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The Multi Media Pitch
by Jack Evans
Consumers are buying scooters on TV, lift chairs from radio ads. Sound
crazy?
Think again. The home health care marketplace has evolved dramatically from
the traditional senior patients who walk in with prescriptions for HME from
local medical referral sources. But have you and your business ever changed
the way you operate? According to the annual surveys conducted in our
marketplace, maybe 10 percent of HME providers have become successful
retailers. Think of the opportunity! But is anyone really listening?
Consumers who are caregivers and patients themselves need home health care
products on a regular basis. But they rarely know where to go to buy them.
Retail businesses that advertise educate their communities, building brand
and product awareness. Read on if you would like to learn how.
The home health care professionals and companies profiled below advertise,
sell volume and are very profitable. What are they doing differently?
For starters, they believe:
- Advertising is a long-term commitment, not a short-term expense;
- Successful mass media advertising is a direct result of saturation
and frequency; and
- Television enables independents to compete successfully against the
chains.
Formulas for Fame and Fortune
To be successful, mass media advertising requires a strategic plan.
Following are the elements to consider when advertising on radio or
television.
1. Show & Sell
Advertising in the mass media such as TV, web and radio can have two
radically contrasting objectives. The first is to create a brand that is
easily recognizable by the consumer. The second is to sell product at a
price. Both objectives can be achieved successfully. But they each reflect
different demographics, advertising campaign strategies and corporate
philosophy.
TV advertisers of HHC products usually talk in numbers: 1100 canes in 3
minutes, 80 scooters in 30 minutes, 40 walkers per location per weekly
run-of-station spots. They are pitching the right product at the right price
at the right time to the right audience. Their sale is a proven formula that
works for a particular TV medium, whether it is home shopping, infomercials
or commercials on cable and network stations.
“We start with a mission statement or philosophy before we create an
advertising campaign,” explains Scott Purdy, CEO of MEDIchair and
helpmom.com, Alberta, Calgary, Canada. “Then we create a storyboard and
commercial. Finally, we develop impactful point-of-purchase displays using
still photos from these TV spots. The minute our customers walk into one of
our locations, they are able to identify our TV-advertised products.”
2. Build Brand
In contrast, other advertisers focus on building a name instead of
selling specific products. Developing a brand name, or an image in the mind
of current and potential customers, is definitely a long-term commitment in
advertising.
“Are you the guy out of Greeneville who has those great radio ads?” Floyd
Harwell was just asked by someone he met at a funeral 75 miles away in
Knoxville. Harwell, president of Home Medical Services, Greeneville, TN,
says that this person recognized his voice immediately.
“When I went back to the office and looked up his name, I found that we had
sold and dropped-shipped his family two lift chairs – and they have never
been to visit our store! We never sell product at a price. We simply talk
about our company and our service and hope people remember who we are when
they need us. I guess that after eight years our advertising must be
working!” Many locals call Harwell the “Motel 6” pitchman of Tennessee.
For a five-location regional HME in southern Oregon, Andy Boesl, marketing
director for Home Medical, wanted to develop “top-of-mind awareness” in the
community about their company. “We don’t have the dollars to provide steak
barbecues for all of the physicians in town, but we still need to educate
people about the products and services our Home Medical offers. Television
has been our great success story, because the chains just don’t advertise on
TV.”
“Now when a discharge planner reads the list of HME providers to a patient,
most patients tell us they picked us because they heard about our company on
TV. Plus, whenever we visit referral offices, nurses and physicians tell us
that they see our ads on the local news hour. Both our sales and credibility
have soared.”
3. Know Your Demographics.
How do you know where and when to run your spots? “We begin with a
station’s demographic ratings,” says Purdy. “We specifically look for the
convergence of two high-frequency viewer groups, the influencers
(caregivers) who are between 46 and 60 years old, and the end-users who are
over 60,” says Purdy. If you watch Jeopardy or Wheel of Fortune, look out -
you fit right into this target audience!
“We also focus our spots on the early morning news programs when the
influencer is watching. This triggers the ‘permission cycle’ in which Mum
won’t buy until her daughter (or son) gives her permission. The mother says
she really doesn’t need the lift chair or walker, but the daughter explains
to her why she really does need it. So Mum goes ahead and signs the check
because she now has her daughter’s approval.”
Boesl of Home Medical utilizes ongoing customer satisfaction surveys and
their ORXY surveys to know where and when to advertise. “We constantly ask
our customers which stations and programs they watch. As a result, we only
advertise on the local evening news programs and now reach the majority of
our customers 55 years and older who caregivers or patients.”
Almost every radio and TV station offers a demographic profile (just ask for
their media kit) that outlines their core respective listeners and viewers.
Compare this data with your own customer base until you find the closest
match. Or simply have your customer service representatives ask your current
customers for their favorite radio personality or television show.
This demographic information will help you target the station, program and
time for placing your spots. Note one significant difference between cable
and network TV: on cable you are able to select a station which appeals to a
particular demographic, such as Lifetime for women 55+, and all spots –
including the run-of-station freebies – are targeted at your specific age
group. However, on network TV stations, each show appeals to a different age
group, so spots need to be clustered around specific demographic time blocks
(such as AM national news and noon or evening local news for adult children
and caregivers).
4. Sell The Pitch.
Canes were one of the first home medical equipment products sold on QVC.
“Now viewers can buy reachers, back braces, lift chairs and even scooters on
cable shopping networks such as QVC and HSN,” says Pam McGregor, president
of Creativity Plus and PAMed, Naples, FL. “Who would have thought we could
sell a $2,000 scooter on TV without touching or riding it? And sell 80 units
on one segment alone? Once $20 was the magic number for selling products on
TV, but now the more expensive the product, the better it sells.”
On TV, successful HC advertisers “say and show” their product’s benefits as
many ways as they can. They show the product in action to hook your viewer,
while using a voice-over narration to repeat the personal benefits. Their
ads are glamorous, captivating - and repetitive. These spots succeed because
they stimulate memory, action and sales.
On radio, successful advertisers talk personally one-on-one with their
listeners to avoid being tuned out. Many promote active listening by using a
known radio personality and don’t write a set script. These advertisers let
their announcer talk naturally to listeners and play off their familiarity
with that program, radio personality and station.
“We only advertise on Maxine’s local news program,” explains Harwell. “When
I first moved to Greenville and went to work at the hospital, at noon
everyone flocked back to the lunch room to listen to Maxine’s news program
on the radio. The first time this happened, I thought that a disaster must
have happened. And do you know what the feature news story was that day? The
fire department was called to someone’s house to put out a fire and the
damage was confined to their pot of beans. I knew right then that if burning
your beans makes the local news in a small town, then this was the place to
advertise!”
5. The Medium.
Television has become the “golden” medium for selling HME. Why? Viewers
can see you demonstrating the personal benefits they or their loved ones
will enjoy from these products. Whether they are watching a simple
commercial, a longer infomercial or a segment on a cable shopping network,
consumers can instantly see if and how they will benefit from buying what
your are selling.
“On cable shopping networks, viewers know they won’t have a second chance to
buy,” says McGregor. “They can fold over a catalog page and never go back to
order the item. The can watch an expensive infomercial but not act because
they are unsure about who is taking their credit card number or whether they
can return the item if they don’t like it. But on cable, viewers know and
trust the program hosts and believe they are being offered a once-only
opportunity.”
Boesl has refined Home Medical’s advertising program to utilize different
media for specific goals. “We have learned that print and radio work best
when we are holding events such as diabetes health day or a wheelchair
tune-up day. To simply sell product at price, we use stuffers in our
invoices and mail order shipments.
“Television is the medium that has successfully built our community image.
Our customers are always coming in and complimenting us on how we are doing.
We show real patients with real testimonials in our TV ads, and customers
keep telling us ‘That’s exactly how Home Medical is!’ Our customers know
that we truly are the way others say we are.”
6. Frequency & Saturation.
The next step in successful media advertising is to negotiate contracts
with the stations that run the programs most watched by your customers.
Advertisers on contracts usually buy “ROS” (run-of-station) spots at
discounted or two-for-one rates, because these spots are run anytime the
station needs filler which most often is during the late night and early
morning hours. MEDIchair’s Purdy “pulses” their TV advertising, running
30-second spots heavily for four or five days, and then is off the air for
an equal number of days. “If you work with a station’s salesperson, you can
usually negotiate to get most of these ROS spots at good times instead of at
1 or 2 AM.”
Home Medical’s Boesl runs their image spots continuously year-round.
Frequency and cost vary, because the first half of the year is busier while
the second half is quieter and affords a better buy. “We pay between $8 and
$12 per spot and run our image ads once per day per station during the
evening news every Monday through Friday,” reports Boesl. “Consistency and
frequency are the core of our TV advertising and the reason why we have
become a known commodity in the communities we serve.”
Home Medical spends approximately $1,000 monthly on image ads and another
$2,000 per month when they run product spots with their vendor co-op
partners. The TV advertising is spread over four stations, one cable and
three network affiliates, to reach customers in their five geographic
markets. “Our “Premier Partnerships” co-op program for TV advertising with
companies such as Nova, McKesson, Pride and Bayer has helped us greatly
increase our sales. We grew our blood glucose meter business 600% in one
year alone.”
Annual HME Marketing/Advertising Budget = 5% of $1Mil gross sales
| Yellow Pages |
5% |
$2,500 |
| Newspaper |
20% |
$10,000 |
| Radio/TV |
35% |
$17,500 |
| Web |
10% |
$5,000 |
| Direct Mail |
10% |
$5,000 |
| Trade Shows |
10% |
$5,000 |
| Open Houses |
5% |
$2,500 |
| Misc. |
5% |
$2,500 |
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$50,000 |
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