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Impact Of Marketing Mix Strategy On Hospital Performance (A Case Study Of Nnpc Kaduna Medical Zone Hospitals)

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10 Steps for A Successful Marketing Mix Strategy - Magezon 

CHAPTER ONE:

INTRODUCTION

1.1     Background to study

One of the fundamental ideas in marketing theory is the marketing mix strategy (Ziethaml and Bitner, 2000). A variety of marketing mix techniques have been proposed for various marketing situations as a result of the popular version of this notion, that of McCarthy (1964), linked to the 4Ps (product, pricing, promotion, and location), coming under increased attack in recent years. The phrase “marketing mix” refers to a collection of instruments at an organization’s disposal to mold the content of its offer to clients (Palmer, 2001). The marketing mix is described by Kotler (2000: P15) as “the collection of marketing tools that the company employs to pursue its marketing objectives in the target market.”

The conventional 4Ps of the marketing mix model, according to a number of studies (Booms and Bitners, 1981; Lovelock, 2001; Ahmad, 2007), are insufficient for both the marketing of goods and services. Because of their intangibility, irreducibility, heterogeneity, and perishability, services vary from products. Booms and Bitner’s earlier work (1981) expanded the marketing mix for services from the standard 4Ps to the 7Ps by include three additional components: people, tangible evidence, and procedures. According to Day and Wensley (1988), one of the top strategic concerns for achieving long-term goals is customer happiness. According to Day and Wensley (1988), customer satisfaction measures how well a hospital provides value to its patients and other clients. Consideration should be given to using patient satisfaction as a performance measure suitable for small hospitals because it is an essential component of performance assessment. In conceptual and practical performance measurement frameworks, patient perceptions of the quality of care are becoming more and more important (Lied and Kazandjian, 1999). In other words, patient and family satisfaction comprises a variety of factors, from “hotel” service features (like food or parking services) to medical aspects (like morbidity, usage of a variety of antibiotics, or nursing services), among others. In order to understand how the many elements of the marketing mix strategy affect patient satisfaction at the NNPC Kaduna Medical Zone Hospital, we build a conceptual framework. The arrangement of the document is as follows. The initial conversation starts with a closer examination of a health organization’s marketing mix approach. The current study’s goal is to investigate how the elements of the services marketing mix strategy affect the performance of private hospitals in Kaduna, Nigeria, based on patient satisfaction.

1.2     Statement of Problem

The research problem revolves around investigating the marketing mix strategies in NNPC Kaduna medical zone hospitals. This research will answer the following questions:

  • Are the marketing mix components achieving the hospital performance measured by patient satisfaction in NNPC Kaduna medical zone hospitals?
  • Is the health service strategy satisfying the patient needs and wants?
  • Is the pricing strategy satisfying the patient ability to pay regards the consumption of health services?
  • Is the promotion strategy reaching and satisfying the patient needs and wants?
  • Is the place /access strategy delivering the health services in terms of physical, time, and informational access to the target patients?
  • Is the physical evidence strategy satisfying the patient needs and wants?
  • Is the people strategy satisfying the patient needs and wants?
  • Is the process strategy satisfying the patient needs and wants?

 1.3 Objective of study

The research importance focus on that determinants and studying of factors affecting hospital performance which are very important issue that help the hospital administration to properly improve patient satisfaction which leads to patient retention of health services in private sector hospitals. This research makes a positive contribution in the direction of marketing mix strategy influencing hospital performance measured by patient satisfaction in the health services. However, this research sought to overcome the limitations it encountered with the most methodological sound techniques and it should be followed by other efforts in the same direction. This research and similar studies will encourage other researchers to engage in more studies regarding the marketing mix strategy components in the hope that such efforts will improve the relationship between the organization, its managers and its customers with regard to greater mutual and common advantages and benefits

1.3.1 Aim of research

To measure the impact of marketing mix strategy on hospital performance, measured by patient satisfaction.

1.3.2 Objectives of the Research

Based on the above section highlighting the marketing problem in NNPC Kaduna medical zone hospital, the broad aim of this research is:

To determine the effect of marketing mix strategy on NNPC Kaduna medical zone hospital performance based on patient satisfaction.

To achieve this broad objective, three objectives have been identified, which guided the investigation of the research problem.

  1. To define the components of the marketing mix strategy of the NNPC Kaduna medical zone hospital.
  2. To determine the elements which constitute the hospital performance measured by patient satisfaction of the NNPC Kaduna medical zone hospital.
  3. To determine the effects of the marketing mix strategy components on the hospital performance measured by patient satisfaction of the NNPC Kaduna medical zone hospital.

1.4     Statement of Hypothesis

The research is adopting a null hypothesis ‘marketing mix strategy on hospital performance has a positive effect on customer satisfaction’.

1.5     Significance of study

This study aims to comprehend how the marketing mix approach can positively impact the operations of NNPC Kaduna medical zone and other outlying hospitals in the city. Since patient satisfaction is used to gauge an impact, the survey will also attempt to gauge how well patients are accepting of how the NNPC medical services hospital operates.

1.6     Scope of study

This research is only conducted at the Kaduna hospital of the NNPC medical services. One of NNPC’s five medical zones is the hospital. It covers the entire northern NNPC installation’s medical operations. NNPC Medical Services has just received its business entity registration. It is now a profitable organization as a result. This study’s focus is on how customers, such as NNPC employees and NNPC HMO members, judge the effectiveness of operations based on the marketing mix strategy.

1.7     Operational Definitions

Independent Variable: Measured by Health Services Marketing Mix: Palmer (2001, p 10) regards the marketing mix as being “the set of tools available to an organization to shape the nature of its offer to customers”.

  1. Service / Health Service: defined as the intangible activities and performance designed by interactive process in order to satisfy customer/patient needs and expectations, and convince them, this process could be done by using tangible products (e.g. MRI, C.T. Scanning) (Kotler, 2011).
  2. Price: defined as the amount of money or value of other items with utility needed to acquire a product or services (Duffy, 2000).
  3. Place/access: Health care organizations, whose products are primarily services, must consider three distribution decisions: physical access, time access, and informational and promotional access (Jones, 2003).
  4. Promotion: this includes all of the tools available to the marketer to transform their message about the product/health service strategy to the target market; moreover, this consists of communication/promotional mix (e.g. advertising, sales promotion, personal selling, e marketing, and public relationship) (Shimp, 2003).
  5. People: consist of staff (medical and administrative) with the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers/patients are paying for (Bitner, 1990).
  6. Physical Evidence: it is the environment in which the service is delivered and any tangible goods that facilitate the performance and communication of the service. Customers/patients look for clues to the likely quality of a service also by inspecting the tangible evidence (Kasper et al, 1999).
  7. Process: this means procedures, mechanism and flow of activities by which a service is acquired. Process decisions radically affect how a service is delivered to customers/patients (Kotler, 2011). Dependent Variables: Hospital Performance Measured by Patient Satisfaction (HPMPS)
  8. Patient / Client Satisfaction: is an attitude-a person’s general orientation towards a total experience of health care. Satisfaction comprises both cognitive and emotional facets and relates to previous experiences, expectations and social networks (Keegan et al, 2002).

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