The Essentials of Marketing

1. The Essentials of Marketing Especially for The Missouri Health Care Association August 27, 2008 Anthony Cirillo, FACHE, ABC www.4wardfast.com

2. 50 Ways to ROI

5. “…a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” What is Marketing?

6. What is Marketing? Marketing Customer Wants Company Capabilities

8. Consider… • 69% people interested in products that block ads • 65% want limits and regulations • 65% constantly bombarded with advertising • 64% concerned about practices and motives • 61% say don’t treat with respect • 61% amount of advertising is out of control • 60% much more negative about advertising Source: Yankelovich Partners

9. Marketing 101 Sometimes we know what to do but we don’t do what we know.

11. What marketing isn’t. • Marketing is not advertising. • Marketing is not promotion. • Marketing is not sales.

12. Marketing is not new! Peter Drucker “It is the customer who determines what the business is. For it is the customer, and he alone, who through being willing to pay for a good or service, converts economic resources into wealth, things into goods. What the business thinks it produces is not of first importance—especially not to the future of the business and to its success. What the customer thinks he is buying, what he considers ‘value,’ is decisive.” 1954

13. Marketing Mindset • Walk in your client’s shoes. • Understand different buying behaviors. • Know different needs mean different markets. • Be market-focused, not product-focused. • A successful product is one that sells. • Consider the “whole product”. • See the big picture.

14. Marketing Mindset Walk in your client’s shoes. • Understand what they want, rather than what you want. • See things their way. • Feel their pain.

15. Marketing Mindset Understand different buying behaviors. • Different people buy at different times. • How many of you had a DVD 10 years ago? • How many still don’t have one? • How about a CD player? • Anyone still have 8-tracks?

16. Marketing Mindset Know different needs mean different markets. • McDonald’s • Happy Meals • Playgrounds inside and out • Food you eat with your hands • Toys • Ronald • Color

17. Marketing Mindset Be market-focused, not product-focused. • Coca Cola and New Coke

18. Marketing Mindset A successful product is one that sells. • Microsoft probably doesn’t make the best product. • SONY Betamax was a better product than VHS. • It’s marketing!

19. Marketing Mindset Consider the “whole product”. • What is your favorite restaurant? • Food? • Ambiance? • Service? • Location(s)? • Price? • Reputation?

20. Marketing Mindset See the big picture. • Not your big picture, your customer’s! • Where do you fit in? • In what context? • Are you a priority? • If you are not a priority, what is? • Is there any relationship between you and what the priority is?

21. Keep in Mind • Viewed as an investment. • It’s OK to play in other people’s sandboxes. • Marketing is not just the marketing department. • Every touchpoint is a market opportunity and brand builder. • Need to stay on course despite obstacles.

22. The 5th “P” of Marketing • Product, Price, Place, Promotion • PERMISSION • Enter into a dialogue • Create communities • Build brand • Build loyalists

23. Marketing Plan • Tied to organizational goals • Based on sound data • Developed by the marketing department in conjunction with other key personnel • Achievable goals • Measurable results; continuous feedback • Time sensitive with assigned responsibilities

24. The Preliminaries • The Executive Interview • Mission / Vision Your mission is what you do best every day, and your vision is what the future looks like because you do that mission so exceedingly well. Federal Express: “Peace of mind”Nike: “Authentic athletic performance”

25. Who is it?

27. The Preliminaries • Gathering and Interpreting Environmental Data • Start with organizational history and perceptions What’s Your History?

28. The Preliminaries • Gathering and Interpreting Environmental Data • Competitor Analysis • - the questions • - the sources • - the template

29. The Preliminaries • Trend spotting • Core services; service diversification • Market share • Facilities • Strategic Plan • Service Area • Key Audiences • Employees • Referring Physicians • Discharge Planners • Politicians • Clergy • Business • Volunteers • Service Organizations • Fundraising • Emergency Medical Services • Media • Support Groups • Affinity Groups • Unions • Payers • Financial Institution • Government • Vendors • Residents • Community • Families and Caregivers

30. The Preliminaries • Physicians • Resident / patient advocates • Influencers • Alliances and Partnerships

31. S.W.O.T • Not a to-do list but a guide to strategy • Definitions • Focus on key factors and competitive advantage • Internal factors: organization, customers, competitors • External Factors: competitive environment, economic, political/regulatory, societal Not swat; SWOT!

32. Reality – Often Unaligned • Of the 12, highest were: • Marketing Clinical Centers of Excellence • Organizational Branding Strategy • Physicians and Referral Source Marketing • Of the 12, lowest were: • Retention of nursing staff and other staff • Marketing to culturally diverse populations • Preparing for the threat of bioterrorism AHA CEO Survey, 72% of CEOs rank labor and staffing as top priority Healthcare Marketing Leaders’ Perceptions Regarding the Impact of Select Healthcare Trends on Current and Future Strategic Plans. SHSMD and the Ohio State University School of Medicine.

33. A Dose of Reality “Complex analysis and ROI calculations will either be automated or performed by analytical experts to keep marketers focused on their core competency.” Marketing ROIJames D. Lenskold

34. Why we’re hesitant! “Post-Statistics Stress Disorder” Sam Savage – Stanford University

36. A Dose of Reality 38% of companies measure marketing 16% of executives at companies that measure are dissatisfied with marketing efforts 28% of executives at companies that don’t measure are dissatisfied with marketing efforts Marketing Professors “If You Don’t Measure You Can’t Manage” Patterson 11/23/04

37. A Dose of Perspective American companies are obsessed with window dressing, because they’re reluctant, no, afraid to look at whatever it is they really do and evaluate it from the inside out. When things are down, CEOs look to consultants and marketers to re-think, re-brand or repackage whatever it is they are selling, when they should be getting back on the factory floor, into the stores or out to the research labs where their package is actually made, sold or conceived. Douglas Rushkoff “Get Back in the Box”

38. Filter to Focus What do the numbers say? What does the “C” Suite say? What does the marketplace say? Apply additional criteria, rank, marketing plan, marketing audit

39. Marketing Audit How well is the Marketing / Communications function supporting the System’s major objectives? “Surgical strike” Comprehensive Audit

40. Steps • Environmental Assessment • Executive and Board Interviews • Referral Source Interviews • Staff Interviews and Shadowing • First Review of Campaigns and Services • Focus Groups – Internal • Focus Groups - External • Key Constituent Interviews • Futurescan, Political and Competitive Environment • Focused Review of Programs, Services and Staffing

41. Marketing Audit • Go back and review: • What stays as is? • What stays but is modified? • What is deleted? • What is added? • Staffing: • Appropriate number • Appropriate skills • Train, hire, outsource • Organizational Chart

42. U.S.P. Not “What do your residents say that makes you unique?” But “What do we want to do in our business that's different from everyone else?”

43. U.S.P. “Injury-free yoga”

44. U.S.P. “Dominos Pizza. In 30 Minutes or It's Free! ”

45. U.S.P. Unique Selling Proposition (slogan) “Growing Market Share by Leveraging Loyalists” Unique Selling Proposition (abbreviated) We work with CEOs who want to grow market share and cultivate customer crusaders for lifetime loyalty. Unique Selling Proposition (expanded) We help CEOs grow market share and cultivate customer crusaders by developing strategic marketing plans with innovative solutions designed to capture the attention and improve the lives of those they serve and earn their lifetime loyalty.

46. U.S.P. Subway—7 subs with under 6 grams of fat. Federal Express—When it absolutely, positively has to be there overnight Dominos Pizza—30 minutes, or it's free! Real Estate Agent—Specializes in just 250 homes in the Milford area. 9Second.com—Search Engine Positioning without geographical conflict of interest. Video Easy—Get it first, or get it free. (Note: They're talking about getting videos when you walk into the store.) Biz Tactics.com—Marketing books you can read in 30 minutes or less. Hardware Store—Only 3% mark up on wholesale prices. Law Firm—House conveyancing for a flat fee of $1,000. No hidden costs. Indian Restaurant—100 Dishes to choose from if you don't fancy butter chicken. Herbal Smoke Away—Money back if you don't give up smoking in just 7 days.

47. U.S.P. Uniqueness has to be invented. Look at your business like you were a surveying your kingdom. Make this big, warm wish for your royal subjects. If you could, what would you do differently? Then do it. And once you've got it right, announce your uniqueness to the world. Obviously: find out if your competitor does the same? And does your competition stress their uniqueness? If No, proclaim your uniqueness to your customers. If you're the first one to announce it, you own it.

48. Market Position and Positioning Statement “If you don't care where you're going, it doesn't make a difference which path you take."

49. Market Position A market position is the cold-hearted, no-nonsense statement. “XYZ nursing home is perceived as the facility that serves the poorest, most frail population. In a three nursing home market, it ranks first in market share and third in patient satisfaction. It is known for good care but does not stand out among the leaders for offering exceptional services.”

50. Positioning Statement • who you are • what business you're in • for whom (what people do you serve) • what's needed by the market you serve • against whom do you compete • what's different about your business • what unique benefit is derived from your services