Module: Marketing as an Investment
Investing in Marketing
? When a marketing issue comes up, an administrator is likely to raise the question as to how much should be spent. Whether to spend a little or a lot should not be the question.The real question should focus on what the organization ultimately wants to accomplish (Thomas & Calhoun, 2007).
? Starting with the goal and working backward is a good rule of thumb in marketing. Stephen Covey (1989) calls this "beginning with the end in mind."
? Research all costs associated with the marketing plan. Considerations include literature, product upgrades, staffng, sales commissions, and so on.
Minimizing Financial Risks of Marketing
? Ultimately, the issue raised by the healthcare executive should not be how to minimize the cost. The real question should relate to how one can minimize the risk and maximize the opportunity. After all, the organization can always get more money, but it can never again beneft from a missed opportunity (Thomas & Calhoun, 2007).
? One possible consideration with regard to minimizing risk is whether to outsource marketing or to keep it in house. Depending on the organization, outsourcing to seasoned professionals may enhance the outcome of a marketing campaign.
Cost Research
? Consider personnel costs (salary and benefts) along with any recruiting and training costs and standard overhead costs associated with operating the department and supporting the staff.
? Telecommunication and IT costs must also be considered, as well as travel expenses and professional development costs-for example, dues and subscriptions (Thomas & Calhoun, 2007).
The Seven Deadly Sins of Healthcare Marketing
? Marketing a healthcare organization can be challenging-even painful-if one does not approach it with the right knowledge, tools, and guidance (Hirsch & Gandolf, n.d.).
? Healthcare marketing is an essential component of healthcare organizations worldwide. Part of a prudent marketing campaign is an awareness to avoid common mistakes. The following "seven deadly sins of healthcare marketing" should be avoided:
1. Spaghetti Marketing. This entails throwing strategies against a wall to see what will stick. A good marketing strategy is a well-planned, targeted strategy, not a guessing game. Options must be considered, implemented, and measured.
2. Analysis Paralysis. Actions, not analysis, attract the target market. While it is important to follow the preparation steps well, there is a time to take action.
3. Marketing Decisions by Committee. It is common for everyone to have an opinion about marketing. One should not let a lack of complete agreement stall out the marketing campaign.
4. Inadequate Training. This is an obvious component but is often overlooked. People must understand what they are selling. Ensure the organization's staff is prepared.
5. Treating Marketing as a Cost Center. Marketing is a revenue center, not a cost center. Suffcient budgeting is necessary to bring in additional revenue. Treat it as an investment, measuring its return.
6. Insuffcient Delegation. Marketing is a team approach. Managers must delegate in order to reach the target market effectively.
7. Inconsistency. A consistent message across the board of a marketing campaign is essential for successful execution of the plan. The target market must hear the same message repeatedly to have a strong effect. Inconsistency interferes with brand messaging (Hirsch & Gandolf, n.d.).