What is Marketing? 

When most physician think of "marketing" their practice they think of advertising or placing a listing in the yellow pages. Both of these constitute marketing, but represent only a part of potential marketing activities. In a sense, everything you do to present a professional and positive image of your practice can be considered as part of your marketing program. Within that context, "getting new patients" is only a part of the marketing process. What you and your staff do to keep your patients is equally important. A disgruntled patient is one of the worst forms of advertising. Using a simple definition, marketing is presenting your practice in a way that gets and retains patients.

Developing a Marketing Program 

Your marketing program should be well thought out. It will take time, effort and some money. Many physicians spend large sums of money in areas which bring little result, and spend little in areas which have the greatest potential. Here are some tips:

1. Start With a Budget 

   Interestingly, the place to start on the financial side is with budgeting. Decide on your financial revenue targets before you decide on a marketing approach. How much more revenue do you want to generate in your practice? How many more patients can you effectively care for?

2. Define Your Geographical Market 

   Realistically, how large is your market? If you are a primary care physician, chances are your target market is going to be geographically smaller and more local than if you are a sub-specialist who practices within a "center of excellence". You may have a primary market from which you draw the majority of your patients, and a secondary market from which a smaller number of patients are generated. Set the physical boundaries and draw them on a map so you can visually see your target market.

3. Segment Your Market, Understand Your Competition and Size-up Your Strengths 

   You need to understand the demographic make-up of the population which resides within your market. This includes population characteristics such as age, income and insurance status. If you specialize in an industry-related field such as workers compensation, you'll need to understand the nature of businesses within your market area. The best way to truly understand the demographics of your market is to get a demographic profile of your geographical market. This data can be generated from many commercial sources based on zip codes or other criteria you specify. You'll also need to get a good idea of your competition. How many physicians within your target market are performing the same services? Find out as much about them as you can. Do they have weekend hours? Do they stay open late in the evenings? Also locate geographically undeserved areas by plotting competing practices on a map. This will help you know where you can target some of your marketing efforts. Additionally, understand the strengths of your own practice. What do you offer that other practice's don't? Remember one important rule in marketing: always play to your strengths!

4. Prioritize Your Market Segments 

   Not all market segments are equally important in terms of your marketing strategy. Some may be easier to reach and some harder. Some may be more economically rewarding, and some less. Revenue to your practice may be highly dependent on the type of patient you desire to attract. For example, targeting young and healthy patients with few medical problems will often generate less revenue than older patients who have greater medical needs. You will need to balance the demographics of your market with the revenue needs of your practice. This is more an art and less a science.

5. Develop an Approach 

   By now you know your goals and understand the possibilities of your market. You are ready to develop a strategy for marketing to each of the segments you want to attract. You may not want to market to all segments and concentrate on only one or two. There are a variety of ways to approach market segments. Here are a few:
   
   

   • Networking with Professional Colleagues 

     This marketing approach is often overlooked. Yet it is often the best way to get an immediate source of patients. Think of other physicians you know, how about dentists or pharmacists? All see patients - some of whom may be looking for a new physician.

   
   
   
   • The Hospital and Community Referral Sources 

     Virtually all hospitals have a physician referral program. Usually, patients call into a number to get a list of physicians in the area. Be sure you apply. Community agencies, school nurses, your local Chamber of Commerce, and volunteer programs also provide a ready source of patients. Make the rounds and get to be known. Speaking at patient or professional gatherings sponsored by the hospital is also a good source of potential patients.

   
   
   
   • IPAs, PHOs and Direct Contracts 

     Getting managed care contracts is a part of growing a successful practice in most marketplaces. It is difficult to develop a practice without securing managed care contracts. In some areas, it is the single most important source of patients. Be sure to understand the opportunities available for new providers. Meet key physicians who are in charge of the IPA or the PHO, and carefully evaluate your options. (For a guide on managed care contracting, be sure to read the Managed Care and Payer Contracts section of the PracticeAdvisor Resource Guide™.)
     
     

     In some markets, health plans and PPOs contract directly with providers. This practice varies significantly across the country. If this is the case in your market, prepare a credentialing package, get each plan's application, review the contract, and get on the appropriate provider rosters as soon as you can. Forms are available through ExpertPractice.com's SnAPPnet application. Click here for a demo of the features and benefits of using SnAPPnet.

   
   
   
   • Direct Marketing 

     Get a mailing list of the potential patients in your service area. Develop an announcement package that lets them know that you are accepting patients. Be sure to list the insurance plans you accept. Don't be shy about this avenue to new patients. Yellow page ads are essential. Welcome Wagons can still be helpful as well for new patients moving into the area.

   
   
   
   • Patient Brochures and Welcome Letters 

     Get your patient brochures ready. This piece lets your patient know more about your background, your practice, office hours, etc. We also recommend that a personal welcome letter also be sent to each new patient.

   
   
   
   • Run a Patient-Friendly Practice 

     In the rush of building a practice, physicians and their staff often forget that patients still have a choice in healthcare providers. A caring and friendly office staff, reasonably short waiting times, working in urgent situations, proper and accurate billing and collection policies, and pleasant soundings are all important in attracting and retaining patients. Conducting patient satisfaction surveys routinely is a good way to find out how your patients think you're doing.

   
   

   Developing a practice marketing budget is an important part of the marketing process. You probably had some idea how much you were willing to spend back in Step 1. Yet it is important to complete the entire marketing planning process before you decide exactly how much you are willing to spend. You may find, for example, that your highest priority market segment can best be reached by direct mail. Direct mail can be expensive, but it may be worth it. Marketing usually involves an up-front investment which is recovered over time in the form of increased patients and revenue.

6. Implement and Follow-up 
   
   

   Developing a formal marketing campaign with specific strategies to reach each segment may take outside help. There are consultants who specialize in marketing physician practices. They can offer great assistance in refining your marketing budget. You may, however, decide to develop your own material. Regardless of your approach, set goals for each specific strategy and then monitor the results. If a particular strategy isn't paying off within a reasonable amount of time, discontinue it or modify it. Don't throw good money after bad. Be sure to ask your new patients how they found out about your practice.

Practice Marketing Overview 

A well-developed and implemented marketing plan is key to achieving a high level of practice performance. Always remember that marketing is an inherent part of doing business, even operating a medical practice. Use the following as a guide to start you in your process of creating a message for your practice.

1. Remember that marketing is presenting your practice in a way that gets and retains patients
2. Define your geographical market
3. Understand the requirements, opportunities and obstacles of your target market
4. Explore the many options of developing a marketing approach that will meet your objectives
5. Regularly review and evaluate your marketing plan, and make changes as necessary
6. Keep the marketing process a central part of your practice operation