The Key Characteristics of the Users of the Products and Services
The Houston Methodist Hospital is located in the Texas Medical Center established in 1919 by the Methodist Episcopal Church (Houston Methodist, n.d.). The facility is ranked as the best hospital in Texas and is among the best 152 hospitals in the United States based on a report by the U.S News and World Report. It has held the title as the best hospital in Houston for the last five years. Patients who visit the facility have similar characteristics. These patients are looking for specialized treatment for different ailments, and they cut across all age groups. In addition to the patients, medical students and interns also go to the facility that is renowned for providing excellent teaching facilities for students from the Cornell University and the University of Houston (Houston Methodist, n.d.). Another group of individuals who attend the hospitals includes athletes from the local teams who have officially collaborated with the facility to provide them with the best healthcare services available in the state of Texas.
The facility has several characteristics that make its services stand out from the rest. Firstly, it is consistent in providing quality baseline services. The hospital ensures that its patients receive the right treatment at the right time enhanced through the groundbreaking research done continuously at the hospital by the best physicians and scientists working on over 800 clinical trials (Houston Methodist, n.d.). Also, its training facilities for future doctors ensure that service delivery remains consistent. Secondly, the services offered at the facility are done so by standardized quality improvement models such as Total Quality Management (TQM) and the Leadership Action Model. These models ensure that the facilities are dedicated to the provision of quality services through a stable decision-making process (Armstrong et al., 2015). Third, the facility is known for placing the needs of its patients’ first. Patients who attend to the hospital are classified as either local, national, or international clients so that their needs are dealt with more efficiently.
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Finally, the facility has engaged physicians who are always available to assist the clients through specialized clinic programs. These clinics and program include; Women’s Heart Program, Valve Clinic, Cardiac Health, and Rehabilitation Program, the Adult Congenital Heart Program among others (Houston Methodist, n.d.). This facility also ensures that the doctors use the latest surgical technology available in the market so that their patients recover and heal faster using minimally invasive surgery techniques.
The Competitive Environment for Houston Methodist Hospital A Course Of Action
Over the years, the healthcare marketplace has become competitive with hospitals across America scrambling for the billions of dollars from insurance companies, patients, and the government. The benefits of having a competitive industry trickle down to the clients who will enjoy lower costs of services improved technological innovation and quality at hospital facilities (Lee, 2014). However, a competitive environment also runs the risk that medical practitioner may take advantage of patients and turn the venture into a profit making one to remain afloat. Such actions may raise moral questions on the need for competition in the healthcare industry.
For the last five years, the Houston Methodist Hospital has retained its reputation as the top hospital in Texas as well as being named one of the best in the U.S. to maintain this level of success; there are strategies that the health provider can incorporate into its operations. The first strategy that the healthcare provider should employ is a pricing strategy.
In the healthcare market, the prices set by one business also affect competitors in the industry. The hospital may opt to collaborate with insurance companies and government programs such as Medicaid to provide patients with financial incentives. This will see the facility lower its prices for services rendered at its premises relative to its rivals both close by and far away. Given that the hospital is a renowned brand in the healthcare industry, it is expected that the facility will gain a commanding market share and a competitive edge over its rivals (Sreenivas et al., 2013). The benefit of the pricing strategy is a win-win situation for patients who receive affordable medical services and the hospital, which increases its revenues through an increased number of patients visiting its facility for specialized care.
The second strategy that the facility can implement is a branding strategy. The hospital is already known throughout the country for its provision of quality health care services. However, there is a need to ensure that the hospital’s position as a leading specialized institution remains in the minds of consumers. Therefore, the facility can seek endorsements from peers and run advertisements that promote the hospital as a brand dealing with specialized care for various ailments. The endorsement messages can be different and each done by a prominent personality promoting different specialized care provided at the facility. On its own, the hospital can promote its brand by sponsoring charity events both the local and national levels. These activities go a long way in ensuring that the hospital retains its position as a leading brand in the provision of specialized health care services.
Effective Tools of the Marketing Mix Available to Health Care Providers
The marketing mix refers to tactical marketing tools that can be controlled and is used by a firm to get a desired consumer-based response for its products and services (Armstrong et al., 2015). The marketing mix is classified under four Ps such as product, promotion, place, and price. Each of these four Ps has marketing tools that ensure the provision of quality services for the Houston Methodist Hospital. Under product, the hospital offers its clients with the best-specialized care for different ailments. These range from heart conditions to cancer treatment. As such, patients who suffer from multiple conditions can get the same services under one roof at the Houston Methodist Hospital.
On promotion, the facility markets itself through sponsoring of local events such as local marathons to create awareness on a health issue. Also, the hospital promotes its brand by advertising in groundbreaking procedures and endorsements from local athletes who use the facility as their official partner.
Under place, the Houston Methodist Hospital system, there are seven hospitals located in the same location. These hospitals have several specialized clinics all located under one roof making it easier for patients to access different clinics and programs within the same place instead of traveling from one state to another for various treatments. The most effective marketing tool for the facility is the ‘place.’ As aforementioned, the facility has several hospitals, clinics, and programs all run in one location making it convenient for patients to seek treatment without much hassle.
The Best Possible Pricing Strategy for the Services Offered
Pricing strategies are essential for any organization trying to gain a competitive advantage in the marketplace. Pricing strategies can be used independently or as a combination of several strategies. The first strategy is economy pricing. As earlier mentioned, the cost of health care is the U.S. is high. Through economy pricing, the business will be able to attract price-conscious consumers who are mainly low-income earners. As such, the company may collaborate with insurance companies and government department to provide discounts to price-conscious clients. The second pricing strategy that the hospital can introduce is pricing aimed at market penetration. Such a strategy is particularly useful in attracting consumers to new services offered at the facilities that are yet to kick off. Also, it helps to draw the attention of customers away from rivals who offer similar services.
Economy pricing may be used particularly for cardiovascular treatment cases, which may be deemed expensive for the average and low-income earning citizens. However, offering discounts, and through partnerships, these procedures can become cost-effective for its clients. Since the facility is always involved in clinical trials for groundbreaking treatments, it can use market penetration pricing for its newer services to ensure that they break into the market.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction . Pearson Education.
Houston Methodist (n.d.). The difference between practicing medicine and leading it. Retrieved from http://www.houstonmethodist.org/
Lee, T. H. (2014). The strategy that will fix health care.
Sreenivas, T., Srinivasarao, B., & Srinivasa Rao, U. (2013). An analysis on marketing mix in hospitals. Int. J. Adv. Res. Manage. Soc. Sci , 2 (4), 187-207.
