Introductionto Marketing and Non-Profit Marketing
Introductionto Marketing and Non-Profit Marketing
Manyhealth organizations have either failed or succeeded depending ontheir marketing strategies and how they target and segment theirmarkets. Mayo Clinic is one of the renowned non-profit medicalinstitutions based in Minnesota, in the USA. This institution wasestablished by William Worrall Mayo and was later managed by hissons. It started as a small organization but it has continuouslygrown, and currently it employs almost 4,500 physicians and 57,100health staff. The health institution focuses on three major areas,the first one being patient care. Mayo clinic attends toapproximately 1.3 million patients every year (Sood, 2015). This canbe explained by an increase in the number of states and countriesserved by the institution. It receives patients from more than 50states in America and 150 countries from all over the world. However,the company does not pay its employees according to the number ofpatients. They are compensated through a fixed salary, and thispractice has affected their performance since it reduces theirfinancial motivation. Research is another field of focus in MayoClinic where the institution has its researchers who contributetowards understanding the disease processes and the best clinicalpractices across the world. The organization has a total of 600research scientists (Sood, 2015).
Lastyear, a study recorded that the organization carried out more than2,700 research projects and 11,000 human research studies are inprogress. The last field of focus in Mayo is education. The focus ineducation could be attributed to the fact that those who founded theinstitution were scholars and proponents of education. MayoFoundation established a medical school in 1917, in Minnesota, whichwas worth two million dollars (Sood, 2015). The establishment of theresidency education system and many students from differentuniversities under various training programs in the institution. In1972, Mayo Clinic finally established the Mayo Medical School, whichhas contributed a lot in the medical field.
MarketingChallenges in Mayo
Despitethe aforementioned successes, the organization has experienced a fallin its revenues, and this has been attributed to the numerouschallenges it is facing in marketing its services. One of themarketing challenges is stiff competition in the health industry. Asmuch as the company has invested in various marketing strategies ithas faced stiff competition from other public and private healthinstitutions such as Cleveland Clinic and Johns Hopkins Medicine.These organizations compete for the available labor, health relatedresources and the available market (Mayo Clinic, 2012). Anotherfactor that has affected the marketing activities of theorganization, is having an ambitious program. Mayo Clinic has takenpart in the development of many projects and still aims at expandingsome of its facilities within the USA and in other countries acrossthe world. This leaves the organization with less funds to invest inmarketing its products since most of the resources are invested inother projects.
Anotherfactor that has contributed to challenging marketing in mayo is theAffordable Act. This act, made into law by President Obama in 2010,changed the entire health sector in the USA. According to the newlaw, all hospitals and other health institutions are required toprovide quality healthcare services at cheaper costs. Thus, eventhough Mayo Clinic had a larger base of patients, they left for otherinstitutions which offered more affordable services. The clinic alsohad to reduce its prices to avoid losing its customers, and this ledto a decrease in the company`s revenues. Additionally, governmentsequestration also reduced the level of government financial aid tothe institution (Astuti & Nagase, 2014). With the reduced funds,the organization could not finance its marketing services. Lastly,the sluggish economy in America in the last few years posed achallenge to the company`s marketing activities. There was a declinein the general America’s GDP, and the ability to pay for themedical bills in hospitals such as Mayo Clinic declined among thecitizens. This reduced the number of patients to the organization,thus reducing their source of revenue to the institution.
Segmentationand Target Marketing in Mayo
MayoClinic has used two major types of market segmentation. These includedemographic segmentation and geographic segmentation. In demographicsegmentation, the health institution has attracted the rightpopulation to its services based on their age and income. In terms ofage, Mayo Clinic offers services to patients of any age ranging frompregnant mothers to the old people. Some of its services includeanti-natal care for the pregnant women who enjoy these services untilthey deliver. After the birth of the baby, the mother can stillaccess post-natal care until the child reaches five years of age(Garcia & Gonzalez, 2013). Other services offered by Mayo ClinicHealth System include mammograms and diabetes care, which is mainlyassociated with the old people. It also offers mental and dentistryhealth services regardless of the patients` age, whether a child,youth or old. This wide range of services has increased theorganization`s market as everyone gets the services they need fromthe organization.
Anotherfactor that the organization has considered in its demographicsegmentation is the level of income. It is obvious that the patients`levels of income vary depending on the type of jobs one does. This iswhy Mayo Clinic has a different bracket of services to its patients.Those with high incomes get special services since they are expensivewhile low-income earners go for the affordable bracket of services inthe organization. Similarly, the health institution accepts theinsurance policies from different insurance companies to cover theirexpenses, which may only be used by the working class.
Theorganization has also implemented geographic segmentation by locatingits services in different states in America and many countries aroundthe world. For instance, the presence of Mayo Clinic is mainly feltin three states in America including Rochester, Phoenix, andJacksonville. In addition, the organization has expanded itsoperations to other 150 countries across the world to meet thedifferent need of people in such countries. For example, in coldcountries, including Finland, Russia, Greenland and Canada, theorganization offers services for asthma, heart attack, Norovirus andother common diseases in cold areas (Dolnicar & Lazarevski,2012).In Sudan, Algeria, and Iraq, the organization has establishedtreatments for malaria, Lymphatic filariasis and Neglected tropicaldiseases. This strategy has also increased the customer base for theorganization, and it intends to cover as many countries as possible.It is clear that Mayo Clinic does not have a specific target. Rather,it targets everyone regardless of age, sex or nationality. This iswhy it has a wide range of services which meet the need of thepregnant mothers, young babies, the youths and the old people.Similarly, it has spread its facilities in different countrieswhether hot, cold or warm. And this is one factor that hascontributed towards the continuous increases in the revenues of thisorganization.
Inconclusion, demographic and geographic segmentation brings theservices of the clinic close to most of its customers. This, coupledwith the different bracket of services offered depending on patient’slevel of income, ensures the clinic has loyal and return customers.Additionally, extensive research the hospital is involved in helpsmarket their products since the outcome of such studies improvespatients` wellness. According to a case study carried out by LindaKurtz in 2012, marketing is a vital element of an organization whichdetermines its successful operations. Thus, it must invest a lot inits marketing activities to increases its market share in theindustry.
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Berkowitz,E. N. (2017). Essentialsof health care marketing.Burlington, MA : Jones & Bartlett Learning.
Dolnicar,S. & Lazarevski, K. (2012). Marketing in non-profitorganizations:aninternational perspective. International Marketing Review,26 (3), 275-291. Copyright Emerald Group Publishing Limited 2012.
Garcia,M. R., & Gonzalez, L. I. A. (2013). Theuntapped potential of marketing for evaluating the effectiveness ofnonprofit organizations: a framework proposal. International reviewon public and non-profit marketing, 10(2),pp. 87-102. Available in the Trident Online Library.
LindaK. (2012). A Case Study of Advocacy Nonprofit Communications in theUnited States. TheElon Journal of Undergraduate Research in Communications.Vol. 2, 41-49.
MayoClinic. (2012). Bringingthe social media #revolution to health care.Rochester, Minn.] : Mayo Clinic.
Sood,A. (2015). TheMayo Clinic handbook for happiness: A 4-step plan for resilientliving.Boston, MA : Da Capo Lifelong, a member of the Perseus Books Group.