MHA6080 WEEK 3 DISCUSSION AND PROJECT INSTRUCTIONS

MHA6080 WEEK 3 LECTURE

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Market Growth

In order to remain competitive in the market, an organization must be able to meet the needs of its consumers. This is the concept of strategically positioning an organization in the marketplace. Organizations can remain financially viable if they remain strategically positioned in the market. This is accomplished by ensuring that the products/services provided are indeed what the consumer is demanding and are offered at a price that the consumer is willing to pay. Likewise, if an organization desires growth, it must do one of the two things:

· Expand existing services to a new market.

· Offer new services to the existing market.

Depending on market conditions, it may be beneficial for an organization to expand its existing services to a new market. This includes opening branches in new locations, partnering with other organizations to expand services to a new demographic, or offering similar services in a new delivery method (walk-in clinic available in a mall). An example of an organization expanding existing services to a new market is DaVita (2017) dialysis. This kidney care organization has expanded its dialysis services to more than 2,500 outpatient dialysis centers in the United States. Their ability to replicate existing services to meet the needs of a new market help them remain financially viable and competitively positioned in the marketplace.

Likewise, it may be beneficial for an organization to offer new services to the existing market. (This is especially important in areas where healthcare disparities exist.) This includes expanding existing services to the current population or offering new products/services that have never been seen in the existing market before. An example of an organization offering new services to the existing market is a skilled nursing facility offering postoperative rehabilitation services such as physical therapy, occupational therapy, or speech-language pathology.

Reference:

DaVita. (2017). Home. Retrieved from https://www.davita.com/

Healthcare Occupation

Healthcare in the United States is complex, diverse, and constantly changing. This is a result of heightened regulatory oversight, a diverse population, and advancements in technology, respectively. As a result of these attributes, occupations in the healthcare sector are rising and are expected to continue rising through its peak in 2026. Specifically, the field of long-term care, including gerontology, is expected to dramatically increase as the population segment aged sixty-five and older continues to rapidly age. This demand for services began to present itself over the past ten years, which has increased the demand to further study the growth in the healthcare sector. The next ten years are expected to replicate the same demand. The demand for healthcare workers is expected to rise 18% through 2026, increasing the market with an additional 2.4 million new positions in the field (United States Bureau of Labor Statistics, n.d.)

Reference:

United States Bureau of Labor Statistics. (n.d.) Healthcare occupations. Retrieved from https://www.bls.gov/ooh/healthcare/home.htm

Additional Materials

From your course textbook, Health Care Market Strategy, read the following chapter:

· Step 3: The Strategy/Action Match

From the South University Online Library, read the following articles:

· The Patient Empowerment: A promising Concept in Healthcare Marketing 

· Identifying Competitive Strategies to Improve the Performance of Hospitals in a Competitive Environment 

· Porter’s Generic Strategies, Discontinuous Environments, and Performance: A Longitudinal Study. . . 

From the Internet, review the following:

· Kotler, P. (2000). Marketing management. Upper Saddle River, NJ: Prentice Hall.

The Four Ps of the Marketing Mix

When the mission statement and the vision statement have been developed for the organization, it is time to focus on developing the organizational strategy that meets the needs of the customer. This is accomplished by examining the marketing mix, a commonly known foundation model used in marketing to help an organization achieve its marketing objectives.

The four elements of the marketing mix are product/service, price, promotion, and place (distribution). These are referred to as the four Ps, and an effective strategy in healthcare marketing is understanding how these elements impact the marketing initiatives of an organization.

· The first element of the marketing mix is product/service. In healthcare marketing, this element is unique because both products and services can be provided in this industry. A product may refer to medical equipment or prescription medications. A product is a physical item. Services refer to the contractual obligations provided by the medical professional. An example of this includes going to a family physician for an annual physical. An example of a service may also be a procedure, such as a tonsillectomy or a root canal.

· The second element of the marketing mix is price. Price refers to the cost associated with the product/service received. It is important to understand that pricing may impact consumer demand. Likewise, it is important to understand that a relationship exists between availability and pricing.

· The third element of the marketing mix is promotion. Promotion refers to the way in which the product/service is presented to the public. This element is the visual communication to the audience.

· The final element of the marketing mix is place. This is also commonly referred to as distribution, as this element discusses the capacity for which the product and service can reach its target consumer. This element is concerned with where the business will be conducted, who will receive the product/services, and how these products/services will reach the target consumer.

Additional Materials

From your course textbook, Health Care Market Strategy, read the following chapters:

· Step 3: The Strategy/Action Match

· Step 4: Determining Marketing Actions

From the South University Online Library, read the following articles:

· Imaging: The Self-Referral Boom and the Ongoing Search for Effective Policies to Contain It 

· Healthcare Branding: Developing Emotionally Based Consumer Brand Relationships 

· A Systematic Review of Medical Service Branding: Essential Approach to Hospital Sector 

From the Internet, review the following:

· Kotler, P. (2000). Marketing management. Upper Saddle River, NJ: Prentice Hall.

The Five Ps of Healthcare Marketing

Considering that the healthcare environment is unique in its services provided and method of delivery, scholars have posited for a unique set of elements that better describe this sector. As a result, authors Cellucci, Wiggins, and Farnsworth (2014) developed the five Ps of healthcare marketing, an industry-specific supplemental to the original four Ps of the marketing mix. The five elements are physicians, patients, payers, the public, and the presence of politics (Cellucci et al., 2014).

5Ps in Healthcare

Review each icon to know more about the 5Ps of healthcare marketing.

Physicians refer to the medical providers of healthcare services. It is important to understand the types of physicians who are relevant to the respective market.

Patients refer to the individuals receiving healthcare services.

Payers refer to the financially responsible party who reimburses the medical provider for their healthcare services. Payers may include individuals (the patient, family member, etc.), organizations (e.g., healthcare insurance and HSA), or government-funded programs (e.g., Medicare, Medicaid, and VA).

The presence of politics refers to the potential impact that rules, laws, and regulations may have on an organization. It is important to remain abreast of the potential lawmaking implications, which may impact the operation of the organization.

The public refers to the surrounding community (e.g., members, organizations, churches, and groups) that comprises the community at large. It is important to understand the various entities that establish the surrounding community of a marketplace.

Reference:

Cellucci, L. W., Wiggins, C., & Farnsworth, T. J. (2014). Healthcare marketing: A case study approach. Chicago, IL: Health Administration Press.

Additional Materials

From your course textbook, Health Care Market Strategy, read the following chapters:

· Step 3: The Strategy/Action Match

· Step 4: Determining Marketing Actions

From the South University Online Library, read the following articles:

· Successful Practices Use Marketing that Evolves with the Changing Healthcare Landscape 

· Limiting Risk in Healthcare Marketing 

From the Internet, read the following:

· Cellucci, L. W., Wiggins, C., & Farnsworth, T. J. (2014). Healthcare marketing: A case study approach. Chicago, IL: Health Administration Press.