Marketing Strategy Development Process of Imaging Outpatient Diagnostic Center - Assignment Example

 Marketing Strategy Development Process Quality Imaging Outpatient Diagnostic Center Marketing Strategy Development Process Quality Imaging Outpatient Diagnostic Center The purpose of this paper is to document a plan that allows the outpatient diagnostic center called Quality Imaging attract more patients and healthcare plan clients. Generally, an outpatient center provides medical assistance without the need for a patient to stay overnight. As a result, outpatient diagnostic services continually become many people’s choice with their convenience and ease of access to services. The result is competition among providers of products and services, usually based on quality differences and value addition to customers’ experience (Martin 2009). Furthermore, many procedures and tests in an outpatient center take place in a few hours hence the ability to serve as many clients/patients as possible gives the business an edge. Identification and Description of Products and Services Digital Mammography The center establishes a diagnostic and examining tool that uses low-energy x-rays to scrutinize the human breast. Most importantly, Quality Imaging has recently added an all-digital screening mammography in the offices as a step to ensure it delivers best quality care to patients. Digital mammography gives highest resolution images useful in detecting breast cancer in its earlier development stages. In fact, the images appear on radiologist’s computer in a matter of seconds. The ability to use all-digital screening mammography is an improvement from traditional diagnostic system, which also involved physical examination of human breast. It is also significant to note the system has no waiting time for film to develop, which implies patients wait less time to know test results. In addition, digital mammography allows radiologist to analyze breast images with the help of special high-resolution monitors. Further, it is possible to adjust monitors for contrast, brightness and zoom depending on requirements. One of the major benefits of this technology is the ability to manipulate images. Moreover, there is reduced need to retake due to under or over exposure, the result of which saves time lowering a patient’s exposure to X-rays. Laboratory Services The center has an ever-open laboratory center that helps diagnose varieties of illness. Laboratory services are accessible to patients referred to Quality Imaging or those interested in lab tests conditions. In the lab, patients are tested for a number of illnesses, which include blood tests and tests for various infections. There is a follow-up process that accompanies testing to ensure treatment if the need arises. Nonetheless, no appointment is necessary to have one enjoy laboratory services. Flexibility in lab access ensures patients use laboratory services at any time in their convenience. Open Magnetic Resonance Imaging (MRI) Quality Imaging is delighted to provide Open MRI in its offices for patients inclined to claustrophobia or larger patients. In essence, the open MRI gives comfort and leading-edge care. It is important to understand elementary concepts about MRI machines. In most cases, patients get scared of them since they are large and tube-shaped (Vlaardingerbroek Boer & Luiten, 2003). In effect, when one is inside an MRI machine, hydrogen in the body is temporarily re-aligned by the magnetic field. The Open MRI is also used to produce 3-D images usually used in other medical areas. Quality Imaging MRI systems deliver high superiority diagnostic images faster, quickly. This happens even faster compared to other open scanners. The machines are spacious and wide giving the patient room to relax and breathe (Vlaardingerbroek Boer & Luiten, 2003). Furthermore, a family member or friend can stay with the patient in the room during examination. Bone Density Scans Quality Imaging also offers bone densitometry screening. It is significant to note that approximately 25 million Americans, 80% of who are women have various bone disorders (Ryan & Jones, 2012). Further, this condition leads to new fractures of the spine, hip and forearm. The most viable way to diagnose the risk is through bone density scans (Spekowius& Wendler, 2007).Quality Imaging provides these services to improve health conditions of patients, especially bone-related. As a result, Quality Imaging has an able team of healthcare professionals and radiologists that specialize in state-of-the-art imaging to give best quality care in the marketplace. The center recognizes competition as a factor and aims to compete at all fronts with major focus on product and service quality as well as differentiation. There are diagnostically better images, fast appointments, short scans and exceptional guest comfort. The business also realizes the need to transformmedical imaging with basis of consistency and efficiency. Direct Market Competition and Its Impacts Competition is an issue of greatest concern for Quality Imaging outpatient center. Generally, clinical products and services compete on many fronts, usually based on customer experience and ease of access. Procedural aspects of a clinical center are also important when identifying competition. In effect, the center faces competition from many areas of concern. One, pricing affects the business massively. Instability of market prices for goods and services makes the business’ dynamics unpredictable. Further, pricing is a disturbing issue considering some products and services offered are available in government’s healthcare centers, usually cheaper (Ryan & Jones, 2012) There are competition concerns regarding market niche and market size comfortably owned by the business. This mostly relates to the ability of products and services to gain enough market shares and be stable irrespective of existing competition (Zelman, 2002).The situation is also dependent on products and services offered. It is important that the center identify differentiating features that inspire clients and patients to choose its products over those of competitors. In so doing, competition is not an issue of concern since products gain remarkable market size. Furthermore, there is competition based on customer experience, which involves waiting time, consistency of services offered, time taken in the lab, patients’ comfort and many more. The more family-friendly an outpatient center is the more likely it is more patients will visit. The environment and experience from the moment a patient walks in, welcoming and diagnostic procedures all determine whether one comes back. How Competitors’ Services and Products Differ Competitors’ products and services differ a great deal. An analysis of this differentiation takes place using the SWOT framework. Strengths are beneficial features of products and services that set them apart from others (Greenberg & Kates, 2014). In essence, they are in-built, usually experienced by clients, patients, and are quantifiable. An example of strength is the ability to differentiate one’s products based on many features. This strives to bring changes in products that are not common in other products. In the outpatient center, differentiation involves modification of existing products to make them different from those provided by other centers. For instance, lab tests and experiments use similar equipment but could be differentiated based on efficiency and guarantee of services. To accomplish this requires regular maintenance of equipment. Another way to differentiate such products and services is to color equipment attractively. Appearance influences people’s perception and the decision to get involved (Zelman, 2002). Differences in availability are also important, and are based on timing and location of facilities (Greenberg & Kates, 2014). There are outpatient centers located more interior than others are while other centers operate on selected number of days in a week. Differences in availability of products and services set businesses apart and give some an edge over competitors. For instance, some centers open two or three days a week and attend to patients on such selected days. There are varied reasons for this usually depending on customer base and size of workforce. In addition, products also differ in quality, which goes in handy with price. As stated, government outpatient diagnostic centers are more likely than privately owned ones to charge less for products and services. The result is a change of preference usually inspired by lower prices. Price is dependent on types of equipment use, status of radiologists and location of the center (Fortenberry, 2011). In effect, when there are other outpatient centers in the neighborhood providing similar services, the business faces restrictions on pricing. Nevertheless, when competitors are far and patients are likely to spend more to access them, existing business prices higher. Products are also differentiated based on design and functional areas. Design begins with office layout and comfort felt by patients within the premises. It also encompasses waiting rooms and luxury services. Further, design is the outlook of equipment and machine used in diagnosis. The physical appeal raises patients’ interest in them enhancing service delivery. On the other hand, functional area deals with variations in help received from a machine; usually concerned with number of uses to which a machine is put (Greenberg & Kates, 2014).When machines and equipment do varieties of work, the center gains an edge over competitors because it eliminates the need for a machine for every task (Fortenberry, 2011).It is also important to understand the need for specificity. For instance, bone density scan equipment is specific in their purpose and centers with such improve customer experience. The reverse is the case in lab experiments where patients are subjected to a variety of equipment and machine capable of multitasking. Why the Center Experiences More than its Fair Share of Unpaid Account Unpaid accounts are one of the major issues that cripple activities in a business. Customers fail to pay accounts for various reasons. Quality imaging suffers because of debts and unfulfilled promises to pay in the future. There are a number of explanations for this. For instance, patients come to the center in emergency conditions that require speedy tests and diagnosis to allow further treatment elsewhere. Therefore, the staff has no choice but to attend to such on the promise they will pay later. This never happens and it is challenging to follow up payments. A plan to curb unpaid accounts requires pre-determined procedures that govern attendance to a patient irrespective of their conditions. Notwithstanding, it is also necessary to attend only to patients with insurance as this guarantees pay. Unpaid accounts are further a result of failure to follow up diagnosis plans. In cases of emergency such as broken bone scans, it is advisable to follow up diagnosis with viable plans that encourage patients to pay. In essence, the center accrues a lot of credit because the treatment system allows patient access to services without verification of their ability to pay. Nonetheless, it is significant to understand the need for affordability and services to all classes of people. It is important to serve insured patients, as there is no worry regarding future payment. In addition, the center lacks necessary procedures that allow diagnosis only after payment (Fortenberry, 2011). Procedures begin at the point a patient walks in, and they should be directed to accounts office where they pay depending on needs. Standardization of payment is not appropriate though. Role Played by Pricing Price has the greatest influence on competition. Undoubtedly, high prices lower demand for products and services except in the case of special products. A number of factors come into consideration when pricing, and in most cases, it aims to cover cost of doing business. Three major pricing strategies are available: pricing below competitors, pricing higher than competitors, and pricing at market rate (Spekowius & Wendler, 2007). Decision on a suitable pricing depends on cost incurred in running the center and projected expectations. Nevertheless, pricing as a tool is the most powerful to counter competition yet many healthcare centers underutilize pricing. This paper realizes the effect pricing has on the center’s current situation and provided in this section is a comprehensive breakdown. There are remarkable variations in inpatient prices and outpatient prices. Quality Imaging Outpatient diagnostic center offers services that are also provided by other hospitals, especially related to inpatient services. As a result, the fact that diagnosis takes place and patients go home means such servicesis cheaper. Nevertheless, the cost of acquiring and installing equipment and machine coupled with low patient turnout pushes the center to charge higher prices. The idea of high pricing discourages some patients in the process. Affordability is vital if a business is to succeed in a competitive environment. As stated, many factors are included in pricing models, majority of which endeavor to cover cost incurred in making products available in the market. On profitability perspective, the center is competitive when prices generate profits and revenues. In addition, pricing influences perception about a product/service. It is generally believed that high prices are associated with higher quality services, which is true for most cases. In effect, pricing higher than competitors gives the business an edge in the market. This is hardly the case, however, for the outpatient diagnostic center that largely relies on availability and affordability of services and products. The differences in the way inpatient and outpatient services are paid for affects decision to go for either of them. Under normal circumstances, customers prefer cheaper products and services. As a result, the main idea is that high prices discourage demand (Fortenberry, 2011). The nature of services offered require pricing at considerable levels that takes into account the fact that patients have access to alternatives. Even though pricing is the greatest tool available for most businesses, majority are unaware of best pricing practices, especially due to changing nature of business environment. Possible Solutions to Reduce Unpaid Accounts The idea of unpaid accounts is briefly handled in the previous section of this document. It follows that many patients register unpaid accounts because of lack of sufficient procedures that ensure no diagnosis before payment. There is a multidimensional approach in handling this situation. On hand are physical procedures with which the center ensures prior payment while on the other hand are customized services that are only possible with insured patients. Physical procedures are issues such as documented registration of a patient followed by a visit to the account’s department before diagnosis (Fortenberry, 2011). This procedural approach seeks to ensure all processes are followed before diagnosis of illness. It is effective when dealing with fewer patients as they have to queue and make payments. At the close of business, responsible personnel balances books of accounts to ascertain unpaid accounts. However, the most feasible solution involves encouraging patients to get insurance cover. This begins at the business level where radiologists inspire patients and advertise available insurance covers to them. In effect, the insurance company with which the center partners is made known to patients and it is mandatory they get cover before diagnosis. Insurance provides convenience in multiple ways (Spekowius & Wendler, 2007). For instance, with insurance cover, a patient comes for diagnosis at any time without fear of expenses; the insurance company indirectly caters for payments. Nevertheless, unpaid accounts could be due to incompetency of professionals handling finances at the center, or taking advantage of situation to report more unpaid accounts than there exists. It is a major risk of financial underperformance when trusted employees misuse resources and underrepresent financial facts (Greenberg & Kates, 2014).A solution to the problem begins at the hiring process. Here, Quality Imaging must ensure competency of its account professionals is duly tested and highly verified. It can be followed by a vow to uphold professionalism failure of which leads to automatic termination of job contract. Possible Promotional Efforts Promotion is vital for success in clinical business practices. Promotion aims to enhance products’ position in the market and establish a permanent niche. In so doing, it involves activities that increase people’s interests in the product and inspires their participation in purchase. The outpatient diagnostic center uses similar promotional approaches. Among the most commonly, used promotional strategy is contests (Kotler, 2003). Here, the business organizes events during which winners get prizes that have labels of its products. The idea is to print the center’s logo on the prizes and enhance purchase. In addition, during contents, participants and people in attendance get items such as t-shirts and caps free. In so doing, the business makes a point and strongly identifies with potential customers as the diagnostic center of choice. The center also considers the use of social media such as Google+ and Facebook. Social media provides a promotional platform that is relaxed and free from functional stress. For instance, a Facebook account is free and is a social media site visited by millions of people (Kotler, 2003).Creating a social media site is followed by creating awareness among online users of the existence of the business online. On the internet, it is easier to explain and provide pictures of one’s products and services without stress. It is believed that social media allows customers see a company as one that is in personal contact with customers. In effect, social networks are associated with businesses that endeavor to reach consumers at individual level. Furthermore, mail order marketing is also applicable in this form of business. It is important to understand that patients who visit the center are already aware of products and services offered. Further, they have made their minds to pay for products and services. In effect, it is essential to get personal information from such patients. What follows is a selective process where marketers email or contact patients at individual levels, offer free care and invite them over for guidance. In so doing, the business cements its place in such patients’ hearts and is guaranteed customer loyalty. These patients are already familiar with Quality Imaging and represent the ideal customer base for launching a new product. Mail order marketing is done together with point-of-sale promotion. The latter involves marketing efforts that encourage impulse buying. For instance, in laboratory testing, patients are introduced to other test services other than that for which they prescribe. The aim is to inform of available range of products and services and enhance convenience the next time a patient wants different services. Moreover, the center can promote products and services by engaging in charity and different causes. Promoting products while supporting a cause is proven a beneficial promotion strategy (Kotler, 2003). It shows a business that cares for society and gives back appropriately. In essence, society feels part of the business and supports its future endeavors. On another perspective, it is advantageous to use customer referral programs. Here, professionals encourage patients to invite their friends and come for diagnosis at the center with them during their next visit. A direct promotional strategy could go with incentives such as cash rewards for whoever brings a friend. Products and Services that can be Utilized as an Advantage In every marketing situation, there are products that rank above others in terms of preference. It is with such products that a business gains identity and cements its place in the market (Shalowitz, Stevens, & Kotler, 2013).From the analysis above, majority of products and services provided by Quality Imaging are offered by competitors, as well. Nonetheless, it is possible to differentiate oneself and gain identity by focusing on unique products and service, such as laboratory tests. Laboratory services are based on personal experience hence the need to give customers the best experience. As a result, laboratory products and services are marketed differently. Marketing efforts segment the market in terms of age and other demographic factors. What follows is identification of potential and already existing patients/customers. As stated previously, it is possible to promote other products and inspire instant purchases during lab experience. In addition, digital mammography can also be specialized and used as an advantage. It is a unique service that requires attention to details and utmost professionalism. Thus, success in promotion of digital mammography depends on competency of personnel and radiologists. It requires radiologists with best skills and able to define even unknown situations to patients. Digital mammography is an improvement of traditional checking system that was prone to misunderstanding. On a lighter note, bone scan can also be specialized and used as competitive advantage. Customization of every service and product ensures identified customer base has reliable access to said products (Shalowitz, Stevens, & Kotler, 2013). Viability of the Center within its Current Environment The position of business is significant to determine whether it attracts customers. Suitability to environmental condition is a factor highly considered in marketing. Consequently, it is imperative to analyze whether the diagnostic center is in a suitable environment. Suitability of a business to an environment relies on whether it serves customer needs and if people really need it. Here, issues such as existence of substitutes or competitors are considered with great concern. Quality Imaging is in the right environment for business based on many reasons. For instance, location close to a large hospital presents an opportunity to attract patients headed to the hospital. Suitable location also ensures satisfaction of demand that frequently arises and usually more or less than anticipated. In addition, products provided are highly needed in the environment. For instance, a bone scan on females is a contemporary issue and many women are unaware of consequences of bone rapture. Creating awareness on the need for bone scan enlightens and encourages people to come for tests. Furthermore, viability in the environment also concerns relevance of business and if it serves purpose (Shalowitz, Stevens, & Kotler, 2013).In effect, outpatient diagnosis is in high demand, and the fact that there are no neighboring hospitals makes it necessary to establish the center. As a result, Quality Imaging operates in the perfect environment that should ensure profitability. Even though there is competition for products based on similarities, physical proximity gives Quality Imaging an edge over competitors, hence the business can command greater portion of surrounding market. Furthermore, there are no environmental concerns arising from how the center does business or operates. Corporate social responsibility is highly upheld as the business appreciates society and people therein. Without shadow of doubt, it is reasonable to conclude that Quality Imaging operates in the best environment. Failure of products and services to find breakthrough is due to other factors other than location of the center. Optimizing Distribution and Delivery System Optimization focuses on efforts to minimize cost and maximize profits, whichever is suitable for a situation. It is important to optimize distribution system for products and services offered by the business (Shalowitz, Stevens, & Kotler, 2013). In optimization of delivery system, for instance, wasteful and unnecessary processes and stages are eliminated. Distribution and delivery systems go in handy and optimization of one works positively for the other, as well. It is appropriate to utilize lean supply chain in this case and eliminate wasteful processes. In effect, optimization’s major focus is cost reduction and revenue increase. This paper advises that where appropriate, patients should get products at the center to avoid cost of delivering help to their premises. It calls for organization and identification of what is demanded to ensure all is available at a central place. In effect, when a patient comes for diagnosis, radiologists ask them other products they may need and delivery is instant. Furthermore, in a healthcare environment, optimization focuses on improving quality of services in the distribution and delivery channels (Shalowitz, Stevens, & Kotler, 2013).Optimization of distribution begins with clear checks on all points in which equipment and machinery pass as they get to the center. Further, optimization efforts aim to ensure quality and reliable checks at all points to ensure safe reach of machinery. Nevertheless, where possible, the center should eliminate some distribution channels that do not add value to the business. This is on the part of purchase of equipment. The result is cost savingand reduced process involved in delivery of equipment. A Summary of the Marketing Plan Process Kotler (1967) provides a framework for marketing that breaks down the process into four aspects: product, price, promotion and place as represented below The process assumes a straightforward approach where the business produces a product, set prices identify target market and embark on promotional campaigns, and finally choose the right place to market. Product Related Marketing Tools It is the initial consideration when applying Kotler’s model of marketing. Here, Quality Imaging identifies products with which it can find breakthrough in the market. Decision on what to produce depends on many factors including demand availability and cost of production (Kotler, 2003).Currently, the products of choice are already identified, which include bone scans, digital mammography, open MRI, and laboratory services. In effect, product related marketing tools focus on how such products appeal to patients. It deals with design and appearance functions of a product. The aim is to set one’s products apart and enhance position in the market (Kotler, 2003).One major product-related marketing tool for Quality Imaging is product quality. It aims to guarantee customer satisfaction from experience with the center’s products. For instance, quality is an issue of high concern in lab experiments that endeavor to eliminate false results. The choice of equipment used eliminates chances of errors in test results. Product related marketing techniques also involve packaging and branding. Even though these are most applicable in the product market, they can be used here, as well. After diagnosis, patients are given products packaged with the center’s logo at the front to attract their attention. Price Related Marketing Tools Pricing is the most powerful tool available to marketers yet most underutilized by many. Generally, price options relate to discounts, commissions and credit terms availed by the business. Commission to wholesalers and retailers is a vital aspect in pricing (Kotler, 2003). Commissions are given once the marketer ascertains that stated price guarantees returns. Further, commissions encourage purchase as the buyer purchases at a lower price. On the other hand, discounts are also effective for most products and services. In this case, patients access diagnosis services at lowered prices to encourage future visits. In addition to discounts, pricing also concerns credit terms extended to customers. It is important to note that pricing decision is based on many factors. The decision on which price to sell comes after consideration of business aspects such as profitability and cost. Place Related Marketing Tools Place marketing concerns with distribution channels, such as online sales, retail stores and mail order marketing strategies. The choice of distribution channel largely depends on cost, urgency of products and services and nature of customers (Greenberg & Kates, 2014).A massive shift by many organizations towards online sales takes place via the internet. In essence, doing business online has proven beneficial and convenient for many businesses (Kotler, 2003). It is cheaper and eliminates distribution cost and cost associated with reaching customers. Further, Kotler proposes the use of retail stores where suitable to improve customer experience. Most notably, what a business decides to use as distribution channel influences availability of products and services and affects cost of doing business. Where appropriate, the business should eliminate many distribution channels and reach users at individual level (Kotler, 2003). Promotional Marketing Tools On the other hand, promotion includes issues such as personal selling, the use of social media and activities that accompany sales. In personal selling, sales person reaches customers at individual level and communicates directly. There is a personal interaction between buyers and sellers, and the method is appropriate, say when there is need to demonstrate how a product works (Kotler, 2003).Nonetheless, personal selling is tedious and time consuming hence inappropriate for bulky products and services that require a longer time. In addition, many business move towards the use of social media promotion and advertise products on social media sites. Social media use is pervasive and comes with a massive audience. As such, it is possible to reach a wider scope of clients. Steps Taken from the Marketing Plan A number of steps from the marketing plan are applicable to solve the dilemma currently facing the diagnostic center. For instance, a move towards the use of social media marketing is feasible. Pervasive nature of social sites implies the center can reach more than anticipated number of clients and patients (Kotler, 2003). This requires concerted efforts to make a product known. Other than this promotional activity, it is a viable idea to hire sales people who do personal selling and advertise the center to community at individual levels. A typical promotional process requires dressing up in casual attires, usually having the center’s logo printed on them, and reaching out to community. It shows commitment to service excellence (Greenberg & Kates, 2014). Furthermore, product and service differentiation is also appropriate. As identified, the center operates close to a large hospital that offers almost similar products. This is the major source of competition and cause of dilemma. In effect, it is possible to counter product competition by design and structure specifications. Marketers believe customer experience is highly influenced by the business environment (Greenberg & Kates, 2014). Since it is challenging to re-brand diagnosis equipment and machines, uniqueness in design can be attained by improving office outlook. It calls for uniqueness in design of structures used such as waiting room and patients’ comfort in the labs. Other areas to improve are queues, waiting, and service time. The idea needs organization to ensure patients are not ‘bored’ when queues are too long. Facilities such as televisions and reading materials should be availed to occupy patients as they wait. Conclusion The success of products and services in a competitive market depends on sales and marketing efforts deployed. in the case above, Quality Imaging struggles to cement a place in the marketplace due to competition and inappropriate approaches in diagnosis and interaction with patients. Therefore, the proposed plan outlines steps with which situation can be reversed. It identifies four major products and services availed at the center: digital mammography, open MRI, laboratory tests and bone scans. They are products offered in neighboring hospital, as well, probably cheaper than Quality Imaging prices. Using Kotler’s framework of marketing, four aspects are identified: product, price, place and promotion. Consequently, it is viable to apply promotional and product tools of marketing at Quality Imaging. With promotion, social media marketing plays vital roles to allow business establish a niche in the market. In addition, personal selling is appropriate and presents a method with which personnel reach community at individual level to make known their products and services. Similarly, product aspects of marketing require differentiation to set the center’s products apart. However, though a powerful tool, pricing presents a challenging approach to improve the situation. setting lower prices could be appropriate, but only when business meets sales targets. Higher prices, on the other hand, kills demand. References Berkowitz, E. N. (2011). Essentials of health care marketing. Sudbury, MA: Jones & Bartlett Learning. Fortenberry, J. L. (2011). Cases in health care marketing. Sudbury, Mass: Jones and Bartlett Publishers. Fortenberry, J. L., & Fortenberry, J. L. (2010). Health care marketing: Tools and techniques. Sudbury, Mass: Jones and Bartlett Publishers. Greenberg, E., & Kates, A. (2014). Strategic digital marketing: How to apply an integrated marketing and ROI framework for your business. 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