Healthcare Marketing Essay

Introduction

When it comes to healthcare marketing there are certain restrictions that have to be followed under U.S. law. For example, the FDA has rules for companies that want to market pharmaceuticals directly to consumers. Truth-in-advertising laws have to be complied with. Stark Law rules and HIPAA rules both determine the extent to which social media platforms can be used by medical companies, with respect to doctors gaining referrals and the potential for patient information to be spread publicly in violation of the privacy rights of patients (Lane, 2019). Moreover, aside from issues of compliance, the nature of marketing has changed to such an extent within the last few decades that much of advertising itself has migrated from old media to new media to focus on targeted consumers. The Digital Age has ushered in a new era of communication: more and more people turn to the Internet for information and communication purposes; more and more use social media to disseminate ideas about news and what brands to trust. As Hawn (2009) points out, social media itself is changing the nature of health care by altering where patients go for information about health and healing. In this new complex landscape of regulations and changing technology, healthcare marketing faces new challenges. Fortunately, old formulas can still apply. This paper will describe the strategies and tools that can still be effective in healthcare marketing while allowing marketers to navigate the rules and laws that can lead one into pitfalls if not careful.

Ethics, Rules and Regulations

Direct to consumer marketing in the healthcare industry comes with its own risks and rewards. For one, there are many critics of direct to consumer marketing who feel that the healthcare companies take advantage of consumers’ ignorance by appealing and directly advertising to them. This is especially the case with TV spots, which tend to target older persons (younger people tend to use more Internet-based sources for entertainment). Older consumers do not understand the subtle nuances of particular treatments and if they see an advertisement for a particular medicine on TV they may inquire about it and put pressure on their doctor to prescribe it. These critics feel it is also a way to get the public more used to the idea of a new drug coming to market that is advertised as something that will solve their ailments (while the potential side effects and risks are quickly communicated in a fast-paced subdued tone that one must strain one’s ears to hear and understand). As Arnold and Oakley (2013) point out, healthcare companies have to be cognizant that they can do great harm or great good—and so they must market responsibly. Unfortunately, many drug companies in the U.S. do not heed this advice and one of the examples given by Arnold and Oakley (2013) is that of a drug company advertising a pill for erectile dysfunction (ED) during a sports game on TV, where families and likely children may be watching. It is not a topic that generally comes up in polite conversation, so it can seem uncouth to many to see an advertisement addressing ED during a game the family may be watching. It can cause discomfort and embarrassment for the audience, and healthcare marketers should strive to avoid embarrassing anyone if possible.

There is also the problem of “manipulating consumers by using low-cognitive elaboration persuasive techniques rather than engaging in genuine education” (Arnold & Oakley, 2013, p. 507). This means that healthcare companies have a reputation for preying on uneducated consumers and patients who do not know how to make careful assessments and evaluations of the information they are being presented on the screen. They see data coming at them in between an advertisement for Pepsi and one for Coke, and they assume the healthcare company advertising a pill for their ailment is also just as legitimate as the major companies that precede and follower their commercial. They are not educated doctors and do not understand what is beneficial for them and what should be avoided. And because the healthcare industry does not mind, in general, overprescribing and overtreating patients, most doctors are not going to resist a patient’s inquiry for a new drug—especially if the doctor is already getting kickbacks from the drug maker (Lichtenfeld, 2011). In spite of the Affordable Care Act’s aim to promote prevention, the industry still aims to treat patients as much as possible as that is where the money is to be made.

Thus, the issues that critics take up with direct to consumer healthcare marketing are significant and must be considered by the healthcare company, as the company’s brand and reputation may be at risk if the company’s marketing tactics come under fire from critics. This is especially true in the social media age, where one complaint can trigger a landslide of vitriolic abuse and create a public relations nightmare for the company in the process. Therefore, it is better to be safe than sorry and to avoid controversial methods of marketing.

The rules and regulations of marketing also must be complied with, which means no publicizing of patient information on social media platforms if one is a doctor or nurse trying to obtain referrals or connect with patients. It means no exaggerating the effects of a particular product or service beyond what has been verified by laboratory tests that have been verified. It means not taking advantage of consumers’ ignorance: companies that sell drugs must make known the name of the generic drug and what the potential risks an changes in the person’s behavior might be if the drug is taken (Lane, 2019).

The Arrival of the Social Media Influencer

With the younger generations now turning to social media influencers for their information, healthcare marketers also need to take stock of how the next generations will be absorbing information and how they will be obtaining data that will influence their consumption choices.

Dolliver (2009) notes that the…

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…new market, the healthcare company will want to use this strategy simply because it is an effective way to introduce the company’s brand, products and services to the population.

Differentiated marketing, also known as multi-segment targeting, is a helpful marketing strategy that the healthcare company can use to target select demographics all at once and design marketing campaigns for each of those specific demographics (Blythe, 2009). For instance, a healthcare marketer might design a marketing campaign that appeals to elderly persons and a separate campaign that advertises child health services, and a third that is designed to target the women’s health sector.

Concentrated targeting is a technique a healthcare commpany’s marketing team may use if there is a special niche market that the company wants to isolate and appeal to (Hartley & Rudelius, 2001). An example of this approach would be a healthcare company that is attempting to reach a population that is addicted to opioids: the facility could advertise drug counseling services. Customized marketing can be useful when the company is looking to obtain a long-term health contract. These are usually aimed towards other big organizations like government agencies.

Marketing Strategy

Generally speaking, the marketing strategy should follow the basic rules of marketing in the digital age, which consist of the following:

1) leverage social media and interact with consumers on social media platforms like Twitter, Facebook, YouTube and Instagram;

2) use consistent branding to make sure the brand is well-known and familiar;

3) have a website that is easy to use, informative, intuitive, and friendly;

4) use marketing emails to keep customers informed and to raise health literacy in the community, such as the need for screenings for breast or prostate cancer.

Healthcare content marketing is a great method of attracting healthcare consumers, as it focuses on spreading valuable information to the consumer. By educating consumers about their health, customers can come to know what is important and why they should take care of their bodies and minds. They feel grateful to companies that adopt this approach because the view it almost like a public service announcement rather than as a marketing pitch, though that is what it is.

Conclusion

The objectives of a healthcare company’s marketing strategy should be to promote new health services and products whenever they are ready to be introduced to the public. The 4 P’s should be considered, but so too should the ethics, rules and regulations of healthcare marketing. Companies want to always be aware that their brand is on the line. Reputations should be protected and consumers should never be violated or offended by a marketer’s message. Marketing is about growing the company’s brand as well as its digital presence (now that the Digital Age is here). This means using a website and having a social media presence, developing lead generation when needed, identifying and targeting new customers and boosting consumer growth while simultaneously retaining existing customers, and enhancing brand loyalty.…