During the last board meeting of Selfless Health, Sam Snide, the chair of the board finance committee, challenged the need for a marketing department. According to Sam, the flagship academic medical center has a strong enough reputation to attract patients. He further stated that advertising by members of a profession is unseemly.
The system CEO has asked you to prepare a memo to the board outlining what role (beyond advertising) strategic marketing plays in a health system's operations. Include considerations such aspects as corporate culture, population health, brand identity, service recognition, marketplace competition, technologies, other external marketplace factors, stakeholders impact, marketplace threats/opportunities, internal weaknesses/strengths, and/or organizational structure like the mission, vision, and values. Support your observations throughout your response with relevant citations and references.
Full Answer Section
- Improve population health. Strategic marketing can be used to promote healthy lifestyles and preventive care. For example, a health system might develop marketing campaigns to encourage people to get vaccinated, eat healthy foods, and exercise regularly.
- Increase service recognition. Strategic marketing can help to increase awareness of the health system's services and programs. This can lead to increased patient volumes and revenue.
- Respond to marketplace competition. The healthcare marketplace is becoming increasingly competitive. Strategic marketing can help health systems to differentiate themselves from their competitors and attract patients.
- Adopt new technologies. New technologies are constantly emerging in the healthcare industry. Strategic marketing can help health systems to identify and adopt new technologies that can improve the quality and efficiency of their care.
- Respond to other external marketplace factors. Strategic marketing can help health systems to respond to other external marketplace factors, such as changes in government regulations and payer reimbursement.
- Manage stakeholder relationships. Strategic marketing can help health systems to manage their relationships with key stakeholders, such as patients, physicians, and payers.
- Identify and capitalize on marketplace threats and opportunities. Strategic marketing can help health systems to identify and capitalize on marketplace threats and opportunities. For example, a health system might use strategic marketing to develop new services that meet the needs of a growing population of aging adults.
- Assess and leverage internal strengths and weaknesses. Strategic marketing can help health systems to assess and leverage their internal strengths and weaknesses. For example, a health system might use strategic marketing to improve its brand image if it is perceived as being expensive or inaccessible.
- Align with organizational structure, mission, vision, and values. Strategic marketing should be aligned with the health system's organizational structure, mission, vision, and values. For example, a health system that values patient-centered care might use strategic marketing to develop and promote programs that make it easier for patients to schedule appointments and access their medical records.
In addition to the above benefits, strategic marketing can also play an important role in advancing health equity. By developing and implementing marketing strategies that are tailored to the needs of underserved populations, health systems can help to reduce disparities in healthcare access and outcomes.
Citations and References
- American Hospital Association. (2021). The role of marketing in healthcare.
- American Marketing Association. (2023). What is marketing?
- Centers for Disease Control and Prevention. (2023). Social determinants of health.
- Kaiser Family Foundation. (2023). Health insurance coverage.
- National Institutes of Health. (2023). Health equity.
Sample Answer
MEMORANDUM
To: Board of Directors From: [Your Name] Date: August 4, 2023 Subject: Role of Strategic Marketing in a Health System's Operations
In response to Sam Snide's challenge to the need for a marketing department, I am writing to outline the role that strategic marketing plays in a health system's operations, beyond advertising.
Strategic marketing is a process of developing and implementing marketing strategies to achieve organizational goals. It is essential for health systems of all sizes, as it can help to:
- Create and maintain a strong brand identity. A strong brand identity is essential for attracting and retaining patients. Strategic marketing can help to develop and communicate a brand that is consistent with the health system's mission, vision, and values.