they could take
advantage of all the information they had gathered.
Test Marketing
Try your product in a test market before you fully
develop it. The results may help you determine whether
you should double production or scrap the project
altogether. If you are thinking of carrying a new product
line, try it out in some test cases first. One retail store I
worked with tried a few bags from a company to see
how they would sell. The product was very popular and
we sold all the test models. The company worked out a
deal and carried a large selection of the product from the
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vendor. In another case we carried another bag style that

few if any people bought. We sent the rest of the test
models back and said “No thanks.” If you have the
ability to test market, take advantage of the opportunity.
Market Development Groups
A few companies have seen success with
developing a test-marketing group among prospective
customers. Mercedes selected a group and asked them
questions about what type of sport utility vehicle they
would like to see in the future. To thank the participants
they distributed hats, t-shirts, and key chains, and kept
them abreast of the development. Once the new
automobile became available, most of the participants
were dying to buy one. The automaker had developed a
strong relationship with this group (Key 5) and was
creating the design based on the feedback gathered (Keys
6 & 7).
Confidentiality
Unless your company is in the business of selling
information, do not sell or share your information with
other entities. If you want to destroy a relationship in a
hurry, give your prospect’s name to others. This is
tantamount to adultery in the customer-to-company
relationship. Promise confidentiality and keep your
word. If you do intend to share the information, be sure
you have the permission of the customer first.
215
Focus Groups
I had the privilege of attending a focus group for
an insurance company. Rows of comfortable seats and a
hot Chinese food buffet awaited the heads of the
company paying for the research, but not the participants
in the focus group. The participants in the study were
eating hot dogs and potato chips. I was perched with
company officials behind a large two-way mirror and
enjoyed a hearty meal while watching the focus group
participants gush about what a great idea the insurance
product was.
Were these accurate responses? Would these
people really buy the product if they were not sitting in a
focus group? In the end the CEO and founder summed
up the results, “Well, I do not think we really learned
anything we did not know, but it was an interesting thing
to watch.” I have to agree with his assessment. It was
hard to tell if any of those people would actually buy the
product in real life based on the advertising material they
were given to evaluate, but it was surely fun to watch,
and our food was excellent. I am glad they were footing
the large bill for the exercise and that I got to come
along for the ride.
Mike
I was doing some work with a personal coaching
company and they decided to fly my wife and me
to Salt Lake City for a focus group. They asked
us several questions about the program we were
involved with and carefully collected the data
from the group. I never believed much in the
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Senior Care 2.0
success of focus groups, so I participated with some

skepticism. At the end, we were taken to the boardroom
to meet with the president of the company.
They listened to our answers, and before we left,
they had implemented a new program based upon the
feedback we gave them. The success of this focus group
was that immediate action was taken. I think so many
times people fail to participate because they know
nothing will change. Within two weeks, the new
program was initiated and is currently going strong.
That’s taking the feedback and doing something with it.
That’s called successful marketing.
Kendall
Target focus groups have provided me with
significant emerging marketing strategies, but
you must choose wisely. Don’t just pick anyone
off the street. For example, if you are caring for
dementia residents, then put together a focus
group of family members, a local dementia professional,
someone from the ministry, and any other volunteer who
works with your residents.
Research Pitfalls
Two dangers in the research process are over-
researching and overemphasizing results. There is
tremendous value in gaining feedback, but some
companies are paralyzed by overanalyzing and therefore
do not act. They continue to gather information, but are
not sure what the data means or what to do with the data.
Some opportunities will be missed if they are not
grasped immediately. There comes a point in time when
marketers must act on the best information available and
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use their judgment. There is always risk involved in

making business decisions. That is why not everyone is
in business, and those who take the risk are rewarded
with success or failure. Making some kind of move leads
to a better understanding of the situation.
For example, if I am not sure how to price my
hockey sticks, I would do some initial research to
determine the price. The results range from $50 to $60
dollars. Eventually, I am going to have to go with my
own decision. If I price the stick at $55 and sell very
few, I will adjust the price down to $50; but if I never
enter the market, I am not going to get the additional
information I need to adjust to changes (Key 7).
The second danger is overemphasizing research.
People behave differently when being observed. When
respondents are asked questions on surveys, in focus
groups, or interviews, they tend to give favorable
responses. There is a big difference between what
customers say they will buy on a survey and what they
actually buy when strolling down the supermarket aisle.
Market researchers have named the phenomenon
Heisenberg’s Principle of Uncertainty after the great
atomic physicist.
Do your homework; get as much information as
possible and then act. Once you have implemented a
promotion, gain more feedback and adjust to changes
(Key 7). You can never do enough research to know that
anything will work without a doubt. As in every other
facet of life, marketing requires an element of faith.
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Wes
I agree with the term research paralysis. I’ve told
staff for years, that like a sailboat, it’s easier to tack and
make a course correction if you are at least
moving in some direction. If you are frozen,
waiting to make a decision until all the facts are
in, little will be accomplished and quite likely,
the window of opportunity will close before
action is taken.
Faith Movement
Because I just used the faith term and this is a
down-to-earth treatise on the science of marketing, allow
me to elaborate. First of all, every decision we make is
based on an element of faith. Nothing in life is certain;
even science tells us that. I cannot prove beyond a doubt
that you are reading this book right now, and neither can
you. There are two kinds of faith: reasonable and
unreasonable.
Reasonable faith is based on a certain amount of
evidence and information while unreasonable faith is
based on little or no information. Unreasonable faith also
is the kind of faith that goes against the evidence. Here is
an example to illustrate the point. Let us say I am going
to drive from Los Angeles to Las Vegas in my car. I
have a large gas tank and should be able to make the trip
on half a tank. If I have not filled my tank in a week and
my fuel gauge says empty and the little yellow light is
on but I have faith I can make it to Las Vegas, then I am
acting on an unreasonable faith. If on the other hand, I
go to the gas station, put the nozzle in the tank, watch
the numbers roll on the pump, pay my $37 for gas, get in
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the car and see the needle go up to full and the yellow
light go off, then I am acting on a reasonable faith that I
can make it to Las Vegas. In either case, I am still acting
on faith that I have enough gas to make it to Las Vegas,
but in the latter scenario my faith is based on reason and
evidence.
The point of this philosophy lesson is to
communicate that your marketing decisions should be
based on reason. You will never have the exhaustive
knowledge necessary to guarantee success. Some
information may even be skewed by the methods used to
obtain the results. Nevertheless, you must have some
evidence upon which to base your decisions. This is the
difference between reasonable and unreasonable
marketing decisions. Get as much information as
possible and then use the information wisely to
implement changes.
Sooner or later you just have to jump in and see what

happens!
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Senior Care 2.0
Key 7: Adjust to Changes
Constant Change
There are only two constants in business: change
and people who think they are saying something
profound when they tell you the only constant in
business is change. Of course there is change, or I would
be writing this book on a cave wall instead of a laptop
PC. The difference in the past couple of decades is the
rate of change. Computers have greatly affected the way
we gather information and implement communication.
Advances in healthcare have extended the lives of
modern people. Radio, television, and film have
increased the scope of mass communication. Companies
must consistently assess their position in the marketplace
and make necessary adjustments to remain competitive.
221
Wes
Years ago, when reading the history of the Marriott
Hotel CorporationTM, I was captured by the goal of that
organization to anticipate the needs of its
customers and to have a ready answer or solution
in the wings. Senior housing and healthcare
would do well to embrace that philosophy. In
this environment, the “customer” or “reactor” to
a situation may be represented by many different people,
each with a different perspective or need. Meeting those
various needs becomes more than a juggling act if the goal
is to truly meet those needs. Expressed and actual
underlying needs may be totally out of sync and, as
expressed in this section, the rate of change also is
magnified.
I used to tell my healthcare administration students
that a successful administrator could keep several task balls
up in the air at one time and also could be interrupted to
switch gears to deal with a pressing issue and then
immediately return to the prior task. Those qualities are
still important, but anticipation and futurist thinking also
have a very important role. To merely get better and
quicker and more efficient at something that is no longer
important to the market, will not benefit your situation.
I’ve always liked the perception of being in first place
compared to other facility operations. I also knew that I
had to continuously be better operationally, be more
responsive to the needs of my customers, and anticipate
their future needs better than the competition.
As the rate of change increases, those sources used
to help evaluate future needs and implementation
strategies will become more critical.
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Senior Care 2.0
Mike
If you have a fear of change or the unknown, then
healthcare is not the place to be. Nursing homes have
changed drastically, and they will continue to do
so as people age. Our aging population is
driving the way we do business and, once again,
those who listen to the feedback will be the ones
who succeed. As the Baby Boomers age, they
will demand more services and amenities and will not
stand for a shower or bath once a week. They will want
computers and swimming pools. Online poker just might
replace bingo. I recently spent some time with a
physician who told me that hospitals will become places
for extreme medical care and nursing homes will need to
adapt to providing the other types of care. You can see
this already happening in many facilities in the acuity
that they accept. As the saying goes, “Change or be
changed.”
Kendall
Market pressure is coming on strong with the Boomer
generation. Boomers will not tolerate what has been a
product of the past, but will reinvent the chronic
care industry. We are already hearing some of the
terminology being used in the market. Words like
Wellness, Resident Center Care, Mind/Body and
Spirit, Naturopathic care, and Holistic Care are just a few
of the phrases.
What does this mean to me? All you have to ask
yourself is, “Is it easier, or harder to attract new residents
to my community?” If it is harder, take a look around.
Residents in your area might be aging-in-place. Or simply,
223
living in a “Naturally Occurring Retirement Community:”

your town! Boomers are taking advantage of alternative
home-maker services, home health agencies, or some sort
of parish nurse network. More and more communities are
complaining that the new residents are coming to them
“Quicker and Sicker!” This isn’t a new experience for the
long term care industry. We (long-term care community)
just stuck our head in the sand and ignored the hoofbeats
that were pounding the ground. Check out cities that are
actively marketing seniors to retire to their community.
Type into Google: “Tyler, Texas.” This town is driving
hard to recruit seniors to live and prosper within its
community.
No Change
Some things never change. Like islands floating in
a river of uncertainty, there are truths that remain no
matter what occurs in the environment. These are
universal principles that will continue despite any
technological advances created by humans. These are the
ideals that the company’s mission statement is based
upon and the direction in which the company seeks to
align itself. The Seven Keys to Marketing Genius are
principles that will continue as long as people are
people. The details on how to apply some of these
principles will change over time. Smart marketers gain
feedback (Key 6) and constantly adjust to changes in
market conditions.
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Senior Care 2.0
No Laurels
You cannot rest on the laurels of past
achievement. To be successful in the long term, you
must continually evaluate (Key 6) and improve your
marketing efforts. Past accomplishments will not assure
future success. As Janet Jackson put it, “What have you
done for me lately?” Some companies fall into this trap
by creating line extensions. They try to play on the
success of a previous brand instead of doing the hard
work of applying these seven keys to a new product.
There are no shortcuts, and past praise will not provide
future sales.
In hockey the best teams are disciplined and the
players take short 40-50 second shifts. A professional
team will have four lines of players who take turns on
the ice. In hockey a shift on the ice takes the energy of
sprinting a 100-yard dash. The best players give
everything they have and use all of their energy. As a
coach, I want my players to come to the bench tired
because that means they used everything on the ice.
Each line skates their hardest and comes to the bench for
a short rest.
In marketing you should either keep playing hard
or go to the bench and have a seat. To go through the
motions or coast around because you scored a goal last
week will not cut it. Marketing requires all your energy
and resources. If you do not put everything into your
efforts or rely on yesterday’s victories, I guarantee you
will lose today.
225
Wes
The Good Old Days of marketing should be a
reflection of the testimonials your existing resident
clients share with others. These should reflect
concrete examples of the responsiveness they
received to meet their personal needs. The
methods may vary, and the specific items may
change, but the perception of personal caring
and the emotional satisfaction at the end of the day will
carry on beyond the actual event and have positive
marketing impact for your community.
The Revisit and Revise Ad Infinitum Continuum

Implementing the seven keys is an ongoing
process. Continue to revisit and revise these elements by
asking these questions:
• SWOT - Have there been changes in the
marketplace? Is your competitive advantage still
unique? Are there ways to stay ahead of or hedge
competitors? Are there internal or external threats
on the horizon?
• Mission - If you have done the hard work of
creating a mission statement, it will come to mind
whenever making decisions. The mission should
also be revisited and revised at least twice a year.
Evaluate how well the organization is fulfilling
the mission. If it is aligned with the mission, you
can feel confident that you are on the right path. If
not, you will need to either refocus the energies of
the organization or to revamp the mission
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Senior Care 2.0
statement to more closely fit with the true values

of the organization.
• Goals - Are you on the path to meet or exceed
your goals? Are the goals still realistic? What
new goals should you be creating for the future?
• Alignment and Synergy - Is the company and
product still in alignment with the mission? With
universal principles? Is there alignment and
synergy between the stated competitive
advantages (Key 1), the purpose (Key 2), the
image (Key 3), the promotions (Key 4), the
relationships that are being established (Key 5),
the data that is being gathered (Key 6), and the
changes that are being made (Key 7)?
• Relationships - Are you establishing,
maintaining, and affirming long-term, protected
relationships with customers and employees?
You should ask these and other questions over and

over again on a regular basis. Once you are satisfied
with the results, start over again.
Show Them the Results

Few companies do a good job of gathering data,
and even fewer are good at implementing the necessary
changes. What is rarer still is the company that gains
feedback (Key 5), implements changes (Key 6), and
shows the customers the results of their feedback (Key
7). Imagine the feeling customers get when they see their
ideas implemented by a company. Can you imagine the
affinity they will have toward that company? This is a
powerful tool that not only gets the company on the
227
same page as the customers but creates a powerful

dynamic relationship between the marketer and the
consumers.
Mike
Your results are in your customers. What you do
and how you do it will be the difference between success
and failure. How you treat people will be the
reason that Mrs. Jones decides to admit her
mother to the other facility down the street. How
your nurses communicate with the hospital
physicians will result in more referrals. The
services you provide and the manner in which you
deliver them will be the foundation to your becoming the
premier provider of healthcare in your area. What will
you choose? I often use this poem in my customer
service training to drive the point of “servant
leadership.” It’s called Remember Me?
I’m the person who asks, “How long is the wait?”
You tell me ten minutes….but it gets very late.
I’m the person who sees, the whole staff loiters,
while my waitress does everything but take my
order.
I’m the person who says, “That’s not what I
ordered….but it’s O.K. I’ll eat it anyway.
I’m the person who calls, to see if my lost item
was found, and all I get is the run-around.
I’m the person who leaves with a slight frown,
because the hostess is nowhere to be found.
I’m the person who should write a negative letter,
but feel it wouldn’t make anything better.
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Senior Care 2.0
Yes, you might say that I’m a good guy that

understands that you kind of try. But, please read
on and you will see, there is another side of me.
I’m the person who never comes back because of
something you lack.
It amuses me to see you spending thousands of
dollars on ads never ending, in an effort to get me
back into your place, when you hardly even
remember my face.
In order to keep me as a guest I have but one
simple little request….
When I am here all you have to do is give me the
SERVICE I’m entitled to.
-Author Unknown
Involvement=Commitment
Involvement equals commitment; this is true on
many levels and in many areas of life including the
marketing process. Showing the implementation of
feedback to consumers is so powerful because it
intricately involves them with the product. Take the
example of MercedesTM who test- marketed the SUV. By
the time they were ready to manufacture the vehicle, the
study group involved felt very committed to the project
and wanted to make a purchase. The whole marketing
process is about involving consumers with a product in
hopes that they will begin a long-term commitment to its
use (Key 5). Showing customers how you have
implemented their feedback is a tremendous win-win
tool in this process.
229
Conclusion
So you finished the book: congratulations. I hope
you had as much fun reading it as I did writing it. Do
you feel smarter? Like a marketing genius? You
should! You now know the importance of finding your
advantage (Key 1) so that you have the edge to dominate
the market with your product. You understand why you
must define your purpose (Key 2) so your company and
your product can drive towards meeting the needs of
customers. You are adept at creating an image (Key 3)
that is consistently irresistible. You know the ins and
outs of implementing promotions (Key 4) that have the
power of synergy. You are well-versed with how to
effectively build relationships (Key 5). You know how
and why to gain feedback (Key 6) in order to effectively
evaluate your efforts and adjust to changes (Key 7).
Congratulations, you are now a marketing genius.
If you have a fairly good understanding of these seven
keys you are way ahead of the competition, and most
marketing and advertising professionals. I have one
request, and that is for you to be an advocate for this
book. If this book was helpful to you, please recommend
it to a friend, relative, professor, or publisher. I
appreciate your partnership in increasing the marketing
IQ of the world.
Wes
I am struck by an overarching lesson in this book:
the need to establish, maintain and affirm long-
term protected relationships with customers and
employees. As society becomes ever more fluid in
its loyalty to any brand, more fickle in its stated
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Senior Care 2.0
desires, and as the rate of change itself increases, this

goal becomes even more difficult. How is this to be
accomplished and then maintained? In thinking about
this, I believe relationships are based upon more than
facts. Couples, family members, and friends may have
the fact of a marriage, sibling connection, or interaction
due to job, church, home or social proximity. The facts,
however, do not commission any intense loyalty or
affirmation of positive long- term involvement with the
other person.
People value your presence and go out of their
way to interact or do business with you because of the
emotional connection and feeling of well-being that
occurs on a regular basis. Marketing is more than the
communication of facts and the expounding of
advantages of your product or service over other
choices. It is the connection of one human being to
another.
I have had successful marketers from a variety of
educational backgrounds, but one common denominator
seemed to be their ability to focus on the other individual
and make them their center of their mutual universe.
Once that connection was made and trust was
established, the advent of the sale itself was a minor and
natural event. In a time where everything is going faster
and faster, the time investment in a caring relationship is
becoming more valued and may very well become the
distinguisher in a sustained, long-term marketing
experience.
231
Kendall
In order to create a dynamic and engaged senior
care community, I would challenge your organization to
view beyond the walls. Take away the bricks
and mortar of your building and look at the
natural retirement community that is evolving
within a 10-mile radius. With this in mind, you
will create a much larger view of a caring community.
We now realize that meeting the needs of an aging
society is more than about creating attractive facilities. It
is about engaging active adults with services and
programs to maintain individual independence. If you
are providing home care, hospice, adult day care, senior
center activities, and case care management,
Congratulations! You have just barely met the basic
requirements of Baby Boomers! “What!” I hear you say.
The truth is that the next level is beyond the scope of
what is currently being offered. Things like investment
groups, travel programs, second career exploration, and
new educational options for seniors will be daily
operations for the facilities of the future. Are you ready?
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Senior Care 2.0
233
About the Authors

Michael Daehn
Michael’s passion is teaching others and empowering
them to increase their ability to market. He has a BA,
MA, and an MBA in Non-Profit Management. He is a
professor, author, consultant and speaker who has
created his own online university called
Marketingenious University. He’s a hockey fanatic who
lives in St. Louis, Missouri with his wife and family.
Find out more at www.marketingenious.com.
Dr. Kendall Brune
Kendall’s passion is creating life-long learning and inter-
generational opportunities. He went to undergraduate
school at the University of Missouri-Columbia,
graduating with a BS in Healthcare Administration.
Kendall then completed his MBA from William Woods
University, with a concentration in Healthcare
Management, 1995. He received his professional Fellow
from the American College of Healthcare Administrators
in 1998. He then completed his PhD in Healthcare
Administration in 2006 from Kennedy Western
University, and is currently working on his doctorate in
social gerontology from the University of North Texas.
Kendall’s graduate studies has centered on the impact of
“Religion/Spirituality as it Impacts the Functional Health
of the Elderly.” As a retirement community developer,
he has been responsible for the project management of
19 congregate living communities with more than $250
million of healthcare construction management.
Kendall, his wife and two children reside in St. Louis,
Missouri.
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Senior Care 2.0
Wes Sperr
Wes is a 25-year healthcare administrator, consultant
and former professor of the Washington University
Healthcare Administration program. He has an BS, MS
in education from Bob Jones University. Wes
completed his MBA from Washington University in
1993. He is a licensed nursing home administrator and a
Certified Fellow in the American College of Health Care
Administrators. He is certified in Skilled Nursing
Homes and Assisted Living Administration. While
developing retirement communities, he has focused on
how to provide technology-based healthcare services to
homebound and assisted living senior residents. He is an
entrepreneur who lives in St. Louis, Missouri, with his
wife and family.
Mike Graham
Mike holds a bachelor’s degree in Biology and
Psycology. He has spen the past 15 years as a Marketing
Professional in the Long Term Care Industry. As a
licensed Nursing Home Administrator, he has been
involved in all aspexcts of operating facilities. Mike has
consulted with many facilities and was instrumental in
developing the first outside marketing team for nursing
homes in the St. Louis area. Mike is also involved in
personal coaching and has trained many groups on sales
and customer service. He resides in St. Louis, MO, with
his wife and three children.
235
Ask the authors a question, learn more and keep up to date @

www.SeniorCare20.com
Speaking, Training and resources
Check out the Senior Care 2.0 website for:
¾ Workbooks
¾ Training packages
¾ Online courses
¾ Speaking information
www.SeniorCare20.com
www.futurefocuscommunity.com
www.quietmanfoundation.org
We want to continue to inform you and bring you useful

information. So please check out the site to see what is
happening today~!
- The Senior Care 2.0 Team
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Senior Care 2.

Introduction: Senior Care 2.0:

From the ivory tower position, where I have tried to

As any one knows who operates a program, it is difficult

What is needed is a volume that one can be picked up

They deal with such classes issues as mission, producing

experienced leaders of senior service things about

What is of added importance in this volume? The

For these authors, a major challenge facing our planet as

Dr. Kendall Brune - Senior Living Guru

In most cases I have found that employees want to do

Throughout each chapter we will share our successes

long-term care bed for a parent or a friend or a third

emotions of both the decision maker and the end user.

of the month club” to see what new programs they can

Social workers, activity directors, and therapists

message, long-term success is doubtful. Key 2: Define

Key 1: Find Your Advantage

The first challenge is to engage this uniqueness and see

was that animals, plants or children are viewed much

Take those strengths and creatively script talking points

Every stakeholder (someone who has an interest

community. I had successfully introduced the Eden

After I tried to push them into their laps a resident took a

care. He called and asked what kind of program we were

specific distinctions will help both the consumer and the

¾ The special recreational and activity opportunities

There are times when our distinctives are readily

A SWOT analysis is best performed before going

individual, organization or corporation. Certainly, when

SWOT your competition with a marketing strategy based on

Implementing a SWOT Analysis

To begin the SWOT analysis, gather information

take necessary precautions. On the other hand, do not

SWOT Analyzing Inside the Outdoors

interdependent on the other programs. Inside the

are copied (though not necessarily legally) almost

What makes your company and or product unique?

Tired of Poor Service

about 12 tire stores within a five-mile radius of my

the items. I went as far as having a refrigerator

populated Orange County area of Southern California.

on medical and nursing care. There is also a huge

with facilities on moving this process of planning

Perceived Value and the Quality Myth

match your price and your perceived price advantage

advance perceived needs and desires, and then meet

Learn From Coca- Cola TM

The result was a tremendous backlash from the

Get Your Hands on Nature

What and Why

Key 2: Define Your Purpose

Why are you in business? What are you trying to

of this thesis. In the same way, every activity of a

• Make it memorable. It may be great, but if people

I recommend that people create a personal mission

Our skilled and compassionate staff ”enable”

to which that mission or philosophy of care is

• Are there loved ones, family, co-workers,

Are your goals clearly identified?

Review, Reevaluate and Revise

I wrote my personal mission statement, then reevaluated

opportunity for meeting the retirement dreams, desires,