Target Marketing Strategies for Occupational Therapy Entrepreneurs.

Target Marketing Strategies for Occupational Therapy

Lisette N. Kautzmann, EdD, OTR, FAOTA Frank N. Kautzmann, MBA, P h D

Frederick H. Navarro, MA

SUMMARY. Understanding marketing techniques is one of the skills needed by successful entre renews. Target marketing is an effective method for occupations l' therapy entrepreneurs to use in determining when and where to enter the marketplace. The two componenG of target marketing, market segmentafion and the development of marketin mix strate ies for each identified market segment, are describeb: The F'rofife of Attitudes Toward Health Care (PATH) method of psychographic market segmentation of health care consumers is presented. Occupational therapy marketing mix strategies for each PATH consumer group are delineated and compatible groupings of market segments are suggested.

To compete successfully in the health care marketplace, occupational therapy entrepreneurs need to understand and use marketing skills. Successful entrepreneurs have the ability to identify and ex-

Lisette N. Kautzmann is Assistant Professor in the Department of Occupa- tional Therapy, Eastern Kentucky University, Richmond, KY 40475.

Frank N. Kautzmann is retired from the Department of Marketing, University of Wisconsin-Whitewater.

Frederick H. Navarro developed the PATH market segmentation typology. He is a market research consultant and President of Consumer Insights, 185-8 Wood- land Avenue, San Rafael, CA 94901.

This article appears jointly in Occupational Therapy: Program Development for Health Promotion and Preventive Services (The Haworth Press, 1989) and Occupational Therapy in Health Care, Volume 5 , Number 4 (1989).

O 1989 by The Haworth Press, Inc. All rights reserved. 39

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40 OCCUPATIONAL THERAPY: PROGRAM DEVELOPMENT

ploit new opportunities and convert them into viable enterprises (Kotler and Clarke, 1987, p. 118). Target marketing is a major tool for accomplishing this task since it allows entrepreneurs to spot market opportunities and make discrete adjustments of all components of the marketing mix to match the market needs and desires (Kotler and Clarke, 1987, p. 233). The purpose of this article is to discuss how occupational therapy entrepreneurs delivering services to health care consumers can use target marketing to enhance their practice.

BACKGROUND

Marketing is defined as human activity directed at satisfying needs and wants through an exchange process (Kotler, 1986, p. 757). The marketing exchange process is organized and struc- tured through a marketing plan. There are five components of a marketing plan: a situation analysis, identification of problems and opportunities based on information from the analysis, selection of target markets, development of marketing mix strategies for each targeted market, and monitoring. This discussion focuses on a method of identifying and selecting target markets and developing marketing mix strategies.

Target marketing is a useful technique because it provides information on where and how to enter the marketplace. There are two steps in target marketing: market segmentation and development of marketing mix strategies for each selected segment. Market segmentation provides information on where to enter the marketplace and marketing mix strategies provide a plan for how to enter it. Geographic, demographic, psychographic, and behavioristic variables are used to segment consumer markets (Kotler and Clarke, 1987, p. 236). Examples of geographic segmentation include states, cities, service areas, and neighborhoods. Demographic variables that are useful to occupational therapy entrepreneurs include age, diagnosis or DRG category, sex, type of health insurance, and income. Psychographic variables include social class and the life style components of attitudes, interests, and opinions. Consumer expectations and rate of health care consumption are examples of behavioristic variables.

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Kaulzmann, Kautzmann, and Navarro 41

The second step in the target marketing process is development of marketing mix strategies for each targeted segment. McCarthy and Perreault (1987, p. 37) describe the four components of the marketing mix as product, place, price, and promotion. The product component of the marketing mix includes the goods, services, or blend of these that meets the needs of the targeted buyer (Mc- Carthy and Perreault, 1987, p. 38). Goods and services are physical objects, persons, places, organizations, and ideas (Kotler, 1986, p. 296). The primary health care products are persons and services.

In the marketing mix, place refers to how and where the product reaches the targeted consumer (McCarthy and Perreault, 1987, p. 39). Price is the charge for goods and services (McCarthy and Perreault, 1987, p. 39). Promotion is communication of information between the seller and the buyer (McCarthy and Perreault, 1987, p. 745).

Promotion is how occupational therapy entrepreneurs tell targeted consumers about their product, place, and price. Promotion includes personal selling, mass selling, and sales promotion. Per- sonal selling is face-to-face communication between the seller and buyer (McCarthy and Perreault, 1987, p. 744). This is the form of promotion that is used most frequently by occupational therapists. Mass selling encompasses both advertising and publicity. Advertis- ing is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor (McCarthy and Perreault, 1987, p. 737). Publicity is defined as any unpaid presentation of ideas, goods, or services (McCarthy and Perreault, 1987, p. 45). Sales promotion is the use of short term incentives to encourage the purchase or sale of a product or service (Kotler, 1986, p. 760).

DISCUSSION

One recently reported method of market segmentation, Profiles of Attitudes Toward Healthcare (PATH), provides information on where occupational therapy entrepreneurs can enter the marketplace (Marketing News, 1987). PATH is a psychographic segmentation based on data obtained through a telephone survey of 2000 health care consumers. These consumers were selected from 10 broadly based geographical regions. PATH psychographics identify con-

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sumers' orientations to health care that influence their health care decision making.

Consumers were questioned on the following topics: health em- phasis and involvement, propensity to experiment with health care alternatives, involvement in decision making in the choice of health care service, propensity to avoid health care, attitude toward medical professionals, family centeredness, health care information seeking habits, receptivity to health care advertising, propensity to plan for the future, health apathy (level of health involvement), and pricelquality consciousness (Navarro, 1987).

Responses to the topics delineated in the above paragraph were used to group consumers into nine market segments. The nine market segments were given labels that summarize their dominant traits: Quality-Minded, Family-Centered, Loyalist, Ready-Users, Independently Healthy, Naturalists, Clinic Cynics, Avoiders, and Generics. (See Tables 1 and 2.) These market segments are clus- tered around consumers' shared values, attitudes, and behaviors related to health care (Navarro, 1987). The nine identified market segments represent up to 85 percent of health care consumers in local markets (Navarro, 1987). Since the statistical analysis of Navarro's survey validated that all nine segments are represented in local markets, occupational therapy entrepreneurs can use the PATH information and accompanying marketing mix strategies as a guide to decision making about where and how to enter the marketplace. The discussion below includes a description of the nine PATH profiles and suggested occupational therapy marketing mix strategies for each of the nine segments.

MARKET SEGMENTS AND OCCUPATIONAL THERAPY MARKETING MIX STRATEGIES

Segment 1: Quality-Minded Consumer

This segment is composed of from 8.5 to 11.1 percent of the health care consumers in a market. These consumers want high quality, traditional medical care. They are strongly influenced by physicians and are willing to pay for care. These consumers do not

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ffiutzmann, Kaulzmann, and Navarro

nble 1.

PA?H Consuners' Orientation to Health Care

Categories of O o n m r Orientations to Health Care

CXlslity Minded X X

Ready Users X X X

Loyalists X X X

Generics

Family Centered

Indeperdently Healthy X X X X X

Naturalists X X X X

Clinic Cynics X

Avoiders X

Qltegory 1: Stmngly influenced to seek traditional health care

ategory 2: Seeks alternative form of health care

Category 3: mtiwted to participate in health-related activities or to seek health care

ategory 4: Interested in fitness and eporta activities

ategory 5: Interested in mtrition

ategory 6. Cost conscious

ategory 1 : lrbtiwted to gather health care infomution Occ

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a b l e 2.

PATH Consunera' kmgmphic and Socioeronanic Chnracteristics

Omracteristics PATH m n t s

Sex

Famle 48.7% 72.8% 48.6% 48.3% 54.9% 38.4% 66.9% 49.0% 42.6%

b l e 50.3% 27.2% 51.4% 51.7% 45.1% 61.6% 33.1% 51.0% 57.4%

k e 59.5 51.6 41.9 43.1 38.6 38.1 45.3 42.6 46.3

Olildren 5.7% 11.8% 25.0% 20.4% 48.3% 21.3% 26.5% 34.0% 14.9%

ZWer 5

Incam 15.100 15.800 14.000 12.500 11.800 16.300 12.700 13.300 15.700

Per Oapita

-- - -- - - -

Se@m~t 1: Qmli ty Minded

SegQlent 2: Ready Users

Segment 3: Loyalists

Segmmt 4: Generics

Seglaent 5: Pmily Centeced

Sep~nent 6 : independently Walthy

S e p n t 7: tkturaliats

SeQInent 8: Clinia Cynica

Se@mt 9: Avoiders

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Kautzmann, Kaufzmann, and Navarro 45

compare services or cost and have preconceived ideas about who offers the best services (Marketing News, 1987).

Women make up 50.3 percent of this group and 49.7 percent are men. This is the oldest consumer group. Their average age is 59.5 years. Many of these consumers are widows and only 5.7 percent have young children. Their per capita income is $15,000 (Navarro, 1987).

Occupational Therapy Marketing Mix Strategies

Product. In developing marketing mix strategies related to product, occupational therapists should focus on providing traditional, physician referred services as outlined in the American Occupa- tional Therapy Association (AOTA) Uniform Terminology for Re- porting Occupational Therapy Services (AOTA, 1979). Occupa- tional therapy entrepreneurs targeting this consumer group should be highly credentialed in at least one specialty area.

Place. It would be advantageous to provide services in proximity to prestigious health care facilities or providers. Location in a hos- pital, clinic, medical office building, or physician's office is suggested.

Price. Price is not a factor with this market segment. These consumers carry health insurance and are willing to pay for high quality care. However, since many of these consumers are 65 and over, therapists need to be aware of Medicare rules, regulations, and re- strictions related to reimbursement.

Promotion. The primary focus of personal selling efforts should be directed toward referring physicians, since Quality-Minded consumers rely on physicians to direct their involvement in health care services. Since many consumers in this segment are older adults, consideration should be given to participation in educational activities sponsored by established, trusted community groups such as savings and loan institutions, retirement communities, churches, hospitals, and local senior citizens groups. Although this group is heavily influenced by physicians, participation in medically-oriented health fairs has the potential to orient Quality-Minded consumers to occupational therapy services.

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Several types of advertising should be pursued. Listings in the telephone directory yellow pages and in local directories of providers of medical services promote an image of authenticity and credibility. The use of modest ads in special publications, such as magazines published by local savings and loan institutions for pass- book customers, should be tried and the results monitored. A bro- chure is another acceptable method of informing this market segment of occupational therapy services.

Sales promotion usually is not an effective method of reaching this market segment because Quality-Minded consumers do not re: fer themselves for medical care. Thus, they would not take advantage of promotional offerings.

Segment 2: Ready- Users

From 10.4 to 13.2 percent of the health care consumers are Ready-Users. Ready-Users are highly motivated to use medical services. Expense is not a consideration for this consumer group. Its members value good nutritional habits and generally are not fitness oriented (Navarro, 1987). This is a receptive market segment that listens to advice, can be reached through ads, and is responsive to a nutritional/wellness focus (Marketing News, 1987).

Women dominate this market segment. The Ready-User profile indicates that 72.8 percent of these consumers are female and 27.2 are male. The average age for this consumer group is 51.6. Their per capita income of $15,800 is the second highest and 11.8 percent of this group have children under five (Navarro, 1987).


Product. Since this group is motivated to seek medical care, occupational therapy entrepreneurs should provide traditional, physician-referred services. Therapists can take advantage of this market segment's interest in nutrition and wellness by offering prevention and health education services. Consideration should be given to providing prevention and health education services to other family members as well as the Ready-User consumer.

Place. Service delivery should be located in a site associated

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Kautzmann, K a u t m n n , and Navarro 47

with medical care. In addition, health maintenance organizations' (HMO's) wide range of services are appealing to these consumers. Thus, consideration should be given to establishing contractual relationships with an HMO. An excellent informational packet has been developed to assist occupational therapists in marketing their services to HMOs (Holmes, 1987).

Price. This consumer group has health insurance. Due to the high value Ready-Users place on medical care, additional, uncovered medical expense is not an issue. Promotion. Personal selling efforts should be directed toward es-

tablishing referral relationships with physicians that traditionally refer patients to occupational therapy. Occupational therapy entrepreneurs can promote their prevention and health education services directly to Ready-User consumers through participation in forums and workshops that are focused on health issues for women and children, presentations to PTA groups, early childhood screenings, health fairs, and other health education activities.

Ready-Users are highly responsive to information and advertising. Informational materials should be developed that describe each of the prevention and health education programs. When services are provided through clinics, HMOs and other agencies, therapists should ensure that their name and services are included in ads and promotional literature listing services or service providers. Listings in the telephone directory yellow pages under "occupational therapy" and "rehabilitation services" and in directories of health care providers are methods of drawing Ready-Users' attention to the services provided. These directory ads are useful in reinforcing attention to the services provided. Consideration should be given to placing ads in the Lifestyle sections of local newspapers to promote prevention and health education services. Small ads, that are re- peated consistently, have more impact than one large ad.

Segment 3: Loyalists

From 10.9 to 13.7 percent of health care consumers are Loyal- ists. This market segment is similar to the Ready-Users in that they are willing to use medical services for any ailment and receive regu- lar check-ups. They are loyal to their health care providers. As a

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result, they do not compare providers or services and do not seek out health care information or alternatives (Navarro, 1987).

The percent of females in this group is 54.9 and the number of males is 45.1. The average age is 36.6 and percent of consumers with children under five is 48.3. This is the youngest consumer group and the group with the most children under the age of five (Navarro, 1987).


Product. This market segment is interested in traditional medical care. To reach this group, therapists need to provide services de- scribed in the Uniform Terminology for Reporting Occupational Therapy Services (AOTA, 1979).

Place. Locating in a clinic, HMO, physician's office, or medical building is advantageous because of the proximity to potential referral sources.

Price. This group of consumers values health care. They have health insurance and are willing to pay non-covered costs for traditional services.

Promotion. Referrals are the only way to access this market segment because Loyalists do not seek information on health care.

Therefore, promotional efforts should be targeted to potential referral sources. In addition to physicians and HMOs, which are the primary referral sources, consideration should be given to establishing referral relationships with other health professionals including physical therapists, speech pathologists, nurses, social workers, and psychologists.

Segment 4: Generics

From 7.5 to 9.9 percent of the health care consumers are in this market segment. Generics are interested in balancing quality and cost of health care. As a result, these consumers shop for low- priced health care and experiment with alternative methods of health care delivery (Navarro, 1987).

In this group, 42.6 percent of the consumers are female and 51.7

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Kautzmann, Kautnnann, and Navarro 49

percent are male. The average consumer age is 43.1 years. The per capita income for this group of consumers is $12,500. This is the second lowest income level. The percent of consumers having children under the age of five is 20.4 (Navarro, 1987).

~ccu~ational Therapy Marketing Mix Strategies

Product. Occupational therapy entrepreneurs interested in targeting this market segment should plan to provide two types of services. These include traditional, physician-referred services and prevention and health education programs.

Place. These consumers try to balance quality and cost of care. Therefore, HMOs' multiple, prepaid services are very attractive to this market segment. Mall locations and walk-in clinics also have the potential to attract these consumers.

Price. The Generics market segment is highly conscious of price. Therefore, a prominent display of services and related charges is recommended.

Promotion. Referral relationshivs should be established with physicians and other health care prdfessiona~s. Since many of these consumers will be self-referred, participation in community health education activities is recommended. Media coverage of thk health education and prevention programs should be sought, because it is an effective method of informing this market segment of occupational therapy services.

Mass selling and sales promotion also are effective methods of attracting this market segment. Occupational therapy entrepreneurs should purchase listings and supporting ads in telephone directory yellow pages and directories of health care providers. Informational sheets, describing prevention and health education services and programs, should be developed for distribution. Since this group is responsive to sales promotion activities, small ads in local newspapers and flyers which describe sales promotion incentives are suggested. These incentives should be linked to prevention and health education programs and could include introductory offers and coupons.

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Segment 5: Family-Centered

The Family-Centered market segment comprises from 7.5 to 9.9 percent of health care consumers. These consumers place high value on family health and actively search for methods to enhance it. They are somewhat suspicious of medical authorities. Family- Centered consumers are moderately interested in seeking out information on health care. They are a market segment that is willing to compare providers and services (Navarro, 1987).

The Family-Centered Profile indicates that 54.9 percent of these consumers are women and 45.1 percent are men. Their average age is 36.6 and their per capita income is $11,800. In this consumer group 48.3 percent have children under the age of five. They are the youngest and poorest market segment and have the most young children (Navarro, 1987).


Product. The occupational therapy product mix should include traditional, physician-referred services as well as prevention and health education programs. Occupational therapy entrepreneurs that target this market segment must be able to provide information and services to all family members.

Place. Since this market segment is rather suspicious of medical authorities, the place where services are provided should not be associated with traditional medical care. An office in a strip mall, or in association with a holistic health center are examples of nonmedical locations.

Price. Family-Centered consumers compare providers and services. Therefore, the charges for service should be competitive with those of other health care providers. Consumers should be in- formed, in advance, of the items included in each program or service.

Promotion. For this market segment, personal selling efforts should be directed at both referral sources and consumers. Occupa- tional therapy entrepreneurs need to establish referral relationships with family physicians and pediatricians in addition to physician specialists who usually refer patients to occupational therapy. Since

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Kautzmann, Kautzmann, and N a v a m 51

this market segment is suspicious of medical authorities, personal selling to Family-Centered consumers should be presented outside of the medical environment. Events sponsored by health food stores, fitness centers, nonmedical health fairs, and workshops offered through community colleges, the larger "family Ys," and shopping malls provide opportunities to inform Family-Centered consumers of occupational therapy services.

Since this consumer group compares services, promotional literature describing each program should be available for mail and for distribution during personal selling activities. Consideration also should be given to modest sales promotion activities, such as a cou- pon for informational literature or a free class. Direct mail lists of Family-Centered consumers can be generated through registration lists and sign-up sheets from community-based education activities. Occupational therapy entrepreneurs should list themselves and purchase ads in telephone directory yellow pages and other directories of health care providers. Specific programs or promotions should be publicized in small ads in local newspapers and in weekly community papers that usually are distributed free. Ads in newsletters and flyers from health food stores, Ys and other fitness centers are additional ways of informing this consumer segment of occupational therapy services.

Segment 6: Independently Healthy

From 10.4 to 13.2 percent of all health care consumers are in the Independently Healthy market segment. Independently Healthy consumers are fitness-oriented. They are interested in the long-term benefits of health care and will shop around for services and information. They are willing to experiment with nontraditional health care alternatives (Navarro, 1987).

This market segment is dominated by men. The Independently Healthy profile indicates that 38.4 percent of these consumers are female and 61.6 percent are male. Their average age is 38.1 years and per capita income is $16,300. This consumer group has the highest income of any of the PATH market segments. The percentage of Independently Healthy consumers that have children under the age of five is 21.3 (Navarro, 1987).

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Product. To appeal to Independently Healthy consumers, the occupational therapy product should include traditional, physician-referred services and individual consultation and classes in prevention and health education. Occupational therapy entrepreneurs that target this market segment need to have knowledge and experience in sports medicine. To be available to these consumers, therapists will need to work evenings and weekends.

Place. Service may need to be provided at several locations. Therefore, consideration should be given to establishing a central office for administrative tasks and arranging to use space for service delivery in other locations including sports medicine clinics, up- scale "Ys," health clubs, tennis and racket ball clubs, and fitness centers.

Price. Price is not a major consideration for this group. Promotion. Personnel selling efforts should be directed at referral

sources and consumers. Referral relationships should be established with physician and nonphysician specialists including sports medicine physicians, orthopedic surgeons, physiatrists, exercise physi- ologists, and physical therapists. Employees at the clubs and centers where service is delivered should be oriented to programs and services offered and a mechanism for referral established. Strate- gies to impact individual consumers are based on the assumption that Independently Healthy consumers will participate in sports and fitness activities. Therefore, they can be reached through fitness centers and health clubs.

Promotional materials designed for this market segment should be clean, and modern. Use of clear, strong colors, silver, black, and white and good quality paper are recommended. Placing ads in newsletters or bulletins published by health clubs, fitness centers, and health food stores is an excellent method of informing Indepen- dently Healthy consumers of occupational therapy services. Partici- pating in the sponsorship of runs and other athletic events positions occupational therapy entrepreneurs with other health professionals providing services to Independently Healthy consumers. Short radio spots, during morning and evening drive times, should be con- sidered as an additional means of calling attention to occupational

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Kautzmann, Kaurzmann, and Navarro 53

therapy services. Radio stations can provide information on listener demographics that can be matched with the Independently Healthy consumer profile.

Direct mail is an effective method of informing consumers of new programs and sales promotion incentives. Special introductory offers, free lessons, coupons for informational literature or free screening are examples of sales promotion incentives for Indepen- dently Healthy consumers. Mailing lists can be developed from club and fitness center membership lists. Publicity can be generated by writing news releases highlighting special programs. Contribut- ing articles and features to newsletters published by health and fitness centers and to other media calls attention to occupational therapy programs and services.

Segment 7: Naturalists

From 7.7 to 10.1 percent of the health care consumers are Natu- ralists. They are interested in health, nutrition, and fitness; however, they do not participate in sports. They tend io be skeptical of medical professionals and avoid predefined patterns of health care. They are the group that is most likely to experiment with alternatives to traditional health care (Navarro, 1987).

In contrast to the Independently Healthy market segment, the Naturalist segment is dominated by women. The PATH profile indicates that 66.9 percent of these consumers are female and 33.1 percent are male. Their average age is 45.3 years. Per capita income for this consumer group is $12,700 and 26.5 percent have children under the age of five (Navarro, 1987).


Product. Services to this market segment should focus on prevention and health education. Occupational therapy entrepreneurs targeting these consumers need to be available during evenings and weekends. Therapists should avoid wearing lab coats and other symbols of medical professions.

Place. Holistic health centers, women's centers, health food stores, and fitness centers are suggested locations for service delivery.

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Price. When services are provided through clinics and centers, fees for occupational therapy services need to be in line with those charged by other service providers.

Promotion. Promotional efforts to this market segment include personal selling, advertising, publicity, and sales promotion. Refer- ral relationships with co-workers in sewice delivery locations should be defined and sought. Personal selling activities should include participation in workshops and other educational events sponsored by the centers and businesses with whom occupational therapy entrepreneurs are affiliated. Personal contact with individual consumers is an effective method of presenting occupational therapy sewices to this market segment.

Many of the promotional activities for this market segment are similar to those suggested for the Independently Healthy consumers. Informational materials describing programs and services should be developed for distribution at the centers and clinics where service is provided, at educational presentations, and through direct mail. The design of the promotional literature and ads should be appealing to women. In addition to directory listings and advertising, entrepreneurs should ensure that their services are included in any informational literature developed by facilities where services are provided. Ads and feature articles in the newsletters and flyers published by associated centers and businesses are additional methods of interesting Naturalist consumers in occupational therapy services. Special programs and sales promotion incentives should be advertised in local newspapers and through direct mail. Examples of prevention and health education sales promotion incentives include a free class or screening, free health care literature or a free premium, and coupons for specific sewices.

Segment 8: Clinic Cp ic s

From 7.1 to 7.2 percent of health care consumers are categorized as Clinic Cynics. This market segment generally is distrustful and skeptical of the medical profession. These consumers believe that most medical professionals do not live up to their reputation as competent experts. However, they do use traditional medical services and tend to stay with the same provider rather than compare services or seek nonmedical alternatives (Navarro, 1987).

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Kautzmann, Kautzmann, and Navarro 55

Forty-nine percent of this market segment are women and 51 percent are men. Their average age is 42.6 years and per capita income is $13,300. Thirty-four percent of these consumers have children under the age of five (Navarro, 1987).


This market segment and segment nine "Avoiders" are very dif- ficult groups to influence. Clinic Cynics is the consumer group that is the most ske~tical of health care advertising and is unlikelv to be influenced by promotional activities. The regrral relationsGps established with physicians for other market segments are sufficient to gain access to this consumer group.

Segment 9: Avoiders

Avoiders constitute 8.6 to 11.2 percent of all health care consumers. Whenever possible, this group refrains from either seeking or using health care services. Of all of the market segments, this group is the least interested in health care. Avoiders have no interest in fitness, nutrition, or gathering health care information. The cost of health care is an issue with them (Navarro, 1987).

The Avoider profile indicates that 42.6 of these consumers are female and 57.4 are male. Their average age is 46.3 years and per capita income is $15,,700. The percentage of these consumers that have children under five is 14.9 (Navarro, 1987).


As indicated previously, this group of consumers is not responsive to marketing strategies. However, occupational therapists should be aware of these consumers and their psychographic char- acteristics.

CONCL USZONS

The PATH market segments can be organized into two groups, according to consumer preferences for traditional or alternative

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models of health care delivery. The traditional group includes the Quality-Minded, Ready-User, Loyalist, and Clinic Cynic market segments. Consumers that are willing to explore both alternative and traditional forms of health care include Generics, Family-Cen- tered, Naturalists, and Independently Healthy consumers. Thera- pists can target these segment groupings effectively because the groups a re compatible in the areas that a re the least flexible and require the largest outlay of financial resources: the product, the location of service delivery, and the referral sources. Specific promotional strategies still must be targeted to each defined segment; however, methods of implementing promotional activities are flexible and do not involve a long-term financial commitment.

Psychographic research indicates that health care consumers dif- fer. ~hus ,~occu~a t iona l therapy entrepreneurs can not use one marketing mix to successfully attract all segments of the consumer market. Target marketing provides a method for occupational therapists to discriminate between groups, select appropriate market segments, and establish a viable niche in the health care marketplace.

REFERENCES

American Occupational Therapy Association. (1979). Occupational therapy product output and uniform terminology for reporting occuparional therapy services. Rockville, MD: Author.

Holmes, C. (1987, August). Wisconsin OT marketing packet proves successful. Occupational Therapy News, pp. 9, 13.

Kotler, P. (1986). Principles of marketing (3rd ed.). Englewwd Cliffs, NJ: Pren- tice-Hall.

Kotler, P.. & Clarke, R. N. (1987). Marketing for health care organizations. Englewwd Cliffs, NJ: Prentice-Hall.

McCarthy, E. I., & Perreault, W. D. (1987). Basic Marketing (9th ed.). Home- wood, IL: Irwin.

Navarro, F. H. (1987). Profile of attitudes toward healthcare: Psychographic segmentation. Unpublished manuscript.

Psychographics help health marketers find and serve new market segments. (1987, April 24). Marketing News, pp. 4-5.

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Target Marketing Strategies for Occupational Therapy Entrepreneurs.

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