Research Project: Marketing Strategies in Healthcare (Dissertation Sample)

Research Project: Marketing Strategies in Healthcare (Name) (Course Name and Number) (Professor’s Name) Table of ContentsCover Letter……………………………………………………………………………...3Introduction……………………………………………………………….….4Need for Marketing Strategies in Healthcare Organizations…………....5Healthcare Organizations as Business Organizations……………….…8Why Market Segmentation……………………………………….…….8Customer Loyalty………………………………………………….……10Differentiation of Products and Services…………………………….12Role of Pricing and Distribution………..………………………………….14Promotion Strategies……………………………………………………….17Significance of Advertising…………………………………………………21Dealing with Sales and Sales Management…………………………......22SWOT………………………………………………………………………...24Five W’s Chart (What, Who, Why, When, Where) and 1H (How)……..25Conclusion………………………………………………………………...…27List of References……………………………………………………………………….29 Cover Letter This is a research project that highlights the significance of marketing in healthcare and outlines the ways in which healthcare organizations can frame effective marketing strategies, and implement them in getting the best possible outcomes. * Introduction Marketing is an organizational activity that requires marketing departments to plan and effectively deal with product, price, place and promotions, which are the four Ps and the core variables in the marketing mix. In order to succeed in their marketing efforts, healthcare organizations have to thoroughly understand the varied markets and customer segments that are characterized with a wide range of needs and expectations. In the current healthcare environment, the most pertinent need is to ensure that customers remain satisfied. A market-focused approach to planning is typified with an inside-outside-inside strategy, which means that market research is conducted in determining the needs of patients, after which pretesting is done in order to create a customer-propelled differential benefit (Berkowitz, 2016). In effect, the strategic marketing process for healthcare services must be based on the broader macro environment comprising of different stakeholders. In addition, consideration has to be given to society at large and to environmental factors. Marketing of health care services requires the classification of target markets that are prone to be different form the given healthcare organization’s current customer segments. Product-oriented organizations manage services as distinct business units or as individual profit centers. It is important to recognize that the marketing concept is gradually transforming from transaction emphasis to the adoption of strategies that lead to higher customer retention. This paper makes a comprehensive analysis of the healthcare sector from the perspective of how they frame their marketing strategies and the new initiatives they need to take in order to create comparative advantage for themselves in the fast-increasing competitive environment. It emerges from the analysis that in the healthcare sector, market-focused organizations lay emphasis on being result driven, customer focused, and on being clearly aware of the prevailing competition. In order to succeed, healthcare organizations have to frame marketing campaigns that are focused on the vision to succeed. * Need for Marketing Strategies in Healthcare Organizations Marketing is a major element of a healthcare organization’s strategic plan, and is based on its mission that primarily focuses on identifying its customers and determining their needs. While developing their strategic plans, healthcare organizations should be in the know about the prevailing barriers to entry and exit in the context of new service endeavors. In this regard, invisible value relates to the value propositions that are developed by the healthcare organization in its services or products. Similarly, visible value represents the value that customers perceive in the given product or service. In general, and from a practical perspective, organizations can charge customers for services that have a visible value. Organizations have the ability to create differential advantage for themselves, which can be price-based, market-based, or product-based. In effect, it is possible for organizations to adopt different growth strategies, such as diversification, product development, market penetration and market development. It is important to note that in the healthcare sector, the degree of competitive intensity is impacted by threats that exist because of new entrants, the bargaining strength commanded by customers and suppliers; and the threats that are posed by substitute services and products. Healthcare organizations have the choice of developing their marketing strategies and plans on the basis of following a market concentration strategy or mass marketing strategy (Berkowitz, 2016). Marketing strategies in healthcare organizations should be developed in keeping with the prevailing macro environment. The success potential of any organization’s marketing program can be impacted by regulatory, competitive, social, technological and economic factors. A noteworthy development in recent years has been the slowing down of increase in costs of healthcare. Recent developments such as healthcare reforms, health savings accounts, and healthcare plans with high deductibles have changed consumer perceptions in considering healthcare as a product that is open for purchase. It is known that healthcare is an industry that is considerably driven by technology, which is why new technologies have a major impact on healthcare organizations, particularly in regard to how healthcare is provided. In the future, the internet and wireless services are poised to create a major impact on the ways in which patients will communicate and interrelate with healthcare providers. It cannot be denied that the internet has had a major impact on healthcare. Healthcare organizations stand to gain by shifting their promotional activities by using social media platforms for communicating with their stakeholders and potential customers. It is a fact that more and more patients are choosing to go online in searching for the available healthcare options. In addition, an increasing body of physicians has already begun to adopt this option for increasing referrals. More and more people are now realizing that the internet proves to be an important source that allows them to choose the best healthcare facility. In addition, it is also true that the internet safeguards healthcare organizations from competition provided it is used judiciously. For example, a well-structured website segregates clients from the prevailing competition. This is done by providing the client with resources through which many facilities are provided to him/her, such as the option to quickly interact with one’s physician and to get clarification about the individual’s illness (Hillestad and Berkowitz, 2013). It is known that most healthcare organizations have online referral pages on their websites that allow patients to avail of the much needed expertise quickly. The transforming demographics in the United States are creating better prospects for health care organizations. The rapidly increasing numbers in the elderly population is resulting in enhanced demand for healthcare services. It is noteworthy in this regard that in the United States, the Baby Boomers are mostly interested in trying out different medical methodologies. At the same time, altering market demographics in the United States, from the perspective of race, ethnicity, and gender are putting added pressure on healthcare providers as they have to be more attentive to the concerns and requirements of a distinct consumer base (Berkowitz, 2016). However, there is no doubt that competition is consistently increasing as numbers of healthcare organizations are increasing rapidly in the United States as well as across the world. In fact, technological advancements and globalization have allowed healthcare organizations to improve their offerings. Consequently, a distinct change is apparent in terms of the shift from managed care to a market-based environment in which charges are levied on the basis of need and demand. A direct impact of such circumstances is the consistent increase in outpatient surgeries and inpatient admissions. In the United States, large numbers of state and federal regulations are in force that impacts all aspects of the marketing mix. Most of the developed nations across the world have also resorted to introducing major reforms in their respective healthcare sectors to meet the new expectations of consumers. In order to make the best of the prevailing regulatory environment, many healthcare organizations have begun resorting to mergers and acquisitions, which allows them to exert greater influence in markets. Hillestad and Berkowitz (2013) have held that while framing their marketing strategies, healthcare organizations must consider the ongoing trends, events and changes happening in the marketplace. From this perspective, it is important for healthcare organizations to adopt an environmental scanning process on a consistent basis. It effectively tracks the local, national and international developments that have a bearing on the organization’s present and future marketing strategy. A pertinent example in this regard is the ongoing pattern in the United States whereby Baby Boomers have be...