A majority of us are bound to be confused with the very concept of marketing because industrial and business marketing is totally focused on profit generation.
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Marketing is now hammering on social orientation too. This is to try to emphasise that profit generation is not the only thing that we expect from marketing.
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Profit generation is an important condition, but not the only one. Changing social problems are engineering a sound foundation for change in the concept, modalities and scope of delivery of health care.
For the hospital administrator considering a marketing programme, the recognition of the current status of the hospital or institution is the starting point. It should reveal how the hospital is perceived by competitors and the community.
A study of the current marketing profile of the hospital helps identify strengths and weakness in service, the programmes and the characteristics of the population used, why these are obtained by them at other facilities and locations.
This becomes the cornerstone for developing goals of the marketing programme.
Potential Market:
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Differentiation between actual and potential markets should be understood and potential markets must be identified though well-designed questionnaires geared to meet specific areas of interest.
Population trends in the region and attitudes expressed by patients, general public and health care personnel will primarily determine the pre-profile plans.
The Changing Environment:
In a changing health services scenario the existing operating and planning practices will need to be modified, especially in determining when a new facility or an expanded programme should be considered as part of a hospital’s role and responsibility.
Where demands for new services, programmes, equipment or expansion of existing activities come from physicians, political interest, or other influential sources, decision making for such programme should be based only on market research identifying the need, potential market and financial viability, and not on other considerations.
Pricing Practices:
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Generally, hospital pricing practices are based on a combination of input costs, including overheads plus profit or on rates which are prevalent in the neighbourhood hospitals
The pricing structure of a hospital must be within a reasonable range of charges with hospitals in the area with a similar mix of service.
A review of charges, including all the direct and indirect expenses that may be related to a specific cost centre, may usually demonstrate little relationship to the actual cost of providing and maintaining these services.
Such situation offers an opportunity to reevaluate pricing and marketing practices, to develop a means of providing the services at a lesser cost to the public, and to become more competitive.
On the other hand, a reduction in cost to the public can be negatively received by the public as it may perceive that such an action indicates a “cut-rate” pricing of services due to poor quality.
Advertising:
Hospitals have been practicing advertising though press releases under the guise of public relations. Some hospitals aggressively advertise, and such advertising programmes seem to have been successful in improving utilisation.
The notion that advertising is not a dirty word seems to have gained acceptance with hospital managements who are prone to believe that this kind of publicity could also function as an educational and motivational tool.
Competition:
The word ‘competition’ is unfamiliar to hospital administrators. Competition does not imply an interest to try to drive away other area hospitals out of business.
However, hospitals must sharpen their skills and practices to effectively withstand any infringement by other hospitals and the potential loss of its market to other hospitals or facilities.
For this, a hospital needs to develop a good intelligence network to monitor what services are being developed elsewhere. The long and short range plans of other health facilities in the area should be noted.
Facing competition requires strengthening of strong areas of services while supporting those that are weak.
In addition to the cost factor, quality, accessibility, available resources and other existing plus-points play a role in competition effectiveness. Hospitals must be quick to respond to the needs of the community to achieve service goals before others have an opportunity to do so.
Marketing expertise of the hospital can provide sound guidance in an approach towards this goal.
Because in health services competition is not pointedly price oriented a hospital’s reputation for dependability, skill and perhaps creativity becomes its chief promotional aid.
Market Research:
Some industrial organisations maintain a product line that is considered a loser but still maintained because the ‘ripple effect’ may provide substantial or offsetting revenue.
Similarly hospitals have programmes that appear superficially to be a liability to the organisation but in fact earn revenues and have utilisation potential to other services within the total structure.
Marketing programme must be based on market research considering all connected aspects of the problem at hand.
Communication with consumers for research can be opened by means of questionnaires, site visits, public meetings, private group meetings, informational mailings, advertising, or the latest method-mall intercept (one-to-one encounter in shopping centres). Means of maintaining these channels of communication should be explored.
Service Quality Dimensions:
The customer judges the quality of services not only on the basis of what is being delivered but also how that outcome is delivered.
His primary expectation is related to the response and outcome of his illness, viz. ‘cure’. The process of achieving this end is through the receipt of service experience, viz. ‘care’.
Given the difficulties in adequately evaluating ‘cure’ and the faith that patients generally have in believing in the doctor’s ability to treat illnesses, it appears that patients take this aspect of service (cure) for granted and evaluate the service on other aspects of service delivery (care).
Various studies have shown that customers perceive five dimensions in their assessment of health service quality, viz:-
1. Reliability
2. Responsiveness
3. Assurance
4. Empathy
5. Tangible evidence (appearance of physical facilities, equipment, personnel and written material).