Marketing Plan DENTAL

8/12/2019 Marketing Plan DENTAL

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Doctor-Name The-Practice

Two-Year Marketing Plan | Developed By Moxzee | Copyright 2011 All Rights Reserved. 22

Prepared for: Doctor-Name | The-Practice

Prepared by: Moxzee

May 31, 2011

Dental Marketing Plan

The information contained in this marketing plan is condential and proprietary to The-Practice and is intended only forthe persons to whom it is transmitted by the Practice or its representatives. Any reproduction of this document, in whole

or in part, or the divulgence of any of its contents without the prior written consent of the The-Practice, is prohibited.


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Practice Overview 1

Practice Ownership 1.1Market Size & Growth Potential 1.2Practice Philosophy 1.3ROI Expectations 1.4

Situational Analysis 2

Summary of Current Situation 2.1Products and Services Offered 2.1Important Dental Industry Trends 2.3Economic Climate 3.1Competitive Climate 3.2Optimum Patient Prole 4.1Target Market 4.2Summary of Patient Benets 4.3

Summary of Practice Features 4.4Demographic Highlights 5

Population of Local Market by Sex 5Population of Local Market by Age 6Population of Local Market by Ethnicity 7Population of Local Market by Income 8

Marketing Strategy Overview 9

Branding and Identity Strategy 9.1Internal Marketing Strategy 9.2External Marketing Strategy 10.1

Case Acceptance Strategy 10.2

SWOT Overview and Analysis 11

Marketing Plan Assumptions 13

Annual Collections by Category 13Cost to Acquire a Patient 14New Patient Value 15Marketing Budget Total 16Marketing Budget Categories 17

Marketing Plan Forecast 18

Contact 19

Table of Contents


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Practice Overview

Practice Ownership

The-Practice (the Practice) is owned and operated by Doctor-Name and has been formed to provide quality dental careat affordable rates to residents of , and surrounding areas. Doctor-Name has practiced dentistry for nearly

years. The reputation of the practice is impeccable and known throughout the area as one of the most respecteddental practices.

Market Size & Growth PotentialHistorically the dental profession experiences a very low failure rate and a high propensity for prot. According to the

American Dental Association, dental ofces are the third highest-ranking category of start-up business most likely to

survive. The average income of a dentist is in the highest 8 percent of U.S. family income. As the growing populationbecomes better educated and more wealthy, consumers demand better dental care. In response to these expectations,

new opportunities present themselves to succeed nancially while providing premium care. Annual spending for dentalservices has risen from $13.3 to $45.8 billion, an increase of 244.4 percent, from 1980 to 1995, with projectionsexceeding $80 billion by 2011. As in all service businesses, dental practices who strive to exceed their patientsexpectations will always have an abundance of opportunity.

Practice Philosophy The vision and philosophy of The-Practice is to provide the highest level of dental care to individuals and families, while

improving their lives with proper preventive care. Dental treatment and procedures are provided at rates that arereasonable and fair, while being protable enough to ensure the long-term viability of the practice. Thriving nancially willprovide the Practice with the resources and mindset to provide the best dental care possible, which is ultimately their

primary responsibility. In carrying out our day-to-day business operations, the Practice will strive to:

Treat team members with fairness and respect and create a working atmosphere that inspires dedication

Follow the principle that patients are the top priority and that we are fortunate to be able to serve them Create a reputation as responsible business leaders and community citizens that give more than we take

Excel in the art and science of dentistry on behalf of the patients who trust us with their care

ROI ExpectationsBased on the nancial projections and detailed mark eting s trategies contained in this plan, it is estimated that thepractice will achieve a respectable return on the mar keting investment proposed each year. Although the potential for apoor return always exists, the broad range of initiatives and multiple layers of interaction with potential patients, improves

the likelihood of overall success.
http://www.answers.com/topic/dentisthttp://www.answers.com/topic/dentisthttp://www.answers.com/topic/billionhttp://www.answers.com/topic/billionhttp://www.answers.com/topic/dentisthttp://www.answers.com/topic/dentist


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Economic Climate Two economic changes are taking place in the community surrounding the practice. First, the average age of consumersthat live in the community is continuing to go down due to the number of new neighborhoods and structures. At the

same time the nancial health of the over-70 age bracket is greater than in past decades. Many individuals in this agecategory have assets in excess of $1.2 million. The-Practice is continuing to position itself to ll the needs of thischanging demographic by specializing more and more in dental services that appeal to the more mature members of thecommunity, such as dental implants.

The second change is a result of semi-exclusive developments being constructed in areas that have been economicallypoor for many years. As manufacturing and industrial workforces are replaced with white collar educated professionalsthe type of dentistry and expectation of potential patients also changes. In may cases, two-income families that have a

combined income of over $180,000 are taking the place of traditional blue collar residents that were not concerned withcosmetic procedures or premium dental services. This new category of consumer will further support the decision toexpand of the practice into a new state-of-the-art facility. Targeted marketing efforts to attract these consumers is a key

objective of The-Practice and is addressed in this marketing plan.

Competitive Climate About 135,000 dentist ofces and clinics operate in the U.S., generating annual revenue of over $80 billion. The largemajority of dentists are sole practitioners and practice general dentistry; the rest specialize in orthodontics, oral surgery,periodontics, pediatric dentistry, oral pathology, or orthodontics. Average annual revenue per ofce is about $600,000.

The industry is highly fragmented.

The-Practice practices in a population center that has a lower concentration of dentists practicing than the nationalaverage. Within a 5 mile radius of the practice, a total of 26 general dentists practice at least part time. The population in

the same 5 mile radius is approximately 43,500. This comparison of dentists and population results in a ratio of 1,620persons to 1 dentist. The national average is approximately 1,250 persons to 1 dentist. The chart below illustrates these

ratios.

1,250 1,450


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Optimum Patient ProleBased on the type of practice that The-Practice is attempting to develop, the following prole will be the primary focus ofall new-patient acquisition strategies. This is not to say that certain patients are not welcome or are seen as less valuable,

but these attributes describe the most desirable patients based on their nancial resources and propensity to becomeloyal, long-term patients.

Middle to high income

College educated

Married with children Ages from 35-65

Two-income families

Target Market As in most areas of the U.S., the community or market surrounding the practice has a wide variety of income ratios andvariance in statistics such as home ownership. Experience shows that it is never a good idea to over-analyze the market

in which a dentist practices, because undoubtedly patients come from all areas of the surrounding community. However,it also important to optimize the return on investment made by targeting areas that are more likely to produce results.

The-Practice will follow these guidelines when determining a target market:

Avoid the highest income bracket, if income average exceeds $150,000

Avoid households that have an average income lower than $15,000 Avoid apartments and rented homes with the exception of exclusive condominiums

Eliminate all businesses from any target or mailing list

Avoid areas that have perceived barriers of travel to the practice, i.e., freeways, train tracks, etc.

Summary of Patient Benets

Dening benets is an important part of any effective marketing strategy. Following is a list of specic patient benets thatwill be used as value statements throughout the marketing efforts described in the plan:

Extended hours on various nights of the week

Saturday treatment twice monthly Childcare provided while receiving dental work

Use of advanced technology in treatment and patient education

Discounts provided to referred patients

Summary of Practice Features The following list describes important features of the practice that will be used within the marketing strategy:

A highly skilled dentist with over 10 years of experience in modern dentistry techniques Use of advanced technology for treatment

Modern facility with state-of-the art technology

Private treatment planning room

Paperless practice management / digital x-rays


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Demographic Highlights

Population of Local Market by SexOne huge, afuent segment wields more spending clout than any other: Baby-Boomer women. Born between 1946 and1964, these women represent a portion of the buying public no marketer can afford to ignore. With successful careers,

investments made during the boom years, and inheritances from parents or husbands, they are more nanciallyempowered than any previous generation of women. Another important segment is that of female consumers over 50years old . Once the college bills are out of the way and children launch their own households, the discretionary spendingpower of 50-plus women soars. They spend 2.5 times what the average person spends. Women are the primary buyers

for computers, cars, banking, nancial services, and healthcare services, including dental care. It is important toespecially position your dental brand and your products and services to the ever-more inuential female patient.

This chart identies distribution of population by sex within a 5 mile radius of the practice location over a 15-year period.

49%48% 48%

51% 52% 52%

Census 2000 Estimated 2010 Projected 2015

Male Female

Market by Sex


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Population of Local Market by Age Age distribution can hint at patterns of growth. A chart heavier in elderly individuals suggests negative population growththat might be due to any number of factors, including high infant death rates, low birth rates, and increased emigration

away from the area. A chart heavy in younger individuals suggests high birthrates, falling or stable death rates, and thepotential for rapid population growth. Most areas fall somewhere between these two extremes and have a populationpyramid that resembles a square, indicating slow and sustained growth with the birth rate exceeding the death rate,though not by a great margin.

This chart identies age distribution within a 5-mile radius of the practice location. The chart illustrates the distribution offour major age categories that inuence dental practices. This Market Age data is a key indicator for dental marketingdecisions, such as which features or benets of the practice should be emphasized.

21% 20% 19%23%

21% 20%

32%34% 36%

24% 25% 25%

Census 2000 Estimated 2010 Projected 2015

0-19 20-34 35-54 55-64 65 and Up

Market by Age


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Population of Local Market by Ethnicity On the 2000 Census questionnaire, "race" and "Hispanic ethnicity" are listed as separate questions. A person of Hispanicethnicity is anyone who identies with that social group, and so can be of any race. This can make data on race and

ethnicity difcult to interpret. Race data is also difcult to compare from Census to Census because categories havechanged over time. For example, the 2000 Census was the rst to offer the category "Native Hawaiian or Other PacicIslander," and those people could have responded in a number of different ways in previous years. The 2000 Census alsomarked the rst time that respondents were allowed to select more than one racial category. On earlier Censuses,

multiracial individuals were asked to choose a single racial category, or respond as "Some Other Race." As with Market Age data, this Market Ethnicity data is also key indicator for dental marketing decisions.

91%1%3%

5%5%

91%1%3%

5%5%

Census 2000

91%

1%3%5%5%

White Black Asian Hispanic Other

Projected for 2015

Estimated for 2010

Market by Ethnicity


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Population of Local Market by Household IncomeHousehold type is strongly correlated with the following data on Household Income. Married couples aredisproportionately represented in the upper two categories, compared to the general population of households. This is

likely due to the presence of multiple income earners in these families. Non-family households (individuals) aredisproportionately represented in the lower two categories. Households headed by single males are disproportionatelyfound in the middle three categories; single females head households are concentrated in the bottom three categories.Household income in the United States varies substantially with the age of the person who heads the household.

Overall, the median household income increases with the age of householder until retirement age, when householdincome starts to decline. The highest median household income is found among households headed by working baby-boomers. Overall return on investment is strongly correlated to targeting the appropriate households.

30%

20%20%

10%

10%10%

$0k - $15k$15k - $35k

$35k - $75k$75k - $100k$100k - $150k$150k or more

Market by Income
http://en.wikipedia.org/wiki/Baby-boomershttp://en.wikipedia.org/wiki/Baby-boomershttp://en.wikipedia.org/wiki/Baby-boomershttp://en.wikipedia.org/wiki/Baby-boomershttp://en.wikipedia.org/wiki/Retirement_agehttp://en.wikipedia.org/wiki/Retirement_age


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External Marketing Strategy Simply put, external marketing is advertising. Experience has shown that many dental practices implement advertisingtactics and techniques ineffectively. Television ads, freeway bil lboards, radio and magazines, and newspapers with large

circulations are examples of tactics that are usually less effective for dental practices. In other cases, dental practicesimplement the correct advertising tactics but forget to follow marketing rules that have proven to dramatically improve theresponse. By repetitively targeting smaller areas with a consistent message and correct offer, the external marketingefforts of The-Practice will result in an ever-increasing return on investment in the coming years.

The external marketing strategy of this two-year marketing plan represents the largest portion of the overall budget and isbased on advertising methods that have been successful in dental practices in similar markets. They are:

Direct mail postcard campaign

Personalized letter from dentist campaign

Response tracking system implemented to track all inbound marketing calls

Case Acceptance Strategy In any dental practice there are obvious marketing tactics to improve patient ow, referrals and image. However, effective

case acceptance is the most critical component of this dental marketing plan. Making improvements however small in case acceptance can have a profoundly positive impact on The-Practice. During a dental appointment, patients canbecome confused, skeptical or even frightened without ever communicating their feelings to the dentist or dental team.

After the appointment patients become even less focused on the information discussed during their appointment, further

complicating the breakdown in communication.

The case acceptance strategy contained in this two-year marketing plan is projected to create a signicant increase inincome. The-Practice will implement the following improvements:

Team training on personality proling Team training on presentation skills and methods

Integration of patient education tools

Restructure of fee schedule to allow for more patient choice


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SWOT Overview

Denition of SWOT A SWOT analysis, is used to understand the Strengths, Weaknesses, Opportunities, and Threats that should inuencethe marketing plan. SWOT analysis came from the research conducted at Stanford Research Institute to determine why

corporate planning frequently failed. The following overview describes each of the four components that make up thisSWOT analysis.

StrengthsPositive tangible and intangible attributes thatare unique to the dental practice or that

provide a competitive advantage in the localmarket. What are the advantages that thepractice has over competing dentists?

WeaknessesInternal factors within the practices control

that detract from the ability to attain thedesired goal. Which areas in the practice needthe most improvement? What keeps a patient

from returning?

Opportunities Attractive conditions in the community orwithin the practice that might allow for growthand development. What opportunities exist in

the local market which will propel the dentalpractice to a new level of success?

ThreatsExternal factors beyond the control of thepractice which could place the organization at

risk. What is the probability of the occurrence

of these threats? Which threats may be mostproblematic? Rate the severity of the threats.

! How can we promote each strength?

How can we improve each weakness?!

How can we exploit each opportunity?!

How can we protect ourselves from each threat?!


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SWOT Analysis

Denition Determinations The following outline represents the key issues for The-Practice in each of the four SWOT categories. This analysisestablishes important marketing objectives and will guide the practice in implementing this marketing plan. The goal is to

improve in areas of weakness while maximizing the strengths of the dental practice.

Opportunities

Rarely needs to refer his patients todental specialists. Revenue stays in-house.

Excellent demographic base ofconsumers with above average income.

The saturation of dentists is lower thannational averages

Modern facility under construction whichwill improve the image of the practiceand create a marketing opportunity.

Threats

As with most areas in the midwesternstates, the local economy is stillrecovering from the recession.

Competing dental practices arepromoting lower fees and participate in

more insurance plans. Increasing saturation of dental practices

will increase competition in the localcommunity.

Weaknesses

Past marketing efforts have resulted inpoor return on investment.

Practice does not have an onlinemarketing strategy and is not capturingpotential online trafc.

Practice is not tracking marketing callsas accurately as they should.

Practice is not utilizing email as amarketing tactic.

Strengths

Loyal patient base with healthy referrals

Exceptional dentist with broad dentalskills. He has a charismatic personalityand his case presentation skills areexcellent.

Practice has a healthy ratio and overallnumber of fee-for-service patients.

Practice retains the consulting andmanagement services of Four Quadrants

Advisory Companies and Joel HarrisConsulting.


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Marketing Plan Assumptions

Annual Collections by Category One of the foundations of determining an appropriate marketing plan is an analysis of annual collections. The total isused to establish the annual marketing budget and is also used as a baseline for return on investment forecasting. The

total number in the table below is broken into four major sub-categories. These totals are indicators of which treatmentsand procedures need to be promoted throughout the marketing tactics that make up this plan. These numbers are alsoused to predict improvement in case acceptance.

30%

50%

5%15%


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Cost to Acquire a New Patient This analysis is is used to understand the investment required to obtain patients in three important categories of focus. These three categories are seen throughout this plan and are used to determine the budget categories and potential

return on investment. These numbers are based on a combination of national averages as well and the experience ofdental marketing experts that have tracked such data in hundreds of practices similar The-Practice. Although the tablebelow indicates that certain marketing strategies are more expensive than others, it is important to maintain a diverseplan for optimum success. For example, Internal Marketing is a very affordable way to acquire new patients but it is a

nite opportunity, unlike External Marketing. The data below also reects that ongoing years will cost less per patientacquired; this is due to the marketing principle of frequency and brand improvement. As a result, in the assumptionsbelow, the cost per patient in year two is projected to be 20% less than in year one.

Branding / Iden ti t y In ternal Marke ting Ex ternal Marke ting A verage Cos t

$480

$79

$288 $240

$600

$99

$360$300


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New Patient Value The value of a new patient is somewhat difcult to predict with complete certainty. However, to be able to forecast returnon investment it is important to establish numbers that are based on national averages and adjust up or down as the

plan evolves. The four categories il lustrate the assumption that patients from certain sources are more valuable thanothers. Historically, a referred patient is more likely to accept treatment and remain loyal to the practice than a newpatient that responds to an ad. Although this is not an exact science, these numbers are conservative and reect theopinions of leading dental associations and management consultants. In the second year, the annual value drops by

20%, which is typical in general dental practices. Some of these new patients will be completely lost in the second year,which is projected in the nal budget forecast.

Projected Case Acceptance Improvement

Branding / Iden ti t y In ternal Marke ting Ex ternal Marke ting A verage Cos t

$600

$720

$540

$600

$750

$900

$675

$750


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Marketing Budget TotalMany philosophies and opinions exist in the dental industry with regard to how much a practice should spend on

marketing each year. Typically a percentage of annual collections is used to formulate the total budget. Most expertsagree that 5% of annual collections is on the high end of the spectrum and that anything less than 2% is insufcient. It isimportant to note that in many small businesses outside of dentistry a 10% marketing budget is not uncommon. Thereduction of budget in year two is due to the initial investment in certain marketing tactics that wont be required infollowing years.

3.0%2.5%


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Marketing Budget CategoriesBased on the information obtained from The-Practice , the following categories and their associated budget percentagesare outlined in the charts below. These budgets are sufcient to accomplish the objective in each category. The complete

forecast of the overall plan is also based on these budget totals.

10%

22%

60%

8%

6%

26%

60%

8%


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Marketing Plan Forecast


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T Y M k i Pl | D l d B M | C i h 2011 All Ri h R d 19

Contact

Phone 888-851-5305

Address 224 South Main Street, Suite 507

Springville, UT 84663

email [email protected]

website www.moxzee.com

Disclaimer of Liability: The information contained in this dental marketing plan is provided as a good faith estimate of the potential success oroutcome of dental marketing efforts made by The-Practice. This dental marketing plan is only a guideline and doesshould not replace a business consultant or accountant. Moxzee will make every attempt to provide quality information,

but the company makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of theinformation contained in this dental marketing plan. Moxzee, nor any of i ts directors, employees, or other representativeswill be liable for damages arising out of or in connection with the use of this dental marketing plan. # This is a

comprehensive limitation of liability that applies to all damages of any kind, including (without l imitation) compensatory,direct, indirect or consequential damages, loss of data, income or prot, loss of or damage to property and claims ofthird parties.
http://www.moxzee.com/http://www.moxzee.com/mailto:[email protected]:[email protected]

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Marketing Plan DENTAL