The Traditions of Mayo Clinic Amid the Changing Global Scene - Assignment Example

Marketing-Case Study Lecturer 301: International Marketing Research at the Mayo Clinic The Mayo Clinic Memo Marketing staff Ethan Robinson cc: All Mayo Clinic representatives Date: December 03, 2014 Re: New Marketing Research Strategy New Marketing Strategy Attention Staff: Mayo clinic representatives are called upon to read and implement the information contained in this memo, which will go into effect with immediate effect. This is in step with the CEO and boards decision to achieve over 100% international sales period over the next five years. As we are aware, word of mouth has been our greatest marketing tool and ally and continues to be powerful and influential internationally. Therefore, the directives in the memo are required to be undertaken by the marketing department in order to share responsibility for achieving this target. As such, this memorandum will outline specific key tactics that shall be used in order to create a robust marketing strategy. Making 100 percent increase in sales revenue is no mean feat meaning various facets of the marketing mix will require to be addressed in order to achieve this goal. The marketing research exercise will seek to gather information on economic and demographic data, cultural and sociological data, overview of market conditions, level of awareness of the Mayo Clinic, reputation of Mayo Clinic and attractiveness of Mayo clinic internationally. Economic and demographic data shows data on growth and statistics in the health industry, analysis of stability of economies and how it influences the health decisions of the target markets and population trends. Cultural and sociological data provide insight into the ecological, climate history of common diseases, eating habits and their potential impact on insurance coverage and clinic choice. Finally, overview of market conditions involves analysis of the level of technology including internet knowledge in the target market, level of proficiency in resident clinics, level of health mindfulness and insurance coverage inclinations. Mayo clinic, as a brand should be in a position to exude exceptional qualities that will attract people around the world. Since its humble beginnings, nearly a hundred years, the founders of Mayo clinic sought to create an international legacy by traveling around the globe. In their expeditions, they compared notes and surgical methods with other physicians around the world in order to increase or change expertise. Mayo clinic continues in these traditions as in so many other areas of medical practice. Mayo clinic is focused on delivering exceptional care that recognizes no limits. Mayo clinic currently seeks to establish and position itself as the best service provider based in knowledge and superior care. Mayo clinic also prides itself on being multi-lingual, excellent interpreters, good listeners who provide grand experiences. The marketing research will seek to carry on Mayo Clinic’s traditions amid the changing global scene. As such, primary and secondary data become necessary. One of the key marketing strategies will include conducting detailed patient surveys regarding level of satisfaction with the services provided by mayo clinic. Collection of data internationally poses a broad range of obstacles due to the diverse cultural backgrounds. Thus, primary research serves the best approach to achieve this strategy. Formal focus groups will be useful in collecting in-depth information. They will assist Mayo Clinic in learning how well the organization is known in a particular region and how people are influenced in choosing it. Previous research has shown that patients in several areas around the world are not aware of the existence of Mayo clinic, even if their health insurance policies include Mayo as a resource. Thus, qualitative data will be gathered to learn preferences and criteria people search for in a decent health provider in their native country and whether or not they are content. Patient interviews will prove useful in revealing the above-mentioned. Mayo marketers are required to use effective means of retrieving such information through telephone interviews, face-face interviews, mails and email surveys or otherwise. The methods will differ according to customs and cultural differences among countries. Therefore, through such methods, Mayo Clinic will be in a position to better package its products and services while maintaining a county’s cultural diversity. After all, Mayo prides itself on its ability to adapt culturally. Mayo clinic will continue with its word of mouth marketing strategy as it still continues to be effective, particularly attracting new target markets. As mentioned, Mayo Clinic sets to achieve a hundred percent increase in sale revenue in a span of five years. Therefore, it is obligated to conduct research in markets that display potential to provide people that would benefit from Mayo clinic services. This means that the people must possess purchasing power while movement of goods and services should be practical. Without proper mobility of products and services, it would be difficult for Mayo to reduce its cost. In addition, strategic marketing research will include the consideration of such factors such as cultural influences, geographic location, and existing brand mindfulness. Observational research provides a perfect research tool where we can observe nature of the prospective markets prior to deciding suitable methods that will best suit a particular market. Local people in the health provider services and have been operating for a number of years should be observed in order to get a clear picture and determine the demand and supply of healthcare services in the target market. In the event that mobility of goods and services from headquarters to the destinations cannot be realized, research for possible suppliers of goods and services in the local market can be conducted. Secondary research will also provide a useful method of obtaining information in crafting and implementing the aforementioned marketing strategies. The Marketing department should analyze further available secondary resources as a useful initial step. Given the preference to target international markets, particularly those that can pass the viability test, the information required will vary considerably. General statistical data should be collected from international journal of market research, international library and international market research reports in order to understand better 1) target market’s preferences in the healthcare industry, 2) precise market data concerning the media and 3) other competent means of conveying information to the target market decisions regarding promotion. Following the strategies discussed during the meeting, we will ascertain the major prospective markets for international healthcare and target them for research. Afterwards, we will identify the best methods of communication in our clinics around those regions. The marketing department is encouraged to select reliable materials when conducting secondary research. We encourage you to review this memo and utilize the acquired tactics. Best Regards, Your Name CASE 3-3 Marketing to the Bottom of the Pyramid Question 1  In the case study, Professor Prahalad refers the bottom of the pyramid (BOP) as the largest, but poorest group of individuals who live on less than $2.50 a day. The group is estimated to be about 2.5billion people globally. This is a staggering number especially in the 21st century, taking into consideration years of industrial revolution. An interesting characteristic among individuals in this group is their moderately diverse needs as compared to the urban society given the fact that their living environment is poles apart from the immense urban towns. Major markets are now becoming competitive and congested, with increasingly thinner profit margins. Marketing strategies targeting BOP are now becoming a real potential and an area of consideration. Therefore, one of the factors that the company should look into is the culture of the target market(s). This means that information on demographics of the population such as their age groups; rate of employment, buying power and the language spoken should be researched and discussed at length. In this pursuit, we will seek to understand better the culture of the target markets including their tastes and preferences. This will enable the company create a product that is better suited to their preferences. An analysis of the macro-environment should also be taken into consideration in order to provide a clearer picture regarding the environment adjoining the target market. PESTEL factors are a tremendous system of analysis which to be precise consists of political, economic, socio-cultural, industrial, ecological and legal. Political factors will tell us about the political stability of the country, tax and labor policies and degree of intervention in the economy by the host government. Economic factors will enlighten us on factors such as interest rates, inflation, and level of disposable income. These factors will determine whether conducting business in the region is profitable. Social factors such as population growth, age distribution will have a direct effect on how well we understand our customers. In a world of changing technology, we will be better placed to analyze technological factors such as new methods of production and distribution of goods and services and latest avenues of communicating with target markets. This will come in handy in designing efficient marketing strategies by the company. It is crucial for businesses to know what is legal or not in order to trade successfully. This means we will make every effort to understand and adhere to several legal factors such as health and safety, consumer rights and laws, product labeling and safety. The BOP market is an attractive market segment with a unique set of challenges. Mainstream marketing strategies might prove not quite useful. Numerous research shows that BOP marketing requires advanced technology, creative financing, affordable packaging, and efficient distribution. Therefore, a proper marketing mix tool should be utilized to paint a practical scenario of the kind of choices the company will make in the process of introducing a product(s) in the BOP market. The 4Ps are product, place, price, and promotion come to mind. These are things the firm must have facts of, so as to create a seamless marketing plan and strategy for our target group. Product The Company must first find out what product is missing in the BOP segment and what do they require need most so we can decide what product to produce and market to them. In order to gather such information, the following questions are necessary: 1. What products do they require that are deficient in their state? 2. Does the original/current product require any modification to adapt to the BOP segment? 3. Is the product’s purposes and features suitable for the BOP segment? 4. Can the product adapt to their lifestyle? 5. Is packaging desirable? Does it influence consumers spending patterns that is pay lesser for a simple packaging or even no packaging? Price As mentioned above, creative financing is necessary since the BOP segment is highly price sensitive since majority of the population live on $2 a day. Thus, the product must be prudently priced for consumers to willing purchase it. The company should incur low production costs so that the product can be priced lower in order to make it affordable for the mass. Place The company should select a strategic location and best distribution channels for the product to reach a greater number of consumers. This is because majority of the BOP segment resides in rural areas that are harder to reach. The distribution channel must be low-priced any additional costs might not result in additional markup the price of the product. The direct selling method will be the preferred method of distribution in order to reduce costs and price of the product, hence affordable. The checklist should include; 1. Where do these consumers commonly purchase their necessities? 2. Are they willing to travel in order to buy the product? 3. Which distribution channel is the least expensive? 4. Is embracing a direct selling method a better marketing strategy? 5. What are the cost differences between distribution channels and direct selling? 6. How easy is it to arrive in the region the product is going to be sold? 7. How long would it take to be transported from the distributors to the retailers? Promotion Since BOP segment is price sensitive, word of mouth offers a good way to promote the product. Print advertisements can also be circulated around the target residential in order to create awareness and interest. Installments can also be considered so when the consumers do not have enough upfront cash they can pay by installments. 1. Types of sales promotion that the company can give, like discounts or samples 2. What methods of advertising are the consumers exposed to every day? Therefore, the aforementioned factors must be discussed prior into entering the BOP market. Question 2a It is not exploitation for huge companies to profit from selling such items as soaps, shampoos or ice-cream to individuals with low disposable income. For years, this has been considered the case since the companies should instead sell appropriate products such as affordable foodstuff. However, critically analyzing the situation could reveal otherwise. Even though the goods can be considered unnecessary in a small income region, the option of purchasing is strictly optional. If anything, the presence of such products can serve as motivating factors to incur higher income levels to purchase them. However, companies offering such products usually tailor-make their products to be affordable for the low-income group. Therefore, it is ultimately the consumer’s choice whether they spend their money on these goods, and companies should offer them all together. The other argument concerns the economy. If the indigenous people partake in the purchase of such goods, then they are in a position to stimulate their economy. This allows the companies realize profits and reinvest it into creating other product and services suitable for the low-income group. In addition, such companies offer employment for the low income giving them the opportunity to increase their profits further. Therefore, as long as companies are reinvesting the profit in suitable ways, the ethical line of creating profit for low-income individuals is not crossed. Besides, numerous companies observe corporate social responsibility activities that benefit the public instead of take advantage of them. Question 2b While encouraging consumers to spend is a viable idea, making loans to them only to spend depreciating consumer durables is poor economics. First and foremost, low-income consumers such in the BOP tend to be risky to finance due to the high risk of default. Secondly, consumer durables lose their shelf value once purchased and can only be sold at a loss at a later stage. Therefore, the low-income consumer gains no meaningful income (Neuwirth, 2012). This does not reprieve to the both the borrower and lender. A suitable method of financing consumption of consumer durables is through small-payment financing plans. Here, companies allow low-income consumers to purchase goods and make small payments over a period of months. This way, consumers can purchase and enjoy the goods interest-free while making payments according to their financial capabilities. Question 2c People with low disposable incomes may be poor but are still humans with human desires to live comfortably such as the middle-class urbanites. With the proper marketing and financing strategies, squeezing profits from individuals with little income might be considered as exploitation or capitalist. Instead, tapping into the spending capabilities of the low-income group can reduce poverty and boost creation of jobs through creation of distribution networks. This is usually referred to as the multiplier effect. With now increased earnings from the new jobs, the poor can gain access to services such as banking and insurance which they were not privy to initially (Time, 2005). References Neuwirth, B (2012). Marketing Channel strategies in Rural Emerging Markets:Unlocking Business Potential. Kellogg School of Management. Retrieved 03 December, 2014 fhttp://www.kellogg.northwestern.edu/~/media/Files/Research/CRTI/Marketing%20Channel%20Strategy%20in%20Rural%20Emerging%20Markets%20Ben%20Neuwirth.ashxrom Time (2005). Selling to The Poor: There is a surprisingly lucrative market in targeting low-income consumers. Nexbillion. Retrieved 03 December, 2014 from http://nextbillion.net/newspost.aspx?newsid=530 Grahm, J.L., Gilly, M.C., Cateora, P.R (2014). International Marketing Research at the Mayo Clinic. International Marketing. Retrieved 03 December, 2014 from http://highered.mheducation.com/sites/dl/free/0073529974/971354/case_3 1_International Marketing Research at the Mayo Clinic.pdf Grahm, J.L., Gilly, M.C., Cateora, P.R (2014). Marketing to the Bottom of the Pyramid. International Marketing. Retrieved 03 December, 2014 from http://highered.mheducation.com/sites/dl/free/0073529974/971354/case_3_3_Marketing to the Bottom of the Pyramid.pdf Read More