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Part two

Marketing
Communications

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C
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41

8
Missed Opportunities

SNAPSHOT

Institutions:
Briarwood Medical Center, a 550-bed, not-for-profit institution
offering general medical and surgical services
Crestview Hospital, a 475-bed, for-profit establishment providing
general medical and surgical services

Location:
Oakland (population 204,086), located in the East South Central
region of the United States

Characters:
Mr. Michael Anderson, Chief Executive Officer
Ms. Susan Daniels, Chief Marketing Officer
Ms. Pamela Goldman, Board President
Mr. Frank Miller, Chief Executive Officer (retired)
(all of Briarwood Medical Center)
Mr. Steve Williams, Sales Representative, Southeastern Outdoor

Context:
In this case, the top marketing officer of a medical center attempts
to secure two billboards occupying a prized location, but her re-
quest is rejected by the institution’s chief executive officer, leading
to a rather precarious situation.

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42 Ch a p t e r 8

Susan Daniels, Chief Marketing Officer at Briarwood Medical Center,
has been on a roller coaster ride that unfortunately ended on a low point.
This all started 1 month ago when she received a telephone call from
Steve Williams, a sales representative from Southeastern Outdoor. Much
to Susan’s surprise, Steve communicated that both facings of a billboard
located adjacent to Briarwood Medical Center would be available at the
end of the month. The two panels had long been leased by State Street
Paints, a family-owned company that recently communicated that it was
going out of business after 35 years of service. For the first time in years,
the panels were available, presenting an excellent marketing communica-
tions opportunity for Briarwood Medical Center because the billboard
panels, situated on the main traffic corridor running by the establish-
ment, were located in such proximity that they appeared to be placed on
medical center property.

Steve knew that Susan had been very interested in securing the panels
for Briarwood Medical Center and he also knew that the ideal location of
the panels made the establishment an obvious lessee. On learning of the
availabilities, Susan found it difficult to contain her enthusiasm. She was
very much aware that the panels offered countless opportunities to market
the medical center and believed that they would be excellent investments.
This was especially the case as Briarwood Medical Center was entangled
in a seemingly endless battle for market share against a skilled competitor,
making every opportunity to win patients crucial.

Briarwood Medical Center, a 550-bed, not-for-profit healthcare estab-
lishment, is based in Oakland, a city of 204,086 residents located in the
East South Central region of the United States. It competes against an
aggressive for-profit competitor, Crestview Hospital, a 475-bed facility
providing roughly parallel services in the same market. Briarwood is the
more historic of the two institutions, having been founded 75 years ago,
and traditionally enjoyed decades of market leadership as a result of being
the best practices provider in Oakland, outpacing competitors on every
level. However, Briarwood Medical Center’s market position began to
change 20 years ago with the introduction of Crestview Hospital into the
market. For the first time in its history, Briarwood Medical Center faced
a competitor that challenged each and every competitive advantage pos-
sessed by the institution, a feat made even more difficult given Crestview
Hospital’s close proximity, located just 2 miles away from Briarwood on
the same roadway, State Street.

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M i s s e d O p p O r t u n i t i e s 43

Briarwood Medical Center initially struggled in this new environment,
slowly losing market share for a decade. Poor results led Briarwood’s gov-
erning board to appoint a new management team, of which Susan was a
member, and the fortunes of the institution began to change thereafter.
Briarwood eventually recaptured much of its lost market share, giving
it a small edge over Crestview Hospital in the market leadership battle.
Much of Briarwood Medical Center’s success has been credited to Susan
as she was the architect of the establishment’s marketing initiatives, which
helped restore competitiveness and prosperity.

An aggressive marketer, Susan intended to acquire the soon-to-be-
available billboard panels, but one problem stood in her way—Briarwood’s
new Chief Executive Officer, Michael Anderson. Michael was hired
6 months ago, replacing the retiring Frank Miller, a member of Briarwood’s
turnaround team who was appointed along with Susan 10 years ago. In
recent meetings, Susan has come to realize that Michael does not respect
the discipline of marketing, especially its advertising component, viewing
patient traffic simply to be the result of physician referrals or insurance
coverage mandates.

Susan knew better and she had data to support her position. While
physician referrals and insurance coverage do influence patient traffic,
so do marketing communications, among many other things. Her re-
search indicated that many patients have the opportunity to select most
any healthcare provider in Oakland, as most insurance plans offered in
the community permit at least some degree of choice. And most physi-
cians in the area have privileges at multiple hospitals in the community.
Given this, patients have a choice as to where they receive medical ser-
vices, something that, at least in part, is influenced by marketing com-
munications.

In fact, Susan’s recent patient satisfaction survey indicated that 42% of
new patients were at least somewhat influenced to visit Briarwood Medical
Center as a result of its advertisements. She, too, was very aware of those
patients who do not have a relationship with any medical provider, know-
ing that these patients often look to advertising, among other things, as
they go about making their patronage decisions. And this did not even
begin to address the value of marketing communications in influencing
patronage in the area of elective services. Despite Susan’s evidence and ra-
tionale, Michael remained unconvinced, viewing advertising to be a cost
rather than an investment.

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44 Ch a p t e r 8

Given this history, Susan knew that convincing Michael to support the
purchase of the billboards would be very difficult but, undeterred, she
scheduled a meeting with him to discuss the billboard lease. Because her
advertising budget was already committed to other initiatives, she did not
have the funds necessary to secure the panels and therefore needed access
to additional resources. Each of the two panels costs $2500 per month
for a total lease fee of $30,000 over the 6-month contract period—the
minimum term available. In the meeting, Susan made a compelling case
for leasing the billboard panels, but Michael emphatically rejected her
request and noted that he believed Briarwood was already spending too
much money on advertising.

After the meeting, Susan began to ponder the fate of Briarwood Medical
Center under a leader who ignored factual information and failed to ac-
knowledge that marketing efforts largely were responsible for Briarwood’s
turnaround 10 years ago. Susan knew that many board members were heavily
supportive of marketing initiatives, having witnessed associated results over
the years, but she felt as though she could not break the chain of command
to ask for their assistance. Given Michael’s resistance, Susan believed that she
had no other choice than to forfeit the billboard opportunity.

A few weeks pass and, with a new month beginning, Susan set out to
work on a bright Monday morning. As she drove down State Street, about
to turn into Briarwood’s employee parking lot, her eyes glanced up at the
north facing of the billboard she had been so desirous of securing. Her
heart nearly stopped. Listed in bold letters and bright colors right before
her eyes was the billboard of Crestview Hospital. Briarwood’s arch rival
had secured not just one facing, but both facings, situated in perfect view
of patients entering and leaving Briarwood Medical Center from either
direction on the heavily traveled State Street. And the tag line used in the
ads—The Best Medical Care in Oakland—did not help matters. Given the
proximity of the panels to campus, it was almost like Briarwood Medical
Center was promoting Crestview Hospital. Susan was crushed.

Immediately on making her way into her office, Susan received a tele-
phone call from Pamela Goldman, President of Briarwood’s governing
board, and she was furious. Pamela had tried to reach Michael for an
explanation as to how Briarwood allowed this to happen, but he had not
responded, so she decided to contact Susan for answers. Susan, equally
outraged, was more than happy to enlighten Pamela on the past few weeks
at Briarwood Medical Center.

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M i s s e d O p p O r t u n i t i e s 45

D I S C U S S I O N

1. Susan found Crestview Hospital’s new billboard postings to be
especially troubling because they were placed in a location directly
adjacent to Briarwood Medical Center. What do you see as the pos-
sible ramifications of these postings for Briarwood Medical Center?
For example, how might patients of the establishment react? What
about other community stakeholders?

2. Michael thwarted an opportunity to secure the prized billboards,
seemingly resulting from negative views of marketing generally
and advertising specifically. Despite solid evidence of the benefits
of marketing and advertising when used appropriately, some in the
healthcare industry possess views similar to those held by Michael.
Why do you think this is the case?

3. What actions do you believe Briarwood Medical Center should take
to counter Crestview Hospital’s new billboard postings? Assuming
that the governing board mandates that additional advertising funds
be forwarded to Susan for bolstering Briarwood’s advertising initia-
tives, how would you recommend that these funds be spent? Please
justify your recommendations.

4. Pamela seemed very upset about Crestview Hospital’s billboards
and she demanded answers. As the case concluded, it appeared that
Susan was about to provide those answers, likely pointing the fin-
ger at Michael. Given the billboard debacle, how should Briarwood
Medical Center’s governing board address Michael? Do you see his
tenure at Briarwood threatened? Why or why not?

5. Susan appeared to struggle with whether she should contact
Briarwood Medical Center’s governing board when Michael rejected
her request. She knew the board members very well, given her years
of service at Briarwood, but she opted to respect the chain of com-
mand. Had you been in Susan’s position, what action would you
have taken and why?

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Case Study 3: Missed Opportunities

Due Week 9 and worth 100 points

Read the case study titled “Missed Opportunities”, located in the online course shell.

Please read the grading rubric


Write a six (6) page paper in which you:

1. Examine the pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Briarwood Medical Center. Interpret the reaction of customers and other community stakeholders to the billboard postings.

2. Use competitive marketing entry strategies to suggest the action that Briarwood Hospital should undertake to counter the messages in the new Crestview Hospital Billboard postings.

3. Recommend the marketing communication strategy or strategies that both Crestview and Briarwood Hospitals should employ. Justify why the Governing Board of both hospitals should take a proactive role in promoting and implementing effective marketing strategies.

4. Assess the value of the various marketing research tool(s) that Briarwood and Crestview hospital could use to promote effective marketing communication strategies. Justify your response.

5. Use at least nine (9) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

· Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations

· References must follow APA.

· Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

· Evaluate marketing research tools involved in the marketing process.

· Formulate competitive market entry strategies based on analysis of global markets that comply to initiatives in the health care industry.

· Determine the marketing communications strategy used in health care services.

· Use technology and information resources to research issues in health services strategic marketing.

· Write clearly and concisely about health services strategic marketing using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

Grading Rubric

Points: 100

Case Study 3: Missed Opportunities

Criteria

Unacceptable

Below 70% F

Fair

70-79% C

Proficient

80-89% B

Exemplary

90-100% A

1. Examine the pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Briarwood Medical Center. Interpret the reaction of customers and other community stakeholders to the billboard postings.

Weight: 25%

Did not submit or incompletely examined the pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Briarwood Medical Center. Did not submit or incompletely interpreted the reaction of customers and other community stakeholders to the billboard postings.

Partially examined the pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Briarwood Medical Center. Partially interpreted the reaction of customers and other community stakeholders to the billboard postings.

Satisfactorily examined the pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Briarwood Medical Center. Satisfactorily interpreted the reaction of customers and other community stakeholders to the billboard postings.

Thoroughly examined the pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Briarwood Medical Center. Thoroughly interpreted the reaction of customers and other community stakeholders to the billboard postings.

2. Use competitive marketing entry strategies to suggest the action that Briarwood Hospital should undertake to counter the messages in the new Crestview Hospital Billboard postings.
Weight: 20%

Did not submit or incompletely used competitive marketing entry strategies to suggest the action that Briarwood Hospital should undertake to counter the messages in the new Crestview Hospital Billboard postings.

Partially incompletely used competitive marketing entry strategies to suggest the action that Briarwood Hospital should undertake to counter the messages in the new Crestview Hospital Billboard postings.

Satisfactorily incompletely used competitive marketing entry strategies to suggest the action that Briarwood Hospital should undertake to counter the messages in the new Crestview Hospital Billboard postings.

Thoroughly incompletely used competitive marketing entry strategies to suggest the action that Briarwood Hospital should undertake to counter the messages in the new Crestview Hospital Billboard postings.

3. Recommend the marketing communication strategy or strategies that both Crestview and Briarwood Hospitals should employ. Justify why the Governing Board of both hospitals should take a proactive role in promoting and implementing effective marketing strategies.

Weight: 20%

Did not submit or incompletely recommended the marketing communication strategy or strategies that both Crestview and Briarwood Hospitals should employ. Did not submit or incompletely justified why the Governing Board of both hospitals should take a proactive role in promoting and implementing effective marketing strategies.

Partially recommended the marketing communication strategy or strategies that both Crestview and Briarwood Hospitals should employ. Partially justified why the Governing Board of both hospitals should take a proactive role in promoting and implementing effective marketing strategies.

Satisfactorily recommended the marketing communication strategy or strategies that both Crestview and Briarwood Hospitals should employ. Satisfactorily justified why the Governing Board of both hospitals should take a proactive role in promoting and implementing effective marketing strategies.

Thoroughly recommended the marketing communication strategy or strategies that both Crestview and Briarwood Hospitals should employ. Thoroughly justified why the Governing Board of both hospitals should take a proactive role in promoting and implementing effective marketing strategies.

4. Assess the value of the various marketing research tool(s) that Briarwood and Crestview hospital could use to promote effective marketing communication strategies. Justify your response.

Weight: 20%

Did not submit or incompletely assessed the value of the various marketing research tool(s) that Briarwood and Crestview hospital could use to promote effective marketing communication strategies. Did not submit or incompletely justified your response.

Partially assessed the value of the various marketing research tool(s) that Briarwood and Crestview hospital could use to promote effective marketing communication strategies. Partially justified your response.

Satisfactorily assessed the value of the various marketing research tool(s) that Briarwood and Crestview hospital could use to promote effective marketing communication strategies. Satisfactorily justified your response.

Thoroughly assessed the value of the various marketing research tool(s) that Briarwood and Crestview hospital could use to promote effective marketing communication strategies. Thoroughly justified your response.

5. Five (5) references

Weight: 5%

No references provided

Does not meet the required number of references; some or all references poor quality choices.

Meets number of required references; all references high quality choices.

Exceeds number of required references; all references high quality choices.

6. Clarity, writing mechanics, and formatting requirements

Weight: 10%

More than 6 errors present

5-6 errors present

3-4 errors present

0-2 errors present