Health Care Marketing in Practice - Research Paper Example

Running Head: HEALTH CARE MARKETING IN PRACTICE HEALTH CARE MARKETING IN PRACTICE Healthcare system is concerned with providing medical products and services for restorative and preventive care. In this era of globalization competition has taken an important place. To fight this competition, marketing plays an essential role. Marketing can be defined as a process of creating, promoting and delivering goods and services that have value for customers, and the society at large. Based on this definition, healthcare marketing refers to marketing methods and strategies in the healthcare industry (Rooney, 2009, p. 242). In US the health care institutions provide good quality medical services and products but still there are several glaring deficiencies. Many of the US citizens are without health insurance and when they get ill either they do not find the best treatment or they cannot afford the cost. Moreover, the medical facility and cost vary from place to place. The present study deals in current strategic positioning of Abbott Northwest Hospital and their marketing plans. Abbott Northwest Hospital Abbott Northwestern Hospital was established in the year 1882 as Northwestern Hospital for Women and Children. It is one of the largest hospitals in the twin cities. It is recognized both nationally and locally for its exceptional service and expertise. Every year the hospital provides services to about more than 200,000 patients along with their families across the twin city and Upper Midwest. It serves in the women and child care segment (Hospital overview, n.d.). The website of the hospital provides all necessary information for the patients. The “visiting” (Visiting us, n.d.) information provides the patients and their families with the address, direction, visiting hours, transportation and campus view of the hospital. The website also provides information regarding the food and accommodation available, services provided for the international patients and preregistration requirements. Apart from these the hospital website gives a clear view of the products and services they render. If a patient is suffering from a certain type of illness and does not know which department to refer then they might visit the website and fill up the details present in the “Provider” (Find a Provider, n.d.) section. Overall the website is very much user friendly and convenient. The reason behind choosing this health care organization is that they have achieved success in the health care segment by providing differential advantage among the healthcare market. They have created the differential advantage among women and child by promoting specialized health care services. This created a new move in the marketing segment (Hillestad & Berkowitz, 1991, p. 41). Differential Advantage The theory of differential advantage is related to the Principles of Customer Value. Differential Advantage is analogous to having a “competitive advantage, a unique selling proposition or an edge” (Capon, 2009, p. 13). Differential Advantage lies at the center of every flourishing marketing strategy. The principle of Differential Advantage emphasizes that the firm should propose the customer something they value but cannot get elsewhere. More formally differential advantage is “a net benefit or cluster of benefits, offered to a sizeable group of customers” (Capon, 2009, p. 13). The customers value these benefits and are willing to pay for this, since they believe they would not get such quality service elsewhere. The firm extend well planned market offer based on the marketing mix essentials in order to implement this principle. If the firm achieves differential advantage it should also secure improved prices (Capon, 2009, p. 13). The Product/ Market Opportunity Mix The Product/ Market Opportunity Mix identify four different alternatives for the marketing strategies to maintain and/or increase sales of business units and products. The four alternatives are “market penetration, market development, product development and diversification” (Evans & Berman, 2003, p. 64). The choice of an alternative depends upon the market saturation of the Strategic Business Unit or product and the firm’s ability to introduce new products. Two or more alternatives can be combined. Market Penetration Market penetration is effective only when the market is growing or not yet saturated. A firm seeks to expand the sales of its present products in its existing markets through more intensive distribution, aggressive promotion and competitive pricing. Sales are increased by attracting non users and competitors’ customers and raising the usage rate among current customers (Evans & Berman, 2003, p. 64). The women and childcare market is almost saturated for Abbott Northwestern Hospital. But the special “Abbott Northwestern’s WomenCare program” (WomenCare, n.d.) provides the hospital with a competitive advantage. Through this program the hospital recognizes the unique and special need of the women and according to them, they provide a full range of product and services that can treat women with full care and attention. Abbott has also highlighted the recognitions and ranking which may be considered as a promotional strategy. It ranked as one of the women friendly hospitals by the Minnesota Women’s Press and one among the most favorite clinic chosen by the female segment. Market Development Market development is effective when the local and regional business looks to widen its market. Due to changes in the lifestyle and demography of the consumers and new innovative uses of the products and services, new market segments emerge. At that time, market development is possible. By utilizing these changes in the new market or product, the organization can seek for greater sales. It can even enter new territories or appeal to the fresh segments to which it is not catering or repositioning its existing products. New distribution strategies can be planned or more descriptive promotion efforts can be made (Evans & Berman, 2003, p. 65). Abbott Northwestern Hospital wants to stick only to women and childcare. But keeping in mind the changing market and the requirement of the patients, it is forming collaboration with various other hospitals to diversify its services. Penny George Institute for Health and Healing and Abbott Northwestern Hospital has together started a hospital based program that is considered to be setting national values for enhancing health care via an amalgamated health approach. In this they are mixing complementary therapies and conventional western medicines. It aims to provide health care education to the professionals and services to the patients. They intend to teach the members of the community self healing tactics and health promotions. It also conducts research in order to identify the best practices and impact of those services on the cost of health care (The Penny George Institute for Health and Healing, n.d.). Product Development It is effective when the Strategic Business Unit has strong brands and a sizable consumer. The modification or development of new product is done only when the organization thinks of appealing to the new market. It stresses on new models, better quality and minor innovations that are closely related to well-established products. This is marketed to the loyal customers. Traditional methods are used for distribution. The promotional strategy stresses that the products are developed by the entrenched organizations (Evans & Berman, 2003, p. 65). Abbott realized that the reason of death in maximum women is heart disease so it has taken a significant step to prevent this. It has launched a program “Minneapolis Heart Institute's Women’s Heart Health Program” (Women’s Heart Health Program, n.d.) with Minneapolis Heart Institute that dedicates to offer “clinical service, support and education to the women in order to prevent, treat and live with heart disease” (Women’s Heart Health Program, n.d.). This program has some renowned physicians who are specialized in women health. This program provides physicians, nutrition and fitness consultation. Physician consultation includes examination and evaluation of the risk factors and on the basis of that the physicians will decide on a personalized plan for optimization of heart health. Proper diet charts are prepared by keeping the lifestyle of an individual in mind. Fitness consultation is done through “LiveWell Fitness Centre” (Women’s Heart Health Program, n.d.) in Abbott hospital. Diversification Diversification is used so that the organization does not depend much upon the product line. The organization develops new products aiming the new market. The products may be new to the industry or to the organization; so distribution and promotional orientation is very important. Distributional and promotional orientation must be different from those traditionally followed by the firm (Evans & Berman, 2003, p. 65). The critically sick babies born at Abbott Northwestern Hospital are transferred via an underground tunnel to the emergency care of the Children’s Hospitals and Clinics of Minnesota. The babies are separated from their mothers instantaneously after their birth which leads to a stressful separation. Abbott Northwestern Hospital is developing Mother Baby Center which will put an end to this situation. This separation will no longer be necessary. Understanding the need for a place where the mother and the children will be receiving the maximum level of care “Abbott Northwestern and Children's - Minneapolis have partnered to create The Mother Baby Center” (Birth Center, n.d.). Conclusion The study reveals that strategic marketing has become very important for the hospitals and other healthcare centers, keeping the competition in mind. Abbott Northwestern Hospital has designed their marketing strategy and segmentation very tactfully. The differential advantage they have created is aptly served by the organization. They are bringing innovative ideas and are implementing those in their product and services. REFERENCES Birth Center. (n.d.), Allina Health, retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/bc_homeﾧ Capon, N. (2009). Capon's Marketing Framework. Wessex Publishing Evans, J.R. & Berman, B. (2003). Marketing, 8E Marketing In The 21St Century Biztan. Dreamtech Press Find a provider. (n.d.), Allina Health , retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/providersﾧ Hillestad, S. G., & Berkowitz, E. N. (1991). Health care marketing plans: From strategy to action. Jones & Bartlett Learning. Hospital overview. (n.d.), Allina Health, retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/hospitaloverviewﾧ Rooney, K. (2009). Consumer-driven healthcare marketing: Using the Web to get up close and personal. Journal of Healthcare Management, 54(4), 241–251 The Penny George Institute for Health and Healing. (n.d.), Allina Health, retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/ihh_homeﾧ Visiting us. (n.d.), Allina Health, retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/visitingusﾧ Women’s Heart Health Program. (n.d.), Allina Health, retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/womens_heart_healthﾧ WomenCare. (n.d.), Allina Health, retrieved on February 2, 2013 from http://www.allinahealth.org/ahs/anw.nsf/page/womencare Read More