Rudiments of Healthcare Marketing and Marketing Management
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Marketing Concept and
Marketing Orientation
The marketing concept is a
philosophy of searching out and satisfying the specific needs and wants of
customers no matter what, whilst at the same time creating value for the firm
that has made fulfillment of these needs and want its business (Eckrich
& Schlesinger, 2010).
Following the marketing concept can yield some great dividends, in terms of profitability and the like, provided the company in question does a better job than its competitors. Hence, there is therefore the need for every function of the organization participates in the marketing concept until it becomes a way of life, with the customer at the centre of every activity undertaken by the organization (Liu et al, 2002).
Research finding by Friar (2001) indicate that, “one percent increase in satisfaction can produce up to a three percent increase in capitalization.” Along this vein, Eckrich & Schlesinger (2010) suggest that any interaction between the customer and the service provider (i.e. the company), leading to an exchange of value “must be carefully analyzed, understood, and managed to ensure each party’s maximum satisfaction.”
Following the marketing concept can yield some great dividends, in terms of profitability and the like, provided the company in question does a better job than its competitors. Hence, there is therefore the need for every function of the organization participates in the marketing concept until it becomes a way of life, with the customer at the centre of every activity undertaken by the organization (Liu et al, 2002).
Research finding by Friar (2001) indicate that, “one percent increase in satisfaction can produce up to a three percent increase in capitalization.” Along this vein, Eckrich & Schlesinger (2010) suggest that any interaction between the customer and the service provider (i.e. the company), leading to an exchange of value “must be carefully analyzed, understood, and managed to ensure each party’s maximum satisfaction.”
Characteristics of
Market-Oriented Organisation
They are responsive
to the needs of customers, both expressed and latent (Slater &
Narver, 1998). They are only satisfied if the customer is satisfied.
In a market-oriented organization, every activity and function of the organisation revolves around satisfying the needs and wants of the customer. There is a customer-centric culture.
Products and services of organisation are customized to
the needs and wants of customers.
Benefits of Market-Oriented
Organisation
In market-oriented organization, efforts
geared towards making product/service available are more focused and
coordinated since all functions of the business are working towards one
objective – satisfaction of the needs and wants of the customer. This
enhanced focus eliminates ambiguity and misalignment of priorities amongst
the various units of the business. This approach leads to sustainability of the profitability of the organisation. This is because attending to the needs of customers produces customer satisfaction, which engenders customer loyalty.
Gives leverage to the organisation’s marketing efforts because of the information it has earlier collected during attempts to understand the needs and wants of the customer.
Developments in Healthcare
Marketing
During
the 1950s, when marketing as a field was slowly but steadily emerging,the
healthcare industry was essentially far removed from these new
developments (Thomas, 2005). At the time, it was even considered
unethical to engage in marketing of healthcare. The production orientation
prevailed, which was the provision of quality service. During the 1960s, public relations (PR) increased as the healthcare industry boomed. PR was the main means by which the hospital kept in touch with those who brought them business - the admitting or referring physicians and the donors who give philanthropically in support of the hospital (Thomas, 2005). During this period, the consumer was not a factor in the scheme of things, as s/he came to be in the hospital, not by choice but by referral.
In the 1970s, the hospitals actually began to take moves to attract patients, something that had never happen before. Around this time, the healthcare industry had come into the limelight; "legal restrictions on marketing were loosened"(Thomas, 2005). The sales era had begun.
Marketing in Healthcare became fully fledged in the 1980s. The healthcare market was no longer a seller's market but a buyer's (Thomas, 2005). This shift had a deep and lasting impact on the marketing of healthcare. This shift may also have been influenced in part by the institution of the prospective payment system.
During the 1990 period, the healthcare industry had become market driven.Hospital policies and procedures were given a second look to accommodate the perspectives of patients. "Every hospital was now trying to win the 'hearts and minds' battle for the healthcare consumer"(Thomas, 2005).
Marketing Strategies to
Market a Healthcare Facility into a Market-Oriented Facility
To market a healthcare
facility into a market-oriented facility, there is the need for the deployment
of market-oriented strategies.
Under the market-penetration
strategy (existing market/existing product) entails attempts to
increase sales and induce greater patronage by existing customers. It also
involves acquisition of customers from competing healthcare facilities, as well
as attracting the patronage of the masses who will ordinarily not visit a
healthcare facility (Thomas, 2005).
Under the market-development
strategy (new market/existing product), new markets for the
organization’s services are unearthed as well as identifying areas where reach
of healthcare services is poor (Thomas, 2005), thus necessitating the
establishment of new distribution channels in those geographic areas.
Niche strategy: There may be certain aspects of the organization’s offering that
may not be able to succeed in competing for the mainstream market.
Concentrating on niche markets on the basis of geography and population groups
could prove very useful in regaining some lost market share for this particular
offering (Thomas, 2005).
Frontal-attack strategy: “the organization decides to confront the market leader or major
competitors head on” (Thomas, 2005).
Flanking strategy: Under this strategy, the organization outflanks the competition
by entering new markets, cultivating new populations, or offering fringe
products (Thomas, 2005).
References
Abrokwa, D. (2011). Impact
assessment of promotional effectiveness of the automobile industry in Ghana.
Kwame Nkrumah University of Science and Technology. Retrieved from
http://dspace.knust.edu.gh:8080/xmlui/bitstream/handle/123456789/2255/KNUST
Library.pdf?sequence=1
Adekura, G. (2009). Impact of
Customer Relationship Management on Customer Satisfaction in the Automobile
Retail Industry_a case of selected auto firms in Ashanti Region.pdf. Kwame
Nkrumah University of Science and Technology.
Bank of Ghana. (2015). Interest rates and inflation. www.bog.gov.gh/#, date accessed 03/1/2015
Budget Statement. (2014). Available at
www.presidency.gov.gh/budget2014.pdf, date accessed 20/2/2015.
Eckrich, D. W., & Schlesinger, W. (2010). An application of the marketing concept in health-care
services planning : a case report. Journal of Management and Marketing
Research, 5(1), 1–9.
Friar, B. (2001). High Tech the Old
Fashioned Way. Harvard Business Review, March.
Ghana
Statistical Service: Provisional GDP for 2013.
www.statsghana.gov.gh/docfiles/gdp/provisional_gdp_2013.pdf, date accessed
20/2/2015
Liu, S.S., Luo, X., and Shi, Y. (2002)
Integrating customer orientation in organizations –in- transition: an emprical
study. International Journal of Research in Marketing, 2002, Vol. 19: 367-382.
Slater, S. F., & Narver, J. C.
(1998). Customer-led and market-oriented : let ’ s not confuse the two, 1006(January
1997), 1001–1006.
Thomas, R. K. (2005). Marketing
Health Services. Foundation of the American College of Healthcare
Executives.
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