Health Care Marketing

Chapter 6- Health Care Marketing

1.        According to Buchbinder & Shanks, (2012) marketing is defined as the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, and society as a whole (Buchbinder & Shanks, 2012, p. 96.). The main principles of marketing are to satisfy customers, target the 'right' customers, facilitate exchange relationships, stay ahead of competitors and enhance profitability. These principles are essential for managers to understand and satisfy their customers in the health care industry. The person receiving care must be pleased with the services received from the health care facility, and the health care facility must likewise be satisfied with the financial reward received in the exchange. The hospital that adopts the key components of the marketing concept is likely to identify patients needs, provide products and services at an acceptable price and stress the benefits through promotion. The most important reason to satisfy customers seeking medical service is that they will become repeat customers or users of the facility. Consumers want to feel they are getting the most value for their money, and this includes the health care industry. Therefore, marketing mainly consists of satisfying target customers while striving to seek their loyalty and consumption.

2.        In the past, healthcare organization were slow to incorporate marketing because many felt it was an inappropriate and unethical practice (Buchbinder & Shanks, 2012, p. 99). Many critics of healthcare marketing doubted this type of strategy could even work in the industry (Buchbinder & Shanks, 2012, p. 99). The blame for this assumption was due to the fact that there was no traditional buyers and sellers as in other industries (Buchbinder & Shanks, 2012, p. 99). Third party systems in the United States also prevent the consumer from being directly responsible for the decision making and cost of the medical treatments they may receive (Buchbinder & Shanks, 2012, p. 99). They thought marketing directly to the customer would have no effect on the utilization of a particular health care organizations facility (Buchbinder & Shanks, 2012, p. 99). It is potentially falling under scrutiny again because impacts of marketing have been made clear over the years (Buchbinder & Shanks, 2012, p. 108).

3.        Studying the market begins with understanding members’ wants and needs, likes and dislikes, and recognizing and addressing their special traits. Market segmenting is the process of dividing the total market into groups or segments that have similar needs for products and services (Buchbinder & Shanks, 2012, p. 103). Segmenting the consumers geographically by establishing where they live and work. It also includes determining their proximity to care and supportive services. Demographic segmenting can also be useful because it can give insight into appropriate age, gender, education, social, economic status and culture approaches. Insight into the cultures in the segment population helps produce differentiated messages, strategies, and tactics for each audience segment. Targeting helps the health care manager better serve their consumers on a personal basis. It can also dramatically increase the effectiveness of healthcare. Target segment selection can also benefit managers because it can help cut costs along with influencing healthy behaviors of their target audience. For example, consider the older population as a segment population, many from this demographic are between retirement or choosing long-term care facilities to spend the remainder of their lives (Buchbinder & Shanks, 2012, p. 105). While trying to select a facility, they may be turned off by terms such as old folks home and nursing home (Buchbinder & Shanks, 2012, p. 105). Hence, many long-term facilities are marketed as independent living or assisted living depending on its demographics level of mobility.