Question

Capturing the “Older Adult” Market Many healthcare organizations came to see the aging of the baby boom generation as an opportunity to expand their services. Regional Medical Center (RMC, a fictional organization on which this case study is based) responded to this opportunity by establishing a service line devoted to older adults. The intent was to capture the business—and the loyalty— of this large, relatively affluent, and increasingly needy segment of the population. The service line was designed to meet the emerging needs of this population for specialty services such as cardiology, orthopedics, ophthalmology, and urology in a manner that was appealing to this rela- tively demanding consumer segment. Because this service was considered innovative in the community served by RMC, an aggressive promotional campaign was undertaken. RMC’s marketing department considered a wide range of marketing options and decided on a multipronged campaign to approach the target population from a variety of directions. The first phase of the promotional campaign focused on internal marketing. It was important that RMC’s employees be familiar with this new program and be able to articulate its merits to potential customers. Many of the customers for the new program were likely to be existing patients of RMC. Well before the new program was scheduled to open for enroll- ment, an aggressive PR campaign was initiated. Press releases were distributed, articles were prepared for local publications and profes- sional journals, and celebrity spokespersons were lined up. Simple yet attractive collateral materials (e.g., business cards, letterhead, envelopes, brochures) were developed for distribution to prospective customers and to referral agents who might channel customers to RMC. Information was distributed to providers and organizations that might serve other needs of the target population, and the community’s major insurance plans were made aware of the new program and its benefits. Tours of the facility housing the new program were provided to key con- stituents (such as referring physicians and health plan representatives), and open houses were scheduled for both medical professionals and the general public. The marketing initiative also involved direct solicitation of members of the target population. RMC extracted data from its internal database on existing customers and purchased mailing lists of households that included members aged 50 to 65. Using the findings from previous research on the “buttons to push” in this age cohort, marketing staff prepared materials that would appeal to the particular needs of older adults. The address lists were then used to mail materials directly to targeted individuals. While RMC did not want to rely on expensive media advertising for attracting customers, its marketers felt that some media presence was necessary—not only to attract customers who might be missed through the direct-mail campaign but also to make the general public aware of this new program. In some cases, other family members might be making decisions for the older adult population, and awareness of this program on the part of the general public was considered impor- tant. After careful research on the communication attributes of family caregivers, a series of newspaper, radio, and television advertisements were produced. These advertisements were placed in the sections of the local newspaper that members of this age group read, aired on the radio stations they preferred, and presented on the television channels they viewed most often. For the electronic media, particular attention was paid to the time of day and day of the week members of the target population were expected to be engaged. The success of RMC’s new older-adult service line during the first year exceeded the expectations of the organization’s administrators. While it was difficult to determine which of the various promotional techniques used had the most impact on the program’s early success, the marketing staff concluded, on the basis of its evaluation of the cam- paign, that it was the integrated approach—a variety of coordinated activities—that led to the successful program launch.

Case Study Discussion Questions 1. Why did RMC think that older adults presented enough of an opportunity to establish an entirely new program? 2. What information did RMC need to gather about this target population before the program could be established? 3. What information did RMC need to gather about this target population before the marketing campaign could be planned? 4. What were the different paths through which RMC attempted to reach the target audience? 5. Which marketing techniques did RMC use to reach the target population? 6. Why was internal marketing an important first step in marketing this new program?

Answer 1

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1. Why did RMC think that older adults presented enough of an opportunity to establish an entirely new program?

With the rise of baby boomers becoming the older population RMC decided they needed to expand their services to reach them. They wanted to capture the business and the loyalty of the large, needy segment of this population.

2. What information did RMC need to gather about this target population before the program could be established?

RMC needed to understand exactly what services this part of the population needed. They needed to have a service line for specialty services such as cardiology, orthopedics, urology, etc. They needed to have services that would appeal to the baby boomers and the older population.

3. What information did RMC need to gather about this population before the marketing campaign could be planned?

RMC extracted data from their internal database on existing customers and purchased mailing lists of households that included members ages 50-65. Using those findings from the previous research on the “buttons to push” in this age cohort. The marketing staff then prepared materials that would appeal to their particular needs.

4. What were the different paths through which RMC attempted to reach the target audience?

Before the new program was released they used an aggressive PR campaign. They used press releases, articles that were prepared for local publications and professional journals, and a celebrity spokesperson was lined up. They also used collateral materials, such as business cards, letterhead, brochures, etc. to distribute to potential patients. They distributed information to providers and organizations that might service different needs that RMC will not offer so they could refer them to RMC. They also contacted major insurance plans to make them aware of the new program. Lastly, they offered tours of the facility housing the new program and scheduled open houses fo medical professionals and the general public.

5. Which marketing techniques did RMC use to reach the target population?

RMC used the communication attributes of family caregivers, a series of newspaper, radio, and television advertisements to reach their target population after careful research. The advertisements were placed in sections of the local newspaper that members of this age group read, aired on radio stations that they listened to, and presented on television channels that they watch.

6. Why was internal marketing an important first step in marketing this new program?

They wanted the employees to be familiar with the new program so they could articulate their goals to future patients. If the employees do not understand what the goal is, it would be hard for them to get new patients to be on board with the new program.

Reference:

Thomas, R. (2015). Marketing health services (3rd ed.).

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