INTRODUCTION
The report analyzes the case of Johnson City which was the premier group in heart services. The report discusses about cultural issues and where the marketing would fit in this professional service organization. The report also discusses whether Johnson City should focus on niche market or mass market. The report also discusses the pros and cons of both the strategies.
ISSUE OF CULTURE AND WHERE MARKETING MIGHT FIT INTO A PROFESSIONAL SERVICES ORGANIZATION
Although, Johnson City was the premier group in heart services but with the passage of time the group was unable to enhance its skills and core competencies to support its growth. In addition, the resistance to move forward through the change in strategy clearly reflects that the employees along with the management are highly resistant to change.
The issue with the culture was primarily due to the limited scope and mission of the organization. The mission of the group was restricting the organization to focus on multi-specialty practices to gain superiority over other groups in the tri-state region. In addition, the attitude to the partners in the annual strategic planning was also daunting. The entrance of retreat from the annual strategic planning significantly reduced the group’s ability to overcome the threats and challenges.
The marketing of services can increase the referral to a great extent. In order to market the services, the organization can provide information regarding the achievements of organization in the services industry. By doing so, the physicians would ultimately refer Johnson City to patients for heart services. In addition, the promotion of services can also influence the society member and physicians to a great extent.
NICHE OR MASS MARKET
PROS AND CONS OF BOTH APPROACHES.
Niche Market
The pros and cons of niche market are as follows;
Pros:
- Specialization in the respective field
- Ability to charge premium prices from the customers
- Viable business model as the entire focus would be on a single-minded approach
- Good profit margin and significant increase in gross margin
- Significant increase in the loyalty of patients
- Lack of competition in the market as others as constantly focusing on multi-specialty
- High level of differentiation from multi-specialty groups
- Significant opportunities to develop stronger brands
Cons:
- Low sales volume as the focus would be on specialized services.
- Limited customers in the market because of limited offerings.
- Higher costs associated with the acquiring of experts on the field
Mass Market
The pros and cons of mass market are as follows;
Pros:
- Larger target market with greater offerings.
- Higher sales volume due to a variety of services provided to the customers
- Viable business model as the organization can cater the needs of variety of customers in the market
Cons:
- Gross margin is comparably slim due to lack of specialization
- Higher costs associated with the marketing of the product
- Lack of differentiation
- Comparably low level of loyalty than a niche market
CONCLUSION
The report has discussed the issues at Johnson City and the report has also highlighted how the company should formulate its strategies in order to be successful. For this reason, the strategic decision of whether to focus on the mass market or niche market has been analyzed. Pros and cons of both the strategies have also been presented.
References
Haberberg, A., and Rieple, A. (2008). Strategic Management: Theory and application. New York: Oxford University Press.
Lovelock, C., and Wirtz, J. (2011). Services Marketing – People, Technology, Strategy. New Jersey: Prentice Hall.
