Healthcare services/industry

 Healthcare industry is a wide and intensive form

of services which are related to well being of human beings.
The major inputs of health care industries are as listed
below:
 I. Hospitals
 II. Medical insurance
 III. Pharma industry
 IV. Diagnostic services
 V. Medical tourism
 Health care service is the combination of tangible and intangible .
the services (consultancy) offered by the doctor are completely
intangible. The tangible things could include the bed, the décor,
4 CHARACTERISTICS OF HOSPITAL INDUSTRY
 1) Intangibility:
Health care services being highly intangible, to beat this intangibility the
irony of modern marketing takes place such as use of more tangible
features to make things real and believable.Eg press releases leaflets
newsletters etc.
 2) Inconsistency:
Quality of service offered differs from one extreme to another. This is
because of total dependence on human interactivity or playing human
nature, i.e. because human beings can never mechanize or replicate
themselves.
 3) Inseparability:
Service transaction becomes unique because it mandates, during
transaction, the physical presence of the provider and the consumer.
.
.
PRODUCT
The main product in a hospital maybe any of the following:
Medical Services
Medical Training
Medical Education
Medical Research
Medical services can
further be classified
as follows:
 Emergency
 Out-Patient
 In-Patient
 Intensive Care
Promotion
 Customers need to be made aware of the existence of the service provided.
Promotion
 includes advertising, sales promotion, personal selling & publicity, Healthcamps
People
 themarketing mix variable people includes all the different
people involved in the service providing process (internal
customers of the hospitals) which includes
 doctors, nurses, supporting staff etc.
 One of the major classifications of hospitals is – private
and government.
Physical evidence
 It does play an important role in health care services, as the core benefit a
customer seeks is proper diagnosis and cure of the problem
 Physical evidence can be in the form of smart buildings, logos, etc. a smart
building infrastructure indicates that the hospital can take care of all the needs
of the patient.

Three Aspects of Physical Evidence are:

 Ambient Factors: Smell in the hospital, Effect of Colors used on walls

 Design Factors: Design of the rooms, plush interiors, ICU location,

etc.

 Social Factors: Type of Patients that come to the Hospital

Process
 Itis the way of undertaking transactions, supplying
information and providing services in a way that is
acceptable to the consumers and effective to the
organizations.
 Sinceservice is inseparable, it is the process through
which consumers get into interaction with the service
provider.
 Process is generally formed based on the different tasks
that are performed by the hospital.
 The process factor is mainly dependent on the size of the
hospital and kind of service it is offering.
 Blue print of
hospital
Productivity & quality
RELIABILITY Ensuring that Doctors are well trained and
experienced

ASSURANCE Trust, the number of successful treatments

TANGIBLES Gate of bldg., surrounding area, Surgery

equipment's,
Rooms
EMPATHY Courtesy shown by nurses, ward boys etc.

RESPONSIVENESS Emergency responsiveness

 PROBLEMS FACED BY THE INDUSTRY
 Low public spending on health
 Lack of adequate beds in the hospitals
 Lack of emphasis on prevention
 Enforcing standards of medical care rendered by hospitals and
private health practitioners
 Extremely low bed : people ratio
 Dominated by Government and Charitable Hospitals
 Excessive overlap across primary, secondary and tertiary care
 Skewed towards urban populace
 Lack of adequate corporatization
 Insurance to provide financial protection from catastrophic events
 More research, awareness and communication and greater
public involvement in understanding health issues
PESTEL ANALYSIS
1) Political Analysis:
 The government is reducing its hold on subsidies.
 The cost of medicines also tends to affect hospitals besides affecting the
pharmaceutical industries
 Relationships between neighboring countries also affect the
hospital sector
2) Economic Analysis:
 Increase in income would lead to an increase in the standard of
living.
Thus
 people’s lifestyles changes and health is better understood. Thus there is
a room for specialized treatment, doctors, and hospitals
 Government has made loans easily available and thus people
with limited means could avail better/specialized treatment
3) Social Environment Analysis:
 Medical facilities have increased since there is more awareness of healthcare
among the population
 Certain percentages of beds have to be kept for poor people. E.g. in
Bombay 20% of beds has to be kept reserved for poor people.
 Look after the needs of local poor people.
 Open counseling and relief centers.
 Teach hygiene, sanitation among the poor masses.
 Safe disposal of hospitals wastes like used injection needles, waste blood
etc. and taking due care of environment.
 Spreading awareness about various diseases through campaigns and
free medical check ups.
4) Technological Environment Analysis:
 Breakthrough innovation in the field of specialized equipment
 Communication has managed to bridge the gap between places
located at long distances
 Test tube babies
 Mobility of medical services
 Mobile phones, credit cards (for payment purposes) etc.
have made doctors and medical facilities easily available