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Marketing the Optometric Practice

Chris Woodruff, O.D., M.B.A., FAAO

Chris Woodruff, O.D., M.B.A., FAAOMany optometrists are under the impression that the term marketing refers only to advertising. Since advertising by health care providers was considered unprofessional until relatively recently, many optometrist do not seek help in marketing their practices. What they fail to realize is that they are marketing their practices even though they are unaware of it and some of the things they are doing are ineffective or even harmful.

Marketing is the process of getting buyers and sellers together. It is the process of letting potential patients know what products and services you offer. Marketing is the sign in front of your building, your letterhead, your business card, the physical appearance of your office, and even the way your staff answers the phone. The emphasis of modern marketing programs is creating and delivering customer value and satisfaction at a profit. The goal of your marketing program should be to attract new patients by promising superior value and to retain existing patients by delivering satisfaction. It is the patient’s perception of their experiences in your practice that are important.

The marketing process consists of four steps: analyzing marketing opportunities, selecting target markets, developing the marketing mix, and managing the marketing effort. In this article I will walk you through the process from start to finish.

To begin the marketing process we need to take a look at human behavior. Psychologists tell us that human needs are state of deprivation. These needs can be physical (food, clothing, shelter), social (belonging and affection), or individual (knowledge and self expression).  Our culture and personality shape these needs into wants. These wants reflect an individual’s desires or preferences in satisfying their needs. While marketers cannot control human needs, they can influence their wants. When wants are backed by buying power, they become demands. To develop a successful marketing program we must understand our patient’s needs, wants, and demands.

An environmental analysis will help us identify marketing opportunities. We must keep up to date with both the local and global marketplace. We can do this by reading publications that cover the optical business, attending the exhibit halls at optometric meetings, and talking with local frame and contact lens sales representatives. We should be aware of the economic environment that influences our patients’ buying decisions. To begin our marketing program we must perform an industry analysis.

The industry analysis includes assessing the level of competition in the local market. When competition is high, the practitioner must offer products and services that distinguish the practice from the competition. In competitive markets optometrists should avoid mass marketing and concentrate instead on market segments. The easiest way to do this is admit that none of us can be all things to all people and decide to concentrate our efforts on those patients we can serve best. Markets can be segmented several different ways: geographically, demographically, or psychographically.  However you decide to segment the market you must recognize that a market segment must be measurable, accessible, and substantial. Examples of market segments include pediatrics, geriatrics, low vision, specialty contact lenses, and sports vision. If you develop an upscale optical in your office, you begin the process of market segmentation.

The marketing mix consists of product, price, place, and promotion. The marketing mix is the strategies and tools you will use to reach your target market segment. Eye care services and products come under the label “shopping goods and services”. These are described as products that are less frequently purchased and available from a limited number of suppliers. It is important to understand the product classification of the products you offer because consumers make buying decisions differently for different product types and marketing strategies vary depending on the product type. Consumers make purchasing decisions on shopping goods and services by comparing suitability, quality, price, and style. Marketing shopping goods and services involves personal selling, sales support, and after sales service. Successfully marketing these products requires expert knowledge of the products being sold.

After you gain an understanding of what is involved in marketing shopping goods and services, you need to determine a pricing strategy. There are many things to consider in pricing goods and services including how demand changes with price changes, the availability of substitute products, and the relationship between cost, volume, and profit. One of the most important considerations in pricing is the effect it has on positioning within the market. You can choose to provide low service for low prices, average services for average prices (at the market pricing), or high services for high prices. Be careful when you make these decisions as it can be difficult to change your position in the market once it is established.

Promotion involves getting your message to the desired market segment. This involves both internal and external communications of your marketing message. It may involve advertising, press releases, public speaking, newsletters, and many other forms of communication. The most important things to remember about promotion is that the message must get to the desired audience and the message must be consistent with your marketing program. For example you would not promote and upscale optical by offering coupons on the tray liner of the local fast food restaurant.

The final step in the marketing process involves managing the marketing mix. Analyzing the effectiveness of your marketing strategy and fine-tuning the process as you proceed. You should solicit feedback from your patients to determine if they are getting the value they seek from your products and services. A marketing program requires occasional maintenance, so don’t put your program on autopilot and ignore it. Create and maintain a quality marketing program and you will reap the rewards with greater patient satisfaction and higher revenues.
   
Chris Woodruff, O.D., M.B.A., FAAO is an Associate Professor at NSU College of Optometry in Fort Lauderdale, Florida. He can be contacted by email at chrisw@nsu.nova.edu.

 

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