© Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION & Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Part Two © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett L NOT FOR SALE OR D © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Marketing Communications © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett L NOT FOR SALE OR D © Jones & Bartlett L NOT FOR SALE OR © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION & Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett L NOT FOR SALE OR D © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett L NOT FOR SALE OR D © Jones & Bartlett L NOT FOR SALE OR © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION chapter & Bartlett Learning, LLC SALE OR DISTRIBUTION 8 © Jones & Bartlett L NOT FOR SALE OR D Missed Opportunities © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Bartlett Learning, LLC SALE OR DISTRIBUTION SNAPSHOT © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION Institutions: Briarwood Medical Center, a 550-bed, not-for-profit institution © offering Jones & Bartlett Learning, LLC © Jones & Bartlett L general medical and surgical services NOT FOR SALE OR D NOT FOR SALE OR DISTRIBUTION Crestview Hospital, a 475-bed, for-profit establishment providing general medical and surgical services Location: Oakland (population South Central Learning, LLC © Jones & Bartlett Learning, LLC204,086), located in the © East Jones & Bartlett of the United States NOT FOR SALEregion OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTIO Characters: Mr. Michael Anderson, Chief Executive Officer Ms. Susan Daniels, Chief Marketing Officer Pamela Goldman, Board©President Bartlett Learning,Ms. LLC Jones & Bartlett Learning, LLC Mr. Frank Miller, Chief Executive Officer SALE OR DISTRIBUTION NOT FOR(retired) SALE OR DISTRIBUTION (all of Briarwood Medical Center) Mr. Steve Williams, Sales Representative, Southeastern Outdoor Context: © In Jones & Bartlett Learning, LLC © Jones & Bartlett L this case, the top marketing officer of a medical center attempts NOT NOT FOR SALE OR DISTRIBUTION to secure two billboards occupying a prized location, but her re- FOR SALE OR quest is rejected by the institution’s chief executive officer, leading to a rather precarious situation. © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO 41 © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION & Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION 42     C hapter 8 © Jones & Bartlett Learning, LLC © Jones & Bartlett L Susan Daniels, Chief Marketing Officer at Briarwood Medical Center, NOT FOR SALE OR D NOT FOR SALE OR DISTRIBUTION 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 © Jones & Bartlett Learning, LLC Medical Center would © Jones & Bartlett located adjacent to Briarwood be available at the Learning, LLC NOT FOR SALE DISTRIBUTION SALE OR DISTRIBUTIO end of OR the month. The two panels had long beenNOT leasedFOR 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 communicaBartlett Learning, LLC © Jones & Bartlett LLC tions opportunity for Briarwood Medical Center becauseLearning, the billboard SALE OR DISTRIBUTION NOT FOR running SALE OR DISTRIBUTION panels, situated on the main traffic corridor by the establishment, 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 © Jones &Medical Bartlett Learning, LLC © Jones & Bartlett L for Briarwood Center and he also knew that the ideal location of FOR SALE OR DISTRIBUTION theNOT panels made the establishment an obvious lessee. On learning NOT of the FOR SALE OR D 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. © Jones & Bartlett Learning, Jones Bartlett Learning, LLC This was especially theLLC case as Briarwood Medical©Center was&entangled in a seemingly endless battle for market share against a skilled NOT FOR SALE OR DISTRIBUTION NOT FORcompetitor, SALE OR DISTRIBUTIO making every opportunity to win patients crucial. Briarwood Medical Center, a 550-bed, not-for-profit healthcare establishment, is based in Oakland, a city of 204,086 residents located in the East South United States. It competes against an Bartlett Learning, LLCCentral region of the © Jones & Bartlett Learning, LLC aggressive for-profit competitor, Crestview Hospital, a 475-bed facility SALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTION 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 providerLearning, in Oakland,LLC outpacing competitors on©every Jones & Bartlett Jones & Bartlett L level. However, Briarwood Medical Center’s market position began to NOT FOR SALE OR NOT FOR SALE OR DISTRIBUTION 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 possessed by the institution, a feat made even more difficult given Crestview © Jones & Bartlett Learning, LLC © Jones & Bartlett Learning, LLC Hospital’s close proximity, located just 2 miles away from Briarwood on NOT FOR SALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTIO the same roadway, State Street. © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION & Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION M i s s e d O p p o r t u n i t i e s      43 © Jones & Bartlett Learning, LLC © Jones & Bartlett L Briarwood Medical Center initially struggled in this new environment, NOT FOR SALE OR D NOT FOR SALE OR DISTRIBUTION slowly losing market share for a decade. Poor results led Briarwood’s governing 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 © Jones & Bartlett Learning, © Jones & Bartlett it a small edge over LLC Crestview Hospital in the market leadership battle.Learning, LLC NOT FOR SALE OR NOT SALE OR DISTRIBUTIO Much of DISTRIBUTION Briarwood Medical Center’s success has beenFOR 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-beBartlett Learning, LLCbillboard panels, but one ©problem Jones stood & Bartlett Learning, LLC ­available in her way—Briarwood’s SALE OR DISTRIBUTION FOR SALE OR DISTRIBUTION new Chief Executive Officer, NOT 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 © & Bartlett Learning, Jones & Bartlett L theJones discipline of marketing, especiallyLLC its advertising component,©viewing NOT FOR SALE OR D NOT SALE DISTRIBUTION patientFOR traffic simplyOR 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, © Jones & Bartlett Learning, LLC © Jones & Bartlett so do marketing communications, among many other things. Her re-Learning, LLC search that many patients have the opportunity select most NOT FOR SALE ORindicated DISTRIBUTION NOT FORtoSALE OR DISTRIBUTIO any healthcare provider in Oakland, as most insurance plans offered in the community permit at least some degree of choice. And most physicians in the area have privileges at multiple hospitals in the community. Given this, patients have a choice as to where they receive medical LLC serBartlett Learning, LLC © Jones & Bartlett Learning, vices, something that, at least in part, is influenced by marketing comSALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTION 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 Learning, advertisements. She, too, was very aware©ofJones those & Bartlett L © Jones Bartlett LLC patients who do not have a relationship with any medical provider, knowNOT FOR SALE OR NOT FOR SALE OR DISTRIBUTION 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© Jones & Bartlett Learning, LLC © Jones & Bartlett Learning, LLC tionale, Michael remained unconvinced, viewing advertising to be a cost NOT FOR SALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTIO rather than an investment. © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION & Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION 44     C hapter 8 © Jones & Bartlett Learning, LLC © Jones & Bartlett L Given this history, Susan knew that convincing Michael to support the NOT FOR SALE OR D NOT FOR SALE OR DISTRIBUTION 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 © Jones & Bartlett Learning, © Jones to additional resources.LLC Each of the two panels costs $2500 & perBartlett month Learning, LLC NOT FOR SALE OR lease DISTRIBUTION FOR SALE OR DISTRIBUTIO for a total fee of $30,000 over the 6-monthNOT 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 Bartlett Learning, LLC on advertising. © Jones & Bartlett Learning, LLC much money SALE OR DISTRIBUTION FOR OR DISTRIBUTION After the meeting, Susan began toNOT ponder the SALE fate of Briarwood Medical Center under a leader who ignored factual information and failed to acknowledge that marketing efforts largely were responsible for Briarwood’s turnaround 10 years ago. Susan knew that many board members were heavily © Jones Bartlett Learning, LLC ©over Jones & Bartlett L supportive of & marketing initiatives, having witnessed associated results NOT FOR SALE OR D SALE DISTRIBUTION theNOT years,FOR but she felt asOR 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 © Jones & Bartlett LLC © Jones & Bartlett work on a Learning, bright Monday morning. As she drove down State Street, about Learning, LLC to turnOR intoDISTRIBUTION Briarwood’s employee parking lot, herNOT eyes glanced up at the NOT FOR SALE FOR SALE OR DISTRIBUTIO 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 facings, situated in perfect view Bartlett Learning, LLC not just one facing, but©both Jones & Bartlett Learning, LLC of patients entering and leaving Briarwood Medical Center from either SALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTION 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. © Jones & Bartlett Learning, LLCSusan was crushed. © Jones & Bartlett L Immediately on making her way into her office, Susan received a teleNOT FOR SALE OR NOT FOR SALE OR DISTRIBUTION 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 © Jones & Bartlett Learning, LLC © Jones & Bartlett Learning, LLC outraged, was more than happy to enlighten Pamela on the past few weeks NOT FOR SALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTIO at Briarwood Medical Center. © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION & Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION M i s s e d O p p o r t u n i t i e s      45 © Jones & Bartlett Learning, LLC D I S FOR C U SSALE S I O NOR DISTRIBUTION NOT © Jones & Bartlett L NOT FOR SALE OR D 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© Jones & Bartlettsible Learning, LLCof these postings for Briarwood © Jones & Bartlett ramifications Medical Center?Learning, LLC NOT FOR SALE OR NOT FOR SALE OR DISTRIBUTIO ForDISTRIBUTION 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 Bartlett Learning, LLC © Jones Bartlett Learning, LLC and advertising specifically. Despite & solid evidence of the benefits SALE OR DISTRIBUTION NOT FOR SALE OR DISTRIBUTION 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 © Jones & Bartlett Learning, © Jones & Bartlett L to counter Crestview Hospital’sLLC new billboard postings? Assuming NOT FOR SALE OR D NOT FOR OR board DISTRIBUTION that theSALE governing mandates that additional advertising funds be forwarded to Susan for bolstering Briarwood’s advertising initiatives, how would you recommend that these funds be spent? Please justify your recommendations. 4. Pamela seemed very upset about Crestview Hospital’s billboardsLearning, LLC © Jones & Bartlett Learning, LLC © Jones & Bartlett andDISTRIBUTION she demanded answers. As the case concluded, it appeared that DISTRIBUTIO NOT FOR SALE OR NOT FOR SALE OR Susan was about to provide those answers, likely pointing the finger 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&orBartlett why not?Learning, LLC Bartlett Learning, LLC © Jones 5. Susan appeared to struggle with whether contact SALE OR DISTRIBUTION NOT FOR SALE she OR should DISTRIBUTION 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 command. Had you been in Susan’s position, what action would you © Jones & Bartlett Learning, LLC © Jones & Bartlett L have taken and why? NOT FOR SALE OR NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTIO © Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176 Bartlett Learning, LLC SALE OR DISTRIBUTION © Jones & Bartlett Learning, LLC NOT FOR SALE OR DISTRIBUTION
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