READ THE ARTICLE THEN ANSWER THE QUESTIONS BELOW IT

Discussion Topic: Determining the Best Positioning Strategy for Akron Childrens Hospital

Im not sure we are getting anywhere in this meeting, Aaron Powell thought to himself as he pushed his chair away from the conference room table and slowly stood up to stretch his legs after an hour had already gone past.

Powell, Akron Childrens Hospitals (ACH; www. akronchildrens.org) marketing director, stood to gaze out the conference room windows onto the two ribbons of train tracks that curled near the hospital on the north side of this midsized city in Northeast Ohio. He was thinking about how rival hospitals, such as Akron City Hospital, Akron General Medical Center, and St. Thomas Hospital, had recently hired marketing directors like himself. The urgency to advance Akron Childrens Hospitals marketing effort was going to intensify in the next year.

Powells meeting was going into its second hour. In addition to Powell, the meetings participants were Mark Norton, the hospital operations officer (Powells boss), and Janet Jones from the Cleveland- based Marcus Thomas communications and research agency (www. marcusthomasllc.com). One staff member from finance was there, along with the soon-to-be-retiring public relations director for the hospital. In the past, both of these staffers would support whatever Norton proposed or liked. It now looked like Powell and Jones were on the other side of a divide about how to approach positioning Akron Childrens Hospital in next years advertising campaign. To make matters worse, Powell and Jones appeared to be outnumbered, and the tension in the room was palpable.

Let me read the research problem statement all of us revised in the first hour of our meeting, Jones said. Akron Childrens Hospital board wants the hospital to become the preferred hospital in the high- growth areas of the region. Accordingly, we are studying positioning possibilities, so that the board can select the best positioning for next years communications campaign intended to boost the number of patient cases 10 percent in the following year.

Thats it. Thats what we want, Norton said. But I dont think we have to pursue a research project with a survey that just may lead us to reinvent the wheeland for $60,000, too.

What wheel is that? Powell asked, turning away from the window to face Norton.

Aaron, you know as well as I do that this hospital is all about children. Its even in our name, Norton said. Emphasize the kids. Whatever we do in the media should feature the kids. Just do some focus groups that will allow Marcus Thomas to get some ideas for their advertising about kids and our hospital. That should only cost about $20,000. But honestly, I am not sure we even need that.

Mark, remember that McDonalds tends to emphasize kids, too, but adults are featured in their advertising most of the time, Powell said. Marcus Thomas needs to cover the entire range of issues fami- lies consider when choosing a hospital for their kid. If we miss some- thing important, one of the other hospitals in Akron might claim they are the better hospital when it comes to this.

Aaron is making a good point, Jones said. Right now, we dont know which positioning would help Akron Childrens the most.

So describe which paths we can pursue now, Norton said.

Plan Ado focus groups only, as you suggested, Jones said. Plan Bdo focus groups with a follow-on survey. Plan Cdo a survey with follow-on focus groups. And plan Ddo no research.

Tell me more about each of these, Norton said.

In plan A, Marcus Thomas would conduct four focus groups, with an average of 10 respondents per group, Jones said. Well ask partici- pants to discuss their experiences while at a hospital. Participants will be required to be the primary decision makers for health care decisions within the family and have a childnewborns to 18 years oldwith an acute condition and who had spent at least 3 consecutive days in a hospital. Because most health care decision makers within a family tend to be women, most of the participants will be female between 25 and 54 years old with one or more children ranging from newborns to 18 years old.

Cost? Norton asked. About $20,000, Powell said. Jones continued. In plan B, well do plan A, plus a field survey to follow-up on the issues we identify in the focus groups. First, well ask about unaided and aided awareness of hospitals in the region. Then, based on what we learn in the focus groups, we will identify the concepts of three positioning strategies and ask survey respondents which one they prefer most and which one they prefer next most. Well be able to statistically determine the degree of preference among the positioning alternatives.

The three strategies might be, one, Akron Childrens Hospital has doctors who listen to you, Powell said. Or, two, we know how to meet the unique needs of children, or, three, we use the latest advances in treating children.

Cost? Norton asked again. About $60,000, Powell said. What about plan C? Why does that make sense? Norton asked. We can identify the best positioning strategy by conducting a survey. The salient aspects of this positioning strategy to the consumers can then be explored via focus groups. The cost will be the same as plan B; that is, $60,000, responded Jones. And plan Dno research. Turn our creative staff loose and hang on for the ride, Jones said with a wry smile. Norton returned the smile and looked around the room. Doesnt your firm do the advertising for the Ohio Lottery? Norton asked. With plan D, we might do better by playing the Ohio Lottery!

Sensing the humor, everyone in the room laughed together. Finally, tension seemed to begin dissipating.

QUESTIONS

1. Akron Childrens Hospital Marketing Director Aaron Powell felt it was important to conduct this study because __________. (State the relevant background information for justification.)
2. The main purpose of the Akron Childrens Hospital study was __________. (State as accurately as possible the reason for doing the study.)
3. The methods used by Powell and his team to answer the marketing research problem were __________. (Describe the general approach used and include details that assist in evaluating the quality of the results.)
4. The research design decision can be put into context by __________. (Place the research design decision into other readily understood contexts.)
5. If we take this line of reasoning seriously, the implications for many other firms are ______________. (What consequences are likely to follow if people take the marketing teams reasoning seriously and apply it to other firms?)
6. Define the management-decision problem confronting Akron Childrens Hospital and a corresponding marketing research problem and show the linkages between the two.