About Health-care industry and 7 p's of marketing mix of health-care service

1. About Health-care industry
 The health care industry, or medical industry, is an
aggregation of sectors within the economic system
that provides goods and services to treat patients with
curative, preventive, rehabilitative, and palliative care.
The modern health care industry is divided into many
sectors and depends on interdisciplinary teams of
trained professionals and paraprofessionals to meet
health needs of individuals and populations.
 The health care industry is one of the world's largest
and fastest-growing industries. Consuming over 10
percent of gross domestic product (GDP) of most
developed nations, health care can form an enormous
part of a country's economy.

2. Background
 For purpose of finance and management, the health care
industry is typically divided into several areas. As a basic
framework for defining the sector, the United Nations
International Standard Industrial Classification (ISIC)
categorizes the health care industry as generally
consisting of:
 hospital activities;
 medical and dental practice activities;
 "Other human health activities".
 This third class involves activities of, or under the
supervision of, nurses, midwives, physiotherapists,
scientific or diagnostic laboratories, pathology clinics,
residential health facilities, or other allied health
professions, e.g. in the field of optometry, hydrotherapy,
medical massage, yoga therapy, music therapy,
occupational therapy, speech therapy, chiropody,
homeopathy, chiropractic, acupuncture, etc.

3.  The Global Industry Classification Standard and the
Industry Classification Benchmark further distinguish
the industry as two main groups:
 health care equipment and services; and
 Pharmaceuticals, biotechnology and related life
sciences.
 The health care equipment and services group
consists of companies and entities that provide
medical equipment, medical supplies, and health care
services, such as hospitals, home health care
providers, and nursing homes. The latter listed
industry group includes companies that produce
biotechnology, pharmaceuticals, and miscellaneous
scientific services.
 Other approaches to defining the scope of the health
care industry tend to adopt a broader definition, also
including other key actions related to health, such as
education and training of health professionals,
regulation and management of health services
delivery, provision of traditional and complementary
medicines, and administration of health insurance.

4. Unique Characteristic
 Intangibility
 Association
 Physical
representation
 Documentation
 Perishability
 Peak time essential
service
 Variability
 Training to doctor
 Training to external
customers
 Inseparability
 Training to internal
customers
 Innovation service
 Video conferncing

5. 7 P’s

6. Product
 The main product of the hospital is the medical
service. This services in a hospital differ from one
hospital to another. There are three categories of
services in a hospital:
 Line service
 Supportive service
 Auxiliary service

7. Place
 Under hospital marketing, distribution of Medicare
services plays a crucial role. This focuses on the
instrumentality of almost all who are found involved in
making services available to the ultimate users. In
case of hospitals the location of hospital plays a very
important role.
 Avoid inconveniences
 Adequate transport & communication facilities
 Avoid congestion & atmospheric pollution

8. Promotion
 Hospitals for promotion use either advertisement or
PR or both after taking into consideration the target
customers, media type, budget and the sales
promotion.
Promotion
technique
s
Personal
Imperson
al

9. Price
• Pricing is the most important and significant factor in
deciding a hospital for a particular treatment.
• Normally in case of general diseases it may not be a
required element since its treatment is easily
available, but when it comes to treatment of complex
disease people often opt for good hospitals
irrespective of how much it cost.

10.  Super deluxe class: A/C single occupancy room with
TV, DVD player, fridge with water dispenser, ready
tea/ coffee mix, phone and attached bathroom.
 Private class: Can incorporate two patients in one
room. Has an attached bathroom and 2 TV and 2
sofas. Can build the bondage of togetherness
between two patients.
 Cubical Class: A 22 bedded partitioned room to
enhance patient’s privacy. Has an open balcony for
easy mobilization of patients under the supervision of
skilled nursing staff
 General Class: It is similar to AC General, but it is
without AC and without any partitioned. Its
accommodation charges is least compared with other
forms of accommodation.

11. People
 Under hospital marketing the marketing 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. The earliest and the best way of having
control on the quality of people will be by approving
professionally sound doctors and other staff.

12. Process
 Process generally forms 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.
 Two different type of process for:
 Inpatient
 Outpatient

13. Physical Evidence
 Physical evidence is the environment in which the
service is delivered with physical or tangible
commodities and where the hospital and the customer
interacts. 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,
mascots etc. a smart building infrastructure indicates
that the hospital can take care of all the needs of the
patient.

14. Thank You