- March 24, 2013
- Posted by: essay
- Category: Term paper writing
Marketing mix (4Ps) services:
Price. This business plan assumes positioning of the “Helios”¯ Medical Center in the medium price segment.
Product. The main products of the Center include such medical services: diagnosis, treatment and prevention of obesity and the problems associated with overweight.
Promotion. Promotion of the services of the Centre, in the first place, is aimed at the market of individuals who are obese, overweight and have associated health problems.
Place. The center may be located in any area of the city, and the best is to locate it near major hospitals or clinics, where there are no special offices for obesity treatment, but there is a flow of patients.
In marketing analysis of medical segment it should be said that medical services are passive objects of demand. Potential patients often do not respond to the marketing efforts of medical institutions, as long as they have a need to obtain these services. The most successful in the provision of paid medical services are organizations, which are be able to get potential customers to pay attention to the competitive advantages compared to other market participants. (Berkowitz, 2010)
The most important factor in the cost-effectiveness of medical business is the competitiveness of the services. Competitiveness of therapeutic and diagnostic services is determined by a combination of the quality and price characteristics, their relevance to potential customers, and ability to meet the needs of clients in the professional medical care. Patients are primarily interested in cost-effectiveness of the use of medical services and the resulting benefits, since each patient tends to maximize the value of efficiency of the services consumed. (Fortenberry, 2009)
“Helios”¯ medical center aims to surpass its competitors by maximizing the quality characteristics of its services. It can successfully escape from competition with the help of correct positioning and promotion program. The marketing program will include both advertising of the Center and sales promotion of its services. Advertising helps in the creation of image of the medical center, while sales promotion involves stimulation of sales. On the other hand, both advertising and sales promotion are called to increase the number of clients and increase the volume of medical services provided to consumers.
Most often, medical centers use discounts for promotion of medical services. “Helios”¯ Medical Center will offer the following system of discounts:
”¢ Family discount (7% discount for families, consisting of more than three persons);
”¢ Children’s discount (7%).
There will also be provided a loyalty program for regular customers, which implies a discount, as well as special offers and presents. In addition “Helios”¯ medical center congratulates its regular customers with holidays by sending postcards with its logo. This is a cheap and useful tool for maintaining good relationships with clients, and for self-promotion. Also, “Helios”¯ marketing manager periodically informs customers about new medical services and special prices through emails.
Medical center, like any other business, can not do without advertising and sales promotion, that includes:
– advertising in journals about medicine and health;
– outdoor advertising;
– printing promotional items (brochures, calendars, flyers, etc.)
– participation in various health forums, exhibitions, which are of great importance in terms of finding partners and establishing business connections.
In the era of global computerization it is important to use modern technological resources, such as Internet, since Internet is the easiest way to get information about any company. That is why for medical center it is important to have a web-site, which provide customers full information about the center, description of medical services and prices, interesting and useful medical information, etc. “Helios”¯ medical center has its website, where it posts information, which can be useful to a potential patient (that is, information about the services that company provides, its prices, special propositions and so on).
Thus, it is possible to say that “Helios”¯ Medical Center actively promotes its services through various forms of advertising, such as: audio-visual advertising, flyers, outdoor advertising, mail advertising, etc. The whole complex of advertising and sales promotional activities helps “Helios”¯ to attract clients, to inform them about the services of the center, as well as to stand out among other competitors.
Analysis of the financial plan can enhance the effectiveness of the planning process. A detailed financial analysis can identify potential perspectives of the new medical center, as well as the relative position of the company compared to its competitors. (Moseley, 2010)
First it is necessary to consider the basic costs required to open the medical center:
1. Capital expenditures, which include the following costs:
– rental and repair facilities of the future center
– costs for medical and office equipment
2. Fixed costs on the draft include:
– Production costs
– Administrative and office expenses
– total labor costs
– Fixed marketing costs
– Depreciation of fixed assets
– Other expenses
3. Administrative costs include:
– cost of rent, including utility payments,
– current expenditures (office supplies and materials for office equipment, security, etc).
The administrative costs of this business plan include rental costs, and the forecast cost of rent and utility payments is calculated as the total amount of rent of the room of about 500 square meters at the rental rate of $ 55,000 per year.
It is necessary to point that the costs that make up the cost of production (of services) are grouped according to their economic substance of the following elements:
– Material costs;
– Labor costs;
– Social contributions;
– Depreciation of fixed assets;
– Other costs.
Gross income of the medical center must be calculated as the difference between gross receipts and costs used in the production of goods (works, services), raw materials, components, goods purchased, fuel and maintenance costs, costs for rental of premises, etc. Gross receipts of the business is calculated as the sum of the proceeds from the sale of goods (works, services) during the reporting period. Revenue is calculated based on the cost of services and their prices. This business plan assumes that the amount of revenue for the first year will be two times less than in the future years.
Thus, summarizing all the above, we can make the following conclusions:
1. The project is expected to be financially feasible and highly effective for investors.
2. The project is stable with respect to possible changes
of values of its basic parameters.
3. The project can be described as lucrative
project with a moderate level of risk.
4. The demand for medical services of obesity treatment exceeds the supply.
6. The payback period of the organization of the Medical Centre is expected about 12 months at the maximum
7. The profitability of the project is expected as high.
Berkowitz, Eric N. (2010). Essentials of Health Care Marketing. Jones & Bartlett Learning
Fortenberry John L. (2009).Health Care Marketing: Tools and Techniques. Jones & Bartlett Publishers
Kotler P., Gary Armstrong. (2010). Principles of marketing. Pearson Education
Moseley George B. (2009). Managing healthcare business. Jones & Bartlett Publishers
Thomas, Richard K. (2009). Marketing Health Services. Health Administration Press
Zuckerman, Alan M. (2002). Improve Your Competitive Strategy. Health Administration Press