HCO and strategic planning

Name: Course: Tutor: Date: Discussion Strategic planning is an important tool for the survival of any business entity as it aligns its objectives, human resources base and the prevailing and forecasted markets to the desired growth path. Healthcare organizations (HCO) for instance, in an attempt to maximize profits, ensure provision of high quality services and effective resource allocation for its activities. The role of marketing in this process is key as it identifies areas of growth within the institution’s present business and advices on the market penetration and development strategies together with the most ideal product development methods (Kotler et al., 2003, p.10). The Washington Hospital Centre in the strategic plan for the 2011-2012 financial year strived to increase their market prevalence by developing new strategies for their cardiovascular, neurosciences, transplant surgery, vascular surgery, breast surgery and orthopedic services. This move, according to the management would significantly increase patient turnover at the facility for the specified duration (Centre Focus, 2010, p.4). The most important pillar employed by HCOs in formulating their strategic plan is based on the notion of understanding their customers in terms of their perceptions on quality service delivery as well as their desires. Pricing of services is a major consideration in the development of marketing strategies as a conducive price for services offered directly translates into revenue for the institutions. It would be inescapable clearly understand and segment the market to ensure not only reasonable pricing but also provision of services that are consistent with their needs. A good marketing strategy would further analyze the competition in order to have an insight on the options available in the market, as this would provide a vital input on the kind of services that should be included in the portfolio. The marketing strategy plan should be geared towards the c...