Question

Healthcare Marketing
in your own words pretend you have inherited $1 million. After paying all your outstanding student loans, you decide to start a healthcare enterprise. What business are you in? Is it for - profit or non- profit? what segments would you choose to serve? Briefly, describe the steps you would take to divide the broad market into your selected segments . will you use a concentration of differentiated targeting strategy? Identify the key market segmentation variables that you would use, and explain why.

Answer 1

1) Healthcare enterprise is a business which provides services to the patients. So , it is comes under service business. It provides intangible products like solutions that improves clinical outcomes.

2) Business are meant for profit . If it is made or started at personal level ( own and managed by a single owner) can be called as profit making organization. If any health care enterprise run by the government for social help can be called as non profit organization like government hospital .

3) There are different segments in health care industry such as a) medical devices and equipments

b) medical insurance

c) pharmaceutical

d) health care services and facilities

I will choose health care services and facilities within my financial budgets.

4) Basically the total market is huge and for a startup it is impossible to reach everywhere. Due to this segment selection from a spread market is indispensable . The steps are followed by which segment selection can be done.

a. Dividing the total market in different segments : Total health care market dividend into four key segments, which are medical devices and equipments , medical  insurance , pharmaceutical and health care services and facilities .

b. Selecting the  bases for segmentation : At the time of division of segments, it is all important to specify the bases of segmentation .It may be functionally segmented, may be location wise or may be divisional segmentation can be done. In my case it was functionally segmented .

c. Evaluation and Selection of best market segment : Out of many we have to choose the best one considering our strength and weaknesses , and market opportunities and threat . In this case financial constraints ,competition in market, nature of the market, technological feasibility and related factors evaluated for selection of market segment.

d. Select overall targeting strategy for the specific targets in the selected segment:- After selection of segment, there should be promotional efforts ,advertisement, public relationship activities to induce specific targets in the selected segment .If I have choosen dental care services in a whole district ( by opening three different clinic in three location )then specific targets to be well aware of our service . Strategy must concerned with patients physical and mental satisfaction which provides long term gain and reputation .

5) Yes .Concentration of differentiated targeting strategy is a method of playing safe. It appeal two target groups during campaigns.It appeals people in at least two cities or locations.Which reduces the chances of making loss.

6.) As per my health care enterprise which provides dental care in three location (may be in Florida) key market segmentation variables are a) nature of population ( population density ,average age, sex ratio, concentration of old age people )b) level of income ( average income, ability to purchase the service ,flow of income, nature of savings )c) life style ( conventional, modern, health issues )d) behavioral pattern (Interest about dental care, philosophy towards health care etc)