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Core Concepts in Marketing
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Some months back, we delved into marketing briefly, and described its importance to the success of the contemporary eye care professional.
For the coming year, my articles will be focused upon more day-to-day operational approaches for the independent eye care professional, and one of the primary issues is the message we send to the consumer. For the next few months we will revisit marketing, and attempt to provide some useful information to assist you in getting your message out to your target market, without breaking the bank. Many think marketing is only advertising, but that is far from correct. Let’s first re-cap our definitions of marketing. |
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Marketing Defined
The term marketing conjures up images of media advertising, which is a component of any successful marketing plan, but it is so much more. According to the American Marketing Association (2007), marketing is, “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” Kotler and Bloom (1984) define marketing as, “The analysis, planning, implementation, and control of carefully formulated programs designed to bring about voluntary exchanges of value with target markets for achieving the organization’s goals. It relies heavily on the meeting the target markets needs and desires through the use of effective pricing, communication and distribution to inform motivate and service the markets”.
Each of these definitions describes far more than just advertising. Since in previous articles we looked closely at advertising, let’s evaluate other components of the marketing mix that can be of importance to your practice.
The 4 Ps
For us to approach marketing from an intelligent perspective, we need to have a clear grasp on the concept of the “marketing mix” (Longet and Darr, 2008). This excellent framework describes the significant components of marketing, the 4 Ps: Product, Place, Price and Promotion.
Product
There are numerous products and services we have available to us on a daily basis. How do we choose the correct frame mix, or the right number of sunglasses? We must be certain we provide for our patients those products and services they value. Some years back, a friend opened a discount optical shop in a very high-fashion shopping center. He was certain this high traffic would make him successful. Unfortunately the target market was more attuned to higher-end merchandise and he flopped miserably. Another friend did as many are trying to do today……go high end! Surely we see it in the magazines all the time, and it will be the savior of us all. NOT! He attempted to sell high-priced frames to folks who were not in the higher income ranges, and also failed.
What one must learn is to provide the right mix of products and services to meet the needs and demands of the target market. That can be accomplished by looking carefully at historical sales data. We will easily be able to ascertain the number of RXs dispensed in a given price range to a particular gender or other specified category. If we want to see if a new service is something our practice can support, do a focus group with long-time patients and let them tell you. Surveys and other types of feedback help us determine the right mix of products and services.
Place
For years we have all heard that the most important thing in any business venture is location, location, location. Selecting a place for your operations is still extremely important. Making sure it is easily accessed by the patients you wish to attract is extremely important. If you are to be a high-end optical boutique, then a shopping mall with high levels of traffic may just be the ticket. If your focus is on price, then it may not be the place for you. Low-cost leaders need a place that is highly visible, but it also must say to those who come in the door that you have what they are seeking.
One issue today that is on the mind of all of us in the eye care industry, and in particular the optical side of the house is online retailing. The issue of place becomes somewhat skewed when we think about the online environment. One major concern is that we have typically provided some services for little to no cost to get patients in our doors. Adjustments quickly come to mind, but there are many more. The consumer has now, unfortunately, placed those in the “free” category, and often come to see us for free adjustments on spectacles purchased online. That really is a conundrum, and we have done it to ourselves.
There will be some pain felt in getting out of this mess, but I encourage you to develop a pricing structure for purchases made elsewhere and stick to it. If patients only come to you for the free stuff, you really don’t need them. If they value what your offer, they will return. Make yourself convenient, and even think about doing your own website to offer online convenience in a fashion that is palatable to you. You do not have to become a mass merchandiser, but can devise an online presence that will help compete in that arena, and still keep patients coming in the door.
Price
We have already discussed price a bit, but think about it this way. A recent graduate student works at a golf course pro shop. His pro got a great deal on some golf shirts at their very exclusive country club. He placed a low price on this recent purchase, thinking his customers would appreciate a “deal.” When you walk in this club, it literally tells you through its appearance that it is expensive. You know the place. The members do not want a deal, but value exclusive merchandise. After meeting with us, they did a small experiment as this student’s final MBA project. He doubled the price on the same exact merchandise, and sold out quickly. It was re-packaged and in a different location, but was still the same shirt. What does that have to do with eyeglasses or contact lenses? It lets us to know that our patients expect a certain level of merchandise and to provide it for them. Just like my friend in the high-end shopping mall with the discount operation that failed, if you do not provide what your target market wants, you will as well. Price appropriately, and you will have a better chance of success.
Promotion
In earlier articles, we have addressed advertising, and I hope you will go back and review those articles to gain a broader insight on how to effectively advertise, but promotion is more than just advertising. Do you serve on community boards? Do you volunteer at the church? Do you make yourself visible out there in the public domain so folks will want to come to see you? This is a part of promotion and costs nothing. When you buy your stationary and business cards do they say to the folks who receive them you are the kind of practice they want to come to for their eye exam? I always recommend not to buy the cheapest card you can find, or worse, print them at home, but to have something designed that is reminiscent of the quality organization you want to portray. Promotion does not mean spend your last dime on a super bowl ad, but to appropriately get the message out to your target market, making them aware of your products and services, and asking them for their business.
Conclusion
The 4 Ps is an important concept. They are a framework around which all of our marketing efforts can be developed, and will allow for higher levels of success. Next month we continue along this path, and talk about target markets. Who are our patients/customers, and how can we effectively reach them. I look forward to it.
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