Principles of Healthcare Marketing - Essay Example

Answer One of the services in healthcare that uses transactional approach of marketing is treating the patients when they come to hospital. The hospital uses organizational focus and quality as major criteria to market healthcare services. Marketing can be broadly defined as a process that meets the needs of the people profitably (Kotler and Armstrong, 2009). In this case, hospital uses basic objective of the organization and quality to market its services related to healthcare. It exploits episodic transactional marketing and treats patients only when they come to the hospital. The follow-up is not required and no effort is made to build customer relationship. The transactional marketing relies on its quality and delivers care at sight which meets its broader objectives and goals. The relationship marketing on the other hand, relies on building constructive relations with the patients. Through newsletters and feedbacks, the healthcare organizations build trust of the patients and improve and improvise their services and products to suit the requirements of the patients. Its main focus is on acknowledging customer value and building long-term relations with the customers. The six criteria vis-à-vis goal, customer contact, organizational focus, customer responsiveness, quality concern and time perspectives play significant role in relationship marketing. They provide the basic framework of relationship marketing that strengthen customers’ confidence in the service and the organization. The organizational goal changes from profit to meeting the requirements of the patients. Getting feedback from customers and keeping in touch with them is reflected in the customers’ responsiveness and higher credibility of the organization. Answer 2 The seven sins of customer service in hospital are elaborated as below: Doctor oriented service The doctor-oriented service mainly refers to the attitude and behaviour of doctors when they are meeting or treating them. The doctors’ indifference to the appointment schedule and their lack of accountability to their patients becomes important issue within customer service in healthcare area. Lack of transparency It is one of the major sins in the healthcare industry. The hospitals that are not transparent in their wait-list, billing or the treatment of diseases tend to lose their credibility. Transparency in the operations of healthcare services considerably inculcates trust amongst the patients. Lack of privacy Confidential information of patients cannot be divulged to third parties without the express consent of the patients. Hospitals which tend to either disclose confidential information to third parties like research centres, insurance etc. violate the privacy of patients and lose their trustworthiness amongst the general public. Inadequate complaint Prompt customer service includes fast and efficient resolution to complaints. Many times hospitals do not have proper channels and process to address the complaints of the patients. It highlights the shortcomings of the hospitals and expediting the resolution of complaints results in better services. Poor facility design Poor facility design makes it difficult for patients and their family to locate the various departments and facilities, thereby delaying the treatment. Well-designed hospital is patient-friendly that facilitates fast and efficient way of completing the various formalities and treatment. Overworked employees Overworked healthcare workers become less efficient and put patients at risk. They are also tired and frustrated that not only lowers their ability to respond promptly to emergencies but it also makes them more unhappy and dissatisfied. Poor housekeeping Poor housekeeping results in unhygienic conditions and unorganized work environment. It also endangers the safety of the patients that lowers the quality of service delivery and downgrades the image of the hospital. Answer 3 The pricing strategies for physician’s new endeavour that might be applied are as under: Prestige pricing The endeavour is specialized and meets the need of diseases and health problems through holistic ways. Thus, physician can use prestige pricing for delivering unique services that are customized for individual patients. Bundled pricing As the new venture offers myriad services, physician can bundle certain services within one head and sell. This would appeal to patients as they would be getting the benefit of holistic care that broadly meets their budget as well as their healthcare issues. Going rate pricing The physician can also charge the going rates of the treatment for different diseases as the main advantage of the new business is that it is catering to diverse treatments under one roof that also incorporates the alternate medicines. Leader pricing Leadership pricing is good option for the new endeavour as the facility offers myriad services that can be customized for niche clientele like celebrities and elites. Discount pricing In the current recessive environment and the escalating cost of healthcare, discount in services are hugely attractive for middle class and the poor. The various treatments and services can be discounted for patients especially when treatments are preferred by large number of patients. Thus, treatments like yoga, gym etc. can be given in groups and would be financially beneficial to the new endeavour. Odd pricing While holistic care has increasingly become more popular, odd pricing of treatments and healthcare service occasionally serves to attract new patients. Answer 4 The businesses including hospitals’ growth is marked by stages of growth and distinct pattern of retailing. Hollander (1960) claims that new business tends to go through four positions that he calls ‘wheel of retailing’. This is interesting concept and highly pertinent issue that indicates the growth and deceleration of businesses once they achieve the third position. At the start, the fledgling hospital offers limited services at low price and low margin. This helps it to attract customers and help establish its credibility in the market. In the second position, as the hospital has gained market credibility, it is in a position to expand its services and offer value addition to the services, thus increasing the cost of healthcare delivery with higher margin. At this stage, the brand credibility of the hospital ensures that it continues to gain customers. This is important period of the hospital when it can experiment with new ideas and still maintain its market credibility In the third position, the hospital has achieved its elite position in the market with full range of services. As a multi-discipline healthcare facility, it can charge premium prices for the different healthcare service delivery with significant margin. This is the peak position that any organization is able to achieve. Hollander says that it is also the position when the hospital/ business is also vulnerable to competitions. Consequently, the hospital, after sometimes, need to evolve new strategy to maintain its market position and automatically transits to the fourth position. (words: 1075) Reference Hollander, Stanley C. (July 1960). The Wheel of Retailing. Journal of Marketing, 37-42. Kotler, Philips & Armstrong, Gary. (2009) Principles of Marketing 13th ed. New Jersey: Pearson Prentice Hall. Read More