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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...
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,…
The need to advertise and having the resources to effectively do so do not inherently demonstrate a grasp of marketing. A 1986 study "found that 83.3% of responding hospitals used some form of media advertising" (Fisher, C. & Anderson, C. December 1990) however, without understanding who the target market segment is, what their needs are, and the most effective means to reach them the initiative will indubitably fall short of expectations. Advertising in the broader context of marketing should be construed as a "useful way of informing potential patients about services and specialties and making the public more aware of the qualifications of hospitals" (Menon, M., Goodnight, J. & Wayne, R. 2006).
What are the implications of focusing marketing efforts on corporate image rather than the services the organization provides?
A broad-based corporate image strategy for a hospital does not address the products or services which potential patients would be inclined to utilize. Consumers do pay attention to advertising as "more than 75% of respondents reported that they had recalled having seen advertising for a local hospital" (Fisher, C. & Anderson, C. December 1990). Further, Professional
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