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    The real NHS:

    the benefits of amarketing approach

    Spring 2008

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    [ i ]The real NHS: the benefits of a marketing approach

    Marketing has often been viewed as anathema to the ethos of

    the NHS, but as the organisation inches towards becoming a

    patient-led service, marketing has a crucial role to play in

    making this happen.

    With Payment by Results, patient choice and the creation of an

    internal market, the patient is increasingly at the heart of the

    NHS's operations; empowered by choice and with options overwhere they receive their treatment. Yet, within the NHS, it is rare

    to find organisations that have fully recognised and embraced

    these changes, structuring their activities around patient needs

    and improved services. And for many staff within the NHS, the

    transition to a competitive environment is a disconcerting and

    uneasy experience.

    Ironically, marketing has an image problem in the NHS, with

    many staff failing to understand what marketing is and what it

    can deliver for the NHS. Often perceived as just 'spin' or

    advertising, marketing can actually play a far more strategic role

    within the NHS and help deliver real benefits for both patients

    and staff.

    By focusing on patient needs, marketing can help change the

    orientation of the NHS away from a process or operations

    approach, to one that places patients at the centre of its

    activities and delivers appropriate and improved care and

    services for patients something I'm sure all staff within theNHS want to see. Staff buy-in is crucial to achieving this

    change, and again marketing has a significant role to play in

    communicating these changes and the benefits a patient focus

    will bring.

    The Chartered Institute of Marketing consulted with professional

    marketers from across the NHS to produce this Paper, which

    explores the issues involved in adopting a responsible marketing

    approach within the NHS, and what marketing can deliver forthe NHS, its 'customers', and its many stakeholders.

    David ThorpDirector,

    Research and

    Information,

    The Chartered

    Institute of Marketing

    Foreword

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    ContentsThe real NHS:

    the benefits of a marketing approach

    3 Introduction

    7 Exploring the issues

    13 Why is marketing good for the NHS?

    23 Conclusion

    27 Sources

    27 NHS advisory group

    28 Courses

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    For the NHS to

    become patient-ledit must first becomemarketing-led

    [ 2 ] The Chartered Institute of Marketing

    For the NHS to

    become patient-ledit must first becomemarketing-led

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    [ 3 ]The real NHS: the benefits of a marketing approach

    Introduction

    In November 2006 the National

    Health Service's new marketing

    code was issued. This was the

    first explicit sign that the NHS

    really was breaking entirely new

    ground in engaging with the

    practices of the marketplace,

    and that the long-proposed ideal

    of a patient-led service was

    underway.

    Central to the patient-led

    approach is the need to remain

    true to the founding values ofthe Health Service. The future of

    the NHS is therefore one of

    customer-managed relationships

    a world where the service user

    is the person making the key

    choices about what is

    appropriate for them.

    This is a significant change in

    orientation for the organisation,

    and one that requires four major

    steps to be taken if it is to

    become a reality.

    The NHS must ensure that it

    listens to its customers and

    provides its services where

    they are needed and when

    they are needed (where this

    does not conflict with clinical

    judgement). A process

    should be put into place to

    capture and exploit customer

    insights.

    True choice only comes with

    knowledge of all the

    possibilities and their

    alternatives. Customers of

    the National Health Service

    need a constant and

    meaningful supply of

    accessible information;

    providing this information to

    each and every customer is

    therefore essential for a

    patient-led service.

    Neither of the first two steps

    will lead anywhere unless

    NHS employees are helped

    to understand what a

    patient-led service will mean

    in practice and what their

    part will be in its delivery.

    New customer-focused skills

    1. Introduction

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    and competencies need to

    be developed and

    embedded.

    The development of a

    commercial orientation will be

    an essential element of

    creating a successful Health

    Service for the future. It is

    therefore vital that health

    trusts begin to recruit staff

    with appropriate commercialskills who will deliver the

    vision and begin to develop

    the next generation of health

    service commercial

    specialists.

    Implicit in the vision of becoming

    a patient-led service isrecognition of the fact that the

    initial challenges that must be

    overcome are marketing

    challenges. For the NHS to

    become patient-led it must first

    become marketing-led.

    The benefits of marketing aremany for the National Health

    Service. Marketing is not about

    a few advertisements in the local

    or regional press: it is about

    understanding markets and

    identifying where value can be

    added. Marketing is about

    communication, both with those

    within the organisation and

    those outside. Perhaps most

    importantly of all, it is aboutmeasuring the effectiveness of

    the value delivered. Marketing

    can help the NHS to re-establish

    contact with its founding values.

    Used effectively, marketing will

    reduce costs by enablinghealthcare providers to segment

    their customers, breaking them

    down into smaller groups with

    more clearly identifiable needs,

    in order to allocate spend where

    it is needed whilst cutting out

    unnecessary expense. It will give

    patients a role to play in thedevelopment of the services

    aimed at them. The patient with

    choice is an economically

    important player who will not be

    slow to point out what he or she

    expects of the service provider

    and it is the role of the marketer

    the benefits of a marketing approach

    [ 4 ] The Chartered Institute of Marketing

    The future of the

    NHS is one ofcustomer managed

    relationships

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    Introduction

    [ 5 ]

    to listen. As a result, the age of

    the passive patient is nearly at

    an end.

    Contrary to widely-held opinion,

    marketing in the NHS is not

    simply about advertising or

    selling the service: it is about

    developing that service in the

    first place, then, by absorbing

    constant feedback from the

    marketplace, continuing toensure the service is fit for

    purpose and is actually what

    patients want.

    This new world is coming about

    because of a clear and coherent

    government policy, articulated in

    the NHS Improvement Plan of

    June 2004i. This is not a case of

    grasping marketers forcing

    themselves onto unwilling trusts.

    Rather, it is a case of

    professional managers

    accepting the realities of what

    this policy shift would bring the creation of a far more

    competitive operating

    environment than they have ever

    known and then sourcing the

    skills they will need to maintain

    or improve their competitive

    position in this changed

    scenario.

    When patients come to

    understand what a marketing-

    led approach actually means for

    them, they may come to see it

    not only as the time when

    patients found their true voice,but, more pertinently, the time

    when they discovered someone

    within the NHS was actually

    listening to them.

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    2. Exploring the issues

    [ 7 ]

    Baroness Cumberlege,

    Parliamentary Under-Secretary

    of State at the Department of

    Health, stated as long ago as

    1993:

    "We are marketing three things

    in the health business change,

    health and services."

    (Quoted by Owens and McGillii)

    Owens and McGill went on to

    explore why it is that successful

    organisations concentrate on

    serving the needs of customersin a chapter entitled Putting

    Patients First, which was not

    very far removed from the

    current initiative for a patient-led

    NHS. Six rules of marketing

    within the NHS, developed by

    Brian Edwards, at that time the

    General Manager of Trent

    Regional Health Authority, were

    proposed:

    1. Make it easy for GPs to

    access your services whether

    they are fundholders or not.

    2. Set standards or make

    service promises and be

    certain you can deliver them.

    3. Go hunting for people with

    complaints and reward staff

    who uncover them.A satisfied complainant

    becomes your strongest

    advocate and best long-term

    customer.

    4. Talk about your successes.

    Show your pride. It does

    wonders for staff morale.5. Invest in your staff because

    that is the way to win. Your

    staff can undermine any

    corporate image you may

    generate in a flash.

    6. Keep checking your

    customer's perspective. Theneeds of patients change as

    does their image of us.

    The wisdom of these rules

    would seem self-evident and

    non-contentious to seasoned

    marketers. Yet there is clear

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    resistance to the very idea that

    the NHS offers a suitable

    environment for marketing

    practice, as evidenced byGeneral Practitioner Margaret

    McCartney in the Financial

    Times article More medicine,

    less marketingiii

    "Successful marketing sustains,

    broadens or deepens its

    markets. Good medical caredoes not do this. Good medical

    care instead works by

    talking, listening, examining,

    diagnosing, assessing risks and

    benefits, and making decisions

    on doing something or nothing

    or planning a laterreassessment."

    To which the successful

    marketer might well respond

    "And what's so wrong with

    that?" They might even claim

    that "talking, listening,

    examining, diagnosing andassessing risks and benefits", far

    from being the exclusive

    preserve of the medic, are

    central parts of the marketing

    planning process too.

    Clearly there is either a

    fundamental misunderstanding,

    or a lack of appreciation,

    amongst some of the elements

    of the health services community

    of what marketing is and what

    it's there to do. There are manybroadly similar definitions of

    'marketing', but in a health

    service context the definition set

    out below has much to

    commend it:

    A management process for

    understanding markets, forquantifying the value required by

    the different customer groups in

    these markets, for

    communicating this to everyone

    in the organisation and for

    measuring the effectiveness of

    the actual value delivered.

    the benefits of a marketing approach

    [ 8 ] The Chartered Institute of Marketing

    Are the disciplines

    of marketing and

    medicine really so

    polarised that

    well executed

    and effectively

    delivered marketingcannot deliver

    value to the

    Health Service?

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    [ 9 ]

    Are the two disciplines of

    marketing and medicine really so

    polarised that marketing, well

    executed and effectivelydelivered, cannot deliver value to

    the Health Service marketplace?

    In the commercial world markets

    need to be sustained, and the

    very existence of market forces

    reveals often unpalatable truths

    and allows them to be

    confronted in a way that avoids

    stagnation and encourages the

    adoption of innovative

    approaches to problems. Why

    should this be an anathema to

    the National Health Service?

    In order to understand theissues more clearly The

    Chartered Institute of Marketing

    held a round table forum at its

    Moor Hall headquarters, inviting

    along senior marketing,

    communications and

    commercial managers from a

    variety of NHS trusts.

    The key areas for exploration

    were:

    How marketing cultures

    come into existence.

    Building and cultivating

    awareness of marketing.

    The division between social

    and commercial marketing.

    The need for policy-driven

    guidance informed by a clearpolitical agenda.

    How marketing success

    might be measured in the

    Health Service context.

    The session began with an

    exploration of what would

    appear to be the centralproblem for marketers within the

    NHS context, the extent to

    which 'marketing' is accepted

    and the perception amongst

    employees of marketing's role.

    Margaret McCartney is certainly

    not alone in fundamentallymisunderstanding the role of

    marketing and the benefits it can

    deliver. She speaks of "glib,

    meaningless statements" and

    paints a picture of an

    organisation "shattered into

    pieces and forced to waste its

    resources to compete withitself"iv. The Unions too are not

    slow to join in: "The very idea

    that hospitals should spend

    taxpayers' money on advertising

    for patients instead of treating

    patients is ridiculous" states

    Karen Jennings, Head of Health

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    at the public services union

    Unison, again seemingly

    betraying a lack of

    understanding of whatmarketing is actually aboutv.

    Are these the views of neo-

    Luddites who need to be shown

    the light, or are they vital

    stakeholders who need to be

    embraced? However the views

    are seen, they represent a broadspectrum of the organisation's

    employees and clearly represent

    a challenge for marketers within

    the National Health Service.

    Perhaps the critics of marketing

    should consider the language

    that is already being used to putacross the challenges facing the

    Health Service. Have they

    thought for a moment about

    precisely what a 'patient-led'

    service entails, about what will

    be involved in putting patients at

    the core of service delivery as

    active participants with viewsand needs of their own, rather

    than as passive patients,

    accepting what is given to

    them? If the 18-week patient

    journey were so simple, why has

    it never been achieved within

    previous structures and

    processes?

    The problem, perhaps, is that

    there is no clear comprehension

    by many NHS staff as to what is

    involved from a marketing pointof view, and it is easy to

    understand why this might be

    the case. Very few staff

    members have encountered

    marketing before, other than as

    passive recipients of consumer

    marketing campaigns. Marketing

    has built up its own formidable

    vocabulary over the years, and

    many terms are either unfamiliar

    (segmentation, service-dominant

    logic etc), are misunderstood or

    carry negative connotations (PR,

    advertising etc).

    It seems that the lessons of the

    early 1990s, when the first

    [ 10 ] The Chartered Institute of Marketing

    the benefits of a marketing approach

    Marketing has built

    up its ownformidable

    vocabulary over the

    years, and many

    terms are either

    unfamiliar,

    misunderstood or

    carry negative

    connotations

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    [ 11 ]

    tentative marketing approaches

    were being outlined as first-wave

    trusts were being rolled out,

    have been ignored. Back then,after a period of time, there was

    gradual acceptance of what

    marketing could deliver,

    alongside an active dislike of

    what was perceived as

    marketing jargon. It may very

    well be the case that if a

    marketing orientation is to be

    created in the current situation

    we need to investigate the

    creation of a new marketing

    lexicon, drawing on the

    experiences and expectations of

    staff within the health services.

    Above all we need to use thislexicon to demonstrate to all

    stakeholder groups within the

    NHS why marketing is needed.

    Marketing in the National Health

    Service should focus on two key

    factors:

    Firstly, internal marketing is

    needed to show clinicians and

    managers the benefits of the

    patient-led approach, and to

    create a more joined-up

    organisation where clinicians

    and managers work towards a

    common end purpose, rather

    than the current situation wheremanagers and clinicians often

    have conflicting agendas. Re-

    engineering service processes in

    this way could have a huge

    positive impact on the success

    of the NHS, but previous lack of

    marketing experience amongst

    Health Service professionals has

    made this an unattainable goal.

    Secondly, marketing strategies

    can be used to improve quality

    from the perspective of both the

    patient and the clinician. By

    implementing commercialtechniques, such as pricing,

    market research and

    segmentation, hospitals,

    clinicians and GPs can tailor

    their products and services to

    offer the right solution in the

    right place at the right time.

    Marketing is also essential tocreate the kind of push/pull

    strategies that will send out

    messages to GPs and attract

    patients towards the trusts.

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    A more commercial

    approach is not aboutbeing divisivelycompetitive...

    [ 12 ] The Chartered Institute of Marketing

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    3. Why is marketinggood for the NHS?

    [ 13 ]

    Few would argue that the NHS

    is in need of greater strategic

    direction, but there is little

    consensus as to how to

    implement that strategic

    direction successfully. Pumping

    in increasing amounts of money

    does not in itself solve the

    problem, and neither does a

    politically-led emphasis on

    targets because that can lead tomassaging of figures and draws

    both clinicians and managers

    away from their focus on patient

    needs.

    Firstly, a marketing-led approach

    can offer a strategy on where

    the National Health Service is,

    and where it needs to get to.

    The marketing-led approach

    adopted in England, where a

    competitive marketplace has

    been created, has led to

    dramatic falls in waiting times

    and the '18-week' target is

    increasingly being met. Whilst

    arguments for and against this

    policy are complex, it is an

    indication that principles from

    the private sector can be

    employed to bring about positive

    change in an organisation that is

    often perceived as stagnating.

    A more commercial approach is

    not about being 'divisivelycompetitive', as those who

    misunderstand the nature of

    marketing label it. Instead, it is

    about adopting a more

    commercial approach to the

    budgets that do exist, to extract

    maximum value from them. The

    NHS does not tend, for

    example, to consider pricing

    strategies from a marketing

    perspective instead, price is

    set by cost.

    By changing this, for example by

    offering the same services at

    different prices at different times,

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    resources can be managed

    more effectively to create more

    value from them. For instance,

    where theatres are rented toprivate practitioners the cost

    could be lower at times when

    demand is lower, or patients

    could be offered faster treatment

    if they are prepared to receive it

    at unsociable times. Price, in

    other words, is not a purely

    financial concept; it can be

    applied to any issue of

    exchange. It is therefore a valid

    idea to examine in the public

    sector, where many services to

    patients are not financially

    'charged for' and the service is

    'free' at the point of contact.

    Drivers for marketing

    The main drivers to stimulate the

    NHS to see the need for

    marketing are Payment by

    Results (PbR), 'patient choice'

    and competition. With primary

    care the drivers for marketing

    will be public health targets the

    benefits of using social

    marketing techniques; for

    example, changes incommissioning, the potential

    need to promote Independent

    Sector Treatment Centres

    (ISTCs) and the general desire to

    meet patient needs or be

    referred to the local County

    Council Health Scrutiny

    Commission.

    The value of communication

    The greatest value of marketing

    for the NHS is that it creates a

    framework for effective

    communication. By collecting

    information on patients' wants

    and needs, trusts can more

    effectively offer the services and

    products that are required, and

    tailor them to individual patients.

    With the average customer

    exposed to hundreds of

    [ 14 ] The Chartered Institute of Marketing

    the benefits of a marketing approach

    By offering the

    right services

    and products,

    at the right time,

    at the right price,

    NHS trusts can use

    competitive

    knowledge andmarketing

    communications to

    attract patients

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    [ 15 ]

    branded messages every day,

    the benefit of a marketing

    approach is that

    communications to allstakeholders (patients, referring

    GPs, the media, relatives, the

    government and non-

    governmental organisations),

    become clearer, more consistent

    and more readily available. That

    communication generates more

    positive and coherent feedback,

    which can be used to continue

    the development of the right

    products and services, and

    make them available at the right

    place and time.

    Thanks to the internet, patients

    increasingly have access to

    channels other than their GP to

    find out information on their

    condition and the treatment

    options. This means that

    patients come armed with more

    knowledge about developments

    in clinical practice. According to

    the paper Marketing in the new

    NHS by Netcare, patients"expect to participate actively in

    their programme of care, and

    not be treated as passive

    recipients"vi. This demand for

    information is why organisations

    such as charities commit to

    marketing spend, and why it is

    now important for the NHS to

    do so too.

    Patient choice

    The fact that, in England,

    customers have a certain level of

    choice about where they want to

    be treated makes the use of

    marketing techniques inevitable.

    By offering the right services and

    products, at the right time, at

    the right 'price', NHS trusts can

    use competitive knowledge and

    marketing communications to

    attract patients. Without thiselement of commercial thinking,

    trusts will find patient numbers

    declining and this will have

    financial consequences. Whilst

    there are many arguments in

    favour and against patient

    choice (the principal flaw being

    that there is a difference

    The real NHS: the benefits of a marketing approach

    Why is marketing good for the NHS?

    Patients expect toparticipate actively in

    their programme of

    care, and not be

    treated as passive

    recipients

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    between informed consent and

    a patient making a choice that

    conflicts with clinical judgement),

    the NHS is in need of change and having a market helps drive

    that change.

    Any such changes do, however,

    need to be considered againstthe fact that increased choice

    does not necessarily mean a

    better service for example the

    benefits of having a centralised

    centre of excellence in some

    specialist fields far outweigh the

    benefits of offering increased

    patient choice by fragmentingservices.

    ISTCs attracted much local

    opposition when they were

    introduced, and the government

    needs to look at whether they

    are an effective framework for

    market principles to be

    introduced into the NHS.

    Primary Care Trusts (PCTs) have

    to pay for the ISTCs regardless

    of whether any patients chooseto be treated there.

    PR explaining rationales,

    not selling spin

    With an organisation as large as

    the NHS, and one that is so

    squarely in the public eye, allmanagers (and to a certain

    extent clinicians) need to take

    personal responsibility for how

    the Health Service is perceived

    in the wider world.

    One problem with changing the

    Service positively is that making

    changes unilaterally proves to be

    almost impossible logistically;

    but when regions or trusts are

    given the power to make

    changes to benefit patients, the

    media quickly pick up on

    discrepancies between regionsthat are then presented as

    'postcode lotteries' or unfair

    discriminations.

    We have seen this recently in the

    media attention on four devolved

    administrations 'pursuing their

    own agendas' and offering

    [ 16 ] The Chartered Institute of Marketing

    the benefits of a marketing approach

    The media quickly

    pick up on

    discrepancies

    between regions

    that are thenpresented as

    postcode lotteries

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    [ 17 ]

    different services, which are then

    perceived to be unfair if patients

    live in a region that doesn't

    favour their needs. For example,in England the NHS market has

    resulted in significant falls in

    waiting list times, whereas in

    Scotland doctors have more

    input into decision making with

    more limited input from the

    private sector. In Wales the

    Welsh Assembly has been very

    successful in innovative

    approaches, such as abolishing

    prescription charges, but less

    successful in reducing waiting

    times.

    Recruiting managers withcommunications experience,

    and giving existing managers

    training in communications, will

    contribute to resolving such

    scenarios. Such managers can

    communicate why decisions

    have been made in certain ways

    and explain the rationale behindtheir decision making, whilst also

    demonstrating that change

    inevitably leads to teething

    problems. They must

    communicate the broader

    picture and show the long-term

    benefits.

    Planning and budgeting

    The NHS financial year-end is in

    March, but budgets for the

    following year are not finalised

    until the year-end itself. In

    Foundation Trusts these budgets

    are sometimes not finalised until

    May. This results in planning

    problems where trusts do not

    know what their budgets will be

    until the financial year isunderway. A commercially-run

    organisation needs to have its

    budgets finalised in advance of

    this typically, next year's plan

    would be finalised three months

    before year-end.

    Moving towards a morecommercial approach to

    budgeting would help managers

    allocate resources more

    effectively and reduce the risk of

    deficits. Whilst political changes

    and elections can prevent the

    NHS planning as far ahead as a

    private company would be able

    to do, an improvement in budget

    planning is a realistic goal.

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    [ 19 ]

    Internal marketing

    The other area where a

    marketing-led approach could

    make a key difference to

    improving the Health Service in

    the future is internal marketing.

    There is much dissension

    between clinicians and

    managers about the best way to

    manage the NHS, and there is a

    certain level of mutual distrust.

    Internal marketing to encourage

    clinicians and managers to work

    in the same direction and create

    a more joined-up organisation

    can be achieved by emphasising

    the focus on the patient.

    Currently, it is sometimes thecase that clinicians want to do

    their job and managers want to

    do theirs. By showing both

    groups that they are each a vital

    half needed to meet patients'

    needs, and that one half cannot

    do the job successfully without

    the other, steps could be taken

    to give a more strategic focus to

    the organisation, particularly to

    those clinicians who see

    managers as little more than an

    obstruction to them doing their

    job.

    Part of achieving this will be to

    ensure that the managers who

    are in place have the respect of

    clinicians. This can be achievedin two ways: firstly, by recruiting

    managers who have commercial

    experience; and secondly, by

    giving existing managers

    marketing training.

    The final vital element of internal

    marketing is to ensure thatsenior management both

    support and facilitate the

    implementation of marketing

    techniques. The reaction and

    support of senior management

    within the Health Service is

    essential if the momentumtowards a patient-led future is to

    be generated and maintained.

    One way to make internal

    marketing more successful is to

    create a more motivating

    environment for employees. All

    NHS employees accept that thesalaries they earn are likely to be

    lower than they could expect in

    the private sector; employees

    accept this because they are

    driven by a desire to have a

    fulfilling job that helps society

    and other people. However,

    instead of the existing rigorous

    The real NHS: the benefits of a marketing approach

    Why is marketing good for the NHS?

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    pay structure that rewards long

    service rather than good work,

    two recommendations would be

    to adopt a more commercialapproach where effective and

    efficient work is rewarded with

    bonuses, and to create more

    flexibility for good employees to

    be promoted within the system.

    Such an approach goes without

    saying in the private sector, butthe National Health Service

    currently automatically increases

    pay scales if an employee stays

    for a long period of time,

    regardless of the quality of work

    performed.

    By saving money on not

    automatically awarding pay

    increases, part of the budget will

    be freed up to reward good

    work. This would do several

    things it would motivate staff,

    which leads to better service for,

    and more positive feedbackfrom, patients. It would go some

    way to eroding the long-termist

    culture of the NHS that leads to

    scenarios where some staff are

    change-resistant because they

    have been working in the same

    role for a long time, and believe

    that doing things the way they

    have always been done is the

    best approach. It would also

    alleviate the problem of talented

    and skilled, but frustrated andde-motivated, practitioners or

    managers leaving the NHS for

    the private sector. This results in

    the loss of good staff who

    should have been encouraged

    to stay, whilst less effective

    workers remain because the

    Health Service's profit and loss

    is not accountable to

    shareholders or customers.

    Paying more competitive salariesto prevent talent leaving is not a

    question of asking for more

    money; it is merely a question of

    allocating existing budgets in

    more competitive ways. Whilst

    Agenda for Change has started

    to tackle this issue with its

    [ 20 ] The Chartered Institute of Marketing

    the benefits of a marketing approach

    One way to make

    internal marketingmore successful is to

    create a more

    motivating

    environment for

    employees

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    [ 21 ]

    competency gateways, it has

    not changed the situation to the

    degree we believe could be

    strongly beneficial for the NHS.

    Adopting a more competitive

    approach can therefore be seen

    not as 'divisive' instead, it

    highlights the need to treat

    public money as a precious

    resource that needs to earn its

    keep.

    A business will fail without profit,

    but a sense of urgency of how

    spend is allocated is largely

    missing from the NHS.

    An increased commercial

    awareness would show that

    there is a need to generate

    profit, because that profit can

    then be ploughed back into

    research and development, staff

    productivity rewards, more

    equipment and resources, better

    service and better treatment.

    This then creates a virtuous

    circle of profit, improving the

    service to patients. It has knock-on effects in terms of reducing

    costs for example, in a lower

    number of complaints

    procedures and thereby reduced

    costs of payouts.

    Other parts of the NHS

    Most of the scenarios outlined in

    this paper are, by necessity of

    space, trust-focused and

    elective-care oriented. However,

    the underlying principles of

    patient-led marketing can be

    applied to other parts of the

    NHS, such as emergency

    provision, primary care and

    mental health services, where

    they do not conflict with duty of

    care.

    The real NHS: the benefits of a marketing approach

    Why is marketing good for the NHS?

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    The solutiona patient wants

    is the right treatment,at the right time

    [ 22 ] The Chartered Institute of Marketing

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    4. Conclusion

    [ 23 ]

    It is widely accepted that the

    National Health Service is in

    need of change, but opinions

    differ widely on how to achieve

    that change in an institution so

    vast and complex. Marketing is

    not the solution to all of its

    problems, but it can be a key

    part of the required positive

    change:

    Culturally, to help clinicians

    and managers work more

    effectively towards the samegoal

    Internally, to extract more

    value for the patient from

    existing resources

    Externally, to show patients

    the benefits of the new NHS

    and gain their support by

    showing them that decisions

    are made for their benefit

    There is much confusion about

    what marketing entails in the

    Health Service, and many

    clinicians struggle with what they

    perceive as 'marketing jargon'.

    Part of the task in showing

    clinicians the value of marketing

    is to ensure that terminology and

    concepts are understandable

    and directly relevant to the NHS.

    If marketers are to be accepted

    they need to change commonly

    understood 'marketing' terms to

    commonly understood 'NHS'

    terms.

    Creating a 'marketingdepartment' in health trusts is

    not the only answer, because it

    does not in itself change the

    culture of the organisation or

    generate buy-in from clinicians

    and managers, many of whom

    have little experience or

    understanding of what

    marketing is or does. The

    answer is to bring more

    marketing knowledge to all parts

    of the organisation and to

    communicate the benefits of the

    patient-led approach to

    managers and clinicians.

    The real NHS: the benefits of a marketing approach

    Conclusion

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    It would also be beneficial to

    create a senior marketing post in

    the Department of Health and in

    the NHS itself interestingly,neither role currently exists. It is

    also important for the board, the

    CEO and the non-executive

    directors to be receptive to

    marketing, and this attitude is

    not consistent across the Health

    Service.

    Marketing should be a popular

    concept in the organisation

    because it could move it away

    from financial targets and

    number crunching towards

    serving, and looking after, the

    patient which is why mostpeople join the NHS in the first

    place. A marketing approach

    could help clinicians and

    managers express themselves in

    more effective ways by using

    persuasive arguments when

    dealing with what is sometimes

    perceived as politicalinterference. Marketers are

    'change agents', but that

    process of change can only be

    strategic if it has broad bottom-

    up and top-down support.

    Marketing becomes merely

    tactical and cosmetic without

    that support.

    The focus on patient choice

    creates a market, but the

    bottom line is that most people

    want their local hospitals to begood and to be able to go there

    for treatment. A completely free-

    market approach would lead to

    hospital closures, which is not in

    the interests of the patient.

    A marketing approach can

    balance such conflicting

    scenarios and, by understanding

    the market and gaining opinions

    and information from all

    stakeholders, including patients,

    relatives, clinicians and

    managers, help make the right

    decisions. Allowing market

    forces to work createsefficiencies and improves

    performance, with the caveat

    that any extremes of market

    force (eg closure of a bad

    service) has to be countered by

    a realistic alternative offering for

    the patient. However, no

    decisions should be taken that

    contravene clinical judgement.

    Adopting a marketing-led

    approach could help the NHS

    move towards being an

    organisation that is better able

    to:

    [ 24 ] The Chartered Institute of Marketing

    the benefits of a marketing approach

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    [ 25 ]

    Understand the market by

    gaining more information on

    patients' needs and wants,

    more effective solutions canbe created and tailored.

    Create the service that

    patients want and need

    within the limits of the

    Working Time Directive and

    existing budgets.

    Align managers and cliniciansto work more co-operatively.

    Save costs by drawing more

    value for both patients and

    the organisation from existing

    budgets, allocating spend

    more effectively where it is

    needed.

    Fill spare capacity first, then

    move on to generating new

    income.

    Motivate and reward staff,

    leading to better efficiency

    and effectiveness, with

    knock-on cost savings.

    Communicate the benefits

    more effectively, reducing

    complaints and saving time

    and money.

    Work proactively with the

    media to address

    misunderstandings about

    strategies and decisionmaking, and create a more

    positive relationship with all

    stakeholders.

    Focus on Gordon Brown's

    recent statement that the

    NHS should work more

    towards prevention thancure. A wider adoption of

    social marketing techniques

    can help achieve this.

    Move from a sometimes

    change-resistant culture to

    one that embraces positive

    change. Minimise the inevitable

    conflicts between patient

    desires, clinical judgement

    and availability of resources.

    Further practical suggestions

    Introduce a senior marketingpost into both the NHS and

    the Department of Health.

    Bring budgeting in line with

    the end of the financial year

    across the NHS.

    The real NHS: the benefits of a marketing approach

    Conclusion

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    For marketers, a customer does

    not buy a product or service

    he or she buys a solution. The

    solution a patient wants is the

    right treatment at the right time.

    For the NHS, being more

    marketing-oriented in its

    approach to such issues couldlead to a major shift in

    philosophy that places the

    customer, rather than the

    treatment or the provider, at the

    centre of its operations. This

    would lead to better service,

    more positive feedback, and a

    greater willingness amongst

    patients, doctors and managers

    to be more flexible for the

    greater benefit to all, and help

    return the organisation to some

    of its key founding intentions.

    [ 26 ] The Chartered Institute of Marketing

    the benefits of a marketing approach

    If marketers are to

    be accepted they

    need to change

    commonly

    understood

    'marketing' terms

    to commonly

    understood 'NHS'

    terms.

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    [ 27 ]The real NHS: the benefits of a marketing approach

    Sources

    NHS Advisory GroupMembers from across the NHS have worked with The Chartered Institute of Marketing in

    the development of this Paper. We would like to thank the following for their co-operation

    and involvement, without whom, this Paper would not have been possible:

    i. Department of Health (2004) NHS Improvement plan. London, TSO

    ii. Owens, J. and McGill, J. (1993) Marketing in the NHS: putting patients first. UK,

    The National Association of Health Authorities

    iii. McCartney, M. (2006) More medicine, less marketing. Financial Times, 5 August

    iv. McCartney, M. (2006) More medicine, less marketing. Financial Times, 5 August

    v. Jennings, K. (2006)

    vi. Netcare Healthcare (UK) Ltd (2006) Marketing in the new NHS: a paper based on Netcares

    presentation to the foundation

    Sources

    Helen Bradburn,

    Director of

    Communications,

    NHS Confederation

    Sally Bryden,

    Head of Strategic

    Development, Oxleas

    Mental Health NHS

    Foundation Trust

    Ginette Camps-Walsh, Chairman of

    The Chartered

    Institute of

    Marketing's Medical

    Marketing Group,

    Board member of

    2020 Health

    Celia Dossett,

    Networks Manager,

    Foundation Trust

    Network

    Anne Gibbs,

    Director of

    Development and

    Marketing,

    Birmingham Women's

    Hospital NHS Trust

    Micky Griffith,

    Strategy and

    Development, Royal

    Berkshire NHS

    Foundation Trust

    Amit Khutti,

    Director of Strategy

    and Service Planning,

    Chelsea and

    Westminster NHS

    Foundation Trust

    Sue Kong, Director,

    NHS Elect

    John McGill,

    Professor ofMarketing, Kingston

    Business School

    Emma Mooney,

    Marketing and

    Communications

    Manager, Royal

    National Hospital for

    Rheumatic Diseases

    Tom Neve,

    Assistant Director of

    Planning and

    Performance,

    Tameside andGlossop Hospital

    NHS Trust

    Shari Payne,

    Head of Business

    Development and

    Planning,

    Hertfordshire

    Partnership NHS Trust

    James Rimmer,

    Director of Strategy,

    Yeovil District HospitalNHS Foundation Trust

    Simon Roberts,

    Head of Business

    Development and

    Marketing, Papworth

    Hospital's NHS

    Foundation Trust

    Meurig Thomas,

    Consultant

    Peter Tomkins,

    Non-ExecutiveDirector, Royal United

    Hospital Bath

    Matt Toogood,

    Director Marketing

    and Communications,

    Leeds Teaching

    Hospital NHS Trust

    Stephen Winterson,

    Director of Marketing,

    Countess of Chester

    Hospital NHSFoundation Trust

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    One day workshop

    Marketing to succeed in a competitive NHSTaking marketing into the NHS be a winner in a competitive market place

    Patient choice, a growing range of service suppliers, and changes to service delivery (closer

    to home) are resulting in a less stable market place. Marketing provides a culture, tools and a

    process for identifying and meeting these new challenges pro-actively in pursuit of sustaining

    profitable patient and income flows.

    The purpose of this course:

    To provide an insight into the application of marketing principles to healthcare service

    provision within the UK secondary care environment. The workshop will examine how

    marketing can be used to improve care and the patient experience. It will demonstrate howmarketing can influence service development, resource planning and financial performance,

    in a sector where patient choice prevails.

    You will learn how to:

    Interact and work more effectively with PCTs and practice-based commissioners to

    improve clinical and financial performance

    Improve the patient experience by developing new services, modifying care pathways and

    existing services using 'Patient Choice' and 'Payment by Results' as a stimulus to change

    Apply marketing principles to improve resource planning and financial management Develop a marketing plan

    Communicate and promote services to optimise patient flow

    Become a patient/customer oriented organisation

    Deliver customer/patient focused services

    Use market research and patient referral information to improve service and financial

    planning

    Improve reputation based on favourable patient experience by managing service touch

    points

    Who this course is for:

    This is an introduction programme for those working in NHS organisations seeking to

    establish a marketing rather than a service focused organisation. This course is for managers

    and healthcare professionals involved in the development of marketing plans, implementation

    and/or development of a 'customer centric' culture in NHS organisations.

    Course information:

    7 CPD hours One day workshop

    Level: Foundation Code: 0878Visit our website for more information and to book: www.cim.co.uk/0878

    The Chartered Institute of Marketing: Learning and Development

    [ 28 ] The Chartered Institute of Marketing

  • 7/30/2019 Benefits of a Marketing Approach

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    Two day residential course

    Marketing in the NHS principles and

    practice for managersThe market in healthcare has arrived what should we be doing?

    With the drive for a more personalised and responsive system, the mismatch between supply

    and demand, and patients turning into consumers, the NHS is rapidly starting to resemble a

    market in all but name. To a traditionally centralised, planned public service, the idea of market

    forces can be uncomfortable for some. But markets don't respect the public/private divide,

    they operate whenever people have choices. The techniques involved in surviving and indeed

    thriving in market-driven environments are applicable across any organisation, even the NHS!

    The purpose of this course:

    The purpose of this course is to learn the key principles that govern how markets work, to

    identify how they relate to your organisation, and to apply them to the way that you and your

    team operate. You will have time to think, to learn and to apply the ideas in a way that will

    work for you. This training uses some of the key principles of marketing as they relate to the

    provision of healthcare, and enables managers to apply them to some of the key challenges

    they face in the NHS.

    You will learn how to:

    Learn and apply the 7 'golden rules' of marketing in a healthcare context

    Create a marketing plan for your department/team, based on a structured environmental

    analysis and applying the right capabilities to the right strategy in order to achieve

    objectives that incorporate the rigours of the market

    Create a communications plan that utilises the concept of a marketing mix, targeted at

    the right 'market', with appropriate objectives and an understanding of potential barriers

    to communication

    Identify the critical success factors that are important to your customers

    Create an implementation plan that focuses on the most pressing issues, and identifiesthe biggest potential risks

    Who this course is for:

    This course is aimed at managers who realise that the NHS is becoming more market-

    focused, and recognise that they need to learn more about how marketing works, in order to

    help them survive in a rapidly changing public service.

    Course information:

    14 CPD hours Two day residential course

    Level: Advanced Code: 0090Visit our website for more information and to book: www.cim.co.uk/0090

    [ 29 ]The real NHS: the benefits of a marketing approach

    Courses

  • 7/30/2019 Benefits of a Marketing Approach

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    Information and Library Service

    Vital business intelligence at your fingertipsAvailable for all your marketing queries, whether its a simple, quick question or a

    more in-depth research request. Our stock incorporates marketing books, directories

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    We have the resources and the professionals to help you with your information

    needswhatever they may be. The Chartered Institute of Marketing the one-stop

    information resource for marketers.

    Exclusive Members Area Online

    In addition to this physical resource, Institute members can access an expandedonline selection of journals and company reports via the Knowledge Hub:

    www.cim.co.uk/knowledgehub

    Cutting Edge gives you the information edge

    Our weekly digest of the latest marketing news comes to Institute members via

    Cutting Edge. Access the current edition through the Knowledge Hub and sign up

    to the alert service. www.cim.co.uk/cuttingedge

    For more information, visit www.cim.co.uk/library, www.cim.co.uk/knowledgehub

    or call +44 (0)1628 427333

    Get your own copy of the

    Marketing Trends Survey

    The latest Marketing Trends Survey (MTS) from The Chartered

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    MTS is produced by Ipsos MORI for The Chartered Institute of Marketing on a

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    and Library Service. A summary of the report is available to Institute members at

    www.cim.co.uk/mts. Please contact +44 (0)1628 427333 for further details.

    Price: Members 125 Non-members 200

    +44 (0)1628 427333 www.cim.co.uk/knowledgehub [email protected]

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    booksfor professional marketersWith over 200 marketing and business

    books available, CIM Direct is your

    one-stop-shop for marketing knowledge

    Order online at

    www.cim.co.uk/shopTelephone: +44 (0)1628 427427

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    The Chartered Institute of Marketing

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