Running Head: HEALTHCARE MARKETING

Marketing Plans in Healthcare Organizations Melody France MHA626: Strategic Planning & Marketing in Health Care Dr. Gary Hanney 22 April 2012

HEALTHCARE MARKETING

A marketing plan is the written document that describes an organizations advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix intended for use in reaching marketing goals (entrepreneur.com, 2012). Another definition of a marketing plan, for better understanding, is a product specific, market specific or companywide plan which describes activities involved in achieving specific marketing objectives within a set timeframe. A market plan begins with the identification of specific customer needs and how the organization intends to fulfill them while generating an acceptable level of return. In the video, Why Your Practice Needs a Marketing Plan, Joel Ellis explains the importance and benefits of using a well-researched and defined marketing plan for healthcare practices, and some of the key considerations involved. The business plan of any organization can only occur after a successful strategic plan is form and securely in place. The strategic plan in any corporation, organization, and small business ventures has a vision on where this organization needs to be in the future. The strategic plan is a long-term (three- to- five years) views of where the organization is going (Hillestad & Berkowitz, 20034, p. 32). A strategic plan is just that, a plan of things to come and how to attain the business or how to view the vision, mission, goals, of a specific organization. A strategic plan also examines what other organizations are in your future business area or location and the bottom line for that compared to business. In other words, are there enough customers and revenue to meet the need of another business in the same area? The business plan is a year-by-year tactical execution of the overall organization strategy. Each operating unit of an organization is responsible for producing annually its own distinct business plan, which should incorporate the operational, financial, personnel, and marketing needs of the specific unit(Hillestad & Berkowitz, 2003, p. 32-33). Once the strategic plan (long term view) is in

HEALTHCARE MARKETING

place, then an organization can start working on the business plan, finding sponsors, shareholders, investors and others interested in your business vision. Once the business is up and running and the business plan have drawn in enough capital to run the organization it is now time for the marketing plan. The role of the marketing person, in contrast, is to remain aware of the organizations marketing philosophy and to implement a customer-oriented marketing plan (Hillestad & Berkowitz, 2003, p. 36), in simple terms; what does the organization need to do to attract, keep, and maintain the customer base the organization currently has? What innovations must the organization possess to attract customers away from where they presently do business? Customer in general dont like change and if they are happy where they are no matter what the business may entail, it will take a strong marketing department to change their minds and come over to a new organization. Why does a healthcare organization need a marketing plan? The same reason every other organization needs a marketing plan; to stay competitive with the local market and surrounding healthcare providers. Joel Ellis, president of Practice Builders has a list of reasons why medical centers, clinics, and hospitals need a marketing plan. The main reasons why healthcare practice needs a marketing plan as outlined in the video are (a) plan nothing, nothing is what you accomplish, (b) financial investing, (c) there are risks to an organizations financial bottom line, and reputation, and marketing cant be done on a sometime basis it must be done all times on a daily basis. The three considerations mentioned for the outline in the video are (a) planning, (b) execution, and (c) tracking and making adjustments. The main reason why healthcare practices need a marketing plan is because otherwise nothing will be accomplished. If you plan nothing, nothing will be accomplished. Three necessary considerations described in the video are to make an investment to properly executing

HEALTHCARE MARKETING

on your marketing plan. Marketing has risks both financially and to your reputation if not designed and executed properly. Marketing is not a sometime thing, its an everyday thing. Having a marketing plan should have focused daily the organizational goals. Three distinguished strategies presented in the video are internal, external and professional referral marketing. Internal marketing involves communicating with the organizations current patients (a patient base). External marketing includes promoting the organizations practice to potential prospects (direct consumer). Professional referral marketing is a method of promoting services to new customers by word of mouth. Marketing reduces risks being taken and optimizes chances to promote growth. The Veterans Health Administration (VHA) strategic plan develops from mission and vision to strategies and performance goals that follow through a continuum that go through the field and unit level. The mission of the VHA is based on providing health care, research, education, and national emergency preparedness, by establishing one strategic plan that is implemented throughout the VHA. The drive for the budget planning, policy formulation and legislative initiatives are part of the strategic and operational plans (C. Stevens, personal communication, 20 April 2012). The Veterans Administration (VA) integrated strategic plan is supported by the contribution of the VHA strategic planning process. The key roles are played by the senior leaders and staff in the development of strategic and operational planning. They provide innovation and creativity to support the operational and strategic planning. The video was very insightful as ways were shown to apply the information into the marketing plan of most any type of healthcare organization. By envisioning an ideal healthcare organization, the different types of marketing strategies can be applied to any healthcare organization to bring the organization closer to the proposed ideal. Things such as the number of patients, potential prime location and exceptional staff will make any healthcare organization a

HEALTHCARE MARKETING

better place to work and maintain. Marketing and strategic plans also help with cost effectiveness. Having a good strategic marketing plan would help to achieve the goal of a successful healthcare organization.

HEALTHCARE MARKETING

References Ellis, J. Why Your healthcare Practice Need a Marketing Plan. Retrieved from http://www.youtube.com/watch?v=KcISAM7U76I Hillestad, S., & Berkowitz, E. (2003). Health care market strategy: From planning to action, 3rd Edition. Sudbury, MA: Jones & Bartlett Publishers Marketing Plan. (2012) Retrieved from http://www.entrepreneur.com/encyclopedia/term/82450.html