Decisions in the healthcare industry are made by entities, such as governments, care providers, and insurance companies in various capacities. For instance, the government decides the premiums that citizens pay for Medicare for easy access to health care services when the need arises. Similarly, for-profit businesses in the healthcare industry, such as pharmaceutical companies, make decisions that increase their profitability in the long run. For-profit businesses design strategies in various capacities that aim to position their products to appropriate clients to increase their income.
For instance, for-profit organizations use the Ansoff Matrix to determine how to penetrate existing and new markets to sell their health care products. For example, using the Ansoff Matrix, a pharmaceutical company creates strategies to grow its product sales in existing markets, launch an already existing drug in a known market, introduce the product in a market where the item was non-available, or explore a new market that does not have company products ultimately ( Kotler, Shalowitz, & Stevens, 2011) . The company could then design ways to achieve any of the four aspects of the Ansoff matrix above by, for instance, market segmentation and then creating strategies to attract clients in an identified target market.
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The company, for instance, could decide to lead in the new market by product positioning, where the pharmaceutical for-profit business emphasizes the quality of its products or low prices to attract clients. The company could also decide to brand its medication in attractive packaging to attract customers or insist on its fast effectiveness compared to those of the competitor ( Hailu, Workneh, & Kahissay, 2021) . Marketing strategies to push the product in the market could also be created by the company, such as email marketing, social media, or direct sales employees to achieve business revenue income expectations. Therefore, even for-profit businesses in the healthcare environment create plans to push their products in existing and new markets to ensure their sustainability.
References
Hailu, A. D., Workneh, B. D., & Kahissay, M. H. (2021). Influence of pharmaceutical marketing mix strategies on physicians’ prescribing behaviors in public and private hospitals, Dessie, Ethiopia: a mixed study design. BMC Public Health , 21 (1). https://doi.org/10.1186/s12889-020-10063-2
Kotler, P., Shalowitz, J. I., & Stevens, R. J. (2011). Strategic marketing for health care organizations: Building a customer-driven health system . John Wiley & Sons.
