write a 4-page essay
about a health care organization with which you are involved, or are familiar (Veterans
Affairs hospital in Salisbury, NC.). Specifically, your tasks are to select an organization and
describe it. Then, discuss the main challenges in marketing that organization. For the
second part of this SLP, your task is to discuss segmentation and target marketing of your
selected organization. Be sure to specifically address the following questions:
1.How does your selected health care organization segment the market(s) that it serves?
2.What is your organization’s target market(s)?
3.How are your organization’s services positioned to meet the demands of its target
In healthcare industry, marketing can be defined as the process of developing,
communicating as well delivering healthcare interventions using customer centered services. It
also involves planning, and managing available resources so as to promote the populations
health. Marketing in healthcare is geared towards examining and understanding patient’s
interests and preferences that influence their decision making processes (Codourey, 2013). This
paper explores Veterans Affair hospital (VA) in Salisbury, NC segmentation and organization
How VA Salisbury, NC segment the markets it serves
Market segmentation refers to the processes of identifying clients’ responses and how
they are expected to respond differently to market variables such product, price, distribution and
promotion. Market segmentation involves subdividing markets into groups. The VA Salisbury,
NC provides care to military veterans, spouses, and children of military veterans. The targeted
audiences are veterans who have served a minimum of 90 days in the military. The organization
uses a post hoc segmentation method. This is where variables are identified and then grouped
using analytical technique using variables such as demographics, region, and the community
demands (needs based segmentation). This implies that segments are derived according to the
causal factors that relate to health resource utilization in this organization. This is an effective
method because it divides the market based on the unique needs of the service users such as co-
pay price, premium price, availability of preventive services and network sizes among others
(VA Healthcare, 2013).
The organization utilizes conjoint surveys to understand the targeted markets Attitudes,
behaviors, and products preferences. This is necessary so as to provide identifiable as well as
actionable as solution. The process includes analyzing the healthcare service product to ensure
that it is of the highest quality and cost of effective. Segmentation is also achieved by
distributing confidential questionnaires to ask patients about their experiences during their
inpatient and outpatient treatment in their healthcare facilities. The feedback is critical element
that ensures that the VA is provides quality healthcare services to the veterans that meets their
expectations, improves customer’s satisfaction and health promotion (Garcia & Gonzalez, 2013).
The organizations conducts SWOT and cost benefit analysis program to understand the
organizations strengths and weaknesses that impact the positive and negative decision making
during segmentation; and to determine the programs that are of greatest values to the veterans.
The analysis helps the organization to focus on internal and external changes such as per
patient’s costs, organization’s operation costs and patient satisfaction scores to ensure that health
services reach every person in the population (US Department of Veterans Affairs, 2015).
Organization’s target market
The VA mission is to deliver seamless continuum of sustainable and predictable high
quality and patient centered care that is of superior quality. This organization has a long history
of caring for Nation’s veterans. The foundation of the organization marketing strategy is to build
trust and confidence in the service users and the nation that the organization provides
exceptionally quality and safe care. The message that this healthcare facility is communicating is
that the organization will continue to be the benchmark of value and excellence to provide
exemplary services that is evidence based, patient centered care and collaborative care in
integrated in environments support continued improvement (VA Healthcare, 2013).
With the current enrollment of over 500,000 veterans, the initial organization’s target
markets is 31.3% of veterans above 65 years and are not currently using the VA healthcare
services for their primary care. Secondly, the organization also targets the veterans whose annual
income <$20,000 annually. The market also targets the veterans that are not able to live
independently or have limited functionality in their daily living. The organization marketing
strategies focus to reach veterans using a number of techniques and strategies to recognize the
unique groups within the population. This includes the underserved veterans living in remote
areas, chronically ill or is diagnosed with mental illness. This organization’s main aim is to
expand on the market and to promote premier health plan for the veterans. The VA affairs have
defined market niche that will ensure targeted and efficient marketing for its services (US
Department of Veterans Affairs, 2015).
How VA Salisbury, NC services are positioned to meet the targeted markets.
The goal of marketing strategy is to ensure that the target market is identified, and to
establish a marketing mix that is appealing to their potential clients. Decisions about the ideal
marketing mix are organized based on the price, promotion, product and price. The goal is not
just to reach with particular strategy but focusing on ways to provide value to the targeted clients
It is important to understand where competitors are positioned and what attributes are
most important when clients are seeking healthcare services. Positioning generally refers to the
place the healthcare service being offered occupies in the client’s mind in relation to the
competitive differentiation. To understand the current organization market position, the
organization relies on data from market research projects in order to identify the attributes of a
product that are important to the client, and services perceived to best deliver each attribute and
improvements that must be done to improve customer’s satisfaction (Astuti & Nagase, 2014).
There are two main market positioning strategies namely a) head to head and b)
differentiation. Head to head market positioning is done by organization that have stable and
solid in areas that seem relevant and holds a large percentage of the total market share. However,
this organization cannot use head on head positioning and is better off searching for niche in
market that suits the services it offers. This is done using competitive differentiation analysis
together with annual market research to understand the organization’s role in the dynamic health
care industry (Fellows, 2013).
The VA healthcare facility positions itself to effectively meet the demands of the diverse
veteran population. The identified specific needs in this population that needs to be addressed
includes improved quality healthcare that optimize accessibility, enhanced value of primary
care and to increase of post- traumatic stress disorder care and treatment and counseling services,
training. The organizations position itself as premier healthcare system for the community’s
veterans that provide both quality and the patient’s clinical outcomes. The VA leverage
competitive edge because of its unmatched patients quality care, convenience, accessibility,
superior clinical outcomes and superior patient’s clinical outcome (VA Healthcare, 2013).
Astuti, H. J., & Nagase, K. (2014). Patient loyalty to healthcare organizations: relationship
marketing and satisfaction. International journal of management and marketing research,
7(2), pp. 39–56. Available in the Trident Online Library.
Codourey, M. (2013). The Public Handshake, the Pushed Gossip and the Healthcare Marketing.
Economics & Sociology, 6(2), 11-27.
Garcia, M. R., & Gonzalez, L. I. A. (2013). The untapped potential of marketing for evaluating
the effectiveness of nonprofit organizations: a framework proposal. International review
on public and non-profit marketing, 10(2), pp. 87-102. Available in the Trident Online
Fellows, J. (2013). Rebranding Helps Sharpen Marketing Strategy. Healthcare Marketing
Advisor 14(11), 4-7.
US Department of Veterans Affairs. (2015). W.G. (Bill) Hefner VA Medical Center- Salisbury,
VA Health Care. (2013). Veterans Health Administration marketing plan.