Risks and Opportunities in Marketing

One major issue we have in our venture is that we are an unknown entity entering a market that is dominated by two forces (UPMC & Highmark) who have been known to use the media to their advantage. This can affect us in several ways that have nothing to do with the quality of the services we provide. We understand that we will have to develop contingency plans if this ever becomes a competitive problem but, before that happens, we have to get the word out that Care Van exists and enter the market.

I came across an interesting presentation from the University of Wisconsin that explores the risks of of health startups. One thing of particular interest to me was this chart on business models. I thought they could be particularly applicable to us because it could be the key to unlocking how to best market ourselves and turn one of our biggest challenges into a strength.

Cross Subsidies
This model suggests "Giving for free a product that entices you to pay for something else." We have had discussions in the past about offering flu vaccinations during our pilot phase, but if we offered free flu vaccinations all of the time, maybe we could get them to stay for a check-up and gain revenue that way.

Labor Exchange
This model follows the idea that "the act of using these services actually creates something of value." The amount of value placed on health is up to the customer, be we can assume that quality of life is of high value to the elderly population.

These two models offer a clear picture of the possibilities we have in marketing our venture, but we could probably take lessons from all of them. It will be important to consider how best to capture the customer's attention in order to limit the risks to our image and reputation early on.