.. picking up the cost. Also, for those who cannot afford the test, diagnosis may be unavailable. Desert Radiologists wants to inform everyone by flooding the market with mass publicity and awareness. Information on the disease, procedure, costs and benefits of early detection make the testing appear necessary and desirable.
Advertising at various locations hope to produce results which will contribute to the success of testing being requested on a regular basis just like Pap tests and mammograms. By being the first imaging center in Las Vegas to offer this service, Desert Radiologist hopes to capitalize on an untapped market and retain a steady customer base. THE PLAN FOR MARKET SHARE Desert Radiologists will meet their customer needs by providing state-of-the-art testing with reference information available to answer all questions during the process. The scope of the testing in terms of growth and profitability can be defined broadly. This technology is an emerging market.
To date very little of this markets potential has been tapped and the potential for growth is great. Our goal is to discount all referrals from family, friends, co-worker etc. Every customer that requires this testing will become part of the overall public relations campaign by word-of-mouth customer satisfaction. This referral process will increase sales by customer satisfaction. STRATEGIES FOR THE CAMPAIGN The first step in our strategy will be to get the message out to the public. How we plan to do this will be integrated with our marketing plan. The campaign will consist of two phases.
During the initial phase, we plan to have local spots on television, radio, and newspaper. The campaign message will depict the importance of testing for cancer and success rate of surviving cancer by early detection. We plan to achieve the competitive edge on our competition and follow up with phase two of the campaign by pointing out that Desert Radiologists is the leader in this new state-of-the-art testing. SOURCES OF FUNDING The public relations department is authorized 1% ($200,000) of total revenues ($20,000,000) to conduct an extensive campaign for the three-year contract. The additional funding will come from 10% ($96,000) of annual sales ($960,000).
Desert Radiologists will have a combined annual budget for marketing ($300,000) and public relations campaign budget ($296,000), totaling a combined budget of ($596,000) for one fiscal year. This budget will be reviewed on an annual basis. THE BUDGET We expect to obtain 50% of sales from local health clinics for smokers and doctors that treat for cancer. The additional 50% of sales will come from the marketing and referral process. The first two months have netted daily sales of $4,000.00. This is based on the average of 16 tests each day on the four machines at a cost of $250.00 per test.
On a yearly basis the first year will net $960,000 at a sustained rate of 16 tests a day between the four machines. If all goes well, we will double these figures after the first six months of getting the word out. With the cost of software for all four machines totaling ($80,000), employees annual salary ($128,000) and public relations campaign ($296,000) per machine, the annual profits from all four locations will total $456,000. (See Exhibit “A” for Income Statement). Exhibit “A” Income Statement Desert Radiologists for the Year Ending June 30, 2001 Sales $960,000 Cost of goods sold 80,000 Gross profit on sales 880,000 Operating expense Selling expense 296,000 Operating expense 128,000 Total operating expense 424,000 Operating income 456,000 Interest expense 5,600 Earnings before taxes 450,400 Income tax 90,080 Net income 360,320 COMMUNICATING THE MESSAGE Public relations is one of the most powerful weapons in the marketing warfare. It is also an extremely cost effective marketing discipline.
Public relations generated sales ultimately result in an increased overall awareness and enhanced reputation of the organization and its services, which will prompt people to respond to its advertising approach. Modern public relations is a sophisticated management training which crosses the boundaries of all corporate functions. The results of media coverage can provide a powerful sales tool. There are multitudes of avenues that can be explored to provide media coverage. Advertising, word-of-mouth, established clients, but none so far-reaching as the Internet and the organizations web page. Desert Radiologists has its domain in the World Wide Web as desertrad.com.
However, public relations is not just about media relations but it is about an organizations reputation, communication of corporate values, thoughts and deeds, assessing audiences responses, and taking positive action. If an organization can develop a positive reputation and is successful in its particular industry, then potential and existing clients will look more favorably upon the organization. Desert Radiologist is continually building its client base by keeping old customers happy; attracting new customers through information, pricing, and the quality of service; educating the public on state-of-the-art equipment and research developments; and innovative new programs and screening processes such as the new CT lung screening test. STRATEGIES To be competitive, an organization must know its competitors. Desert Radiologists primary competitors are Insight Diagnostics, Steinberg Diagnostics, and West Valley Imaging.
Constantly monitoring the competitors advertising, web site, and market share enables Desert Radiologist to stay focused. While Desert Radiologists must know their competitors, they must also know the target market. A market strategy specifies a target market and a related marketing mix. Desert Radiologists has a marketing plan consisting of objectives, opportunities, and strategies; an effective means to implement their marketing plan; and control of the marketing plan and program to evaluate its progress and adjust the plan as needed. Desert Radiologists uses the four Ps in their marketing strategy of Product, Place, Promotion, and Price to reach their clientsC.
Each of the four Ps contributes to the whole success of Desert Radiologists. Marketing is an integral part of any organizations success and should provide the guidelines for satisfying clients needs using the “four Ps” for continuous innovation and improvement. COMPETITORS RESPONSES As the economy and competition grows, advertising becomes more importantbecause more consumers have income and advertising can get results. Just as access to the Internet becomes more universal, the strategy for Desert Radiologists is to utilize the World Wide Webs vast audience to educate and inform the public about the CT lung screening. Steinberg Diagnostics Medical Imaging Centers (sdmi-lv.com) also has its web site and is matching Desert Radiologists page item for item complete with a question-and-answer sectioneven online appointment scheduling.
The competition also has placed advertising in the local Las Vegas Business Press. Desert Radiologists has used different types of advertising to help solicit new clients. Utilizing institutional advertising promoting Desert Radiologists image via the awareness or announcement campaigns; the informative, descriptive ads to create interest in the new screening; competitive ads with persuasive copy; competitive pricing and full disclosure about non-insurance pay; and informative “why you need to have the screening done” ads. Steinberg Diagnostic has also placed pioneering advertising in the media with the use of competitive advertising. The direct and indirect approach is being used by both organizations. Both competitors are targeting “smokers” and warning them of the potential dangers of not having the screening done.
Desert Radiologists marketing and public relations managers are always looking for cost-effective media that will get the message to the target marketthe smokersby matching the market with the media. S.W.O.T ANALYSIS Desert Radiologists has identified and listed the organizations Strengths, Weaknesses and its Opportunities and Threats. The S.W.O.T. analysis helped Desert Radiologists focus on a strategy that took advantage of the organizations opportunities and strengths while avoiding its weaknesses and threats to its success. The competitive advantage was the innovative new screening test for cancer.
The competition was not far behind. MEASURING RESULTS It is not easy to measure the results of advertising or introducing a new product. Some breakthrough, innovative campaigns do have a very direct effect on increased client volume that can be measured by before and afteror duringthe new screening campaign. Yet, we usually cannot measure the effectiveness or success just by looking at numbers or revenue. The total marketing mix of reputation and stability in the community is also responsible for the result of the new marketing plan.
Also, new client and referrals are also affected by what competitors do and by other changes in the external marketing environment, i.e. cancer awareness and public awareness of smoking hazards and litigation. Using client questionnaires and surveys will also help measure the effectiveness of the new CT lung screening. Through defined specific advertising objectives, choosing media and messages to accomplish the objectives, testing plans, and then evaluating the results of the new campaign will result in good measurement tools. Roberts additions will have to go here! WE NEED A CONCLUSION!!!!!!! REFERENCES “Test can detect lung cancer at early stage.” The Oregonian 14 Feb. 2000: A1 Seitel, F.P.
(1998). The practice of public relations (UOP Special Edition Series). Upper Saddle River, NJ: Prentice Hall. American Cancer Society. (2000). “Cancer Facts and Figures 2000.” National Media Office, New York, NY.
Lerner, Maura. (2000, February). One More Gift, Maybe a CT Scan. Minneapolis Star Tribune, ppg. A4, A6.
www.nci.nih.gov www.mdanderson.org www.pslgroup.com www.bocaradiology.com www.cancer.org Bibliography REFERENCES “Test can detect lung cancer at early stage.” The Oregonian 14 Feb. 2000: A1 Seitel, F.P. (1998). The practice of public relations (UOP Special Edition Series). Upper Saddle River, NJ: Prentice Hall.
American Cancer Society. (2000). “Cancer Facts and Figures 2000.” National Media Office, New York, NY. Lerner, Maura. (2000, February). One More Gift, Maybe a CT Scan. Minneapolis Star Tribune, ppg.
A4, A6. www.nci.nih.gov www.mdanderson.org www.pslgroup.com www.bocaradiology.com www.cancer.org.