RE: Week 7 Discussion

 I believe that healthcare marketers must have a customer mindset; that is, understand the customer's needs, wants, and perceptions to meet their wants and needs (Fortenberry, 2010).  Note that by understanding the customers' perceptions, the healthcare marketers will identify and satisfy consumer demand, and more importantly, provide quality healthcare.  Another important point is that customers' perceptions will assist marketers in creating health plans that address the health care that consumers want (Fortenberry, 2010).  Therefore, healthcare marketers must allow the patients to judge the tangible elements of the healthcare services, and technical competence and this will help the marketers generate optimum satisfaction.

PEST analysis can be a useful tool to monitor and evaluate the environmental forces that might affect the healthcare institution.  First, PEST analysis is important in that healthcare decision-makers will consider the outside environment and be in a position to make strategic planning (Fortenberry, 2010).  For example, decision-makers will collect information from the external environment and the information will help understand the growth or decline of a market.  In general, PEST analysis is a useful tool that can help decision-makers know how to do the business or in other words make cost-effective decisions.

Example of PEST analysis used in healthcare organizations to analyze events and trends include

• Technological factors- It is important to note that technological forces influence the healthcare industry and therefore the health care organization considers technological factors in strategic planning (Fortenberry, 2010). This means that the healthcare industry considers technology development, information and communications, innovation potential, and other technological advancements that could bring opportunities for growth.
• Economics forces- This is an example of PEST analysis which the healthcare industry uses to evaluate factors such as inflation, unemployment, and other economic issues that influence the financial performance. If healthcare organizations find an environment that is characterized by poor economies such as a high rate of unemployment, they understand that such an environment is not favorable for health services since fewer people will purchase the products or even pay hospital costs (Fortenberry, 2010). Alternatively, the healthcare organization considers an environment with strong economies as favorable in that the consumption of healthcare goods and services is high.

 

The major reason as to why there are intense competition and rivalry within the healthcare industry is because there are many new players in the industry.  For example, medical groups that provide services to their communities are now establishing family practitioners,   and building company clinics, where they are offering primary care to their employees.  Secondly, competition is intense due to the threat of substitution.  For example, technological changes have influenced the healthcare industry and organizations are using new technology to improve their performance. Thirdly, competition and rivalry are intense due to the power of buyers. This means that hospitals with strong supplier relationships have strong competition. Such hospitals receive the best products, services, and resources and lower costs.  For example, the Affordable Care Act provides quality patient care.  Finally, competition is intense as some organization is using the Blue Ocean strategy. This means that healthcare organizations create new markets and offer new delivery benefits.

 Porter's Five Forces assists the organizations to understand the marketplace competitors or rather the competitive environment.  Note that for organizations to achieve marketing success, they must understand the competitive elements and the Model helps the organization understand the competitors, the new entrants the power of customers, the power of suppliers, and more (Fortenberry, 2010).   The forces are also important as they enable the healthcare industry to create a corporate strategy and enhance long-term profitability.

 

 Example of Porter's Five Forces Model include;

• Power of suppliers- within the healthcare industry, few suppliers of hospital equipment such as imaging equipment, surgery scalpels, and others can be more powerful since they have the freedom to raise prices.
• Power of buyers- within the healthcare industry, large-volume buyers have more power. Therefore, organizations must be customer-focused, and understand the needs and want of customers to increase their bargaining power.

 

 

 

 

 

 

 

 

 

 

Reference      

 

Fortenberry, J. L., & Fortenberry, J. L. (2010). Health care marketing: Tools and techniques. Sudbury,

Mass: Jones and Bartlett Publishers

 

Berkowitz, E. N. (2017). Essentials of health care marketing.  Jones & Bartlett Learning