Strategic Evaluation of the Healthcare Services Industry in the Market - Case Study Example

Marketing Plan-Healthcare Services Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Situational Analysis 3 2.1 Strength 4 2.2 Weaknesses 5 2.3 Opportunities 5 2.4 Threats 6 3.0 Recommendations 7 3.1 Price 7 3.2 Place 8 3.3 Product 8 3.4 Promotion 9 4.0 Conclusion 9 References 10 1.0 Introduction Marketing is an increasingly growing organizational component in the market. In this regard, the organisations in the global market have applied increasingly innovative marketing strategies. However, one of the most challenging industries is the service industry. Due to the lack of a separation between the services and their providers, marketing in this industry is imperatively hard. This marketing report offers review evaluation for marketing medical services by respective healthcare organisations. In this regard, the evaluation seeks to develop a strategic approach through which the respective organisations and healthcare providers can successfully market their services. As Lambert, Rogers and Tang (2000, p.44) noted, the healthcare industry is highly challenged due to the nature of trust and professional diligence and expert qualifications required of the providers and marketers. In order to develop a substantive marketing plan for Medicare services by individual practitioners as well as healthcare providers, the report conducts an initial industry marketing strategies situation. In this case a SWOT (strength, weakness, opportunities and threats) analysis. Subsequently, the marketing plan offers its list of strategic recommendations for efficient marketing of healthcare services. 2.0 Situational Analysis In order to develop an appropriate marketing plan and recommendations for the health care services, this marketing plan report conducted a review of the existing systems and marketing strategies. The rationale and aim of the evaluation was to establish the key issues and components in the existing marketing strategies in the market. In this regard, the evaluation applied the strengths, weakness, opportunities and threats (SWOT) analysis. In this regard, Liu, Xu and Zhang (2010, p.227) argued that the application tool increases the overall audit criticality on organizational systems. 2.1 Strength A strength analysis on the industry seeks to evaluate the situation and existence factors that promote the healthcare services industry success in the market. These are the key areas in which marketing can focus on developing a competitive edge. One of the strategic competitive edges of the industry is growing technology advancements in the medical industry. In this case, the type of medical equipments and services offered quality has radically been increased (Di and Schweitzer, 2005). The application of modern technology has revolutionized the healthcare industry operations. On one hand, it increased the overall quality rates through increased services delivery efficiency and accuracy. Moreover, the approach has enhanced increased delivery costs reduction. Therefore, with technology application, the industry has emerged as relatively affordable and reliable o the consumer base. In addition, the healthcare services industry has an added advantage and strength on its reputation. In this case, the industry has built an increased brand image enhancing increased overall consumer confidence and trust on the providers. This is hedged on the establishment of relevant regulatory requirements for the industry. Through these regulations, the industry has managed to develop quality as well as retain and register only the qualified and expert services providers in the market. The proposed and successful marketing strategies in the industry should focus on taking advantage of these strengths to acquire an increased organizational consumer base control. 2.2 Weaknesses A weakness analysis is involved in the evaluation and establishment of internal systems and operations in an industry that work and serve as its disadvantages in the market. This marketing plan evaluation focuses on establishing these industrial weaknesses and subsequently develops marketing strategies that have features to mitigate against these structures in the market. One of the strategic weaknesses in the industry is the absence of elaborate marketing strategies. In this regard, the industry is built on a professional social platform where marketing and commercialization are new concepts in the model. Therefore, despite the superior organizational services quality, a majority of the industry healthcare industry consumers remain unaware of the products and services existence. Moreover, a major and additional weakness in the industry is the lack of enough and appropriate consumer skills by the staff. In this case, a majority of the organisations have staffed their enterprises with medical professional staffs (Hernandez and O'Connor, 2010, p.138). However, despite their merit of developing and delivering quality services, the staffs have poor relational and consumer care skills that reducing the merits of good customer relations. In order to overcome the marketing challenges in the healthcare industry, the plan should establish marketing strategies that mitigate and resolve these healthcare services industry challenges and weaknesses. 2.3 Opportunities An opportunities analysis offers a review of markets and niches in which an industry has potential and probability of expanding and growing in into the future. Therefore, this marketing plan conducts an opportunities analysis of the healthcare services industry. As such, the plan intends to apply and use these opportunities as the key strategic goals that the respective marketing strategies will be geared at achieving. An opportunities analysis of the industry establishes that the industry is bound to expand with increased technology growth. In this case, the evaluation establishes that expected future changes in the market subsequently reducing the cost per unit of services offered, a virtue imperative in increasing the industry gross profit margin gains in the long run. Similarly, the evaluation establishes possibility for increased market dominance. Currently, due to lack of proper marketing tools, the industry has minimal competitors. Therefore, organisations that target the market through marketing strategies will acquire an increased market control and attain increased profits due to minimal industry competition. Therefore, this plan will focus on attaining these opportunities in its marketing strategies recommendations. 2.4 Threats A threat analysis evaluates the industry factors and issues that risk industry failure and profits reduction in the long run. Strategic marketing strategies serve a critical role of managing the risks of such threats through either helping organisations mitigate or avoid them. An evaluation of the healthcare industry establishes that the industry, despite its large base of future market opportunities, face the risk of changing government regulations. In this regard, it is expected that there will be increased regulation and control of the industry by respective national governments into the future. In this case, Greenberg (2002, p.39) stated that such regulations would either reduce the overall industry growth as well as the ability and potential of the services providers to appropriate deliver the desired quality and affordable healthcare services. Moreover, the industry faces the risk of increased competition into the future. Currently, the industry is in its growth stage in the lifecycle. As such, it is expected that it will continue to receive an increased number of investors and services providers into the future. Such increased supplier has the potential of reducing the overall profit margin for respective margins, a development that might lead to the withdrawal of some of the industry players. 3.0 Recommendations Based on the healthcare services delivery SWOT analysis, this marketing plan develops an ideal marketing plan for the eventual success in marketing the healthcare services. In developing these recommendations, the plan outlines the respective four marketing strategies and how each of the marketing mixes can be applied as a marketing strategy in the market. In this case, the discussed four strategies are price, place, product and promotion respectively. 3.1 Price The price represents the value and cost incurred by the consumers for the services they receive. In this case, Baslevent (2006, p.158) argued that prices charged on the services enable the organizations and services providers to cover their operational expenses as well as earn profits. In order to increase market influence, the service providers should apply a discriminative price approach. In this case, consumer markets should be segmented based on their earnings where those with higher earnings are charged higher prices and the low earners are charged relatively low prices. As such, this would increase the service providers’ market influence and penetration and influence across the market. Moreover, as already argued, increased technology growth is expected to reduce on the overall organizational service delivery costs (Chalice, 2005, p.17). Therefore, in order to create increased market penetration and growth, the service providers should adopt the cost leadership approach. Through this approach, costs and prices would be held at minimum reducing short run profit margins but ensuring the margins rise in the long run. 3.2 Place The place element of the marketing mix represents the availability of the marketed products. The delivery and availability of the healthcare services require the physical presence of the healthcare services providers. As such, this marketing plan develops a marketing recommendation for increased staff members. Currently, a majority of the healthcare services providers have a centralized management system where major decisions are made by the executive management. However, this report recommends a change from these values. In this case, the plan advocate for the recruitment and hiring of qualified staff. In this case, decision making should be diversified and decentralized. Through decision making decentralization as Romeo (2003, p.89) argued, there is increased decision making speed. Therefore, the delivery of services speed would be considerably increased in the long run. Through the empowerment of the staff and service providers, the industry players will in the long run enhance speedy services delivery in the market. 3.3 Product A product in the market mix represents the actual delivered product to the consumers either the actual goods or the services. The product is the actual product consumer by the consumers and influences the satisfaction and loyalty levels in the market. In this regard, in order to increase the services quality, this marketing plan recommends that the industry should consider the application of increased modern technology. The application of modern technology in the industry as Kongstvedt (2001, p.276) stated, increases the services quality and reliability. This would ensure that such services meet the consumers’ needs and wants, thus enhancing satisfaction and loyalty. Moreover, under the product enhancement, this plan recommends that the service providers should focus on specific market needs. In this case, Ghodeswar and Vaidyanathan (2008, p.63) stated that specialization increases skills and efficiency a virtue imperative in enhancing services delivery quality improvements. 3.4 Promotion Lamb, Hair and McDaniel (2012, p.471) described a promotion marketing mix as the approach and strategy through which providers in market reach out to the consumer base. These are the strategies and approaches through which the organisations reach out to the market base. This market plan recommends that due to the professionalism and expert nature of providers required in the market, the industry should adopt the endorsement promotion approach. In this case, the approach would adopt and use role models and reputable healthcare industry professionals. Through this approach, the consumers’ confidence on the quality of the proposed services would be enhanced thus increasing the industry service provision consumer base. 4.0 Conclusion In summary, this marketing plan has developed a strategic evaluation of the healthcare services industry in the market. As such, the evaluation develops the industry SWOT analysis in the market. In this case, the evaluation stimulates the development of strategic marketing strategies recommendation. Subsequently, the evaluation establishes that the use of price discrimination, employment of qualified staff, use of technology and endorsements as the key marketing strategies for the healthcare services. References Lambert, B. J., Rogers, W. J., & Tang, F.-W. 2000, Polymers in medical applications, Rapra Technology Ltd Shawbury, Shrewsbury. Liu, Y., Xu, C. & Zhang, Y. 2010, "An Analysis on the International Competitiveness of China's Traditional Medicine Industry Based on the SWOT Model", International Journal of Business and Management, vol. 5, no. 7, pp. 225-229. Di, T. M. R., & Schweitzer, S. O. 2005, Health policy and high-tech industrial development: Learning form innovation in the health industry, Edward Elgar, Cheltenham, UK. Hernandez, S. R., & O'Connor, S. J. 2010, Strategic human resources management in health services organizations, Delmar Cengage Learning, Clifton Park, NY: Greenberg, W. 2002, Competition, regulation and rationing in health care, BeardBooks, Washington, D.C. Baslevent, C. 2006, "Price discrimination across indications in the pharmaceutical industry: The case of finasteride", METU Studies in Development, vol. 33, no. 1, pp. 155-160. Chalice, R. 2005, Stop rising healthcare costs using Toyota lean production methods: 38 steps for improvement, ASQ Quality Press, Milwaukee, Wis. Romeo, L.G. 2003, "The role of external assistance in supporting decentralization reform", Public Administration & Development, vol. 23, no. 1, pp. 89. Kongstvedt, P. R. 2001, The managed health care handbook, Aspen Publishers, Gaithersburg, Md. Ghodeswar, B.M. & Vaidyanathan, J. 2008, "Organizational Adoption of Medical Technology in Healthcare Sector", Journal of Services Research, vol. 7, no. 2, pp. 57-81. Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2012, Essentials of marketing, South-Western Cengage Learning, Mason, Ohio. Read More