Introduction
Marketing communication is the integral part of the brand strategy of an organization and can enable the firm to acquire competitive positions. This case describes how to competitive hospitals Brianwood and Crestview operating in the same locality compete against each other. Crestview has made a smart marketing communication move by acquiring two billboards near Brianwood.
The pros and cons from the perspective of Crestview Hospital of the placement of its new billboard directly adjacent to Brianwood Medical Center
Crestview Hospital will gain a lot of publicity by placing its new billboard directly adjacent to Brianwood Medical Center as it would appear as its rival Brianwood is advertising Crestview. This would make the business more inviting. This would benefit the local customers who would very easily locate the hospital premises and facilities and all unsatisfied patients of Brianwood will also know where to go for better treatment. In this bold advertisement form all the marketing messages of Crestview will be visible to all passers-by. An illuminated billboard would convey the marketing message at night too. By the use of bold and bright colors the billboard of Crestview is sure to grab more attention. As it secured both direction facing billboards, all the patients entering and exiting the competitor Brianwood will have a good view of the advertisement of Crestview. The tag line ‘ best medical care in Oakland will benefit the hospital more by giving it a competitive advantage of being better than Brianwood. Crestview has depicted strategic agility in its marketing communication (Sull, 2009). This strategy will give Crestview hospital reputational advantage (Srivastava, Fahey, & Christensen, 2001). In this case the billboard will act as a precipitous marketing event that will lead to a swift change in the business environment in the favor of Crestview.
The cons of using the advertisement space at a location just facing its top most competitor is this marketing move will make the competition more challenging as by stating you are best in a location that belongs to that of your competitor, an organization increases competitive pressure to prove itself better and also the customers as well as stakeholders will be scrutinizing and comparing Crestview with Brianwood more than before.
The customers and the community stakeholders might perceive as Brianwood is promoting and advertising Crestview as the Billboard is almost in the premises of Brianwood and faces both the directions.
Competitive marketing entry strategies
With Crestview is strengthening its brand name Brianwood requires positioning its organization in a better way to influence the stakeholders and the customers positively (E. Porter, 1979). Brianwood needs, assessing the competitive forces of Crestview. E. Porter, (1979) suggests that the key to succeed in marketing competition is to occupy a position that is less vulnerable to rivalry attack. Whilst occupying the billboard was a very vulnerable marketing aspect, Brianwood can frame counter strategies such as building stronger bonds with the loyal customers, using marketing to differentiate their hospital can be a strong strategy considering that Brianwood is a not-for-profit healthcare establishment, which could psychologically attract more customers. Also Brianwood can focus on acquiring better and advanced technological facilities than its rival Crestview thus gain technological leadership and attracts more customers and influence the stakeholders positively (Eliashberg & Jueland, 1996). The timing of using these marketing techniques is also very important to combat the marketing damage created by the rival medical facility, acquiring two billboards at face Brianwood, the timing is a tactical decision. Since already the competitor Crestiview has become a pioneer in its marketing strategy by gaining the first mover advantage the marketing communication of Brianwood needs to be timed very soon in order to combat and reduce the damage (Lilien & Yoon, 1990).
Brianwood can also sponsor events such as fund raising charity events for free treatment of cancer patients and medical camps, seminars and talks by doctors and health professionals about topics such as prevention of diseases, controlling obesity and diabetes risk, etc. These events would engage and attract the locals and the stakeholders (Belch & Belch, 2003) and place Brianwood in a better competitive position.
Marketing communication strategies for both Crestview and Brianwood
Both the competitive hospital Crestview as well as Brianwood needs to employ strategies for efficient marketing communication. They need to inform their customers and stakeholders about who they are and how can they benefit the community. The branding and marketing communication strategy of both of these hospital will affect the other one. So it is important for Brianwood as well as Crestview that how does their customers wants to view the. As Brianwood is a not for profit organization the customers would like to view it as a service organization so the branding should be done accordingly. Both the organizations before re-framing their marketing communication strategy requires to monitor the competitive strategy of each other so that they can frame an effective counter communication strategy and differentiate themselves.
Analysis of the communication tone- Both Brianwood and Crestview needs to assess that what each other are saying about their organization. Are they individually channelizing all communication channels such as mass media, PR, radio, etc. If Crestwood is not fully channelizing an effective communication channel, Brianwood can use it for its benefit and vice versa. Also, there is a need to analyze what tone of communication is used by the competitor that is working best with the target audience is it friendly or authoritative? If Crestview is using friendly tone and attracting customers Brianwood can also follow suit.
Analyzing the promise of the competitor - Both Brianwood and Crestview needs to analyze what promises are their competitors making to the stakeholders If these promises can positively influence the other company’s market reputation it should find ways to use it in a better or a cost effective way.
Having a good PR strategy- Apart fro Billboard advertisements, a good PR strategy is also equally efficient to attract a local consumer base (Synder & Morris, 1984). This could be effectively used specially by Brianwood to counter the negative effect of Crestview getting hold of two billboards near Brianwood Hospital. Using the advertisement space of a local newspaper can attract the local readers who are the prospect customers for the hospital.
Why the governing board of both the hospitals need to take a proactive role in promoting and implementing effective marketing strategies?
The social media can be used to positively influence the local customers and the stakeholders that are the targeted marketing audience for Brianwood when Brianwood starts strengthening its marketing communication, Crestview also needs to be proactive in implementing and executing new competitive marketing communication strategies in order to sustain itself.
Conclusion
The marketing communication strategy of a competitor should be taken as a new opportunity for market research to make an effective marketing communication strategy (Madhavaram, Badrinarayanan, & McDonald, 2005). The move of Crestview occupying two billboard advertisement near Brianwood should be considered as a data point for Brianwood to to frame and devise their own better and effective strategy. Brianwood needs to re-frame its marketing communication strategy and adopt an integrated marketing communications using advertising, sales promotion, PR and social media.
References
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