Differentiation and Positioning, Research Paper Example

Product/Service Positioning and Differentiation

Product differentiation is the process of formulating distinctive characteristics in a company’s product or service. Production differentiation is simply creating a product or brand that is different from another. Whether through customer service strategies, color, images or slogans, developing distinction for a product or service is an important aspect to successful marketing within any industry. While brands and products may share similarities, organizational strategies must include marketing methods that can communicate services and features that the competition does not have. This can be accomplished by knowing one’s target audience, identifying consumer needs and demands and monitoring consumer trends. There are six key areas of product positioning and differentiation. These areas include:

1. Know the ins and outs of the product/service while understanding its impact on consumers
2. Be aware of the competition, market trends and unique opportunities in the industry that may shift consumer demand and distinctions
3. Establish exceptional service excellence by ensuring that the ordering process, the delivery and the product meet service expectations
4. Develop well trained employees who treat every customer as if the success of the organization depends on it
5. Location, location, location – Make sure that service and product location accommodates one’s target audience.
6. Ensure that the image and perception of the product or service is appealing and creates an emotional connection with its consumer base or potential consumer base (Rao, 2009).

“Positioning is the result of differentiation decisions (Rao, 2009). There is a sphere of product and service marketing that goes beyond advertising and promotions. With the increase in global and domestic competition, organizations today must develop strategies that can allow their product and services to take on an identity that will consistently emerge in the minds of its consumer. Positioning a product in the mind of consumers requires a level of branding that serves as a viable solution to consumer demand. Understanding consumer demands, having knowledge of consumer and community profiles and proactively determining how one’s product impacts the industry are all critical steps in developing a product positioning strategy.

Healthcare Provider Positioning and Differentiation Strategies

“Positioning lets you create a place for your product in the mind of your prospect. Without it, your marketing, advertising and Public Relations dollars are at risk. With it, the sky’s the limit” (On Target Research, 2009). Historically, determining which healthcare provider to use was a simple process with minimal complexities. Today, however, healthcare providers and their organizations have positioned themselves with clear and comprehensible distinctions. These distinctions can center on physician or specialist type, products and services as well as service locations. Healthcare reforms and changes to healthcare insurance have provided healthcare patients with more autonomy over their healthcare decisions. As a result, healthcare organizations must incorporate solid positioning strategies in addition to competitive differentiation. These distinctions not only impact the quality of healthcare services but can make the difference between life and death for healthcare consumers.  In order to evaluate the variations in healthcare positioning along with the differentiation of its products and services, an analysis of healthcare giants Carolinas Medical Center and Presbyterian Hospital of the Carolinas will be examined in this assessment.

Carolinas Medical Center’s Vision, Values and Mission

Carolinas Medical Center (CMC) is a key cornerstone to healthcare services in the Southeast and houses over 500 physicians and 32 associated healthcare centers.  Carolinas Medical Center specializes in trauma care units, cancer treatments, home health and extensive surgical procedures. Carolinas Medical Center is also highly recognized for its research and development unit which focuses on clinical decisions and in-house testing (Carolinas Medical Center, 2011).  Carolinas Medical Center is experiencing success by developing an extensive range of partnerships and expansive locations across the southeast region. Carolinas Healthcare also has a wide range of consumer feedback venues along with community collaborations.

CMC Vision

“As the Carolinas’ premier healthcare provider, Carolinas Medical Center will be chosen by consumers and physicians for high quality and cost-effective health services” (Carolinas Medical Center, 2011).

CMC Values

Ensuring the satisfaction of Carolinas Medical Center employees equates to the satisfaction of CMC patients and clients. As a result, CMC views their employees and partners as their most critical asset. In order to accomplish this objective, Carolinas Healthcare has implemented internal structures that will assist employees in nurturing the (1) Teamwork, (2) Commitment, (3) Care and (4) Integrity of the organization in order to ensure that each patient is provided the necessary treatment in order to improve their quality of life (Carolina HealthCare System, 2011).

CMC Mission

The guiding principle that Carolinas Medical Center uses to focus on the success of their operation is the development of a comprehensive system that meets the various medical and educational needs of their patients. Carolinas Medical Centers uses its research and development unit to address those areas that require additional studies and examinations (Carolina HealthCare System, 2011).

Presbyterian Hospital: Vision, Values and Mission

Although Presbyterian Hospital does not house as many physician offices and healthcare centers across the southeast, Presbyterian Hospital has established its organization as reputable healthcare provider in the Charlotte NC region. Presbyterian Hospital has elected to become a primary provider on a local level versus expanding its services across the southeast. As a result, Presbyterian has an extensive level of resources and healthcare provisions for its clients with over 200 remote healthcare centers and physician offices. Presbyterian Hospital has positioned itself as a leader in Bariatric Services, Behavioral Health, Children Services, Corporate Health, Diabetes, Hospice and Palliative Care, Orthopedic Service, Pastoral Care, Rehabilitation Service and as a premier provider in Women’s Care (i.e. maternity care) (Presbyterian Hospital, 2011).

Presbyterian Hospital’s Vision

“We, the employees of Presbyterian Healthcare and our physician partners, will deliver the most remarkable patient experience, in every dimension, every time” (Presbyterian Hospital, 2011).

Presbyterian Hospital’s Values

In contrast to Carolinas Medical Center, Presbyterian Hospital views the patient and the employee as equal components for its organizational success. Similar to Carolinas Medical Center, however, Presbyterian Hospital has implemented four key concepts in developing its value system. These areas include (1) Compassion, (2) Diversity, (3) Personal Excellence and (4) Teamwork.

Presbyterian Hospital’s Mission

Evident in its strategic development, Presbyterian Hospital has a primary focus on mastering the quality of specific healthcare services within a particular region versus expanding with a broad-based concentration. Presbyterian Hospital seeks to accomplish this mission by improving healthcare service within its community one person at a time (Presbyterian Hospital, 2011).

Positioning and Differentiation Strategies

Conclusion

“Health Marketing involves creating, communicating, and delivering health information and interventions using customer-centered and science-based strategies to protect and promote the health of diverse populations” (CDC, 2005). Healthcare marketing is very similar to the current approaches and methods of other organizational marketing strategies. It requires the positioning and differentiation of products and services that is more than creating distinction in the minds of its consumers. In order to address the issue of global and domestic competition, organizations today must develop strategies that will make their services a leader in the industry.

References

Center for Disease Control and Prevention. (2005). What is Health Marketing? Retrieved from web June 17, 2010 from web: http://www.cdc.gov/healthmarketing/whatishm.htm

Carolinas Medical Center. (2010). Commitment to Care. Retrieved July 5, 2011 from website: www.carolinasmedicalcenter.org

Presbyterian Hospital. (2011). Who We Are. Retrieved July 5, 2011 from web: http://www.presbyterian.org/site/who_we_are/

Rao, N. (2009). Marketing Strategy – Differentiating and Positioning the Market Offering.

Retrieved July 5, 2011 from web: http://knol.google.com/k/marketing-strategy-differentiating-and-positioning-the-market-offering#