A New Maternity Care Product Line - Essay Example

MARKETING RESEARCH - FOR A NEW MATERNITY CARE PRODUCT LINE NORTON CHILDREN'S HOSPITAL Table of Contents Executive Summary Backgroundand Management Problem Aims of the Research Research Design and Procedures Samples Details on the Nature of the Samples to be Used Importance of Selected Factors According to Gender and Education Differences in Importance of Selected Factors Contribution of Factors to Frequency of Use Interpretation of Findings Conclusions Recommendations Reference List Appendices Executive Summary The management of the hospital is entertaining the idea of introducing and establishing a full-service maternity care product line that will cater to the local market and which will maximize earnings. This idea arises from the fact that the capabilities to extend such services are present and there are no visible hindrances or stumbling blocks in venturing into the new project. In conjunction with this main objective, there must also be a determination as to how extensive that maternity care product line shall be. (Please refer to Appendix A) The project is necessarily along the global awareness of women's healthcare which must be addressed fully and properly and which must be given high priority.1 This alone is a given sales incentive. Background and Management Problem Assessing the viability and feasibility of the new product line under consideration, it is necessary and imperative to identify the problem which, when solved, will guide the management regarding the relevant implementation of the novel program. Along this line, a marketing research is required to produce the needed information. (Please see Appendix B.) As far as identifying the problem, there is actually none. This is being stated because the hospital has the capabilities to introduce and establish the proposed maternity care unit. It is only as to how extensive the new product line should be to capitalize on the local market, which indeed appears to be a captured market, and to therefore maximize the earnings of the hospital. The concern of the top hospital men is therefore more on the leverage of answers rather than of a problem. There are no problems. Instead, there are answers that must be sought in making the final decision on whether or not to push the project. Aims of the Research The aims of the research is (1) to obtain as much information on the reaction of the local market to the idea of establishing a full-service maternity care department or division in the children's hospital, and (2) to document all these information and data to become the basis of management on whether or not to so push through with the introduction and establishment of the new product line. Research Design and Procedures The research design uses statistical data gathering with 270 respondents in the local community. The demographical spreads are divided into age, gender, marital status, education and income. Upon the other hand, the questions regarding preference have been anchored on the reputation of the hospital, quality of care, distance from home, advice from doctor, advice from friends, advertisements, friendliness of the staff, maternity facilities, nursery facilities and maternity insurance. In the end, the results will be quantified as to maximum, minimum, median and mean. The survey taking is to be done directly on a person-to-person basis for each respondent as this is the most effective approach. In sum, statistics will be the prime source of information and data that will serve as the main tool in the decision making process as envisioned by the management of the hospital.2 Results of the Samples 1. Overall demographics Among the respondents, the most come from females, married, aged 26 to 40, have obtained some college education, and with income range from 70,000 to 99,000, while the least come from males, never married, aged 41 to 55, high school graduates, and those with income less than 20,000. (Please refer to Appendix E.) 2. Interest in the Idea of a Children's Hospital For those surveyed on the convenience of related services, the highest come from the ones who responded that this consideration is the most important, that is, 4 in a grade of 1 to 6. For those surveyed on the availability of full maternity services, the highest likewise come from the respondents that it is the most important factor, that is, also 4 in a grade of 1 to 6. This shows that most of the respondents will buy the idea of having the new maternity care product line because to them the convenience of related services and the availability of full maternity services are the determining factors in deciding that the new product line is interesting to them. (Please refer to Appendix D.) 3. Important Factors in Hospital Selection The statistics shows that there is not much variances among the factors being considered by the respondents in selecting an hospital. These factors are reputation of the hospital, quality of care, distance from home, advice from doctor, advice from friends, advertisements, friendliness of the staff, maternity facilities, nursery facilities and maternity insurance. However, friendliness of the staff appears the most favored while the advertisements factor is the least. Emphasis must also be given to the fact that the reputation of the hospital and the quality of care have garnered relatively high ratings. These are very serious considerations especially because the intended market is in the local community. In sum, they will no longer go to some other healthcare institutions when there is one nearby which has a good reputation and which is impressed with good quality of care. (Please see Appendix C.) Details on the Nature of the Samples The details of the samples used in the statistics for the subject marketing research are very exhaustive or all-encompassing. .There is no need for a wider coverage. Importance of Selected Factors According to Gender and Education The importance of the selected factors according to gender and education has to be stressed in the decision-making process because these can be directly related to the population of the local market which is the projected source of sales and earnings for the new product line. Differences in Importance of Selected Factors As earlier mentioned, the least among those surveyed come from males and those who are only high school graduates in education. This group may not possibly be a significant portion of the intended market. On another note, the most among those surveyed come from females and from those with some college education and these groups are usually the dominant ones. Contribution of Factors to Frequency of Use The contribution of the relevant factors to the frequency of use of the offered services is material and important. This is so because, for instance, a young female patient will most likely visit the maternity center more often than an older one in a specific age range. On the other hand, one who earns the minimum among the groups in the census, is not expected to avail of the new services. It is a sad observation but it is a fact that those who are financially limited are the ones who are hardly within the reach of quality healthcare benefits. 3 These all go to show that each respondent and his or her reactions to the survey must be evaluated on such circumstances as do affect his or her decision. This must be the precise reason why those with low income tend not to avail of the new services than the affluent survey subjects. Interpretation of Findings In view of the results of the survey and the statistical data and information so far gathered, the figures readily suggest the viability of the proposed full-service maternity care product line. However, these matters have to be synchronized with those in the final recommendations. Conclusions All the factors and variances having been considered, it is the conclusion of the marketing research that there is sufficient justification that the local market is ready and prepared to welcome the new product line albeit a modified decision can be reached by taking into account some alternative actions pursuant to the spirit of the recommendations below. Recommendations The results of the survey in general are such that the hospital may be able to absorb a portion of the local market for the new facilities, that is, the full-service maternity care division or department. This can be done without detriment to the existing facilities and without serious concerns on cost burden. As is the assessment of the hospital management, it has currently the capabilities to establish the new service unit. This means that no material costs for its organizational and pre-operating stages will be incurred. It is therefore worth the risk or the gamble. It is admittedly common knowledge that organizational and pre-operating costs and expenses are always in significant amounts. As a matter of fact, these are amortized over the number of years of their usefulness.4 In the instant case of the hospital, it already has the existing allied facilities and amenities related to the operation of a new full-service maternity care unit as an added feature. This means that there is not much need for huge amounts to establish the supplemental service. If any, the incidental costs and expenses appurtenant to the installation of the new product line under consideration will not involve big money, not to mention the fact that the hospital is readily capable of going on with the project. It must be stressed though that the results of the survey regarding the statistics which should have been obtained pertaining to the given factors are not significant. There was that possibility that the respondents did not fully answer the questionnaires. Under this predicament, it is strongly suggested that a new survey be conducted with greater focus to obtaining more responsive answers to the given queries. The new census will not take so much longer time as was the previous one. And the results of the former will lead to a wiser and more informed decision. While it was remarked that there will be not much of a risk if the hospital launches the new facility, it is more advisable to double-check the figures so that each move in the implementation phases will be calculated with due diligence. Appendices Appendix A Case Study 7.5 - Norton's Children Hospital Appendix B Set of Questionnaires for Case Study 7.5 - Norton's Children Hospital Appendix C Table showing importance of factors Appendix D Tables showing data and information regarding an interest in a children's hospital Appendix E Tables showing overall demographics Reference List Healthcare Reform Priorities for High Quality, High Value Maternity Care, an Essential Component of Women's Health Care Across the Life Span, Childbirth Connection , April 2009, accessed May 24, 2009, Statistics, Wikipedia, accessed May 24, 2009, which states that it is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data x x x It also provides tools for prediction and forecasting based on data. It is applicable to a wide variety of academic disciplines, from the natural and social sciences to the humanities, government and business.x x x, accessed May 24, 2009, Factors that Influence Health Care Coverage for Low-Income Populations Under Welfare Reform, Center for Advanced Studies in Child Welfare,Jessica Toft, MSW, University of Minnesota, David Hollister, PhD, University of Minnesota Mary Martin, PhD, Metro State University Ji-in Yeo, MSW, University of Minnesota, accessed May 24, 2009, http://cehd.umn.edu/SSW/cascw/attributes/PPT/Factors_Health_ Developmental and Pre-operating Expenses, Etc., Babylon, accessed May 24, 2009, Read More