Ask The Expert: Is It Really a Good Idea to Market During a Recession?
Question: I'm concerned about spending money I don't have to during this recession. Is it really a good idea to market right now? Some of my colleagues are just sitting tight until the economy improves--couldn't I do that, too?
Answer: Have you ever heard the statement “He who hesitates is lost”? It is quite appropriate for the question you are asking.
Even in these tough economic times, it is well understood that consistent marketing done all the time and done the right way can drive new patients to a medical practice. Studies conducted by both Practice Builders and Penn State University have shown:
Answer: Have you ever heard the statement “He who hesitates is lost”? It is quite appropriate for the question you are asking.
Even in these tough economic times, it is well understood that consistent marketing done all the time and done the right way can drive new patients to a medical practice. Studies conducted by both Practice Builders and Penn State University have shown:
- 56% of medical practices are increasing marketing to protect business during the recession
1 - Businesses that maintain or even increase their marketing efforts during a recession are rewarded with significantly more business when the economy improves compared to their cohorts. There is also a corresponding increase in market share2
Even the auto companies continue to advertise, because it’s part of responding to the competition and part of driving demand.
The key question is: How much should you spend? It is a proven business practice to have a set percentage of your gross income dedicated to marketing all the time. Most healthcare practices should spend between 7 to 15% of their gross income, depending on the type.
Practices should maintain this spending, at all times, as part of a successful strategic business plan to ether maintain or build market share.
Remember, the patients are still out there--even if there may be fewer of them. And you are now fighting your competitors for your share of that smaller target market.
So the practice that markets has the greatest chance of attracting those patients and at the same time positioning their practice so they are maximally rewarded when the economic turn-around does happen.
FOOTNOTES:
2. Penn State’s College of Business and McGraw-Hill Research
Marketing expert Jonathan Vidal, Senior Director, Consulting Services, for Practice Builders, answered this question. Mr. Vidal is a former senior director of marketing for Endocare, Inc., a medical device company, and a former director of marketing for Circon-ACMI, the largest producer of medical endoscopes.
The key question is: How much should you spend? It is a proven business practice to have a set percentage of your gross income dedicated to marketing all the time. Most healthcare practices should spend between 7 to 15% of their gross income, depending on the type.
Practices should maintain this spending, at all times, as part of a successful strategic business plan to ether maintain or build market share.
Remember, the patients are still out there--even if there may be fewer of them. And you are now fighting your competitors for your share of that smaller target market.
So the practice that markets has the greatest chance of attracting those patients and at the same time positioning their practice so they are maximally rewarded when the economic turn-around does happen.
FOOTNOTES:
2. Penn State’s College of Business and McGraw-Hill Research
Marketing expert Jonathan Vidal, Senior Director, Consulting Services, for Practice Builders, answered this question. Mr. Vidal is a former senior director of marketing for Endocare, Inc., a medical device company, and a former director of marketing for Circon-ACMI, the largest producer of medical endoscopes.