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BUS 137S Special Topics in Marketing (Services Marketing)
Miwa Y. Merz, Ph.D.
Service Journal Entry Form
Your Name:
Name of Firm: T-Mobile
Type of Service (industry): Phone Company
Date of Encounter: September 27, 2015
Time of Encounter: 4PM
1. How did the encounter take place (e.g., in person, by phone,
via a self-service technology)?
In person
2. What specific circumstances led to this encounter?
My girlfriend bought a new phone and she wanted to put a
screen protector
3. Exactly what did the firm/employee say or do?
The employee directly showed us the different type of screen
protector. He also explained in detailed about the advantage and
disadvantage for each of the screen protector.
4. How would you rate your level of satisfaction with this
encounter? (Circle the most appropriate number).
Very dissatisfied
1
2
3
4
5
6
7
Very satisfied
5. What exactly made you feel this way?
I was so surprised that the employee still remembered my
girlfriend and I. A week ago we went to the T-Mobile to ask
about the IPhone 6s.
6. What could the employee/firm have done to increase your
level of satisfaction with the encounter?
Nothing because I am completely satisfied with their service
7. What improvements need to be made to this service system?
I don’t think they need to improve anything because the
employees always ask the customer if they need help or not as
soon as they saw the customers.
8. How likely is it that you will go back to this service firm?
Very Unlikely
1
2
3
4
5
6
7
Very Likely
Please provide the reason(s). I will definitely go back because
the employees are so kind, patient and really helpful.
Service Journal Entry Form
Your Name:
Name of Firm: 99 Chickens
Type of Service (industry): Restaurant
Date of Encounter: September 19, 2015
Time of Encounter: 5 PM
1. How did the encounter take place (e.g., in person, by phone,
via a self-service technology)?
In person
2. What specific circumstances led to this encounter?
We wanted to eat the chicken
3. Exactly what did the firm/employee say or do?
They didn’t say a single word. They just took our order and then
directly leave.
4. How would you rate your level of satisfaction with this
encounter? (Circle the most appropriate number).
Very dissatisfied
1
2
3
4
5
6
7
Very satisfied
5. What exactly made you feel this way?
Because the employee did not talk at all
6. What could the employee/firm have done to increase your
level of satisfaction with the encounter?
They should treat the customer better. The service is seriously
so bad. I feel that they are actually really rude.
7. What improvements need to be made to this service system?
Actually the service system is not bad because it is a self-
service restaurant. But I think the company should tell the
employees to have more interaction with the customers to make
a good and friendly impression.
8. How likely is it that you will go back to this service firm?
Very Unlikely
1
2
3
4
5
6
7
Very Likely
Please provide the reason(s). I will for sure go back to this
restaurant in the future. I will stop coming to this place if there
is a new restaurant that make the same type of food. Even
though the service was super bad, but the food was delicious. I
think that they have the best fry chicken in the bay area.
Service Journal Entry Form
Your Name:
Name of Firm: Traders Joe
Type of Service (industry):
Date of Encounter:
Time of Encounter: AM/PM
1. How did the encounter take place (e.g., in person, by phone,
via a self-service technology)?
2. What specific circumstances led to this encounter?
3. Exactly what did the firm/employee say or do?
4. How would you rate your level of satisfaction with this
encounter? (Circle the most appropriate number).
Very dissatisfied
1
2
3
4
5
6
7
Very satisfied
5. What exactly made you feel this way?
6. What could the employee/firm have done to increase your
level of satisfaction with the encounter?
7. What improvements need to be made to this service system?
8. How likely is it that you will go back to this service firm?
Very Unlikely
1
2
3
4
5
6
7
Very Likely
Please provide the reason(s).
______________________________________
Service Journal Entry Form
Your Name:
Name of Firm: Minh’s Auto Body
Type of Service (industry): Car repair shop
Date of Encounter: September 4, 2015
Time of Encounter: 9 AM
1. How did the encounter take place (e.g., in person, by phone,
via a self-service technology)?
In person
2. What specific circumstances led to this encounter?
I bought a new car part for my car and need to ask someone to
paint it and install it on my car
3. Exactly what did the firm/employee say or do?
On the 3rd of September the employee texted me to drop off the
car at around 9 in the morning and come back again to take the
cars around 1 PM. When I arrived there, I asked them if I could
stay in their office to wait for my car and he scold me and asked
me to leave and come back again later.
4. How would you rate your level of satisfaction with this
encounter? (Circle the most appropriate number).
Very dissatisfied
1
2
3
4
5
6
7
Very satisfied
5. What exactly made you feel this way?
I feel so surprised, angry and annoyed
6. What could the employee/firm have done to increase your
level of satisfaction with the encounter?
Even though before he texted me already to come back couple
of hours after I drop the car, but still, he shouldn’t have scold
me. I asked him politely and in a friendly manner. He should
and must have response the same way.
7. What improvements need to be made to this service system?
They are handling too many cars at the same time. This makes
the work become slower.
8. How likely is it that you will go back to this service firm?
Very Unlikely
1
2
3
4
5
6
7
Very Likely
Please provide the reason(s). Because it was the cheapest price
that I could find after coming to couple of car shops and also
the result of the job was excellent. I will definitely come back
again in the future.
Service Journal Entry Form
Your Name:
Name of Firm: Citibank
Type of Service (industry): Bank
Date of Encounter: August 30, 2015
Time of Encounter: 2 PM
1. How did the encounter take place (e.g., in person, by phone,
via a self-service technology)?
Self-service technology
2. What specific circumstances led to this encounter?
I lost my debit card
3. Exactly what did the firm/employee say or do?
There was no employee
4. How would you rate your level of satisfaction with this
encounter? (Circle the most appropriate number).
Very dissatisfied
1
2
3
4
5
6
7
Very satisfied
5. What exactly made you feel this way?
I really feel dissatisfied with this encounter because at that time
I was so panic. I wanted to talk to somebody directly because I
was so scared that other people use or take the money inside
from debit card.
6. What could the employee/firm have done to increase your
level of satisfaction with the encounter?
I think that the firm should hear us talking first before the
machine gives us too many choices
7. What improvements need to be made to this service system?
Change the machine to the real person
8. How likely is it that you will go back to this service firm?
Very Unlikely
1
2
3
4
5
6
7
Very Likely
Please provide the reason(s).
Because this is the only bank account I have in the United
States
Chapter 12
After reading this chapter, you should be able to:
• Recognize the differences between the two basic forms of
advertising: product and
institutional
• Describe the steps involved in developing an advertising
campaign
• Know various ways to develop an advertising budget
• Understand the value of alternative media
No element of the marketing mix has been more visible in
health care than advertising.
In recent years the growth of resources committed to this aspect
of the marketing
mix has been substantial. In 2005, more than $25 billion was
spent annually on
health care advertising. Three-quarters of this money was
directed toward physicians.
However, the fastest-growing segment of health care advertising
is direct-to-consumer
marketing. Direct-to-consumer advertising in health care was $4
billion in
2004, 15 times as much as the roughly $260 million spent a
decade ago.1
“Advertising” may be defined as any directly paid form of
nonpersonal presentation
of goods, services, or ideas by an identified sponsor. The key
aspects of this definition
are: (1) that it is paid, which distinguishes advertising from
publicity; and (2)
that it is nonpersonal, which separates advertising from personal
selling.
Concerns have long been raised regarding health care
advertising. As seen in
Table 12-1, consumers have mixed feelings toward this aspect
of marketing. In two
separate studies, Andaleeb assessed consumers’ attitudes toward
hospital advertising
on a range of issues. The higher the value, the stronger was
customers’ agreement
with the statement in Table 12-1. Although consumers see
advertising as increasing
health care costs, they consider it to be a somewhat useful tool
in choosing a hospital.
Consumers also recognize that hospitals are really not different
from other prod
Table 12-1 Attitude Toward Advertising
Statement Mean
Hospitals should not engage in advertising 3.09
Ads help win clients 2.92
Hospital ads increase costs 4.13
Hospitals with good reputations don’t need to advertise 4.02
I don’t trust hospitals that advertise 2.40
Hospital ads are no different than other products 3.52
To stay in business, hospitals need to advertise 2.27
Ads are useful in choosing hospitals 3.40
Hospital ads are often misleading 3.15
Hospital ads often exploit people’s anxieties 3.18
Hospital ads make people aware of health-related issues 2.41
Scale was “1” very strongly disagree to “5” very strongly agree
Source: Adapted from Syed Saad Andaleeb, How Consumers
View Hospital Advertising, Journal of Hospital Marketing, Vol.
8,
No. 2, 1994, pp. 73–85. Reprinted by permission of the
publisher, Taylor & Francis, www.informaworld.com.
ucts, which may suggest some receptivity toward health care
advertising. However,
consumers are somewhat distrustful of hospitals that do
advertise and question why
those with good reputations need to engage in this practice. This
chapter will discuss
the value, the strategy, and tactics that make advertising a
legitimate part of the marketing
mix.
n Common Classifications of Advertising
There are many forms of advertising; the two most common
classifications are product
and institutional. Product advertisements focus on a particular
product or service,
whereas institutional advertisements build up or enhance an
organization’s image
rather than a particular product. There are several variations
within each form of
advertising.
Product Advertising
Product advertising can assume one of several forms:
informational, competitive, or
reminder. Informational advertisements are used in the early
stage of a new product or service introduction. These
advertisements help to explain the service, how it can
be accessed, or its objectives.
Competitive product advertisements are persuasive—they try to
generate selective
demand for the organization’s service over that of competitors.2
In traditional industries,
this form of advertising compares competing products.
Competitive
advertisements are not that common in the health care industry.
A final version of product advertising is purely reminder. For
example, some hospitals
have implemented nurse information lines so consumers can talk
to a nurse regarding
a medical question. When necessary, these nurses will provide
callers with the
names of health care providers to call for further examination or
consultation. The
University Health Care System of Augusta, Georgia, offers an
“Ask-A-Nurse” health
service center, a 24-hour, 7-day-a-week help line staffed by
registered nurses with at
least 5 years of experience. These nurses can assess symptoms
and direct a caller to
emergency services or make a physician referral, as necessary
(www.universityhealth
.org).
Institutional Advertising
Institutional advertising is frequently used in health care. These
advertisements are
used to build good will and to enhance the public’s image of a
particular organization.
There are several variations of institutional advertising; some
introduce or announce
the opening of a new company or facility, some compare
programs, and some
advocate public policy positions.
One issue of concern among the public is that of having surgery
done on the
wrong limb. From January 1995 through September 2003, 278
wrong-site surgery
cases were reported to the Joint Commission; 35% of these
cases were orthopedic in
nature. To address this issue, the American Academy of
Orthopedic Surgeons
(AAOS) formed the “Sign Your Site” task force in 1997 to
address this issue and then
mounted a major national institutional advertising campaign,
shown in EXHIBIT 12-1,
to heighten public awareness of the importance of participating
in surgical site marking.
“Sign Your Site” became a Joint Commission mandatory
intervention for preoperative
procedures in 2004.3
Institutional advertisements can be competitive, such as when
advertisements
compare two or more organizational forms, showing one to be
more effective than
the other(s). In health care, this variation often appears with
advertisements touting
prepaid health care plans versus more traditional indemnity
insurance programs.
As in product advertising, institutional advertising occasionally
serves as a reminder
to reinforce previous impressions in the target audience.
Another common form of institutional advertising is referred to
as advocacy, in
which an organization publicizes its position regarding a
particular issue. For example,
Developing the Advertising Campaign
The development of an advertising campaign begins with the
preparation of a media
plan, which outlines the analysis and execution of the
advertising campaign.
Define the Target Audience
Essential to a successful media plan is the first step—a
definition of the target audience.
The target audience is the group or groups that the organization
is trying to
reach. This step is an organizational decision, determined by
earlier market research and based on prior market segmentation
decisions. The more detailed this section of
the media plan, the easier subsequent decisions will be
regarding placement of advertisements
and advertising copy design. As in the earlier discussion of
market segmentation,
a target audience description will include demographics and,
possibly,
attitudinal profiles and lifestyle descriptions. Upon defining the
target audience, the
media plan must then specify the advertising campaign’s
objectives, budget, message,
communication program, and manner for evaluation. These steps
are shown in FIGURE
12-1 and are described in detail in the following pages.
Determine the Advertising Objectives
Advertising objectives are critical to any successful campaign.
In setting objectives,
it is best to consider how advertising works. Consumers do not
view an ad and then
buy a product or use a service. Rather, advertising facilitates
moving consumers along
a sequence of steps that have been described as a hierarchy of
effects—the stages a
buyer moves through from first seeing an advertisement
ultimately to buying the
product or using the service.4 These stages include: awareness,
interest, evaluation,
trial, and adoption.
Awareness
This level of the hierarchy is necessarily the first. The consumer
must recognize the
advertisement or be cognizant of the fact that it exists.
Canonsburg General Hospital
of Canonsburg, Pennsylvania, selected consumer awareness as
the advertising objective
for its newly remodeled mammography center. The hospital
conducted a
5-week advertising campaign in several newspapers.
Advertisements were also
reprinted as flyers distributed to new residents.5
Awareness was also the advertising objective for the University
Hospital in Los
Angeles, California. USC University Hospital and the USC
Norris Cancer Center are
well known in medical and clinical arenas, but not among the
general population.
The academic medical center built an awareness campaign
around its athletic teams’
“Fight On” slogan and the key challenges facing many of its
patients. The campaign
was tested in the Los Angeles metropolitan area prior to being
launched, and the positive
response was overwhelming. The campaign included an
integrative promotional
strategy that involved:
• A 6-month radio campaign on 14 radio stations throughout the
Los Angeles listening
area
• Digital banner ads on the WebMD and Los Angeles Times
Web sites
• Print ads in the Los Angeles Times and local newspapers
throughout Los Angeles
and Orange counties
• Online paid and organic search promotion through Google
AdWords and the Yahoo!
and Bing search engines6 Determine Target Audience
Specify Objects
Determine Budget
Specify Communication Program
Evaluate
FIGURE 12-1 Developing the Advertising Campaign
Interest
After developing initial awareness, a consumer must have some
inclination to seek
additional information about the product. The organization’s
goal at this level of the
hierarchy is to provide some information that will motivate
further deliberation or
action.
Evaluation
Before consumers will buy a product or seek out a service from
a particular provider,
they must compare that product or service with other available
options. Organizational
advertising must include dimensions that are important to the
target market.
Trial
The initial use of a service is called trial. Advertising can only
move a person to this
level of the hierarchy. In order to have repeat purchases, a
service must meet the customer’s
expectations. No amount of advertising can correct a bad
experience with a
hospital or medical group.
Adoption
This is the highest level of the hierarchy and the ultimate goal
of advertising—the
stage at which the customer becomes a regular user. If trial was
satisfactory, reminder
advertising plays an important role in this level of the hierarchy
of effects.
Determine the Budget
Several methods can be used to determine the appropriate
amount to spend on advertising.
Because there is no absolute formula, these methods tend to
include one of the four following categories: percentage of
sales, competitive parity, “all you can
afford,” and objective and task.
Percentage of Sales
This method involves determining a fixed percentage of sales or
revenue to use as
the basis for advertising allocations.7 For example, a hospital
might decide that 1.5%
of last year’s net revenue will be allocated to the current year’s
advertising. The advantage
of this method is its simplicity. It also provides some fiscal
safeguards in tying
advertising expenditures to organizational resources. In spite of
these advantages,
however, this method has an inherent flaw; it implies that sales
or revenue causes advertising.
Advertising should be seen as contributing to sales, not the
other way
around. Using this method, a company would reduce advertising
expenditures when
sales drop. In fact, this may be the period when additional
monies must be spent to
generate new sales. Hospitals that have large fixed-asset bases
cannot afford to exist
with large, idle capacity.8
Competitive Parity
Competitive parity is common in industries where there is a
significant amount of
trade data. The hospital sets the advertising budget based on
industry norms or what
it perceives the competitor is spending. Logic demands that an
organization consider
the competitor when determining any advertising budget.9 Table
12-2 shows an example
of such competitive comparison data collected in a recent study
by Sutter
Health of Sacramento, California, a health system consisting of
hospitals, physicians,
and a managed care plan. This study was conducted to
determine norms regarding
system advertising spending. Except for consideration of the
competitor, the logic of
this method is weak. It may well be that the competitor is trying
to reach a different
target market or has different goals. Moreover, this method
assumes that the competitor
knows what it is doing.
All You Can Afford
This approach is obvious by its name. Common to organizations
that really don’t believe
in the value of advertising, it involves first allocating the
budget to all important
operations within the organization. If any money is left over, it
might then be
allocated to advertising.10 Although this method might address
an organization’s fiscal
reality, it could lead to too much, as well as to too little, being
spent on advertising.
No consideration is given to the objectives of these methods.
Objective and Task
This fourth method is the most appropriate way to determine the
advertising budget.
The objective and task approach involves setting objectives
along the hierarchy of
effects and determining the tasks necessary to accomplish these
objectives. The costs of these tasks ultimately determine the
final budget needed.11 EXHIBIT 12-3 offers examples
of advertising objectives for each level of the hierarchy.
In using this method, for example, a marketing director must
decide how to accomplish
the first objective of getting referral physicians in Michigan’s
Upper Peninsula
to be aware of the hospital’s helicopter service. In this instance,
the director must
determine the following tasks and costs:
One physician referral brochure (6000 copies at $2 each)
$12,000
One full-page advertisement in Michigan Medical Society
monthly magazine 1,500
One open house at medical center for area physicians 6,000
Total cost $19,500
The total cost is the proposed budget. At this point, however,
the marketing director
determines how much the organization can actually afford and
adjusts the
budget accordingly. Any further adjustment in the budget must
be reflected in what can be accomplished regarding the
objectives. The tasks will be redefined, and the
budget subsequently adjusted.
In examining the objectives listed in Exhibit 12-3, it is
important to note the
ingredients for good, useful objectives. All of these objectives
specify the target
market. Each objective is time-based, whether it is 30 days or 3
months. Finally, each
objective is measurable. This last component is essential in
order to prove the value
of the campaign. In health care marketing, a common criticism
of advertising relates
to whether it actually achieves its objective. This concern is a
result of not beginning
with a measurable objective.
Develop the Message
The third step in designing the advertising program is the
development of the message.
Marketing research is essential at this stage to determine the
attributes that are
important to the consumer. In developing these messages,
varying appeals are often
used, including rational, emotional, and moral/social appeals.
Rational
These messages are directed at distinct functional attributes of
the product. The purpose
is to explain the value in using the particular service.
Emotional
An increasingly common advertising appeal is emotion, with
fear and humor being
used most often.12 The use of fear in health care advertisements
has some troubling
ethical dilemmas, as noted in an earlier chapter. In fact, the
Alliance for Health Care Strategy and Marketing, which was the
major professional association for health care
marketing professionals in the late 1980s and early 1990s,
developed a set of ethical
guidelines for advertisers (reviewed later in this chapter). The
group specifically noted
that advertising should not use emotional appeals to take
advantage of individuals
who are vulnerable due to health care needs.13 Within limits,
however, fear appeals
can be effective. One study used fear appeals in advertisements
for AIDS prevention
for college-age students. Results of the study showed that an ad
with a strong fear appeal
generated tension, energy, and a more positive cognitive
response than the milder
version of the advertisement.14
Moral/Social Appeals
These messages focus on causes or issues. Hospitals mount
advertising campaigns to
solicit funding for their medical foundation research. Likewise,
the American Red
Cross appeals to the community for participation in blood
donation.
Pretesting
Any good advertising message should first be pretested.
Pretesting involves assessing
advertising copy options before their general use. Effective
pretesting requires that it
be conducted with the intended target audience.
In Chapter 5 on marketing research, focus groups were
discussed as one datagathering
methodology. Focus groups are used extensively in the early
stages of advertising
development and pretesting. Initially, focus groups can be used
to identify
the important dimension for the advertisements and alternative
appeals that could be
utilized. Other pretesting methods can be implemented once a
draft version of the advertisement
is created. Pretests can be conducted to ensure that the target
audience
can interpret the advertisement, is interested in it, and prefers it
over other versions.
An advertisement can be pretested in several ways, such as
through portfolio tests,
jury tests, and theater tests.
Portfolio Tests
This form of pretesting involves testing alternative copy. The
test advertisement is
placed in a grouping with other sample advertisements.
Consumers are then asked
to review all the samples. Upon completing the review,
consumers are then asked
to judge the advertisements on a series of dimensions such as
interest, attention, likability,
and informative value. When Fallon Health Plan in Worcester,
Massachusetts,
initially embarked on its first health maintenance organization
(HMO)
advertising campaign, it pretested four different advertisements
among consumers
who belonged to traditional indemnity plans. In conducting the
portfolio test, the
Fallon HMO also showed variations of the advertisements to
subscribers of a competing
HMO Jury Tests
In this version of a pretest, the advertisement or variations are
shown to a panel of
consumers. Similar to a portfolio test, researchers solicit
consumer reactions on several
dimensions in the advertisements.
Theater Tests
The most expensive and elaborate form of pretesting is the
theater test. For example,
consumers are invited to a special viewing of a new television
show or movie.
Sample advertisements are interspersed throughout the show.
When the viewing is
over, consumers are asked to rate the show and provide
reactions to the advertisements.
In the most sophisticated theater tests, consumers can react
immediately to the
commercials and record their intensity of like or dislike by
using a handheld device
while they view the advertisement.
Regardless of the degree of sophistication applied to the pretest,
it is an essential
step in advertising. In health care, pretesting often involves
showing the advertisements
to the physicians on staff or in the medical group to gain their
approval. This
step is important to ensure that any advertisement intended for
the consumer be factually
correct regarding any intervention or treatment discussed. Yet,
unless the advertisement
is directed to other physicians outside the organization, this
kind of
pretest would not be entirely valid. The advertisement also must
be pretested with the
target audience of intended consumers.
Specify the Communication Program
Once an advertisement’s message is developed and pretested,
the next step in the advertising
campaign is to select the appropriate medium and vehicle for
delivering the
message to the target market. Related to this decision is
determining the timing of the
messages to be communicated. Medium refers to the form of
communication selected,
such as newspapers, radio, television, direct mail, or magazines.
The vehicle
is the advertising alternative chosen within each medium. For
example, an advertiser
might use magazines as the medium and Modern Healthcare
magazine as the particular
vehicle within that medium.
In selecting the appropriate medium, two objectives often
conflict within the constraints
of any advertising budget. These are the goals of reach and
frequency. Reach
refers to the unduplicated audience that an advertising vehicle
will deliver. The more
people exposed to the message, the broader the reach.
Frequency refers to the number
of times the same person receives a message within a defined
time period. The
value of frequency was best shown by the advice to prospective
advertisers from the
1800s shown in Chapter 4. Ideally, a company tries to maximize
the reach and frequency
of its advertising; however, based on definitions alone, it is
easy to see that
this would incur significant cost.
In addition to reach and frequency, advertisers must also
consider the amount of
waste, which refers to the people reached by a particular
medium who do not belong
to the intended target market. A magazine, for example, that
counts family practitioners
among its subscribers as well as pediatricians may have wasted
coverage if
the target is only pediatricians.
The price of most media advertising space is based on the size
and the purchasing
power of the audience. The larger the audience of a radio
station, the greater the charge
to advertise on that particular station. Magazines such as
Architectural Digest that target
an upscale audience might charge more money for advertising
than Backpacker.
Scheduling
After the organization determines the balance between reach
and frequency, it must decide
the timing for its messages. There are many variations by which
an advertising campaign
can deliver messages; the three most common are seasonal,
steady, or flighting.
Seasonal
Some products and services have a seasonal pattern to their
demand. For example,
cold medicines have heavier demand in the winter months; a
travel clinic might experience
greater demand in the summer months. Advertising, therefore, is
scheduled
in heavier amounts at the onset of the peak demand period.
Steady
This schedule involves maintaining the same level of
advertising exposure through the
selected time period. Physician referral lines sponsored by
hospitals often follow this
scheduling pattern. On any given day, any number of people
might need to avail themselves
of this service. Maintaining a constant level of product or
service awareness is
necessary to reach each new consumer entering the adoption
stage of the market.
Flighting
A common advertising schedule is called flighting, which
involves a heavy amount
of advertising for short time periods. FIGURE 12-2 shows three
diagrams to represent
flighting and two alternative scheduling patterns that are
discussed below. The flighting
approach has distinct periods when there are a large number of
exposures. The
logic of this approach is that advertising will have sufficient
carryover effect to maintain
awareness when there is little or no advertising. The risk of
losing product awareness
is represented by the gaps before the next burst in expenditures.
An alternative scheduling strategy is concentration, whereby a
company spends
its advertising dollars and achieves exposure within a defined,
relatively short time
period. Or, an organization can follow a pulsing approach, in
which advertising expenditures
occur at a constant level with occasional, short, heavy
expenditures.16
Picking the Right Medium
Advertisers have a variety of media from which to choose to
place their message.
Each of these media has distinct characteristics that must be
assessed in the final advertising
plan.
Television
Of all media available, television has the advantage of
communicating sight, sound,
and motion. These components afford the potential advertiser
significant flexibility
in the creation of the advertising copy. Today, almost 98% of
all homes in the United
States have television, providing the potential for enormous
reach. Television’s major
disadvantage is its cost. Prime time spots can easily exceed
$100,000. The production
costs of television commercials also add significantly to the
budget expense. Except
for large national companies such as Cigna, Prucare, or Blue
Cross Blue Shield,
national advertising costs are not part of the average budget for
most health care organizations.
In recent years, however, the advancement of local cable
channels has made television
advertising accessible and affordable for local advertisers such
as hospitals
or medical groups. The challenge of local market television
advertising is in identifying
the correct television station that will reach the desired target
audience. As more
households are wired for cable television, the number of station
alternatives expands
dramatically to 20, 40, or, in some markets, 80 channels,
making vehicle selection
all the more difficult for the local advertiser. Local television
advertising is generally
purchased by the time of the day rather than by a specific
program. Because of this
difference with national network advertising, local advertisers
must again know the
viewing habits of their target market at various times of day.
Another disadvantage of television advertising is the degree of
clutter or competing
messages that exists. It is difficult for one advertisement to
stand out when so
many commercials are packaged within a station break.
Radio
There are 10 times as many radio stations as there are television
stations in the United
States. Since the mid-1970s, the radio’s major growth has been
on the FM rather than
the AM band. A wide array of formats and programs make radio
a highly segmented
medium for potential advertisers. Also, on a cost basis, radio
compares very favorably
to television. The average circulation cost-per-thousand for
radio is $4. The cost
of producing a radio commercial in local markets is often
included in the rate charged
to the advertiser.
The production of radio ads can usually be completed in a short
time period, and
St. Joseph’s Hospital in Milwaukee has capitalized on this
advantage. The hospital
ran radio advertisements highlighting the birth of babies at its
facility. The advertisements
began with an announcer reporting the news of the day,
followed by announcements
of recent births at the hospital.17 A final major advantage of
this medium is that it reaches consumers out of their home.
Peak listening times for radio are the
morning and evening drive times.
Radio’s major limitation is its lack of a visual means of
communication. Also,
because so many radio stations and varying formats are
available, a potential advertiser
has almost too many options. The advertiser must also
accurately identify the
radio station that attracts its particular target audience.
Newspaper
Of all media available, newspapers receive the most advertising
dollars. In health
care, this medium has been the most popular because the
strength of newspapers is
their coverage of local markets in which most health care
organizations compete. Of
all media, newspaper advertising is typically the best for
generating immediate response.
Coupons and special offers are common to newspapers.
Newspapers are the
medium of choice for physician referral lines or nurse
information lines. Another advantage
of newspapers is their cost. Newspaper rates are reasonable
compared to
other mass media like television, making it the medium of
choice for local advertisers.
Although in recent years, with the advent of cable television,
the rate advantage
of newspapers has been somewhat negated.
The segmentation possibilities in local newspapers are
relatively limited. In recent
years, however, most large metropolitan newspapers have
developed zone editions
that target specific geographic areas within their circulation.
The New York Times,
for example, has regional editions as well as a national edition
sold in airport terminals
throughout the United States. An additional advantage of
newspapers is the
short lead time required to place an advertisement. A hospital
often will only need
to wait a day or two before its advertisement can be run in the
local newspaper.
Newspapers do have some disadvantages. Newspaper readership
tends increasingly
to be concentrated among older consumers. To overcome this
problem, many local
newspapers have followed the pattern of USA TODAY, using a
glossy four-color
approach and succinct writing to appeal to a younger, more
visually oriented audience.
Magazines
Few media have grown as dramatically in recent years as
magazines.18 A vast array
of specialized publications enable the organization to target a
specific market segment.
Environmentally concerned consumers read Garbage, outdoor
enthusiasts
might peruse Backpacker, and health-oriented consumers might
subscribe to Men’s
Health, Organic Gardening, Women’s Health, or a host of
others. Within the magazine
industry, competition for advertising dollars is fierce. Like
newspapers, many national
publications have developed both zone and demographic
editions targeted to
particular subsets of their readership. Thus, advertisers who
know their target market
are able to spend their advertising dollars efficiently.
Magazines have other advantages beyond the selectivity that
they can deliver.
Many publications have a long shelf life, meaning readers will
keep them for weeks,months, or, in the case of National
Geographic, years. An advertisement in these publications
may be read several times over the course of a publication’s
shelf life. An additional
advantage of magazines is their excellent reproduction
capabilities for
advertisements. The quality of the printing and color separation
in magazines far surpasses
anything achieved to date by newspapers.
Like all other media, however, magazines have some
disadvantages. The sheer
number of magazines makes it more difficult to select the
specific publication in
which to advertise. Some publications also have a long lead
time for the placement
of an advertisement, often requiring delivery of ad copy 4 to 6
weeks prior to publication.
Magazine advertisements thus must be used to support a longer
running campaign
rather than to generate an immediate response.
Outdoor Advertising
Outdoor media consist of a couple of variations, namely
billboards or transit advertisements.
Because of space and time exposure limitations for these media,
outdoor
advertising is typically viewed as a supplemental medium to
support exposures in
other media. Outdoor advertising is useful for its reminder
appeal or in the introduction
stage of a service to generate brand name or service recognition.
This medium
has also been useful in generating calls to referral lines or
health information lines.19
According to the Outdoor Advertising Association of America,
the health care industry
is the fastest-growing segment of its business.20
The major advantage of outdoor advertising is the repetition it
can provide
through broad exposure of the message. Yet, its limitations are
significant in terms of
the degree of selectivity and the message that can be
communicated. As a medium, outdoor
advertising has an image problem. Some believe that billboards,
in particular, are
a form of visual pollution. Some communities have placed
constraints on the presence
and size of billboards. Four states (Alaska, Hawaii, Maine, and
Vermont) have banned
all outdoor billboards. Fewer constraints have been placed on
transit advertising.
These ads are common in larger communities that have public
transportation.
Direct Marketing
One of the most targeted media choices available is direct mail.
With increasing computer
sophistication, many direct advertising pieces can make a highly
personalized
appeal to the recipient.
Critical to a successful direct mail approach is having a good
list of prospects.
There are two approaches most companies can use. The first is
to develop their own
refined lists of customers or prospects. Increasingly, companies
are using database
marketing. With database marketing, companies develop
detailed profiles of their
target market and then access names from their databases based
on qualifying variables
such as income, age, or prior purchasing of particular products.
A second approach
is to purchase a list of prospects from a commercial list broker
who can
provide a customer database based on several classifications. In
a recent hospital survey, the prevalence of direct marketing
efforts was clear.
Almost 90% of hospitals surveyed indicated that their direct
marketing budgets had
increased. In citing their reasons for using this medium,
hospitals reported four common
objectives:
1. To increase hospital awareness
2. To generate leads for current programs
3. To promote special events
4. To enhance a facility’s image21
In 2007, the Cleveland Clinic conducted more than 710
individual direct mail campaigns,
most often targeted at people who had moved within 25 miles of
its service
area. The Clinic measured call volumes and referral rates as
well as transfers of medical
records. The Clinic found that the program paid off with a 5-to-
1 return.22
Direct mail’s limitations are its image and cost. Many
consumers regard direct
mail as junk mail. Consumers often get large amounts of direct
mail material on a
daily basis, so it is difficult to get one piece to stand out from
the competition. Direct
mail’s cost must also be considered as its level of sophistication
increases. Historically,
the major cost of direct mail was postage. However, production
costs must also
be factored into the cost equation. To attract attention, direct
mail marketers have
significantly increased the use of color, higher-quality paper,
and multiple mailings
to gain attention, all of which add greatly to total cost.
Internet Advertising
The Web is increasingly giving advertisers new and exciting
ways to advertise. Online
advertising provides many advantages to potential advertisers.
The organization
can track the number of users who visit a site, how many times
a site has been viewed,
and how deeply a site was looked at by a visitor. Did the person
look at the first page
of the medical group’s site? Or, did the visitor also look at the
page of the orthopedic
department and the spine center services? A study released by
Outsell found that
online advertising was projected to grow by 17.9% in 2007,
compared to a 5.8%
growth rate in advertising overall.23
The following are the most common Internet advertising
methods:
• Banner ads—rectangular graphics at the top or bottom of a
Web page. Most receive
less than a 1% click-through rate.
• Button ads—small banner-type advertisements placed
anywhere on a page.
• Pop-up ads—screens that appear while a Web page is loading
or after the Web
page has appeared. Today, most Web browsers block many of
these pop-ups,
which limit their effectiveness.
• E-mail—The sending of unsolicited e-mail is called
spamming. Some states have
passed laws against spamming. Although e-mail is an easy and
inexpensive way
to communicate with prospective customers, it is considered to
be intrusive.
Evaluate the Response
Testing of advertising effectiveness occurs at two stages. As
discussed earlier, the first
form of evaluation—pretesting—ensures that the target audience
receives the message
in the way it is intended. Pretesting also determines preference
and attention-getting
value.
After selecting the media and placing advertisements, most
organizations conduct
tests to determine the effectiveness of the marketing campaign.
Tests vary and are
based on the media used for advertising.
Companies often assess whether the advertising campaign has
resulted in a
change in attitudes toward the product or service being
promoted through the use
of surveys and posttest attitude tests.24
Broadcast
A common form of posttesting for television or radio is day-
after recall. Typically, after
a commercial is aired on television or radio, the advertiser
conducts telephone surveys
to determine whether people remember the advertisement.
Recall can be either
aided or unaided. With unaided recall, the telephone interviewer
might ask, “Have
you seen any advertisements on television for a women’s health
program?” The recall
of the particular hospital’s program could then be assessed.
With aided recall, the
interviewer would ask, “Have you seen any ads lately for St.
Mary’s Women’s Health
Center?”
Print
In the magazine industry, posttest scores are often collected
through a syndicated data
service referred to as Starch. Roper Starch Worldwide conducts
personal reader interviews
to determine the number of people who read a particular issue
and whether
they saw the advertisement or the signature and whether they
read the ad. Starch provides
companies with scores for the advertisements for the issues in
which they were
placed.
Direct Marketing
The advantage of direct marketing advertising is that customer
response can be directly
measured through follow-up inquiries or purchase orders. This
direct form of
measurement has led to the medium’s growing appeal.
Internet
The advantage of the Internet is that it can be easily tracked
with click-through to determine
how deeply someone is looking at the Web page or by counting
how often
the page is viewed. However, it is difficult to measure the
viewer’s retention of the
information presented.
The Web 2.0 and Social Media
As discussed in Chapter 11 on promotion, the line between
advertising and communication
is blurring. Traditional media may be too narrow for the health
care organization’s
promotional plan. Health care organizations should expand their
reach by
adopting Web 2.0 strategies, including the use of social media.
As shown in EXHIBIT
12-4, most hospitals have been slow to use social media as a
marketing and communication
tool. However, as discussed below, a number of health care
organizations are
embracing new media.
Blogging
In some ways, blogging is like keeping a personal diary online.
The number of blogs
grew from 8 million in 2005 to 133 million in 2008.25 A survey
by the Pew Internet
and American Life Project in June 2009 found that 43% of all
Internet users (representing
32% of U.S. adults) reported reading someone else’s online
blog, although few
are blogging about health care (5%).26 Two hospitals, High
Point Regional and the
University of Pennsylvania Health Systems, entered the
“blogosphere” fairly early.
High Point found that its blog was consistently one of its top
viewed Web pages.27
Facebook
Facebook (www.facebook.com) is a social networking Web site.
All that is needed to join
is an email address. Launched in February 2004, Facebook has
grown rapidly. Individuals
use the site to connect with friends and relatives, and companies
use it for marketing
purposes. In 2008, Merck launched a Facebook page to promote
Gardasil, a vaccine
that can protect against human papillomavirus (HPV). Bayer
Aspirin launched a Facebook
page with a interactive quiz for women to gauge their risk of
heart disease.
Podcasts
Podcasts are audio files that have been converted to an MP3 file
or other audio file
format for playback on a digital music player. Podcasts have
evolved to allow for
playback of videos as well.29
Akron Children’s Hospital in Akron, Ohio, was an early adopter
of the podcast
format. Competing against major medical centers in Cleveland,
Columbus, Cincinnati,
and Western Pennsylvania, Akron must compete in a congested
media market
to get its message out to potential patients, parents, and
referrers. Its first podcast was
of an adult patient who was treated at Akron Children’s for a
congenital heart disease.
30 Since its initial venture into podcasting, Akron Children’s
Hospital has developed
an extensive library of podcasts on a variety of topics, including
parenting,
children’s health education, and health trends.31
Twitter
Twitter (www.twitter.com) allows people to send messages
fewer than 140 characters
in length. Messages can be accepted from a variety of different
sources, including
computers, cell phones, and mobile devices. In a rather
interesting online article, Phil
Baumann proposed 140 possible uses of Twitter in the health
care arena, including
fund-raising, census management [market research], recruitment
of health care staff,
publishing of health-related news, checking hospital rating with
health care consumers,
real-time satisfaction surveys with consumers, arranging
appointments with health care
providers, hospital reputation monitoring, developing stronger
patient–provider relationships,
broadcasting infant care tips, and issuing dietary tips. 32 The
University of
California at San Francisco uses Twitter to notify the public
when new content is
available on its blog or on its Facebook page.33
Integrated Advertising Campaigns
The challenge for marketers in today’s Web 2.0 environment is
to create and develop
an advertising and communication plan that integrates the
organization’s online
strategy and the traditional media campaign. Whether the health
care organization
is a solo practice, hospital, or major academic medical center,
the goal is to determine
the best ways to reach patients, referral physicians, or other
target markets and to create
an ongoing dialogue between them and the organization.
n Working with Advertising Agencies
Many hospitals and health care organizations do not have the
in-house resources
needed to develop their own advertising materials. Those that
do not can hire the services of an advertising agency.
Advertising agencies vary in size and in the scope of
the functions that they perform. A health care organization must
identify the types
of services needed to select the appropriate agency.
Alternative Advertising Agencies
The most comprehensive advertising agency, the full-service
agency, provides all the
elements necessary to assume the total advertising function.
These organizations typically
offer sales promotion, public relations, direct marketing,
consulting on design
and identification, and even television programming.
The full-service agency typically has several departments
organized around creative
services, account services, marketing, and administrative
services. The creative
department is responsible for producing all the advertising
design and copy. Account
services deals with the client—the health care organization.
This professional has to
understand the health care business and know how to
communicate the client’s goals
and objectives to the creative department. The purchasing of
media space and time
is the responsibility of the marketing services department. Full-
service agencies often
have marketing research functions residing within this area. The
administrative
and financial department handles billing and agency
management.
Opposite of the full-service agencies are the boutique agencies.
A boutique agency
may offer a limited range of services, such as creative services
or media buying services,
or will act as a contractor to put together the range of services
needed by the
organization.
Agency Compensation
Advertising agencies are compensated by fee or by commission.
Agencies paid by
commission are, in effect, being paid by the media. In
commission compensation,
the agency places $200,000 of advertising in selected
publications and in television.
The agency keeps 15% of this billed amount as standard
compensation. The media
then provides $200,000 worth of advertising space. Although
the client is paying
the agency, the media is, in effect, subsidizing the commission
by providing the full
amount of media space or time.
A major buyers’ concern about the commission system is that it
provides agencies
with an incentive to recommend more advertising than is
necessary. Agencies
have also felt that the commission-based compensation system
may not be providing
them with a fair return for the work they provide to a client. As
a result, in recent
years commissions have declined and some agencies have
moved to a fee-based
structure.34 The fee is agreed upon by the agency and the client
and is based on the
amount, type, and scope of work being provided.
Ethics in Advertising
Few aspects of marketing were of greater concern to health care
professionals than
the onset of advertising. Because of the sensitive nature of
health care and the often
precarious position of the health care buyer, there is heightened
sensitivity to the use
of this tool. The Alliance for Health Care Strategy and
Marketing developed a set of
voluntary guidelines regarding the concerns and issues that
should be considered in
health care advertising, shown in EXHIBIT 12-5. EXHIBIT 12-
6 shows the ethical guidelines
issued by the American Society of Metabolic and Bariatric
Surgery. Given the
large growth in bariatric surgery and the advertising associated
with it, the organization
felt the need to issue such standards.35
Although advertising has become more common in health care,
it still generates
concern and criticism. In the March 28, 2005, issue of the
Annals of Internal Medicine,
a study was published that condemned the trend among
respected academic
medical centers of using advertising strategies to promote
services such as Botox and
Lasik and fertility treatments. The study analyzed newspaper
ads for 17 of the country’s
best-known academic medical centers and concluded that the
promotions placed
profits before patient interests. The study underscored to a large
degree that the information
aspect of advertising is still not fully appreciated, but also
highlighted that
in health care, sensitivity is required with regards to the
promotional claims made in
any advertisement.36
The issue of ethics has extended to the Web. The Swiss-based
Health on the Net
(HON) Foundation, which has been in existence for 12 years,
has an eight-point code
of ethics. If a health information provider abides by HON’s
code of ethics, it receives
approval from the nonprofit to display the HON logo. In 2003,
more than 3000 Web sites received such approval (including the
Mayo Clinic) and displayed their compliance
with HON’s ethical guidelines.37
Nonprofit Concerns
One final aspect of health care advertising that deserves
attention is the matter of an
organization’s nonprofit designation. Federal, state, and local
government agencies
have examined whether advertising by these organizations is
excessive. Twenty of
Pennsylvania’s 224 nonprofit hospitals were required to provide
services in place of
property taxes to various taxing agencies after being judged as
acting more like forprofit
organizations in light of their advertising expenditures.38
n Conclusions
Advertising is an important ingredient of any health care
organization’s promotional
strategy. Developing an effective media plan begins with a
specification of its objectives.
From this foundation, a budget and appropriate tactics for media
selection and
scheduling can be determined. Any effective advertising
requires that there be a mechanism
both to pretest and posttest the campaign. Because of the
serious nature of
health care and the vulnerabilities of consumers engaged in the
selection of health
care services, significant attention is due to the ethical
dimensions of the advertising
strategy ultimately implemented.
Case Study—Memorial Health System CPOE Implementation
HCS/483 Version 4
1
Case Study—Memorial Health System CPOE Implementation
Memorial Health System is an eight-hospital integrated health
care system in the Midwestern United States. The health system
has two downtown flagship tertiary care hospitals, each licensed
for more than 700 beds, located in the two major metropolitan
areas served by the system. The remaining six hospitals are
community-based facilities, ranging in size from 200 to 400
beds. These hospitals are located in the suburban and rural areas
served by Memorial Health System.
Four years ago, the system’s board of directors approved a
multi-million-dollar initiative to install an enterprise-wide
clinician provider order entry (CPOE) system intended to
dramatically reduce medical errors. Today, the system is far
from fully implemented, and, in fact, has been removed from all
but one of the two tertiary care facilities, where it remains in
pilot adopter status.
At the time, the board approved the CPOE initiative, the project
was championed by Fred Dryer, the CEO, and was closely
supported by Joe Roberts, the chief information officer (CIO) of
the health system. Even during its proposal and evaluation by
the board, the project was considered controversial by some of
the health system’s stakeholders. For example, many of its
physicians, who are community-based independent providers,
were adamantly opposed to the CPOE system. They worried that
their workload would increase because CPOE systems replace
verbal orders with computer-entered orders by doctors. Dr.
Mark Allen, a primary care physician commented, “The hospital
is trying to turn me into a 12-dollar-an-hour secretary, and they
aren’t even paying me 12 dollars an hour.”
In securing board approval, Dryer and Roberts presented an
aggressive implementation plan that called for the requirements
analysis, Request for Proposal (RFP), vendor selection, and
project implementation to be completed in less than 18 months
in all eight hospitals. During the discussion with the board,
several of the members questioned the timeline. One noted, “It
took you 2 years to set up e-mail, and everyone wanted e-mail.
This will affect every clinician in every hospital. Do you really
think you can do this in 18 months?”
In an effort to demonstrate results, Dryer and Roberts demanded
results from the clinical and IT team formed for the project. By
this time, a rushed requirements analysis had been completed,
an RFP issued, a vendor selected, and a contract signed. The
acquisition process took a little more than 6 months, leaving a
year for the implementation.
In protest, a number of prominent physicians took their referral
business to the other health system in the area that seized upon
the controversy by promising that they would not use a CPOE.
Shortly thereafter, the two leading champions for CPOE—Dryer
and Roberts—left Memorial. The chief medical officer, Barbara
Lu, who was a vocal opponent of the project, was appointed
interim CEO.
Although Lu was an opponent of the project, many members of
the board still supported it. In addition, none of the board
members wanted to lose a substantial down payment to the
vendor, so Lu was instructed to proceed with implementing the
system. Lu appointed a close colleague, Dr. Melvin Sparks, to
serve as the interim CIO of the system. Sparks was both a
practicing radiologist and a degreed computer engineer, so Lu
thought he would be an ideal CIO for the system. Sparks hired
Sally Martin as the executive project manager overseeing the
implementation.
After evaluating the progress made to date and preparing a
detailed thousand-step project plan, Martin reported back to
Sparks on the status of the project with an exceptionally
detailed report. Several key points were noteworthy in her
report. Because of the rushed requirements analysis, several key
workflow and system integration issued were missed.
Consequently, to complete the project in the remaining 12
months, the organization would have to do the following:
· Double the IT staff assigned to the project from 16 to 32
people.
· Purchase approximately $500,000 in integration software not
already budgeted.
· Alternatively, the scope of the project could be reduced from
an enterprise deployment to something less than that.
· Alternatively, the duration of the project could be doubled to
24 months, keeping the staff flat but not avoiding the $500,000
software cost.
Dr. Sparks did not respond well to the news, exhibiting a great
deal of anger at Martin, who was not working for the health
system when the project was scoped and budgeted. Sparks
yelled at Martin and told her never to come back into his office
with bad news again. Her job, Sparks screamed, was to “figure
out how to turn bad news into good news or no news.” As she
left Sparks’ office, Martin resolved never to convey bad news to
Sparks again, no matter how serious the issue was.
Over the next 12 months, the project progressed but got a bit
further behind schedule each week. Martin reminded herself that
she wasn’t conveying bad news to Sparks. In each status review
meeting, Martin always presented a project schedule that was on
scope, on schedule, and on budget.
During this time, the health system took on a number of other
important IT initiatives requiring human resources. Each time
another project fell behind schedule, Sparks took resources from
the CPOE project. From the 16 people originally budgeted, the
team was reduced to eight. The only positive aspect was that the
project, which was costing money even though it was making
little or no progress, was expending less cash as it made no
progress.
As the project went into its 16th month, 2 months before the
scheduled launch, nearly all the project budget had been
consumed, and—in an effort to save money—the end-user
training budget was cut to the bare minimum. At the same time,
some doctors who had not left the system attended the CPOE
vendor’s annual user group meeting. They saw the release of the
vendor’s most recent system and immediately decided they
wanted it for Memorial. Upon returning to the hospital, the
doctors met with Sparks and persuaded him that the only hope
for enlisting physician support for the changed workflow was to
adopt the newest version of the software, which was just being
introduced. The physicians told Sparks they had persuaded the
vendor to appoint Memorial as an alpha site for the new
software.
When Sparks informed Martin of the change in the scope of the
project, Martin was concerned, but remembering Sparks’
reaction to bad news, she kept her thoughts to herself. She
framed her questions in the form of the risks that such a major
change in direction might cause with so little time to recover.
Sparks smiled and told Martin, “Don’t worry; it will all work
out.” So, 2 months before the launch, Martin worked with her
team to alter the project work plan to install the new software,
test the software, configure the software and interfaces, and
train the users—all in 2 months, even though the same activities
had taken almost 8 months the first time.
The scheduled date for the launch arrived, and all eight
hospitals went live with the new CPOE system on the same day.
The new software had flaws. The lack of end-user training was
apparent, and the many requirements missed during the analysis
became immediately obvious. Doctors could not log on to the
system, and nurses could no longer enter orders. Patients were
kept waiting for medications and tests.
After several days of this, Lu instructed Sparks to
decommission the CPOE system and revert back to the manual
procedures. An unknown physician was quoted in a major health
care publication—under the title “CPOE Doesn’t Work”—
describing the debacle at Memorial Health.
During the project postmortem, Sparks expressed surprise the
project was not going as planned and asked Martin why she had
not been more forthcoming about the problems, issues, and
risks. The vendor took 6 months to fix the bugs in the software,
and—30 months into the project—CPOE was launched again.
However, this time, it was in one ICU in one of the tertiary care
hospitals. Four years after the beginning of the project, this is
the only unit in the entire health system in which CPOE is
operational.
Health Information System
Textbook for Reference:
Wager, K. A. (2013). Health Care Information Systems: A
Practical Approach for Health Care Management, 3e
Instructions: I rather hear about your experiences, experiences
of others you know, opinions and ideas when answering the
following questions. Must write up from 75 to 150 word count.
CITE AND REFERENCE ALL WORK IN APA FORMATT!!
1. What is the most important critical success factor when
implementing an IT initiative?
2. Leadership in healthcare of organizations plays a vital role
in managing the change that comes with the implementation of
an IT application. Healthcare executives are leaders and
managers in change initiatives. In general, what personal
characteristics do effective managers display? What about
effective leaders? Do these characteristics promote effective
change?
3. Can transformational leadership be a good style of leadership
when implementing an IT initiative? Why or why not?
4. What are common ways to measure benefits of information
technology in health care?
5. What is IT-enabled value? Why do IT projects sometimes fail
to deliver the expected returns?
6. http://www.biomedcentral.com/1472-6963/14/243 Read the
article and discuss your thoughts.. 150 WORD
7. https://www.deepdyve.com/lp/springer-journals/the-
promising-application-of-health-technology-assessment-in-
public-0ziU5dkPSQ Read the article and discuss your
thoughts.. 150 WORD
8. http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3402621/
Read the article and discuss your thoughts.. 150 WORD
9. Resource: Ch. 16 of Health Care Information Systems- See
attached Case Study
Consider the following scenario:
· During the third week of your internship, the CIO e-mails your
team several examples of other IT project implementations.
Later that day, she says to you, "Review the examples I sent you
about the implementation process. I attached a list of questions
for you to answer about how the implementation process works
and why IT projects sometimes fail. I'm most interested in your
analysis of how organizations such as ours can minimize the
occurrences and effects of IT failures."
Read : Case Study--Memorial Health System CPOE
Implementation.
Write a 150 word paper in which you answer the following
question:
· Ch. 16 of Health Care Information Systems describes the
causes of project failure. What are at least five indicators of
project failure that manifest themselves in the case study?
Format your paper consistent with APA guidelines.
To clarify:
· Cite and reference at least two peer-reviewed articles in the
paper.
· Develop in-text citations and references according to APA
standards.
· Reference page must be formatted on APA format.
10. Resource: Week Three Technology Trends Proposal Part ll
assignment below, textbooks, and or peer-reviewed articles, etc.
Research management's role in the technology selected (Smart
phones) and the benefits of it (Smart phones) that support the
organization's quality initiatives.
Write a 350-700 word summary describing the management's
role in the technology (Smart phones) selected and the benefits
of it (Smart phones) that support the organization's quality
initiatives.
Cite at least two peer-reviewed references from the University
Library.
Format your paper consistent with APA guidelines.
To clarify:
· Include a title page
· Include an introduction and a conclusion.
· Use section headings in accordance with APA standards for
organization.
· Cite and reference at least two peer-reviewed articles in the
paper.
· Develop in-text citations and references according to APA
standards.
· Reference page must be formatted on APA format.
Resource: Week Three Technology Trends Proposal Part ll
assignment
Introduction
Smart phones have not yet been in existence for six years, but
by now they are influencing the manner in which individuals
operate. A few individuals which accounts for approximately
50% of citizens have smart phones, although several individuals
have not yet started to understand what they are capable of, or
how many the phones are expected to change the global world
(Zheng, 2012).
Privacy Risks
One of the privacy risks includes loud people.A lot of people
speak loudly when they are on a mobile phone. It is not
infrequent to hear individuals conducting business and talking
about tremendously private materials in restaurants, on buses or
on the road. These persons have a major risk of being
overheard. The second risk involves environmental
microphones. A person’s telephone call can be controlled by
another person who places a microphone in his room. The third
risk involves intercepting the wireless link. The wireless link
between the phone and the cell can be controlled by a third
person (Zheng, 2012).
Digital links are less vulnerable to interception than analog
associations; encrypted links provide superior security still. The
other risk involves interception at the phone site. The cell sites
offer a superlative location for controlling the communications
of all persons who are utilizing it. The other risk involves
interception at the telephone switch (Allen, 2013). Cell sites of
a provider are linked by leased-lines to a telephone switch.
Law enforcement agencies characteristically place court-ordered
wiretaps at telephone switches.
Security Safeguards
The first security safeguard involves turning on the screen lock
function on the phone device which is found in the phone's
settings menu (Zheng, 2012). One should remember to turn off
GPS and Wi-Fi when they are not using them at a given time
since they could be utilized by location-tracking applications to
figure out where the individual is located. The most widespread
threat is apps that surreptitiously bill a user's credit card by
sending a first-rate text message to a hacker. A lot of security
apps are now aiding users to learn more concerning these pesky
permission requirements (Allen, 2013). They can also block
citizens from visiting fake websites or being scammed.
Strategies for evaluating the effectiveness of the smart phone
technology
There are several strategies that can be put in place to evaluate
the effectiveness of smart phone technology (Zheng, 2012).
The first approach involves comparing departments that use
smart phone technology to those which do not use. The
anticipation is that those that use smart phone technology will
record a better performance as compared to those that do not
use it. The other strategy involves the quantification of the
turnover by the organizational departments that use smart phone
technology which are expected to be higher than those that do
not have (Allen, 2013). The other strategy involves evaluating
the effects of smart phone technology on the users as well as the
organizations. For instance, the instances of cyber attack using
smart phones may negatively influence the organization’s
processes.
Conclusion
The smart phone technology is the latest technology that is
being incorporated by most organizations as well as individuals
(Zheng, 2012). There are positive effects of smart phone
technology as they facilitate faster services. However, they can
lead to negative effects such as obsolescence.
Health Care Consumer: Trends and Marketing
Instructions: I rather hear about your experiences, experiences
of others you know, opinions and ideas when answering the
following questions. Must write up 100 to 150 word count.
1. Do you think the Health Insurance Portability and
Accountability Act (HIPAA) has worked? Explain.
2. Are your rights violated if you go to the ER and when you
see the receptionist to tell them why you are there, everyone can
hear? Are your rights violated when in an urgent care center,
you are separated by a curtain only, and everyone can hear what
is said, or if you go to the doctors and you hear the doctor
talking to the patient in the next room?
When you go to the doctor, you are asked to sign a HIPAA
form. Has anyone ever read it? If so, what does it really say?
3. What are some ways in which you share health information
today? What are the risks associated with sharing information?
What types of sharing are most effective?
4. http://www.wired.com/2014/07/medical_apps/ What do you
think about this article?
5. Chapter 11 discusses advertising limitations. Consumers are
surrounded by advertisements from all forms of medium -
television, radio, print, and the Internet. Advertisers must be
aware of the limitation of the noise created by the bombardment
of advertisements to the consumer. As a result of the influx of
advertisements, consumers may ultimately feel a particular
advertiser is self-promoting their product or service.
Advertisers recognize that their efforts are more effective when
the consumer's awareness of their product or service is limited.
In this scenario, the consumer may gain knowledge on the
service or product by viewing or reading the advertisement.
The consumer then becomes familiar with the product, and may
wish to explore further. Thoughts?
6. https://www.whitehouse.gov/healthreform What did you see
that surprised you? What did you see that you already knew?
What is happening right now with health care reform?
7. What are some aspects of health care reform besides the
mandate that everyone should have coverage?
8. http://www.hhs.gov/healthcare/facts/timeline/timeline-
text.html What has changed, or do you think will change, with
this timeline? How does that affect consumers?
9. Research the following in your community:
· One web-based resource
Write a 350 word paper in which you address the following:
· Who is their target audience?
· How are they marketing to their target audience?
· How effective is their marketing approach?
· What could be done differently to improve their marketing?
10. Summarize Chapter 12
Essentials of Health Care Marketing- THIRD
EDITION, Eric N. Berkowitz, PhD, MBA
Write a 1000 word summary on Chapter 12
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BUS 137S Special Topics in Marketing (Services Marketing)Miwa Y..docx

  • 1. BUS 137S Special Topics in Marketing (Services Marketing) Miwa Y. Merz, Ph.D. Service Journal Entry Form Your Name: Name of Firm: T-Mobile Type of Service (industry): Phone Company Date of Encounter: September 27, 2015 Time of Encounter: 4PM 1. How did the encounter take place (e.g., in person, by phone, via a self-service technology)? In person 2. What specific circumstances led to this encounter? My girlfriend bought a new phone and she wanted to put a screen protector 3. Exactly what did the firm/employee say or do? The employee directly showed us the different type of screen protector. He also explained in detailed about the advantage and disadvantage for each of the screen protector. 4. How would you rate your level of satisfaction with this encounter? (Circle the most appropriate number). Very dissatisfied 1
  • 2. 2 3 4 5 6 7 Very satisfied 5. What exactly made you feel this way? I was so surprised that the employee still remembered my girlfriend and I. A week ago we went to the T-Mobile to ask about the IPhone 6s. 6. What could the employee/firm have done to increase your level of satisfaction with the encounter? Nothing because I am completely satisfied with their service 7. What improvements need to be made to this service system? I don’t think they need to improve anything because the employees always ask the customer if they need help or not as soon as they saw the customers. 8. How likely is it that you will go back to this service firm? Very Unlikely 1 2 3 4 5 6 7 Very Likely
  • 3. Please provide the reason(s). I will definitely go back because the employees are so kind, patient and really helpful. Service Journal Entry Form Your Name: Name of Firm: 99 Chickens Type of Service (industry): Restaurant Date of Encounter: September 19, 2015 Time of Encounter: 5 PM 1. How did the encounter take place (e.g., in person, by phone, via a self-service technology)? In person 2. What specific circumstances led to this encounter? We wanted to eat the chicken 3. Exactly what did the firm/employee say or do? They didn’t say a single word. They just took our order and then directly leave.
  • 4. 4. How would you rate your level of satisfaction with this encounter? (Circle the most appropriate number). Very dissatisfied 1 2 3 4 5 6 7 Very satisfied 5. What exactly made you feel this way? Because the employee did not talk at all 6. What could the employee/firm have done to increase your level of satisfaction with the encounter? They should treat the customer better. The service is seriously so bad. I feel that they are actually really rude. 7. What improvements need to be made to this service system? Actually the service system is not bad because it is a self- service restaurant. But I think the company should tell the employees to have more interaction with the customers to make a good and friendly impression. 8. How likely is it that you will go back to this service firm? Very Unlikely 1 2 3 4 5 6 7
  • 5. Very Likely Please provide the reason(s). I will for sure go back to this restaurant in the future. I will stop coming to this place if there is a new restaurant that make the same type of food. Even though the service was super bad, but the food was delicious. I think that they have the best fry chicken in the bay area. Service Journal Entry Form Your Name: Name of Firm: Traders Joe Type of Service (industry): Date of Encounter: Time of Encounter: AM/PM 1. How did the encounter take place (e.g., in person, by phone, via a self-service technology)? 2. What specific circumstances led to this encounter? 3. Exactly what did the firm/employee say or do? 4. How would you rate your level of satisfaction with this encounter? (Circle the most appropriate number). Very dissatisfied
  • 6. 1 2 3 4 5 6 7 Very satisfied 5. What exactly made you feel this way? 6. What could the employee/firm have done to increase your level of satisfaction with the encounter? 7. What improvements need to be made to this service system? 8. How likely is it that you will go back to this service firm? Very Unlikely 1 2 3 4 5 6 7 Very Likely Please provide the reason(s).
  • 7. ______________________________________ Service Journal Entry Form Your Name: Name of Firm: Minh’s Auto Body Type of Service (industry): Car repair shop Date of Encounter: September 4, 2015 Time of Encounter: 9 AM 1. How did the encounter take place (e.g., in person, by phone, via a self-service technology)? In person 2. What specific circumstances led to this encounter? I bought a new car part for my car and need to ask someone to paint it and install it on my car 3. Exactly what did the firm/employee say or do? On the 3rd of September the employee texted me to drop off the car at around 9 in the morning and come back again to take the cars around 1 PM. When I arrived there, I asked them if I could stay in their office to wait for my car and he scold me and asked me to leave and come back again later. 4. How would you rate your level of satisfaction with this encounter? (Circle the most appropriate number). Very dissatisfied 1 2 3
  • 8. 4 5 6 7 Very satisfied 5. What exactly made you feel this way? I feel so surprised, angry and annoyed 6. What could the employee/firm have done to increase your level of satisfaction with the encounter? Even though before he texted me already to come back couple of hours after I drop the car, but still, he shouldn’t have scold me. I asked him politely and in a friendly manner. He should and must have response the same way. 7. What improvements need to be made to this service system? They are handling too many cars at the same time. This makes the work become slower. 8. How likely is it that you will go back to this service firm? Very Unlikely 1 2 3 4 5 6 7 Very Likely Please provide the reason(s). Because it was the cheapest price that I could find after coming to couple of car shops and also the result of the job was excellent. I will definitely come back
  • 9. again in the future. Service Journal Entry Form Your Name: Name of Firm: Citibank Type of Service (industry): Bank Date of Encounter: August 30, 2015 Time of Encounter: 2 PM 1. How did the encounter take place (e.g., in person, by phone, via a self-service technology)? Self-service technology 2. What specific circumstances led to this encounter? I lost my debit card 3. Exactly what did the firm/employee say or do? There was no employee 4. How would you rate your level of satisfaction with this encounter? (Circle the most appropriate number). Very dissatisfied 1 2 3 4 5 6
  • 10. 7 Very satisfied 5. What exactly made you feel this way? I really feel dissatisfied with this encounter because at that time I was so panic. I wanted to talk to somebody directly because I was so scared that other people use or take the money inside from debit card. 6. What could the employee/firm have done to increase your level of satisfaction with the encounter? I think that the firm should hear us talking first before the machine gives us too many choices 7. What improvements need to be made to this service system? Change the machine to the real person 8. How likely is it that you will go back to this service firm? Very Unlikely 1 2 3 4 5 6 7 Very Likely Please provide the reason(s). Because this is the only bank account I have in the United States
  • 11. Chapter 12 After reading this chapter, you should be able to: • Recognize the differences between the two basic forms of advertising: product and institutional • Describe the steps involved in developing an advertising campaign • Know various ways to develop an advertising budget • Understand the value of alternative media No element of the marketing mix has been more visible in health care than advertising. In recent years the growth of resources committed to this aspect of the marketing mix has been substantial. In 2005, more than $25 billion was spent annually on health care advertising. Three-quarters of this money was directed toward physicians. However, the fastest-growing segment of health care advertising is direct-to-consumer marketing. Direct-to-consumer advertising in health care was $4 billion in 2004, 15 times as much as the roughly $260 million spent a decade ago.1 “Advertising” may be defined as any directly paid form of nonpersonal presentation of goods, services, or ideas by an identified sponsor. The key aspects of this definition are: (1) that it is paid, which distinguishes advertising from publicity; and (2) that it is nonpersonal, which separates advertising from personal selling. Concerns have long been raised regarding health care advertising. As seen in
  • 12. Table 12-1, consumers have mixed feelings toward this aspect of marketing. In two separate studies, Andaleeb assessed consumers’ attitudes toward hospital advertising on a range of issues. The higher the value, the stronger was customers’ agreement with the statement in Table 12-1. Although consumers see advertising as increasing health care costs, they consider it to be a somewhat useful tool in choosing a hospital. Consumers also recognize that hospitals are really not different from other prod Table 12-1 Attitude Toward Advertising Statement Mean Hospitals should not engage in advertising 3.09 Ads help win clients 2.92 Hospital ads increase costs 4.13 Hospitals with good reputations don’t need to advertise 4.02 I don’t trust hospitals that advertise 2.40 Hospital ads are no different than other products 3.52 To stay in business, hospitals need to advertise 2.27 Ads are useful in choosing hospitals 3.40 Hospital ads are often misleading 3.15 Hospital ads often exploit people’s anxieties 3.18 Hospital ads make people aware of health-related issues 2.41 Scale was “1” very strongly disagree to “5” very strongly agree Source: Adapted from Syed Saad Andaleeb, How Consumers View Hospital Advertising, Journal of Hospital Marketing, Vol. 8, No. 2, 1994, pp. 73–85. Reprinted by permission of the publisher, Taylor & Francis, www.informaworld.com. ucts, which may suggest some receptivity toward health care advertising. However, consumers are somewhat distrustful of hospitals that do advertise and question why those with good reputations need to engage in this practice. This
  • 13. chapter will discuss the value, the strategy, and tactics that make advertising a legitimate part of the marketing mix. n Common Classifications of Advertising There are many forms of advertising; the two most common classifications are product and institutional. Product advertisements focus on a particular product or service, whereas institutional advertisements build up or enhance an organization’s image rather than a particular product. There are several variations within each form of advertising. Product Advertising Product advertising can assume one of several forms: informational, competitive, or reminder. Informational advertisements are used in the early stage of a new product or service introduction. These advertisements help to explain the service, how it can be accessed, or its objectives. Competitive product advertisements are persuasive—they try to generate selective demand for the organization’s service over that of competitors.2 In traditional industries, this form of advertising compares competing products. Competitive advertisements are not that common in the health care industry. A final version of product advertising is purely reminder. For example, some hospitals have implemented nurse information lines so consumers can talk to a nurse regarding a medical question. When necessary, these nurses will provide callers with the names of health care providers to call for further examination or consultation. The
  • 14. University Health Care System of Augusta, Georgia, offers an “Ask-A-Nurse” health service center, a 24-hour, 7-day-a-week help line staffed by registered nurses with at least 5 years of experience. These nurses can assess symptoms and direct a caller to emergency services or make a physician referral, as necessary (www.universityhealth .org). Institutional Advertising Institutional advertising is frequently used in health care. These advertisements are used to build good will and to enhance the public’s image of a particular organization. There are several variations of institutional advertising; some introduce or announce the opening of a new company or facility, some compare programs, and some advocate public policy positions. One issue of concern among the public is that of having surgery done on the wrong limb. From January 1995 through September 2003, 278 wrong-site surgery cases were reported to the Joint Commission; 35% of these cases were orthopedic in nature. To address this issue, the American Academy of Orthopedic Surgeons (AAOS) formed the “Sign Your Site” task force in 1997 to address this issue and then mounted a major national institutional advertising campaign, shown in EXHIBIT 12-1, to heighten public awareness of the importance of participating in surgical site marking. “Sign Your Site” became a Joint Commission mandatory intervention for preoperative procedures in 2004.3
  • 15. Institutional advertisements can be competitive, such as when advertisements compare two or more organizational forms, showing one to be more effective than the other(s). In health care, this variation often appears with advertisements touting prepaid health care plans versus more traditional indemnity insurance programs. As in product advertising, institutional advertising occasionally serves as a reminder to reinforce previous impressions in the target audience. Another common form of institutional advertising is referred to as advocacy, in which an organization publicizes its position regarding a particular issue. For example, Developing the Advertising Campaign The development of an advertising campaign begins with the preparation of a media plan, which outlines the analysis and execution of the advertising campaign. Define the Target Audience Essential to a successful media plan is the first step—a definition of the target audience. The target audience is the group or groups that the organization is trying to reach. This step is an organizational decision, determined by earlier market research and based on prior market segmentation decisions. The more detailed this section of the media plan, the easier subsequent decisions will be regarding placement of advertisements and advertising copy design. As in the earlier discussion of market segmentation, a target audience description will include demographics and, possibly, attitudinal profiles and lifestyle descriptions. Upon defining the target audience, the
  • 16. media plan must then specify the advertising campaign’s objectives, budget, message, communication program, and manner for evaluation. These steps are shown in FIGURE 12-1 and are described in detail in the following pages. Determine the Advertising Objectives Advertising objectives are critical to any successful campaign. In setting objectives, it is best to consider how advertising works. Consumers do not view an ad and then buy a product or use a service. Rather, advertising facilitates moving consumers along a sequence of steps that have been described as a hierarchy of effects—the stages a buyer moves through from first seeing an advertisement ultimately to buying the product or using the service.4 These stages include: awareness, interest, evaluation, trial, and adoption. Awareness This level of the hierarchy is necessarily the first. The consumer must recognize the advertisement or be cognizant of the fact that it exists. Canonsburg General Hospital of Canonsburg, Pennsylvania, selected consumer awareness as the advertising objective for its newly remodeled mammography center. The hospital conducted a 5-week advertising campaign in several newspapers. Advertisements were also reprinted as flyers distributed to new residents.5 Awareness was also the advertising objective for the University Hospital in Los Angeles, California. USC University Hospital and the USC Norris Cancer Center are well known in medical and clinical arenas, but not among the
  • 17. general population. The academic medical center built an awareness campaign around its athletic teams’ “Fight On” slogan and the key challenges facing many of its patients. The campaign was tested in the Los Angeles metropolitan area prior to being launched, and the positive response was overwhelming. The campaign included an integrative promotional strategy that involved: • A 6-month radio campaign on 14 radio stations throughout the Los Angeles listening area • Digital banner ads on the WebMD and Los Angeles Times Web sites • Print ads in the Los Angeles Times and local newspapers throughout Los Angeles and Orange counties • Online paid and organic search promotion through Google AdWords and the Yahoo! and Bing search engines6 Determine Target Audience Specify Objects Determine Budget Specify Communication Program Evaluate FIGURE 12-1 Developing the Advertising Campaign Interest After developing initial awareness, a consumer must have some inclination to seek additional information about the product. The organization’s goal at this level of the hierarchy is to provide some information that will motivate further deliberation or action. Evaluation Before consumers will buy a product or seek out a service from
  • 18. a particular provider, they must compare that product or service with other available options. Organizational advertising must include dimensions that are important to the target market. Trial The initial use of a service is called trial. Advertising can only move a person to this level of the hierarchy. In order to have repeat purchases, a service must meet the customer’s expectations. No amount of advertising can correct a bad experience with a hospital or medical group. Adoption This is the highest level of the hierarchy and the ultimate goal of advertising—the stage at which the customer becomes a regular user. If trial was satisfactory, reminder advertising plays an important role in this level of the hierarchy of effects. Determine the Budget Several methods can be used to determine the appropriate amount to spend on advertising. Because there is no absolute formula, these methods tend to include one of the four following categories: percentage of sales, competitive parity, “all you can afford,” and objective and task. Percentage of Sales This method involves determining a fixed percentage of sales or revenue to use as the basis for advertising allocations.7 For example, a hospital might decide that 1.5% of last year’s net revenue will be allocated to the current year’s advertising. The advantage of this method is its simplicity. It also provides some fiscal safeguards in tying
  • 19. advertising expenditures to organizational resources. In spite of these advantages, however, this method has an inherent flaw; it implies that sales or revenue causes advertising. Advertising should be seen as contributing to sales, not the other way around. Using this method, a company would reduce advertising expenditures when sales drop. In fact, this may be the period when additional monies must be spent to generate new sales. Hospitals that have large fixed-asset bases cannot afford to exist with large, idle capacity.8 Competitive Parity Competitive parity is common in industries where there is a significant amount of trade data. The hospital sets the advertising budget based on industry norms or what it perceives the competitor is spending. Logic demands that an organization consider the competitor when determining any advertising budget.9 Table 12-2 shows an example of such competitive comparison data collected in a recent study by Sutter Health of Sacramento, California, a health system consisting of hospitals, physicians, and a managed care plan. This study was conducted to determine norms regarding system advertising spending. Except for consideration of the competitor, the logic of this method is weak. It may well be that the competitor is trying to reach a different target market or has different goals. Moreover, this method assumes that the competitor knows what it is doing. All You Can Afford
  • 20. This approach is obvious by its name. Common to organizations that really don’t believe in the value of advertising, it involves first allocating the budget to all important operations within the organization. If any money is left over, it might then be allocated to advertising.10 Although this method might address an organization’s fiscal reality, it could lead to too much, as well as to too little, being spent on advertising. No consideration is given to the objectives of these methods. Objective and Task This fourth method is the most appropriate way to determine the advertising budget. The objective and task approach involves setting objectives along the hierarchy of effects and determining the tasks necessary to accomplish these objectives. The costs of these tasks ultimately determine the final budget needed.11 EXHIBIT 12-3 offers examples of advertising objectives for each level of the hierarchy. In using this method, for example, a marketing director must decide how to accomplish the first objective of getting referral physicians in Michigan’s Upper Peninsula to be aware of the hospital’s helicopter service. In this instance, the director must determine the following tasks and costs: One physician referral brochure (6000 copies at $2 each) $12,000 One full-page advertisement in Michigan Medical Society monthly magazine 1,500 One open house at medical center for area physicians 6,000 Total cost $19,500 The total cost is the proposed budget. At this point, however, the marketing director determines how much the organization can actually afford and
  • 21. adjusts the budget accordingly. Any further adjustment in the budget must be reflected in what can be accomplished regarding the objectives. The tasks will be redefined, and the budget subsequently adjusted. In examining the objectives listed in Exhibit 12-3, it is important to note the ingredients for good, useful objectives. All of these objectives specify the target market. Each objective is time-based, whether it is 30 days or 3 months. Finally, each objective is measurable. This last component is essential in order to prove the value of the campaign. In health care marketing, a common criticism of advertising relates to whether it actually achieves its objective. This concern is a result of not beginning with a measurable objective. Develop the Message The third step in designing the advertising program is the development of the message. Marketing research is essential at this stage to determine the attributes that are important to the consumer. In developing these messages, varying appeals are often used, including rational, emotional, and moral/social appeals. Rational These messages are directed at distinct functional attributes of the product. The purpose is to explain the value in using the particular service. Emotional An increasingly common advertising appeal is emotion, with fear and humor being used most often.12 The use of fear in health care advertisements has some troubling ethical dilemmas, as noted in an earlier chapter. In fact, the
  • 22. Alliance for Health Care Strategy and Marketing, which was the major professional association for health care marketing professionals in the late 1980s and early 1990s, developed a set of ethical guidelines for advertisers (reviewed later in this chapter). The group specifically noted that advertising should not use emotional appeals to take advantage of individuals who are vulnerable due to health care needs.13 Within limits, however, fear appeals can be effective. One study used fear appeals in advertisements for AIDS prevention for college-age students. Results of the study showed that an ad with a strong fear appeal generated tension, energy, and a more positive cognitive response than the milder version of the advertisement.14 Moral/Social Appeals These messages focus on causes or issues. Hospitals mount advertising campaigns to solicit funding for their medical foundation research. Likewise, the American Red Cross appeals to the community for participation in blood donation. Pretesting Any good advertising message should first be pretested. Pretesting involves assessing advertising copy options before their general use. Effective pretesting requires that it be conducted with the intended target audience. In Chapter 5 on marketing research, focus groups were discussed as one datagathering methodology. Focus groups are used extensively in the early stages of advertising development and pretesting. Initially, focus groups can be used to identify
  • 23. the important dimension for the advertisements and alternative appeals that could be utilized. Other pretesting methods can be implemented once a draft version of the advertisement is created. Pretests can be conducted to ensure that the target audience can interpret the advertisement, is interested in it, and prefers it over other versions. An advertisement can be pretested in several ways, such as through portfolio tests, jury tests, and theater tests. Portfolio Tests This form of pretesting involves testing alternative copy. The test advertisement is placed in a grouping with other sample advertisements. Consumers are then asked to review all the samples. Upon completing the review, consumers are then asked to judge the advertisements on a series of dimensions such as interest, attention, likability, and informative value. When Fallon Health Plan in Worcester, Massachusetts, initially embarked on its first health maintenance organization (HMO) advertising campaign, it pretested four different advertisements among consumers who belonged to traditional indemnity plans. In conducting the portfolio test, the Fallon HMO also showed variations of the advertisements to subscribers of a competing HMO Jury Tests In this version of a pretest, the advertisement or variations are shown to a panel of consumers. Similar to a portfolio test, researchers solicit consumer reactions on several dimensions in the advertisements.
  • 24. Theater Tests The most expensive and elaborate form of pretesting is the theater test. For example, consumers are invited to a special viewing of a new television show or movie. Sample advertisements are interspersed throughout the show. When the viewing is over, consumers are asked to rate the show and provide reactions to the advertisements. In the most sophisticated theater tests, consumers can react immediately to the commercials and record their intensity of like or dislike by using a handheld device while they view the advertisement. Regardless of the degree of sophistication applied to the pretest, it is an essential step in advertising. In health care, pretesting often involves showing the advertisements to the physicians on staff or in the medical group to gain their approval. This step is important to ensure that any advertisement intended for the consumer be factually correct regarding any intervention or treatment discussed. Yet, unless the advertisement is directed to other physicians outside the organization, this kind of pretest would not be entirely valid. The advertisement also must be pretested with the target audience of intended consumers. Specify the Communication Program Once an advertisement’s message is developed and pretested, the next step in the advertising campaign is to select the appropriate medium and vehicle for delivering the message to the target market. Related to this decision is determining the timing of the
  • 25. messages to be communicated. Medium refers to the form of communication selected, such as newspapers, radio, television, direct mail, or magazines. The vehicle is the advertising alternative chosen within each medium. For example, an advertiser might use magazines as the medium and Modern Healthcare magazine as the particular vehicle within that medium. In selecting the appropriate medium, two objectives often conflict within the constraints of any advertising budget. These are the goals of reach and frequency. Reach refers to the unduplicated audience that an advertising vehicle will deliver. The more people exposed to the message, the broader the reach. Frequency refers to the number of times the same person receives a message within a defined time period. The value of frequency was best shown by the advice to prospective advertisers from the 1800s shown in Chapter 4. Ideally, a company tries to maximize the reach and frequency of its advertising; however, based on definitions alone, it is easy to see that this would incur significant cost. In addition to reach and frequency, advertisers must also consider the amount of waste, which refers to the people reached by a particular medium who do not belong to the intended target market. A magazine, for example, that counts family practitioners among its subscribers as well as pediatricians may have wasted coverage if the target is only pediatricians. The price of most media advertising space is based on the size
  • 26. and the purchasing power of the audience. The larger the audience of a radio station, the greater the charge to advertise on that particular station. Magazines such as Architectural Digest that target an upscale audience might charge more money for advertising than Backpacker. Scheduling After the organization determines the balance between reach and frequency, it must decide the timing for its messages. There are many variations by which an advertising campaign can deliver messages; the three most common are seasonal, steady, or flighting. Seasonal Some products and services have a seasonal pattern to their demand. For example, cold medicines have heavier demand in the winter months; a travel clinic might experience greater demand in the summer months. Advertising, therefore, is scheduled in heavier amounts at the onset of the peak demand period. Steady This schedule involves maintaining the same level of advertising exposure through the selected time period. Physician referral lines sponsored by hospitals often follow this scheduling pattern. On any given day, any number of people might need to avail themselves of this service. Maintaining a constant level of product or service awareness is necessary to reach each new consumer entering the adoption stage of the market. Flighting A common advertising schedule is called flighting, which involves a heavy amount
  • 27. of advertising for short time periods. FIGURE 12-2 shows three diagrams to represent flighting and two alternative scheduling patterns that are discussed below. The flighting approach has distinct periods when there are a large number of exposures. The logic of this approach is that advertising will have sufficient carryover effect to maintain awareness when there is little or no advertising. The risk of losing product awareness is represented by the gaps before the next burst in expenditures. An alternative scheduling strategy is concentration, whereby a company spends its advertising dollars and achieves exposure within a defined, relatively short time period. Or, an organization can follow a pulsing approach, in which advertising expenditures occur at a constant level with occasional, short, heavy expenditures.16 Picking the Right Medium Advertisers have a variety of media from which to choose to place their message. Each of these media has distinct characteristics that must be assessed in the final advertising plan. Television Of all media available, television has the advantage of communicating sight, sound, and motion. These components afford the potential advertiser significant flexibility in the creation of the advertising copy. Today, almost 98% of all homes in the United States have television, providing the potential for enormous reach. Television’s major disadvantage is its cost. Prime time spots can easily exceed $100,000. The production
  • 28. costs of television commercials also add significantly to the budget expense. Except for large national companies such as Cigna, Prucare, or Blue Cross Blue Shield, national advertising costs are not part of the average budget for most health care organizations. In recent years, however, the advancement of local cable channels has made television advertising accessible and affordable for local advertisers such as hospitals or medical groups. The challenge of local market television advertising is in identifying the correct television station that will reach the desired target audience. As more households are wired for cable television, the number of station alternatives expands dramatically to 20, 40, or, in some markets, 80 channels, making vehicle selection all the more difficult for the local advertiser. Local television advertising is generally purchased by the time of the day rather than by a specific program. Because of this difference with national network advertising, local advertisers must again know the viewing habits of their target market at various times of day. Another disadvantage of television advertising is the degree of clutter or competing messages that exists. It is difficult for one advertisement to stand out when so many commercials are packaged within a station break. Radio There are 10 times as many radio stations as there are television stations in the United States. Since the mid-1970s, the radio’s major growth has been on the FM rather than the AM band. A wide array of formats and programs make radio
  • 29. a highly segmented medium for potential advertisers. Also, on a cost basis, radio compares very favorably to television. The average circulation cost-per-thousand for radio is $4. The cost of producing a radio commercial in local markets is often included in the rate charged to the advertiser. The production of radio ads can usually be completed in a short time period, and St. Joseph’s Hospital in Milwaukee has capitalized on this advantage. The hospital ran radio advertisements highlighting the birth of babies at its facility. The advertisements began with an announcer reporting the news of the day, followed by announcements of recent births at the hospital.17 A final major advantage of this medium is that it reaches consumers out of their home. Peak listening times for radio are the morning and evening drive times. Radio’s major limitation is its lack of a visual means of communication. Also, because so many radio stations and varying formats are available, a potential advertiser has almost too many options. The advertiser must also accurately identify the radio station that attracts its particular target audience. Newspaper Of all media available, newspapers receive the most advertising dollars. In health care, this medium has been the most popular because the strength of newspapers is their coverage of local markets in which most health care organizations compete. Of all media, newspaper advertising is typically the best for generating immediate response.
  • 30. Coupons and special offers are common to newspapers. Newspapers are the medium of choice for physician referral lines or nurse information lines. Another advantage of newspapers is their cost. Newspaper rates are reasonable compared to other mass media like television, making it the medium of choice for local advertisers. Although in recent years, with the advent of cable television, the rate advantage of newspapers has been somewhat negated. The segmentation possibilities in local newspapers are relatively limited. In recent years, however, most large metropolitan newspapers have developed zone editions that target specific geographic areas within their circulation. The New York Times, for example, has regional editions as well as a national edition sold in airport terminals throughout the United States. An additional advantage of newspapers is the short lead time required to place an advertisement. A hospital often will only need to wait a day or two before its advertisement can be run in the local newspaper. Newspapers do have some disadvantages. Newspaper readership tends increasingly to be concentrated among older consumers. To overcome this problem, many local newspapers have followed the pattern of USA TODAY, using a glossy four-color approach and succinct writing to appeal to a younger, more visually oriented audience. Magazines Few media have grown as dramatically in recent years as magazines.18 A vast array
  • 31. of specialized publications enable the organization to target a specific market segment. Environmentally concerned consumers read Garbage, outdoor enthusiasts might peruse Backpacker, and health-oriented consumers might subscribe to Men’s Health, Organic Gardening, Women’s Health, or a host of others. Within the magazine industry, competition for advertising dollars is fierce. Like newspapers, many national publications have developed both zone and demographic editions targeted to particular subsets of their readership. Thus, advertisers who know their target market are able to spend their advertising dollars efficiently. Magazines have other advantages beyond the selectivity that they can deliver. Many publications have a long shelf life, meaning readers will keep them for weeks,months, or, in the case of National Geographic, years. An advertisement in these publications may be read several times over the course of a publication’s shelf life. An additional advantage of magazines is their excellent reproduction capabilities for advertisements. The quality of the printing and color separation in magazines far surpasses anything achieved to date by newspapers. Like all other media, however, magazines have some disadvantages. The sheer number of magazines makes it more difficult to select the specific publication in which to advertise. Some publications also have a long lead time for the placement of an advertisement, often requiring delivery of ad copy 4 to 6 weeks prior to publication. Magazine advertisements thus must be used to support a longer
  • 32. running campaign rather than to generate an immediate response. Outdoor Advertising Outdoor media consist of a couple of variations, namely billboards or transit advertisements. Because of space and time exposure limitations for these media, outdoor advertising is typically viewed as a supplemental medium to support exposures in other media. Outdoor advertising is useful for its reminder appeal or in the introduction stage of a service to generate brand name or service recognition. This medium has also been useful in generating calls to referral lines or health information lines.19 According to the Outdoor Advertising Association of America, the health care industry is the fastest-growing segment of its business.20 The major advantage of outdoor advertising is the repetition it can provide through broad exposure of the message. Yet, its limitations are significant in terms of the degree of selectivity and the message that can be communicated. As a medium, outdoor advertising has an image problem. Some believe that billboards, in particular, are a form of visual pollution. Some communities have placed constraints on the presence and size of billboards. Four states (Alaska, Hawaii, Maine, and Vermont) have banned all outdoor billboards. Fewer constraints have been placed on transit advertising. These ads are common in larger communities that have public transportation. Direct Marketing One of the most targeted media choices available is direct mail.
  • 33. With increasing computer sophistication, many direct advertising pieces can make a highly personalized appeal to the recipient. Critical to a successful direct mail approach is having a good list of prospects. There are two approaches most companies can use. The first is to develop their own refined lists of customers or prospects. Increasingly, companies are using database marketing. With database marketing, companies develop detailed profiles of their target market and then access names from their databases based on qualifying variables such as income, age, or prior purchasing of particular products. A second approach is to purchase a list of prospects from a commercial list broker who can provide a customer database based on several classifications. In a recent hospital survey, the prevalence of direct marketing efforts was clear. Almost 90% of hospitals surveyed indicated that their direct marketing budgets had increased. In citing their reasons for using this medium, hospitals reported four common objectives: 1. To increase hospital awareness 2. To generate leads for current programs 3. To promote special events 4. To enhance a facility’s image21 In 2007, the Cleveland Clinic conducted more than 710 individual direct mail campaigns, most often targeted at people who had moved within 25 miles of its service area. The Clinic measured call volumes and referral rates as well as transfers of medical
  • 34. records. The Clinic found that the program paid off with a 5-to- 1 return.22 Direct mail’s limitations are its image and cost. Many consumers regard direct mail as junk mail. Consumers often get large amounts of direct mail material on a daily basis, so it is difficult to get one piece to stand out from the competition. Direct mail’s cost must also be considered as its level of sophistication increases. Historically, the major cost of direct mail was postage. However, production costs must also be factored into the cost equation. To attract attention, direct mail marketers have significantly increased the use of color, higher-quality paper, and multiple mailings to gain attention, all of which add greatly to total cost. Internet Advertising The Web is increasingly giving advertisers new and exciting ways to advertise. Online advertising provides many advantages to potential advertisers. The organization can track the number of users who visit a site, how many times a site has been viewed, and how deeply a site was looked at by a visitor. Did the person look at the first page of the medical group’s site? Or, did the visitor also look at the page of the orthopedic department and the spine center services? A study released by Outsell found that online advertising was projected to grow by 17.9% in 2007, compared to a 5.8% growth rate in advertising overall.23 The following are the most common Internet advertising methods: • Banner ads—rectangular graphics at the top or bottom of a
  • 35. Web page. Most receive less than a 1% click-through rate. • Button ads—small banner-type advertisements placed anywhere on a page. • Pop-up ads—screens that appear while a Web page is loading or after the Web page has appeared. Today, most Web browsers block many of these pop-ups, which limit their effectiveness. • E-mail—The sending of unsolicited e-mail is called spamming. Some states have passed laws against spamming. Although e-mail is an easy and inexpensive way to communicate with prospective customers, it is considered to be intrusive. Evaluate the Response Testing of advertising effectiveness occurs at two stages. As discussed earlier, the first form of evaluation—pretesting—ensures that the target audience receives the message in the way it is intended. Pretesting also determines preference and attention-getting value. After selecting the media and placing advertisements, most organizations conduct tests to determine the effectiveness of the marketing campaign. Tests vary and are based on the media used for advertising. Companies often assess whether the advertising campaign has resulted in a change in attitudes toward the product or service being promoted through the use of surveys and posttest attitude tests.24 Broadcast A common form of posttesting for television or radio is day- after recall. Typically, after
  • 36. a commercial is aired on television or radio, the advertiser conducts telephone surveys to determine whether people remember the advertisement. Recall can be either aided or unaided. With unaided recall, the telephone interviewer might ask, “Have you seen any advertisements on television for a women’s health program?” The recall of the particular hospital’s program could then be assessed. With aided recall, the interviewer would ask, “Have you seen any ads lately for St. Mary’s Women’s Health Center?” Print In the magazine industry, posttest scores are often collected through a syndicated data service referred to as Starch. Roper Starch Worldwide conducts personal reader interviews to determine the number of people who read a particular issue and whether they saw the advertisement or the signature and whether they read the ad. Starch provides companies with scores for the advertisements for the issues in which they were placed. Direct Marketing The advantage of direct marketing advertising is that customer response can be directly measured through follow-up inquiries or purchase orders. This direct form of measurement has led to the medium’s growing appeal. Internet The advantage of the Internet is that it can be easily tracked with click-through to determine how deeply someone is looking at the Web page or by counting how often
  • 37. the page is viewed. However, it is difficult to measure the viewer’s retention of the information presented. The Web 2.0 and Social Media As discussed in Chapter 11 on promotion, the line between advertising and communication is blurring. Traditional media may be too narrow for the health care organization’s promotional plan. Health care organizations should expand their reach by adopting Web 2.0 strategies, including the use of social media. As shown in EXHIBIT 12-4, most hospitals have been slow to use social media as a marketing and communication tool. However, as discussed below, a number of health care organizations are embracing new media. Blogging In some ways, blogging is like keeping a personal diary online. The number of blogs grew from 8 million in 2005 to 133 million in 2008.25 A survey by the Pew Internet and American Life Project in June 2009 found that 43% of all Internet users (representing 32% of U.S. adults) reported reading someone else’s online blog, although few are blogging about health care (5%).26 Two hospitals, High Point Regional and the University of Pennsylvania Health Systems, entered the “blogosphere” fairly early. High Point found that its blog was consistently one of its top viewed Web pages.27 Facebook Facebook (www.facebook.com) is a social networking Web site. All that is needed to join is an email address. Launched in February 2004, Facebook has
  • 38. grown rapidly. Individuals use the site to connect with friends and relatives, and companies use it for marketing purposes. In 2008, Merck launched a Facebook page to promote Gardasil, a vaccine that can protect against human papillomavirus (HPV). Bayer Aspirin launched a Facebook page with a interactive quiz for women to gauge their risk of heart disease. Podcasts Podcasts are audio files that have been converted to an MP3 file or other audio file format for playback on a digital music player. Podcasts have evolved to allow for playback of videos as well.29 Akron Children’s Hospital in Akron, Ohio, was an early adopter of the podcast format. Competing against major medical centers in Cleveland, Columbus, Cincinnati, and Western Pennsylvania, Akron must compete in a congested media market to get its message out to potential patients, parents, and referrers. Its first podcast was of an adult patient who was treated at Akron Children’s for a congenital heart disease. 30 Since its initial venture into podcasting, Akron Children’s Hospital has developed an extensive library of podcasts on a variety of topics, including parenting, children’s health education, and health trends.31 Twitter Twitter (www.twitter.com) allows people to send messages fewer than 140 characters in length. Messages can be accepted from a variety of different sources, including computers, cell phones, and mobile devices. In a rather
  • 39. interesting online article, Phil Baumann proposed 140 possible uses of Twitter in the health care arena, including fund-raising, census management [market research], recruitment of health care staff, publishing of health-related news, checking hospital rating with health care consumers, real-time satisfaction surveys with consumers, arranging appointments with health care providers, hospital reputation monitoring, developing stronger patient–provider relationships, broadcasting infant care tips, and issuing dietary tips. 32 The University of California at San Francisco uses Twitter to notify the public when new content is available on its blog or on its Facebook page.33 Integrated Advertising Campaigns The challenge for marketers in today’s Web 2.0 environment is to create and develop an advertising and communication plan that integrates the organization’s online strategy and the traditional media campaign. Whether the health care organization is a solo practice, hospital, or major academic medical center, the goal is to determine the best ways to reach patients, referral physicians, or other target markets and to create an ongoing dialogue between them and the organization. n Working with Advertising Agencies Many hospitals and health care organizations do not have the in-house resources needed to develop their own advertising materials. Those that do not can hire the services of an advertising agency. Advertising agencies vary in size and in the scope of the functions that they perform. A health care organization must identify the types
  • 40. of services needed to select the appropriate agency. Alternative Advertising Agencies The most comprehensive advertising agency, the full-service agency, provides all the elements necessary to assume the total advertising function. These organizations typically offer sales promotion, public relations, direct marketing, consulting on design and identification, and even television programming. The full-service agency typically has several departments organized around creative services, account services, marketing, and administrative services. The creative department is responsible for producing all the advertising design and copy. Account services deals with the client—the health care organization. This professional has to understand the health care business and know how to communicate the client’s goals and objectives to the creative department. The purchasing of media space and time is the responsibility of the marketing services department. Full- service agencies often have marketing research functions residing within this area. The administrative and financial department handles billing and agency management. Opposite of the full-service agencies are the boutique agencies. A boutique agency may offer a limited range of services, such as creative services or media buying services, or will act as a contractor to put together the range of services needed by the organization. Agency Compensation Advertising agencies are compensated by fee or by commission.
  • 41. Agencies paid by commission are, in effect, being paid by the media. In commission compensation, the agency places $200,000 of advertising in selected publications and in television. The agency keeps 15% of this billed amount as standard compensation. The media then provides $200,000 worth of advertising space. Although the client is paying the agency, the media is, in effect, subsidizing the commission by providing the full amount of media space or time. A major buyers’ concern about the commission system is that it provides agencies with an incentive to recommend more advertising than is necessary. Agencies have also felt that the commission-based compensation system may not be providing them with a fair return for the work they provide to a client. As a result, in recent years commissions have declined and some agencies have moved to a fee-based structure.34 The fee is agreed upon by the agency and the client and is based on the amount, type, and scope of work being provided. Ethics in Advertising Few aspects of marketing were of greater concern to health care professionals than the onset of advertising. Because of the sensitive nature of health care and the often precarious position of the health care buyer, there is heightened sensitivity to the use of this tool. The Alliance for Health Care Strategy and Marketing developed a set of voluntary guidelines regarding the concerns and issues that should be considered in
  • 42. health care advertising, shown in EXHIBIT 12-5. EXHIBIT 12- 6 shows the ethical guidelines issued by the American Society of Metabolic and Bariatric Surgery. Given the large growth in bariatric surgery and the advertising associated with it, the organization felt the need to issue such standards.35 Although advertising has become more common in health care, it still generates concern and criticism. In the March 28, 2005, issue of the Annals of Internal Medicine, a study was published that condemned the trend among respected academic medical centers of using advertising strategies to promote services such as Botox and Lasik and fertility treatments. The study analyzed newspaper ads for 17 of the country’s best-known academic medical centers and concluded that the promotions placed profits before patient interests. The study underscored to a large degree that the information aspect of advertising is still not fully appreciated, but also highlighted that in health care, sensitivity is required with regards to the promotional claims made in any advertisement.36 The issue of ethics has extended to the Web. The Swiss-based Health on the Net (HON) Foundation, which has been in existence for 12 years, has an eight-point code of ethics. If a health information provider abides by HON’s code of ethics, it receives approval from the nonprofit to display the HON logo. In 2003, more than 3000 Web sites received such approval (including the Mayo Clinic) and displayed their compliance with HON’s ethical guidelines.37
  • 43. Nonprofit Concerns One final aspect of health care advertising that deserves attention is the matter of an organization’s nonprofit designation. Federal, state, and local government agencies have examined whether advertising by these organizations is excessive. Twenty of Pennsylvania’s 224 nonprofit hospitals were required to provide services in place of property taxes to various taxing agencies after being judged as acting more like forprofit organizations in light of their advertising expenditures.38 n Conclusions Advertising is an important ingredient of any health care organization’s promotional strategy. Developing an effective media plan begins with a specification of its objectives. From this foundation, a budget and appropriate tactics for media selection and scheduling can be determined. Any effective advertising requires that there be a mechanism both to pretest and posttest the campaign. Because of the serious nature of health care and the vulnerabilities of consumers engaged in the selection of health care services, significant attention is due to the ethical dimensions of the advertising strategy ultimately implemented. Case Study—Memorial Health System CPOE Implementation HCS/483 Version 4 1 Case Study—Memorial Health System CPOE Implementation Memorial Health System is an eight-hospital integrated health
  • 44. care system in the Midwestern United States. The health system has two downtown flagship tertiary care hospitals, each licensed for more than 700 beds, located in the two major metropolitan areas served by the system. The remaining six hospitals are community-based facilities, ranging in size from 200 to 400 beds. These hospitals are located in the suburban and rural areas served by Memorial Health System. Four years ago, the system’s board of directors approved a multi-million-dollar initiative to install an enterprise-wide clinician provider order entry (CPOE) system intended to dramatically reduce medical errors. Today, the system is far from fully implemented, and, in fact, has been removed from all but one of the two tertiary care facilities, where it remains in pilot adopter status. At the time, the board approved the CPOE initiative, the project was championed by Fred Dryer, the CEO, and was closely supported by Joe Roberts, the chief information officer (CIO) of the health system. Even during its proposal and evaluation by the board, the project was considered controversial by some of the health system’s stakeholders. For example, many of its physicians, who are community-based independent providers, were adamantly opposed to the CPOE system. They worried that their workload would increase because CPOE systems replace verbal orders with computer-entered orders by doctors. Dr. Mark Allen, a primary care physician commented, “The hospital is trying to turn me into a 12-dollar-an-hour secretary, and they aren’t even paying me 12 dollars an hour.” In securing board approval, Dryer and Roberts presented an aggressive implementation plan that called for the requirements analysis, Request for Proposal (RFP), vendor selection, and project implementation to be completed in less than 18 months in all eight hospitals. During the discussion with the board, several of the members questioned the timeline. One noted, “It took you 2 years to set up e-mail, and everyone wanted e-mail. This will affect every clinician in every hospital. Do you really
  • 45. think you can do this in 18 months?” In an effort to demonstrate results, Dryer and Roberts demanded results from the clinical and IT team formed for the project. By this time, a rushed requirements analysis had been completed, an RFP issued, a vendor selected, and a contract signed. The acquisition process took a little more than 6 months, leaving a year for the implementation. In protest, a number of prominent physicians took their referral business to the other health system in the area that seized upon the controversy by promising that they would not use a CPOE. Shortly thereafter, the two leading champions for CPOE—Dryer and Roberts—left Memorial. The chief medical officer, Barbara Lu, who was a vocal opponent of the project, was appointed interim CEO. Although Lu was an opponent of the project, many members of the board still supported it. In addition, none of the board members wanted to lose a substantial down payment to the vendor, so Lu was instructed to proceed with implementing the system. Lu appointed a close colleague, Dr. Melvin Sparks, to serve as the interim CIO of the system. Sparks was both a practicing radiologist and a degreed computer engineer, so Lu thought he would be an ideal CIO for the system. Sparks hired Sally Martin as the executive project manager overseeing the implementation. After evaluating the progress made to date and preparing a detailed thousand-step project plan, Martin reported back to Sparks on the status of the project with an exceptionally detailed report. Several key points were noteworthy in her report. Because of the rushed requirements analysis, several key workflow and system integration issued were missed. Consequently, to complete the project in the remaining 12 months, the organization would have to do the following: · Double the IT staff assigned to the project from 16 to 32 people. · Purchase approximately $500,000 in integration software not already budgeted.
  • 46. · Alternatively, the scope of the project could be reduced from an enterprise deployment to something less than that. · Alternatively, the duration of the project could be doubled to 24 months, keeping the staff flat but not avoiding the $500,000 software cost. Dr. Sparks did not respond well to the news, exhibiting a great deal of anger at Martin, who was not working for the health system when the project was scoped and budgeted. Sparks yelled at Martin and told her never to come back into his office with bad news again. Her job, Sparks screamed, was to “figure out how to turn bad news into good news or no news.” As she left Sparks’ office, Martin resolved never to convey bad news to Sparks again, no matter how serious the issue was. Over the next 12 months, the project progressed but got a bit further behind schedule each week. Martin reminded herself that she wasn’t conveying bad news to Sparks. In each status review meeting, Martin always presented a project schedule that was on scope, on schedule, and on budget. During this time, the health system took on a number of other important IT initiatives requiring human resources. Each time another project fell behind schedule, Sparks took resources from the CPOE project. From the 16 people originally budgeted, the team was reduced to eight. The only positive aspect was that the project, which was costing money even though it was making little or no progress, was expending less cash as it made no progress. As the project went into its 16th month, 2 months before the scheduled launch, nearly all the project budget had been consumed, and—in an effort to save money—the end-user training budget was cut to the bare minimum. At the same time, some doctors who had not left the system attended the CPOE vendor’s annual user group meeting. They saw the release of the vendor’s most recent system and immediately decided they wanted it for Memorial. Upon returning to the hospital, the doctors met with Sparks and persuaded him that the only hope
  • 47. for enlisting physician support for the changed workflow was to adopt the newest version of the software, which was just being introduced. The physicians told Sparks they had persuaded the vendor to appoint Memorial as an alpha site for the new software. When Sparks informed Martin of the change in the scope of the project, Martin was concerned, but remembering Sparks’ reaction to bad news, she kept her thoughts to herself. She framed her questions in the form of the risks that such a major change in direction might cause with so little time to recover. Sparks smiled and told Martin, “Don’t worry; it will all work out.” So, 2 months before the launch, Martin worked with her team to alter the project work plan to install the new software, test the software, configure the software and interfaces, and train the users—all in 2 months, even though the same activities had taken almost 8 months the first time. The scheduled date for the launch arrived, and all eight hospitals went live with the new CPOE system on the same day. The new software had flaws. The lack of end-user training was apparent, and the many requirements missed during the analysis became immediately obvious. Doctors could not log on to the system, and nurses could no longer enter orders. Patients were kept waiting for medications and tests. After several days of this, Lu instructed Sparks to decommission the CPOE system and revert back to the manual procedures. An unknown physician was quoted in a major health care publication—under the title “CPOE Doesn’t Work”— describing the debacle at Memorial Health. During the project postmortem, Sparks expressed surprise the project was not going as planned and asked Martin why she had not been more forthcoming about the problems, issues, and risks. The vendor took 6 months to fix the bugs in the software, and—30 months into the project—CPOE was launched again. However, this time, it was in one ICU in one of the tertiary care
  • 48. hospitals. Four years after the beginning of the project, this is the only unit in the entire health system in which CPOE is operational. Health Information System Textbook for Reference: Wager, K. A. (2013). Health Care Information Systems: A Practical Approach for Health Care Management, 3e Instructions: I rather hear about your experiences, experiences of others you know, opinions and ideas when answering the following questions. Must write up from 75 to 150 word count. CITE AND REFERENCE ALL WORK IN APA FORMATT!! 1. What is the most important critical success factor when implementing an IT initiative? 2. Leadership in healthcare of organizations plays a vital role in managing the change that comes with the implementation of an IT application. Healthcare executives are leaders and managers in change initiatives. In general, what personal characteristics do effective managers display? What about effective leaders? Do these characteristics promote effective change? 3. Can transformational leadership be a good style of leadership when implementing an IT initiative? Why or why not? 4. What are common ways to measure benefits of information technology in health care? 5. What is IT-enabled value? Why do IT projects sometimes fail to deliver the expected returns? 6. http://www.biomedcentral.com/1472-6963/14/243 Read the article and discuss your thoughts.. 150 WORD 7. https://www.deepdyve.com/lp/springer-journals/the- promising-application-of-health-technology-assessment-in- public-0ziU5dkPSQ Read the article and discuss your
  • 49. thoughts.. 150 WORD 8. http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3402621/ Read the article and discuss your thoughts.. 150 WORD 9. Resource: Ch. 16 of Health Care Information Systems- See attached Case Study Consider the following scenario: · During the third week of your internship, the CIO e-mails your team several examples of other IT project implementations. Later that day, she says to you, "Review the examples I sent you about the implementation process. I attached a list of questions for you to answer about how the implementation process works and why IT projects sometimes fail. I'm most interested in your analysis of how organizations such as ours can minimize the occurrences and effects of IT failures." Read : Case Study--Memorial Health System CPOE Implementation. Write a 150 word paper in which you answer the following question: · Ch. 16 of Health Care Information Systems describes the causes of project failure. What are at least five indicators of project failure that manifest themselves in the case study? Format your paper consistent with APA guidelines. To clarify: · Cite and reference at least two peer-reviewed articles in the paper. · Develop in-text citations and references according to APA standards. · Reference page must be formatted on APA format. 10. Resource: Week Three Technology Trends Proposal Part ll assignment below, textbooks, and or peer-reviewed articles, etc. Research management's role in the technology selected (Smart phones) and the benefits of it (Smart phones) that support the organization's quality initiatives. Write a 350-700 word summary describing the management's
  • 50. role in the technology (Smart phones) selected and the benefits of it (Smart phones) that support the organization's quality initiatives. Cite at least two peer-reviewed references from the University Library. Format your paper consistent with APA guidelines. To clarify: · Include a title page · Include an introduction and a conclusion. · Use section headings in accordance with APA standards for organization. · Cite and reference at least two peer-reviewed articles in the paper. · Develop in-text citations and references according to APA standards. · Reference page must be formatted on APA format. Resource: Week Three Technology Trends Proposal Part ll assignment Introduction Smart phones have not yet been in existence for six years, but by now they are influencing the manner in which individuals operate. A few individuals which accounts for approximately 50% of citizens have smart phones, although several individuals have not yet started to understand what they are capable of, or how many the phones are expected to change the global world (Zheng, 2012). Privacy Risks One of the privacy risks includes loud people.A lot of people speak loudly when they are on a mobile phone. It is not infrequent to hear individuals conducting business and talking about tremendously private materials in restaurants, on buses or on the road. These persons have a major risk of being overheard. The second risk involves environmental microphones. A person’s telephone call can be controlled by another person who places a microphone in his room. The third risk involves intercepting the wireless link. The wireless link
  • 51. between the phone and the cell can be controlled by a third person (Zheng, 2012). Digital links are less vulnerable to interception than analog associations; encrypted links provide superior security still. The other risk involves interception at the phone site. The cell sites offer a superlative location for controlling the communications of all persons who are utilizing it. The other risk involves interception at the telephone switch (Allen, 2013). Cell sites of a provider are linked by leased-lines to a telephone switch. Law enforcement agencies characteristically place court-ordered wiretaps at telephone switches. Security Safeguards The first security safeguard involves turning on the screen lock function on the phone device which is found in the phone's settings menu (Zheng, 2012). One should remember to turn off GPS and Wi-Fi when they are not using them at a given time since they could be utilized by location-tracking applications to figure out where the individual is located. The most widespread threat is apps that surreptitiously bill a user's credit card by sending a first-rate text message to a hacker. A lot of security apps are now aiding users to learn more concerning these pesky permission requirements (Allen, 2013). They can also block citizens from visiting fake websites or being scammed. Strategies for evaluating the effectiveness of the smart phone technology There are several strategies that can be put in place to evaluate the effectiveness of smart phone technology (Zheng, 2012). The first approach involves comparing departments that use smart phone technology to those which do not use. The anticipation is that those that use smart phone technology will record a better performance as compared to those that do not use it. The other strategy involves the quantification of the turnover by the organizational departments that use smart phone technology which are expected to be higher than those that do not have (Allen, 2013). The other strategy involves evaluating
  • 52. the effects of smart phone technology on the users as well as the organizations. For instance, the instances of cyber attack using smart phones may negatively influence the organization’s processes. Conclusion The smart phone technology is the latest technology that is being incorporated by most organizations as well as individuals (Zheng, 2012). There are positive effects of smart phone technology as they facilitate faster services. However, they can lead to negative effects such as obsolescence. Health Care Consumer: Trends and Marketing Instructions: I rather hear about your experiences, experiences of others you know, opinions and ideas when answering the following questions. Must write up 100 to 150 word count. 1. Do you think the Health Insurance Portability and Accountability Act (HIPAA) has worked? Explain. 2. Are your rights violated if you go to the ER and when you see the receptionist to tell them why you are there, everyone can hear? Are your rights violated when in an urgent care center, you are separated by a curtain only, and everyone can hear what is said, or if you go to the doctors and you hear the doctor talking to the patient in the next room? When you go to the doctor, you are asked to sign a HIPAA form. Has anyone ever read it? If so, what does it really say? 3. What are some ways in which you share health information today? What are the risks associated with sharing information? What types of sharing are most effective? 4. http://www.wired.com/2014/07/medical_apps/ What do you think about this article? 5. Chapter 11 discusses advertising limitations. Consumers are surrounded by advertisements from all forms of medium - television, radio, print, and the Internet. Advertisers must be
  • 53. aware of the limitation of the noise created by the bombardment of advertisements to the consumer. As a result of the influx of advertisements, consumers may ultimately feel a particular advertiser is self-promoting their product or service. Advertisers recognize that their efforts are more effective when the consumer's awareness of their product or service is limited. In this scenario, the consumer may gain knowledge on the service or product by viewing or reading the advertisement. The consumer then becomes familiar with the product, and may wish to explore further. Thoughts? 6. https://www.whitehouse.gov/healthreform What did you see that surprised you? What did you see that you already knew? What is happening right now with health care reform? 7. What are some aspects of health care reform besides the mandate that everyone should have coverage? 8. http://www.hhs.gov/healthcare/facts/timeline/timeline- text.html What has changed, or do you think will change, with this timeline? How does that affect consumers? 9. Research the following in your community: · One web-based resource Write a 350 word paper in which you address the following: · Who is their target audience? · How are they marketing to their target audience? · How effective is their marketing approach? · What could be done differently to improve their marketing? 10. Summarize Chapter 12 Essentials of Health Care Marketing- THIRD EDITION, Eric N. Berkowitz, PhD, MBA Write a 1000 word summary on Chapter 12