Healthcare Marketing Segmentation: Generation X - Case Study Example

Healthcare Marketing Knowledge Assessment Name Institution Affiliation Healthcare Marketing Segmentation Generation X This is the organization’s ability to develop and maintain a meaningful competitive advantage by ensuring that it has an in-depth understanding of customer needs together with putting in place an effective sales and marketing process, which extensively ensures that customer needs are excellently addressed. Marketing segmentation in essence is a strategic process that helps in meeting the alignment between product offerings and customer needs (Berkowitz, 2010). In healthcare, there are various market segments, however, this section discusses Generation X market segment. Generation X members are those individuals who were born between 1961 and 1981. They are aged between age 30 and 45 years. Generation X market segment are individuals who are married with kids, and their income range is between $ 50,000 and $99,999. This market segment represents the first true healthcare consumers; given the fact that they are young hence, they are yet to create high demand for healthcare services, however, they are curious thus, they actively seek information. They have a high affinity for different healthcare brands and they are accustomed to shopping for healthcare products as compared to other retail goods and services (Fortenberry, 2009). Accordingly, Generation X patients are considered moderately responsive healthcare advertisements and they favor TV adverts and in-office messages as compared to other media. They also have a natural habit of consulting inline information sources as well as review and rate sites. Important to understand, they are characterized with having short-term relationship with their healthcare providers and hence switch doctors and physicians based on their recent experiences. Market Segment Selection Criteria Market segmentation as already discussed, is the grouping of consumers into clusters characterized with similar wants to which a business enterprise can tailor their marketing efforts to meet the identified customer needs or wants. There is a criterion that organizations must follow when selecting a given market segment; there are eight market segment selection criteria that an organization can use. Selection of Generation X as a healthcare market segment was arrived as follows: 1. Generation X market segment is identifiable and can easily be profiled. From the above discussion, it is evident that Generation X members for a large percentage of the current global population, they are more enthusiastic about healthcare information, they crave knowing more about their health status, they have a good and stable annual income (Fortenberry, 2009). For these reasons, they are easy to identify and profile. 2. It is important for the selected market segment to be accessible; given the fact that Gen X members are available then they can easily be accessible and can be reached through various promotional and distributions activities. 3. Gen X members as already discussed are enthusiastic about healthcare information; in this regard, they are likely to buy healthcare products and/or services. 4. They have a stable annual income and hence they are able to buy healthcare products and services 5. The market segment selected must and should be profitable; Gen X market segment have the ability to buy healthcare products and services and hence the segment is largely profitable to the organization. 6. The segment should desirable; Gen X is a desirable market segment given the above characteristics. 7. The market should also be consistent with each other; Gen X members provide a consistent market. 8. Availability; Gen X forms a larger percentage of the global population and hence they are readily available. Socio-demographic Segmentation and Geographic Segmentation in UAE Market segmentation is a process through which customers or potential customers in a market are split into different groups within which they share same interests in the same or comparable set of needs that are satisfied by a distinct marketing proposition. A market can be segmented based on geographic, demographic, psychographic and/or behavioral aspects. Socio-demographic segmentation is a process of market segmentation whereby the market is divided into specific segments based on demographic variables such as age, gender, family size, and life cycle (Berkowitz, 2010). Age for instance, it is believed that consumer needs changes with age and for this reason, the marketing mix must be adapted based on which market segment(s) are being targeted. Gender, on the other hand, divides the market into two distinct groups based on sex; this is mainly prevalent in cosmetics, clothing, and magazines industries. Men’s products are wholly distinguished from female products. Life-cycle stage is used when the market is divided into groups based on which stage in the life cycle (Fortenberry, 2009). And lastly, individual income is another factor that is used in socio-demographic market segmentation. Geographic segmentation is involved with dividing a market based on the variables such as region; this is where the market is divided by continent, country, state, and/or neighborhood. The size of the metropolitan area; here the market is segmented according to the size of the population. Accordingly, population density is another variable that is used; for instance, the market is classified as urban, suburban, or rural (Berkowitz, 2010). The climate is also largely used; in this regard the market is segmented based on the weather patterns common to certain geographic regions. The United Arab Emirates (UAE) is a Muslim dominated and hence the role and value of individual consumers are extremely different from those in the western world. For instance, the main social and economic unit in UAE is the family, which is regarded as a consumption unit. Given this reality, the UAE market can be segmented based on socio-economic factors such as income and family social status. These are key socio-demographic factors and hence, the UAE market can be divided socio-demographically. In the same line of discussion, gender and ethnicity are other essential attributes considered in market segmentation in the UAE. For instance, it is vastly understood that the Arab world is divided into two distinct groups; men and women. In this regard, business organizations largely use gender in segmenting the market. Geographic market segmentation is also applicable in the UAE; marketers can employ different demographic market segmentation variables in targeting different consumer groups (Fortenberry, 2009). For example, the needs of individual living in urban are virtually different from those of people living in rural areas. Similarly, urban centers are characterized high population and hence the marketing mix tools directed towards this densely populated area are different from those ones used for targeting less populated rural areas. Based on this discussion, healthcare markets in the UAE can be segmented socio-demographically and/or geographically. Cohort Groups in the UAE A cohort is a group of people bound together by a set of events in history and has a significant impact on the marketing activities of a company. Major historical events have the capacity of forming and/or shaping attitudes that have potential impact on people as they age. In the healthcare industry various assumptions are made with regard to how different patients of different ages act in a certain way; from the cohort perspective, this can only be true with regard to a specific cohort (Berkowitz, 2010). For example, different cohort comes with different sets of attitudes and values. Given this comprehension, healthcare organizations have the obligation to respond according to the changing strategies and tactics of each cohort. In the US for example, there are several major cohort groups including: Depression; this cohort represents individuals who were born between 1912 and 1921 a period that the world experienced great depression. These individuals are strongly driven by financial security and hence paying their bills is their core concern. World War II; they were born between 1922 and 1927; they came of age during World War II. They are characterized as being great patients as they were used to accepting authority Post War; individuals in this cohort were born between 1928 and 1945 and they came of age during the times when conformity was promoted. They have great trust and believe in institutions. Boomers I and II; the leading boomers were born between 1946 and 1952 and were the first individuals to experience television. They are characterized of being self-indulgent and they question almost everything. The trailing boomers on the other hand are more cynical and they covet seeking additional information about their care and treatment. Generation X; were born between 1966 and 1977, these cohort represent those individuals whose both parents had stable jobs and so they were always left at home and let themselves in the school. Similarly, they products of families with high divorce rates; they are said to be politically conservative group (Fortenberry, 2009). Generation Y or N-Gen; this represents young adult’s cohort who were born between 1978 and 1985. This group came into existence during the internet invention and terrorism. They have similar characteristics as World War II group. Millenials; they were born between 1986 and 2000; they highly admire their parents, are ambitious, like being inclusive and serving the community (Berkowitz, 2010). They represent a tech savvy group; are connected 24/7, have no life without computers. Significantly important, multitasking is their way of living. Similarly, they regard the internet more than television. The above discussed cohorts represent different age groups with their different characteristics and how they see life. In the UAE, there are three main cohorts to which healthcare organizations can use to segment their market; Generation X, N-Gen and Millenials. This is due to the fact that, the UAE did not extensively experience the previous events. Additionally, the UAE has a closed culture and the internet and terrorism have largely tried to put them on the world map. Branding Strategies There are four main branding strategies that a company can use in branding its products and/or services (Berkowitz, 2010). These strategies include multiproduct strategy, multi-brand strategy, Reseller, and Mixed strategies. A brand strategy is a vital tool essential in the establishment of a product within a market as well as builds a brand that is able to grow and mature in a marketplace that is saturated. Multiproduct strategy This branding strategy demands that a company places the same brand name on all products in its line regardless of the risk that some products have dissimilar qualities or are not as good as others. This branding strategy is largely used by healthcare organizations; for instance, the health organizations uses the same name for its walk-in emergence centers, outpatient surgery center together with its industrial medicine program. The main reason for using this strategy is to enhance brand equity. Dar Al Shifaa is a privately owned hospital in Abu Dhabi Cit and uses this brand strategy to market its various healthcare products and services. Multi-brand strategy In this strategy the company places a different name on each product despite of the fact of products falling in the same product line. Organizations use this strategy particularly they are producing products for different market segments (Berkowitz, 2010). In healthcare industry, a company can use this branding strategy when its history, it might have a poor public image and hence it can decide to use a different name in another location. John Hopkins International is a US based hospital however; different hospitals in the UAE are managed by it under different names including Al Rahba Hospital, and Al Corniche Hospital. Reseller strategies This is where one company sells its products under the name of another company. Small manufacturing companies extensively use this strategy. In this regard, the small company takes advantage of the existing market pre4sence of the reseller. In healthcare industry, this strategy was initially limited; however, due to the increase in the use of integrated delivery system it has gained potential. For instance, healthcare companies can offer turnkey rehabilitative medicine service to various systems, but provide this service under the name of a specific integrated delivery system. Tawam Hospital, Al Ain is the best example here; it is managed by John Hopkins International. Mixed Strategy This is where an organization markets its products under its own name as well that of a reseller. In healthcare industry, large territory laboratories can provide medical service such as pathology on its own but also it can contract small community hospitals to provide the same service without identification with the laboratory name. John Hopkins International is the best example. References Berkowitz, E. (2010). Essentials of health care marketing, 3rd Ed. London: Jones & Bartlett Publishers. Fortenberry, J. (2009). Health care marketing: Tools and techniques. London: Jones & Bartlett Publishers. Read More