Chapter 1: The Meaning of Marketing

What is marketing?

The process of planning and executing conception, pricing, promotion, and distribution

What three types of offerings can be marketed?

• Ideas

• Goods

• Services

What four activities are included in the marketing process?

• Conception

• Pricing

• Promotion

• Distribution

What is an exchange in marketing?

When parties give and receive something of value

Why is marketing not the same thing as advertising or promotion?

Promotion is only one part of the marketing process

What are the four prerequisites for marketing?

1. Two or more parties with unsatisfied needs’

2. Desire and Ability to satisfy those needs

3. A way for the parties to communicate

4. Something to exchange

What type of needs must two or more parties have for marketing to occur?

Unsatisfied needs

Besides having unsatisfied needs, what must parties have for marketing to occur?

The desire and ability to satisfy those needs

Why must parties have a way to communicate for marketing to occur?

They need a way to connect with each other

What must parties have available for a marketing exchange to occur?

Something to exchange

How do the four prerequisites for marketing fit together?

2 parties with unsatisfied needs → Desire + Ability → Communication → Something to Exchange

How does Mayo Clinic use marketing beyond directly advertising healthcare services ?

It publishes free health education content online to build trust

According to the Mayo Clinic example, what can effective healthcare marketing turn strangers into?

Strangers → Patients → Lifelong advocates

What type of healthcare organizations use marketing?

• Hospitals

• Clinics

• Insurers

• Pharmaceutical Companies

How can Mayo Clinic’s free health education content eventually help create patients and advocates

Educational content → Builds trust → Strangers become patients → patients can become lifelong advocates

What are the four P’s of the marketing mix?

• Product

• Price

• Place

• Promotion

What does Product mean in the healthcare marketing mix?

The service or care offering provided to patients

Why can a healthcare service be considered a Product in the marketing mix?

The service or care offering provided to patients

Why can a healthcare service be considered a Product in the marketing mix?

Because Product refers to what is being offered, which can be a service rather than a physical item

Which P of the healthcare marketing mix includes cost, billing, and insurance?

Price

What does Price mean in the healthcare marketing mix?

Cost, Billing, and Insurance associated with healthcare

Which P of the healthcare marketing mix does a dental group’s use of sliding scale fees represent?

Price

What does Place mean in the healthcare marketing mix?

Access and Distribution of healthcare services

Why does expanding CVS MinuteClinics into Target stores represent Place in the marketing mix?

The new locations improve access and distribution by reducing travel barries

What does promotion mean in the healthcare marketing mix?

Communication and Outreach

Which P of the healthcare marketing mix includes social media campaigns and free health screenings used to raise community awareness?

Promotion

What question can you ask to distinguish each of the four P’s of healthcare marketing?

• Product= WHAT is offered?

• Price=HOW MUCH/how is it paid for?

• Place=WHERE/HOW is it accessed?

• Promotion=HOW do people hear about it?

A hospital launches a new telehealth urgent care service. Which P of the marketing mix does the new healthcare service represent?

Product, because it is the service being offered

A healthcare organization opens clinics in more convenient locations to reduce patients’ travel barriers. Which P of the marketing mix does this represent?

Place, because it improves access and distribution

A healthcare organization uses social media campaigns to increase community awareness. Which P of the marketing mix does this represent?

Promotion, because it involves communication and outreach

What is a need in healthcare?

A deficiency requiring relief, such as a medical condition requiring clinical intervention

What does clinical intervention mean when discussing a healthcare need?

Medical action or treatment used to address a patient’s condition

What primarily drives treatment decisions for a patient's healthcare needs?

Clinical necessity

Why is emergency surgery for a patient with appendicitis considered a healthcare need?

The patient's medical condition requires clinical intervention.

Why are insulin and blood sugar monitoring for a patient with diabetes considered healthcare needs?

They are required because of the patient’s medical condition

What is a want in healthcare?

A patient desire that is not always medically necessary but can affect satisfaction and retention

Why is a patient’s preference for a private room with a window view considered a healthcare want?

It is a desire rather than a medical necessity

According to the slide, is the same-day appointment availability a healthcare need or want?

A want

What is the main difference between a healthcare need and a healthcare want?

• A need is based on clinical necessity

• Want is based on a patient desire

How do patient ’ wants contribute to a healthcare organization’s competitive advantage ?

Patient wants shape the patient experience, which can affect satisfaction and retention

Connection card: How do healthcare needs and wants affect different aspects of healthcare?

• Needs → clinical necessity → treatment decisions

• Wants → patient experience→ satisfaction & retention → competitive advantage

What six healthcare groups on the slide have different needs and wants or are the customers in healthcare?

• Patients

• Physicians

• Payers (Insurers)

• Employers

• Community

• Regulators

What role do patients have in healthcare?

Patients are the primary recipients of care

What do patients need and want from healthcare?

Patients need effective treatment and want compassion, convenience, and communication

What role do physicians have as a healthcare stakeholder on the slide?

Physicians are key referral sources

What do physicians need and want from healthcare organizations?

Physicians need evidence-based protocols and want seamless hospital partnerships and support

What role to payers (insurers) have in healthcare?

Payers control reimbursements

What do payers (insurers) need and want from healthcare?

Payers need cost efficiency and outcomes data and want value-based care models

What role do employers have in healthcare coverage?

Employers purchase group coverage

What do employers need and want from healthcare?

Employers need a healthy workforce and want affordable premiums and wellness programs

Who does the community represent in healthcare?

The broader public

What does the community need and want from healthcare?

The community needs access to preventive care and wants healthy neighborhoods and accountable providers.

Who are the regulators represented on the healthcare stakeholder slide?

Government and accreditors

What do healthcare regulators need and want?

Regulators need compliance and quality standards and want transparent reporting.

Connection card: What main concern can help you distinguish the six healthcare groups on the slide?

Patients → care
Physicians → clinical evidence
Payers → costs & outcomes
Employers → workforce
Community → access
Regulators → standards

Which healthcare group would be most concerned with cost efficiency and outcomes data?

Payers (insurers)

Which healthcare group would be most concerned with access to preventive care?

The community

Which healthcare group would be most concerned with compliance and quality standards?

Regulators

How does the healthcare stakeholder slide build on the difference between needs and wants?

Each healthcare group has its own needs and wants based on its role in the healthcare system.

What are the four eras in the evolution of healthcare marketing, in chronological order?

Production Era → Sales Era → Marketing Era → Marketing Culture

When did the Production Era of healthcare marketing occur?

Pre-1950s

What was the main mindset of the Production Era in healthcare marketing?

“If we build it, they will come.”

What did hospitals focus on during the Production Era of healthcare marketing?

Adding beds and services, rather than focusing on patients' experience or preferences.

When did the Sales Era of healthcare marketing occur?

1950s–70s.

What was the main focus of the Sales Era in healthcare marketing?

Hospitals advertised services to fill beds.

How was marketing viewed during the Sales Era of healthcare marketing?

Marketing was viewed mainly as promotion.

During the Sales Era of healthcare marketing, what was prioritized over patient needs?

Volume goals.

When did the Marketing Era of healthcare marketing occur?

1980s–90s.

What became important during the Marketing Era of healthcare marketing?

Patient satisfaction

What three marketing practices emerged during the 1980s–90s Marketing Era?

Market research

Segmentation

Competitive positioning

What does segmentation mean in the Marketing Era of healthcare?

Dividing the market into different groups.

What does competitive positioning mean in healthcare marketing?

Determining how a healthcare organization can stand out compared with competitors.

When did the Marketing Culture era in healthcare begin?

2000s–Today.

What defines the Marketing Culture era in healthcare?

Marketing is integrated across the whole organization.

What four characteristics describe healthcare organizations during the Marketing Culture era?

• Customer-focused

• Competitor-aware

• Long-term

• Data-driven.

What two healthcare changes does the slide say reshaped strategy during the Marketing Culture era?

ACA and ACOs

How did the focus of healthcare marketing evolve from the Production Era to today's Marketing Culture?

Producing services → promoting services → understanding patients/markets → integrating marketing across the organization.

Which healthcare marketing era is associated with each major recognition clue?

• “Build it and they will come”

• Advertising to fill beds

• Patient satisfaction + market research

• Organization-wide + data-driven marketing

• “Build it and they will come” → Production Era

• Advertising to fill beds → Sales Era

• Patient satisfaction + market research → Marketing Era

• Organization-wide + data-driven marketing → Marketing Culture

What is the main difference between primary and secondary stakeholders in healthcare marketing?

Primary stakeholders have continuous, direct interaction with the organization, while secondary stakeholders influence it without direct transactions.

How do primary stakeholders interact with a healthcare organization?

Through continuous, direct interaction.

What are examples of primary stakeholders in healthcare marketing?

Patients, physicians, nurses, and payers.

How can primary stakeholder satisfaction affect a healthcare organization?

It can directly affect the organization's financial performance.

Why must primary stakeholders be included in healthcare marketing planning?

Their satisfaction directly impacts financial performance.

How do secondary stakeholders interact with a healthcare organization?

They influence the organization but do not engage in direct transactions.

What are examples of secondary stakeholders in healthcare marketing?

Media, regulators, community groups, and legislators.

What two things can secondary stakeholders shape for a healthcare organization?

Public perception and the policy environment

Why must secondary stakeholders be considered in healthcare strategic planning?

They can influence the organization, public perception, and policy environment even without direct transactions.

How can you distinguish primary from secondary stakeholders in healthcare marketing?

Primary → direct, continuous interaction

Secondary → influence without direct transactions

Are secondary stakeholders less important simply because they do not directly transact with a healthcare organization?

No. They can still shape public perception and the policy environment and cannot be ignored in strategic planning.

What did the COVID-19 example demonstrate about stakeholder communication in healthcare?

Hospitals may need to adjust messaging for multiple stakeholder groups simultaneously, such as patients, staff, media, and government.

What is the main difference between market-driven and non-market-driven healthcare planning?

Market-driven planning starts externally with market/community needs, while non-market-driven planning starts internally with management's ideas.

Where does the planning process begin in a non-market-driven healthcare approach?

Internally within the organization.

What is the flow of a non-market-driven healthcare planning approach?

Internal idea → Service design → Seek market.

How does management choose services in a non-market-driven healthcare approach?

Management decides what services to offer first and then looks for customers.

What is the main risk of a non-market-driven healthcare planning approach?

Misalignment between the services offered and actual patient demand.

Why is building a robotic surgery wing based on prestige an example of non-market-driven healthcare planning?

The service is chosen without first researching whether the community needs or can access it.

Where does the planning process begin in a market-driven healthcare approach?

Externally with research into community needs.

What is the flow of a market-driven healthcare planning approach?

Market research → Identify need → Design service.

Which healthcare planning approach is preferred on the slide?

Market-driven planning.

Why is creating a bilingual mental health clinic after surveying community residents an example of market-driven planning?

Research identified a community need before the service was designed.