The Importance Of Branding In Health Care

Improved Essays
Introduction. "A successful brand is defined as a name, symbol, design or some combination of these, which identifies the 'product ' of a particular organization as having sustainable differential advantage" (Kent, 2003, p. 132). Arguably, branding in health care can be considered more important compared to any other industry. The reason rests behind the philosophy of health care pertaining to an individual 's most prized treasure: life. A health care organization 's brand should facilitate a deep level of trust and respect to its consumers. Without it, patients will be more reluctant to place his/her life in the hands of a caregiver. The ensuing research describes the importance and use of branding within the health care spectrum, paving …show more content…
Competitive branding helps keep one organization from looking similar to another organization. Consequently, standing apart from the competition helps attract more consumers. Take the advent of managed care, for example. Before managed care, Blue Cross and Blue Shield were prominent in the field of health care coverage. Consumers gradually flocked towards Health Maintenance Organizations, Preferred Provider Organizations, and Point-of-Service products due to their affordability and specialization factors (Ahlquist, Knott, & Casanova, 1998). This rise in competition and newer brands caused admission rates to decrease. Health care organizations struggled with creating a more distinct brand image from the growing competition. In order to combat such a trend in the future, organizations will find an increased benefit to brand themselves differently from their competition.
Negative Consequences. Unfortunately, the use of health care branding may result in unexpected negative outcomes if not properly administered. One such negative consequence transpires from changes in health care reform, as shown with the American Recovery and Reinvestment Act of 2009. Part of this law demands the mandatory implementation of electronic health records, forcing health care organizations to heavily invest in IT system upgrades (Congressional Budget Office, 2012). As a result, health care organization branding efforts need to be restructured in order to accommodate to unexpected costs mandated by

Related Documents

  • Improved Essays

    Henry Ford Marketing Plan

    • 1319 Words
    • 5 Pages

    The marketing strategy used by the hospital is thorough, and has successful results. The marketing strategy consists of gathering and analyzing information regarding the demographic, and areas of concern and need. The strategy also consists of goals and objectives to each target audience, whether it is employees of Henry Ford Hospital, childhood and family wellness in Detroit and surrounding areas, and virtual wellness. Wellness and Prevention programs are crucial for health care organizations to promote healthy lifestyles, and to educate the…

    • 1319 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Mkt 421 Week 3 Assignment

    • 593 Words
    • 3 Pages

    A company to maximize its benefit needs positioning itself. Positioning is “the act of designing a company’s offering and image,” which creates and implants a distinguishing place in the minds of the targeted customers (Kotler & Keller, 2012, p. 276). For a positioning to be successful, a company must identify its competitors. Competitors are the companies that fulfill the same desires of the customers. Closest competitors to a company are those that make the same offers as the company to attract the same clientele.…

    • 593 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    As the world has moved towards globalization, competition has increased in the marketplace. Healthcare related companies such as pharmaceuticals and healthcare device manufactures (collectively herein referred to as healthcare industry) are moving towards creative ways of advertising and communication as a strategic marketing tool to increase their market share. However, the healthcare industry is subject to complex laws and regulations, not being compliant can lead to severe penalties. Marketing practices that may be acceptable in other industries are not so in healthcare industry as the products from healthcare industries may pose significant health risks.…

    • 1297 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    In “Taking patient-center health care from rhetoric” uses a good number of logos through the documentation, for example this documentation gives good reason why the patients in the Harvard Community Health Plan Hospital have reason to have a goal or go out and be part of the community. There is a part where it said that heath care provider is to give a patient a better day. Additionally, what…

    • 824 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    This learned strategy will then create competitive advantage and bring long term value to the healthcare organization. As challenges increase today due to high population demand with new chronic disease I realized the importance on creating modernized tools to differentiate from others in order to stay in business. Create a culture of…

    • 423 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Managed Care Failure

    • 694 Words
    • 3 Pages

    CMS (2015) informs us that in 1990's managed care plans managed reducing costs by negotiating discounts from providers and used lower cost settings (i.e., hospital versus ambulatory surgery center). As consumers required less restrictive care their utilization increased and such health expenditures increased. This is not because the managed care organizations (MCO's) have failed or they do not contain costs, it is a function of consumer demand. MCO's work diligently to control costs by ensuring the care is delivered in the safest cost effective setting, managing staff patient ratios, leveraging size to obtain the lowest possible price and standardizing the supply chain. MCO's can effectively manage costs, especially when compared…

    • 694 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Medical Debt Reflection

    • 209 Words
    • 1 Pages

    As medical debt rises and the demand for healthcare reform increases, it has become imperative now more than ever to learn about the factors that affect the healthcare industry. The application of business to the healthcare industry enables healthcare professionals to carry a broader viewpoint on the mechanics and functioning of the healthcare industry. Rather than just using my core science classes and internships to develop my point of view and learn about the healthcare industry, through the certificate program, I aim to broaden my scope of study and learn about the systems that affect the structure and functions of healthcare. Interning at private and public practices, learning about insurance billing systems, I saw how the U.S healthcare…

    • 209 Words
    • 1 Pages
    Decent Essays
  • Superior Essays

    Evolution Of Managed Care

    • 1147 Words
    • 5 Pages

    Values of the organization along with its mission and beliefs are also key to stakeholder and business success. Indicators such as quality access, innovation and prevention are all prime factors for a health care business to be successful (Wicks & Keevil, 2014). With this change in business sense, viewing health care as a basic right where medicine is not bought and sold like previous pay for service models, but rather a mutual understanding where stakeholders involved understand it is not just what is due to them, but also what their responsibilities are to other stakeholders as well (Wicks & Keevil,…

    • 1147 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Cvs/Pharmacy Case Study

    • 761 Words
    • 4 Pages

    Organizational Context With over 9,500 stores in 48 states, CVS/Pharmacy is one of the subsidiaries of CVS Health a pharmaceutical company headquartered in Woonsocket Rhode Island (CVS Health.com, 2016). CVS Health was founded in 1963 and today is comprised of CVS/pharmacy, CVS/Caremark, CVS/MinuteClinic, and CVS/specialty each fulfilling a diverse role in supporting patient health. The CVS/Pharmacy distributes healthcare products, child care products, medical supplies and equipment, cosmetics and other such products (CVShealth.com, 2016). CVS/Pharmacy is a company that believes in their employees and takes pride operating as a team as their 225,000 employees service over 5 million customers daily, 1.7 billion prescription annually, and specialty drug revenue in excess of $31 billion (CVShealth.com, 2016). They strive to recognize and reward the efforts and contributions of every employee as they help their consumers to a path of better health.…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    With everyone having health care coverage and the ability to choose where to go for health care needs, facilities will be competing to gain the trust and respect of the public to be the most often chosen health care provider. An organization that is dedicated to putting patients and their needs first, offers the most current and precise care, focuses on prevention, has strong leadership, and is cost-effective will stand out. A facility that is managing employees in a productive manner and having happy, skilled, and proficient caregivers who provide safe, quality care is a must for achieving the best clinical outcomes. Additionally, being focused, setting achievable goals, and meeting goals is crucial for health care providers to be successful. It helps keep employees engaged, focused on the mission and values of the organization, and contributes to advancing health care as a…

    • 893 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The impact of increased government involvement has required healthcare providers to alter their business practices. They must have a clear vision of the future and develop strong strategic planning methods to ensure practicability in the new healthcare marketplaces. Healthcare organizations must continually evaluate the healthcare markets, their labor costs, and present infrastructure to ensure soundness of their business plan. This also has caused hospitals, medical practices, physicians, and other healthcare businesses to merge and unite to stay viable in healthcare marketplaces.…

    • 1084 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Trying to expand an organization’s operations may work against the cost leadership strategy as an organization seeks to keep its costs below the competition levels thereby making it hard for the management to control. A health care organization may outgrow its business models thereby watering down the projected annual budgets and costs thereby exposing itself to risks of insufficient operating capital and thus being unable to put up with competition. Cutting costs may also derive employees off incentive programs thereby lowering their morale. These challenges can be mitigated through seeking employee feedback on how to improve their morale and acquiring technologies that reduce staff fatigue. An organization may also use price differentiation for different market…

    • 1019 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Introduction: Marketing is the core of any successful business. It assists in spreading awareness about the company’s product to its customers, potential customers and the community by advertising and promoting the company’s good or service. A very fundamental part of marketing is branding. Branding provides the company’s products with the opportunity of being uniquely recognized; and distinguished between it and other companies’ products as well as acquiring a respectable reputation among their competitors, customers and community nationally and internationally. Also, through marketing the company can determine which good or service appropriate best for their customer’s which creates diversity among their audience.…

    • 1392 Words
    • 6 Pages
    Great Essays
  • Great Essays

    Colgate Brand Analysis

    • 1427 Words
    • 6 Pages

    Q1: Define brand. What do brands mean to you? What risks do they cover for customers and business firms? (by Mahnoor Aziz) Ans.…

    • 1427 Words
    • 6 Pages
    Great Essays
  • Decent Essays

    Ethics in Marketing – Importance, Scope and Concerns Marketing Ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Marketing ethics has influenced companies and their response is to market their products in a socially responsible way. The increasing trend of fare trade is an example of impact of marketing ethics. As stated by the Statement of Ethics of American Marketing Association, some ethical norms are - • Do not harm • Embrace ethical values such as honesty, responsibility, respect, fairness etc., • Foster trust in the marketing system No company is completely ethical or unethical, they might be ethical in one aspect and unethical in the other.…

    • 777 Words
    • 4 Pages
    Decent Essays