Southern Baptist Hospital Case Study Southern Baptist

Southern Baptist Hospital Case Study

Southern Baptist Hospital faced a dilemma similar to many other hospitals in the 1980's, an "industry which had a widespread excess of hospital beds as a result of change in government policies and the building of new facilities over the prior two decades, further exacerbated by technological advances" (Fisher, C. & Anderson, C. December 1990) . In this ultra-competitive context marked by declining revenues and margins coupled with increasing costs, "many hospitals embraced marketing and advertising" (Fisher, C. & Anderson, C. December 1990) The SBH case study explains the decision of the organization in utilizing advertising, the media blueprint, and its actual and perceived efficacy.

To what extent did SBH research the needs of the audience prior to developing a marketing strategy?

From the case study there is no evidence that SBH conducted research regarding the potential needs or demand drivers of their potential or existing customers. The organization was already held in high esteem by the public and as such the importance of understanding what the public wants in terms of products, service, and delivery becomes even more crucial. SBH's choice to advertise was an excellent one as multiple studies demonstrate that "a majority of consumers favors hospital advertising and the percentage in favor has grown steadily over the years" (Fisher, C. & Anderson, C. December 1990) however, without research conducted to discover what to advertise and to whom the effort is wasted.

Does it appear that SBH has an overall marketing plan?

SBH's marketing plan "was a campaign of television advertisements aimed at reinforcing the image of SBH as a high quality institution" (SBH Case Study. N.D.). While this marketing initiative has a purpose it does not constitute a marketing plan which involves a Product specific, market specific, or company-wide plan that describes activities involved in achieving specific marketing objectives within a set timeframe. A market plan begins with the identification (through market research) of specific customer needs and how the firm intends to fulfill them while generating an acceptable level of return. It generally includes analysis of the current market situation (opportunities and trends) and detailed action programs, budgets, sales forecasts, strategies, and projected (proforma) financial statements (Business Dictionary. N.D.).

SBH's directive falls woefully short in addressing these vital marketing plan elements.

Does it appear that SBH had a significant grasp of the nature of marketing?