Download What Is A Marketing Plan? - Ohio Association of Child Caring

Howard Shiffman, Senior Associate OPEN MINDS
April 29, 2014
1.
2.
3.
4.
You have a very large
unrestricted endowment
You have guaranteed
sources of future funding
for what you do
You have no competition for
your current sources of
revenue
You are in a market with
little change in either
financing or service delivery
If this is your
organization,
you should sit
in on a
different
session. . .
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2
“Traditional marketing — including advertising,
public relations, branding and corporate
communications — is dead. Many people in
traditional marketing roles and organizations
may not realize they're operating within a dead
paradigm. But they are. The evidence is clear.”
• —Bill Lee,
• Harvard Business Review, August 2012
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3
I. Trends Driving The End Of Traditional
Marketing
II. The New Role Of Consumers Demands A
New Approach To Marketing
III. New Tactics For Successful Marketing In
Today’s Environment
IV. Forward Thinking Marketing Strategies
V. How To Adapt Your Organization’s
Marketing Plan For The Future
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4
I. Trends Driving
The End Of Traditional
Marketing
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The Information Age…DATA
Technology to build relationships
“Bait and Hook” no longer works
Evolved buyer habits.. Being Informed/Involved
Limited dollars
New Service Delivery ….Transparency
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Marketing meant advertising (and branding)
Advertising needed to appeal to the masses
Advertising relied on interrupting people to get them
to pay attention to your message
Advertising was one-way communication
Advertising was exclusively about selling products
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Businesses have traditionally been in the role of
producing products or services that help a customer
get the job done. In return the customer pays money.
What the firm
does
•Delivers
products and
services
Value to
customer
Value to firm
•Gets the job
done
•Provides money
This is now an old fashioned way of doing things…
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What the firm
does
•Delivers
products and
services
•Reference programs
•Communities &
Social media
•Events
•Advisory Boards
•User Groups
•Knowledge Centers
Value to
customer
•Gets the job
done
Value to firm
•Provides money
Measureable business
value delivered
Increased social capital
Expanded peer network
Increased professional
status and reputation
Opportunities to partner,
comarket and design
Opportunities to deliver
Referrals
References
Influencers
Word of Mouth
Improved Strategy
Increased knowledge
base
thought leadership
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II. The New
Role Of
Consumers
Demands A
New Approach
For Marketing
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•
Consumers have a new and more complex
role
◦ Medicare -- and Medicare Advantage
◦ Medicaid – and Medicaid managed care and
Medicaid premium support
◦ Traditional insurance have rising coinsurance,
copayments, and deductibles
◦ Increasing use of consumer-directed health plans
•
•
12
“Safety net” taking on a whole new meaning
in states with Medicaid expansion
“Penalties” for lack of consumer participation
in health management
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$307.7 billion or 11.4% of the total health care
budget
• Mental health – In 2005 consumers footed $13.56 billion, or
12%, of $113 billion total market spending
• Addiction treatment – In 2005, consumers paid for $5
billion, or 22.7%, of $22 billion total market spending
• Mental health hospitalization – In 2011, the average cost
per-person spending paid out-of-pocket was $766
• Addiction-related hospitalization – In 2011, the average cost
per-person spending paid out-of-pocket was $889
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•
•
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Competition based on price is happening
The internet has created more venues for fee
transparency
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•
15
Many initiatives to measure and report on
“performance”
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New Tactics For
Successful
Marketing In
Today’s
Environment
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Marketing is more than PR
PR is for more than just a mainstream media audience
You are what you publish
People want participation and not propaganda
Marketing is about delivering content at the precise moment your audience needs it
The internet has now made public relations PUBLIC
Your content now has be customer-centric—write for your audience(s)—not you!
People all over the world can see your message
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Consumers
Message
differentiation
based on target
audience
Payers
Providers
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
Deliver what you promise

Promptly fix things when they go wrong

Know your customer’s problems

Create peer networks among your customers


Provide your customers additional
opportunities…either with you or with others
Always remember…you have leverage
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•
•
•
Advocates
Influencers
Contributors
In other words…
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How
Customers Act
On Your Behalf
•
Provide positive information
about you to their
colleagues, networks, and
industry audiences.
Referrals
References
Testimonials
Speaking
Videos
•
Example: Consumer,
consumer’s family member
or caregiver
Interviews
Blog Posts
Social Networking Sites
Tweets
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How Customers
Act On Your
Behalf
•
Articles
Blog Posts
Speaking
Books
Interviews
Webinars
•
Experts with a neutral or
objective view and share
their expert opinions
Examples: Associations,
payers, government
entities, authors,
researchers, universities
Attending events
Creating industry
publications
Testing and commenting on
new products or offers
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How Customers
Act On Your
Behalf
•
Input or feedback to improve your
offers
Input to develop new services
Innovate your products on their own
Creating apps
Provide data or info that adds new
value to existing offerings
Provide services and support to
other customers
Improve your strategy and focus
Help you gain a position of thought
leadership in your industry
•
Provide insights or
knowledge in a variety of
ways—often for free—that
helps you. (Not always
individuals, but other
companies who share data
about you)
Example: More involved
patients, board members,
partner organizations, local
community collaborators
Provide contacts and access to new
sources of valuable information
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◦ Referring other customers to you, taking calls, and
accepting site visits from your sales prospects to help
close deals
◦ Participating in your customer advisory boards to keep
your R&D efforts grounded
◦ Having key-customer executives participate in higherlevel forums and communities to help keep your strategy
focused on top customer issues
 Local legislative advocates
 Local government entities, i.e., policy planning, school
boards
 Community leadership
 Advocacy groups
Existing customers can be your best resource for new ones!
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24
III. How To
Adapt Your
Organization’s
Marketing Plan
For The Future
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Plan to
accomplish
organizational
mission and
objectives
through specific
tactics
responding to a
changing
environment
while making best
use of available
resources
Best practice
strategic
planning is
framed in terms
of the overall
organization’s
sustainability
and is marketfocused
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Your
strategic
plan is the
basis for
your
marketing
plan
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The Strategy Development & Implementation Cycle
1. Develop vision of future competitive advantage and market
positioning
2. Scenario-based strategic plan incorporating alternate
future positioning options
3. Detailed plans – marketing, financial, operational, technology,
capital, HR, etc. – to implement strategy and future vision
4. Key performance metrics and metrics-based management to
track strategy implementation (and allow mid-course adjustments)
5. Optimization of current operations to keep current programs as
competitive (and profitable) as possible as long as possible
6. New service model development to support future vision
7. Collaborations as needed to facilitate new market vision
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1.
2.
3.
All the business activities
involved in directing the flow
of services from the provider
to the customer – the
business function responsible
for organizational revenues
Understanding the needs of
customers and developing a
service that meets those
needs at an acceptable cost
Act of promoting, selling, and
distributing a product or
service
The more
competitive a
market is, the
more important
marketing
competency is
to an
organization’s
success. . .
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Marketing is the function
that assures that
customers select a
particular producer
Customers –
Payers,
Consumers, &
Influencers
Producers of
Services
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Market
Analysis
Define
Market
Segments
Competitor
Analysis
Define Mission
and Key
Objectives
Internal
Analysis
Determine
Differentiation
Opportunities
Select Target Market Segment and Position
Develop Operations
Plan and Finance Plan
Develop Marketing
Promotion and Tactics
Plan
Measure Strategic
Performance
Key To Functional Areas:
Finance
Marketing
Set Target Price
and Cost.
Re-Engineer
To Achieve
Target Cost
Strategic Planning
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1.
2.
3.
4.
Overall organizational vision and
mission – which shapes market
positioning
Markets to pursue
Service lines to offer
Revenue and return required for each
service line
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•
•
•
Organizational strategy to
guide revenue generating
activities
Defines tactics (and
customer interface)
between the organization,
its services, and its
customers
Must align to and build off
of the strategies and
tactics in the strategic
plan
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Product (what to
offer)
Price (rates and rate
structure)
Place (sales
distribution method)
Promotion
(communication for
customer
positioning)
Press and public
(communication to
press and publics)
Political (political
advocacy and
lobbying)
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• The purpose of segmentation is to determine the differences among
buyers in order to develop specifically targeted marketing initiatives
that meets customer interests and needs.
◦ Example by consumer – Women, mature adult, child, suburban, etc.
◦ Example by service need – Co-occurring, depression management, TBI, health home,
etc.
Potential &
Present
Residential Payer
Sources for a
specific service
line
Juvenile
Justice
New
Consumers
Foster Care
Agencies
Health and
Human
Service
Agencies
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Child
Protective
Services
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Phase 1: Marketing
objectives from
organizational strategy
•Revenue and other marketing objectives
•Service line descriptions and metrics
Phase 2: Market analysis
•Analysis of market and customers
•Competitive analysis
Phase 3: Marketing strategy
•Marketing strategies to engage customers and
development
generate revenue
Phase 4: Marketing tactical
planning
Phase 5: Marketing plan
implementation
•Developing marketing tactics for each strategy
•Marketing budget
•Implementation planning
•Marketing plan timeline
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•
•
•
•
•
Revenue for current service -- Net revenues in service
X will be $X million in this fiscal year
New contract acquisition – Win five new competitive
contracts via proposal process
New service line development -- Service Y will be
developed and have two customers by the end of this year
New service line feasibility analysis -- Market research
conducted on new service concept Z and decision made
whether to develop service within the first 6 months of the
year
Revenue diversification -- Decrease % of total revenue
from Medicaid from 93% to 88% by increased new service
sales of X services
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•
•
•
•
Objective #1: Increase the financial stability of the
residential treatment program by establishing an
average daily census of 250 and average daily rate of
$225 in next fiscal year
Objective #2: Selectively expand profitable communitybased programs to match market needs and changing
demands and increase community-based revenue by
100% - from $16M to $32 M in next fiscal year
Objective #3: Increase and diversify revenue streams
overall by expanding Medicaid billing to 25% of total
revenue decreasing Federal/state grant revenue to less
than 50% in next fiscal year
Objective #4: Create better outcomes in the foster care
program by reducing the number of disrupted foster
home placements by 20% from last fiscal year in 2014.
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1.
2.
3.
Service line definitions and metrics – what
services do you offer and how do they
‘stack up’ against the competition
Analysis of market and customers – what
are the available sources of funding and
what customers control that funding?
What do those customers want?
Competitive analysis – who is competing
with you for customers and their funding?
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Market
Environment
Marketing strategies – the plan to achieve
objectives in the face of environment
• Regulation
• Customer
Preference
• Competitors
•
•
•
•
•
Achieve
Marketing
Objectives
=
Revenue
More
Customers
New Services
Diversification
Profitability
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Objective #1: Increase the financial stability of the
residential treatment program by establishing an average
daily census of 250 and average daily rate of $225 in next
fiscal year.
The Marketing Strategies:
1.
Establish the XXXX School as a “center of excellence”
for the treatment of children and youth with special
needs across all payer types
2.
Garner an increasing share of referrals from
educational consultants
3.
Increase the number of managed care contracts
4.
Win residential treatment contracts with the
surrounding states and the counties in those states
5.
Improve the conversion rate of inquiries to admissions
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Objective #2: Selectively expand profitable
community-based programs to match market needs
and changing demands and increase communitybased revenue by 100% - from $16M to $32 M in
next fiscal year.
The Marketing Strategies:
1. Aggressive marketing of current communitybased services (50% of increase)
2. Development of new community-based services
(40% of increase)
3. Acquisition (10% of increase)
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Objective #3: Increase and diversify revenue streams
overall by expand Medicaid billing to 25% of total
revenue, decreasing Federal/state grant revenue to less
than 50% in next fiscal year.
The Marketing Strategies:
1. Develop more contracts with Medicaid managed care
plans for current services
2. Conduct market research and feasibility analysis of
offering a case rate-based program to Medicaid
managed care plans
3. Increase consumer marketing to Medicaid populations
eligible for current services
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•
•
1.
2.
Objective #4: Create better outcomes in the foster
care program by reducing the number of disrupted
foster home placements by 20% from last fiscal
year in 2014.
The Marketing Strategies:
Create a foster care crisis team available to foster
parents and market this program to payers
Offer managed care a pilot project that is
financially supported by a pay for performance
bonus for successful outcomes in foster care
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IV. Forward
Thinking
Marketing
Strategies
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Referrals
Webinars
Teleconferences
Newsletters
Reports, case
studies
Broadcast media
Private events
Social Media
Marketing
Tools
Life events
Website
Customer
communities
Industry events
Corporate
Magazine
Analyst reports
Speaking
Word of mouth
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1. Thought Leadership
2. Website Content
3. Social Media
•Blogging
•Video and Podcasting
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‘Thought Leadership is establishing a relationship with and
delivering something of value to your stakeholders and
customers that aligns with your brand/company value.
In the process you go well beyond merely selling a product or
service and establish your brand /company as the expert in that
field and differentiate yourself from your competitors.’
—Craig Badings
Thought leadership should be an entry point to a relationship.
Thought leadership should intrigue, challenge, and inspire even
people already familiar with a company. It should help start a
relationship where none exists, and it should enhance existing
relationships.
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White Papers, Case Studies, and Articles
eBooks
Blogs
eNewsletters
Webinars
Research and Survey Reports
Audio and Video
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•
•
•
•
•
•
•
•
Do NOT write about your company and its
products or services
Ask what problems can you solve
Understand your audience
Write for your audience—storytelling rules!
Create titles that grab attention
Promote your efforts
Let the media know your point of view
Track your results
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You become a key Influencer
Your expertise builds your brand
You become “the” authority in the public eye
You change the conversation about your industry and your
solutions
You don’t have to spend lots of dollars to get it out there
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Awareness and education phase
Target early adopters and influencers
•Thought leadership
•Peer Information
•Access to peer communities
Solution phase
Thought leadership must address
buyers’ business issues
•Thought leadership
•Competitor differentiation
•Customer videos
Emphasize emotional factors
Selection phase
•Customer ROI case studies
•Community affirmation
•Reference calls, site visits
Help your buyer make the
business case
Website gravity
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•
•
•
•
•
•
Does your website have a purpose?
Is your content tailored to meet your
purpose?
Are your service options clearly defined?
Have you organized your site for intended
audiences?
Have you established a pathway for visitors to
contact you?
Is your website visually attractive?
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Content is key
Understand your clients’ needs and then address
them
Create peer interaction, not just client interaction
Share information often
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• Social media is the use of web-based and
mobile technologies to turn communication
into interactive dialogue.
• Social media is "a group of Internet-based
applications that build on the ideological
and technological foundations of Web 2.0,
which allows the creation and exchange of
user-generated content."
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•
•
•
•
Facebook
LinkedIn
Twitter
YouTube
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Face Book : In January
2013, the countries with
the most Facebook
users were:
All total 309 million members or
about 38.6 percent of
Facebook's 1 billion worldwide
members.
Mexico with 40.2
million members
Indonesia with 51.4
million members
United States with
168.8 million
members
Brazil with 64.6
million members
India with 62.6 million
members
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As of January 2013, LinkedIn reports more
than 200 million acquired users in more
than 200 countries and territories
LinkedIn has 21.4 million monthly unique
U.S. visitors and 47.6 million globally
In June 2011, LinkedIn had 33.9 million
unique visitors, up 63 percent from a year
earlier and surpassing MySpace
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Twitter is an online social networking service and
micro-blogging service that enables its users to send
and read text-based messages of up to 140
characters, known as "tweets”
Gained worldwide popularity, with over 500 million
registered users as of 2012, generating over 340
million tweets daily
Twitter has become one of the ten most
visited websites on the Internet
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YouTube was founded in 2005
In 2006, YouTube was purchased by
Google for $1.65 billion in stock
In 2007, YouTube went global
In March 2013, YouTube had 1 billion
viewers per month
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Generation Y
Age 18-32
• 90% Facebook
• 55% Linkedin
• 55 % Twitter
• 97 % YouTube
Generation X
•77% Facebook
Age 33-48
•92% YouTube
•59% Linkedin
Baby Boomers
•71% Facebook
Age 49-67
•81% YouTube
Matures
•46% Linkedin
•59% Facebook
•58% YouTube
68+
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1.
2.
3.
4.
5.
6.
7.
8.
9.
Target a specific audience
Be a thought leader
Be authentic and transparent
Create LOTS of links
Encourage people to contact you
Participate in the discussion
Make it easy to find you
Encourage people to BOOKMARK
Try new things!
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•
•
•
Blogs are usually maintained by an individual with
regular entries of commentary, descriptions of
events, or other material such as graphics or
video.
Most blogs can be interactive, allowing visitors to
leave comments and even message each other via
widgets on the blogs and it is this interactivity
that distinguishes them from other static
websites.
As of February 2011, there were over 156 million
public blogs in existence.
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Requires minimal investment to establish.
Requires commitment to provide updates and new information
to stay relevant.
Requires strategic approach to information shared as everyone
can see your information and point of view.
Requires intentional content—what purpose will the blog serve?
Requires constant moderation if visitors can comment.
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You-Tube is still the most popular, but more and more are showing up!
Doesn’t have to be expensive
Don’t make it long
Show what you’ve done
Show what is possible
Focus on solutions and ideas
Feature your customers to showcase your impact
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V. Discussion
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•
•
Do you have a Marketing Strategy in your
organization?
What is your organization doing to become a
thought leader with:
◦ consumers
◦ payers
◦ Donors
•
What technologies are you using in your
marketing program? How are you using social
media?
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2014 Planning & Innovation Institute
June 3-5, 2014 - New Orleans, Louisiana
2014 California Planning & Performance Management
Institute
August 20-21, 2014 - San Diego, California
2014 Executive Leadership Retreat
September 9-12, 2014 - Gettysburg, Pennsylvania
2014 Technology & Informatics Institute
November 5-6, 2014 - Washington, D.C.
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The market intelligence to navigate.
The management expertise to succeed.
www.openminds.com
[email protected]
717-334-1329 | 877-350-6463
163 York Street, Gettysburg , Pennsylvania 17325