A brief overview of the organization's service/products and a description of its target market
The Novel Hospital is a medical center located in Detroit, Michigan, and it is situated in the area bordering the industries. It is a standard medical facility, offering a variety of products and services to its clients. The hospital offers both inpatient and outpatient services. It is well equipped for these services and offers standard services like ward facilities and nursing services. It also offers ICU services, pediatrician services, maternity services, and the emergency unit. For the products, the Novel Hospital has a pharmacy that sells various drugs and medical equipment. The products and services offered in the hospital are efficient, and the most significant and valued service is the emergency unit which comes in handy to the target market of the Novel Hospital. The target market of the hospital is the population of workers in the industries as it mostly focuses on offering services related to occupational health hazards and industrial-related calamities. The hospital has specialists who offer services to deal with occupational hazards such as chemical burns, gas inhalation, and eye injuries. In as much as the hospital serves all kinds of populations, its target market is the workers in the nearby industries, and the organization has based its marketing strategy, pricing strategy, and channel distribution based on the target market.
How do you think the organization arrives at its price?
The price range offered by the Novel hospital is relative to the target market. The hospital charges one hundred and fifty dollars as consultation fees, which is the fee paid for expert analysis, evaluation, and advice on the health condition. Thereafter the client is charged differently as per their diagnoses. The price is reasonable according to the pricing considerations, such as the ability to make a profit and the location of the organization. The pricing is also up to standard because the hospital has updated facilities and qualified specialists, and therefore, the client is assured quality products and services from the hospital. The Novel Hospital has considered cases of emergencies, whereby a consultation fee is not necessary as immediate action is required. The hospital organization has also recognized that most workers have effective and sufficient insurance covers. This takes off the pressure of paying for medical services in cash off the patients, and especially during an emergency, the client should not have to stress about payment. Insurance cover also helps the hospital to maximize on profit by offering all the products and services that a client needs within the facility.
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Do you think the pricing strategy is appropriate?
The pricing strategies appropriate as it offers advantages to both the client and the hospital. The strategy also ensures that the clients pay exclusively through insurance unless under special circumstances. The consultation fee is also relatively affordable and standard that most of the salaried industry workers would be comfortable to pay. The pricing strategy is also appropriate because the hospital board has taken into consideration the various aspects that affect the pricing and ensure the profitability of the hospital, such as the location, competition, cost of operation, and other expenses that are required to run the hospital (Camilleri, 2018).
Is the organization hindered or helped in their pricing decisions by government or payer restrictions?
The Novel hospital is helped in making pricing decisions by the government. This is because the government has issued an average price range for various products and services; for instance, pharmaceutical products and medicine are priced by the government, and the institution could not overprice them. Competitors also determined the pricing of the products and services offered at Novel Hospital as it is necessary to offer a price that will attract customers while also ensuring that the organization is not running at a loss. The government also hinders the pricing at the hospital because there are some products and services that the government has recommended to be offered freely to the customers, for instance, first aid services and essential vaccines.
What kind of value delivery network does the organization employ, what is their distribution strategy? What factors influence the distribution strategies of this organization? Are they customer-focused? If possible, outline all of the channel members and what function they perform to serve the customer?
The hospital value delivery network includes both external and internal networks as it purposes to satisfy the needs of external stakeholders such as customers and shareholders while also fulfilling the needs of internal operations such as the workers and management. The distribution strategy of Novel hospital is both direct and indirect. It is considered to be direct as the services offered do not require a middleman, and they are offered from the specialist to the receiver (Durie & Andualem, 2018). However, the products sold, such as medical equipment and medicine, are distributed indirectly from the manufacturer to the hospital, which acts as a retail point for the products to be received by customers. This shows the presence of a middleman. The factors influencing distribution strategies in the Novel Hospital include the location, target market, competitors, laws and regulations, and the manufacture.
Can you recommend any changes to the value delivery network that would serve customer needs better?
One recommendation that would improve customer satisfaction in changing the value delivery network is by trying to make the delivery channel to be mostly direct delivery. This would reduce the price of products and services on the premises. The hospital could also avail a variety of products and services such that a customer is able to access most needs within the hospital without having to outsource them. The hospital should also diversify its marketing strategy and attract a broader range of clients while also establishing a wider range of target markets.
References
Camilleri, M. A. (2018). Market segmentation, targeting, and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.
Durie, A. D., & Andualem, G. (2018). The marketing strategy of firms: an inside out perspective. Independent Journal of Management & Production , 9 (3), 889-906.
