Friday, November 13, 2009

Rajeet Guha
Mayo Clinic – Case Study

Mayo Clinic’s mission is to provide and promote high quality healthcare. The Mayo Clinic ensures the realization of the mission through three pillars of its work: diagnosis and treatment through clinic and hospital services at its different locations, cutting-edge research at the frontiers of medicine and dissemination of knowledge regarding medical care and treatment. To sum up as the Mayo Clinic’s website says “Mayo Clinic will provide the best care to every patient every day through integrated clinical practice, education and research”.
The Mayo Clinic’s target customers are primarily the 600,000 patients who come to the clinic every year for treatment and their families as well. It has over the years focused on providing the highest quality healthcare to its patients in a consistent manner thus delivering consistently superior value and satisfaction to its customers. This is at the heart of Mayo Clinic’s excellent customer relationship management. Mayo Clinic has also focused on the human side of medicine as part of its customer relationship management by creating a very family-friendly atmosphere in its clinics and hospitals and even in the examination rooms where there are couches for families. It has also developed the practice of reaching out to the patient through doctors, scientists, health professionals and laboratory working together for the highest interest of the patient. The doctors also don’t wear white coats but instead wear suits thus creating a relaxed atmosphere. It also has graduate study programs. It has produced several Nobel Laureates over the years. As a result its primary customers namely patients and their families as well as doctors benefiting from Mayo Clinic’s cutting-edge research have all spread the name of Mayo Clinic creating a fantastic brand image. As the case study reports there is a 84 % market awareness of Mayo Clinic’s good work overall and 90 % awareness amongst those above age 45.
Clearly, the Mayo Clinic has positioned itself through its excellent work, research and dissemination of knowledge. Its superior position vis-a-vis any healthcare company or institution has happened through word of mouth amongst patients and their families, doctors and decision-makers. It has positioned itself simply by creating high value for its customers without any conscious marketing strategy.
2. In terms of marketing mix, Mayo Clinic has provided excellent products in the form of healthcare services to its customers, cutting-edge research at the frontiers of medicine and dissemination of medical knowledge to the public. Mayo Clinic has also focused on the human side of medicine as part of its customer relationship management by creating a very family-friendly atmosphere in its clinics and hospitals and even in the examination rooms where there are couches for families. It has also developed the practice of reaching out to the patients through doctors, scientists, health professionals and laboratory workers working together for the highest interest of the patient. The doctors also don’t wear white coats but instead wear suits thus creating a relaxed atmosphere. All of this comprises the product part of the marketing mix.
The doctors in Mayo Clinic are paid straight salaries and are not allowed to collect fees from patients for costly treatments. This is the price tool of the marketing mix.
The Mayo Clinic has expanded to Jacksonville, Florida and Scottsdale, Arizona to meet the demand of its services for retiring populations as well as expanded to 10 million square feet at its headquarters in Rochester, Minnesota. This is the place tool in the marketing mix.
It has not consciously done any marketing or advertising to promote its name. It has undertaken no promotion effort. Despite this it’s name has been promoted through word of mouth by patients and their families as well as by doctors and decision makers. This is the promotion tool of the marketing mix.
Thus, Mayo Clinic’s marketing mix focuses mainly on the product tool and to some extent on price and place tools.
As Mayo Clinic’s reputation and fame grows, more and more companies want to team up with the Mayo Clinic or pursue joint ventures for new opportunities. However, the Mayo Clinic has to be very careful in choosing its partners because a bad name on the partner firm would tarnish its image and its not-for-profit values.
Furthermore its brand equity has grown tremendously over the years and it will need to evolve a suitable marketing mix, which will help to suitably protect this marketing mix. This will involve some steps such as the product part of the mix continuing to improve its quality. Although a suitable distribution channel of its product (place tool of the marketing mix) is important, the distribution channel will have to be consistent with what is expected of a Mayo-branded product. This is especially important in terms of international demand. Thirdly in terms of pricing it cannot compromise on price because that may harm its brand image. Fourthly it should not partner with a company unless the partner has equally good brand equity. In terms of promotion of the strong values of Mayo Clinic such as the highest quality service the Mayo Clinic must see that its partners also have an equally strong and quality service.
3. The Mayo Clinic must ensure that its product quality should not dilute. In fact it should continuously improve its products, research, and medical knowledge dissemination. It can open centers at more locations to meet the demand for its services. However, it should not let the standard of quality service fall. Without deliberate intention Mayo Clinic has emerged as a world-renowned brand through its unwavering service to customers. This brand has to be protected and leveraged for growth. It has to see that just about any run-of-the-mill company does not use its brand name. It has to see that its brand name is not misused. Mayo Clinic has to maintain coordination among its internal units. It has to choose its partners very carefully so that its image is not sullied. It must keep on stressing the altruistic nature of the product.
It can also consider brand extension through creating other products with the same brand name such as books, technical equipment, etc. The Mayo Clinic has to maintain its product quality and extend its service.

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