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Abstract
Marketing segmentation involves dividing the target market into distinct groups with
shared characteristics, needs, and preferences (Berkowitz, 2022). In healthcare, segmentation is
vital due to the wide range of services, treatments, and specialties available. By identifying and
understanding the unique requirements of these segments, healthcare organizations can tailor
their marketing efforts, ensuring that the right message reaches the right audience. The marketing
mix represents the fundamental elements of any marketing strategy. The synergy between
marketing segmentation and the marketing mix in healthcare is evident in the targeted and
patient-centered approach. By segmenting the market, healthcare organizations can effectively
allocate resources and design marketing strategies that resonate with the unique needs of each
group (Berkowitz, 2022). This approach influences decisions regarding product development,
pricing, service delivery and promotion tailors to those segments. Marketing segmentation and
the marketing mix are pivotal tools in shaping the healthcare landscape. They enable healthcare
organizations to better serve their diverse patient populations, increase patient satisfaction, and
remain competitive in a rapidly evolving industry. By understanding the principles and nuances
of these concepts, healthcare marketers can craft strategies that deliver value to patient's,
healthcare providers, and the overall healthcare system.
Keywords: market segmentation, marketing mix, pricing, product, delivery, diverse, satisfaction,
value, strategies.
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Introduction
Bethesda Hospital has developed an occupational medicine program with the goal of
targeting employers in the Baltimore area. The director of this program is offering a wide range
of services such as toxicology assessments, education about preventing back pain and injuries,
stress management, and providing medical treatment at factories. To be successful, Bethesda
Hospital must utilize the mass marketing approach. The mass marketing approach will target the
largest amount of people possible by utilizing promotion, price, produce, and place, otherwise
known as the 4 P’s (Berkowitz, 2022). Companies can decide to target one market, multiple
market segments, or everyone by utilizing different marketing mix strategies. Marketing
segmentation is the process of grouping consumers who have similar wants or needs to which an
organization can provide by tailoring one or more elements of the market mix (Berkowitz, 2022).
Segmenting a market has many benefits such as addressing diversity in a market, identifying the
best way to distribute a product to its consumers, focus resources to specific groups, and more
customized messages and marketing (Berkowitz, 2022).
Concentration strategy
The concentration strategy would be the most beneficial strategy for the Bethesda
Hospital to consider utilizing to target employers. The concentration strategy targets one segment
of the market, and in this scenario, they are targeting employers in the Baltimore region. By
targeting this one market, it will give the hospital an opportunity to cater to their needs more
accurately. A problem that may arise is the majority fallacy, which is seen when organizations
focus on the largest part of the segment, making is less profitable (Berkowitz, 2022). Niche
strategy is a variation of the concentration strategy that targets a small segment with specialized
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services (Berkowitz, 2022). Micromarketing is another variation that focuses on one-to-one
marketing, which allows for customization for clients and customers (Berkowitz, 2022).
Micromarketing helps to customize its marketing to each individual patient who utilizes services
at that facility. Micromarketing is a strategy that would be useful for Bethesda Hospital because
they can customize programs for employers needs making it more convenient and attractive for
them to purchase.
Population and Psychographic Segmentation
“Healthcare needs-based population segmentation is a promising approach for enabling
the development and evaluation of integrated healthcare service models that meet healthcare
needs” (Chong et al., 2019, p. 1). Because of baby boomers and the increasing age of the
population, healthcare policy makers are focusing on the need to improve the management of
patients with chronic disease through patient-centered care (Chong et al., 2019). Segmenting
populations into parsimonious groups are relatively similar in terms of their healthcare needs
would help in the design of integrated care models for the different population segments to
optimally meet patients’ healthcare needs (Chong et al., 2019). By segmenting patient
populations based on healthcare needs, it provides indications for healthcare interventions that
may reduce morbidity risk (Chong et al., 2019). This provides a distinct advantage by enabling
development and evaluation of integrated services in relation to the need for those services
(Chong et al., 2019). Psychographic segmentation is done by determining the attitudes, interests,
and opinions of individuals to ideally generate lifestyle segments (Berkowitz, 2022). For
example, Atrium broke down their population in five distinct groups. By breaking down their
population into smaller groups, it helps the company gain insight into how to best engage with
them and how to communicate with them in the most relevant and appropriate way (Berkowitz,
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2022). Services that need to be provided or developed to meet patient’s needs can be promoted
more efficiently (Berkowitz, 2022)
Geographic Segmentation
Multiple market segmentation techniques include sociodemographic factors,
psychographic, geographic usage, and cohort segmentation (Berkowitz, 2022). Age is relevant in
healthcare marketing because it will change the way you communicate with each patient. For
Geriatric medicine, patients have a hard time hearing, seeing writing, and walking and could be
attracted to a practice that will cater to their needs. Conveniences such as larger font sizes and in-
person representatives to help fill out forms could be very attractive to this generation. Another
variable to consider in the Baltimore area is ethnicity. Based on the findings, it could be
beneficial to offer interpreters and consider hiring bilingual staff members (Berkowitz, 2022).
The key components for recognizing cultural and ethnic diversity are being aware of cultural
differences, having the ability to recognize how their culture affects behaviors and attitudes,
awareness that misunderstanding and misinterpretations can occur, complexity can arise in some
cultures and the ability to adapt to provide these patients with culturally competent care
(Berkowitz, 2022).
Berkowitz (2022) explains that geographic segmentation is typically regional or local and
major distinctions relevant to health care are urban vs. rural or urban versus suburban. For
example, since Bethesda Hospital is in a large city, they may consider opening satellite offices in
urban areas that serve as funnels to their main facility and to provide those population groups
with higher quality care. “Outside the primary and secondary service areas, the medical center
may find a stronger referral flow” (Berkowitz, 2022, p. 292).
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Lifestyle Segmentation
Lifestyle is another way to target the Baltimore population. Weber et al. (2020) states that
lifestyle segmentation is a concept that aims to cluster people with similar characteristics or
values Individuals are grouped based on their behavioral characteristics, attitudes, and opinions
(Berkowitz, 2022). Lifestyle variables are important when focusing on older adults: several
studies have shown that age itself is not the main predictor for behavior in older populations
(Weber et al., 2020). Researchers can conduct surveys to get thorough information on their
interests and options for their healthcare preferences. The best way to find out what the
employees they are targeting want, is to poll and ask. The employers know their employees’
wages, which gives the company a good idea of what their employees can afford on healthcare
products. Weber et al., (2020) suggests that lifestyle types have been proven successful when
using to segment a heterogeneous target group into homogenous subgroups to get a better
understanding of a particular population’s healthcare needs.
Conclusion
Market segmentation in healthcare is a vital strategy that allows healthcare providers and
organizations to better understand and cater to the diverse needs and preferences of patients. As
discussed, effective segmentation techniques enable the delivery of more personalized and
targeted healthcare services, leading to improved patient satisfaction and outcomes.
Concentration segmentation, geographic segmentation, psychographic segmentation, and
lifestyle segmentation help healthcare professionals identify and reach out to specific patient
groups. This not only optimizes resource allocation and marketing efforts but also upholds
ethical considerations, promoting individualized care. Market segmentation serves as a valuable
tool to meet the unique needs of individual and patient groups. As healthcare continues to evolve,
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market segmentation will remain a key pillar in the pursuit of delivering high-quality, patient-
centric healthcare serves. By embracing these strategies, healthcare providers can ensure that
their services are not only effective but also ethically grounded, fostering trust, satisfaction and
overall well-being among their patient population.
Biblical Integration
Proverbs 4:23 states “above all else, guard your heart, for everything you do flows from
it” (NIV, 2020, p. 433). In healthcare marketing, it is crucial to remember this verse. Just as this
verse encourages us to protect our hearts, healthcare marketers must strive to understand and
protect the well-being and values of patients. When we engage in marketing segmentation, we
aim to tailor our strategies to address the diverse needs and beliefs of various patient groups. This
verse reminds us that everything we do in healthcare marketing should flow from a place of
empathy and respect for the individuality of each patient. By recognizing and respecting their
unique values and needs, we can build trust, enhance patient satisfaction, and ultimately privde
better healthcare services.
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Resources
Barker, K. L. (2020). Niv study bible. Zondervan.
Berkowitz, E. N. (2022). Essentials of Health Care Marketing. Jones & Bartlett Learning.
Chong, J. L., Lim, K. K., & Matchar, D. B. (2019). Population segmentation based on healthcare
needs: A systematic review. Systematic Reviews, 8(1). https://doi.org/10.1186/s13643-019-
1105-6
Weber, W., Reinhardt, A., & Rossmann, C. (2019). Lifestyle Segmentation to Explain the Online
Health Information–Seeking Behavior of Older Adults: Representative Telephone Survey
(Preprint). https://doi.org/10.2196/preprints.15099
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