Interview with Don Marsh Siemens Hearing Instruments, Advertising, Marketing and Related Issues
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AO/Beck: Hi Don. It's a pleasure to catch up with you. I was very impressed with your presentation at the Siemens Business Development meeting in Chicago in May, 2001. I was hoping we could revisit some of those issues here tonight.
Marsh: Sure Doug, I appreciate the opportunity to speak with you.
AO/Beck: Let's start with a little about your education and professional background.
Marsh: I graduated from California State University at Northridge in 1972 with a BA degree in Journalism, with a public relations focus. My first few jobs were in fund-raising for non-profit organizations as both a staff person and a consultant.
In 1976, I did some political campaign work in Hawaii and while there, I met my wife, Ann. She was a graphic designer and I was a writer. We married and moved to San Diego in 1977. For 18 years we had our own business, doing marketing communications work mostly for hospitals and medical research facilities in town.
In 1995, I decided to write a book. The book had nothing whatsoever to do with hearing aids or audiology, but it was a lot of fun to write and it's done very well.
AO/Beck: I am familiar with the book and I have read it. The title is '101 Things You Can Teach Your Kids About Baseball.' It's a lot of fun and I heartily recommend it to anyone with children! In fact, I think the book can be obtained at Barnes and Noble, Borders and online at Amazon.com, too. How did you happen to write a book about baseball?
Marsh: I played baseball for 14 years and I coached for another 14 years. So I thought maybe I could offer some information to parents, coaches and kids on how to play the game. I also wanted to remind families about the common ground that baseball has provided so many generations in America. So I guess my love and knowledge of the game led me to write the book and other than being the father of three, it's the thing I'm most proud of in my life.
AO/Beck: Of course the connection between the baseball book and the topic at hand is marketing. In fact, I know you've done over a hundred radio interviews on the book, and I think some of that marketing expertise can be applied to audiology and hearing aids.
Marsh: Absolutely. I have done over 150 radio interviews on the book, dozens of book signings and speaking engagements, and some newspaper and television interviews as well. These opportunities have taught me quite a bit about how to market products and how to use the venues that are out there, readily available and often times, free.
AO/Beck: Well, with that as the introduction, let's talk a little about the specific application of these ideas as they relate to audiology and hearing aids. From a marketing viewpoint, and with the recent downturn in the hearing aid industry, what are the most common mistakes we're making?
Marsh: I think, from the perspective of the audiologist who's trained in the scientific aspects of their work, it's easy sometimes to think of their products as commodities. High-tech commodities, but commodities just the same.
And despite all the advances in technology in recent years in particular, I think that's a mistake. From a marketing standpoint at least, what hearing aids do for people is really not about the plastic and digital chips they're made of. It's about the quality of life improvement they can provide. This is what sets them apart from other products. And it's the service aspect, meaning the personal care that's given to each patient, that sets the audiologist apart from others in the marketplace.
I also think that this, meaning the quality of life issue, is something that's easier for the mature marketplace to understand than what makes them work in the first place. One of the more fascinating aspects of the aging process is that, over time, we become more 'right-brain' thinking, meaning more instinctive than logical in how we respond to things that impact our lives.
I'll use myself as an example: I'm fifty-one, and even though I've worked in the industry for five years I still don't fully understand how hearing aids work. But I can easily understand, as a parent and perhaps someday as a grandparent, how they can improve my life. It's an understanding based on instinct and emotion, not logic and intellect.
AO/Beck: I agree entirely. However, in most communities, there is quite a lot of competition. I know in Saint Louis, many of my patients bring in ads offering thousands of dollars in discounts off the list price of digital hearing aids, or they'll bring in advertisements promising to give them full credit regarding what they paid for their old hearing aids, off the price of their new digital hearing aids. Frankly, I think price is critically important to the patient and if you're in a private practice, and if the pricing issue is dominant in the local media, it seems like you need to be participate in the price oriented ads. However, having said that, I agree. In the long term, the big win appears to be more in the quality of life and the lifestyle issues. Better living through better hearing, so to speak.
Marsh: I realize it's easy for me to tell you or someone else not to compete on price. Many in our profession do, especially in certain marketplaces. I can tell you, however, that I used to be involved in a nationwide Focus Group program that involved several thousand patients and their families. When asked what was really important to them - Technology, Service or Price - fewer than 10% replied Price.
In general, competing on price encourages a 'Transactional Buying' pattern that commoditizes what you do and the products and services you have to offer. It gives people the sense that all hearing aids, and all audiologists, are the same. And once you've gone done that slippery slope, it's very hard to climb back up.
We also know that if we provide the quality of services we are capable of, patient satisfaction increases. I think you and Mark Ross were the authors of 'Expensive Hearing Aids: Investing in Technology and the Audiologist's Time' which stated there are many things professionals do to address the patient's needs, and importantly, you guys suggested that 'unbundling' is likely to reduce the amount of services the patient receives (see /newroot/resources/article/article.cfm?tid=103).
In fact, unbundling encourages the patient to shop around and simply buy the hearing aid at a given price and forget about the services! So in brief, unbundling encourages a transactional buying pattern, which is product based, not service based.
AO/Beck: So then, how should we be approaching the marketing and advertising of our services and products?
Marsh: I mentioned that I used to work in politics. Back then, the late Tip O'Neil, who was a Congressman from Massachusetts and Speaker of the House for many years, used to say, 'All politics is local'. I think that same idea holds true for our industry.
It really comes down to the individual proprietor and the understanding that each marketplace is unique. Therefore, the marketing of those products and services is local in its approach. As part of my job with Siemens, for example, I have the opportunity to work with individual accounts in customizing marketing communications to their marketplace. The strategies may be the same, but it's the tactics applied in each circumstance that make the difference.
AO/Beck: I understand. If our task is to focus on lifestyle, quality of life, service and quality, how do you get the patient to focus on those same issues? Seems to me they're still pretty much looking at the price, the discount and the coupons?
Marsh: Well, I take a different route on this issue. So much of the resources and energies spent on marketing and advertising in our industry are spent on acquiring new patients. Given the historical bias against wearing hearing aids, however, I think it's critically important to educate the patient first, before trying to 'sell' them. This is where Free Media programs come into play. News releases, interviews on local media and speaking engagements or other community outreach programs all help people understand who you are, what you do and how your products and services can benefit their lives.
Having done that first, I think the task of bringing people in the door then becomes that much easier.
I'll add that when I have the opportunity to work with accounts I counsel them to rely more heavily on patient-based marketing, not bringing new people into the office. Patient-based marketing is more successful and less expensive than prospect marketing and I think it's something that's often overlooked.
AO/Beck: Very good. Let's switch gears a bit. How about if I mention an advertising/marketing topic, and then you give me your thoughts on that topic?
Marsh: Sure, let's do it.
AO/Beck: OK, let's start with direct mail.
Marsh: Direct mail is the most targeted means of marketing available. It gives you the opportunity to control the message, who receives that message and when they receive it. And these days, with the advances in automation from the Postal Service combined with even the basic elements of Database Marketing principles, it becomes a very powerful tool for those who know how to use it correctly.
AO/Beck: The biggest cost associated with direct mail appears to be postage. How can you get the best postage rate?
Marsh: We just talked about automated mail. Years ago, there were basically only two rates for 3rd class mail: letter and flat, based on the size of the mailing piece itself. Now, with all the different sorts thrown into the mix there are dozens, based on how much time you can save the Postal Service in processing that mail. Each additional sort saves you money. They also help ensure the mail is in the mail box when you want it to be.
I'd encourage people to talk to their list brokers and/or Database managers to see how they can take advantage of all these new rates.
AO/Beck: Very good. Let's talk about radio advertising.
Marsh: I think radio advertising is effective only in very selective markets. Rural markets, for example, when other media are not so prevalent. It also can be effective when mixed with other media, such as direct mail.
Of course, the obvious issue with radio is that we're trying to attract a hearing impaired population to begin with.
Getting back to the issue of Free Media, here's an interesting fact about radio: Ten years ago there were only about 400 stations in the country with talk show formats. Today there are more than 1,000. A few are nationally syndicated but the majority are local shows, with the mission of finding interesting guests who can speak to issues that impact the lives of their target audiences.
There's no reason anyone cannot be one of those guests in their local markets. Having been on so many of them myself, I can tell you it's relatively easy to do. The interviews can be done by telephone, without even having to be in the studio.
I firmly believe that any form of Free Media, whether it's a radio or TV interview or even a news release, gives you added credibility that paid media usually do not. And like I said, it's free.
AO/Beck: OK. What about television?
Marsh: Television is, of course, a visual medium. Another interesting thing about people is that as we age our visual memory stays stronger longer than verbal memory does, so that works in TV's favor.
Effective TV ads do either of two things: They create identity or they move people to respond quickly.
I think over two-thirds of the country is now on some sort of local cable system and these can be less expensive to advertise on than over the air channels and you can often get your ads produced for free or at very little cost if you are a significant advertiser.
But having said all that, in most cases I don't think TV is a preferred medium for typical hearing professionals. I'd rather they invest their time, money and resources elsewhere first.
AO/Beck: What about newspapers?
Marsh: The last figures I read showed that five of every six hearing professionals prefer newspaper as their number one advertising medium, followed closely behind by direct mail. The overall growth in newspapers in recent years has been in suburban markets, with circulations in the range of 40,000 - 200,000. Notice how few major cities still have both a morning and afternoon paper. It's also possible to buy into 'Zoned' editions of the paper as well. Each of these factors can play into the hands of an audiologist who knows how to market.
The problem, however, is that they are the least specific in terms of the audiologist's Target Audience. Most newspapers have a relatively small population of mature marketplace readership, perhaps as low as 10% in some cases. That alone suggests that in order to be effective, you need to advertise more often. This is something referred to as 'Frequency' in the language of newspaper advertising.
And in measuring the possible impact of major media, keep these numbers in mind: The average mature marketplace person spends 161 minutes per day watching TV, 41 minutes per day listening to the radio and 34 minutes per day reading the newspaper.
AO/Beck: What about 'open houses?'
Marsh: Open houses are an historic way of marketing hearing aids, usually through a combination of direct mail, newspaper and telemarketing. I think they are right for some offices and not right for others.
AO/Beck: As you travel across the country, what are the biggest mistakes you see related to marketing and advertising within our profession and industry?
Marsh: I have the opportunity to make a lot of speeches at industry meetings and I like to make a joke of the fact that I'll consider my career a success if, when I leave the industry, I no longer see in newspaper ads, brochures or anywhere else pictures of the hearing aid in the patient's ear.
Again, it's not about the plastic and digital chips. It's about a quality of life. That's what makes the work done by people like you, Doug, so different. You have the opportunity to make a difference in the lives of others.
AO/Beck: Don, for the readers who would like to speak with you about their specific marketing plan and needs, how can they get in touch with you?
Marsh: Well, I do work for Siemens and people can reach me through Siemens at dmarsh@siemens-hearing.com or by telephone: 866-447-1411.
AO/Beck: Don, it's been a pleasure. I want to thank you and Siemens for allowing us to share these thoughts with the readers and I hope we get to spend some time together again soon.
Marsh: Thanks, Doug. I've enjoyed talking with you.
Click here to visit the Siemens Hearing Instruments website.
Marsh: Sure Doug, I appreciate the opportunity to speak with you.
AO/Beck: Let's start with a little about your education and professional background.
Marsh: I graduated from California State University at Northridge in 1972 with a BA degree in Journalism, with a public relations focus. My first few jobs were in fund-raising for non-profit organizations as both a staff person and a consultant.
In 1976, I did some political campaign work in Hawaii and while there, I met my wife, Ann. She was a graphic designer and I was a writer. We married and moved to San Diego in 1977. For 18 years we had our own business, doing marketing communications work mostly for hospitals and medical research facilities in town.
In 1995, I decided to write a book. The book had nothing whatsoever to do with hearing aids or audiology, but it was a lot of fun to write and it's done very well.
AO/Beck: I am familiar with the book and I have read it. The title is '101 Things You Can Teach Your Kids About Baseball.' It's a lot of fun and I heartily recommend it to anyone with children! In fact, I think the book can be obtained at Barnes and Noble, Borders and online at Amazon.com, too. How did you happen to write a book about baseball?
Marsh: I played baseball for 14 years and I coached for another 14 years. So I thought maybe I could offer some information to parents, coaches and kids on how to play the game. I also wanted to remind families about the common ground that baseball has provided so many generations in America. So I guess my love and knowledge of the game led me to write the book and other than being the father of three, it's the thing I'm most proud of in my life.
AO/Beck: Of course the connection between the baseball book and the topic at hand is marketing. In fact, I know you've done over a hundred radio interviews on the book, and I think some of that marketing expertise can be applied to audiology and hearing aids.
Marsh: Absolutely. I have done over 150 radio interviews on the book, dozens of book signings and speaking engagements, and some newspaper and television interviews as well. These opportunities have taught me quite a bit about how to market products and how to use the venues that are out there, readily available and often times, free.
AO/Beck: Well, with that as the introduction, let's talk a little about the specific application of these ideas as they relate to audiology and hearing aids. From a marketing viewpoint, and with the recent downturn in the hearing aid industry, what are the most common mistakes we're making?
Marsh: I think, from the perspective of the audiologist who's trained in the scientific aspects of their work, it's easy sometimes to think of their products as commodities. High-tech commodities, but commodities just the same.
And despite all the advances in technology in recent years in particular, I think that's a mistake. From a marketing standpoint at least, what hearing aids do for people is really not about the plastic and digital chips they're made of. It's about the quality of life improvement they can provide. This is what sets them apart from other products. And it's the service aspect, meaning the personal care that's given to each patient, that sets the audiologist apart from others in the marketplace.
I also think that this, meaning the quality of life issue, is something that's easier for the mature marketplace to understand than what makes them work in the first place. One of the more fascinating aspects of the aging process is that, over time, we become more 'right-brain' thinking, meaning more instinctive than logical in how we respond to things that impact our lives.
I'll use myself as an example: I'm fifty-one, and even though I've worked in the industry for five years I still don't fully understand how hearing aids work. But I can easily understand, as a parent and perhaps someday as a grandparent, how they can improve my life. It's an understanding based on instinct and emotion, not logic and intellect.
AO/Beck: I agree entirely. However, in most communities, there is quite a lot of competition. I know in Saint Louis, many of my patients bring in ads offering thousands of dollars in discounts off the list price of digital hearing aids, or they'll bring in advertisements promising to give them full credit regarding what they paid for their old hearing aids, off the price of their new digital hearing aids. Frankly, I think price is critically important to the patient and if you're in a private practice, and if the pricing issue is dominant in the local media, it seems like you need to be participate in the price oriented ads. However, having said that, I agree. In the long term, the big win appears to be more in the quality of life and the lifestyle issues. Better living through better hearing, so to speak.
Marsh: I realize it's easy for me to tell you or someone else not to compete on price. Many in our profession do, especially in certain marketplaces. I can tell you, however, that I used to be involved in a nationwide Focus Group program that involved several thousand patients and their families. When asked what was really important to them - Technology, Service or Price - fewer than 10% replied Price.
In general, competing on price encourages a 'Transactional Buying' pattern that commoditizes what you do and the products and services you have to offer. It gives people the sense that all hearing aids, and all audiologists, are the same. And once you've gone done that slippery slope, it's very hard to climb back up.
We also know that if we provide the quality of services we are capable of, patient satisfaction increases. I think you and Mark Ross were the authors of 'Expensive Hearing Aids: Investing in Technology and the Audiologist's Time' which stated there are many things professionals do to address the patient's needs, and importantly, you guys suggested that 'unbundling' is likely to reduce the amount of services the patient receives (see /newroot/resources/article/article.cfm?tid=103).
In fact, unbundling encourages the patient to shop around and simply buy the hearing aid at a given price and forget about the services! So in brief, unbundling encourages a transactional buying pattern, which is product based, not service based.
AO/Beck: So then, how should we be approaching the marketing and advertising of our services and products?
Marsh: I mentioned that I used to work in politics. Back then, the late Tip O'Neil, who was a Congressman from Massachusetts and Speaker of the House for many years, used to say, 'All politics is local'. I think that same idea holds true for our industry.
It really comes down to the individual proprietor and the understanding that each marketplace is unique. Therefore, the marketing of those products and services is local in its approach. As part of my job with Siemens, for example, I have the opportunity to work with individual accounts in customizing marketing communications to their marketplace. The strategies may be the same, but it's the tactics applied in each circumstance that make the difference.
AO/Beck: I understand. If our task is to focus on lifestyle, quality of life, service and quality, how do you get the patient to focus on those same issues? Seems to me they're still pretty much looking at the price, the discount and the coupons?
Marsh: Well, I take a different route on this issue. So much of the resources and energies spent on marketing and advertising in our industry are spent on acquiring new patients. Given the historical bias against wearing hearing aids, however, I think it's critically important to educate the patient first, before trying to 'sell' them. This is where Free Media programs come into play. News releases, interviews on local media and speaking engagements or other community outreach programs all help people understand who you are, what you do and how your products and services can benefit their lives.
Having done that first, I think the task of bringing people in the door then becomes that much easier.
I'll add that when I have the opportunity to work with accounts I counsel them to rely more heavily on patient-based marketing, not bringing new people into the office. Patient-based marketing is more successful and less expensive than prospect marketing and I think it's something that's often overlooked.
AO/Beck: Very good. Let's switch gears a bit. How about if I mention an advertising/marketing topic, and then you give me your thoughts on that topic?
Marsh: Sure, let's do it.
AO/Beck: OK, let's start with direct mail.
Marsh: Direct mail is the most targeted means of marketing available. It gives you the opportunity to control the message, who receives that message and when they receive it. And these days, with the advances in automation from the Postal Service combined with even the basic elements of Database Marketing principles, it becomes a very powerful tool for those who know how to use it correctly.
AO/Beck: The biggest cost associated with direct mail appears to be postage. How can you get the best postage rate?
Marsh: We just talked about automated mail. Years ago, there were basically only two rates for 3rd class mail: letter and flat, based on the size of the mailing piece itself. Now, with all the different sorts thrown into the mix there are dozens, based on how much time you can save the Postal Service in processing that mail. Each additional sort saves you money. They also help ensure the mail is in the mail box when you want it to be.
I'd encourage people to talk to their list brokers and/or Database managers to see how they can take advantage of all these new rates.
AO/Beck: Very good. Let's talk about radio advertising.
Marsh: I think radio advertising is effective only in very selective markets. Rural markets, for example, when other media are not so prevalent. It also can be effective when mixed with other media, such as direct mail.
Of course, the obvious issue with radio is that we're trying to attract a hearing impaired population to begin with.
Getting back to the issue of Free Media, here's an interesting fact about radio: Ten years ago there were only about 400 stations in the country with talk show formats. Today there are more than 1,000. A few are nationally syndicated but the majority are local shows, with the mission of finding interesting guests who can speak to issues that impact the lives of their target audiences.
There's no reason anyone cannot be one of those guests in their local markets. Having been on so many of them myself, I can tell you it's relatively easy to do. The interviews can be done by telephone, without even having to be in the studio.
I firmly believe that any form of Free Media, whether it's a radio or TV interview or even a news release, gives you added credibility that paid media usually do not. And like I said, it's free.
AO/Beck: OK. What about television?
Marsh: Television is, of course, a visual medium. Another interesting thing about people is that as we age our visual memory stays stronger longer than verbal memory does, so that works in TV's favor.
Effective TV ads do either of two things: They create identity or they move people to respond quickly.
I think over two-thirds of the country is now on some sort of local cable system and these can be less expensive to advertise on than over the air channels and you can often get your ads produced for free or at very little cost if you are a significant advertiser.
But having said all that, in most cases I don't think TV is a preferred medium for typical hearing professionals. I'd rather they invest their time, money and resources elsewhere first.
AO/Beck: What about newspapers?
Marsh: The last figures I read showed that five of every six hearing professionals prefer newspaper as their number one advertising medium, followed closely behind by direct mail. The overall growth in newspapers in recent years has been in suburban markets, with circulations in the range of 40,000 - 200,000. Notice how few major cities still have both a morning and afternoon paper. It's also possible to buy into 'Zoned' editions of the paper as well. Each of these factors can play into the hands of an audiologist who knows how to market.
The problem, however, is that they are the least specific in terms of the audiologist's Target Audience. Most newspapers have a relatively small population of mature marketplace readership, perhaps as low as 10% in some cases. That alone suggests that in order to be effective, you need to advertise more often. This is something referred to as 'Frequency' in the language of newspaper advertising.
And in measuring the possible impact of major media, keep these numbers in mind: The average mature marketplace person spends 161 minutes per day watching TV, 41 minutes per day listening to the radio and 34 minutes per day reading the newspaper.
AO/Beck: What about 'open houses?'
Marsh: Open houses are an historic way of marketing hearing aids, usually through a combination of direct mail, newspaper and telemarketing. I think they are right for some offices and not right for others.
AO/Beck: As you travel across the country, what are the biggest mistakes you see related to marketing and advertising within our profession and industry?
Marsh: I have the opportunity to make a lot of speeches at industry meetings and I like to make a joke of the fact that I'll consider my career a success if, when I leave the industry, I no longer see in newspaper ads, brochures or anywhere else pictures of the hearing aid in the patient's ear.
Again, it's not about the plastic and digital chips. It's about a quality of life. That's what makes the work done by people like you, Doug, so different. You have the opportunity to make a difference in the lives of others.
AO/Beck: Don, for the readers who would like to speak with you about their specific marketing plan and needs, how can they get in touch with you?
Marsh: Well, I do work for Siemens and people can reach me through Siemens at dmarsh@siemens-hearing.com or by telephone: 866-447-1411.
AO/Beck: Don, it's been a pleasure. I want to thank you and Siemens for allowing us to share these thoughts with the readers and I hope we get to spend some time together again soon.
Marsh: Thanks, Doug. I've enjoyed talking with you.
Click here to visit the Siemens Hearing Instruments website.
