Product Overview

Published: 2019-05-15 21:19:41
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Abano Health group offers a variety of dental services such as oral health, teeth repair and treatment, cosmetic services, dental implants, filing and many other services. The channel distribution of its dental service includes traditional methods such as magazines which work together with the company to increase communication between distributors and manufacturers allowing both to maximize on profitability. Additionally, it includes viral networking tools such as blogs, YouTube, Google, Contests and Sweepstakes. The current product pricing differs by product line for instance; it offers other ranges of treatments such as cosmetic and general dentistry with the opportunity to apply for an 18 months no payment and interests on dental treatments that cost $300 and above. It is important to consider that value is important to the company. So the pricing position for the company is to enhance appreciation of the services and improve the value of products. The current promotional methods for Abano dental services include both personal and impersonal promotions. Personal promotion or direct advertising involves communicating with the customers on a face-to-face contact through consultation services. An impersonal promotion constitutes mass media advertising and online advertising in social platforms such as LinkedIn and YouTube. It seems to be the better alternative for Abano Company and draws more consumers in the clinic. It simply generates leads while personal promotions which are labor-intensive turn prospective consumers into customers

Adjusting the Marketing Mix

The impact of adjusting the customer service in Abano Dental clinic will ensure patient satisfaction and loyalty if the quality of service is increased. This can be due to price and promotional adjustments. Recently, the company has integrated other specialist services such as oral surgery and pediatric dentistry through its Lumino services in New Zealand. This has resulted in increased profitability for the company and ensured more satisfied customer base. A company such as Abano offers high value services that are well-positioned to take advantage of its pricing adjustments than companies whose services and products are indistinguishable. The need of price adjustment based on value pricing is about setting the price to capture the value that the consumer or client receives. The more value Abano Dental offers to its clients, the higher the price it can charge. This will ensure it maintains profitability. Abano also needs to extend its services beyond Australia, New Zealand, and Asia in order to capture a larger customer base in order to establish itself as a reputable company. Adjusting the place also leads to brand recognition beyond its normal geographical area. In the notion of distribution channel, the current adjustment is suitable because technological adjustment has resulted in wide growth as compared to conventional means such as television marketing. Distribution through online and social platforms has become the trend in private dental clinics. Adjusting the current promotional methods such as blog advertising and social advertising has led to a wide target market and most importantly brand recognition (Patterson, 2013).

Adjusting the Marketing Mix and Market Response

This section will answer how the changes to customer service, distribution chain, price positioning and promotional methods can be responded to the market, by consumers. In order to effectively evaluate the response, the PESTEL analysis is an ideal framework that will scan the companys external macro environment.

Political

Possible changes in policies regarding drugs

Medical staff strikes due to possible salary anomalies

Economic

Adjusting the price on customer service will result in customer satisfaction hence development in sectors such as infrastructure and resources for expansion

Social

Adjusting the quality services and promotional methods to the consumer results to an increased awareness of personal health and educational level

Technological Factors

Adjusting distribution channels and promotional techniques such as online marketing has resulted to a more consumer base and web based channeling services (e-channel)

Environmental Factors

Adjusting promotional methods from conventional methods such as brochures and poster advertisements is more suitable because such methods pose environmental problems such as unorganized disposal of waste hence leading to a poor biodiversity.

Legal Factors

The adjustment on promotional methods has integrated safety and non-discriminatory measures that encourage the promotion of dentistry and health of the public. It is an obligation for dental clinics and healthcare groups to practice code of ethics and practices in promoting their services in accordance to the standards as indicated by the Australian Dental Association (Ada.org.au, 2015).

Adjusting the Marketing Mix and Strategy

Abanos current and future growth strategy is driven through both acquisitions and organic means. The Managing Director Mr. Clarke has indicated that increasing its presence as a reputable brand in the dental sector has been its core strategy. The recent television marketing program by its corporate brand Lumino has challenged its existing online promotional challenges. This indicates an adjustment in its promotional method. According to Patterson (2013), increasing the profile of the brand through promotional adjustments and distribution channels aligns with its marketing strategy. In addition, the author cites that adjusting the price in the marketing mix has improved affordability in dental care. This is a factor that has caused Lumino to adjust its customer service in order to enhance its attractiveness. Adjusting the 4Ps of marketing mix certainly aligns with the companys current strategy. However, as Patterson (2013), a significant adjustment that aligns with the companys growth strategy is place. The opportunities for Abano as dental healthcare group are going to be found in the regions of Tasman rather than New Zealand. Market expansion and place adjustments are important for the company to establish its brand and increase customer base.

Adjusting the Marketing Mix and Financials

According to Patterson (2013), promotional adjustments such as the new television advert campaigns have raised the profile of Abano significantly. It has consequently provided a positive market response through increased staff and consumer base. In addition, Abano defines enhancing its brand as part of its strategy that aligns with the adjustments. Apart from price adjustment which has also increased affordability and attractiveness, promotion adjustment has enabled the company to outshine its competitors in the market. In order to support these adjustments, the financial considerations are; the company has increased the number of employees working in Tasman and Australia to 1,300. Promotion resulted to a turnover of $206 million in 2012. With an annual growth rate of 20%, the company is set to pose a significant threat to its main competitors such as Pacific Smiles and Dental Corp. In 2012, the company reported a profit of $1.6 million and cited promotion as a key factor in its growth (Patterson, 2013).

Monitoring adjustments to the Marketing Mix

In order to monitor the promotion adjustment in the marketing mix, it is important to analyze the promotion variables based on regions, sales potential such as the Tasman market, and other significant marketing factors. The objective is to create an effective promotional mix strategy that will achieve the balance between income and sales based on the services that Abano offers. In addition, making adjustments on the marketing mix is necessary when the costs are increasing beyond its financial budget. Correct action and analysis may mean revaluating the internal and external environmental factors in order to have a strategic approach. It is important to monitor and adjust the marketing mix such as price and promotion in order to meet the companys operational and strategic marketing objectives and positioning. But when should Abano consider monitoring adjustments to its marketing mix? It is imperative to consider adjustments after some period of time for instance months. In addition, as a result of its annual financial report, adjustments are necessary.

Reference

Patterson, A. (2015). Andrew Patterson talks to Abano, a company changing the fragmented dentistry business here and overseas, introducing the concept of affordability | interest.co.nz. Interest.co.nz. Retrieved from http://www.interest.co.nz/business/64310/andrew-patterson-talks-abano-company-changing-fragmented-dentistry-business-here-

sheldon

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