Essay Example on Market Size Segmentation in Healthcare

In healthcare, market segmentation defines the target market and informs healthcare professionals on what motivates their targets. Market segmentation, therefore, helps to create compelling messaging and positioning for a specific product. All stakeholders within healthcare should take a creative approach when activating and embedding market segmentation. This is critically important for ensuring optimal success for any healthcare organization.

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Market segmentation positively impacts companies by helping them identify unique upsets in population subsets. These populations are targeted for the delivery of specialized services and different initiatives of marketing (Newgrowthconsulting.com, 2019). In healthcare, market segmentation is usually defined by geographic location, disease categories, and demographic characteristics. A market segment is usually identified and established to help healthcare organizations to formulate the different components needed by their target market. These components include the placement, promotion, and the product requirements of the marketing mix (Swenson, 2018). For instance, market segmentation can be done on women above 25 years old to know if they are inclined to purchase anti-pregnancy products or specific maternity products.

Market segmentation may also have weaknesses. Sometimes, a particular market segment may not be very consistent in marketing all healthcare products since the wants and needs of different segments could be different. When using the market segmentation approach, consistency is only possible only in segments which are reasonably close to the other in terms of income, age, and even social and cultural background. Marketers have to consider if a specific segment is available before they market their products. Competition exists in different segments, and it could be possible that a particular segment is serviced by competitor providers of healthcare products and services (Swenson, 2018).

In conclusion, a market segment can be defined by its geographic characteristics, maternal status, marital status, income, or age. These segmentations are essential in helping healthcare organizations to determine whether members of a specific segment are inclined towards buying a specific healthcare product.

References

Newgrowthconsulting.com. (2019). NewGrowth Consulting, Inc. >> Healthcare IT >> Healthcare Market Segmentation. [online] Available at: http://www.newgrowthconsulting.com/healthcare_it/healthcare_market_segmentation.html [Accessed 12 Jul. 2019].

Swenson, E. R., Bastian, N. D., & Nembhard, H. B. (2018). Healthcare market segmentation and data mining: A systematic review. Health marketing quarterly, 35(3), 186-208. Retrieved from https://www.ncbi.nlm.nih.gov/pubmed/30470165