The Value-Added Approach to Marketing Margot Miller, PT Occupational Health Specialist Advantage Health Systems, Inc. Cloquet, Minnesota
Although most people consider marketing essential to successful business practice, some mistakenly equate it with selling and few fully understand it. Consider the vast array of seemingly similar products and services available in the health care marketplace today. One has only to walk through the exhibit hall at a physical or occupational therapy conference or page through the latest rehab journal to be caught up in the competitive environment. So how can you position your company, product, or service to stand out from the competition? The key to success lies in the support you are willing to provide your customers. This article will highlight the concept of value-added support services to enhance the worth of your product to the customer and put you a step ahead of the competition. In Health Care Marketing, Cooper (1979) refers to marketing as "the set of human activities directed at satisfying needs and wants through exchange processes." Two things become apparent: first, marketing must be a dynamic, ongoing activity that assumes that the consumer's or buyer's wants and needs are in a state of change; second, exchange in marketing requires that both parties benefit from the transaction. Simply put, marketing is satisfying the customer's needs. In fact, the aim of marketing is to know the customer so well that the product or service "fits" and sells itself! In educating and informing the customer about your product or service, emphasize your competitive advantage. Matthews (1988) suggests letting your target markets know that you are special and you
have what they want. In other words, use the value-added approach. The value-added concept in marketing allows you to enhance the value customers see in your product and compete on a level that goes beyond price. Product and service quality, delivery, and reputation are just a few factors that increase the market's perception of the value you deliver. The idea is to differentiate your product to serve the special needs of your customers, offering customtailored services to best meet individual needs. The customer will come to see the values you offer as commanding advantages in the marketplace and choose your product over the competition. Herein lies the concept of value-added services - offerings that enhance the worth of your product in the eyes of your customer. The actual item(s) or service(s) can range from a tangible good added to the original product to the addition of a service contract or warranty to adding a new feature that improves the current service you offer. The key is the market's perception that value has been added, that the added product(s) or service(s) enhances your program and sets you apart from the competition. From past experience in selling a functional assessment to physical and occupational therapists throughout the United States and Canada, I have seen the value-added approach create a win-win situation for both buyer and seller. Three areas of support deserve particular emphasis: technical assistance, consultation expertise, and marketing support. Each represents a value-added service applicable to both service- and product-oriented businesses. It follows that once the decision is made to implement the value-added philosophy, the next step is to determine which services to target. The following checklist is a beginning: WORK 1993; 3(2):19-21 Copyright © 1993 by Andover Medical
20
WORK / SPRING 1993
For Your Products
For Your Services
Professional sales force Field service Online order entry Special packaging Distribution system Return policy Inventory management Research and development Warranties
Assigned personnel Back-up systems Priority handling Resource centers Consultation expertise Cost management Utilization summaries Data processing systems Quality assurance
Certainly, the key is to select services that the customer will find attractive and that will add value. It can even be said that the value-added approach sells solutions to a customer's problems or potential problems, thereby making your product the preferred choice in the marketplace (Shea, 1989). It should be emphasized that the value-added philosophy is appropriate not only for large-scale commercial marketing of goods and services; it can be an equally effective approach to incorporate on a local level. For example, when a PT-OT outpatient clinic is promoting its programs and services, the key is to select services its customers will find attractive, in other words, services aimed at customer satisfaction. Ask your customers about any problems they are experiencing, be flexible and creative, and help them problemsolve. You will find that your clinic can become the preferred choice when this approach is used. A final note on the value-added strategy: an ongoing audit process must be in place to evaluate customer satisfaction and the overall effectiveness of your program. The customer should be a part of this process as well as involved in the planning of future offerings.
TECHNICAL ASSISTANCE In this age of computers, providing technical assistance is a must! Computer technical assistance should be available from installation to implementation, to problem-solve the simple to the complex. It is essential that computer personnel be
available to "walk the buyer through" a newly purchased software program. We are seeing increasing numbers of nontraditional computer personnel responsible for day-to-day computer data entry who lack the computer expertise needed to back them up. Without technical assistance, the most sophisticated software program is no more effective than a poorly designed program. This same philosophy of providing technical assistance to product users could be implemented by a variety of companies involved in the sale of high-tech, specialized equipment. Unfortunately, consumers may discover after purchase that a particular company invests very little in customer satisfaction beyond the initial sale. The value-added approach can do much to separate the preferred from the mediocre, regardless of the business.
EXPERIENCED CONSULTATION Whether a company is service or product oriented, workers are becoming increasingly specialized. The rationale, of course, is that the more sophisticated the machine or process, the more specialized and individualized the training that is required. The result is that no one person can do it all. This is an obvious statement, perhaps, but one that has tremendous implications in the sales arena today. Successful companies have found that the customer can rely on them to be a resource that provides information and expertise in a variety of areas relative to the main product. As an example, consider the company that sells a functional assessment. After the sale, the customer would benefit from assistance in areas such as workers' compensation, reimbursement, performing and documenting assessments, ergonomics, court proceedings, work conditioning and work hardening, marketing, regulations such as the Americans with Disabilities Act, etc. The company that serves as an informational resource and can provide expertise in a variety of areas pertinent to the buyer after the sale will be ahead of the competition; this is a second value-added service to consider.
The Value-Added Approach to Marketing
MARKETING SUPPORT The last support strategy in the value-added approach is the implementation of marketing support for your customers. As in most markets, your customers' success depends on their ability to sell their customers on your product. To illustrate this, we go back to the example of the therapy practice which has purchased your functional assessment for its clinic. Its success with the assessment depends on its ability to sell your assessment to its customers (physicians, employers, insurers, rehabilitation specialists, etc.). Marketing support can facilitate the selling or marketing process and head your customers in the right direction toward a successful program. The following are marketing support strategies that may work for you. National marketing for your customers to their customers. Make marketing on your customers' behalf a focus area for your company and create a win-win situation for both you and your customers. Promotional materials for customer use. Provide a variety of promotional materials such as brochures, prepared advertisements, media kits, etc., for immediate use by your customers. These
21
materials could even be personalized with the customer's name or company logo to increase recognition in its immediate referral area. Readily available promotional materials will assure that promoting the new product or service is a simple and painless process for the customer. Informational news brief or newsletter. News briefs or newsletters should be designed with your customers in mind; that is, these materials should meet their need for information. Remember, the customer will most often come to you first with questions. A newsletter enables you to be an informational resource and reach all your customers in one step. Since marketing is critical to any successful program, many product- and service-oriented businesses could provide marketing support as a value-added service. Again, the key is meeting the customer's needs. In a competitive environment, this is one area no business can afford to overlook. In summary, today's consumer is a savvy shopper. Products and services in the market must stand up, not only to the competition, but to customer scrutiny. The value-added marketing strategy has been shown to be directly related to customer satisfaction and a successful program. Create a win-win situation for your customers and your program with value-added marketing.
REFERENCES Cooper, P. D. (1979). Health care marketing. Germantown, MD: Aspen Systems Corporation. Matthews, C. B. (1988). Strategies That Work. ASHA, 30,22-25.
Shea, T. (1989, August). Marketinghow-to's. Seminar presented at FCA Network Business Meeting. Minneapolis, MN.
Although most people consider marketing essential to successful business practice, some mistakenly equate it with selling and few fully understand it. Consider the vast array of seemingly similar products and services available in the health care marketplace today. One has only to walk through the exhibit hall at a physical or occupational therapy conference or page through the latest rehab journal to be caught up in the competitive environment. So how can you position your company, product, or service to stand out from the competition? The key to success lies in the support you are willing to provide your customers. This article will highlight the concept of value-added support services to enhance the worth of your product to the customer and put you a step ahead of the competition. In Health Care Marketing, Cooper (1979) refers to marketing as "the set of human activities directed at satisfying needs and wants through exchange processes." Two things become apparent: first, marketing must be a dynamic, ongoing activity that assumes that the consumer's or buyer's wants and needs are in a state of change; second, exchange in marketing requires that both parties benefit from the transaction. Simply put, marketing is satisfying the customer's needs. In fact, the aim of marketing is to know the customer so well that the product or service "fits" and sells itself! In educating and informing the customer about your product or service, emphasize your competitive advantage. Matthews (1988) suggests letting your target markets know that you are special and you
have what they want. In other words, use the value-added approach. The value-added concept in marketing allows you to enhance the value customers see in your product and compete on a level that goes beyond price. Product and service quality, delivery, and reputation are just a few factors that increase the market's perception of the value you deliver. The idea is to differentiate your product to serve the special needs of your customers, offering customtailored services to best meet individual needs. The customer will come to see the values you offer as commanding advantages in the marketplace and choose your product over the competition. Herein lies the concept of value-added services - offerings that enhance the worth of your product in the eyes of your customer. The actual item(s) or service(s) can range from a tangible good added to the original product to the addition of a service contract or warranty to adding a new feature that improves the current service you offer. The key is the market's perception that value has been added, that the added product(s) or service(s) enhances your program and sets you apart from the competition. From past experience in selling a functional assessment to physical and occupational therapists throughout the United States and Canada, I have seen the value-added approach create a win-win situation for both buyer and seller. Three areas of support deserve particular emphasis: technical assistance, consultation expertise, and marketing support. Each represents a value-added service applicable to both service- and product-oriented businesses. It follows that once the decision is made to implement the value-added philosophy, the next step is to determine which services to target. The following checklist is a beginning: WORK 1993; 3(2):19-21 Copyright © 1993 by Andover Medical
20
WORK / SPRING 1993
For Your Products
For Your Services
Professional sales force Field service Online order entry Special packaging Distribution system Return policy Inventory management Research and development Warranties
Assigned personnel Back-up systems Priority handling Resource centers Consultation expertise Cost management Utilization summaries Data processing systems Quality assurance
Certainly, the key is to select services that the customer will find attractive and that will add value. It can even be said that the value-added approach sells solutions to a customer's problems or potential problems, thereby making your product the preferred choice in the marketplace (Shea, 1989). It should be emphasized that the value-added philosophy is appropriate not only for large-scale commercial marketing of goods and services; it can be an equally effective approach to incorporate on a local level. For example, when a PT-OT outpatient clinic is promoting its programs and services, the key is to select services its customers will find attractive, in other words, services aimed at customer satisfaction. Ask your customers about any problems they are experiencing, be flexible and creative, and help them problemsolve. You will find that your clinic can become the preferred choice when this approach is used. A final note on the value-added strategy: an ongoing audit process must be in place to evaluate customer satisfaction and the overall effectiveness of your program. The customer should be a part of this process as well as involved in the planning of future offerings.
TECHNICAL ASSISTANCE In this age of computers, providing technical assistance is a must! Computer technical assistance should be available from installation to implementation, to problem-solve the simple to the complex. It is essential that computer personnel be
available to "walk the buyer through" a newly purchased software program. We are seeing increasing numbers of nontraditional computer personnel responsible for day-to-day computer data entry who lack the computer expertise needed to back them up. Without technical assistance, the most sophisticated software program is no more effective than a poorly designed program. This same philosophy of providing technical assistance to product users could be implemented by a variety of companies involved in the sale of high-tech, specialized equipment. Unfortunately, consumers may discover after purchase that a particular company invests very little in customer satisfaction beyond the initial sale. The value-added approach can do much to separate the preferred from the mediocre, regardless of the business.
EXPERIENCED CONSULTATION Whether a company is service or product oriented, workers are becoming increasingly specialized. The rationale, of course, is that the more sophisticated the machine or process, the more specialized and individualized the training that is required. The result is that no one person can do it all. This is an obvious statement, perhaps, but one that has tremendous implications in the sales arena today. Successful companies have found that the customer can rely on them to be a resource that provides information and expertise in a variety of areas relative to the main product. As an example, consider the company that sells a functional assessment. After the sale, the customer would benefit from assistance in areas such as workers' compensation, reimbursement, performing and documenting assessments, ergonomics, court proceedings, work conditioning and work hardening, marketing, regulations such as the Americans with Disabilities Act, etc. The company that serves as an informational resource and can provide expertise in a variety of areas pertinent to the buyer after the sale will be ahead of the competition; this is a second value-added service to consider.
The Value-Added Approach to Marketing
MARKETING SUPPORT The last support strategy in the value-added approach is the implementation of marketing support for your customers. As in most markets, your customers' success depends on their ability to sell their customers on your product. To illustrate this, we go back to the example of the therapy practice which has purchased your functional assessment for its clinic. Its success with the assessment depends on its ability to sell your assessment to its customers (physicians, employers, insurers, rehabilitation specialists, etc.). Marketing support can facilitate the selling or marketing process and head your customers in the right direction toward a successful program. The following are marketing support strategies that may work for you. National marketing for your customers to their customers. Make marketing on your customers' behalf a focus area for your company and create a win-win situation for both you and your customers. Promotional materials for customer use. Provide a variety of promotional materials such as brochures, prepared advertisements, media kits, etc., for immediate use by your customers. These
21
materials could even be personalized with the customer's name or company logo to increase recognition in its immediate referral area. Readily available promotional materials will assure that promoting the new product or service is a simple and painless process for the customer. Informational news brief or newsletter. News briefs or newsletters should be designed with your customers in mind; that is, these materials should meet their need for information. Remember, the customer will most often come to you first with questions. A newsletter enables you to be an informational resource and reach all your customers in one step. Since marketing is critical to any successful program, many product- and service-oriented businesses could provide marketing support as a value-added service. Again, the key is meeting the customer's needs. In a competitive environment, this is one area no business can afford to overlook. In summary, today's consumer is a savvy shopper. Products and services in the market must stand up, not only to the competition, but to customer scrutiny. The value-added marketing strategy has been shown to be directly related to customer satisfaction and a successful program. Create a win-win situation for your customers and your program with value-added marketing.
REFERENCES Cooper, P. D. (1979). Health care marketing. Germantown, MD: Aspen Systems Corporation. Matthews, C. B. (1988). Strategies That Work. ASHA, 30,22-25.
Shea, T. (1989, August). Marketinghow-to's. Seminar presented at FCA Network Business Meeting. Minneapolis, MN.
