The 4Cs PDF
The 4Cs PDF
2, 2012 221
         Nikola Draskovic*
         Zagreb School of Economics and Management,
         Jordanovac 110, HR1000 Zagreb, Croatia
         E-mail: nikola.draskovic@kr.t-com.hr
         *Corresponding author
         Ana Valjak
         Leeds Metropolitan University,
         Civic Quarter, Leeds, LS1 3HE, UK
         E-mail: a37_valjak@yahoo.com
1 Introduction
In this section, a brief background, which includes a historical and political context, is
provided. Since changes and reforms to Croatian public healthcare are closely related to
changes in the political environment (Dzakula et al., 2008), it is necessary to also
approach the topic of research from the historical perspective.
Ante Pavelic who, supported by Germany and Italy, formed a puppet state.
Simultaneously, the resistance against the regime and the axis powers was organised by
communist partisans and their leader Josip Broz Tito.
    After the Second World War, Croatia became one of the six federal units in social
(communist) Yugoslavia. However, due to Tito’s policy of independence from the
Soviet Union, unlike other communist countries of that time, Yugoslavia had introduced
a unique type of socialism/communism (i.e., a self-governing socialism), which gave
certain managerial rights to the workers and limited possibilities for the private
entrepreneurship (Horvat et al., 1975; Horvat, 1982). Furthermore, due to the freedom to
travel, Croatian consumers and their behaviour was significantly influenced by the
surrounding Western countries (i.e., Austria, Italy) (Ozretic-Dosen, 2005).
    Unlike the majority of other transitional ex-communist European countries, recent
Croatian history consists of many dramatic events. War followed secession from the
former Yugoslav federation in 1990s. In the following decade, Croatia embarked on the
path to EU accession. In 2001, Croatia signed the Stabilisation and Association
Agreement, in 2003 officially applied for the EU membership and the European
Commission confirmed Croatia as a candidate country in 2004. After five years of
negotiation, the closing of the few remaining negotiation chapters is expected in the first
half of 2011 (Delegation of the European Union to the Republic of Croatia, 2011).
 Period                                            Development
 1980s                              Decentralisation (self-governing socialism)
 1990–1993                        Centralisation (war, economic crisis, transition)
 1993–2000                          Re-decentralisation (reform of the system)
 2000                         Further decentralisation, legal harmonisation with EU
          Source: Adapted from Dzakula et al. (2008)
The Croatian public healthcare system went through many transitions and structural
changes in the last forty years (Table 1). Despite some western stereotypes, during the
socialist era, the Yugoslav health system was considered innovative and committed to
primary healthcare (Saric and Rodwin, 1993). Geographical, political and administrative
circumstances prompted Croatia to decentralise its healthcare during the era of
self-governing socialism (Dzakula et al., 2008). Due to the outbreak of war and economic
crisis in early 1990s, the decentralised public healthcare system based on the concept of
permanent development and total social safety proved unsustainable (Hebrang, 1994).
During the war, Croatia also provided assistance to Bosnia and Herzegovina in terms of
224      N. Draskovic and A. Valjak
medical supplies and securing the most basic level of healthcare for the parts of the
country not occupied by Serbian forces and for the refugees stationed in Croatia (Rados
et al., 2000). To tackle the emerging challenges and demands, public healthcare was
reorganised and centralised in early 1990s, but the basic principles of universal coverage
and mandatory health insurance were preserved (Kovacic and Sosic, 1998).
    Despite the war, new reforms to the healthcare system were initiated in 1993. The
reforms allowed patients to chose providers, expanded the privatisation of primary
healthcare, organised financing the system through the Health Insurance Institute and
transferred the ownership of hospitals and primary healthcare from state to local
authorities (Hebrang et al., 1993). The reforms introduced a level of decentralisation but
also raised some concerns, especially from an ethical perspective. For example, reforms
enabled the establishment of private specialised policlinics in which staff employed in the
public sector could work part-time (Kovacic and Sosic, 1998). With inefficient structure
and waiting lists in the public sector, users were simply forced to use expensive services
in the private sector. Further attempts at decentralisation were made in 2000, but the
process was introduced slowly and sporadically, due to the issue of competence and
accountability on the part of local authorities and health providers (Dzakula et al., 2005).
However, reforms were not well accepted by the public due to decreased coverage of the
health insurance (Mastilica and Babic-Bosanac, 2002). With the start of the EU accession
process, the Croatian public healthcare system went through the process of legal
harmonisation with the EU. While this process went smoothly, the public healthcare
system suffers from increasing issues with funding due to high expenditures, inadequate
financial resources, continuous deficits of the state insurance fund, lack of transparency
in funding, aging population, etc. (Voncina et al., 2007).
    During the last 20 years the Croatian public healthcare system went through a series
of changes due to a number of initiated reforms. While the goal of these reforms is almost
always related to reducing the system’s costs, the users’ perspective seems to be
neglected. Consequently, the level of satisfaction with the healthcare system among both
participants and users has been in constant decline (Mastilica and Babic-Bosanac, 2002;
Mastilica and Kusec, 2005).
3.1 An overview of the social marketing approach within the public healthcare
    system
The social marketing approach was first introduced in early 1970s by Kotler and Zaltman
(1971) in their pioneering article on social marketing published in the Journal of
Marketing and titled ‘Social marketing: an approach to planned social change’. In the
article, the authors defined social marketing as:
         “The design, implementation, and control of programs calculated to influence
         the acceptability of social ideas and involving considerations of product
         planning, pricing, communication, distribution, and market research [...] it is
         The 4Cs of the Croatian public healthcare system                                    225
        the explicit use of marketing skills to help translate social action efforts into
        more effectively designed and communicated programs that elicit desired
        audience response.” (ibid, p.6).
According to a more recent definition, social marketing “is the use of marketing
principles and techniques to influence a target audience to voluntarily accept, reject,
modify, or abandon behaviour for the benefit of individuals, groups, or society as a
whole” [Kotler et al., (2002), p.5].
    Social marketing covers a broad area of marketing implications for non-commercial
purposes. Following this idea, academic researchers largely grounded their theoretical
considerations of social marketing on the theoretical foundations of commercial
marketing (Grier and Bryant, 2005). In other words, social marketing utilises tools,
techniques and concepts derived from commercial marketing in the pursuit of social goals
(Andreasen, 1995). However, an overemphasis on the direct translation of commercial
marketing principles and practices into social context could cause practical problems and
confusion regarding the theoretical basis of social marketing (Peattie and Peattie, 2003).
As Willcocks (2008) noted, the application of marketing to healthcare has been the
subject of some scepticism from various sources, not least healthcare employees, due to
the following reasons:
•   the competition upon which marketing is based will bring about the pursuit of profit
    and not quality of care
•   healthcare is, to a large extent, an intangible service, while marketing primarily deals
    with tangible products
Table 2 The role of communication in performing the essential public healthcare services
1 Monitor health status and solve community            6   Enforce laws and regulations that protect
  health problems.                                         and ensure safety.
      Communication role: Deliver relevant                 Communication role: Share information
      health status information to communities,            with the regulated community to facilitate
      particularly changes in rates that suggest the       the adherence to proper licensing and
      need for intervention; provide an                    safety standards; ensure easy access
      opportunity for communities to voice                 (e.g., website availability) to the required
      concerns about perceived health problems.            forms and rules relating to licensing and
                                                           regulation.
2 Diagnose and investigate health problems             7   Link people to needed personals health
  and health hazards in the community.                     services and ensure the provision of
                                                           healthcare when otherwise unavailable.
      Communication role: Notify individuals               Communication role: Inform medically
      and communities of potential health hazards          underserved population about
      (e.g., issue traveller’s advisories in areas         opportunities for healthcare and the need
      with known vector-borne disease                      for preventive services.
      transmission).
3 Inform, educate, and empower people about 8              Ensure a competent public health and
  health issues.                                           personal healthcare workforce.
      Communication role: Use multiple levels of           Communication role: Inform public health
      communication, including social marketing            practitioners and healthcare providers
      and community education, to bring about              about training opportunities, such as
      healthy lifestyles.                                  satellite video-conferences.
4 Mobilise community partnerships and                  9   Evaluate effectiveness accessibility and
  action to identify and solve health                      quality of personal and population-based
  problems.                                                health services.
      Communication role: Assist in the                    Communication role: Inform policy
      development of coalitions and partnerships           makers about the efficacy of
      that will lead to collaborative action.              population-based health services.
5 Develop policies and plans that support              10 Research for new insights and innovative
  individual and community health efforts.                solutions to health problems.
      Communication role: Inform the public                Communication role: Publish results of
      about new laws that affect health; share             applied research in peer-reviewed journals
      draft planning documents with stakeholders           so that other agencies can translate
      as a means to receive input and generate             findings into more effective public health
      investment and outcomes.                             practice.
           Source: Harrell et al. (1994)
Medical care focuses on disease management and the act of curing while public
healthcare efforts focus on health promotion and disease prevention (Nies and McEwen,
2011). As Evans (2006, p.1208) stated, “social marketing messages can aim to prevent
risky behaviour through education or the promotion of behavioural alternatives”.
Therefore, communication plays an important role in the context of public healthcare,
especially for performing essential public healthcare services (Table 2). The organisation
and management of such a vast number of communications with public and stakeholders
definitely calls for a marketing approach. Some scholars consider social marketing solely
a set of communicational activities (Hill, 2001). However, it should not be so limited.
Social marketing is grounded in commercial marketing’s conceptual framework and
includes exchange theory, market research, target audience segmentation, competition,
         The 4Cs of the Croatian public healthcare system                              227
the marketing mix, consumer orientation, and continuous monitoring (Grier and Bryant,
2005).
    The application of social marketing requires certain changes in approach to the
target audience. Public healthcare, according to its definition, consists of organised
health efforts directed to communities rather than to individuals, relying on a
combination of science and social approaches (Novick and Morrow, 2008). On the
other hand, commercial marketing focuses more on individuals, since it is considered
“the art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value”
[Kotler and Keller, (2008), p.6]. However, social marketing calls for a shift
from targeting everybody to targeting different segments or subgroups of the population
who share needs, wants, lifestyles, behaviour and values that make them likely to respond
in a similar manner to certain public healthcare marketing activities (Grier and Bryant,
2005).
•     Consumer wants and needs, instead of product – consumers are educated and aware
      of various options available on the market. It is essential to understand their specific
      wants and needs towards products and services, because companies “can only sell
      what someone specifically wants to buy”.
•     Consumer’s cost to satisfy that want or need, instead of price – consumer perceives
      the total cost of acquiring a product or a service. Besides price, the total cost could
      include the cost of time, travel expenses, etc.
Since the corner stone of public healthcare is to address and satisfy public (and
individual) needs related to (personal) health, the 4Cs seems to be an appropriate
theoretical framework for the investigation of the marketing dimension of the public
healthcare system. However, due to the specifics of social marketing, it is necessary to
make certain adjustments. Adopting the suggestions by Peattie and Peattie (2003),
Willcocks (2008) and partially by Rothschild (2010), the following modification to the
interpretation of the Lauterbourns’s 4Cs in the context of social marketing could be
suggested:
•     Consumer/user wants and needs – in the context of public healthcare, the user is
      often not aware of his/hers needs for better and healthier living and his/hers wants
      are usually not related with that. Therefore, it is the goal of social marketing to, from
      time to time, define those needs and to act in order to change a specific type of
      behaviour and to achieve desired behaviour.
•     Consumer’s/user’s cost – relates to the cost of behaviour change. However, this cost
      is mostly not related with the financial cost, but it mostly reflects time and effort
      spent by a person in the process of behaviour change. In this context, the goal of the
      marketer in social marketing is to minimise the cost of involvement for the user
      (Bloom and Novelli, 1981).
4.1 Methodology
Due to the explorative nature of this research study, a qualitative approach to the primary
research was selected. Within the range of qualitative research methods, an in-depth or
intensive interview has been selected. As Hesse-Biber and Leavy (2006, p.119) outlined,
“in-depth interview uses individuals as the point of departure for the research process and
assumes that individuals have unique and important knowledge about the social world
that is ascertainable through verbal communication”. The goal of the in-depth interview
is to yield information and to thoroughly explore a respondent’s point of view and
perspective (Guion, 2001).
    The in-depth interviews were conducted from a convenient sample of nine employees
of the Croatian public healthcare institutions. Respondents were recruited among senior
staff with a minimum of ten years experience in Croatian public healthcare. The in-depth
interviews were unstructured in order to achieve a wider understanding of the
implementation of marketing principles within the public healthcare system, without
imposing any a priori categorisation, which might limit the field of inquiry (Punch,
2005). The in-depth interviews’ agenda was structured around the modified interpretation
of the 4Cs marketing mix, as proposed in the previous section.
    The data collected through the in-depth interviews was interpreted by content
analysis. As Shapiro and Markoff (1997, p.14) suggest, content analysis refers to ‘any
systematic reduction of a flow of text (or other symbols representing the presence, the
intensity, or the frequency of some characteristics relevant to social science’. Since the
in-depth interview is based on the open-ended questions and its overall approach could be
characterised as explorative, the qualitative conventional content analysis was selected
for data interpretation. Hsieh and Shannon (2005, p.1278) define qualitative content
analysis as “a research method for the subjective interpretation of the content of text data
through the systematic classification process of coding and identifying themes”.
respondents agreed that the general public is the focus, rather than on particular
segments. Therefore, individual needs and wants are not properly addressed. As an
exemption, two respondents mentioned the breast cancer awareness and the prevention of
cardiac diseases campaigns:
         “The campaign targeted women in their 40s. During the campaign, I think
         women that didn’t even care about breast cancer got tested […] I think we
         saved some lives. And not just that, I think women started thinking more about
         routine check-ups and prevention all together.”[Respondent 3]
         “The campaign was intended for the population of certain age, gender neutral.
         And although everybody could have problems with heart, the most critical
         consumer group is over 45 years of age.” [Respondent 5]
One respondent also mentioned activities addressing the increasingly problematic issues
associated with overweight and obesity. The activities are aimed at the general public,
with occasional segmentation:
         “Amongst others, children are one of the target groups. The plan is to provide
         better diet options to schools and kindergartens so that children would get used
         to healthier types of food, rather than fast food and candies. This way, they will
         develop their preferences towards healthier options at the early stage. [...] The
         idea came from England, where Jamie Oliver, a famous cook, tried to remove
         vending machines from schools and introduce a healthier diet to children.”
         [Respondent 2]
Care about consumer/user convenience in the context of the Croatian public healthcare
system also seems to be neglected. The majority of respondents consider the geographical
dispersion of the primary healthcare institutions to be appropriate. However, they
acknowledged the inequality of service among some institutions, which has a negative
         The 4Cs of the Croatian public healthcare system                                 231
impact on the overall user convenience. A minority of respondents tried to minimise the
importance of convenience. According to them, users should show more initiative in, for
example, finding relevant information about the healthcare system reforms and
supplemental health insurance coverage:
        “There was no need for providing more information to users on recent changes
        or to provide better access to information. All the needed information was
        published on the HZZO (Croatian Institute for Health Insurance) web page.”
        [Respondent 1]
Overall, all respondents agreed that the Croatian public healthcare system lacks a social
marketing approach. First, there are almost no marketing experts employed within the
system. More or less, all marketing labelled activities are handled by medical doctors,
which respondents consider as a weakness. Second, marketing formally does not exist
within the system. Second, the system is going through reforms initiated during the EU
accession process. However, these reforms are aimed at the financial side of the system.
As one of the respondents pointed, “the system is not focused on users, but on itself”.
Finally, there is a huge impact of politics on the system. As some of the respondents
mentioned, it is always about maintaining a balance between political demands and
taking care about the users.
232      N. Draskovic and A. Valjak
5 Conclusions
The Croatian public healthcare system went through a series of reforms during the last
twenty years. As both the literature review and primary research revealed, these reforms
were mostly focused on cutting costs, which resulted in a lower quality of the healthcare
from the user’s perspective. Ironically, the overall quality of the Croatian healthcare
system was much better before all of these reforms and decentralisation efforts (Dzakula
et al., 2005). While the Croatian public healthcare system’s current focus on financial
matters and budgetary issues could be partially justified from the perspective of the
demands from the EU accession process and the need for cuts in public spending, there is
an obvious need for the system to re-focus on user satisfaction.
    As the primary research revealed, members of the Croatian public healthcare system
do not understand the concept of social marketing. Similar to the reported discrepancy
between the awareness of service marketing among Croatian surgeons and its application
to medical care (Ozretic-Dosen and Bilic, 2009), members of the healthcare system
mislabel certain communication activities as the marketing activities, while neglecting
other important elements of the marketing mix in the context of social marketing, like
focus on user satisfaction, user convenience, etc. Furthermore, there is a lack of social
marketing experts within the healthcare system. Medical staff, with limited or no
marketing education, manages social marketing activities, which is mostly limited to
communication.
    The Croatian public healthcare system will have to re-focus its efforts on user
satisfaction in order to improve the quality of service. Implementation of the social
marketing principles could provide an appropriate framework for further development
and improvement. However, there is a need for specific adjustments before the new
approach could be enacted. First, social marketing should be officially recognised by the
system and implemented within the organisational structure. It is important to include the
social marketing concept within development strategies and plans of the Croatian
healthcare system to provide the critical mass needed for re-focusing on user satisfaction.
Furthermore, the system should employ social marketing experts. Second, internal
educational programmes should be designed for staff in charge for the social marketing
activities and management. Since the implementation of the social marketing concept
should result in the overall change of how the system treats users, a broader
understanding of social marketing principles among healthcare staff is essential. Finally,
the Croatian healthcare system needs to allocate sufficient funds for the implementation
of social marketing principles, employment of social marketing experts and staff
education. The implementation of the social marketing principles within the system is not
possible without spending, but this should be considered as an investment into a better
healthcare system and satisfied users.
    This explorative study provides limited insight into the structural deficiency of the
Croatian healthcare system and adaptation of social marketing principles. Some
problematic issues and the lack of comprehension of the social marketing concept were
revealed. Therefore, there is potential for further research in the field of the social
marketing education for the healthcare staff. Furthermore, research focused on the user
perspective should also be intensified, not only to measure the satisfaction level with
healthcare services, but also to provide information needed for the development and
execution of social marketing activities.
         The 4Cs of the Croatian public healthcare system                                   233
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