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.”

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.

They Measure success in terms of the number of satisfied customers and not by profits. This is because it is the satisfied customers that bring the profits.

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.

They tend to be keen on the acquisition and the evaluation of market information (e.g. needs of customers, capabilities of competitors), in a logical and pre-emptive manner (Slater & Narver, 1998).

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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