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What Model for Health Care Marketing?

by Scott MacStravic

While marketing in the health care industry has a fairly long history, finally, it is nowhere near as long as that of other, indeed most other industries. The modern discipline of marketing, with market research, customer experience management and targeted advertising is roughly 60 years old, having emerged soon after WWII, while health care marketing is only 30 years old or so. As a result, we have long looked for models in other industries.

As a service industry, it has been natural for health care to look at other service industries for a model to follow, or at least to adapt. The financial services industry has been suggested by many, since it involves a valuable “life asset”, namely wealth, and services that are designed to help people manage that asset, as is somewhat true with another life asset, i.e. health.

Retail sales industries have been suggested as models, since “customer service” is an essential component of health care, in addition to clinical quality. Besides, many marketing gurus have recommended that health care organizations increase their revenue sources by engaging in retail sales of health-related products. And health care has increased its availability and access through “retail” convenience clinics that are located in popular shopping malls, supermarkets, drug stores and superstores.

But there is another possible model available to health care – the automotive industry. It might seem counterintuitive, since that industry deals in a durable good, the automobile, rather than a service, but there is much to recommend the idea. Primarily, it is the fact that the automotive “customer experience” lasts far longer than the purchase transaction. People keep and use their cars for years, if not decades, and the benefits vs. costs of ownership is a major factor in customer loyalty, not merely the purchase transaction.

The auto industry has moved significantly in its marketing, from decades-old focus on the features and attributes of their product to a recent, usually overblown emphasis on the “driving experience” it offers. Prospects are being told that everyone will envy their having a particular brand, want to drive with them, and look up to owners of that car. They are being told that their lives will become better, their stress reduced, their enjoyment and excitement increased, merely because they drive a particular car.

While this marketing could be criticized as ridiculous “puffery”, it at least suggests something that health care marketers could emulate – a focus on what happens to patients after and because of their health care patient experiences and relationships. What “meaning in their lives” do patients perceive as consequences of their hospital stays, outpatient visits and physician relationships? What differences would they expect in their lives if they chose other providers and relationships, if any?

Health care providers become significant partners in a host of life-meaning experiences. From pregnancy and childbirth to menopause and aging to end of life, hospitals and physicians are frequent partners in life stages and events that the majority of patients experience. And the consequences of acute disease treatment and chronic disease management, to say nothing of proactive efforts designed to reduce the incidence of disease and injury in the first place – make major differences in people’s lives.

Until providers expand their horizons to see their “products” in terms of life meaning and impact, health care marketing will be mired in myopia, focused on features and attributes, or rare and episodic encounter experiences. Unless providers recognize and make the most of the life impacts they already have, and on added impacts they might have, hopefully in a more realistic and credible fashion than is true with automobiles, they will miss out on huge opportunities to become major “life partners” with patients, instead of modest sickness fixers.


7 Comments »

  Janet wrote @ November 28th, 2007 at 4:37 pm

They might want to think about how “fair” they are in their marketing plans.. With the issue of health care and increasing Medicare premiums becoming a problem for many elderly people and those on fixed incomes, it’s not even an option for a decent part of the population!!!! AARP has set uphttp:/www.thisissoridiculous.com so that we can sign a petition to make our voice heard while being able to read news and info and view videos on the subject. This site is here to inform us and also allows us to easily e-mail your congressman to let him know how you feel. I’m to support AARP for better Medicare. Nobody is going to do this FOR us, so we need to raise our voices to those that have the ear!!

  Healthcare Marketing « Patient Centric Healthcare wrote @ November 28th, 2007 at 10:06 pm

[…] the World HealthCare Blog talks about a healthcare marketing model.   It talks about possible models to apply.  It suggests the automotive industry as one rather […]

[…] Check This Out! While looking through the blogosphere we stumbled on an interesting post today. Here’s a quick excerpt: While marketing in the health care industry has a fairly long history, finally, it is nowhere near as long as that of other, indeed most other industries. The modern discipline of marketing, with market research, customer experience … […]

  Cynthia Chiarappa wrote @ November 30th, 2007 at 8:19 pm

I couldn’t agree more about the need for caregivers to see their products in terms of life meaning and impact. You may want to check out California Pacific Medical Center’s “Beyond Medicine” campaign (www.cpmc.org/beyondmedicine). It is premised on the thesis that “medicine can transform a body, but going beyond medicine can transform a life.” Centered around patient experiences, these powerful stories demonstrate that the caregivers’ work of going “beyond medicine” enables patients to go “beyond medicine” to a transformed life. Quite inspiring and powerful for anyone in the health profession!

  Dawn Holcombe wrote @ December 6th, 2007 at 1:46 pm

Scott,

You are absolutely right in your assessment. I’ve been working with practices and payers in oncology. This is a specialty that is ripe with opportunities for showing impact on patients, yet our technology and own way of taking the care choices and process for granted are hampering our ability to state the value propositions. There are companies trying to sell their services to managed care organizations offering third party interventions for disease management and quality, and yet most practices deliver quality care, albeit in inconsistent fashion, and without recognizing, defining, reporting, and marketing it.

The challenge we face in oncology is that chaos in the reimbursement system and costs of drugs are creating a rising pressure to “do something and fix it”. Yet since most managed care organizations don’t understand oncology practice, and most oncology practices focus on patients and not the mounting storm swirling around them, a mere change in marketing focus won’t build the bridges we need to create solutions. Like marriage counseling, both sides need to learn more individually about each other, and then start the process of transforming care delivery and payment into a triangle that enfolds the patient as a “life partner” as well.

Doctors take for granted what they do on a daily basis, and still find it hard to understand why they now are being asked to “prove their value” because they see it as obvious. Once they understand why and how best to accomplish that goal as individual physicians/practices and in networks and across specialties, we will see the redefinition of medical marketing. I think then it will be interesting to watch the re-emergence of the physician at the center of medical decision-making and markets, and to watch what that does to hospital/organizational markets and their own marketing strategies once the physicians assert their coordination of medicine and medical delivery.

  What is Web 2.0? « Healthcare Marketing Team Blog wrote @ December 7th, 2007 at 6:17 pm

[…] World Health Care Blog […]

  Fast Friday: First Edition « Patient Centric Healthcare wrote @ March 28th, 2008 at 11:01 am

[…] Found a couple of entries on marketing and healthcare on the WorldHealthCareBlog. […]

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