Healthcare Marketing Knowledge Assessment - Report Example

Healthcare Marketing Knowledge Assessment Name Institution Affiliation Consumer Views on Hospital Advertising Hospital should not engage in advertising The argument against healthcare advertising can be tied to both ethical and economic grounds. The proponents of healthcare advertising argue that it is harmless, educational, and economically essential; studies into healthcare service advertisement have established that healthcare marketers create adverts that manipulate patients’ ignorance and vulnerability and also stimulate demand for unproven therapies (Berkowitz, 2010). With regard to this understanding, practices of healthcare advertising may influence patients not only to make poor decisions about disease treatment, but also may foster unrealistic expectations or encourage unnecessary risks. The UAE society is made up of complex social dynamics that is meant to uphold high social morals; pervasive healthcare marketing messages will certainly compromise the high moral standards held by this society. Hospital Ads increase costs Healthcare advertising is extremely costly; for instance, hospitals, physicians, and medical centers spend millions of dollars annually to promote their services to the public. However, the big question is, “is it worth it?” to a small extend some may believe that it does (Berkowitz, 2010). Contrastingly, despite the fact that the advert can have a salutary effect on a given institution, the cost for healthcare advertising for the whole healthcare system is absolutely expensive (Fortenberry, 2009). UAE society is largely an Islamic community that value cost transparency, for this reason, healthcare consumers here are unwilling and against the extra product costs due to healthcare advertisement. Hospitals with good reputations do not need to advertise Hospitals providing superb healthcare services do not need to advertise; once patients receive quality services they will continue coming back for more and above all recommend other patients to the same healthcare facility (Berkowitz, 2010). Like anywhere in the World, UAE citizens deserve quality healthcare services; hospitals and healthcare centers delivering quality medical services will be preferred by patients, and hence they don’t need to advertise to attract customers. Hospital ads are often misleading Various experts have established that hospital advertising has substantially driven the public to demand for costly and ineffectual treatment particularly around the end of life (Fortenberry, 2009). Patients have the perception that increased technology together with more advanced procedures will deliver the much needed cure (Kongstvedt, 2012). Given the fact that most ads are misleading the UAE society should not pay more or extended attention to healthcare advertising but should consider hospitals that offer quality healthcare services. Hospital ads are useful in choosing hospitals Healthcare adverts have been found to be instrumental in helping patients to choose hospitals from which they may receive the desired medical care (Berkowitz, 2010). Healthcare advertisement in the UAE will automatically help healthcare consumers to have knowledge of the different services offered by different hospitals as well as the kind of medical equipments they possess and hence they will have a wider variety to choose from as per their medical needs. Hospitals ads help win clients Global citizens are accustomed to seeing healthcare advertisements; the direct-to-consumer advertisement by hospitals and pharmaceutical industry are used (Berkowitz, 2010). These advertisements have contributed largely to hospitals as well as individual physicians to receive attention (Fortenberry, 2009). Healthcare adverts help healthcare organizations to attract patients from different market segments. Healthcare advertisement in the UAE will substantially help hospitals and individual physicians attract clients. How Healthcare Advertisement is done in the UAE Advertising is a paid form of personal presentation of goods, services, and/or ideas; it is a form of marketing communication that is largely used to encourage, persuade or manipulate the audience (customers and prospective customers) to take some action (Berkowitz, 2010). The main aim of advertising is to drive consumer behavior with regard to a commercial offering. In healthcare industry, advertising was initially directed towards physicians; currently, the trend is changing (Fortenberry, 2009). Advertising in the UAE is undertaken with regard to the New Advertising Standards that provides different principles that govern the content of advertising as well as reinforcing fundamental edicts. The objectives of the new Advertising standards demands that all advertisements conform to the laws and regulations of the UAE. The new advertising standards are meant to: instill respect for the local religious, cultural and social values of the UAE, and strengthen freedom of media expression. In addition, establish an advertisement sector that contributes to the growth of UAE’s economic development (Berkowitz, 2010). In essence, all advertisements in the UAE must conform to the new advertising standards. Healthcare organizations as well as other industries have an obligation of adhering to the new Advertisement Standards in order to promote their products and services successfully in the UAE. Advertisement in the UAE uses different media including: Word of mouth: is an essential form of advertising; it has been established that a happy customer has the capacity to steer new customers to the organization (Fortenberry, 2009). It is particularly triggered when the customer receives exceptional services or goods with quality beyond his/her expectations. In the UAE, good healthcare customer service is a vital element for ensuring that customers always have positive views about the healthcare services offered (Berkowitz, 2010). Accordingly, physical and non-verbal elements like being cordial, cheerful, and warm with customers is vastly considered and dependable in generating word of mouth advertising in the UAE Community. Out-door advertising: this includes billboards or transit, it is viewed as supplemental advertising medium that support exposure of other media. It has a reminder appeal but can also be used during the product introductory stage to enhance brand recognition. This form of advertisement is placed in public place to display the advertisement for the passing motorists and pedestrians. UAE healthcare out-door advertisement is done through billboards, banners or transit along major highways, and big towns for consumers and prospective consumers to see. Radiated media (television and radio) this is considered as the most effective and expensive form of mass-market advertising (Berkowitz, 2010). Television and radio advertising have a massive advantage of communicating the sight, sound and motion. TV and radio healthcare ads in the UAE reach many people in their homes, workplaces, and entertainment malls and they are mainly aired during prime times and in-between programs. Newspapers: it is the commonly used form of advertisement; newspapers receive substantial amounts of advertising monies (Berkowitz, 2010). Due to its popularity, the healthcare industry in the UAE largely uses it as it has the ability of targeting the local market in which they compete. For example, physician referral lines or nurse information lines can easily be published in newspapers. Direct marketing and the Internet: this where the company uses the telephone or internet to communicate directly with customers. Healthcare facilities in the UAE are now using this medium to transmit healthcare marketing messages to consumers. Barriers to Entry and Barriers to Exit in Healthcare Industry Barriers to entry are factors that impede the ability of a company to enter into a given industry. Barrier to exit on the other hand, are those factors that block the ability of a company from leaving an industry that it is already established in (Berkowitz, 2010). Barriers to Entry The following are common barriers to entry into the healthcare industry Financial factors; this is the need of large volume of capital in order to set up a healthcare facility. For example, in UAE setting up an oncology wards for cancer patients require huge sums of money. In accordance with this, many upcoming or prospective hospitals will be hindered from entering the industry due to high financial requirements. Technological factors: if the new entrants lack the knowhow or the technology used in a given industry they will not manage to enter that particular industry. For example, the UAE healthcare industry, accompany without the expertise of providing healthcare services cannot manage to enter the industry. Strategic factors: these are factors that a startup company must deal with in order to enter a specific industry and they include: economies of scale, product differentiation, access to distribution channels, costs disadvantage independent scale, and government policy. Any healthcare company wishing to enter the UAE healthcare industry must deal with these strategic factors without which they will not manage to enter. Regulatory factors: there are several regulations that start-up companies must adhere to in order to enter a specific industry. For instance a start-up company entering the UAE healthcare industry must adhere to the following: i. Intellectual property; these are patents together with other types of proprietary intellectual property have proven to limit companies from entering a given industry; for instance, a pharmaceutical company producing malaria drug (Coartem) has a patent and hence no other company can produce the same drugs under the same name. ii. Established brand identity; industries that are dominated by branded products are also very difficult to entry due to the large periods of time and huge amounts of money to develop a competitive product. The Aga Khan Hospital is a branded hospital and hence no other investor can enter the industry under the same brand name. iii. Permitting requirements: industries with stiff regulations including operating licenses to establish production are difficult for entry (Berkowitz, 2010). For example, the healthcare industry has set standards that companies providing health services and products must meet before entering the industry (Fortenberry, 2009). Barriers to Exit The typical barriers to exit include: Massive investment in specialized equipment; companies with large investments in specialized equipments and assets that cannot readily be used in another industry experience hard time to leave the industry within which they are operating. For example investments into Magnetic Resonance Imaging machine. Specialized Skills: high specialized skills in a given industry particularly those skills that cannot be used in another industry will automatically hinder the participants from exiting (Berkowitz, 2010). Neurosurgeons cannot transfer their skills into a building and construction industry. High fixed costs; high levels of fixed costs also restrict industry participants from leaving the industry. Hospitals providing high end healthcare services like brain surgery cannot just exit the industry for an insurance industry due to high switching costs. BCG Matrix The Growth Share Matrix is a chart that was developed by the Boston Consulting Group with a singular objective of helping corporations analyse their business units (Berkowitz, 2010). This is also vital in helping resources allocation by the company, and above all, it is used as an analytical tool in product management, brand marketing, strategic management and portfolio analysis (Haimowitz, 2012). It is based on the assumption that cash flow and profitability are closely related to sales volume. In this regard, product lines are classified into the matrix that comprises of cash cows, dogs, problem child, and stars. Star Problem Child Cash Cow Dog Cash Cows This is the case when a company has a high market share in a slow or moderately growing industry. Cash cow units usually generate more cash than the needed amount to maintain the business. With little investment, a company can earn enormous profits given the fact that such investment would be wasted in a low growth industry (Berkowitz, 2010). Cash Cow products in the UAE healthcare industry can include medication such as chemotherapy and dialysis. Once the chemotherapy equipments are purchased by a hospital no further investment is required. Star These are units with a high market share particularly in a fast growing industry (Berkowitz, 2010). They require huge funding to fight competition, maintain growth as well as maintain competitive advantage in the marketplace. In the UAE healthcare industry star units are things such as heart surgery and brain surgery Problem Child These are products or business units with low market share in a growing industry; these products must be carefully evaluated to determine the viability of marketing activities needed to entice consumers to make a purchase and also if the purchases will result into profitability. Examples of this in the UAE include training of surgical students across different specialties such as urology. Dogs These are business units with low market share in a mature and/or slow growing industry. They are associated with breaking even only generating barely enough income to maintain the company’s market share. Examples of dogs in the UAE healthcare industry include rehabilitation services. Health Care Business Screen Business Strength Market Attractiveness Strong Average Weak High Cosmetic Surgeries Changes in consumers taste and requirements Societal and economic requirements Seeks for domination Cancer Treatment Consequences of lifestyle and climatic changes Seek to attract new segments and invest heavily Outpatient Services Stable market and should defend strengths Refocusing the health institution strategy to achieve goals Medium Research and Development Researching on new drugs and equipments Collaborate with other stakeholders Capitalize on hospital specialty Inpatient Services Utilize to mitigate any vulnerabilities that may occur Segmentation to indentify specific segment Physiotherapy Shift and equip those departments that has potential of consumers Low Kidney related medication This is the current specialization Increase in number of such complications Technological advancement and innovation Maximize on technology to attract new consumers Mental related services Decrease in number of patients Review to include other related psychiatric services References Berkowitz, E. (2010). Essentials of health care marketing. Jones & Bartlett Learning Fortenberry, J. (2009). Health care marketing: Tools and techniques. London: Jones & Bartlett Learning Haimowitz, I. (2012). Healthcare relationship marketing: Strategy, design and measurement. London: Gower Publishing, Ltd. Kongstvedt, P. (2012). Essentials of managed health care. London: Jones & Bartlett Publishers Kotler, P., Shalowitz, J., & Stevens, R. (2011). Strategic marketing for health care organizations: Building a customer-driven health system. London: John Wiley & Sons Read More