Practicing Marketing; and it's Practicing Marketing; and it's Challenges in the Healthcare Challenges in the Healthcare

IndustryIndustry

Dr. Joe Sarprasatha Amoah-Binfoh Kenneth Priscilla Bempah BotweSRM University School of

Management

INTRODUCTIONINTRODUCTION “Marketing is the voice of healthcare industry” Background:Recent global changes in healthcare industry, Marketing assuming importance for survival

/growth of hospitals. However the healthcare Industry currently However the healthcare Industry currently

facing threats and opportunities. facing threats and opportunities. Technology advancement Technology advancement The rising needs of peopleThe rising needs of people The mushroom growth of health providers withThe mushroom growth of health providers with

commercial practices neglecting rudimentary practices.

Healthcare marketing as a concept and its importance

Healthcare marketing is a complex equation Healthcare marketing is a complex equation because most often the producer, that is, the doctor, because most often the producer, that is, the doctor, himself is the marketer since production and himself is the marketer since production and consumption takes place simultaneously. As patients consumption takes place simultaneously. As patients are the best ambassadors, it is important to take of are the best ambassadors, it is important to take of their needs and provide them with best possible their needs and provide them with best possible care. care. The most important service to consumers is the service of health care because we are directly affected by it every day, said Leonard Berry (1999), Therefore marketing helps to maintain positive relationships with current patients because they play a major role in recommending friends and family to your hospital, further boosting your revenue.

ObjectivesObjectives

To examine application of marketing To examine application of marketing concepts in healthcare sector, concepts in healthcare sector,

To examine the importance of To examine the importance of marketing marketing

To appraise the challenges of To appraise the challenges of practicing marketing in the practicing marketing in the healthcare industry.healthcare industry.

Literature review Literature review

““Marketing :planning, implementation and control Marketing :planning, implementation and control of carefully formulated programs designed to of carefully formulated programs designed to bring about voluntary exchanges of values with bring about voluntary exchanges of values with target markets.target markets.

Goal of achieving organizational objectives. Goal of achieving organizational objectives. It lies in designing the organization’s offerings in It lies in designing the organization’s offerings in

terms of the target market’s needs and desires terms of the target market’s needs and desires and and

in using effective pricing, communications, and in using effective pricing, communications, and distribution to inform, motivate, and service the distribution to inform, motivate, and service the markets.” (Kotler and Roberta N. Clarke, (1987).markets.” (Kotler and Roberta N. Clarke, (1987).

4P’s of Healthcare Marketing4P’s of Healthcare Marketing

(Model for this paper (2014))

Marketing healthcare services means making available Marketing healthcare services means making available the healthcare or Medicare services to the different the healthcare or Medicare services to the different categories of the users in such a fashion that they get categories of the users in such a fashion that they get quality services, at a reasonable fee structure, on right quality services, at a reasonable fee structure, on right time/place and in a decent way.time/place and in a decent way.

Quality service Product

Fee Structure Price

Right time/placePlace

Decent way Promotion

Marketing healthcar

e

The 5 Concepts of HC The 5 Concepts of HC MarketingMarketing

Production concept(Production concept(efficiency, low efficiency, low costs, professionalism and mass costs, professionalism and mass distributiondistribution) )

Product concept (the Sick needs Product concept (the Sick needs doctor syndrome)doctor syndrome)

Selling concept (aggressive marketing)Selling concept (aggressive marketing)Marketing concept (reactive and Marketing concept (reactive and

proactive orientation)proactive orientation)Holistic concept(Holistic concept(complete, cohesive

approach))

MAJOR CHALLENGES OF MARKETING, HEALTHCARE SERVICES

Simplicity of the Concept of Marketing by (Senior Executives) Healthcare professional understood the concept as advertising and sales not in its holistic view.Health professionals, especially clinicians, did not have the same goal and objectives as administrators.Uncertainty, technology, and new era of healthcare application

METHODOLOGY/DATA ANALYSIS METHODOLOGY/DATA ANALYSIS

This study specifically used non probability sampling. This study specifically used non probability sampling.

This method of sampling technique gives the This method of sampling technique gives the

researchers the opportunity to accidentally choose researchers the opportunity to accidentally choose

respondents who in their opinion are considered to be respondents who in their opinion are considered to be

relevant to the research topic.relevant to the research topic.

SAMPLE SIZE SAMPLE SIZE Sample size is explained as the required number of Sample size is explained as the required number of

units that the research wants to work with or the units that the research wants to work with or the number of units under study. The sample size of the number of units under study. The sample size of the study was 50 indicating that the researcher study was 50 indicating that the researcher interviewed 10 health workers and 40 patients. The interviewed 10 health workers and 40 patients. The health workers include administrators, front office, health workers include administrators, front office, diagnostic, and support services department.diagnostic, and support services department.

DATA ANALYSIS

Questions for Health workers

Labels Total (N=10)

Percentage (100%)

1.Understanding the elements in healthcare market

a. Yes b. No

46

4060

2. Availability of Marketing department in the hospital

a. Strongly Agree

b. Agree c. Disagree d. Neither

1351

10305010

3. Channels for promoting healthcare services

a. Referral Systemb. Medical Edutainmentc. Community Outreachd. Social Media

3142

30104020

Questions for Patients

N=40 100%

4. Satisfaction as to the treatment /medical care

a. Yes b. Can’t say c. No

81319

2032.547.5

5. Opinions of patients about the doctors

a. They are sympathetic

b. They are indifferent c. They are rude

20416

501040

6. Channel of information about the Hospital

a. Patients Referral b. Medical

Edutainment c. Social Media d. TV

207211

5017.5527.5

7. Assessing the pricing system of the hospital

a. High b. Medium c. Low

5728

12.517.570.0

8. Complaints about delay due to lack of cooperation / co-ordination

No Can’t say Yes

12820

302050

Findings and Conclusion Findings and Conclusion • It was found out that health workers overall did It was found out that health workers overall did

not know the elements of healthcare marketing. not know the elements of healthcare marketing.

• It was also found that the marketing department It was also found that the marketing department if at all there was one, was not effective at all. if at all there was one, was not effective at all.

• The study found out that the hospital charges The study found out that the hospital charges the lowest prices for its services as confirmed by the lowest prices for its services as confirmed by the patients.the patients.

• The major medium for promoting the health The major medium for promoting the health services were community outreach from the services were community outreach from the employees’ point of view, but according to employees’ point of view, but according to patients it was patients’ referral system.patients it was patients’ referral system.

• It was also found that most doctors were sympathetic and understanding though a few were rude.

• There is a lot to desire on the front of cooperation between the various clinicians and departments’ service providers.

• A good many patients were not satisfied with the services rendered by the hospital and the undue delay was a cause to worry.

• The study finds in very unclear terms that a professional marketing expert should be employed, to restructure the marketing strategies, define the market promotion mix strategies and how to integrate the clinicians and administrators to understand the needs and wants of patients.

CONCLUSIONThe gap between the service providers and

beneficiaries needs to be immediately filled.

• This has to be done by a highly responsive marketing professional.

• There could also be an aggressive marketing strategies (medical edutainment, social media, direct marketing, Micromarketing and building patient relationship management (PRM).)

• When these strategies are institutionalized the market position (i.e. brand image) of the hospital will rise from being ordinary to excellent.

THANK YOU