Southern Baptist Hospital (SBH) had long resisted the use of marketing, believing it was not an appropriate activity for a nonprofit organization. By the mid-1980s, however, the erosion of its market share due to growing competition forced SBH to adopt an aggressive marketing strategy. Its primary initiative was a campaign of television advertisements aimed to reinforce for the general public the image of SBH as a high-quality institution. Because the organization was starting its marketing activities from scratch, ad production and airtime costs were expensive. The television commercials were professionally produced and received critical acclaim from the advertising community. Following the public’s repeated exposure to these advertisements, a hospital executive requested information about the impact of the advertisements. The idea to study the campaign’s impact had not been considered earlier, and a belated evaluation effort was mounted to determine the extent to which the campaign had achieved the desired effect. Much to the consternation of SBH administrators, the evaluation found that the ads had had virtually no impact on the public’s already high perception of the institution, and no improvement in patient volumes, revenues, or market share could be attributed to the campaign. SBH administrators, committed to an expensive initiative, rationalized that the campaign had not aired long enough to generate the desired effect and invested even more money in the initiative.
After reviewing the above case, address the following points:
To what extent did SBH research the needs of its audience prior to developing a marketing strategy?
Does it appear that SBH has an overall marketing plan?
Does it appear that SBH had a significant grasp of the nature of marketing?
What are the implications of focusing marketing efforts on corporate image rather than the services the organization provides?
What are the implications of marketing to the general public rather than targeting specific segments of the market?
How much thought was given to measuring the effectiveness of the campaign going into the initiative?
Full Answer Section
Does it appear that SBH has an overall marketing plan?
It is unclear whether SBH had an overall marketing plan. The case states that SBH's primary initiative was a television advertising campaign. However, this is just one component of a marketing plan. A comprehensive marketing plan would also include other elements such as market research, target audience analysis, marketing goals, marketing strategies, and marketing tactics. The case does not mention any of these other elements, so it is possible that SBH did not have an overall marketing plan.
Does it appear that SBH had a significant grasp of the nature of marketing?
It appears that SBH did not have a significant grasp of the nature of marketing. Marketing is more than just advertising. It is a comprehensive process of understanding and meeting the needs of customers. SBH's focus on advertising suggests that the organization may have seen marketing as simply a way to promote its image to the general public. However, effective marketing requires a deeper understanding of customer needs and motivations.
What are the implications of focusing marketing efforts on corporate image rather than the services the organization provides?
Focusing marketing efforts on corporate image rather than the services the organization provides can have a number of negative implications. First, it can lead to customers being disappointed if they come to the organization expecting something that is not delivered. Second, it can make it difficult to differentiate the organization from its competitors. Finally, it can lead to a waste of marketing resources.
What are the implications of marketing to the general public rather than targeting specific segments of the market?
Marketing to the general public rather than targeting specific segments of the market can also have a number of negative implications. First, it can be less effective, as the marketing message may not be relevant to all members of the target audience. Second, it can be more expensive, as it requires the organization to reach a larger audience. Finally, it can lead to wasted marketing resources.
How much thought was given to measuring the effectiveness of the campaign going into the initiative?
It does not appear that much thought was given to measuring the effectiveness of the campaign going into the initiative. The case states that the idea to study the campaign's impact had not been considered earlier, and a belated evaluation effort was mounted to determine the extent to which the campaign had achieved the desired effect. This suggests that SBH did not have a clear plan for measuring the success of the campaign before it was launched.
Overall, the case of Southern Baptist Hospital highlights a number of common marketing mistakes. First, SBH did not adequately research the needs of its audience prior to developing a marketing strategy. Second, SBH focused on corporate image rather than the services it provides. Third, SBH marketed to the general public rather than targeting specific segments of the market. Finally, SBH did not give much thought to measuring the effectiveness of the campaign before it was launched.
These mistakes are all avoidable. By conducting thorough market research, developing a comprehensive marketing plan, and focusing on the needs of its target audience, SBH could have improved the effectiveness of its marketing campaign.
Sample Answer
It appears that SBH did not research the needs of its audience very well prior to developing a marketing strategy. The case states that SBH's primary initiative was a campaign of television advertisements aimed to reinforce for the general public the image of SBH as a high-quality institution. However, the evaluation found that the ads had had virtually no impact on the public's already high perception of the institution. This indicates that SBH may not have fully understood the needs of its target audience and what would motivate them to choose SBH over other hospitals.