Health services continue to affect the gross domestic product, and this dramatic transformation has great demands on each dollar spent to deliver patient-centered products. Health care marketing must be repeatedly applied and practiced strategically to include environmental dimensions, such as technology, socioeconomics, competition, and regulatory.
In today’s global economy, investors and potential entrepreneurs must tap into the so-called “unexplored” market. In this aspect, health care establishments must use marketing, advertising, as well as sales strategies when pursuing new customers. For example, suppose a health care investor wanted to build a small hospital in a rural community – this would entail exploration and logistical experimentation to determine who will patronize the facility. In an impoverished neighborhood, the feasibility of having lucrative profits may see diminishing returns. So the venture may be not worth the effort. Also, suppose that the potential investor wants to sell mosquito deterrents (such as bedside netting in malaria-infested regions of Asia or Africa). In that case, it would be wise to investigate the number of beds that are in the village, and who would be willing to purchase them. These activities consider the investor portfolio, as well as the feasibility of marketing and selling the product. Such exploration also examines competitors, cultural differences, and – most important – identification of the customer.
Using the health care organization you identified in the learning activity last week, determine its product development practices. Use the concepts from previous weeks to substantiate information, as needed. You may develop the discussion based on the ideas presented here, but feel free to inject any relevant marketing strategy that you believe might support your presentation.
Write a 3-4 page paper in which you:
Justify the purpose of the selected health care establishments’ product(s) / service (s) and their associated life cycle(s).
Suggest one strategy to improve the marketing mix of the selected health care establishment. Support your strategy by highlighting one benefit of portfolio analysis and providing two examples that display differential advantages.
Discuss the impact of possible economic decline on product-market expansion and how it can affect business planning based on the global operating environment.
Assess the importance of technology in providing patients with clear and accessible information about health care organizations and the product(s)/service(s) that they provide.
Use 3-4 sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Propose product development strategies for a health care organization that impact the marketing mix, the use of technology, and marketing research.
Expert Solution Preview
The purpose of this assignment is to analyze the product development practices of a selected health care establishment and propose strategies to improve its marketing mix. Additionally, the impact of economic decline on product-market expansion and the importance of technology in providing clear and accessible information to patients will be discussed. The analysis will be supported by credible and relevant sources.
The selected health care establishment, XYZ Hospital, offers a wide range of products and services to meet the healthcare needs of the community. The purpose of these offerings is to provide comprehensive and high-quality healthcare services to patients, maintain their well-being, and improve health outcomes. XYZ Hospital aims to address the diverse healthcare requirements of patients throughout their life cycle, from birth to old age.
The product/service life cycle concept is crucial in understanding the development and management of healthcare offerings. XYZ Hospital’s products and services go through different stages of the life cycle, including introduction, growth, maturity, and decline. For example, the introduction stage involves the launch of new medical technologies, treatments, or specialized services to meet evolving patient needs. The growth stage focuses on expanding the reach and utilization of these offerings, while the maturity stage involves maintaining the quality and optimizing processes. At the decline stage, XYZ Hospital evaluates the effectiveness and relevance of certain products/services and may consider phasing them out or replacing them with more innovative options.
To improve the marketing mix of XYZ Hospital, a strategic approach known as portfolio analysis can be applied. Portfolio analysis involves evaluating and managing healthcare offerings as a portfolio of investments to maximize results. One benefit of portfolio analysis is that it enables XYZ Hospital to allocate its resources effectively and prioritize investments based on their potential returns and alignment with the organization’s goals.
One example of a differential advantage achieved through portfolio analysis is the identification of high-growth potential services. By analyzing the market trends and patient needs, XYZ Hospital can identify healthcare services that have a higher demand and growth potential. This allows the organization to allocate more resources and marketing efforts towards promoting and expanding these services, ultimately enhancing the overall marketing mix.
Another example of a differential advantage is diversification within the product/service portfolio. XYZ Hospital can offer a range of services that cater to various patient segments, thereby minimizing the risk of relying solely on one offering. For instance, by offering both primary care and specialized services, XYZ Hospital can capture a larger market share, address different patient needs, and effectively compete with other healthcare establishments.
Possible economic decline can have a significant impact on product-market expansion and business planning in the global operating environment. During economic downturns, consumers may face financial constraints and prioritize essential healthcare needs over non-essential services. This can lead to a decline in demand for certain healthcare offerings, affecting product-market expansion plans.
Additionally, economic decline may result in reduced healthcare budgets and reimbursement rates, affecting the financial viability of healthcare establishments. This can hinder their ability to invest in product development and marketing initiatives. In response to economic decline, business planning should focus on cost optimization, identifying untapped market segments, and adapting offerings to meet changing consumer preferences.
In today’s digital era, technology plays a crucial role in providing patients with clear and accessible information about healthcare organizations and their products/services. Technology enables XYZ Hospital to effectively communicate and engage with patients, improving their overall experience and satisfaction.
One important technology in this context is the use of electronic health records (EHRs). EHRs facilitate the storage, retrieval, and sharing of patient information, making it easily accessible to both healthcare providers and patients. By having clear and accessible information about healthcare organizations, patients can make informed decisions regarding their choice of provider and treatment options.
Moreover, technology-driven platforms such as patient portals and mobile applications allow patients to access information about XYZ Hospital’s services, book appointments, and communicate with healthcare professionals. These platforms provide convenience, enhance patient engagement, and contribute to building trust between patients and the healthcare organization.
In conclusion, the product development practices of XYZ Hospital aim to provide comprehensive healthcare services throughout the patient’s life cycle. By applying portfolio analysis and leveraging technology, XYZ Hospital can improve its marketing mix, address economic challenges, and provide patients with clear and accessible information about its offerings.