Marketing Survival Course:  A Primer on How to Prepare and Compete in 2014 and Beyond February 9, 2012
GKV Background <ul><li>Celebrated our 30 th  Anniversary in November  </li></ul><ul><li>Headquartered near Baltimore’s Inn...
Select Clients
Deep Health Care & Insurance Experience
What We’ll Cover Today <ul><li>Is your Brand ready for prime time? </li></ul><ul><li>Are you ready for a new kind of membe...
Current Situation <ul><li>Lots of  UNCERTAINTY </li></ul><ul><li>Unpublished regulations </li></ul><ul><li>Lawsuits and th...
Is Your Brand Ready for Prime Time? Why You Need to Build an  Emotional Connection with Your  Prospects and Members
What Is a Brand? <ul><li>Lots of definitions . . . here’s a simple one: </li></ul><ul><li>Brand is the ultimate promise an...
Why Should You Care About the Brand?
Think of the Brand Like  a Personal Relationship <ul><li>People (at least most of us!) do not make  rational decisions abo...
Emotion Must Lead, Reason Must Follow <ul><li>That’s how you communicate with the human brain </li></ul><ul><li>Heart, the...
What Does This Mean for  Medicaid Marketing?  <ul><li>The paradigm has shifted from one way communication to the consumer....
What You Can Do? <ul><li>Nothing. . . just do what you’ve always done </li></ul><ul><li>Nobody can rely on the same unchan...
What You Can Do? <ul><li>If you’re a big company. . . Sit back and relax. . .you already have a big brand name. . .and an ...
What You Can Do? <ul><li>Find a better way to invest your precious marketing dollars </li></ul><ul><ul><li>Connect emotion...
Will anyone be able to tell if you put your logo on someone else’s ad  or vice versa?
Are You Ready for a  New Kind of Member?
Opening the Flood Gates <ul><li>What is the most accurate number? </li></ul><ul><ul><li>8.5 million </li></ul></ul><ul><ul...
So Who are the  Prospective New Members?
Expanded Eligibility <ul><li>ACA mandates a floor of 133% FPL ($24,644 for family of 3 in 2011) </li></ul><ul><ul><li>138%...
Who Are These Folks? <ul><li>Individuals 19-64 w/o children who are not eligible for Medicare </li></ul><ul><li>Low  to mi...
Long story short…you will need to market to a much broader audience than before.
Do you Have the Right Marketing Mix to Reach the New Members?
The Current Medicaid Member <ul><li>Demo:  W18-34 , Single, HHI Less than $10,000, 1 or more kids </li></ul><ul><li>Demo: ...
Current Member Lifestyles W18-34, Single, HHI <$10k, 1 or more kids W18-34, Single, HHI <$50k, 1 or more kids Painting/Dra...
The Newly Eligible Medicaid Member <ul><li>The new Medicaid Member Profile </li></ul><ul><ul><li>Males under 30, married c...
New Member Lifestyles Source: MRI  Doublebase M18-34, Single, Some College / Bachelors, HHI <$30k M35-49, Single, Some Col...
Importance of Building an Effective, Integrated Marketing Program <ul><li>Expanding Demographic </li></ul><ul><ul><li>Must...
Importance of Building an Effective, Integrated Marketing Program <ul><li>Traditional </li></ul><ul><ul><li>TV, Radio, New...
How Do You Find the Right  Agency Partner? <ul><li>Look for. . . </li></ul><ul><ul><li>An agency with a long track record ...
A Few Things to Think About on February 13th <ul><li>Is your current brand positioning/messaging appropriate for 2014? </l...
Thank you! www.gkv.com
Upcoming SlideShare
Loading in …5
×

Medicaid Innovations Forum GKV Marketing Presentation

662 views

Published on

This presentation focused on how states and providers of Medicaid programs can establish a strong brand positioning and integrated marketing program prior to the implementation of the 2014 Medicaid expansion that will take place as a result of the Affordable Care Act (ACA).

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
662
On SlideShare
0
From Embeds
0
Number of Embeds
117
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Good Morning: We are thrilled to be here today to talk about how Medicaid plans can be getting ready now to prepare for the onslaught of new members beginning in 2014. We are especially excited to be here – in Sunny Orlando – as opposed to icy Washington, D.C. for those of you who attended last year’s Forum.
  • As you are all well aware, there are a tremendous amount of changes taking place as part of the implementation of ACA some of which should be resolved this year, others of which will take years – possibly even beyond 2014 – to sort out. We are going to focus our comments today on the marketing and branding implications of the ACA implementation. The things that individual Medicaid plans can and should be doing right now to get ready for the coming onslaught of new members beginning in 2014.
  • We have read through many of the reports and forecasts that various organizations, including CMS, are releasing in which they attempt to estimate the number of prospective new Medicaid members beginning in 2014. The estimates are all over the map as you can see here? They range anywhere from a low of 8.5 million new members to a high of 22.8 million. Quite a range. The federal government has pretty consistently used the 16 million member number…But only time will tell. I know from an operational standpoint, these numbers are keeping most of you up at night…but from a marketing and branding perspective, the number is less important to us than who the new prospective Medicaid member is as a person. The most important thing for us is figuring out who they are, what they like to do, how they consume media and what are best, most cost effective and efficient ways to deliver your messages to them.
  • Ok, so who are the prospective new members we need to reach? From a marketing perspective, one of the first things we do is look at them from an income standpoint, which is prudent since that is how their eligibility is determined. ACA mandates an eligibility floor of 133% of the Federal Poverty Level. Like most things about this new law, the numbers are all over the map. There is a salary adjustment provision of 5% that could take the number to 138% FPL. Additionally, the Maintenance of Existing benefits (MOE) provision mandates that states maintain their current level of coverage for a specified period of time, even if it is “richer” than the new federal requirement. In fact there are currently 26 states that provide Medicaid coverage to families with children at or above the 250% FPL level and 18 states that provide it at or above 300%. So that takes the possible income range from $24,644 for 133% FPL to $55,590 for 300% FPL for a family of 3 in 2011. That’s quite a spread that increases the type of member you will be targeting pretty significantly – it effectively takes us from providing Medicaid coverage for the very poor to covering members that are in the lower-middle to middle class in our communities.
  • So who are these new Medicaid members? They could be any one of these people. They could be newly unemployed. Or self employed and struggling to make ends meet. They could make anywhere from a few thousand dollars a year to $55,000. They could be relatively healthy young men, with college degrees and no health insurance. They could have applied for Medicaid before and been turned down for one reason or another or they may never have considered Medicaid an option before…
  • You will need to market to a much broader target audience than before in order to attract these new members. But you must keep in mind that you can’t totally abandon the “original” Medicaid members, the members you currently serve while you go after the new target audiences. It will be critical to strike a balance between marketing to the current Medicaid beneficiaries and to the newly eligible members in 2014.
  • The next question you need to ask yourself is “Do you have the right marketing mix to reach the new members?”
  • Here are 2 examples of Media Usage Habit Research for 2 Medicaid Plans that GKV currently works with – 1 in Maryland and 1 in Virginia. As you can see, our current target audience in both cases is made up largely of single women 18-34 years old with at least 1 child in the household. The only real difference between these two target audiences – other than geographic region – is the income. Once we have this data, we need to marry the results with the reality of marketing budgets. As you see here in Baltimore and Washington, our target audience is a heavy user of TV which in many cases could be cost prohibitive for Medicaid plans based on marketing budgets. We use this research helps us develop a strategy focused on the most effective way to reach the target audience. But now with the target audience getting much broader, we need new information.
  • All that being said, How do you find the right agency partner to help position your brand and plan to make the most of this historic opportunity? [GO THROUGH EACH BULLET]
  • Medicaid Innovations Forum GKV Marketing Presentation

    1. 1. Marketing Survival Course: A Primer on How to Prepare and Compete in 2014 and Beyond February 9, 2012
    2. 2. GKV Background <ul><li>Celebrated our 30 th Anniversary in November </li></ul><ul><li>Headquartered near Baltimore’s Inner Harbor </li></ul><ul><li>Staff of 81 full time marketing professionals </li></ul><ul><li>Fully integrated communications firm offering multiple disciplines under one roof </li></ul>
    3. 3. Select Clients
    4. 4. Deep Health Care & Insurance Experience
    5. 5. What We’ll Cover Today <ul><li>Is your Brand ready for prime time? </li></ul><ul><li>Are you ready for a new kind of member? </li></ul><ul><li>Do you have the right marketing mix to reach the new member? </li></ul><ul><li>How do you find the right agency partner to capitalize on this historic opportunity? </li></ul>
    6. 6. Current Situation <ul><li>Lots of UNCERTAINTY </li></ul><ul><li>Unpublished regulations </li></ul><ul><li>Lawsuits and the Supreme Court Review </li></ul><ul><li>Ongoing state budget cuts </li></ul><ul><li>Presidential Politics </li></ul>
    7. 7. Is Your Brand Ready for Prime Time? Why You Need to Build an Emotional Connection with Your Prospects and Members
    8. 8. What Is a Brand? <ul><li>Lots of definitions . . . here’s a simple one: </li></ul><ul><li>Brand is the ultimate promise an organization makes to its customers, employees and shareholders </li></ul>
    9. 9. Why Should You Care About the Brand?
    10. 10. Think of the Brand Like a Personal Relationship <ul><li>People (at least most of us!) do not make rational decisions about relationships </li></ul><ul><ul><li>We are attracted to each other emotionally. . . and then maybe logically </li></ul></ul><ul><li>The same holds true for many purchase decisions </li></ul><ul><ul><li>We react instinctively and impulsively. . . and then purchase decisions are rationalized </li></ul></ul>
    11. 11. Emotion Must Lead, Reason Must Follow <ul><li>That’s how you communicate with the human brain </li></ul><ul><li>Heart, then facts . . . </li></ul><ul><li>That’s why a brand is so critical in creating </li></ul><ul><li>effective communications </li></ul>
    12. 12. What Does This Mean for Medicaid Marketing? <ul><li>The paradigm has shifted from one way communication to the consumer. . . to creating a dialogue. . . a conversation </li></ul><ul><li>Do you start a conversation with someone </li></ul><ul><li>you just met with a fact? </li></ul>
    13. 13. What You Can Do? <ul><li>Nothing. . . just do what you’ve always done </li></ul><ul><li>Nobody can rely on the same unchanging beliefs and models of thought. Yet, we do see much of that in the Insurance category </li></ul>
    14. 14. What You Can Do? <ul><li>If you’re a big company. . . Sit back and relax. . .you already have a big brand name. . .and an unlimited budget! </li></ul><ul><li>The big companies have less need to change the game. They will get bigger because in a parity environment and absent a failure to meet basic expectations, those companies can buy name recognition and thrive </li></ul><ul><li>Smaller companies cannot rely on the same conventional thinking, and chase low, incremental growth while overpaying to achieve it </li></ul>
    15. 15. What You Can Do? <ul><li>Find a better way to invest your precious marketing dollars </li></ul><ul><ul><li>Connect emotionally with your prospects and members </li></ul></ul><ul><ul><li>Develop your brand positioning and make certain it is communicated effectively in all of your marketing </li></ul></ul><ul><ul><li>Leverage your marketing dollars year-over-year </li></ul></ul><ul><ul><li>Build a integrated marketing campaign based upon your target audience </li></ul></ul><ul><li>If there’s no difference in your advertising, are you building long term value in the brand? </li></ul>
    16. 16. Will anyone be able to tell if you put your logo on someone else’s ad or vice versa?
    17. 17. Are You Ready for a New Kind of Member?
    18. 18. Opening the Flood Gates <ul><li>What is the most accurate number? </li></ul><ul><ul><li>8.5 million </li></ul></ul><ul><ul><li>16 million </li></ul></ul><ul><ul><li>22.8 million </li></ul></ul><ul><li>From a marketing and branding perspective, it doesn’t really matter </li></ul><ul><ul><li>You know they are coming, you just need to try to figure out who the new members are and how you reach them </li></ul></ul>
    19. 19. So Who are the Prospective New Members?
    20. 20. Expanded Eligibility <ul><li>ACA mandates a floor of 133% FPL ($24,644 for family of 3 in 2011) </li></ul><ul><ul><li>138% FPL in some cases </li></ul></ul><ul><ul><li>MOE – No reduction in Existing Coverage </li></ul></ul><ul><ul><ul><li>26 states currently cover children in families at or above 250% FPL ($46,325 for family of 3 in 2011) </li></ul></ul></ul><ul><ul><ul><li>18 states currently cover uninsured children at or above 300% FPL ($55,590 for family of 3 in 2011) </li></ul></ul></ul><ul><li>Expansion moves us into higher income brackets than “traditional” Medicaid members </li></ul><ul><ul><li>Expanding from the very poor to the </li></ul></ul><ul><ul><li>lower-middle to middle class </li></ul></ul>Source: 2011 Poverty Guidelines. CMSO/DEHPG/DEEO
    21. 21. Who Are These Folks? <ul><li>Individuals 19-64 w/o children who are not eligible for Medicare </li></ul><ul><li>Low to middle income adults </li></ul><ul><li>Self-employed </li></ul><ul><li>Pregnant woman </li></ul><ul><li>Children under 19 </li></ul><ul><li>Singles </li></ul><ul><li>Parents/Caregivers </li></ul><ul><li>Disabled/Blind </li></ul>
    22. 22. Long story short…you will need to market to a much broader audience than before.
    23. 23. Do you Have the Right Marketing Mix to Reach the New Members?
    24. 24. The Current Medicaid Member <ul><li>Demo: W18-34 , Single, HHI Less than $10,000, 1 or more kids </li></ul><ul><li>Demo: W18-34 , Single, HHI Less than $50,000, 1 or more kids </li></ul>Source: MRI Doublebase Source: MRI Doublebase Medium Usage Television Heavy Radio Heavy Magazines Heavy Newspapers Light OOH Light Internet Light Mobile Heavy Medium Usage Television Average Radio Above Average Magazines Above Average Newspapers Light OOH Light Internet Average Mobile Heavy
    25. 25. Current Member Lifestyles W18-34, Single, HHI <$10k, 1 or more kids W18-34, Single, HHI <$50k, 1 or more kids Painting/Drawing Going to Movies Playing Bingo Playing Backgammon Playing Computer Games Going to Bars/Night Clubs Roller Skating Going Dancing Karaoke Playing Bingo Scrapbooking Kick Boxing Roller Skating
    26. 26. The Newly Eligible Medicaid Member <ul><li>The new Medicaid Member Profile </li></ul><ul><ul><li>Males under 30, married couples with kids, healthier, higher education attainment </li></ul></ul>Source: MRI Doublebase M18-34, Single, Some College / Bachelors, HHI <$30k M35-49, Single, Some College / Bachelors, HHI <$30k A18-34, Married/Kids, Some College / Bachelors, HHI <$60k A35-49, Some College / Bachelors, HHI <$60k Television Light Light/Selective Light Average Radio Light Light Light/Average Above Average Magazines Light Light Average Average Newspapers Average Average Average Average OOH Light Light Above Average Above Average Internet Heavy Heavy Heavy Heavy Mobile Heavy Heavy Heavy Heavy
    27. 27. New Member Lifestyles Source: MRI Doublebase M18-34, Single, Some College / Bachelors, HHI <$30k M35-49, Single, Some College / Bachelors, HHI <$30k A18-34, Married/Kids, Some College / Bachelors, HHI <$60k A35-49, Some College / Bachelors, HHI <$60k Go to Movies Go to Movies Go to Movies Go to Movies Play Video Games (consoles) Play Video Games (consoles) Play Video Games (consoles) Play Video Games (consoles) Attend Rock Concert Go to Art Galleries Play Billiards Play Board Games Go to Bars/Night Clubs Attend Rock Concerts Play Board Games Hunting Play Chess Play Chess Play Chess Play Chess Fantasy Sports Leagues Play Billiards Fantasy Sports Leagues Involved in Church Activities Karaoke Lift Weights Visit Zoo Visit Zoo Karate Karaoke Picnicing Play Basketball, Baseball, Football, Lacrosse, Soccer, Frisbee Scrapbooking Roller Skating Hunting Picnicing Watch Sports on TV Roller Skating
    28. 28. Importance of Building an Effective, Integrated Marketing Program <ul><li>Expanding Demographic </li></ul><ul><ul><li>Must have multiple messages for multiple audiences </li></ul></ul><ul><li>Do the research – heed the research </li></ul><ul><li>Use a healthy combination of touch points: </li></ul><ul><ul><li>Traditional </li></ul></ul><ul><ul><li>Non-traditional </li></ul></ul><ul><ul><li>Digital </li></ul></ul>
    29. 29. Importance of Building an Effective, Integrated Marketing Program <ul><li>Traditional </li></ul><ul><ul><li>TV, Radio, Newspaper, OOH/Transit/Mall, Cinema </li></ul></ul><ul><li>Non-Traditional </li></ul><ul><ul><li>Grassroots events and activities, faith-based, adult sports league sponsorships, corporate or non-profit partnerships </li></ul></ul><ul><li>Digital </li></ul><ul><ul><li>Online advertising, gaming, mobile advertising and texting </li></ul></ul>
    30. 30. How Do You Find the Right Agency Partner? <ul><li>Look for. . . </li></ul><ul><ul><li>An agency with a long track record of health care marketing </li></ul></ul><ul><ul><li>A knowledgeable team that brings you new and creative thinking </li></ul></ul><ul><ul><li>An agency that invests in media and other research tools to craft better, more effective strategies that reach diverse audiences </li></ul></ul><ul><ul><li>An agency that is skilled at leveraging media buys and relationships to generate significant value-added benefits </li></ul></ul><ul><ul><li>An agency that wants to be a PARTNER , not just another VENDOR </li></ul></ul><ul><li>Most of all, look for people you like doing business with </li></ul>
    31. 31. A Few Things to Think About on February 13th <ul><li>Is your current brand positioning/messaging appropriate for 2014? </li></ul><ul><li>Which of the new key target audience segments will you focus on? </li></ul><ul><li>How will you reach them? </li></ul><ul><li>What new resources and/or skills will you need to develop? </li></ul><ul><li>Are you prepared for Valentine’s Day ? </li></ul>
    32. 32. Thank you! www.gkv.com

    ×