Question
You have just been appointed as the New Vice President of Marketing for St. Philipp Medical Center, and it is your job to make recommendations
You have just been appointed as the New Vice President of Marketing for St. Philipp Medical Center, and it is your job to make recommendations regarding the annual advertising promotion budget. With 500 beds and approximately PhP800 million in total annual revenue. St. Philipp Medical Center is the fourth largest private hospital in your region. In the past several years, St. Philipp Medical Center has spent approximately 15 million on advertising and promotion (3 % of revenues). You have observed that there have been numerous changes both inside and outside the hospital that suggest a possible need to change the amount budgeted for advertising and promotion. Please read the following situation analysis.
The hospital recently completed an extensive renovation, and an article in the local newspaper proclaimed,"St. Philipp Medical Center now has one of the most attractive facilities in the region. The newly renovated outpatient surgery center is a technological marvel that promises state-of- the-art and yet cost-efficient service." Although it has been suggested that additional advertising might be needed to highlight the new outpatient surgery center, the hospital's chief financial officer has expressed concern that with approximately 90% of outpatient care under managed contracts, it might be unwise to focus more attention on a medical service that stands to gain so little from an increase in noncontract customers.
The hospital's marketing programs were assessed in a recent report prepared by a local marketing firm. The report indicates that although St. Philipp Medical Center has spent more money on image rather than medical services advertising in the past, fewer than 30% of area residents have a clear image of this hospital. On the other hand, the hospital's chief executive officer has told you that the hospital has had success in the past offering special seminars (e.g., Wellness Week, Seniors' Day) to increase awareness of targeted health care issues.
Finally, federal census reports indicate that the population in the ten-county area surrounding St. Philipp Medical Center has been growing steadily for the past five years at 4% per year, and that growth rate is expected to continue.
TASK: Based on your quick assessment using your knowledge and appreciation on Pestle, Porters, and other frameworks to help you establish your external market assessment, kindly recommend for an effective integrated marketing communication in order to address your identified market opportunities which can help improve the business of the hospital and propose for a marketing budget (in peso value) if the program is to run for a period of one (1) year. Your answers will not require powerpoint, creative visuals etc. just pure discussion.
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