BRANDING IN HEALTHCARE14 Reasons Why Strong Brands Win

STRONG BRANDS PROVIDEIMMUNITY IN TODAY’S CHALLENGING MARKETPLACE

Today’s healthcare market provides ample challenges for businesses: increasing

competition and commoditization, significant merger and acquisition (M&A)

activity, and uncertainty with regulatory and government oversight. Healthcare

companies have more than doctors to win over — they have to reach patients,

providers, and payers too. The pressure is not on companies to perform — it’s on

the brands. People don’t buy into a company and its set of products or services.

They buy into the brand, and what it means to them. They buy into the security

within the brand promise and they buy into the way that brand relates to their

individual human journey.

WHAT IS BRANDING?

Branding should not be confused with marketing, advertising, or public relations.

Those are ways of communicating your brand. In order to communicate your

brand, you must first build it.

A brand is a recognizable identity that has a personality, values, and traits. It is

an active business asset that provides differentiation, shareholder value, and

longevity.

GOOD BRANDS ARE:

• Memorable

• Captivating

• Relatable

• Likeable

1. THREAT OF COMMODITIZATION

Disruptive technology, substitute products or services, and global competition

entering U.S. markets are all forces that threaten to make your product or

service a commodity. Branding off ers an opportunity to provide consumers

with a unique experience that can’t be replicated. Brands are one of the only

business assets that provide long-term competitive diff erentiation.

2. MERGERS, ACQUISITIONS & PARTNERSHIPS

More and more healthcare businesses are either joining forces with other

brands, or acquiring other brands to strengthen their portfolio of products

and broaden their capabilities. In order to attract M&As, you need a strong

brand. Your brand identity should clearly communicate the strength of your

company so that other companies perceive your company at a high value.

3. INCREASING FINANCIAL PRESSURE

National tax policies, the medical device tax, pressure to cut costs, and

additional factors are putting increased pressures on healthcare companies’

financials. According to Interbrand, brands create economic value by

generating higher returns and growth, and by mitigating risk. In addition,

brands provide the intangible asset of “goodwill” that can increase company

value and market capitalization.

4. STRONG BRANDS PROVIDE SECURITY IN UNCERTAIN TIMES

Strong brands attract loyalty, and loyalty is protection for when your

company has a PR crisis or the economy gets shaky. Brand loyalists will

defend your brand even when you’re not there. Strong brands can earn

“benefit-of-the-doubt,” whereas weaker brands with slip-ups are more likely

to be called out.

5. KNOWN BRANDS REDUCE PERCEIVED RISK

People choose brand names because known brands are trustworthy. Known

brands with a proven track record provide reassurance and comfort. Branding

is so powerful that consumers are willing to pay more for brand names than

lesser known brands – even when the products are virtually identical. This

is evidenced by shopping data collected by Nielsen on OTC Pain Relievers.

That research shows 24% of aspirin sales by volume, and 59% by expenditure,

is devoted to Bayer. Even when there are generic alternatives at significantly

lower costs, people choose the branded aspirin. What do you think attributes

to consumer preference? Brand. The brand not only allows the company to be

the preferred option, but it also allows the company to command higher prices.

6. RISE ABOVE THE NOISE

According to the book, “The 24-Hour Customer,” people see more than 34

billion bits of information per day – an equivalent of two books a day. Today’s

consumers (whether B2B or B2C) are inundated with messages. Expertly

crafted messaging is no longer enough to break through the clutter and

reach your target market. Companies can no longer purchase people’s

attention – they must earn it. Strong brands that resonate with people win

the privilege to speak to consumers.

7. SIMPLIFY THE DECISION-MAKING PROCESS

During the decision-making process, consumers search for information

to analyze the differences they perceive between competing brands. Brand

awareness and brand knowledge play an important role here. Branding

positions a company as relevant to a consumer in order to gain their attention.

8. HEALTHCARE DECISIONS REQUIRE TRUST

While branding is important in all industries, branding plays an especially

important role in healthcare where purchase decisions have greater

implications than, say, the restaurant industry. Healthcare decisions impact

our lives on a greater scale - varying from quality of life to life-or-death.

Before a consumer decides to let a doctor implant a medical device in their

body, they need to trust that it will be safe. A doctor isn’t going to use a

medical device or drug they’re not confident in either. Branding creates trust

by delivering on brand promise and through relationship building.

9. EMPLOYEE MORALE

Attracting and keeping the top talent is important. High turnover rates are not

only bad for a company’s finances, but they also erode company morale.

If your employees don’t believe in your brand, they’re more likely to spread

negative word-of-mouth. Employee morale affects performance and the

overall bottom line. A strong brand with a compelling mission provides

meaning and purpose for employees, contributing to overall employee

satisfaction. When employees can feel a part of the mission, they’re more

dedicated to the work.

10. TARGETING PHYSICIANS, NPS & PAS

The MM&M/Ogilvy CommonHealth Healthcare Marketers Trend Report for

2013 found that overall, marketing directors allocated around 75% of their

total budget to healthcare professionals and 25% to the consumer space.

But healthcare companies must adapt to a changing environment, and

deploying an army of reps doesn’t work as well anymore. Instead of

communicating on an individual, per physician level, brands need to be able

to speak for themselves. Today, physicians can be reached through a variety

of touch points, including multiple digital channels. The challenge for

healthcare companies is to develop an overarching brand strategy to guide

all communications. This maximizes brand equity, aids brand awareness and

recognition, and establishes the brand as the superior choice. In addition,

companies need to create positive brand experiences for the nurse

practitioners (NPs) and physician assistants (PAs) that interact closely with

patients and play a crucial role in patient education, product adoption, and

medication adherence.

PAYER

PHYSICIAN

PATIENTMEDICAL DEVICEMANUFACTURER

REP

INSTITUTIONS

KOLS

PHARMACY

FAMILYCAREGIVER

FRIENDS

11. PATIENT SATISFACTION

Is your brand voice human or corporate? Your brand has to be consistent

across platforms and audiences, but it should be nimble enough to speak to

the patient. This means producing the right content and delivering it at the

right time, to the right people, with the right tone and style. According to the

Pew Internet and American Life Project, 72% of internet users say they looked

online for health information within the past year. As a healthcare company,

you need to provide patients with the information they’re looking for about

your products and services. Patients are empowered decision-makers and

are asking their doctors for specific brand name products.

“72% of internet users say they looked online for health information within the past year.” Pew Internet and American Life Project

12. PAYER PRESSURE

Healthcare companies are adjusting to the shift in bargaining power to the

payer. Payers now play a key role in the commercialization process, making

them an important stakeholder to please. The onus is on healthcare

companies to demonstrate value. Branding influences perception, and the

right value proposition can prove the true value of a product or service to

patients in the mind of the payer. Because of healthcare reform, convincing

the payer to provide coverage and reimbursement is a bigger priority than

before, and healthcare companies will have to step up their game.

13. THE PROVIDER’S DECISION SET

With healthcare reform, the process of purchasing medical devices within

hospitals has become increasingly sophisticated with a longer, more complex

decision-making process. In more complex decision-making processes,

companies must fi rst earn a spot within the decision set. A strong brand

strategy that communicates value and is easy to recall is key to becoming

part of this coveted selection set.

dir: 760.743.7744 x129cel: 760.500.1965email: matt@zestanchors.com

Matt PowellDirector of Marketing

tel: 800.262.2310fax: 760.743.7975fax: 800.487.1357

Dear Mr. Smith

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SincerelyJohn

14. PATIENT COMPARISON SHOPPING

Patients are more involved in their healthcare than ever before. And that

means they want to find the best healthcare at the best price. Paul H. Keckley,

PhD, Executive Director at the Deloitte Center for Health Solutions, wrote in a

Health Care Reform Memo about the importance of branding in healthcare:

“Consumers have more skin in the game now than ever before. They’re able

to compare prices and outcomes for simple medical treatments. And they

can access their own medical records to compare their signs, symptoms,

risk factors, and co-morbidities to clinical algorithms and better understand

where to get the appropriate care, and how much that care will cost.”

RECAP: WHY YOU NEED A BRAND STRATEGY

• To set your company apart from

the competition

• To increase shareholder value

• To generate stronger

financial results

• To prevent your product or

service from becoming

a commodity

• To maximize your brand’s

relevance in the hearts and

minds of stakeholders

• To build loyalty

• To create trust

• To expand market share

• To support employee morale

• To reach key stakeholders

Building a strong brand will help you succeed.

Are you ready to grow your brand?

ABOUT PARKERWHITE BRAND INTERACTIVE

We position, build, and grow health, wellness, and active lifestyle brands to create

positive changes in businesses and people’s lives.

life@parkerwhite.com (760) 783-2020ParkerWhite.com