Kaiser Permanente: Health Care Company, Term Paper Example

Kaiser Permanente boasts that it bases its marketing segmentation approaches “that target specific populations who are the fastest-growing segments of our society” (Kaiser Permanente, n.d.). As a consequence, one of the company’s marketing segmentation strategies is to target the populations that are typically underserved in healthcare. Ethnic minorities are typically underserved for a variety of reasons, which could related to their geographic income, socioeconomic status, knowledge about the healthcare field, and likelihood to regularly attend appointments. Despite the assumption that underserved populations are not profitable in the healthcare field, Kaiser Permanente understands that this is not the case. The company’s website claims that they are “committed to creating a workforce with the cultural sensitivity and the language skills needed to help eliminate cultural barriers to communication”, which is the basis for Kaiser Permanente’s ability to profit off of this group.

Kaiser Permanente works with about 140 groups that are considered to be underserved minorities. Initially, racial and ethnic minorities appear to be an inappropriate group to target for marketing segmentation because each group contains a small number of people and it is not profitable to target small groups. However, Kaiser Permanente profits because it considers this group as a whole in a sense. For example, racial and ethnic minorities that are unable to speak English clearly or at all are typically restricted from obtaining medical assistance because many doctors are not bilingual. However, by offering translation services through the phone at doctor’s offices and the hospital, Kaiser Permanente allows this group to bypass this barrier. Therefore, when the company creates marketing campaigns that target this group, it can do so in a way targets problems that all ethnic and racial minorities share, despite the fact that each culture lumped together in this group is very unique in actuality.

Ultimately, Kaiser Permanente creates marketing segmentation plans according to the unique needs of all people. As stated above, a unique needs of racial and ethnic minorities is translation services, which are emphasized by the company in attempts to attract this group. Other market segments that are considered high yield for Kaiser Permanente and have become target markets include the elderly, and more recently, 25 to 54 year olds.

Kaiser Permanente’s new plan to target 25 to 54 year olds is a second example of how the company takes advantage of corners of the market that other company’s rarely target. According to a Kaiser Permanente representative, this campaign will “highlight KP’s quality of care and the ability to choose physicians and access in a personalized way” (Irwin, 2013). Kaiser Permanente has recognized that this is this group that is least likely to seek out preventative care but is also most likely to be involved with technology. One of the major aims of this marketing project is to convince members of this age group that preventative care is necessary and could be made simple through the use of technology. A secondary aim of this project is to emphasize the choices that individuals have about their care and that these choices will be available to them throughout their involvement in the healthcare system. Being able to choose is very important to this age group, and Kaiser Permanente intends to benefit from this.

Kaiser Permanente takes advantage of geographic marketing segmentation in order to meet the demands of target markets. The company has more presence in the specific geographic areas that large populations of its target groups live in. For example, Kaiser Permanente has established an Office of Minority Health (Kaiser Permanente, n.d.). The goal of the office is to reduce racial and ethnic disparities in healthcare and options as a research institution that explores minority health in addition to operating as a center in which minorities could physically enter in order to gain support from workers. This particular office is located in Washington D.C., where a large population of minorities are known to live. This is a smart marketing move for Kaiser Permanente because the individuals that this office is intended to help is located nearby. Interestingly, this marketing segmentation is political as well. Since Kaiser Permanente’s diversity office is located in an area that is known for politics, the company is likely hoping to use its pleas for equality and social awareness to gain positive attention to the company. The more people that Kaiser Permanente is able to help, the more likely they will be to generate media attention. Furthermore, individuals who are interested in the Office of Minority Health could easily locate it on the Kaiser Permanente website. This website includes a blog, which works to bolster interest of the individuals who learned of the office either because they are a minority who needs help or because they heard of the good work that is being done by the company.

Since Kaiser Permanente’s other target groups include geriatric patients and individuals between the ages of 25 to 54, their services are relatively well dispersed throughout the population and focused in areas with large population density. It is more difficult to geographically target these two groups because they are prevalent in a number of locations across the country.

References

Irwin T. (2013). Kaiser Permanente Launches Multimillion-Dollar Effort. Marketing Daily. Retrieved from http://www.mediapost.com/publications/article/206311/kaiser-permanente-launches-multimillion-dollar-eff.html

Kaiser Permanente. (n.d.). Diversity. Retrieved from http://www.kaiserpermanentejobs.org/diversity.aspx

Kaiser Permanente. (n.d.). Office of Minority Health. Retrieved from http://centerfortotalhealth.org/tag/office-of-minority-health/