100%(4)4 out of 4 people found this document helpful
This preview shows page 1 - 3 out of 4 pages.
New City Home Care is an established company, looking to expand its services into aneighboring community. Although the population of the community is much smaller than the 55,000in the current location, the aging population is experiencing tremendous growth. In addition, no otherhome health companies exist. New City has an opportunity to take advantage of being the first toenter the new market. However, to do so effectively, research on the current market is necessary.Opening a satellite office will require staffing with customer service/scheduling staff and health careprofessionals. The level of demand for services will likely determine how the office is staffed, how muchoffice space in required, and how the organization will market its services in the new community. Themarketing plan, once complete, will take into account many aspects of the current business, as well asthe new market.Historical trends will include demand, usage, and costs for administering care to home healthcare consumers. These types of data are important in developing a marketing plan, because marketingefforts must not only target the right market segments, but target them with the types of services andcare they expect. The demand for various types of services can be elastic. In other words, it can changeseasonally, can change as population demographics change, and can depend on price. In this instanceprice would likely be pre-determined by the third party payers, where they exist. Distribution of servicesis critical to success of the new satellite office (Kumar, Sunder, & Sharma, 2015). The company's currentmarket is likely to be somewhat elastic, in terms of demand. Therefore, it can be assumed the newmarket will come with such elasticity in demand.Costs are a critical factor, in providing home health care services. They influence the types ofservices offered, and decisions made about the extent of services. Many seniors want to know whichservices are available. For example, they may be interested in basic care, nursing care, IV care, physicaltherapy, or occupational therapy. Without enough demand, some of these services will not be cost-effective, due to costs of hiring and staffing health care workers, who are skilled and certified in each ofthese areas. The organization must explore the current market and try to predict which services will bein higher demand in the new market, so the right services can be marketed. In addition, co-branding, orreferring consumers to additional services like therapy, can become a mutually beneficial arrangement.The organization may need to establish referral protocols, for specific organizations offering the
additional services. Both companies benefit because, even though patients may only receivenursing care through the home health care company, they will feel like the company is going out ofit's way to arrange additional services. The additional services must then be marketed in a way that