Relationship between Consumer Choice and Healthcare Marketing Strategies
Brand Image
Healthcare Organizations with a Negative Brand Image
One healthcare organization with a negative brand image is the Hurley Medical Center in Flint. The organization received a negative brand image because of patient safety issues. The issue was exposed after The Leapfrog Group conducted a study to determine the ability of healthcare organizations to protect patients from infections, accidents, injuries, and errors. Based on the Leapfrog Hospital Safety grading system, the organization received an F, which indicates that the organization has not put the proper measures to protect patients. Another healthcare organization that has a negative brand image is Howard University Hospital. The series of events that led the two organizations to this situation included customer complaints about the quality of services offered to patients and an increase in infections and medical errors, followed by the need to investigate the complaints and hold the organizations accountable.
Branding Strategies Needed to Restore a Tarnished Brand
One of the branding strategies that would need to be implemented to restore a tarnished brand is providing honest customer feedback and creating a campaign to increase customer interaction so that the brand can get information about the concerns that could affect the brand’s image and recommended solutions. The second strategy is acknowledging the brand’s mistake and compensating the customers negatively affected by the brand’s activities. The brand should also apologize to affected stakeholders. The third strategy is informing the customers about the measures the brand takes to eliminate the issues that could tarnish the brand image.
For-Profit vs. Non-Profit Health Care Organizations
Strategic Goals of the Organizations
The strategic goal of for-profit healthcare organizations is to make a profit for the owners and investors and return dividends to their shareholders. Conversely, non-profit healthcare organizations aim to fulfill their mission and make enough money to sustain operations. Non-profit healthcare organizations also focus on promoting a specific cause (Ayyıldız et al., 2017). For example, a non-profit healthcare organization may be dedicated to creating awareness about preventing healthcare issues such as obesity.
Variation in Access to the Capital Market
For-profit healthcare organizations access capital by selling their services to customers. According to Zietlow et al. (2018), for-profit healthcare organizations access more capital than non-profit healthcare organizations because they can reinvest the profits to improve their services and attract more customers. Contrariwise, non-profit healthcare organizations access capital from donors and government organizations.
Strategic Marketing Differences Between These Two Organizations
For-profit healthcare organizations use marketing initiatives to target a specific group of potential customers to expand their market share, sales, and revenue. For-profit healthcare organizations also use their marketing initiatives to communicate the value and uniqueness of their products to customers to increase their competitive advantage. On the other hand, the marketing initiatives used by non-profit healthcare organizations focus on delivering a message about an action, service, or product. They also focus on getting support from corporate sponsors, the general public, volunteers, and donors.
Quality Attributes of These Two Organizations
The quality attributes of for-profit healthcare organizations are the quality of the products and services offered to customers and their ability to meet their needs and expectations. Conversely, the quality attributes of non-profit healthcare organizations are the number of supporters interested in supporting the organization’s cause and the increase in the number of donors.
The Management of Pricing and Volume
For-profit healthcare organizations use competitive pricing by setting higher or lower prices than competitors and adjusting prices based on the demand for their products and services. In contrast, non-profit healthcare organizations use bundling and percentage-based pricing to generate the revenue needed to sustain operations. Further, volume in for-profit healthcare organizations is managed based on the level of demand and availability of supplies. Non-profit healthcare organizations, on the other hand, manage volume based on the significance of the selected cause. For example, during the COVID-19 pandemic, most campaigns were pushed by non-profit healthcare organizations related to COVID-19 prevention.
References
Ayyıldız, H., Akmermer, B., & Akyüz, A. M. (2017). Marketing approach for non-profit organizations. Advances in Public Policy and Administration, 156-181. https://doi.org/10.4018/978-1-5225-0731-4.ch008
Zietlow, J., Hankin, J. A., Seidner, A., & O’Brien, T. (2018). Financial management for nonprofit organizations: Policies and practices. John Wiley & Sons.
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Question 
This reflection activity is comprised of two sections, totaling a minimum of 500 words. Complete your reflections by responding to all prompts.
Relationship between Consumer Choice and Healthcare Marketing Strategies
Brand Image
Answer the following questions:
Identify 1 or 2 healthcare organizations that have a negative brand image. What event or series of events led the organizations to this situation?
What branding strategies would need to be implemented to restore a tarnished brand?