To complete this discussion question, read Case Study 15.2: Marketing Planning for a New Program. Demonstrate your understanding of the situation as well as the marketing planning process by answering questions 1 through 5 at the bottom of the page.

 

It must meet 150 to 200 words and must cite any resources used.

CASE STUDY 15.2

Marketing Planning for a New Program

SouthCoast Institute, a rehabilitation hospital, perceived an opportunity to expand its outpatient capabilities. Among SouthCoast’s options was to develop an aquatherapy program that not only would supplement its existing inpatient services but also would allow it to serve a wider range of customers on an outpatient basis. The hospital’s staff recognized the need to engage in the marketing planning process to successfully design, launch, and evaluate this new service.

Step 1

In organizing the process (identifying the key stakeholders, decision makers, and resources necessary), the planners had an advantage in that the development of an aquatherapy program was a proposal derived from SouthCoast’s major strategic planning initiative. Many of the organizational issues had been addressed within the context of the strategic plan. A team was already in place, and a planning framework had previously been established.

 

Step 2

The planning team stated the following assumptions about the aqua- therapy program and its relationship to the market:

•             Adequate demand for aquatherapy services was present within the service area.

•             SouthCoast had a captive audience for this service—its existing rehabilitation patients.

•             Aquatherapy was generally unknown to the public and medical community.

•             Considerable outreach was required to educate the public and raise awareness and acceptance of aquatherapy.

•             If properly informed, health insurance companies would be willing to reimburse aquatherapy services.

•             There was potential for significant spillover benefits from the introduction of the aquatherapy program (e.g., provide trainers for school swim teams and thereby attract student athletes needing aquatherapy).

 

Step 3

The team members collected background data on existing aquatherapy services in other markets. In addition, they assessed the availability of internal resources and the degree to which the general public and the external medical community were open to the idea of a new program. They also developed a general idea of what was involved in operating an aquatherapy program.

 

Step 4

The team performed a preliminary internal audit. Data were compiled on the types of rehabilitation procedures and services offered by most internal programs, the types of patients typically served, the reimbursement prospects, and so forth. The analysis examined the existing staff’s ability to take on more responsibility, the need to add staff and to train them in aquatherapy, the available pool and the need for other equipment, and the general attitude of the staff regarding the proposed aquatherapy program.

The team also conducted an external audit. It identified potential referral sources and interviewed them to gauge their interest in the program. The team contacted local health plans to ascertain their willingness to reimburse for the service. Finally, the team conducted a competitive analysis and learned that no medically supported aquatherapy program was being offered in the community.

 

Step 5

On the basis of the information gathered through the initial research and the internal and external audits, the team settled on an educational strategy that would push information out to all relevant parties. Marketing efforts would focus on increasing awareness of and support for the aquatherapy program. At the same time, the strategy would emphasize the fact that SouthCoast was the only organization offering this therapy within the service area.

 

Step 6

With background data indicating significant potential for a successful and profitable service, the team set a goal of establishing South- Coast’s aquatherapy service as the premier aquatherapy program in the region.

 

Steps 7 and 8

In support of this goal, the team established and prioritized the following objectives:

•             Create and implement a comprehensive internal marketing effort for the aquatherapy program within six months.

•             Directly contact all of SouthCoast’s affiliates and potential external referrers within six months.

•             Recruit and train a full-time marketing liaison for the aquatherapy campaign within six months.

•             Identify and contact all community groups that could benefit from the aquatherapy pool within six months.

•             Integrate aquatherapy into SouthCoast’s sports medicine and occupational medicine programs within one year.

 

Step 9

The team specified the following actions needed to accomplish these objectives:

•             Create promotional material to distribute to potential referral agents.

•             Set up meetings with relevant internal parties (including medical staff) to explain the program.

•             Identify an appropriate person to train as a marketing liaison with the community.

•             Identify appropriate external targets for promotional and educational activities.

 

Step 10

The implementation matrix identified the required resources, the required financial commitment, the parties responsible for the tasks, and timelines for all activities. In keeping with the educational/ relationship-building approach, the marketing mix consisted of low-key promotional activities, not high-profile media advertising. For internal audiences, the marketing plan included a newsletter, articles in other internal publications, flyers in employees’ pay envelopes, posters, information sessions for staff and referring physicians, and a DVD explaining to health professionals and insurance plans the purpose of the program. For external audiences, the marketing plan included a newsletter, press releases (and other media coverage as appropriate), limited print advertising, a DVD, exhibits (e.g., at schools and health fairs), and public presentations (e.g., for support groups, medical societies, voluntary health associations). A dedicated page on the SouthCoast website was created to introduce the program and its attributes. The web page featured videos illustrating the therapy process and offering testimonials from successfully rehabilitated patients.

 

Step 11

The team delineated an evaluation procedure to assess the progress made. Because it was a start-up operation, service utilization was easy to track. The plan also arranged for a pretest and posttest to be administered to referral agents to determine the extent to which they were made aware of the program (i.e., whether they knew enough about the program to feel confident about referring their patients to it). Satisfaction surveys were developed for patients and referrers. The extent to which the program generated secondary benefits in the community (e.g., with community groups, schools, swim clubs) was also tracked and periodically reported.

 

Case Study Discussion Questions

1. How did broad trends in healthcare marketing influence SouthCoast’s new service development?

2. Why did SouthCoast need to assess the public’s openness to the idea of an aquatherapy program during the initial information gathering?

3. What factors influenced the team’s choice of strategic approach? Were there other strategies the team might have considered? 4. How did SouthCoast’s promotional techniques reflect its overall

strategy? 5. In what ways could the success of this marketing initiative be

 

measured?

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