Destination Marketing Developing an Index for Medical Tourism

Question: Write an individual report outlining a suggested marketing strategy focusing in detail on The Philippines Medical tourism. You should include the following : Clearly discuss the chosen target market Identify and discuss the chosen marketing strategy, identify relevant smart objectives and any relevant strategic issues such as timescales and seasonality Clearly identify and discuss in detail the image and positioning strategy required for this target audience. Clearly outline a tactical marketing campaign, discussing in detail any relevant marketing mix activity. You should make specific reference to any promotional /communication skills mix activity and consider any specific interactive marketing needs, taking into account latest best practice of e-marketing techniques. You should discuss any potential issues and problems with the implementation, control and measurement of your ideas. You should indicate relevant key performance indicators. Answer: Introduction Medical tourism is defined as a term in which the patients travel abroad to avail cheap medical services. Philippine Medical Tourism Inc is a group of individuals with diverse corporate and business backgrounds. Several integration services for medical procedures are offered such as weight-loss, orthopaedic surgery, alternative medicine care, dental procedures and various other segments (Philmedtourism.com 2016). Choice of Target Market For a business to flourish in the domain of medical tourism, that too in the Philippines the firm needs to ascertain its target market. The organization will target the age group of 45-60 and above. However, the marketing communications plan is designed for young professionals as well as the above mentioned age group (Chen and Chen 2012). As this age group constitutes a large portion of the population, the company will get a significantly large client base. This age group is more likely to have ample amount of money in their hand, as most of them are either service holder or businessperson. Therefore targeting his particular segment of the economy will help the company to gain a potential competitive advantage in the economy (Yeoh et al. 2013). Background Issues TOWS Matrix Threats Lack of price transparency Intense competition from emerging destinations Potential crowing out of domestic poor patients Lack of malpractice framework Opportunities Improving global perception of the economy Continued high cost of care engendering medical outsourcing Expansion of medical care segments Increasing demand due to aging population Weaknesses Lack of strong brand recognition internationally Weak synergy between travel service providers and medical service providers Lack of portability of insurance plans among medical tourists Administrative barriers to entry in local government units Strengths Clear price advantage in surgical and medical procedures Captive market Tropical climate and cultural openness Good quality care and top-notch health facilities Large talent pool of English-speaking and qualified tourism professionals Source: (Picazo 2013) Ansoff Growth Matrix Four growth strategies can be adopted by Philippine Medical Tourism Inc. (PMTI). With the application of Ansoff Matrix as under: Market Penetration- PMTI can consider achieving growth in the existing market and product segments. The market share can be increased in comparison with other global competitors (Bachmeier 2013). Market Development- PMTI can extend the market segment with existing products and services in the global market (Bachmeier 2013). Product Development- PMTI may develop a new range of products and services for targeting the existing market segment. Convenience and ease of services may be provided to the medical tourists (Morrison 2013). Diversification- PMTI may grow into new business such as opening a paleo-diet restaurant for the medical tourists. The Paleo-diet restaurant would offer healthy food products that are necessary for the well-being of patients (Crandall 2015). The marketing strategy and communications plan may be discussed by opting the market development strategy. PMTI can consider extending the market through various entry strategies with the existing products and services. Market Entry Strategies The three major strategies imperative to enter the market are mainly, Purchase Strategies, Cooperation Strategies and Development Strategies (Aziz et al. 2015). Purchase Strategies: The strategy allows the organization to utilize the financial resources to enter a market with immediate effect by adopting the adaptive strategy. The three purchase market strategies are; Acquisition, Licensing and Venture Capital investment (Greenhough et al. 2015). Acquisition: These are entry level strategies which propel expansion by the means of purchase of an existing organization. The primary reason for organizations purchasing another enterprise can be for reasons such as obtaining access, to technology, brandings, and also human resources (He 2015). Licensing: Acquisition a product or service or solution may be deemed as an alternative to purchasing of physical unit of company or organization (Babik and Chin-Hong 2015). Venture Capital Investment: It offers the firm with an opportunity to enter and try in the market thereby keeping the risks low as much as possible. For instance, venture capital investment in medical tourism companies including the likes of pharmaceutical as well as biotechnological companies. Venture capital will mitigate the risk as far as finances are concerned. The scope of venture capital being utilized by the firms will amount to nearly, 10 billion dollars per year (Hernandez and Ona 2016). Developmental strategies include internal development, internal ventures, and reconfiguration of the value chain. Here, internal development means the avenue where strategies are developed and built together based on business's capabilities and resources (Pennings 2015). Internal ventures refer to setting-up of independent entities within the organization. Reconfiguring change means the aspect of alteration of activities or sequence of activities which adds value as far as consumer deliverables are concerned (Pennings 2015). Identification of Strategic Issues Current Brand Image and Positioning Based on the above analysis and discussion, it is inferred that PMTI faces the following strategic issues: Reduced attention to building competitiveness- There is increased demand for medical resources from the Filipinos. The market niche has primarily focused on promotion through TV and magazine. The concentration on Filipino market has reduced attention from other potential markets (Hartwell 2014). Lack of portability of insurance plans- Studies found that insurance plans in developed countries did not cover treatment received overseas. Due to the quality of service provided to patients, there is lack of portability of insurance plans thereby limiting medical tourism demand (Guinto et al. 2015). Constraints on the quality of health care services- The medical professional in the medical tourism industry are plenty. But with their high qualification and opportunities for better job overseas the practitioners tend to leave the country resulting in brain drain. Stronger regional competitors- There is a need to develop unique value proposition and a market niche as other competitors such as Singapore, Thailand and India have larger accredited hospitals (Wong, Velasamy and Tengku Arshad 2014). Seasonality- One of the most important factors leading to fluctuation id demand in tourism is seasonality. Different days, weeks and even different times of the day has fluctuating demand for tourism and hospitality. The profitability often suffers during low season periods; this is why marketing has big responsibility to increase the demand during low seasons and even out the demand throughout the year (Noviscape Group 2014). Required Brand Image and Positioning The desired market positioning to attract people from across the world is "Medical value Travel". The positioning of the firm affects the success of the organization largely. The first and foremost factor that has to be kept in mind during determining the positioning strategy is the communication issue. Shalikar and Rahimb (2015) pointed out that the infrastructure and communication in the selected area should be excellent. As the business is concerned with medical issues, it is quite likely that the airport or other transport connectivity should be located as near as possible. This will help the clients to access the firm easily. Again, another requirement is that, as the firm is concerned with medical tourism, the position should be so effective that the patients or the clients could access the attractive places in a convenient and time effective manner. These will help the company to build up a wonderful reputation as well (Noviscape Group 2014). Strategies to Achieve Required Brand Image and Positioning For enhancing the competition, foreign direct investment needs to be encouraged. The government must lift the restrictions and establish competition policies for encouraging healthy competition. For reducing the brain drain and enhancing human resource development, effective messages must be communicated along with providing the workers with benefits. The medical tourism industry must put efforts through marketing tactics to market PMTI. Distinctive products and services must be developed, and various tourism packages can be incorporated for promotion. The medical packages can be promoted through websites and brochures (Wong, Velasamy and Tengku Arshad 2014). SMART Goals and Objectives A set of SMART goals are designed for Philippines Medical Tourism Inc. Stated as under: PMTI will increase the annual guest or tourist arrivals by 20%. The management and infrastructure needs to be redesigned through direct investment of 100,000 Peso (Burrai, Font and Cochrane 2014). PMIT may increase the revenue by 20% in 20 weeks. The staffs must be trained for 6 months for being more hospitable and consistent in providing services to the tourists (Burrai, Font and Cochrane 2014). Marketing Mix Tactics The 4 P's of marketing mix in the industry of medical tourism are laid as under. Product Regarding attracting tourists to the product mix, the hospitals may develop a variety of service packages for the patients. The medical tourists are concerned about the investigation of treatment processes. PMTI must take responsibility of the subsequent potential problems that may be caused to the patients in their country. PMTI would coordinate with the tourism industry and a system of information and marketing must also be developed (Chen and Wilson 2013). Price Regarding the price mix, price is the initial motivational factor for the patients. The high cost of healthcare in the US, price is one of the highest concerns for potential patients, especially those without inclusive health insurance coverage. The patients seek better quality service at lower prices in most developed countries. The patients must be given discounts and charged less tariffs for availing services at PMTI. The firm in consideration may contemplate of offering simple tests, such as blood pressure examination, cholesterol checks, at no cost or reduced prices to raise patient awareness of their services (Eades 2015). Place Essential services, no matter how reasonably priced, must be made accessible to patients, which in turn will be effective for the business. If the services are only available in locations or during hours where the patients cannot access them, then the patients remain at risk and the providers miss out on the opportunity to treat them. Providers can seek out new locations, expand operating hours, offer walk-in or same-day appointments and reach out into local communities to offer more access to healthcare services and stand out from the players (Fisher and Sood 2014). Promotion Considering the promotion mix, the PMTI may consider updating websites, mass media for propaganda and television advertisements. The endorsement of a healthcare provider's service is the most significant facet of the marketing mix, and yet the same remains unnoticed. With the advancement in technology, internet is used by the people at a high pace. Social media sites can be used for promotion of Philippine Medical Tourism. Press releases can be made for maintaining public relations. Brochures, pamphlets, international medical exhibition, can be created for communicating message to the people (Chen and Wilson 2013). People Concerning people mix, PMTI may train the staff and recruit new staff with desired qualifications. The people in the hospitality team must be capable of providing medical tourism services. Medical education programs can be conducted for supporting medical tourism (Han and Hyun 2014). Process PMTI can implement European Foundation for Quality Management (EFQM) Model to drive competition and success. Clinical governance must be assessed so that the patients are informed about care, treatment procedures and the consequences. The patients must be rightly involved in the medical treatment processes (Wongkit and McKercher 2015). Physical Evidence Sufficient attention must be paid in the interior and exterior attractions of the hospitals. The physical infrastructure, greenery and environment must be taken care of. The old hospital building must be renewed so that the health conditions in the hospital can be improved (Jabbari et al. 2013). Communication Mix Communication mix refers to the various methods used to promote products and services to the targeted customers. The age-group targeted for medical tourism promotion is aged 45-60 as they are prone to illness and visit abroad. There are numerous categories that are situated in the overlapping sections, such as the internet, product placement, event management, exhibitions etc. A communication mix strategy is designed for the "Medical Destination Philippines" campaign (Jin, Weber and Bauer 2012). Advertising Medical Destination Philippines campaign can be advertised through broadcasting/ mass advertising and online advertising. The Company intends to expand brand awareness amongst expensive clients by promotional activities in esteemed print publications which will attract the attention of target audience. Print advertisements can be created revealing the scenic beauty in Philippines (Martin, Rosenbaum and Ham 2015). Television commercials can play advertisements for promoting medical tourism in Philippines. Outdoor advertising can be created by posting pictures on billboards, subways and near parks where the people of target age group can view the advertisement. Online advertising can be used for promoting by stating the facilities and services provided by the PMTI at an affordable price. Blogs may be used by the customers who had personal experience and excellence about the destination can be described. Online classified ads can be used assuring the patients with best quality care at c heaper prices (Pike and Page 2014). Direct Marketing The direct marketing tools can be used for addressing the target group effectively. Direct mail can be used for directly hitting the target group. Emails are another source of promoting the campaign as the youth accesses their emails daily (Lee and Fernando 2015). The websites must be updated and designed that is feasible for use by the customers or potential customers. Direct selling can be used for the visitors or tourists visiting the Philippines. The travel agents offices can help in promoting and spreading the message of the destination as medical tourism (Mohamad and Ab Ghani 2014). Internet Marketing Development of best in the class website could be one of the major goals of the firm. One of the best ways to promote the Philippines as a medical tourism destination is through search engine optimization. The websites must offer treatment like weight-loss surgery or dental surgery and various other common as well as rare treatments (Gan and Frederick 2013). Search engine optimization and search engine marketing can be used for creating awareness among the customers searching for such treatment. The keywords such as quality care and cheap prices may be highlighted so that the potential customers land on the official website of Philippine medical tourism (Yeoh, Othman and Ahmad 2013). Social media sites such as Facebook can be used to promote the benefits and packages available at travel destination. YouTube can be used for marketing the scenic beauty and facilities available at the medical centre (Law, Buhalis and Cobanoglu 2014). Sales Promotions The tools such as rebates and discounts can be offered to the medical tourists for a first-time visit. Rebates can also be provided for subsequent visits. Membership cards can be made for the customers for easy access and increasing revenue at PMTI. Special events can be organized by the reputed doctors narrating the details of treatments. Special tourism packages can be offered for the country tourism combining with medical facilities availed for attracting customers and increasing revenue (Mohamad and Ab Ghani 2014). Public Relations Conference speeches and press conferences can be held for spreading the message of Philippines as the medical destination. PMTI can involve in charities, communities and events as corporate social responsibility stunt. Other publicity stunts can be organized that would attract customers and potential customers. Healing Philippines' can be used as a campaign and publicity and maintaining public relations (Michaelidou et al. 2013). Implementation and Control The above communication tools focus on delivering the medical tourism messages. Television advertising is good for informing the target consumers visually of benefits. Sales promotion can encourage customers to avail products and services at medical destination Philippines. The online advertising tools are perceived of greatest value to the customers as it is easily accessible. Major focus and investment must be laid on internet advertising and promotion. Public relations score high as it is valued critically by the target audience. As a matter of fact, the firm requires around 400,000 Peso to kick-off its operations and achieve a sustainable cash-flow from its varied activities (Kim et al. 2015). The firm aims to accomplish some profitability by the end of a year since establishment. The initial marketing activity may assist the business to achieve the base level as far as sales are concerned. The management is conscious of having not much of initial debts or other liabilities (Cons tantin 2015). Conclusion Philippine Medical Tourism Inc is a group of individuals with diverse corporate and business backgrounds. There is a need to develop unique value proposition and a market niche as other competitors such as Singapore, Thailand and India have larger accredited hospitals. The desired market positioning to attract people from across the world is "Medical Value Travel." The positioning of the firm affects the success of the organization largely. Medical Destination Philippines campaign can be advertised through broadcasting/ mass advertising and online advertising, direct marketing, internet marketing, sales promotions and public relations. The Company intends to expand brand awareness amongst expensive clients by promotional activities in esteemed print publications which will attract the attention of target audience. The online advertising tools are perceived of greatest value to the customers as it is easily accessible. Major focus and investment must be laid on internet advertising an d promotion. The impediment that may arise while implementing the strategies may be the problem of segmentation of the market. It is not that easy to segregate a nearly homogeneous market. Therefore, the company officials should be careful while segmenting the market. Again, targeting a particular population may always not be the ultimate solution. The company should also look for the young professionals who may also be interested to take the services of the company. Therefore, the company should also focus on the younger generation as well. Product designing, should also be done carefully, so that the products become efficient enough to attract potential customers. There is another difficulty that the company will face, while designing the product, as the tastes and preferences of the customers are different across the population the type of product as per their likings will be very different. Therefore, the company will have to design a diverse and wide range of products. 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