Tag Archives: marketing

Integrated Marketing Communications Case Study

Integrated marketing communication provides a seamless and comprehensive delivery of information to consumers. Hendrix and Hayes (2010) discusses the prevalence of integrated marketing since the 1990s and its usefulness in complying with the perceptions of consumers. In this way, integrated marketing communication is consumer-centric and relationship driven. An award-winning case study of Pfizer Animal Health, MGH, and TagTeam Global by the Public Relations Society of America (2009) demonstrates the utility of integrated marketing concepts.

Background

Pfizer developed a canine weightloss medication, Slentrol®, in 2007, and relied on the collaborative efforts of MGH and TagTeam Global to launch the marketing efforts in 2008. Slentrol® is the first-in-class drug approved by the Food and Drug Administration to treat canine obesity. The comprehensive effort resulted opening conversations between veterinarians across the country and approximately 200,000 dog owners, increasing dog obesity awareness, and, ultimately, lead to a 42% gain in Slentrol® sales.

Research

Hendrix and Hayes (2010) describe how a SWOT analysis would be extremely useful when preparing for an integrated marketing effort. They stress that leveraging strengths and acknowledging weaknesses honestly allows the firm the ability to maximize market-share while maintaining vigilance against external threats. According to the Public Relations Society of America (2009), the primary research, conducted primarily by Pfizer, helped to define the market. MGH and TagTeam Global furthered this research with anecdotal evidence provided by friends, family, and colleagues and surveys directed to veterinarians, which helped to define the degree of understanding that most people have of the health risks of obese dogs. MGH and TagTeam Global also performed secondary research to help to define the messaging in a way that would resonate with dog owners.

Objectives

The objectives of integrated marketing communications is, by definition, comprehensive. In the case study, the objectives included increasing a focus on canine obesity, educate dog owners to the dangers and risks of canine obesity, motivate dog owners to seek treatment if their dogs were perceived to be obese, and to increase sales of Slentrol® (Public Relations Society of America, 2009). To meet these objectives, a public outreach event, the National Canine Weight Check, was designed to allow dog owners to visit a participating veterinarian during an entire month for a weight assessment free of charge (Public Relations Society of America, 2009).

Programming

The Public Relations Society of America (2009) case study demonstrates a varied use of media and consumer word-of-mouth communication to raise awareness of canine obesity. MGH and TagTeam Global also created a website dedicated to provide education about canine obesity and recruited a number of veterinarians to participate in the outreach. These veterinarians were provided with advice on how to broach the topic as well as the necessary equipment to perform the free weight assessment. Again, they relied heavily on the previous research in order to communicate most effectively with dog owners based on the vernacular present on canine websites and discussion boards. This was a very strategic use of available communication tools.

Evaluation

The National Canine Weight Check is lauded as attracting over 200,000 dog owners to participating veterinarians to discuss the risks and options concerning their overweight dogs, Pfizer enjoyed a 42% increase in sales of Slentrol®, and Pfizer realized a great opportunity for continued marketing to almost 1,500 consumers through social network connections (Public Relations Society of America, 2009). Many other goals and objectives were met, and Pfizer, MGH, and TagTeam Global consider the National Canine Weight Check a large success.

Discussion

Integrated marketing communications is a comprehensive combination of many advertising, marketing, sales, and public relations tactics to provide unification in the messaging and more effectively leverages the strengths of the organization. Integrated marketing relies on two-way communication and serves to establish long-lasting relationships between the organization and consumers. Integrated marketing can be very useful in a myriad of situations, and though it requires great attention to detail and thorough research to accomplish effectively, the rewards can be immense and lasting when done right.

Pfizer, MGH, and TagTeam Global would not, in my opinion, have benefited from such success had they not implemented this comprehensive approach. The research alone allowed the effort to succeed by uncovering more ways to attain credibility with the consumers as well as veterinarians (Public Relations Society of America, 2000). Further, the biggest benefit to integrated marketing that Pfizer now enjoys is the long-term loyalty and commitment found in a significant share of the market. This could not be attained, according to Hendrix and Hayes (2010), with other, more modest, forms of communication and marketing.

References

Hendrix, J. A. & Hayes, D. C. (2010). Public relations cases (8th ed.). Boston, MA: Wadsworth Cengage Learning.

Public Relations Society of America. (2009). National canine weight check (Product #6BW-0916A11). Retrieved from http://www.prsa.org/Awards/SilverAnvil/

Marketing Plans in Health Care

Health care marketing is interesting when considering military treatment facilities. Naval Hospital Pensacola, according to Ludvigsen and Carroll (2003), is limited in the scope and manner that administrators are allowed to use federal monies to fund marketing efforts. Since budget cuts forced many military installations to close, and with them the attached military treatment facilities, efforts have been made, through programs like Tricare, to redirect the military health care market to the civilian care providers; however, hospitals that remain in operation, such as Naval Hospital Pensacola, have found that their market share has decreased sharply over time.

Naval Hospital Pensacola developed a marketing plan in 2003 to address the 5,000 enrollment opportunities that were left vacant due to military restructuring and Tricare development.

About Naval Hospital Pensacola

Naval Hospital Pensacola, a 60 bed facility, is the second oldest Naval hospital. The services provided by Naval Hospital Pensacola are primarily primary care, but the facility also has five operating suites and also provides urology, orthopedics, obstetrics and gynecology, among other services and operates with a budget of $64.5-million (Ludvigsen & Carroll, 2003). Naval Hospital Pensacola’s pharmacy is said to be the fourth busiest in the Navy, according to Ludvigsen and Carroll (2003).

Marketing Naval Hospital Pensacola

Purpose

In order to analyze the potential for additional capacity, Naval Hospital Pensacola formed a committee whose recommendation was that an additional 5,000 enrollee capacity was possible. The hospital, at the time of the plan formulation, served approximately 19,000 enrollees. The Managed Care Department of Naval Hospital Pensacola then developed this marketing plan to answer the recommendations of the capacity committee. Additionally, “the hospital implemented a policy which requires TRICARE Prime enrollees moving within [Naval Hospital Pensacola’s] catchment area of 40 miles, to use [Naval Hospital Pensacola]” (Ludvigsen & Carroll, 2003, p. 1). This policy ensured that certain Tricare recipients must utilize services provided by the naval hospital and dissuaded them from using civilian services that other Tricare recipients were allowed to use. This policy, according to Ludvigsen and Carroll (2003), provided additional access to approximately 10,000 Tricare Prime recipients residing within the 40-mile catchment area of Naval Hospital Pensacola.

SWOT Analysis

The marketing plan (Ludvigsen & Carroll, 2003) provided internal and external analyses that showed staffing was adequate for the proposed growth and, unlike the civilian sector, the funding would be made available based on use as Naval Hospital Pensacola is a military treatment facility whose budget relies on enrollment and not on cost-savings. “Because [Naval Hospital Pensacola] derives its funds via Federal appropriations, [Naval Hospital Pensacola’s] administration does not experience the financial pressures that civilian counterparts face, and can focus on quality issues” (Ludvigsen & Carroll, 2003, p. 7). Additionally, Naval Hospital Pensacola relies on the concept of one-stop shopping for enrollee health care needs as a marketing strength.

However, the SWOT analysis detailed within Ludvigsen and Carroll’s (2003) marketing plan admits that the naval hospital suffers access of care issues as a main vulnerability. This, coupled with a broken promise image, allows three other area hospitals to fulfill this marketing void. “Effectively competing requires improving quality of care, creating access, improving facilities, providing amenities, and promoting these accomplishments” (p. 9). Examples of Federal legislation are provided to show the marketing disadvantages of military treatment facilities.

Objectives

The primary objective of the marketing plan (Ludvigsen & Carrol, 2003) is to increase enrollment by 5,000 Tricare Prime recipients, mainly within the internal medicine, family practice, and pediatric clinics. In order to be viewed as successful, the minimum additional enrollment must be 2,000 over the next two years, again targeting 5,000 additional enrollees.

Methods

The marketing plan (Ludvigsen & Carroll, 2003) of Naval Hospital Pensacola utilizes a combination of three models in order to focus the hospital efforts. The first model is the traditional marketing mix model detailed by four components: product, placement, pricing, and promotion. The second model, based on the hospital’s own consumer marketing studies, include four components, “the Four C’s” (p. 21): competence, convenience, communication, and compassion. The final model, based on the Institute of Medicine’s (2001) health care improvement aims and objectives, includes safety, efficacy, patient-centricity, timeliness, efficiency, and equity.

Using a matrix to match the qualities of each of the three models, criteria were developed to further synthesize the goals of the hospital, its marketing theory, and the expectations of the targeted health care consumers. Representation of this combined modeling, however, starts to confound the reader by unnecessary references to concepts of quantum physics. The model is concisely represented by three dimensional representation with patient-focus in the middle of a pyramid formed between product, access, efficiency, and promotion.

Discussion

Being a military treatment facility and being highly governed by Federal legislation, Naval Hospital Pensacola is not a typical health care organization. In order to market improved or underutilized services, the hospital requires a novel approach, which is outlined within the marketing plan of Ludvigsen and Carroll (2003).

Naval Hospital Pensacola does well to focus, first, on the strengths and weaknesses identified by internal and external analyses, then, developing a plan that exploits the strengths to develop a means of overcoming the identified weaknesses. By focusing on industry-accepted aims and objectives, Naval Hospital Pensacola demonstrates improvement in measurable areas to attract additional enrollment. It is important to note, however, that, being a military treatment facility, the hospital enjoys a rare advantage of being able to pass rules mandating enrollment of certain beneficiaries within the prescribed catchment area.

The plan is an effective means of overcoming certain identified obstacles. It is realistic, allowing for fail-soft situations (or, minimal standard improvement), and comprehensive plan that addresses a true marketing need for both the hospital and the target health care consumer.

References

Institute of Medicine. (2001). Crossing the quality chasm: a new health system for the 21st century. Washington, DC: National Academy Press.

Ludvigsen, S. M. & Carroll, W. D. (2003). Naval Hospital Pensacola marketing plan. Retrieved from http://www.tricare.mil/familycare/downloads/marketing_plan.pdf

Direct To Consumer Advertising: Patient Education

Today, we are familiar with mass-media marketing of prescription drugs not only to physicians but to patients as well, known as direct-to-consumer advertising (DTCA). Though, many argue that a better informed patient allows for more autonomy in physcian-directed care (Buckley, 2004; Lyles, 2002; Sumpradit, Fors, & McCormick, 2002), “the evidence for DTCA’s increase in pharmaceutical sales is as impressive as is the lack of evidence concerning its impact on the health of the public” (Lyles, 2002, p. 73). Concerns abound regarding the ability of the physician to direct the care of a patient driven by DTCA. Many researcher’s, including Buckley (2004) and Green (2007) believe that many physicians prescribe medications solely on the request of the patient without providing guidance or education to the patient.

As a paramedic, I hear the concerns of patient’s regarding physician refusals to prescribe name-brand drugs to patients. These patients are almost militant about their beliefs of their illness and that the physician should honor the requests of their patients. While these patients never seem to find a resolution, I also see many people who trust in their physicians’ role and, with education, discuss with their physicians the possibilities and concerns of advertised medications. As one secondary data analysis (Sumpradit et al, 2002) suggests, though there is no demographic difference in the propensity of patients to ask their doctor for a medication based on DTCA alone versus seeking more information from their doctor, those with chronic conditions and who have poorer perception of health status tend to engage their physicians more often to clarify information garnered from DTCA’s.

I feel that DTCA is can be an empowering tool for the patient as long as it is educational, honest, and forthcoming. Empowering the patient to take an active role in his or her medical care is very important, but this empowerment comes with responsibility to be as fully educated as possible, allowing the physician his or her role in the relationship as the ultimate patient advocate, which some physicians lack.

References

Buckley, J. (2004). Pharmaceutical marketing: Time for change. Electronic Journal of Business Ethics and Organization Studies, 9(2), 4-11.

Green, J. A. (2007). Pharmaceutical Marketing Research and the Prescribing Physician. Annals of Internal Medicine, 146(10), 742-748.

Lyles, A. (2002). Direct marketing of pharmaceuticals to consumers [Abstract]. Annual Review of Public Health, 23, 73-91.

Sumpradit, N., Fors, S. W., McCormick, L. (2002). Consumers’ attitudes and behavior toward prescription drug advertising. American Journal of Health Behavior, 26(1), 68-75.