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Learning Objectives After completing this module, your basic understanding should include: • Appreciating that your veterinary practice is in the service business, and therefore needs to utilize appropriate marketing and merchandising concepts • Realizing that most pet owners want to know the benefits of a product, in order to make a decision based on value • Understanding that consistent and reinforcing messaging about proper pet nutrition, both verbal and visual, enhances your ability to be an advocate for the pet’s best interest VNA Level I Module 10: Marketing and Merchandising Your progress is saved. Slide 1 of 14 SM
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SM VNA Level I Module 10: Marketing and Merchandisingvna.hillsvet.com/pdf/en-us/Module_10.pdf · VNA Level I Module 10: Marketing and Merchandising Introduction As a veterinary health

Jun 08, 2018

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Page 1: SM VNA Level I Module 10: Marketing and Merchandisingvna.hillsvet.com/pdf/en-us/Module_10.pdf · VNA Level I Module 10: Marketing and Merchandising Introduction As a veterinary health

Learning ObjectivesAfter completing this module, your basic understanding should include: •Appreciatingthatyourveterinarypracticeisintheservicebusiness,and thereforeneedstoutilizeappropriatemarketingandmerchandising concepts •Realizingthatmostpetownerswanttoknowthebenefitsofaproduct,in ordertomakeadecisionbasedonvalue •Understandingthatconsistentandreinforcingmessagingaboutproper petnutrition,bothverbalandvisual,enhancesyourabilitytobean advocateforthepet’sbestinterest

VNA Level I Module 10: Marketing and Merchandising

Yourprogressissaved. Slide 1 of 14

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VNA Level I Module 10: Marketing and Merchandising

IntroductionAsaveterinaryhealthcareteammember,youhaveexceptionalopportunitiestoprovidefortheneedsandwantsofpetsandpetowners.Therefore,itisimportanttorealizethatyourveterinarypracticeisa“servicebusiness,”andassuch,isbeingevaluatedbyeveryclientinrelationtoallotherservicebusinesses.Alltheotherbusinessesvyingforpeople’sattentionandmoney,includingrestaurants,retailstores,cardealers…arealsobeingevaluated.

Whileatfirstthismayseemoverwhelming,veterinaryhealthcareteammembersareinavitalpositiontohelppetsandpetownersinuniqueways.As“human-animal”bondscontinuetogrow,sodoestheobligationtocontinuallydevelopmore“Family-Pet-VeterinaryTeam”Bonds.Thisisdifficulttodohowever,ifpetownersareunawareofwhatyourpracticehastooffer.Thatiswheremarketingandmerchandisingplayanimportantrole,particularlyrelatedtoproperpetnutrition.Byunderstandingandapplyingsomeoftheseconcepts,you’llbeabletoenhanceyourabilitytobeanadvocateforthepet’sbestinterest.

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Caring For ClientsIngeneral,whatdoyouknowaboutthepetownersthatcometoyourpractice?Manyveterinaryhealthcareteammembershaveonlyavagueunderstandingandappreciationofwhypetownersvisittheirpracticeversussomeplaceelse.Clientrecordsconcentrateonthepet,notthepetowner.So,whilewhatwedoinveterinarypracticeisonand/ortothepet,wemustrememberthatwhatwedoisforthepet,petownerandtheirfamily!

Veterinarypracticesarefrequentedbyavarietyofnotonlypets,butpetowners.Whileitwouldbewonderfultounderstandalltheperspectivesofeachclientasanindividual,forourpurposeshere,we’llmentionthreegeneralgroupingsthatmostpeoplefitinto.Thisisnottosuggestthatyou,inanyway,pre-judgeanypetowneronhisorherwillingnesstopayforoptimalveterinarycare.Itishowever,importantthatyouandtheothersonyourhealthcareteamunderstandwhatyoucollectivelyvaluein“ideal”clients,thenworktowardscreatingmore.

Whataretheattributesyouandotherhealthcareteammembersappreciateinclients?Whatcharacteristicsaredeemed“ideal”--punctual,considerate,Bond-orientedwiththeirpets,friendly,referothers,paypromptly,loyaltotheprac-tice…?Areyouallinagreementwitheachattribute?Afterdevelopingalistofthesequalities,whatpercentofthepractice’scurrentclientbasefitthis“Ideal”category?Whydoyouthinkthisis?

Whatabouttherest?Therearetwoothergeneralcategoriesclientsmightbegroupedin:“Neutral”and“Challenging.”

AllthreetypesaredepictedinFigure1.Yourprogressissaved. Slide 3 of 14

During a team meeting, discuss the attri-butes that are most desirable of clients

Figure 1. Three general client groupings, Ideal, Neutral and Challenging.

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Neutralclientsmightbeconsideredasthosepeoplewhoutilizesomeofyourproductsandservices,butusuallytoalimitedextent.Doyouandyourteamknowwhy?Isitthattheseclientsdon’tknow,don’tcare,areconfused,concerned…?Whatpercentofyourcurrentclientbasefitsthiscategory?

Challengingclientsmightbethosepetownersthatconstantlycomplain,makeexcuses,don’tfollowdirectionsoradvice…butseemtotakeupaninordinateamountofthehealthcareteam’stime,patienceandenergy.Whatpercentofyourcurrentclientbaseseemtofitthiscategory?Why?

Youandyourhealthcareteamareencouragedtotryandunderstandyourclientbasebetter,andonacontinualbasis.Thistypeofexercisewillbeespeciallyimportantindefiningwhattheteamfeelsismostimportantinclientrelations,andincultivatingmore“Ideal”clients.Themoreyouknowabout“Ideal”clients,themoreyoucanapplyyourunderstandingintransitioningmore“Neutral”andsometimes“Challenging”clientsinto“Ideal”ones.Indoingso,you’llbemoreproductiveand,nodoubt,enjoyyourinvolvementinveterinarymedicinetoanevengreaterextent.

VariousstudieshavedescribedaphenomenoncalledtheParetoPrinciple,or“80/20Rule”,where~80%ofabusiness’revenueisderivedfrom~20%ofthecustomerbase.Inthecaseofveterinarypractices,the20%areoftentimestheclientsthatarethemostwillingtoacceptrecommendationsofproductsandservicesforthepet’sbestinterest.Theyappreciateandrelyonthetrustedguidance(reinforcingtheveterinarian’ssuggestions)fromtheveterinaryhealthcareteam.Thatiswhyitissoimportanttobecompetentintheproductsandservicesyouprovide.Byunderstandingmarketingandmerchandisingmore,you’llappreciatehow,whenappliedappropriately,theycanenhanceyoureffortstobeanadvocateforthepet’sbestinterest.

A main definition of “client” is “depen-dent.” Clients ARE dependent on you for advice on proper pet nutrition, and to provide the appropriate products.

Yourprogressissaved. Slide 4 of 14

Caring For Clients

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Somepeoplewonderhowmarketingandmerchandising“fit”inveterinarypractice.Usually,thisisbasedonmisunderstandingthedefinitions,orconfusionastotheappropriateintent.Onthesurface,thesewordsmaynotappearpracticerelated,butasyou’llsee,theyareintegralinconveyinggreatmedicine,whichinturnisgreatbusiness.

Thereareamyriadofdefinitions,descriptionsandnuancesregardingthemeaningsof“marketing”and“merchandising.”Herethough,we’lldiscussafewpertinentonesrelatedspecificallytopromotingproperpetnutritioninpractice.Marketing

ThePrinciplesofVeterinaryMedicalEthicsoftheAmericanVeterinaryMedicalAssociation,GlossaryXI,containsadefinitionfor“marketing.”Inessence,“marketing”involvesencouragingpetownerstouseveterinaryservicesANDproducts,forthebenefitoftheirpet’swellbeing.

Manyclients“don’tknowwhattheydon’tknow”regardingpetcare.Theyoftentimesassumetheyaredoingtherightthingwhentheypurchasepetrelateditemsfromplacesotherthanaveterinarypractice,especiallywhennooneinthepracticetakestimetoask.Thisisparticularlytrueregardingpetfood!Somepeopleinpracticesay,“Idon’twanttobeapetfoodsalesperson.”Agreed!However,thereisaconsiderabledifferencebetween“sellingfood”and“promotingproperpetnutrition.”Knowingtheimportancenutritionplaysinwellnessanddisease,itreallybecomesourobligationtohelpthepetownerandthepet,bydiscussing,recommendingandprovidingtheappropriateproducts.In“marketing”Hill’s®petfoodproducts,yourpracticeisabidingbytheethicaldefinitionoftheAVMA,bypromotingandencouragingproductsthatimproveanimalhealth.

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Feline dentition and tooth structures are typical of carnivores.

Definitions

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DefinitionsMarketing,whenconductedappropriately,isnotsimplytalkingaboutproperpetcareandhopingthepetownersagree,resultinginthepurchaseofsomeofourproductsandservices.

Strategically,marketingcanbeviewedas:

The concepting, planning, implementation, continual refinement and review of carefully developed communications, which build productive and mutually beneficial relationships with pet owners.

ThiswillbereinforcedinLevelsIIandIII.Forthetimebeing,itisimportanttorealizethatmarketing,whendonecorrectlyinvolvingtheentirehealthcareteam,isaplanningandimplementationprocessdesignedtoachievespecificresults.

Marketingreflectsthevaluesofthepracticeownersandhealthcareteam.ItisTHEwayofproviding,withintegrity,theproductsandservicesyouandtherestofyourhealthcareteambelieveenhancepetwelfareandresponsibleownership.Obviously,properpetnutritionplaysanintegralpart,andclientsneedtoappreciatethisinordertomakeaninformedbuyingdecision.

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Yourprogressissaved. Slide 7 of 14

Definitions

Merchandising = “Visible Voice”

MerchandisingThePrinciplesofVeterinaryMedicalEthicsoftheAmericanVeterinaryMedicalAssociation,GlossaryXI,alsocontainsadefinitionfor“merchandising.”Basically,“merchandising”couldbeviewedasveterinarianssellingproductsand/orservices.

Merchandising,asitrelatestoproperpetnutrition,couldbethoughtofas:

Creating a practice environment conducive to effectively communicating product benefits, that results in the client purchasing the product from the practice.

Ifthereisambivalenceonthepartofthehealthcareteamregardingtheproductsthepracticecarries,theproductsarenotdiscussedmuchwiththeclientsorusedconsistentlybytheteammembersorforhospitalizedpatients,arenotpresentedinanappealingway,(clean,neat,properlystockedanddisplayed,ancillarymessagingandsignagecurrent…),whywouldaclientevenwanttotrytheproduct?Productsdonotsellthemselves.Yourbeliefandabilitytoeffectivelypresentthemtopetowners,insuchaconvincingwaythatpromotestheirbenefits,iscriticaltoclientacceptance.

Merchandisingcouldbethoughtofasanopportunityto“showandtell,”a“visiblevoice,”thatconveysintegrity,caringandbenefitstopetowners.

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Indiscussionsinvolvingthepotentialpurchaseofanyproductorservice,healthcareteammembersshouldbecognizantofwhatleadsaclienttosay“yes”totherecommendation.Akeyfactorisveryoftentheperceivedbenefitsforthepet,andthereforethepetowner.Oftentimesthough,teammembersfocusprimarilyonthefeaturesofaproductorservice.Let’sexaminethedifferences.

Simplyput,afeatureisacharacteristicofsomething,whereasabenefitisanadvantageasaresultofthefeature.

Ifonlyfeaturesarediscussed,theclientislefttotryandconvertlogicalinformationintowhattheresultingbenefitsmightbe.Theydothis,asdoallofusasconsumers,byasking(usuallytothemselves),“Sowhat?”Inessence,“WhatISthebenefit?”Ifthisisn’tanswered,fromahealthcareteammemberorfromeffectivemerchandising,thepetownerusuallyendsup,“havingtothinkaboutit.”

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Believing In The Benefits

______ (feature), resultsin ______ (benefit).

Feature Logic Thought Hesitation

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Onbehalfofpetsandpetowners,wehaveanobligationtoassistclientsinthisprocess,bymakingthe“benefits”known.Benefitsaretheoutcomeofasking“sowhat?”aboutthefeature.Benefitsarethe“advantages”thefeaturesprovide.Thisprocessinvolvesemotion.Thinkaboutyourownexperiencespurchasingitems:Clothes,nicemeal,concerttickets…Mostofthetime,we“buy”onemotion,(justify)THENbackupthedecisionwithlogic,(rationalize).

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Believing In The Benefits

A “spay” operation involves removing the ovaries and uterus “So what?”

A dental prophylaxis removes tartar. “So what?”

Strategic deworming helps minimize environmental contamination of certain parasites.

“So what?”

Our practice has separate dog and cat reception areas “So what?”

Prescription Diet® Canine t/d® pet food has a unique fiber matrix. “So what?”

Prescription Diet ® Feline k/d® pet food is very low in phosphorus. “So what?”

Science Diet® Puppy Large Breed pet food has controlled levels of calcium “So what?”

Science Diet Hairball Control Formula Adult cat food has unique shaped kibbles with special natural vegetable fibers

“So what?”

Figure 2. Examples of “features.” Note: To be helpful for clients, features need to be converted into benefits, by answering, to the client’s satisfaction, “So what?

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Thisiscriticaltounderstand.Whenwetrytoconveytheimportanceofproperpetnutrition,weneedtohaveasmanyofthe“sowhats?”answered(thoughbenefits),sothepetownerismuchmorecomfortableandlikelytotakeourrecommendation.Mostclientstrustandtakeforgrantedthathealthcareteammembersknowthefeatures(logic)ofaproductorservice.Petownerswanttofeelcomfortablethatthebenefits(invokingemotion)areappropriatefortheirsituation.Purchasing“peaceofmind”isapowerfulincentiveforallofus.Marketingandmerchandisingcanhelpyouconveymessagesrelatedtothepet’sbestinterest.Figure3revisitstheservicesandproductslistedinFigure2,convertingfeaturesintosomeofthepossiblebenefits.Mostproductsandserviceshavemultiplebenefits.

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Believing In The Benefits

Spay (uterus and ovaries removed)

Dental prophy (remove tartar)

Strategic deworming (minimize fecal contamination)

Separate dog and cat reception areas

Prescription Diet® Canine t/d® pet food has unique fiber matrix.

Prescription Diet® Feline k/d® pet food is very low in phosphorus.

Science Diet® Puppy Large Breed pet food has controlled levels of calcium

Science Diet Hairball Control Formula Adult cat food has unique shaped kibbles with special natural vegetable fibers.

“Edible toothbrush” reduces malodor

Decreases possibility for zoonotic (human infection)

Pets and owners are more at ease, less anxiety

Cat feels better from reduced workload on the kidneys

Healthy joint and bone development so important in large breed dogs

Helps cat’s digestive track to minimize vomiting of hairballs

Temporarily controls mal-odor (bad breath).

Minimizes certain cancers, as well as pregnancies

Figure 3. Features > “So what? > Benefits

Feature BenefitSo What?

Benefit Emotion Decision Purchase

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Manyinbusinessmistakenlybelievethatpeoplepurchaseitemsbasedprimarilyonprice.Inreality,mostbuyingdecisionsaremoreinvolved,sincewhatapotentialpurchaserisreallylookingforis“value.”

Iftherealorperceivedbenefitsaredesired/appreciated,pricebecomeslessandlessofanissue.But,ifallthepersonknowsisthemonetarycost(price),that’stheonlyinformationthatthedecisionisbasedon.Sincethatinvolveslogic,thereneedstobeathoughtprocess(time).Yourbeingabletoconveybenefitswillhelpthepetownermakeamoreinformeddecision,onethatinvolvesemotion.Theiractionwilleitherbeapurchaseornot.Ifthereisnopurchase,atleastthedecisionwasmadebasedonthebenefitstocostratioasjustification,notsolelyonprice.

Manyunsuccessfulsmallbusinessestakeaneasy,butdetrimentalapproach,byjusttryingtoreduceorkeeppricesdown.Don’tfallvictimtosuchamistake.Increasebenefits!

Thekeytosuccessfulmarketingandmerchandisinginaveterinarypracticeisto,asateam,knowandbelieveinyourproductsandservicessuchthatyouareallabletopromotethebenefits.Thisisdonethroughthepowerofmerchandising(“visiblevoice”),whichthenencouragesdialoguewiththeclient.

Yourprogressissaved. Slide 11 of 14

Value

Price becomes the issue, only in the absence of benefits.

If you gain a client based on “low price,” you’ll most likely lose that client to a lower price somewhere else. Are those your “Ideal” clients?

Value =Benefits

Price

Value = Benefits

Decrease Price

Price Value = BenefitsIncrease Benefits

Price

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Everypracticeteamwantstoenhancethepractice’simage.Let’sseehowthiscanbeaccomplishedinregardstobeingadvocatesforthepet’snutritionalneeds.

Thinkofthemainareas,or“zones”inyourpractice,whereyoucanenlightenpetownersonthebenefitsofproperpetnutritionwithconsistentmessaging.Forourdiscussionhere,we’llfocusonsixsuchareas:

• Outsidethepractice• Reception• Lobby• Weightscalearea• Examroom• Treatment/Boarding/Storage

1. Outside the practice. Youwantpetownerstoknowyoubelieveintheimportanceofproperpetnutrition.AftercompletionoftheentireVNA,you’llreceivesomestaticwindowsdecalsstating:NutritionalAdvocateonSite.Fornow,though,aneffectivewayofcommunicatingnutritioncouldbewithasignorbanner.SeeFigure4.

Figure 4. Outdoor Banner

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Putting It All Together

We Feed & Recommend

Science Diet®

Superior Nutrition for the Lifelong Health of Your Pet®

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2. Reception.Oftentimes,therearetoomany“messages”(countercards,pam-phlets…)clutteringupthereceptionarea.Trytoconveyfocusedideas,asshowninFigure5.

3. Lobby. Thisisanimportantareaforpetownerstoseeandideallyhandleprod-ucts.Hill’spackagingisvery“userfriendly,”andyoushouldencourageclientstolookattheproductinformation(manybenefitsarelisted).Effective,“inviting”signageisalsohelpfultoinitiatedialogue.

4. Weight Scale Area.Sincethetopicof“properweight,”(obesitypreventionandmanagement)issoimportanttopethealth,conveyingyourconcernthroughmes-saginghelpsopenupthediscussion.

5. Exam Room.Itisimportanttoconveytheimportanceofproperpetnutritionwithoutoverwhelmingpetowners.Studieshaveshownthatclientsonlyremem-berasmallpercentageofwhattheyweretoldintheexamroom.Ontheotherhand,theirretentionandappreciationofbenefitscanbeincreasedwithappropri-ateprintedmaterials.Pointoutspecificinformation(benefits)relevanttothemandtheirpet,andbesureyourteamagreeswiththeinformationpresentedinmaterialsfromcompanies.

6. Treatment/Boarding/Storage.Other“zones”ofyourpractice,whilenotal-waysaccessibletoclients,shouldcarryaconsistentmessage.Aretheproductsneatlystored?DoallmembersofthehealthcareteamfeedaHill’s®producttotheirownpets?AreHill’s®productsfedtoboardingandhospitalizedpets?

Figure 5. Promoting proper oral care in the lobby. Courtesy of Westridge Animal Hospital, Topeka, KS

Figure 6. Encourage pet owners, including children, to look at your products.

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Putting It All Together

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Marketingandmerchandisingarecriticalelementsofpromotingthespecialqualitiesofyourteam,andtheproductsandservicesyoubelievein.Whatsetsyouapartfromotherpractices?Doyou“walkyourtalk”inthemessagesyouprojecttoclients,andotherpetownersinyourcommunity?

Understandingtheimportanceofproperpetnutrition,alongwithconveyingtheimportance,withconsistentverbaland“visualvoice”means,willenrichyourinvolvementinveterinarymedicine.EnjoyapplyingpropermarketingandmerchandisingconceptsinvolvingHill’s®petfoodproducts,aswellastootherproductsandservicesyouprovide.Seehowyoucanenhanceyourabilitytohelpthepetsandpeopleyouserve!

Tocontinue,youwillneedtocompletethequizforthismodule.Whenyouareready,clickontheforwardarrowbelowtotakeyoutothequiz.

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Summary

AreYouReady?

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VNA Level I Module 10: Marketing and Merchandising