Marketing Theory and its Applications in the Healthcare Industry
Journal Title: International Journal of Marketing and Technology - Year 2012, Vol 2, Issue 8
Abstract
This paper deals with Services Marketing principles with special reference to the healthcare industry. The focus is on the impact of technology on healthcare marketing as observed in some corporate specialty hospitals in the South. The three key players in this field are: Company (Management and administrators), customers (patients and their attendants) and service providers (physicians, surgeons). They occupy the vertices of the Services Triangle. Between these three points, three types of marketing must be efficiently carried out for the service to succeed. These are: external marketing, interactive marketing, and internal marketing. These marketing activities are widely assisted by technological innovations such as Information Technology (IT) Systems, telecom devices, electronic and biomedical equipment. A whole gamut of activities including registration and admission of patients, allotment of rooms to inpatients, fixing appointments with doctors and consultants are covered by Information Technology. In addition, maintenance of records, billing and other administrative tasks come within the purview of IT systems. Parasuraman, Zeithaml and Berry formulated a Service Quality model that highlights the main requirements for delivering high service quality. According to this, there is a gap between expected and perceived service. It relates to management‟s understanding of consumer expectations, translating perceptions into service specifications, service delivery, and external communication to customers. GAP 1 is customer expectation minus company understanding. GAP2 is company understanding minus setting standards (service specifications). GAP3 is standards set minus delivery. GAP4 is delivery minus external communication. The overall gap is the sum of all these, the Gap between Expectation and Perceived Service Delivery. Based on the Service Quality model, Parasuraman et al, identified the following five determinants of service quality: Reliability, Responsiveness, Assurance, Empathy and Tangibles. Reliability is the ability to perform the promised service dependably and accurately. Responsiveness is the willingness to help customer and provide prompt service. Assurance covers employees‟ knowledge and courtesy, and also their ability to inspire trust and confidence. Empathy includes caring and individual attention given to customers. Tangibles refer to appearance of physical facilities, equipment, personnel, and written materials. The Institute of Cardiovascular Diseases in the Madras Medical Mission has specialized in by-pass heart surgery and is attracting patients from all over the world. One notable feature here is that risk factors have been reduced owing to modern technological devices and attention of experts, thereby enhancing reliability. In other corporate hospitals also, computerized prescriptions have almost become routine and these serve to avoid errors in administering drugs with proper dosage. Trauma cases and emergency medical care must be given immediate attention and for this hospitals must be prepared all the 24 hours. Delivery cases (maternity and labour cases) stand in the same footing. In all such instances, willingness of concerned doctors and hospital staff (responsiveness) to help patients and provide prompt treatment is of the utmost importance. Similarly, assurance indicates another parameter that goes to satisfy the patients (the customers) who are seriously ill. Nowadays, chemotherapy and radiotherapy have become accepted and trusted methods of treating the killer disease, cancer. The Cancer Research Institute (CRI) in Adyar, Chennai, has extended an assurance to patients that „cancer is curable‟. The crowds of people which throng the CRI stand testimony to this. Empathy is something instinctively felt by customers, patients in hospitals. People who prefer individual attention go to neighbourhood hospitals which are not too crowded. Servicescapes form an essential component of tangibles. These include airconditioned ambience (dust and noise free) pleasing interior design, good canteen facilities etc. An expanded marketing mix for services has been suggested by service marketers. This consists of people, physical evidence, and process apart from the traditional four P‟s (Product, Price, Place and Promotion) Modern high tech equipments have helped in bridging the gaps between management, service providers and customers thereby enhancing service quality and improving customer satisfaction and loyalty.
Authors and Affiliations
Dr. R. VENKATESH
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