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Important to any successful practice is marketing. We have described various components of the marketing concept in previous articles, but one thing is certain, marketing comes with specific costs. One major goal is to minimize the costs and to maximize the outcomes. We do that by fully understanding our target market. The target market we serve defines who our patients/customers truly are, which surprisingly, many do not really know. They think they know, but when pressed about simple things like how far the average patient is from their office, we often get blank stares, or some grandiose comment indicating that patients come from thousands of miles away for their examination and glasses. Neither of these is very helpful when attempting to help design a successful marketing program for these practices. We must better understand the potential patient population to determine a number of things. We will discuss that concept further along in this article.

Marketing Defined

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 meeting the target markets needs and desires through the use of effective pricing, communication and distribution to inform motivate and service the markets. The way the staff dresses, the location we select and a multitude of other considerations are important. Marketing is far more than media advertising, but since that is an important component, let us evaluate some things related to advertising for your consideration. 

Advertising

Advertising requires some research on your part. First, you must know who your target market is, and how best to reach them. The Super Bowl costs $2 + million dollars for a 30-second spot, and would let the world know your message, but is that a good buy for the average independent? Of course not, unless you have a substantial national presence, so you must know the appropriate media for your message, and then direct it appropriately towards the target population. You must know who your patients are and where they live. Market analysis and some research can easily answer this question. Review things like addresses and zip codes, area codes, etc. You can then understand which media may be most successful in reaching that population.

My Experience

In my own practice, I enjoyed using a variety of media. I was located primarily in a military town and the Yellow Pages were a great media for me, because the troops in need of my services could find me there easily. This media may not be best for you, particularly since print media today is declining somewhat, but it was a great medium for the transient nature of my community. I also used some radio that played the music most of my patients listened to regularly. As I expanded to several locations, I used a large FM station that provided coverage for all my satellite locations in surrounding communities as well as my main office. For a single location, a cheaper, more localized station may be best for you.

Also important to the mix was Cable TV, targeted to the market. Again, the market was very young, with an average age of 27, so we used MTV and ESPN to reach them with appropriate messages in the ads. The Home and Garden network was not a good media buy for my particular situation. I found cable cost effective for my small practice, and it may be a good medium to reach your target population.

Over the years we also used some limited direct mail and regular small ads in the local newspaper to round out our message. I found this mix appropriate. It may not meet your needs, but I think you get the idea. You must find the mix that works best for by knowing who you are trying to reach, the best time to reach them, and what to say in the ads to get their attention. One thing I will say is important in all markets is to be consistent. Do not expect big things from your advertising program if you are not willing to invest in a planned program on a regular basis. There are folks to assist if you need guidance, but do not expect to see a large jump in sales if you place a small ad in the local paper. Plan a program to reach your patient base and then provide adequate coverage to stimulate their interest.

Demographics

It is imperative we recognize not just where our potential patients live, but a number of other demographic considerations are also important. We must provide the products and services the patients in our target market need and desire, so knowing the demographics is all important. Age, gender, income and other specific information can be found in patient records, and if no records exist (new practices, for example), we should consult things like the local Chamber of Commerce and the colleges and universities in the area for assistance in finding that information. It is not hard if you just look. We also need to understand other important aspects of the population. Do we seek to serve the high-end market, or are we value oriented? Questions like this are important as well to developing our marketing program. But the patients we serve are not the only “customers” we serve. 

Physicians and Optometrists; Referral Sources

It is important to know the prescribers in the area. If you want to start out completely independent and not have refractions services available, getting to know them is imperative to getting any kind of referrals. If you want to have a refractionist on premises, which is necessary in many places, you still need to know the competition. Either way, at some point in time, we may need to interact with some of these folks, so having a positive working relationship with them, even if they dispense, can be important to your practices.

Third-Party Plans

Today, insurance is a big part of the eye care industry. Most doctors’ offices take a large portfolio of insurance plans, and understanding this type of reimbursement can be beneficial. While some plans like VSP literally eliminate opticians from participating, there are some, like EyeMed, that do not. Understanding the provisions and reimbursement levels may be a source of income for you, and so developing a relationship with these plans can be important. Some are seeking niche markets that increases their competitive advantage in the marketplace and do not accept insurance of any kind, but this is a business decision that should be weighed appropriately so that a sound decision can be made.

Conclusion

Understanding our target market is important. Just as a television spot on the Super Bowl is probably not a good buy for the corner optical shop, advertising to the wrong market will not generate the results you seek. My young Marines were not watching Home and Garden, but were into MTV and ESPN. The right media and message will bring folks in the door. Just hanging out a shingle will give you little chance of succeeding in practice, but just throwing out advertising content will not either. You must know who the target population is and reach them in a cost efficient and effective manner. If you are uncomfortable with this task, there are folks who can help you, but make sure to have an independent guide you through the process, not someone selling a particular type of media. Marketing is important. Be sure to maximize your potential by being fully aware of your target market.

Warren G. McDonald, PhD
Professor of Health Administration
Reeves School of Business / Methodist University