Written Assignment 2 – Target markets, positioning & customer behavior
Overview: For this second assignment, pick a health services organization (hospital, clinic, ambulatory, etc.) of your choice and conduct an analysis of its target markets, how it is positioned in the marketplace, and what kind of behaviors its customers exhibit when selecting their services. This includes topics covered in Weeks 3 and 4. Your research can include your own experiences with the organization, experiences of friends or relatives, the organization’s website, a visit to the organization (if possible), websites of competitors, library research on the service category, any notes from the overview and readings for Weeks 3 and 4, and any other place you think you can find information to provide depth to your analysis.
After completing your research, prepare your Written Assignment 2 as directed by the general guidelines for written assignments in the syllabus, project descriptions, by answering each of the following questions in turn:
- Name and describe the health service organization.
- Describe its primary target market in terms of the segmentation variables presented in the Week 4 Overview. You can use the PRISM system or describe it yourself.
- What kind of behaviors do its patients/clients exhibit when making a decision to use the organization’s services? Might want to refer to the Health Service Model.
- What do you think is the organization’s value proposition? Use the generic value propositions outlined in the Week 4 Overview.
- Describe the organization’s primary competitors. If possible, prepare a positioning map using two variables important to the patients/clients of the organization.
- Based on your competitive analysis, what do you is the organization’s competitive position?
- What recommendations would you make for changes to the organization’s target market, services or competitive position and why?
Week 3 Concepts: Week 3 Overview
- Influences on Consumer Behavior
- Motivation
- Perception
- Learning
- Memory
- Health Belief Model
- Buying decision model
- Role of service quality in health service purchases
- Online Text: Core Concepts in Marketing
- Chapter 4, pgs. 27 – 33
- Week 4 Concepts: Week 4 Overview
Market segmentation
- Market targeting
- Value Proposition
- Positioning
- Marketing objectives
- Online Text: Core Concepts in Marketing
- Chapter 4, pgs. 34 – 47
Textbook
Expert Solution Preview
Introduction:
In this assignment, we are required to analyze a health services organization by conducting an analysis of its target markets, how it is positioned in the marketplace, and what kind of behaviors its customers exhibit when selecting their services. Based on our analysis, we need to provide recommendations for changes to the organization’s target market, services or competitive position and why.
1. Name and describe the health service organization.
The health services organization that I have chosen for this assignment is Mayo Clinic. It is a nonprofit healthcare provider that offers integrated medical practice, education, and research. Mayo Clinic has a history of more than 150 years and is currently headquartered in Rochester, Minnesota, USA. It has branches in multiple countries including the United States, United Kingdom, and United Arab Emirates.
2. Describe its primary target market in terms of the segmentation variables presented in the Week 4 Overview. You can use the PRISM system or describe it yourself.
Mayo Clinic’s primary target market can be segmented based on the following variables:
– Demographic: Middle and upper-class individuals, both male and female, above the age of 50 years.
– Psychographic: Health-conscious individuals who are proactive in maintaining their health and have a higher level of education and income.
– Behavioral: Patients who require specialized medical care for complex or rare medical conditions or have received a referral from their primary care physician.
3. What kind of behaviors do its patients/clients exhibit when making a decision to use the organization’s services? Might want to refer to the Health Service Model.
Mayo Clinic’s patients exhibit the following behaviors when making a decision to use the organization’s services:
– Problem recognition: Patients who have complex medical conditions or have not received relief from their primary healthcare providers seek medical services at Mayo Clinic.
– Information search: Before selecting Mayo Clinic, patients gather information about their medical condition from their primary care provider, online sources, and referrals from others who have received care at Mayo Clinic.
– Evaluation of alternatives: Patients evaluate Mayo Clinic against other healthcare providers based on its reputation, quality of care, and expertise of its physicians.
– Purchase decision: If Mayo Clinic meets patients’ needs and expectations, they make an appointment for a consultation or treatment.
4. What do you think is the organization’s value proposition? Use the generic value propositions outlined in the Week 4 Overview.
Mayo Clinic’s value proposition can be described as:
– Superior quality of care: Mayo Clinic is known for its highly specialized medical care, which is supported by its cutting-edge research and education programs.
– Patient-centered care: Mayo Clinic’s healthcare providers collaborate with patients and their primary care physicians to provide efficient and effective healthcare services.
– Brand reputation: Mayo Clinic is a trusted and well-respected healthcare provider that has been serving patients for over 150 years.
5. Describe the organization’s primary competitors. If possible, prepare a positioning map using two variables important to the patients/clients of the organization.
Mayo Clinic’s primary competitors are:
– Academic medical centers such as Johns Hopkins Medicine and Cleveland Clinic.
– Community hospitals such as HealthPartners and Allina Health.
Based on patient experience and reputation, a possible positioning map for Mayo Clinic and its competitors is shown below:
[Image description: A 2-dimensional positioning map with the horizontal axis representing “Reputation” and the vertical axis representing “Patient experience.” Mayo Clinic is shown as the leader in both reputation and patient experience, while Cleveland Clinic follows with high reputation but lower patient experience. Community hospitals have lower reputation and patient experience scores.]
6. Based on your competitive analysis, what do you think is the organization’s competitive position?
Based on the competitive analysis, Mayo Clinic has a strong competitive position in terms of reputation, patient experience, and specialized medical care. It is a leader among academic medical centers and has higher brand recognition compared to community hospitals.
7. What recommendations would you make for changes to the organization’s target market, services or competitive position and why?
Mayo Clinic could expand its target market by focusing on attracting younger patients with chronic medical conditions such as diabetes and heart disease. It could also invest in telemedicine services to provide remote healthcare services to patients who live far away or have mobility issues. In terms of competitive position, Mayo Clinic could differentiate itself by enhancing its patient experience through personalized care and convenient access to healthcare services. This could help Mayo Clinic maintain its leadership position in the healthcare services market.
