Eight 'p's'of Marketing On Dentistry.docx

CASE 3: DR. BECKETT’S DENTAL OFFICE QUESTION #1: Which of the eight elements of the services marketing mix are addressed in this case? Give examples of each “P” you identify. The original Four P’s of marketing detail the important components of product marketing. Academics and marketing practitioners point out that services differ from products; they are intangible, heterogeneous, perishable and inseparable from the service provider. Additional P’s have evolved to help create a comprehensive framework for marketing services. Applying the Eight P's in a service business is essential to developing a marketing plan. As to Dr. Beckett’s Dental Office case, the elements of the services marketing mix addressed are as follows:  PRODUCT / SERVICE. This is the first P. It deals with the “thing” the business is selling, the competition and substitute products. Aligned with its vision of offering superior quality dentistry, Dr. Beckett aims to provide customers with a beautiful smile and good dental hygiene for greater confidence. We are assuming that the actual service covers the full range from dental check-up, cleaning, tooth extraction, reconstruction, etc. It’s true that a visit to the dentist is a grudge task and not considered to be a priority by lot of people. Hence there is a need to provide superior quality service to correct the misconceptions and take out the negative feelings from typical customers.  PRICE Price not only determines the service’s profit margin, but it also has a bearing on many other marketing decisions. Price sets a value standard for the service, one that the company’s people, physical evidence and performance must meet to be successful. While Dr. Beckett recognized that profit is important, she didn’t want to compromise quality thus the premium pricing approach. While other dental services may have opted t offer lower price to adapt to the trend of declining health care cost to insurance companies, Dr. Becket took the opposite direction and focused on quality to justify the relatively higher pricing. To support the move, the new office contains state of the art facilities, an updated modern design and several value added service. The pricing strategy is actually aligned to the conceptual target market that Dr. Beckett’s wants to capture – the white collar workers who have the capacity to pay and see the value of having a beautiful and well maintained teeth.  PROMOTION

Promotion is how the company markets its services. Companies will strive to match the media to the message. The dental office has been in the business for 22 years now and has generated a customer base of 2,000 active patients simply through positive word of mouth from patients who tried the service. There was no need to advertise heavily through traditional medium. Aside from the fact that advertising was not the norm, margins we’re also good before. With the changes in the market landscape (increased competition, reduction in health care cost, etc), Dr. Beckett may feel that there is a need for her to develop a formal promotional strategy, in line with the total service revamp in order to capture a wider customer base.  PLACE Because services generally are purchased and used at the same time, the location where the service is delivered plays a role in the promotion, price and product. Coming from a cramped space, Dr. Beckett’ move to a bigger space was aligned with her positioning strategy, giving her the perfect chance to overhaul of her service too. This new place was designed to be an extension on Dr. Beckett’s personality adds to the company’s branding. It didn’t just aimed to provide a pleasant place for the customers but for the staff as well. The investment also was worth it since the physical place is the first thing that customers will see when they visit the dental office. There was intentional balance between function and design which sets the dental office apart from the usual clinical and traditional dental offices. The add on features (play area, classical music, headphones, etc) were all aimed at providing a superior and pleasant dental experience minimizing the unpleasant feelings of going to a dentist. The certificate diplomas displayed, which is a standard practice in most professional service industries adds credibility to the dental office.  PEOPLE Much of how customers rate the service experience hinges on the person delivering it. Professionalism and courtesy go a long way in any service business. It is obvious that Dr. Beckett puts a high regard to the welfare & growth of her 7 staff who are assigned in the ‘front’ and ‘back’ office. This is important for a service company that the staff is happy because it could translate to a good service as well. They are provided monthly bonuses plus an annual travel with the whole team. Beyond the financials, the staff is regularly given opportunities to update skills thru classes & workshops. Clearly, Dr. Beckett sees the value of the staff in delivering her company’s vision and goals. There was also open communication and staff gives inputs and suggestions on

how service can be improved. As a result, there is a good dynamics among the staff and they view themselves as part of a larger team.

 PROCESS Process is the standard operating procedure in delivering the service. Overall process and service is very professional. In fact it’s commendable that in spite of staying in the business for over 20 years, Dr. Beckett still thought of improving the office system. It was redesigned to standardized routine procedures to reduce error and provide same level of care. Each procedure is timed & staff work to meet the set time. Customers are also not allowed to wait for more than 20 minutes. Availing a dental service is something that is planned so it’s okay to require customers to set appointment to be entertained. Cancellations are also filled in to maximize capacity. The initial exam by Dr. Becket who provides education & counseling to patients adds a personal touch and adds credibility to the service. The only sign that the process can be further improved is the fact that waiting time can range from 3-4 months. We think that this is too long a gap and poses a risk of allowing customers to try out other competing dental services.  PERFORMANCE Sometimes called productivity, performance examines how well a company’s services compete in the marketplace. This may include how consistent the service is and how well its features translate into benefits as it is being delivered. Given the good employee dynamics among Dr. Becket and the dental staff, over-all process is standardized, streamlined and highly productive. There’s a steady flow of patients and reservation is efficient as well. The true measure of productivity however will be determined once the new revamped operations stabilized. It should be able to provide bigger sales, higher per transaction value and customer count given the bigger space and the significantly improved service.

QUESTION #2: Why do people dislike going to the dentist? Do you feel Dr. Beckett has addressed this problem effectively? A study published this month in Health Affairs found people are more likely to forego dental health because of cost than any other type of health care. And that's a

problem, because avoiding dental care can have other health repercussions down the road, according to Health Central. Many people don’t like going to the dentist because of the non-financial costs in time, effort, and discomfort that are typically associated with the service process. Dental patients can sometimes get the financial cost of treatment covered by insurance but experience all four kinds of non-financial costs to varying degrees:  Time costs: These include both time waiting for service and the actual service delivery. Beckett’s office tries to minimize waiting time by having patients make appointments (a method of reservations) and scheduling an appropriate number of patients each day. Patients whose wait is longer than twenty minutes are given the option to reschedule. The front office employees often call patients if they know there will be a delay. Beckett’s office has tried to minimize in-process waits by standardizing most of the routine procedures. Specific times are allotted to each of these procedures, and the staff works hard to see that these are met.  Physical costs: Visits to the dentist often involve discomfort—ranging from the mildlyun pleasant sensation of having one’s teeth cleaned to the severe pain accompanying a more intrusive procedure. Some patients go to the dentist for help in reducing pain. But many others feel fine when they enter the dentist’s office, only to be miserable upon leaving as a result of the treatment they receive! Beckett’s staff tries to be gentle intreating patients, and Novocain and gas are used when necessary to reduce painful sensations during procedures. The employees also warn patients when a procedure is likely to be uncomfortable or painful. Patients who will experience discomfort after they leave Beckett’s office are provided with soothing mouthwashes and prescriptions for pain-relieving drugs.  Psychological costs: Fear is the main psychological cost—both before and during a visit to the dentist. Most of this fear is related to the expectation that unpleasant physical costs will be experienced during dental care. There is also a cost of feeling embarrassed to leave the dentist’s office with a temporarily swollen mouth and altered speech. Beckett’s employees try to reduce psychological costs by educating patients (through discussion or with brochures and videos) about the specific procedures they will be undergoing.  Sensory costs: There are many sensory costs associated with a visit to the dentist. Patients encounter unfamiliar sights (e.g., the frightening-looking dental equipment), sounds (e.g.,whining drills, teeth being ground), smells (e.g., the “burnt” smell from drilling, the medicinal smells of the dental

materials), and tastes (e.g., blood, the dental materials).While Beckett’s employees can’t reduce most of these costs directly, they attempt to offset them by decorating the office in soothing colors and providing distractions like music (played in the office and also available through headphones if the patient has a special request). Patients whose procedures are lengthy are given pillows and blankets so that they won’t get cold from sitting still for a long time

QUESTION #3: How do Dr. Beckett and her staff educate patients about the service they are receiving? What else could they do? Since Dr. Beckett’s major problem focuses on the management system of her business, then it affects much of her services offered. The problem basically cause the service itself in terms of how Dr. Beckett and her staffs do their tasks or on how they provide the service to their customers which resulted to a dissatisfaction and poor service. Dr. Beckett wanted to offer the highest level of dental care rather than being low-cost provider with the help of a consultant. She decided that her top priority was differentiating the practice on the basis of quality. Since higher quality care was more costly, Dr. Beckett’s patients sometimes have to pay fees for costs that were not covered by their insurance policies. If the quality differences weren’t substantial, these patients might decide to switch to an HMO dentist or another lower-cost provider .Since Dr. Beckett does not even mind her customer needs and just focus and give prior to the job she’s working to her patients tend not to live on going to the dentist and tend to have a negative attitude toward that service.

Alternative Course of Action A. Strengthen and pursue the new premium and upgraded service of Dr. Beckett’s Dental Office to support its differentiation strategy Pros:  This direction is aligned with the company’s Vision & Mission statements and the personal values of Dr. Beckett. She views the dental office as an extension of her personality so upholding quality and great service is second nature for her.  The existing staff is already oriented with the new service design and quality principles  Provides high level of customer satisfaction based on the referrals from previous customers  The high quality and consistent level of service will allow them to charge a relatively higher price without the customers feeling short changed

 The company already invested big in its new bigger space and facility Cons:  It is difficult to sustain high quality all the time both in terms of operating cost and effort  It is a thankless service, customers usually don’t show appreciation

B. Take out the extra complementary services and pursue a low cost strategy. Although, this particular option was not explicitly presented in the case as Dr. Beckett herself has already decided to pursue quality differentiation, we are still assessing this option due to the considerations below: There are several complementary services being offered. It is possible that some ‘extra services’ like DVD player or hanging mobiles is non value adding or not relevant to customers so removing it will not impact on the patronage. Pros:  Less effort to sustain the high standards set  Less pressure for Dr. Beckett and the staff  It’s possible that taking out some of features like free coffee or ice tea will not lessen their service performance from the point of view of the customers  This may allow them to rapidly expand customer base (due to lower price) that will allow them to maximize the bigger space and facilities already purchased Cons:  The improvements they started will be put to waste  They will attract the lower income market segments will might erode the ‘premium’ brand equity that it has initially built  Quality service is compromised so old customers who were used to the top notch quality might get turned off and transfer to other dental services.  The company may be faced with more competition since the other dental services are commonly competing based on price. This is usually not a sustainable, not only will quality be compromised, the company may operate at a loss due to high operating cost.

C. Dr. Beckett must promote and educate the service she offers to her customers in order for them to know the benefits they might get and even though the price of her services is high, the qualities of the services are worth it.

D. Fear of needles and injections is huge for some people. It is one of the Adult phobias and children are even more fearful. Instead of using Anesthetic options just not to feel pain, the management could use a comfortable dental device to ensure patients are as comfortable as possible. These devices can help make that dreaded injection much more comfortable. It involves the use of electronic devices to assist with local anesthetic delivery. The device doesn’t look nearly so intimidating and the injection can be done so gently that most people barely notice.

QUESTION #4:What supplementary services are offered? How do they enhance service delivery? Beckett’s service delivery involves both facilitating and enhancing supplementary services. The facilitating services are required in service production, while the enhancing services add value to the core product. Facilitating supplementary services: a. Information: Beckett’s staff tells patients about dental procedures and costs before treatment occurs. During treatment, patients are advised about what is happening and how long the procedure will take to complete. b. Order-taking: Whenever possible, patients make an appointment (a reservation) for dental care. For a routine cleaning and exam, patients may have to wait three to four months if they don’t have their appointments automatically scheduled every six months. Less routine treatments (like crowns or gum repair) are scheduled sooner. Emergency procedures (which disrupt the normal order-taking process) are handled immediately—even if they occur after regular office hours or on weekends. c. Billing: Beckett’s employees contact patients’ insurance companies to collect payment. Office policy requires patients to pay any fees not covered by insurance at the time of treatment, but additional statements are mailed if necessary. d. Payment: While insurance covers most costs, patients sometimes have to pay additional fees. They can do this via cash, check, or credit card.

Enhancing supplementary services:

a. Consultation: Beckett and her staff consult with patients both before and after treatment. They hope that by educating patients about proper maintenance (like flossing, brushing, and regular checkups), future corrective procedures can be avoided. They also discuss non-routine treatments with patients and provide counseling about how to maximize their treatment outcomes. b. Hospitality: Beckett’s office is designed to maximize guests’ comfort. The waiting room and reception area is attractively furnished. Live plants and flowers are abundant, and the walls are covered with art. Classical music plays softly. Patients can enjoy a cup of coffee or tea and browse through current magazines while they wait. The chairs in the examining rooms are covered in leather and are very comfortable. Each room has a large window that allows patients to watch birds eating at the feeders. Mobiles hang from the ceiling to distract patients from the unfamiliar sounds and sensations they are experiencing. Headphones are available with a wide selection of music. Some of the most successful hospitality services came from staff suggestions about how to improve patient care. These include follow-up calls to patients after major procedures; a “goodie box” for patients that contains a toothbrush, toothpaste, mouthwash, and floss; buckwheat pillows and blankets for patient comfort during long procedures; and a photo album in the waiting area with pictures of staff and their families. c. Safekeeping: Parking is available in a clean, nicely landscaped lot right in front of the office. There are coat racks in each examining room where patients can hang coats and purses. Children can play with toys or watch videos in a conference room under the supervision of front office staff while their parents receive treatment. d. Exceptions: Beckett’s employees treat emergencies when they occur—even if this means Beckett has to come in after hours or on weekends. Service failures of any kind are corrected immediately (e.g., replacing a broken temporary tooth or refitting a crown). If payment is a problem for patients, the front office staff will attempt to work out a reasonable billing schedule.