Health Care Marketing Strategies from a Financial and Ethical Perspective
The Uniqueness of Economics in Health Care from Other Industries
Economics in healthcare is unique from other industries because of various attributes. One of the attributes is that it includes extensive intervention from government agencies. For example, government agencies regulate the cost of healthcare services, thus impacting the revenue generated by the healthcare industry. The second attribute is barriers to entry. Individuals and organizations entering the healthcare industry are regulated through licensing and government permits, thus creating barriers to entering the industry. Economics in healthcare is also influenced by third-party agents, such as insurance companies, that impact the demand for healthcare services by increasing healthcare affordability (Schmitz & Winkler, 2018). Another attribute of the economics in healthcare is uncertainty in revenue and expenditure because the sales and expenditure are influenced by existing regulations and interventions such as healthcare insurance.
The Uniqueness of Marketing in Health Care from Marketing in Other Industries
According to Purcarea (2019), healthcare marketing is a broad field because it uses specific techniques, methods, and concepts relating to social and classical marketing. Marketing in healthcare has various characteristics that make it unique from marketing in other industries. One of the characteristics is that healthcare organizations must abide by various advertising and marketing guidelines set by the government licensing boards. For example, HIPPA requires all healthcare organizations and providers to get consent from patients before they share their healthcare data and regulates how hospitals and doctors can advertise and use customer data in marketing. The second characteristic is an emphasis on sharing accurate and reliable information to avoid misleading customers. For example, healthcare organizations and providers must provide accurate information about the side effects of the medication and services advertised to clients, even though the side effects may be negative. The measurement of the desired marketing outcome is also different in healthcare marketing because the healthcare organizations and providers focus on factors that affect the provision of healthcare services, such as research grants, patient trust, and the number of subjects who sign up for clinical trials rather than focusing on the increase in the number of patients. Marketing in healthcare also focuses on sharing information about the benefits of healthcare services or products to improve healthcare outcomes.
Marketing Challenges
One of the marketing challenges that might arise if a major healthcare provider stops providing a product or service that is socially popular but economically unprofitable is a lack of trust from customers. The healthcare provider may lose the trust of potential customers because of the uncertainty of why the healthcare provider has decided to drop a socially popular product or service that is not economically profitable. The second challenge is difficulty determining the appropriate marketing message that will communicate the product or service’s value and an appropriate marketing strategy that can be used to convince customers to purchase the product or service.
Marketing Elements to Consider
One of the marketing elements that should be considered before the healthcare provider eliminates a product or service that is socially popular but economically unprofitable is public awareness about the product. It may be challenging to eliminate the product if many customers know it because that would raise customer concerns. The second element is the product’s availability. If the product is readily available to the customers, the healthcare provider may reconsider eliminating it because doing so would impact its relationship with customers who use the product or service. The third element is the impact of the product on profitability and reputation. The healthcare provider may reconsider eliminating a product or service that boosts its popularity and reputation.
References
Purcarea, P. L. (2019). The impact of marketing strategies in healthcare systems. Journal of Medicine and Life, 12(2), 93-96. https://doi.org/10.25122/jml-2019-1003
Schmitz, H., & Winkler, S. (2018). Information, risk aversion, and healthcare economics. Oxford Research Encyclopedia of Economics and Finance. https://doi.org/10.1093/acrefore/9780190625979.013.266
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Question 
Analyze healthcare marketing strategies from a financial and ethical perspective.
Health Care Marketing Strategies from a Financial and Ethical Perspective