Introduction
Every health care organization has to formulate an effective marketing plan. This process is not usually easy, since the environment in which heath care is practiced continue to undergo changes in various fronts. Though these changes are occurring in the external health care organizations, these changes could and have a major affect on marketing plan as well as the strategic plans of these organizations. Such changes come from the government, consumers, the health care industry, technology and the private sector ( Hillestad S.G., 2004).
Convenient Care Clinics
This marketing plan is based on Convenient Care Clinics; they are over 1000 in the United States and they are situated in retail stores, pharmacies and supermarket. They boost medical care instances which arise and are minor. They house staff physicians in who ensure around the clock treatment and best care to patients in places where there is large number of people like supermarket, stores and pharmacies (Schaik J.L., 2002).
Marketing strategies of Convenient Care Clinics
- Product: This is a product or service that a company produces or manufactures particularly on large scale with precise amounts (Barlon, 2006). Convenient Care Clinics has huge number of healthcare services and products that it provides to the market meant for patients. Health services cater for various needs of the people, the Convenient Care Clinics caters for cancer, gynecology, urology, geriatrics, general physiology, kidney disease among many more services and products that the Convenient Care Clinics offers. All these services and products are well defined and specifically meant to fulfill the demands of the patients in treating the varied diseases that affect them ( Hillestad S.G., 2004).
- Promotion: Promotion comprises all communications that a company uses in marketing its products. We have four different elements in promotion; this includes advertising, point of sale, word of mouth and public relations (Barlon, 2006). Convenient Care Clinics have greatly used this marketing mix to its full advantage. They have incorporated all the four aspects of promotion which as seen the Convenient Care Clinics capture and retain a big share of the market. This method of marketing has been very successful to the Convenient Care Clinics have many people want to be identified by stores, supermarkets and pharmacies that improves the lives of the people and shoppers. The Convenient Care Clinics have several adverts that appear in the media and on the internet that are used to advertise their services ( Hillestad S.G., 2004).
- Price: The sum that a customer pays for a particular product or service is its price. This sum is determined by varying factors which entails product identity, competition, market share and the supposed value of the product or service by the customer (Barlon, 2006). Convenient Care Clinics have focused on producing quality health care services at the most affordable price. The Convenient Care Clinics have adopted this pricing strategy to ensure that it makes health services more accessible to many people at every outlet (Armstrong G. & Kotler P., 2007).
- Place: This represents location/s where the products and services from a company are found and can be purchased. This mainly refers to distribution channels of the company which could be physical stores or even virtual stores found on the internet (Chekitan and Schultz, 2005). Convenient Care Clinics have managed to create a number of distribution channels that has ensured that its products reach a wide market. For instance Convenient Care Clinics are found in supermarkets, stores, pharmacies and convenient corners; this has ensured that patients are able to easily get medical services at quickest and nearest point. The Convenient Care Clinics are independent distributors’ situation in convenient stores (Winer, R.S. 2007).
Target marketing
The main goal of target marketing is to get to know all possible information about the existing as well as prospective customers in this case patients. This information will be able to make the Convenient Care Clinics management make suitable decisions that will improve the services the Convenient Care Clinic is offering and help in responding to patients’ needs (Kerin and Peterson ,2007).
In formulating this marketing strategy, the hospital has to consider which group it thinks that will mostly benefit from the products and the services it is providing. In this approach, the Convenient Care Clinic thinks about the most general features and contributes. Among the best way that the Convenient Care Clinic uses in target marketing is identifying the present base of clients (patients), knowing their characters and ideals. This can be done through analyzing these four aspects (Schaik J.L., 2002).
- Geographics: this includes the location of Convenient Care Clinic, size of that area, the population density, as well as climatic zone of the patients (clients) (Schaik J.L., 2002).
- Demographics: this includes age, gender, earnings family size, education status and occupation of the patients. The Convenient Care Clinic takes care for all ages of the people; those married and not married poor or rich. Patients’ educational levels do not matter as health care services are available for all in the clinic (Kerin and Peterson 2007).
- Psychographics: this comprises of the general personality of the patients, life-style, behavior, rate of diseases and sickness, repetition of healthcare needs, benefits being sought, loyalty of the patients to the Convenient Care Clinic and characteristics of the patients (Armstrong G. & Kotler P., 2007).
- Behaviors: this consists of the needs as well as wants that patients seek to get from the Convenient Care Clinics. The Convenient Care Clinic has to gather the level of knowledge the patients have, the information sources, patients’ attitudes and the manner in which the patients use the services and products from the clinic (Kerin and Peterson, 2007).
Competition Analysis
Consumer Product Classification:-There are three-way consumer product classification involves three possible definitions for the small products namely: a) market-oriented or demand based classification that groups together products or commodities in the same purpose or market, b) the intrinsic nature or physical characteristic of the product, and c) the industry of origin approach that defines products and commodities in clearly stated industry groups (NAICS, 2009).
Analysis of the Competition
Competitive Rivalry: The medical sector is populated by a large number of pharmacies, Convenient Care Clinics, health centers, agents, and hospitals involved in the provision of medical services. The sheer volume of players in the industry makes it highly competitive, with players competing in terms of service quality, functionality, and cost. As the economic environment becomes unstable, the main battle lines will inevitably focus on service value and cost. Therefore, a player that wishes to compete effectively in this market will have to consider pricing and service attributes in developing its marketing strategies (Kerin and Peterson, 2007).
Threat of New Entrants: Players who intend to compete effectively in this industry need to employ highly competent, technical, yet innovative people. Therefore, entering the market is not that easy. However, driven by population growth, the rising demand from patients for Convenient Care Clinics might still entice new entrants to try it out (Schaik J.L., 2002).
Threat from Buyers: The bargaining power of buyers is very strong considering that they have a lot of options. Customers can easily scout services from an array of health care institutions, choose the best value, and decide based on the lowest cost. Therefore, in the Convenient Care Clinics, the customer reigns supreme ( Hillestad S.G., 2004).
Threat from suppliers: Suppliers in the sector have significant influence in that they dictate medicine and Convenient Care Clinics costs. Moreover, the fact that there are many Convenient Care Clinics also allows suppliers to choose which to cater to. However, there are also a large number of suppliers, which is advantageous to clinics because they can likewise choose which supplier to patronize. Fundamentally, suppliers tend to gravitate towards high reputable supermarkets, stores and pharmacies so they enjoy a certain degree of leverage of many suppliers (Armstrong G. & Kotler P. 2007).
Threat of Substitutes: The threat of substitutes may come from independent hospitals, government sponsored medical care institutions and other institutions that offers similar services. However, getting the medical services in Convenient Care Clinic is significantly lower than in private hospitals so the threat of substitutes is not so great (Kerin and Peterson ,2007).
References
- Armstrong G. & Kotler P. (2007). Consumer Markets: Influences on consumer behavior, Principles of Marketing.
- Barlon, K. (2006): The concept of the marketing mix Presentation on marketing management, Vol. 1, Oulu University -Finland
- Chekitan S. D and Schultz, D. E (2005): In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century, Marketing Management
- Hillestad S.G.(2004); Health Care Market Strategy: From Planning To Action; Jones and Bartlett Publishers, Inc Kerin and Peterson (2007); Strategic Marketing Problems: Cases and Comments, 11th ed., Pearson/Prentice Hall, 2007. ISBN 0131871528
- North American Industry Classification System (2009). United States Census Bureau.
- Schaik J.L., (2002); The Task of Marketing Management; J.L. van Schaik (Pity) ltd
- Winer, R.S. (2007). Marketing Management, Prentice Hall, Upper Saddle River, NJ.