Question

Capturing an Emerging Market

The growing racial and ethnic diversity of the US population seems to
overwhelm some healthcare providers. Health systems that are used to
providing one-size-fits-all care are now faced with patient populations
that are increasingly heterogeneous and whose members often have
perspectives on healthcare different from those of the providers. However,

if a provider can adapt to the needs of this growing market, a lot of
opportunities will present themselves.
    For example, promoting the opening of a birthing center to a community

is challenging enough, but it becomes even more daunting when
the residents speak 40 different languages.One hospital in an urban
midwestern community not only took on this challenge but also turned
it into one of the hospital's greatest marketing successes.
    Thirteen hospitals within a ten-mile radius of the primary service
area provided obstetrics services to the community. An estimated
24,274 women of childbearing age lived in the primary service area.
Another 134,055 women of childbearing age lived in the secondary
service area. A service area analysis identified the following ethnic
breakdown for the population: 72.2 percent white (including 18.9 per
cent Hispanic),11.2 percent Asian or Pacific lslander, 9.1 percent other,
7.0 percent African American, and 0.5 percent American Indian.The
percentage of Asians in the service area was quadruple the state and
national averages, and the percentage of Hispanics was double the
state and national figures.The racial and ethnic breakdown, however,
failed to convey the unique features of the service area. Among the
white population, recent immigrants from the Middle East and Eastern
Europe supplemented the Hispanic population.The Asian immigrants
came predominantly from Korea, Pakistan, India, and the Philippines.
    To more narrowly define the major ethnic breakdown of the childbearing market, obstetrics discharge data by physician were reviewed.
Physicians were asked to identify the major ethnic and cultural groups
of their patients.The following major groups using obstetrics services

were identified: Indian, Pakistani, and Middle Eastern (29 percent);
Korean(23 percent); Hispanic (13 percent); and Assyrian (6 percent).
Research into cultural considerations for these groups identified a
significant subgroup of Indian, Pakistani, and Middle Eastern patients
who were Mustim. On the basis of this information, four target ethnic

markets were defined: Korean, Middle Eastern, Muslim (Middle Eastern, Pakistani, and Indian), and Hispanic (Mexican, Puerto Rican, and Cuban).
    To increase market share for obstetrics services at the hospital,
marketing strategies were developed to raise awareness of the new
family birthing center within these ethnic communities. To achieve
this goal in a highly competitive market, the following objectives were
adopted:
1. Differentiate services from those of competitors by means of
· graphic images and color coding for directional signage in the facility;
· multilingual and multicultural physicians (men and women), nursing staff,                    

cultural liaisons, and interpreters;
· culturally diverse artwork throughout the facility;
· large state-of-the-art labor/delivery/recovery/postpartum rooms with hot tubs

and space for family members;
· ethnic menus, along with microwaves and refrigerators for patient use；
· childbirth preparation classes taught in Spanish, Korean, Arabic, and Hindi by

native speakers;
· a family-centered program of care;
· superior quality measures.

2. Enhance the hospital's marketing presence through
· creating a new maternity services brand for the hospital, featuring the graphic   

image of infant footprints;
· aggressively marketing and promoting the new features and benefits of the

hospital's maternity services; and
· reinforcing the hospital's unique position as a provider of culturally sensitive,

family-centered maternity care.

3. On the basis of these objectives, the following marketing initiatives were

identified for the hospital:

· Tailor market research to build knowledge and understanding
of each ethnic group.

· Implement culturally appropriate advertising campaigns for
each targeted group, including native-language posters/fliers,
newspaper ads, billboards, and radio ads.

· Develop a comprehensive guide to hospital services in
Spanish, Arabic, Hindi, and Korean.

· Launch aggressive media-relations efforts to promote the
hospital's unique commitment to meeting the needs of its
“neighborhood of nations.”

· Implement a comprehensive community-relations program.

· Tailor a series of grand-opening events to each ethnic market,
with ethnic menus, appropriate dignitaries, and entertainment.

· Develop a strong community presence for customized ethnic
maternity services, with photos of the physical space and
amenities in the hospital newsletter distributed to 125,000
households in the primary and secondary service areas.

· Distribute fliers to the religious institutions in the target market.

Source: Adapted from Noonan and Savolaine (2001).

Case Study Discussion Questions

1. In what ways did the hospital disseminate its message to the
community(rather than relying on impersonal advertising)?
2. What indicators could the hospital have used to evaluate the
impact of these marketing efforts?

Answer 1

Nowadays the health care industry present around the world had highly risen above the clichéd concept of providing the noble service of treating patients. In fact nowadays it has become an industry which sells a comprehensive package which also includes treatment of specific ailments. This has evolved from a carefully crafted media representations. There was a time when the entire health care industry was working at the back stage with the motto of pure service. But as the specializations crept in so did the escalation of costs. To cover the escalation of cost, the revenue was to be increased also. The revenue could be increased only when the occupancy levels increased. To raise the occupancy levels, different packages had to be introduced and people were made aware of the same through extensive media campaigning.

The hospitals mainly use the following indicators to evaluate the marketing efforts:

1. Change in customized Out-patients' package sales.

2. Change in Day Care Patients' numbers.

3. Change in specialty care patients.

4. Change in traffic in pharmacy.