FREE ESSAY ON CT SPIRAL SCREENING

CT SPIRAL SCREENING

SPIRAL CT LUNG SCREENING
AT DESERT RADIOLOGISTS
By
Linda 
Robert 
Marilyn 
Raquel 
Mike 
MKT 438
Instructor: Kelly Wood
July 19, 2000
HISTORY OF DETECTING LUNG CANCER
Lung cancer affects more than 170,000 men and women each year. Currently, there isn't a
practical or definitive screening method for detecting this disease. Historically, chest
x-rays were used to detect cancer when patients presented symptoms. Though chest x-rays
can pick up cancerous lesions, it has not been recommended as a routine annual screening
tool because it often detects the disease too late when cure is difficult.
By the time lung cancer is large enough to be visible on chest x-rays, it is often
advanced and may have already metastasized to other parts of the body. For this reason,
it was very important to find new methods of early detection and diagnosis. The answer
was the Spiral CT (Computed Tomography, "Cat Scan") Lung Screening now being offered at
Desert Radiologists.
DESERT RADIOLOGISTS
Desert Radiologists is Nevada's oldest and most sophisticated outpatient radiology
center. All diagnostic modalities are performed under one roof. In each of our
facilities, patients are able to have imaging studies that are traditionally performed in
hospitals only.
Desert Radiologists is committed to state-of-the-art comprehensive diagnostic care for
the people of Nevada. We supply our patients with prompt quality health care while
keeping in mind their rights to compassion, dignity, and personal regard. Many believe
that the success of Desert Radiologists is due in part to the very strategic and
innovative marketing/public relations techniques utilized to convey the message of our
incredible abilities in providing cost-efficient, high-quality radiology. We are on the
cutting edge of new technology that enables Desert Radiologists to provide the best
radiology care to our patients. 
DESERT RADIOLOGISTS' POSITION IN THE MARKET
Established in 1966 by Drs. Robert Taylor, Harris Knudson and James Lum, Desert
Radiologists diagnostic radiology practice has grown with the Las Vegas community to
become the areas chief resource for the highest quality, comprehensive medical care in
the field of radiology.
The firm's staff of over 25 Radiologists and 185 technical and support personnel promotes
a reassuring environment that helps allay patients' concerns and results in the best
possible experience for those entering an unfamiliar world of CT scans, MR imaging,
interventional radiology, and nuclear medicine. 
Desert Radiologists is a private corporation owned by physicians. Its success in
providing radiology services to Southern Nevada for more than 30 years has given the
organization a positive image within the community. Desert Radiologists is always
searching for new procedures and ways to enhance the practice.
NEW SERVICE PROVIDED
Desert Radiologists gathered research data from a firm that provided the Spiral CT lung
screening to their patients and extensive data from the Internet to study the
effectiveness of this new procedure. With positive results, the physicians made a
commitment to offer this new screening procedure that can detect lung cancer at an early
stage to the Las Vegas community. This newly developed screening test will improve the
odds of defeating lung cancer. The Spiral CT lung screening is based on United States and
Japanese studies that indicate CT screening is able to diagnose tumors early enough to
greatly improve survival rates.
An estimated 157,000 people will die this year of lung cancer, the leading cause of
cancer death of both men and women in the United States, according to the American Cancer
Society. Virtually all the "cures" in treating lung cancer occur in those patients where
the cancer is detected early before there is any distant spread or metastasis beyond the
"local" tumor or "local" lymph nodes. Lung cancer tumors found by a chest x-ray are
typically large when patients present with symptoms. In contrast, when detected on a
Spiral CT, the tumor may be no bigger than a grain of rice. 
A study from Early Lung Cancer Action Program (ELCAP) included 1,000 volunteers with an
average age of 67 years. The volunteers historically smoked an average of one pack of
cigarettes a day for ten years. These volunteers never showed signs of cancer or
exhibited symptoms of cancer. The participants were given both traditional chest x-rays
and CT scans. The chest x-rays detected tumors in 68 of the 1,000 participants while CT
scans detected tumors in 233 participants--more than three times as many as x-rays had
diagnosed. 
Lung cancer is deadly. Until recently, there has not been a successful process to detect
the tumors early enough before a patient has symptoms. However, the new process can
increase the five-year survival rate from 14 percent to 80 percent if all smokers and
ex-smokers receive an annual CT exam and early treatment. 
TARGET MARKETS
In order to make the Spiral CT Lung screening a success it is necessary to educate the
importance of the screening to the primary care physicians, patients, and insurance
companies. Specific patients to be targeted are the smokers, ex-smokers, and persons
surrounded by secondary smoke, i.e., casino waitresses, waiters, bartenders, etc.-even
children.
Currently, this screening is not covered by insurance. Therefore, the managed care
organizations must be educated to the effectiveness of the screening. It has the
potential to save lives and expenses in the long run. If the cancer is caught at an early
stage, the patient will require minor surgery and/or treatment. If the cancer is not
detected early and has already spread throughout the body, it could require advanced,
more expensive treatment or surgery.
GOALS AND OBJECTIVES
The company's primary goal is to raise awareness of the Spiral CT screening. The
importance of having this screening done is to increase a patient's survival rate. We
plan to perform at least 200 screenings per month at each of our locations. The screening
is not covered by insurance; therefore, we are charging $250 per screening. The fee is
competitive throughout the United States.
We feel the Spiral CT screening will increase a person's survival rate and decrease
surgery/treatment expenses. Our objective is to convince insurance companies to begin
covering this screening in their plans. We feel that awareness and education will be
effective in implementing the necessary changes.
PUBLIC ISSUES
The following points will focus on results sought by the company through our public
relations campaign. Also, the primary publics and secondary publics, both internal and
external will be identified. The corresponding issues of importance and how they relate
to the campaign will also address some of the reasons we have adopted our campaign focus.

Desert Radiologists desires to be at the forefront of medical imaging and technological
advances as they are discovered in the industry. Their goal is to communicate to the
public and the competitors that they are progressive and up-to-date in their technique
and approach. The patient, physician, and referring health agency can feel confident that
only trained expertise in all aspects are projected as a common thread within Desert
Radiologists. External or secondary publics such as subcontractors or equipment
manufacturers will also experience a reciprocal exchange of professionalism as an edge is
gained in the market by utilizing business savvy and sound public relations practices. 
Primary and other external publics will comprise much of our public relations
advertising. Pharmacies, doctors, health and smoking clinics, medical centers, hospitals
and any other referring health agencies as well as the media make up secondary external
publics. Desert Radiologists provide a service, the publics who are focused on are mostly
external because it is a way to get revenue to the company for the benefit of the
internal primary publics who make up the composition of the business itself, such as
owners, doctors, administrators and board members. 
In the future, insurance companies are another primary internal public who has the
potential to benefit from the screening by providing the service as a preventative
maintenance measure. This could prove to be an attractive avenue for obtaining revenue.
The primary targeted publics are smokers, non-smokers, and ex- smokers. Because they are
a target group outside of the company and therefore external, the shift of the public
relations effort must lean toward promoting extensive efforts at a large audience rather
that concentrating efforts on a limited number of candidates who fit a composite profile
and would be identified as primary internal publics. Of course because all employees and
staff can be members of the target group and therefore not excluded, they don't make up
the majority of the customer base desired.
The potential for forming lasting and productive relationships with both internal and
external publics make issues important due to the fact that these particular services are
limited in utilization and application to a small group of professionals which make the
competition more fierce in nature. In the health profession, this type of competition
takes away from the sensitive nature of this service that could hinder our campaign if it
were communicated to the public that we want everyone's business at any cost. The
following aspects of our campaign will focus on our plan to mitigate this and will
describe the strategies and tactics we are contemplating as we proceed.
RESULTS SOUGHT 
Results sought through the campaign are to ultimately improve the odds of defeating lung
cancer and generate consistent revenue by using the newest technology to do it. Research
and studies show that preventative health care can be painless and low cost compared to
the alternative. The low dose radiation scans are expected to save more than 100,000
lives annually in the United States alone. "People die who don't need to. CT scanning has
the ability to change this tragedy'" states Dr. Gerald L. Warnock, medical director at
Epic Imaging in Portland where this process is used. The hope is that this test will do
for lung cancer what the mammogram did for breast cancer and the Pap test did for
cervical cancer. Because lung cancer is difficult to detect in the early stages and
spreads quickly, early detection can save lives by removing a small segment of the lung
and curing a patient. 
Overcoming test data will be a difficult objective. At this time, the expense of the
tests have not shown numbers that make it worth the insurance companies picking up the
cost. Also, for those who cannot afford the test, diagnosis may be unavailable. 
Desert Radiologists wants to inform everyone by flooding the market with mass publicity
and awareness. Information on the disease, procedure, costs and benefits of early
detection make the testing appear necessary and desirable. Advertising at various
locations hope to produce results which will contribute to the success of testing being
requested on a regular basis just like Pap tests and mammograms. By being the first
imaging center in Las Vegas to offer this service, Desert Radiologist hopes to capitalize
on an untapped market and retain a steady customer base.
THE PLAN FOR MARKET SHARE
Desert Radiologists will meet their customer needs by providing state-of-the-art testing
with reference information available to answer all questions during the process. The
scope of the testing in terms of growth and profitability can be defined broadly. This
technology is an emerging market. To date very little of this markets potential has been
tapped and the potential for growth is great. Our goal is to discount all referrals from
family, friends, co-worker etc. Every customer that requires this testing will become
part of the overall public relations campaign by word-of-mouth customer satisfaction.
This referral process will increase sales by customer satisfaction. 
STRATEGIES FOR THE CAMPAIGN 
The first step in our strategy will be to get the message out to the public. How we plan
to do this will be integrated with our marketing plan. The campaign will consist of two
phases. During the initial phase, we plan to have local spots on television, radio, and
newspaper. The campaign message will depict the importance of testing for cancer and
success rate of surviving cancer by early detection. We plan to achieve the competitive
edge on our competition and follow up with phase two of the campaign by pointing out that
Desert Radiologists is the leader in this new state-of-the-art testing.
SOURCES OF FUNDING
The public relations department is authorized 1% ($200,000) of total revenues
($20,000,000) to conduct an extensive campaign for the three-year contract. The
additional funding will come from 10% ($96,000) of annual sales ($960,000). Desert
Radiologists will have a combined annual budget for marketing ($300,000) and public
relations campaign budget ($296,000), totaling a combined budget of ($596,000) for one
fiscal year. This budget will be reviewed on an annual basis. 
THE BUDGET 
We expect to obtain 50% of sales from local health clinics for smokers and doctors that
treat for cancer. The additional 50% of sales will come from the marketing and referral
process. The first two months have netted daily sales of $4,000.00. This is based on the
average of 16 tests each day on the four machines at a cost of $250.00 per test. On a
yearly basis the first year will net $960,000 at a sustained rate of 16 tests a day
between the four machines. If all goes well, we will double these figures after the first
six months of getting the word out. With the cost of software for all four machine's
totaling ($80,000), employee's annual salary ($128,000) and public relations campaign
($296,000) per machine, the annual profits from all four locations will total $456,000.
(See Exhibit "A" for Income Statement). 
Exhibit "A"
Income Statement - Desert Radiologists for the Year Ending June 30, 2001 
Sales $960,000 
Cost of goods sold 80,000 
Gross profit on sales 880,000 
Operating expense 
Selling expense 296,000 
Operating expense 128,000 
Total operating expense 424,000 
Operating income 456,000 
Interest expense 5,600 
Earnings before taxes 450,400 
Income tax 90,080 
Net income 360,320 
COMMUNICATING THE MESSAGE
Public relations is one of the most powerful weapons in the marketing warfare. It is also
an extremely cost effective marketing discipline. Public relations generated sales
ultimately result in an increased overall awareness and enhanced reputation of the
organization and its services, which will prompt people to respond to its advertising
approach. Modern public relations is a sophisticated management training which crosses
the boundaries of all corporate functions. The results of media coverage can provide a
powerful sales tool. There are multitudes of avenues that can be explored to provide
media coverage. Advertising, word-of-mouth, established clients, but none so far-reaching
as the Internet and the organization's web page. Desert Radiologists has its domain in
the World Wide Web as desertrad.com.
However, public relations is not just about media relations but it is about an
organization's reputation, communication of corporate values, thoughts and deeds,
assessing audiences responses, and taking positive action. If an organization can develop
a positive reputation and is successful in its particular industry, then potential and
existing clients will look more favorably upon the organization. Desert Radiologist is
continually building its client base by keeping old customers happy; attracting new
customers through information, pricing, and the quality of service; educating the public
on state-of-the-art equipment and research developments; and innovative new programs and
screening processes such as the new CT lung screening test. 
STRATEGIES
To be competitive, an organization must know its competitors. Desert Radiologists'
primary competitors are Insight Diagnostics, Steinberg Diagnostics, and West Valley
Imaging. Constantly monitoring the competitor's advertising, web site, and market share
enables Desert Radiologist to stay focused. While Desert Radiologists must know their
competitors, they must also know the target market. A market strategy specifies a target
market and a related marketing mix. Desert Radiologists has a marketing plan consisting
of objectives, opportunities, and strategies; an effective means to implement their
marketing plan; and control of the marketing plan and program to evaluate its progress
and adjust the plan as needed. Desert Radiologists uses the four P's in their marketing
strategy of Product, Place, Promotion, and Price to reach their clients-C. Each of the
four P's contributes to the whole success of Desert Radiologists. Marketing is an
integral part of any organization's success and should provide the guidelines for
satisfying clients' needs using the "four P's" for continuous innovation and improvement.

COMPETITOR'S RESPONSES
As the economy and competition grows, advertising becomes more important-because more
consumers have income and advertising can get results. Just as access to the Internet
becomes more universal, the strategy for Desert Radiologists is to utilize the World Wide
Web's vast audience to educate and inform the public about the CT lung screening.
Steinberg Diagnostics Medical Imaging Centers (sdmi-lv.com) also has its web site and is
matching Desert Radiologists' page item for item complete with a question-and-answer
section-even online appointment scheduling. The competition also has placed advertising
in the local Las Vegas Business Press.
Desert Radiologists has used different types of advertising to help solicit new clients.
Utilizing institutional advertising promoting Desert Radiologists image via the
'awareness' or 'announcement' campaigns; the 'informative, descriptive ads to create
interest in the new screening; competitive ads with persuasive copy; competitive pricing
and full disclosure about non-insurance pay; and informative "why you need to have the
screening done" ads. Steinberg Diagnostic has also placed pioneering advertising in the
media with the use of competitive advertising. The direct and indirect approach is being
used by both organizations. Both competitors are targeting "smokers" and warning them of
the potential dangers of not having the screening done. Desert Radiologists' marketing
and public relations managers are always looking for cost-effective media that will get
the message to the target market-the smokers-by matching the market with the media. 
S.W.O.T ANALYSIS
Desert Radiologists has identified and listed the organization's Strengths, Weaknesses
and its Opportunities and Threats. The S.W.O.T. analysis helped Desert Radiologists focus
on a strategy that took advantage of the organization's opportunities and strengths while
avoiding its weaknesses and threats to its success. The competitive advantage was the
innovative new screening test for cancer. The competition was not far behind. 
MEASURING RESULTS
It is not easy to measure the results of advertising or introducing a new product. Some
breakthrough, innovative campaigns do have a very direct effect on increased client
volume that can be measured by before and after-or during-the new screening campaign.
Yet, we usually cannot measure the effectiveness or success just by looking at numbers or
revenue. The total marketing mix of reputation and stability in the community is also
responsible for the result of the new marketing plan. Also, new client and referrals are
also affected by what competitors do and by other changes in the external marketing
environment, i.e. cancer awareness and public awareness of smoking hazards and
litigation.
Using client questionnaires and surveys will also help measure the effectiveness of the
new CT lung screening. Through defined specific advertising objectives, choosing media
and messages to accomplish the objectives, testing plans, and then evaluating the results
of the new campaign will result in good measurement tools.
Robert's additions will have to go here!
WE NEED A CONCLUSION!!!!!!!
REFERENCES
"Test can detect lung cancer at early stage." The Oregonian 14 Feb. 2000: A1
Seitel, F.P. (1998). The practice of public relations (UOP Special Edition Series). Upper
Saddle River, NJ: Prentice Hall.
American Cancer Society. (2000). "Cancer Facts and Figures 2000." National Media Office,
New York, NY.
Lerner, Maura. (2000, February). One More Gift, Maybe a CT Scan. Minneapolis Star
Tribune, ppg. A4, A6.
www.nci.nih.gov
www.mdanderson.org
www.pslgroup.com
www.bocaradiology.com
www.cancer.org
Bibliography
REFERENCES
"Test can detect lung cancer at early stage." The Oregonian 14 Feb. 2000: A1
Seitel, F.P. (1998). The practice of public relations (UOP Special Edition Series). Upper
Saddle River, NJ: Prentice Hall.
American Cancer Society. (2000). "Cancer Facts and Figures 2000." National Media Office,
New York, NY.
Lerner, Maura. (2000, February). One More Gift, Maybe a CT Scan. Minneapolis Star
Tribune, ppg. A4, A6.
www.nci.nih.gov
www.mdanderson.org
www.pslgroup.com
www.bocaradiology.com
www.cancer.org