Professional Documents
Culture Documents
A PROJECT OF
MARKETING MANAGEMENT
ON
“A COMPARATIVE STUDY ON OUT-PATIENT SERVICES OF
CORPORATE AND GOVERNMENT HOSPITALS”
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DECLARATION BY THE CANDIDATE
I hereby declare that the work reported in the BB.A. LL.B (Hons.) Project Report entitled “A
COMPARATIVE STUDY ON OUT-PATIENT SERVICES OF CORPORATE AND
GOVERNMENT HOSPITALS” submitted at Chanakya National Law University, Patna is
an authentic record of my work carried out under the supervision of Dr. Manoj Mishra. I have
not submitted this work elsewhere for any other degree or diploma. I am fully responsible for
the contents of my Project Report.
GAURAV SINGH
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ACKNOWLEDGEMENT
Moreover, thanks to all those who helped me in any way be it words, presence,
Encouragement or blessings...
- Gaurav Singh
- 2nd Semester
- B.BA LL.B
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TABLE OF CONTENTS
Acknowledgement…………………………..…………………………………………………3
Table of Contents……………………………………………………………………………...4
Hypothesis……………………………………………………………………………………..5
Research Methodology……………..…………………………………………………………5
1. Introduction………………………………………………………………………...6-12
2. Product Differentiation…………………………………………………………...13-14
5. Conclusion……………………………………………………………………………26
Bibliography…………………………………………………………………………………27
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AIMS AND OBJECTIVES
HYPOTHESIS
The researcher has formulated the following hypothesis, the validity of which was checked in
the course of completion of this project:
1. Serviced is an essential factor for success of any organization. (PMCH & Apollo
Hospitals)
2. Government hospitals offer good service to out patients and private hospitals offer
even better.
RESEARCH METHODOLOGY
For this research both doctrinal and non-doctrinal method was used. For the doctrinal part of
the research books, library sources, various magazines and internet sources were used
extensively and for the non-doctrinal part of the research a questionnaire was circulated
among the various passengers availing the services of public and private buses.
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INTRODUCTION
Marketing is a function by which marketer plans, promotes and delivers goods and services
to the customers. In services marketing the providers are supposed to influence and satisfy
the users. When people buy services offered by a service provider in true sense, they buy the
time, knowledge, skill or resources. Marketing the service means marketing something
intangible. It is like marketing a promise. The meaning of service marketing holds good in
the case of hospitals also. The importance of marketing has grown in hospitals. In present day
context, a hospital is a multi-disciplinary super speciality medical centre with international
standards. In a hospital, application of marketing principles becomes essential for their
successful functioning.
Services marketing first came to the force in the 1980’s when the debate started on whether
marketing of services was significantly different from that of products so as to be classified
as a separate discipline. Prior to this, services were considered just an aid to the production
and marketing of goods and hence were not deemed as having separate relevance of their
own.
The 1980’s however saw a shift in this thinking. As the service sector started to grow in
importance and emerged as a significant employer and contributor to the GDP, academics
and marketing practitioners began to look at the marketing of services in a new light.
Empirical research was conducted which brought to light the specific distinguishing
characteristics of services.
By the mid 1990’s, Services Marketing was firmly entrenched as a significant sub discipline
of marketing with its own empirical research and data and growing significance in the
increasingly service sector dominated economies of the new millennium. New areas of study
opened up in the field and were the subject of extensive empirical research giving rise to
concepts such as - the product-service spectrum, relationship marketing, franchising of
services, customer retention etc.
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7 P’S OF SERVICE MARKETING
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PRODUCT: The product mix in hospitals in terms of its length consists of three product
lines – Inpatient services, Ambulatory services, and Health promotion. Each product line will
have certain width – the patient services include medical/ surgical, pediatric, obstetric and
cardiac intensive care and each product item will have certain depth – for example, a hospital
may contain fifteen pediatric beds. Various services in service mix are different in their
relative contribution to the organization. Some constitute the core service of the hospital and
others are ancillary services. The core product answers the questions like, are consumer’s
really looking? What service is really satisfying? The core service stands at the center of the
total service. At the second level, the product consists of the features, quality, styling of the
core service. The third level of service includes augmented product. If the hospital offers
additional services or benefits beyond the tangible service is an augmented service. In both
the selected hospitals services are divided into core, tangible, augmented services.
PRICING: Pricing is the most often used to describe the actual charge made by an
organization. In hospital prices go by various names. Pricing in hospital services is generally
done by keeping in view the cost of running the hospital, the overheads, salaries of the
doctors, nurses and administrative staff, cost of infrastructure, bed occupancy, quality of
service etc. The pricing is described in three heads: 1.Fees 2.out-patient charges 3.Third party
reimbursement. These three heads are based on the costs of producing the service. 1 A product
is only worth what customers are prepared to pay for it. 2 Before fixing the prices the hospital
tries to know the exact cost of service and it inquires the prevailing costs in other hospitals of
that region.
1
http://www.academicjournals.org/journal/AJBM/article-full-text-pdf/6C28DF742477
2
https://www.cim.co.uk/files/7ps.pdf
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• Demand based pricing: Cost based pricing and competition based pricing do not consider certain
criteria. Demand based pricing involves price setting consistent with customer perception of
value.3
PLACE: Hospitals should be easily accessible to the patients and be adequately protected
from pollution. Every hospital should try to make services available and accessible to its
target consumers. While distributing health care accessibility with physicians, hospital
administrators, donors, government, insurance companies, employers is needed. Thus
hospitals have to take three major distribution decisions. They include physical access
(channels, location, and facilities), time access and promotional access.
PEOPLE: People are one of the elements of service marketing mix. People define a
service. In case of service marketing, people can make or break an organization. The people
in a hospital consist of doctors, nurses, paramedical staff, supporting staff and front office
executives. Hospital manages personnel, by developing and enhancing a systematic service
culture. Hospitals has human resource department with eminent people in the concerned field.
This department attends different functions like man power planning, training, and
motivation, evaluating, and rewarding for building competent personnel. High contact service
people include doctors and nursing staff who are engaged in providing the services to the
patients round the clock. The administrators, supportive service people come under low
contact. The employee motivation is satisfactory in both hospitals. Thus many hospitals
nowadays are involved into specially getting their staff trained in interpersonal skills
and customer service with a focus towards customer satisfaction.
3
https://www.scribd.com/doc/85714660/7-ps-of-Service-Marketing-Apollo-Hospital
4
http://www.marketing91.com/service-marketing-mix/
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PHYSICAL EVIDENCE: The physical evidence essentially wraps the service and
conveys an external image what is inside to consumers. The physical evidence of hospital
includes admission office, signs, patient care room, medical equipment, recovery room,
building exterior, employee uniforms, reports and stationary, billing statements, website etc.
Physical evidence can be witnessed through entrance, lobby area, parking area, waiting area,
public toilet facilities, signage system, gift, book and florist’s shops, coffee shop-cum-snack
bar, interior decoration, lighting and ventilation, uninterrupted power supply, drinking water
facilities, sewerage, telephone and communication facilities, transportation facilities, security
and display of awards and certificates won by doctors and hospital etc. Several times,
physical evidence is used as a differentiator in service marketing. Imagine a private hospital
and a government hospital. A private hospital will have plush offices and well dressed staff.
Same cannot be said for a government hospital. Thus physical evidence acts as a
differentiator.
The life cycle process of medical devices has six distinct sub-processes. The overall process
flow can be Seen in Figure 1. The loops within the process are represented by on Page
references, e.g. the return into regular operation after the repair process through shapes 11
and 4. After a primary phase of procurement and initial operation (Start Up), the main cycle
begins. Out of the regular operation the medical device passes through the maintenance and
inspection sub-process. Either out of the maintenance or the operation process the repair
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process can be activated. The repair process is also the point of decision, whether the
equipment can return to regular operation or not.
Fig. 1
The speciality of this process compared to other FM processes is that the responsibilities are
varying between the different sub-processes. The initial part of the process is often lead-
managed by the purchasing department. The main cycle is segmented into the operation
phase where the customer is responsible and the maintenance and repair phases where the
medial department is responsible. Owing to the fact of alternating responsibilities, it was
necessary to concentrate on the proper analysis of the information flow. As already
mentioned the information flow was investigated in expert round tables. In order to create a
homogeneous picture of the information flow, for each process step within the six sub-
processes the same three questions have been asked.
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(1) What kind of information is transmitted?
This approach created a comprehensive picture of the information flow. Information being
exchanged between the core and non-core processes then was visually emphasised. Thus the
important points in terms of information exchange can be Seen at a glance. Using this
visualisation method has also turned out to be very helpful in finding optimisation potential
within the process flow. Through modifying the process model by shifting process steps or
combining multiple queries into one step the information flow can be compacted without
affecting the process quality or elongation of the process duration. This means that
unnecessary communication is avoided and thereby interference with the core process is
reduced.
The most important aspects of a true CRM initiative lie in how the organization as a whole
defines its customers, identifies and segments their needs, and organizes around serving them
in the most efficient and effective manner possible. Hospital services marketers should first
identify what goals are most important to the organization, and these should guide the
internal planning and implementation efforts.
It refers to all business activities directed towards initiating, maintaining, and developing
successful long term relational exchanges. CRM is the promotion of customer loyalty which
is considered to be a relational phenomenon In order to understand better the concept of
CRM practices it is essential to identify the key construct of CRM. The consumer decision
making with respect to marketing organizations is believed to be guided by high order mental
constructs such as consumer satisfaction, perceived service quality, perceived value, trust and
commitment. The hospital with qualify medical doctors and nurses has advantage over others
with unqualified medical personnel. Hospital having other departments like X-ray room,
Laboratory, Theatre, Dental Clinic, Eye Clinic, Maternity, are attractive to patients than those
without these facilities.5
5
http://afrrevjo.net/journals/multidiscipline/Vol_4_no_2_art_14_Gbadeyan.pdf
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PRODUCT DIFFERENTIATION
Product differentiation determines what sets one product apart from other similar
products, and it uses that difference to drive consumer interest. Product differentiation
is often subjective, aiming primarily at altering customer perspective on one item
when compared to another, even if the actual differences are minuscule or entirely
aesthetic. Ideally, it demonstrates that the product cannot only do everything the
competitor items can, but that there is an additional benefit, such as additional
features, higher overall quality or a lower cost.
Lower costs can relate to the initial purchase price or any operating and upkeep costs
associated with the item. For example, if a government hospital provides services at
lower costs and the private hospital provides better services in a better environment at
a higher cost. The private hospital can hire more qualified doctors, efficient nurses and
provide other facilities which are better than government hospitals. This is called
product differentiation. Both the hospitals are providing similar services but they are
slightly different and this slight difference can change the entire perspective of
consumer.6
When functional aspects of two products are identical, other non-functional features
can be highlighted. This can be a simple as a change in design or styling, such as the
product's color. At times, the most effective way to make one product stand out from
6
https://www.aha.io/roadmapping/guide/product-strategy/what-is-product-differentiation
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another is with unique advertising. In that regard, it may be possible to differentiate
one brand from another when no discernible differences in the products actually exist.
Aside from bringing in consumer interest, product differentiation may increase brand
loyalty and even allow for a higher price point. If a product is perceived to be better
than a competitors, whether that belief is based on fact or more speculative means, it
may encourage consumers to purchase the brand due to its image. Certain images may
even allow for a higher selling price if the item is seen as highly desirable.
For brands, the field of competition is more crowded than ever. When faced with too
many choices, consumers can be overwhelmed, and often walk away rather than make
a difficult decision. That is why it is imperative to find a way for your product to stand
out and be considered uniquely valuable.7
You want it to be crystal clear to your customers what you are offering and how your
product compares to competitors. If you have other products, you also want to make
sure each product has a clearly defined identity to eliminate confusion for customers.
Creating a differentiated product which appeals to your target market can help to build
your competitive advantage over other brands.
7
http://www.investopedia.com/terms/p/product_differentiation.asp
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SERVICES PROVIDED BY GOVERNMENT AND PRIVATE
HOSPITALS
Patna Medical College And Hospital (PMCH) established in 1925 and originally known as
Prince of Wales Medical College. It is affiliated to Aryabhatta Knowledge University
(previously: Patna University). The exact location is on Ashok Rajpath which is home to
many other notable colleges of Patna University. The emergency department.is called
IGCE(Indira Gandhi Central Emergency),it has 220 beds which is separate building in the
campus and not included in the 1748 bed counts of hospital,so altogether it is one of the
busiest hospital of state and in India with bed count of around 2000.The average daily opd
patients is one of the highest in India.
* Anyone with urgent medical problem can seek consultation/treatment in the Casualty
If Doctors decide that you need urgent medical intervention, you will be registered at the
* casualty registration counter, on charge of Rs. 5 and proper medical care will be provided
promptly
Casualty has dedicated team of Doctors (Casualty Medical Officers from major
specialties i.e. Medicine, Surgery, Orthopedics, Plastic Surgery, Neurology. Obstatrics
*
Opthalmology, ENT & Pediatrics and Junior Residents), Nurses, Paramedics and
Orderlies etc. to provide urgent medical services.
We endeavor to provide medical care (incl. Investigation & treatment) at the earliest
possible time.
*
However, in view of extreme workload in casualty (more than 300 patients seek
consultation per day) those cases that are not so urgent may have to wait for some time.
The treating doctors will call any specialist/super-specialist, who is available on call for
*
urgent consultation as and when required
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In serious cases treatment/management gets priority over paper work like
*
Registration/Medico-Legal requirements
* Casualty has fully equipped Emergency Operation Theatre for any urgent surgery etc
The casualty is fully equipped with all modern gadgets like monitors, ventilators,
*
nebulisers, defibrillators, central O2 and suction supply etc.
All urgent investigations like Blood Biochemistry, Urine, Blood Gas Analysis, ECG, X-
*
ray, C.T. Scan, etc. are available for casualty patients round the clock
* All medicines and surgical items like available in casualty are provided free of cost..
* Facilities like patient trolleys are available ate the entrance of casualty.
Public utilities like toilets, waiting area with Tea/Coffee/Snacks, fans, chairs etc. are likely
*
to be available
Many facilities are provided at OPD level e.g. ECG, Plaster, Injection and Immunization
* Room, Contraception and MTP Services, Minor Surgical Intervention, Physiotherapy,
Bronchoscopy, Endoscopy, EEG, EMG, NCV, ECHO, Audiometry etc
To meet day-to-day needs of patients, there is Sudha booth, canteen , medical stores
*
and STD booths in the campus.
Hospital Attendants are available in different wards to help in patient care and related
*
activities.
All the wards are fully equipped with modern gadgets & equipments e.g. ventilators,
* monitors, defibrillators, nebulisers; central O2 & suction supply etc. to provide top quality
medical care
For very poor patients, on recommendation of treating Doctor, the hospital charges may be
* waived off by Med. Supdt./ his nominee and costly drugs / surgical items may be provided
by the hospital.
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Financial assistance is also available through CM’s Relief Fund, NIAF and other
such funds. You may contact Medical Social Service Dept. & Welfare Officer in this
regard
Bed linen is changed at the time of admission, thereafter on every alternate day and also
*
whenever required.
* Food is served three times a day. Also, Tea is provided in the morning.
Facilities provided in private ward - Each room has - attached toilets & bath room, bed
*
for attendant, chairs and table, geyser, emergency light, phone with incoming facility etc.
Laboratory Services - Emergency Lab - 24 hours, throughout the year, for all emergency
*
investigations
Routine Lab - Sample Collection Timings: Weeks Days - 9:00 a.m. to 12:00 p.m. All type
* of routine and special investigations incl. Biochemical, microbiological,
pathology, immunology and genetic studies are done at PMCH
Blood Bank:- PMCH has a licensed modern, state of the art Blood Bank that functions 24
hours a day and provides facilities for blood donation, storage, issue of blood and its
* components. Strict precautions are taken and testing is done to prevent any borne
infection. If your patient requires blood transfusions, then you are requested to arrange
healthy blood donors for donating blood in order to reduce shortage of blood8
8
http://www.pmch.in/services.htm
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5+
Total Courses
304+
Total Doctors
35+
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Total Department
564+
Total Students9
9
patnamedicalcollege.com/our-doctors-list.php
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APOLLO HOSPITALS: Apollo Hospitals was established in 1983 by Dr. Prathap C Reddy. It
was India’s first corporate hospital, and is acclaimed for pioneering the private healthcare
revolution in the country. Since then, Apollo has risen to a position of leadership and has
emerged as Asia’s foremost integrated healthcare services provider. It has a robust presence
across the healthcare ecosystem, including Hospitals, Pharmacies, Primary Care & Diagnostic
Clinics. The Group also has Telemedicine units across 10 countries, Health Insurance Services,
Global Projects Consultancy, Medical Colleges, MEd varsity for E-Learning, Colleges of
Nursing and Hospital Management and a Research Foundation. In addition, 'ASK Apollo' - an
online consultation portal and Apollo Home Health provide the care continuum.
The cornerstones of Apollo's legacy are its unstinting focus on clinical excellence, affordable
costs, technology and forward-looking research & academics. Apollo Hospitals was among the
first few hospitals in the world to leverage technology to facilitate seamless healthcare delivery
through electronic medical records, hospital information systems and telemedicine-based
outreach initiatives. The organization embraced rapid advancement in medical equipments
worldwide, and pioneered the introduction of several cutting edge innovations in India. Soon the
country's first-ever Proton Treatment Cancer Centre will be launched by Apollo, and it will
serve over 3 billion people.
Since inception, Apollo Hospitals has been honoured by the trust of over 50 million patients
from 140 countries. At the core of Apollo's patient-centric culture is TLC (Tender Loving Care),
the magic that inspires hope amongst its patients. As a responsible corporate citizen, Apollo
Hospitals takes the spirit of leadership well beyond business and it has embraced the
responsibility of keeping India healthy. Recognizing that Non Communicable Diseases (NCDs)
are the greatest threat to the nation, Apollo Hospitals is continuously educating its fellow
Indians on personalized preventive healthcare as a key to wellness. Dr. Prathap C Reddy's
initiative aptly named the "Billion Hearts Beating Foundation" endeavours to keep Indians
heart-healthy; over half a million people have taken a pledge on www.billionheartsbeating.com.
Apollo Hospitals has always championed social initiatives that transcend social and income
barriers. Notable ventures introduced by the organization are Save a Child's Heart Initiative
(SACHi) which provides quality paediatric cardiac care to children from underprivileged
sections of society. SAHI (Society to Aid the Hearing Impaired) and the CURE Foundation
focused on cancer care assist children from financially challenged homes. Envisioned by Dr.
Reddy, to introduce population health into the Indian narrative, the Total Health Foundation is
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piloting a unique model of healthcare in the Thavanampalle Mandal of Andhra Pradesh. It aims
to provide "holistic healthcare" for the entire community starting from birth, through one's
journey into childhood, adolescence, adulthood and old age.
At an Apollo Emergency Room, there is always easy and swift access to super specialist
surgeons and cutting edge procedures. We have cardiologists, neurologists, neurosurgeons and
trauma specialists who are on 24x7 standby for expert care during a medical emergency. Our
long years of experience has taught us the value of every minute. In an Apollo Hospitals’
Emergency Room, one can be assured of receiving globally benchmarked medical assistance as
the team’s singular focus is to help patients get better, faster.
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FINDINGS AND SUGGESTIONS
Findings
Service Quality
Reliability
Less Expensive
Very Satisfies
Satisfied
Dissatisfied
Very Dissatisfied
Service Quality
Reliability
Pocket Friendly
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Are you satisfied with the Services
provided by this Private Hospital?
Very Satisfied
Satisfied
Dissatisfied
Very dissatisfied
Yes
No
Private Hospital
Government Hospital
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Would you suggest any of your friends or
family to visit the hospital you visisted?
Yes
No
Maybe
12
10
6 Private Hospital
Government Hospital
4
0
Service Reliability Economic Cleanliness Patient
Quality Friendly
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Suggestions
The researcher would like to give the following suggestions to both the government and
private hospitals:
1. The government hospitals should try and maintain clean environment so that the
patients do not have any problem.
2. The government hospitals should provide better services to the customers like, they
should make sure doctors and nurses are available 24*7.
3. The government hospitals should try to give better services to the patients and also
make sure that the environment of the hospital is clean and suitable for the patients
because there are certain patients who cannot afford to go to private hospitals and they
have to suffer in the unclean environment of the government hospitals or they are
compelled to go to private hospitals against their financial conditions.
4. For the private hospitals, there are certain private hospitals which are very expensive
and also at times the doctors at private hospitals exaggerate the ailments of the
patients just to charge extra. This practice should be avoided as it reduces the trust of
the patients.
5. Most of the private hospitals cost a lot, the private hospitals should also come up with
a provision where they charge somewhat less and cut the extra services like
Televisions, etc. for those who don’t want them.
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CONCLUSION
The research was conducted to identify the key service quality factors of government and
private hospitals that affect patients’ satisfaction and assess how patients rate the service
quality dimensions of both government and private hospitals. Whether the hospital is large or
small it should deal with a facility wide marketing plan. Marketing of hospital services is
needed to educate large numbers of people. There is a need for marketing the hospital
services in order to provide the right kind of information and education and to cure the
ailments of the patients in the best possible manner. The communication between service
providers and patients has to be improved. Along with that the appearance of the physical
facilities, modern and advanced equipment of the hospitals increase customer satisfaction.
For a successful marketing of services, it is essential that the concerned organization is
professionally sound. The first and foremost task before a marketer is to satisfy the users by
making available to them the quality services.
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BIBLIOGRAPHY
Books
1. Marketing Management-Comprehensive Text, Best Practices, Corporate Insight Arun
Kumar & N. Meenakshi /Vikas Publications
2. Paul Baines, Chris Fill & Kelly Page, Essentials of Marketing (Oxford University
Press, New Delhi, 2013)
Websites
1. http://www.pmch.in/services.htm
2. http://afrrevjo.net/journals/multidiscipline/Vol_4_no_2_art_14_Gbadeyan.pdf
3. http://www.academicjournals.org/journal/AJBM/article-full-text-pdf/6C28DF742477
4. https://www.cim.co.uk/files/7ps.pdf
5. http://www.investopedia.com/terms/p/product_differentiation.asp
6. https://www.aha.io/roadmapping/guide/product-strategy/what-is-product-
differentiation
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