How does an inferior product succeed in the marketplace while a superior product falters or fails? Why are consumers willing to spend 50% more for a product that is essentially the same as its competitor or buy services that are inferior to others? The answer lies in the power of branding and marketing. Marketing and branding affect every industry, including healthcare and medicine. The concept of branding and marketing applies to any healthcare practitioner, doctor or dentist trying to market their practice to patients and prospect-patients. An easy way to understand the true power of branding and marketing is to look at another industry you are familiar with – consumer electronics.
Inferior product wins through superior marketing.
In the 1980’s, there was a battle between VHS and Beta videotapes. Though most video experts claimed that Beta (Sony Corp.) was the superior format (with the added advantage of having more compact, space-saving tapes), VHS captured the lion’s share of sales and a sizable lead in market share. VHS won the battle for consumer dollars. Ultimately, Beta format, which held the advantage in the professional videography market, disappeared completely from the consumer market. Marketing helped VHS, an inferior product, win out over its superior rival?
The point is that less qualified healthcare practitioners, doctors and dentists can beat more qualified practitioners by doing a better job of marketing. Quality does not automatically guarantee results. Proper marketing and branding for a healthcare practice creates a perception for patients and we all know that perception is reality.
Higher-priced product knocks off low-priced rivals with marketing.
Two more recent examples are Apple’s iPod and iPhone. Both products have numerous competitors. Both cost substantially more than most of their competition, yet both sell more, too.
iPods cost, on average, 50% more than other hand-held MP3 players. Yet, iPod is, far and away, the most dominant player in the hand-held MP3 sector, with a whopping 76% market share. The next closest competitor is Sony, with an 8% market share. So why are consumers willing to cough up 50% more for essentially the same product? Apple’s brilliantly hip marketing machine has created a perception of quality and lifestyle enhancement that’s hard for consumers to resist. In 2008, iPhone sales rose 245% worldwide, despite its much higher cost than competitor smart phones from Nokia (at the time the world’s current #1 cell phone brand) and RIM Technologies (at the time maker of #2 Blackberry).
The point is that marketing can make a huge difference in the success of any organization, regardless of pricing or quality. As a healthcare practitioner, you likely have many competitors within your specialty or subspecialty. What are you doing to grab market share (expressed in terms of new patients, referral sources and revenues) from them? If you do nothing, you will lose in the end. If, on the other hand, you market your practice smartly and strategically, you can still grow your and enjoy long-term success regardless of pricing or similarities to competitors. Attend a Practice Builders Workshop (link to https://www.practicebuilders.com/practice-workshop-schedule/ )to learn more about marketing and branding your healthcare practice.