Current marketing strategy
A brief summary of the case shows that the business in question, Sy Med Development is a medical software company that delivers managed care solutions advice to its customers. Sy Med Development, setup as Medilink, to provide simple managed case to managed care organizations. The major money making part of the business is split into two areas, the provider side, healthcare professionals and physicians, as well as the payer side, such as insurance companies and managed health care organizations.
Some of the major problems facing the organization revolve around how it has been aggressively targeted by its competitors. The presence of four major alternative companies who produce similar software is also an issue for Sy Med Development, as it commands a big market share of physicians who are generally wary of alternative companies and the time scale to fill out credentialing information in general. Some of the major opportunities available to the organization are that they have business integrity as well as trustworthiness in their chosen market.
They also have good business expertise in the field of medicine. Their chosen marketing strategy of trade shows, direct mailings to health care professionals and live product demonstrations has helped them maintain their market share. This is demonstrated by some of the statistics that Sy Med Development have shown, notably the fact that Sy Med Development is considered to be able to generate about 70 to 80 percent of annual sales in the year 2000, based on its current marketing strategy.
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Three alternative marketing courses of action for overcoming problems and further exploiting marketing opportunities are all based around improving the business strategy of the organization and developing a more efficient marketing and pricing policy. With the current opportunities and threats that exist towards Sy Med Development, a change of strategy is essential if they wish to remain as a profitable market leader.
The first of these would be to target a high profit audience for specific healthcare management and aim to produce a targeted audience who are more likely to buy the products than individual health practitioners who will use Sy Med Development as a one off purchase. Software would be developed to suit individual market segments and the company would not be as dependant on direct mail and “cold call” revenue.
This however may be difficult as demonstrated by the development of other software by Sy Med Development’s competitors. The second course of action for overcoming problems that Sy Med Development face is to widen the product mix and bring alternative software or forms of delivery to the customer, maybe through an online presence, or website. This would increase the target audience, however may not be successful due to some of the problems outlined previously with credentialing.
However specific targeted marketing may be able to overcome this potential problem. Finally Sy Med Development could aim to exploit the culture of the organization and build the entire organization around their role as a market leader in providing software to both the physicians and to the organizations who manage the health care information, as well as taking on the role of manager and consolidator of these healthcare plans and organizations.
If the business model is expanded whilst retaining the sales income from its current operations, profitability at Sy Med Development would improve dramatically. This scenario would seem to be the best course of action based on the evidence provided, and would help Sy Med Development to increase both revenue and market share in this very competitive market.