Paging Dr. Promo ...

How to practice promotional medicine with the hospital and health care industries

By Michael Cornnell

Despite the loss of pharmaceutical income a few years back, the health care market still has a reputation for being a huge buyer of promotional products. There are many sub-markets to the health care world, from orthodontists and chiropractors to local gyms and Weight Watchers groups. While all these subdivisions are worth pursuing, it would be a mistake not to give some thought to one of the bigger buyers in the group: hospitals.


Hospitals are not only a potentially huge source of business because of their overall depth of wealth, but because of the diversity of their marketing needs. Within your standard hospital, you can find niches for stationary and writing items, children's products, fundraiser items, illness-related awareness programs, advertising for the hospital as a whole, advertising for specific new programs of the hospital, employee rewards and incentive programs, employee recruitment, and gift shops just to name a few options. With so much opportunity, it's safe to say that hospitals have the potential to be extremely lucrative clients. Getting in and working with one isn't much different than working with other businesses either. All it takes is a little background knowledge, insight into their internal management structure and attention to their needs as clients.

WHAT'S GOING ON:
If you've never worked within the health care industry, let alone hospitals, you may be wondering about the market's overall financial health. After all, even though the huge amount of money flowing in and out of most institutions might support assumptions of stability, it's not like the American health care system is known for its overall fiscal strength (and that's not even factoring in any damage the recession might have caused). Luckily, it seems that most of the market's financial issues are either past or passing.

"The health care market is growing, but that doesn't always mean their marketing budgets are growing with them," said Jerry Milwit, owner of Dominion Promotions, Glen Allen, Va., part of Adventures in Advertising, Neenah, Wis. "The good news is these organizations are continuously looking to build their brands and they generally enjoy implementing promotional marketing into their mix," he said. "The challenge is that their budgets can sometimes hinder getting the most out of their dollar, which could impact their R.O.I. That's precisely why they need a professional promotional consultant to help them stretch their dollar by choosing the right items tied to the right program and for the right audience."

Larry Yurkonis, marketing for Target Industries, Owosso, Mich., agreed with Milwit's overall assessment. "I think that [the health care market] will continue to grow, despite some of the setbacks regarding the pharmaceutical companies and their promotions to doctors. It isn't what it was in the heyday a few years back, but the opportunity is still there with certain applications."

WHO TO TALK TO:
When it comes to hospitals, breaking in isn't much different than with other mid-to-large-sized businesses. "Research and seek out a smaller department to get in the door," said Milwit. "Use your own promotional marketing expertise to create a fun, clever three-dimensional direct mail campaign to break the ice. Once you're in the door, be prepared to ask a lot of questions to better understand how you can help them."

Which department you decide to contact may be based on an idea or personal contact you have, or you may decide to reach out to specific staff within the hospital that have some control over the marketing budget. Who actually manages purchasing will vary from hospital to hospital, but looking for a centralized marketing department is generally a good place to start. "With hospitals, I've found the marketing directors typically do the buying," said Milwit. Mindy Benson, sales executive, The Vernon Company, Newton, Iowa, noted that one of her hospital clients makes use of a centralized marketing department as well. She explained that this marketing department acts like an approval hub, handling the many product purchases the hospital may require for its individual departments and causes. "By doing this, they ensure that all items are logo approved by the brand team and all imprints follow their identity standards," she said.

Milwit and Benson both noted however, that a primary marketing department was not always the only gatekeeper of a hospital's purchasing budget. Despite the prevalence of centralized marketing hubs, there are often smaller departments within hospitals that will have a separate budget to pull from. Milwit suggested looking at the manager or director of birthing centers, as well as the manager of community outreach for potential opportunities. Benson said that with the same hospital client that uses the major central marketing hub, she also works independently with a separate department that handles the hospital's gift items, memorabilia and event-specific items throughout the year.

HOW TO HOLD ON:
Like any other business, holding on to hospital clients is a matter of picking up on their needs. "Understand their challenges," said Milwit. "Many of these influences and decision-makers are overworked and under-resourced. Couple that with shrinking budgets and you have a very stressed out customer in front of you," he explained. "Help them by being prepared for your meetings, don't overload them with too many choices. Suggest a few of your 'favorites' and provide samples."

Benson agreed with the value of good customer service. "Be genuine and sincere and show that you care," she said. "Let them see that you can make their day easier if they lean on you for ideas and assistance with daily tasks," she explained. "Positive results and kind words travel fast and in time, you may be referred within the organization to other departments and buyers."
THE VALUE OF CREATIVITY:

Yurkonis, marketing for Target Industries, Owosso

"There are two kinds of clients out there and two kinds of distributors," he said. "One type is creative and inventive and produces many successful programs. The other type is more conservative and they usually go with the obvious," he explained. "A dentist picks a toothbrush and a doctor picks a syringe highlighter/pen, etc." Yurkonis cautioned against this predictably, and also against those who just look for the "the latest and greatest" products. "In many cases they pick an item that has no bearing on the overall promotion," he said. "It looks neat, but does it do the job?" Yurkonis stressed the importance of creativity in making an impression on clients, providing several examples:

• A mirror for a dentist's office that said, "You look for the spinach, we'll look for everything else."
• A baseball stress ball for another dentist's office. The print on the baseball read "All-Star Patient of Dr. Johnson," and after the appointment, the dentist would sign the ball and give it to the patient.
• For a chiropractor practice, a sliding square puzzle, that when put in order made an image of a spine.
• A magnifying glass for a senior care center printed with something like "We take care of the details."