Over the past four decades, spending on healthcare in the United States grew more rapidly than the economy (Baker, Birnbaum, Geppert, Mishol, Moyneur, 2008, p. 541). Healthcare has nearly tripled its share of national income during this time (p. 543). All aspects of the nation's health system have been affected by this ongoing spending growth. Strategically marketing the development of products and services during this intense competition and uncertainty is vital for any healthcare organization to stay profitable and to ensure continued growth. Justification of The Villages Regional Hospital Associate Life Cycle
The Villages Regional Hospital (TVRH) is part of the Central Florida Health Alliance (CFHA) which has been serving patients in its community for than 11 years (CFHA, 2013). The thought process behind CFHA’s reasoning and objectives of opening another hospital can be summarized through the use of Booz, Allen & Hamilton’s New Product Process. The use of the Booz, Allen & Hamilton’s New Product Process guided the board of directors and administration of CFHA through the product development activities from strategy development and idea generation through to commercialization of the new hospital. The market entry for a new hospital is complicated by immense rules and regulations governing healthcare services and products. The data collected and reviewed through the Booz, Allen & Hamilton’s New Product Process depicted minimal risk of market entry in the geographical location of The Villages, Florida. Using the Booz, Allen & Hamilton’s New Product Process marketers laid the foundation for a new hospital by reviewing corporate objectives and identifying roles the new hospital might play in satisfying those objectives. During the idea generation stage a self assessment was used to determine the categories that were of primary interest. The CFHA identified an area of growth opportunity that could be exploited. During the screening and evaluation stage a law through the Agency for Health Care Administration states that a county that has experienced at least a 60 percent population growth over the last decade can add up to 180 beds without obtaining a certificate of necessity (CON). The opportunity of not needing a CON allowed CFHA to open TVRH with minimal risk and no competitors within a 40 mile radius (Curry, 2011). Product Life Cycle
Every product or service has a life cycle; introduction, growth, maturity, and decline (Fortenberry, p. 4, 2010). This fact is a vital and valuable concept in marketing for succession planning and scheduling appropriate product management activities. The product life cycle describes the stages an average product or service goes through from when it was first thought of until it finally is redefined or eliminated from the market. The type of marketing techniques chosen for each stage of the product life cycle needs to match the targeted audience in order to be effective and successful. Understanding the product life cycle and what idea to promote such as product awareness, building brand awareness, differentiating product from competitors, and product repositioning assists the successful healthcare manager in promoting portfolio planning, strategy formulation, and forecasting (pp. 7-8). A good example of knowing what to promote during each product stage can be illustrated by products or services that hold a strong loyalty from customers or is strongly branded. This type of product could be a repositioned product which may never reach the decline stage. Marketing for this type of product or service is done through further differentiating the product from the competitors and not through product awareness and brand building.
Strategy to Improve the Marketing Mix
An important strategy for The Villages Regional Hospital to improve their marketing mix is through the establishment of branding their products and services. The targeted audience’s environment and the product...
References: Baker, L., Birnbaum, H., Geppert, J., Mishol, D., Moyneur, E., (2008) The relationship between
availability and health care spending
Centers for Medicare and Medicaid Services, (2013). HCAHPS: Patients’ Perspectives of Care
Central Florida Health Alliance (2013). The Villages Regional Hospital. Retrieved from
Fortenberry Jr., J. L. (2010). Health care marketing: Tools and technique. (3rd ed.). Sudbury,
MA: Jones and Bartlett
Department of Health and Human Services (2013). Health communication and health
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