The healthcare market is influenced by many factors, which include regulations by the federal as well as the state governments. There are many regulations to be followed and policies to be enacted which include safety measures and healthcare insurance, which are to be considered (Pol & Thomas, 2014). Healthcare facilities must also be certified by accrediting bodies to ensure compliance to rules and regulations. The healthcare market for the new facility is a market with other big players in the industry compared to the market for the other established facility, which had few players in the market. This has an impact in the marketing process as well as the performance of the healthcare facility (Pol & Thomas, 2014). The healthcare market for the new facility has also a very diverse product line due to the integration of technology, which has changed the delivery of the services and products, which was different in the established facility (Pol & Thomas, 2014).
Technological integration was minimal and the service delivery had not been diversified like today. Characteristics of the population of the defined service area include unique healthcare needs of the patients (Pol & Thomas, 2014). Healthcare needs have been changing and diversifying over the time and most populations across America have special healthcare needs, which must be addressed using unique strategies (Pol & Thomas, 2014). With this population having a large number of older individuals due to the baby boomers, this population is likely to be affected by many healthcare conditions. This will impact the structuring of the new facility to be able to accommodate the needs of this population (Ozcan & Linhart, 2017). Due to the Affordable Care Act, majority of this population have been covered by healthcare insurance increasing the number of Americans able to access healthcare services. This is going to have an impact on the demand for healthcare needs (Ozcan & Linhart, 2017).
The new healthcare facility should organize its resources to provide better healthcare services based on the population. This can be achieved through market segmentation of the population. Some of the factors to be considered include geographical and demographic factors (Ozcan & Linhart, 2017). The age factor under demographic factors is important as different age groups have different healthcare needs with the young age having development and preventive healthcare needs. The older populations need special healthcare needs due to the healthcare conditions associated with old age (Ozcan & Linhart, 2017). With this grouping, the new healthcare facility can be able to focus its marketing on the different age groups based on their needs. The population’s economic status is also important as it is enables the planning of financial projections. Since Tenet Healthcare is a profit-making corporation, it must consider the economic factors, which have an impact on the financial aspects of the new facility (Ozcan ; Linhart, 2017).
Segmenting the population will lead to creation of more effective marketing strategies in the new facility (Ginter, Duncan, ; Swayne, 2013). Target marketing is the best level to approach the population by the new facility. Target marketing will involve approaching a certain population based on certain characteristics of the population. Target marketing ensures consistent and predictable ways and is the best in healthcare provision (Ginter, Duncan, ; Swayne, 2013). Healthcare needs vary based on the different market segmentations, which are based on their needs. Focusing on a specific market will also reduce the marketing costs, which must be minimized as this can have a negative effect on the gross profit margins of the new facility (Ginter, Duncan, ; Swayne, 2013).
Due to the many competitors in the healthcare industry, mass marketing may have a negative effect on the new facility as the competitors may have already implemented mass marketing strategies (Ginter, Duncan, ; Swayne, 2013). This will give them an advantage over new entrants in the market. Target market will also help the new facility in developing effective marketing strategies. This is because target marketing is based on what the new facility will be able to provide sufficiently and effectively. Since the new healthcare facility may be unable to provide for all the healthcare needs of the population, target marketing will focus on the available services provided by the facility (Ginter, Duncan, ; Swayne, 2013).
Potential and Limits
Since the populations are the consumers of the healthcare services, population segmentation is important in healthcare in ensuring a successful integration of the new healthcare facility into the market and improved customer outcomes (Plunkett, 2017). This is also useful in planning of the marketing process and strategies. Population segmentation gives an organization an advantage in effective resource allocation, which is based on the different population characteristics (Plunkett, 2017). With a majority of the population consisting of older individuals, this will enable the new facility to tailor its operations to cater for this type of population.
This will also help the new facility in analyzing and predicting information relating to this market segment (Plunkett, 2017). A profiling process may involve determining the different characteristics on the different age grouping of the population. More analysis may involve categorizing different age groups based on their economic status and geographical locations. Other related characteristics are also defined which may include susceptibility to different health conditions (Plunkett, 2017).
A demographic market segment may not have the same healthcare needs and healthcare providers should look for where there is a high prevalence of needs in the consumers segment, which is a submarket (Ozcan ; Linhart, 2017). Other factors based under demographic segments may also contribute to dominant healthcare needs. Some of these factors include socioeconomic and economic factors, which may lead to the creation of a submarket in the demographic market segmentation (Ozcan ; Linhart, 2017). This includes the education as well as the income level of individuals, which may increase the risk of a dominant healthcare need.
Ethnic group segmentation may include submarkets targeting the black and minority ethnic groups in the United States who are at a higher risk of worse healthcare needs than the general population (Ozcan ; Linhart, 2017). This are made worse by low socio economic factors. Lifestyle clusters involves identifying the big spenders in the healthcare industry, which is important in identify the best and potential customers. The new facility should consider these submarkets in their marketing strategies (Ozcan ; Linhart, 2017).
Different types of services appropriate for the submarkets include primary healthcare for the socioeconomic submarket, which involves providing healthcare to all patients and is aimed at bringing equity in healthcare provision (Plunkett, 2017). These services focus on the physical, psychological, and social healthcare issues. These are the main functions of all healthcare facilities. Primary healthcare services are important and are the basics of healthcare provision (Plunkett, 2017). The demand for primary healthcare services is on the increase due to the rise of chronic and no communicable diseases, which include depression, anxiety, and diabetes (Plunkett, 2017). The big spenders in the healthcare industry who have been categorized under lifestyle clusters may receive tertiary healthcare, which involves specialized healthcare for inpatient and referral patients from primary and secondary healthcare. This involves advanced medical treatment, which may include plastic surgery and other complex medical interventions (Plunkett, 2017).
Consumer Response Ideas
Consumers are the most important aspects in the marketing process and should be involved in the decision-making process (Ginter, Duncan, ; Swayne, 2013). This involves conducting a research on the market and determining the consumers’ preferences and tastes. Information regarding consumers’ behavior should also be analyzed as this will help in predicting demand, which will enable proper planning, and organization of resources (Ginter, Duncan, ; Swayne, 2013). Consumers should be able to participate in the marketing process where marketers should provide information to the consumers in learning about the new facility and the differentiating attributes from other facilities (Ginter, Duncan, ; Swayne, 2013).
Marketers should also be able to influence the consumers’ choices through satisfactory information about the new facility. The marketing approach should reflect consumers’ point in the process through the provision of healthcare services aimed at satisfying the consumer’s needs. Consumer satisfaction involves meeting consumer’s needs and expectations. Since the new facility is expected to bring revenues for Tenet Healthcare, consumer satisfaction is the key to maintaining a good customer base (Ginter, Duncan, ; Swayne, 2013).
Ginter, P. M., Duncan, W. J., ; Swayne, L. E. (2013). Strategic management of health care organizations. San Francisco, CA: Jossey-Bass, Wiley.
Ozcan, Y. A., ; Linhart, H. A. (2017). Analytics and decision support in health care operations management: History, diagnosis, and empirical foundations. San Francisco: Jossey-Bass, Wiley.
Plunkett, J. (2017). Plunkett’s Health Care Industry Almanac 2018: Health care industry market research, statistics, trends, & leading companies. S.l.: Plunkett Research.
Pol, L. G., & Thomas, R. K. (2014). The Demography of Health and Healthcare. Springer: Verlag.