LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT AND

TECHNOLOGY BAREILLY

Project Report on

Study on use of marketing by private hospitals

In Bareilly Region

Under Guidance of: Ms. UPASNA GUPTA

(professor) Submitted by:

GROUP-3:

(NAVYA ,MANSI,

RISHABH SHARMA,

RISHABH GANGWAR (2018-20)

 PREFACE
• Hospital is the organization that dreams up an idea of service
offering (treatment).

• Satisfy the customer’s (patient’s) expectations (of getting

cured)

• Hospital offers an intangible service called health care.

 ACKNOWLEGEMENT

The work presented in this report has been drawn from an empirical study conducted through survey
research through structured questionnaire

I would like to thank Prof. Rajendra Bharti, Director LBSIMT Bareilly for his whole hearted support in
completion of my project work. I am thankful to Ms. Upasna Gupta, Project Guide for his valuable
guidance and support for timely completion of this report.

Finally, I would also like to extend my thanks to all the non-teaching staffs, colleagues and family
members for their endurance and being there in every thick and thin.
 TABLE OF CONTENT

S.No Content Page Numbers

1 Objective of study 6

2 Research methodology 7

3 introduction 8

4 Scope of the Study 14

5 Data Analysis & Interpretation 15

6 Findings 23

7 Conclusion 24

8 Limitation of the Study 25

9 Suggestions & Recommendations 26

 Annexure
 Introduction

Health care in India is one of the largest service sectors, with more than 4 million
people engaged. The health care Services in India based upon various systems
of medical practices such as Allopathy, Ayurveda, Unani, Siddha and
Homeopathy. Among all the above, allopathy is the widely used medical
practice. The infrastructure in the private sector provides at least 80 per cent of
health services in the country and can be classified as private dispensaries,
private hospitals, charity hospitals and corporate hospitals..The health care
industry comprises hospitals, medical infrastructure, medical devices, Clinical
trials, outsourcing, telemedicine, health insurance and medical equipment.India
is considered to have a good health care network available in both rural and
urban areas of the country.
The important component of the value chain in the Indian Healthcare industry
rendering services is the hospital industry.
Hospital is the organization that dreams up an idea of service offering
(treatment), which will satisfy the customer’s (patient’s) expectations (of getting
cured). The service is a combination of tangible and intangible aspect with the
intangible aspect dominating the tangible aspect. A hospital offers an intangible
service called health care, characterized by inseparability, intangibility, variability,
perish ability, and simultaneity.
A hospital is an institution for health care that provides treatment by specialized staff
and equipment, and often, but not always provides for longer-term patient stays. The
Indian health care delivery system compares favorably with many other Asian
countries.

Marketing Strategies

Healthcare has entered a tightened market economy. For these reasons, the
marketing of healthcare services has become essential for the financial survival
of physicians andHealthcare organizations.On, hospitals include hotels within
the hospital campuses.A marketing strategy provides healthcare organizations
with a shared vision of the future. All too often, an organization will perform a
marketing task, send a direct mail shot, then sit back and see what happens. A
strategic approach will ensure that organization maximizes returns on the
marketing spending and boost the profits.

The marketing strategies are useful to develop and sustain better health care
relations for patients. Traditional doctor-patient relationships have been
replaced by intermediary health organizations. The price transparency, quality
health service, multi-specialty services, financial-accommodation, customer and
competitor analysis and promotional measures are becoming more important in
the globalized era, especially in the health care market . The marketing
strategies of the Private hospitals have been examined with the help of medical
specialization, financial, accommodation, health packages, customer analysis,
competitor analysis and promotional measures, which were identified by various
researchersBangalore highlighted the marketing needs of health care industry.
  Mass Communication: advertising in newspapers, brochures, inserts,
multimedia etc.
 Personalized Communication: Bulk SMS, emails, loyalty programme etc.
 Public Relation Activities: Community development initiatives, accolades,
achievement etc.
 Brand Building Activities: Brand recall activities, brand perception
improvement activities etc.
 Social network or digital media

Promotion has dominant role on hospital marketing integrated communication

concept gained currency in hospital marketing. Consumers want quality
information about hospital services, medical programs, and the kinds of doctors
available.. Importance of hospitality in hospitals and medical tourism are
highlighted by researchers. Internet and related technologies change customer
experience. However, maintaining website is a challenge.Internal marketing is
key for customer satisfaction .Hospital marketing orientation leads to good
hospital performance.Especially for small hospitals . Hospitals can succeed in
creating positive brand equity and image if they can manage relationships with
their customers well
 LITERATURE REVIEW
The survey of literature, with reference to health care marketing provides the
following-

 (Stanton, and Daley, 1982) found that (i) Health caresegments can exist
even in rural areas which are relatively homogenous from a demographic
standpoint and (ii) useful for service mix design and offer.

 Farley and Hogan (1990)found that Services range increased, over the
years, with specialization and lower costs and product line management
became important . The role of technology and innovation is appreciated.

 (Stephanie and Delene, 1993) found that Quality is the main focus for
health care units for good profit performance . Physicians’ perceptions as
well as patients’ perception of quality were considered important.
Perceptions of physicians and patients differ in most cases.

 Waters and Hussey (2004) found that price determination is influenced

by characteristics of organizations and patients (. Reasons for patronizing
a hospital include the following- (i) convenience in searching the service
provider (ii) ease of getting related services at the same place (iii)
discounts to age groups and (iv) Attitude of medical staff and others.
 Kotler, et al., (2008) noted that modern marketers focus on the customer
rather than product and services, and believe din a stable, constant
relationship with the customer, because they attempt to obtain the
highest level of satisfaction and create value for the customer.

 Bahadori et al., (2015) identified six important factors that contribute to

patient’s choices of a clinic. These are the facilities and physical assets,
physicians and employees, location and placement, services, prices and
promotion. The most significant contributing factors to attract patients are
‘physicians and employees’ and the clinic environment

 Josm and Becker (2016) indicated that a higher level of registered

menses per had appears to image overall patient satisfaction. Conversely,
hospitals with a higher proportion of nursing homes provided by contract
nurses have significantly loan level patient satisfaction.

 Savitha (2016), that the urban workers are having higher tendency to
avail private health care services, whereas the rural prefer the public health
care services. The quality of health care services plays an important role in
choosing the type of health facilities by the workers.

 Indian studies
Indian studies have corroborated the relevance of marketing and
advocated increasing competitive differentiation.
 Research Gap
From the above exposition, it is clear that there are a few studies on marketing
of private hospital services. . They highlighted the steps to be taken by the
hospitals to stay competitive. However, such studies are essential for different
hospitals, and also from time to time for two reasons; (i) hospitals differ in
services and philosophy and (ii) the environment is dynamic. The present study
is an attempt to add updated information on marketing practice and patient
satisfaction to the literature on hospitals marketing.
 Research Objectives
The study is undertaken with the following objectives:
 To identify the marketing strategies use by the select private hospitals in
Bareilly Region.
 To measure the patient satisfaction with the services of select private
hospitals in Bareilly Region.
 RESEARCH METHODOLOGY
 Research Design

The research design is ‘descriptive’ research design.

 Instrument of Data collection

Data are collected from the hospitals with the help of a structured questionnaire.

 Method of Data collection

The data for the study is primary. The primary data is obtained from the
patients and hospitals a survey of Opinion of hospitals organized to Understand
marketing effectiveness.

 Sample size

The total sample size is 70 respondents.

Choice of hospitals
1) Kesh Lata
2) Cuties and Kids
3) Prakash
4) Mahajan
5) Shri siddhi vinayak
6) Ganga charan
 7) Sarvodhay…… and many more

Sample frame

Private hospitals in Bareilly Region.

Scope of the study

The present study helps to know about the appropriate marketing strategy in
various customer segments in order to satisfy all types of customers in the
health care industry , in order to create the patient loyalty towards the hospital.
The present study provides a base for so many future research works. In future,
there may be a comparative study on the implementation of marketing
strategies by private and non-private hospitals. The scope of the present study
may be needed for a separate study on the difficulties in the formulation and
implementation of marketing strategies in the healthcare industry.
 Data Analysis

 How many patients to visit to your hospital at one day?

visits to hosptital

8 0-100
27 100-200
14
200-300
21 300-400

This pie chart depicts that Bareilly is a city were the daily footfall of patients is around 100 per day.

 Have you noticed any increase in the patient footfall after

conduction any promotional activities?

increase in patient footfall

16

yes no

54
 According to 54 out of 70 hospitals there promotional activities have helped
them.
 What type of marketing activities you follow?

marketing activites

Extensive advertising in electronics

and print media
22
26 Conducting and participating in
seminars
Prepaid health care services

4
Attending and organizing special
health camps
18

Bareilly is a place where extensive advertising in electronic and print media and
attending and organizing special health camps are mostly used to make appearance in
the market especially with name of the doctor. Doctor name is more popular than
hospital name

 Which medium of advertising do you use?

 medium of advertising
Advertisement in print media
2
12
Advertisement in electronic
25 media
Wall Posters

Advertisements through
19 hoardings
12 Social activity

Hospitals believe in highlighting there name and visualizing their presence that is why
advertising through print media , wall posters, and holdings are mostly used

 Do you organize Health check-up camp?

18

yes no

52

 If yes then how frequent you organize health check-up camp?

 frequency

3
14
1-3 month
1-6 month
19
6-12month
more than 1 year

16

The frequency of free health check-up is very low in Bareilly. Only 52% hospitals
organize health check-up camp and out of that most of the hospitals prefer to do twice
or thrice a year

 What are the sales promotion activities that you undertake?

sales promotion activities

8
Executive Health Check-up
26
Insurance Schemes

Charity
26
Health Card
10
According to us this was not the honest answerer of hospitals because they
said they do charity and extensive health camps but earlier study has shown
that the frequency of health cams is very less in Bareilly

 Do you provide services related to various government schemes?

government schemes

12
19
yes
no
sometimes

39

Hospitals fell distracted in their daily working that is why most of the hospitals do not
provide service related to various government schemes

 Do you take service feedback regarding from your patient?

feedback

33
yes no
37
Hospitals try to work in traditional way that is why they do not focus on improvisation
of their working that is why the fashion of taking feedback is not their

 If yes, what are the modes of taking service feedback you use?

modes of feedback

0 mobile phone
letter
4
fax
e-mail
26

Hospitals focus on convince for them and for patients also that is why mobile phones
are mostly used

 Do you reward patients for frequent use of your services?

 reward patients

27

yes no

43

If yes

method

9
11 giving discounts
no fee for certain consultation
free medicines

The process of giving discounts to regular patients is not there and those who give
prefers to the process of giving discounts ,by charging less fee and free medicines

Word of mouth communication helps in to build a chain of patients?

 3

yes
no

67

Yes word of mouth helps them a lot

Relationship Marketing (Doctor-Doctor) helps in to increase the

patients?

relationship marketing

5
9
yes
no
sometimes

56

Doctors are very concern to their relationships that is why it helps them to increase
their relationship marketing

 How do you motivate and influence the prospective patients to

seek your services?
 13

Best quality service

7
Sharp pricing and discounting
Social Service

50

Every doctors main focus is to provide best aids to their patient ‘problem
similarly it is depicted by this study most doctor focus on best quality service

Given your opinion with the following?

40 38 37
35 31 32
30
25 21
20 16 16 agree
15 13 13
strongly agree
10 7 8 8 7
6 5 6
4 disagree
5 2 2
0 strongly disagree
There is a need for Marketing research is Advertisement by Hospital are also undecided
formal marketing essential to plan for hospitals will improve marketed Indirectly
department for future programme and the turnover through existing
hospitals. for survival patients,other
doctors,druggists and
chemists

statement mean

There is need for formal marketing department for 2.28

hospitals

Marketing research is essential to plan for future 2.40

programmed and for survival

Advertisement by hospital will improve the turnover 2.25

Hospital are also marketed indirectly through existing 2.27

patient, other doctors, druggists and chemical
How important the following attributes while choosing the location for
hospitals?
40 35 35 36
35
30
25 23 most important
20 17 very important
14 14 14
15 11 important
8 9 9 10 9 8 7
10 7
4 5 5 slightly important
5
0 not important
Places where Proximity to Thickly populated Easy accessibility
competitors are transport facility area to patients
located

statement mean

Places where competitors are located 3.79

Proximity to transport facility 2.85

Thickly populated area 2.04

Easy accessibility to patients 2.01

How will you rate the following modes of Advertisement?
40 36
33 34 33
35 32
29
30
25 21 22 21 22
20
15
9 8 8 7 8 8 7 very good
10 5 5
5 0 good
0 undecided
bad

statement mean

Newspaper and magazines 1.90

By word of mouth 1.84

Electronic media 2.04

Seminar and conferences 1.84

Social service 1.50

 FINDINGS
• Bareilly is a city were the daily footfall of patients is around 100 per day.

• Every doctors main focus is to provide best aids to their patient

• Advertisement help 54 hospitals to increase there sale

• extensive advertising in electronic and print media and attending and organizing
special health camps are mostly used to make appearance in the market
especially with name of the doctor

• Print media is commonly used as a medium of advertising

• The fashion of health checkup is really low

• Hospitals fell distracted in their daily working that is why most of the hospitals
do not provide service related to various government schemes

• Taking feedback was not there idea.

• The process of giving discounts to regular patients is not there and those who
give prefers to the process of giving discounts ,by charging less fee and free
medicines

• Doctors are very concern to their relationships that is why it helps them to
increase their relationship marketing
 Application of chi square

Ho -there is no significant relationship between marketing activities and patient visit at

one day

Ha- there is significant relationship between marketing activities and patient visit at
one day

Patients Extensive Conducting Prepaid Attending total

visit advertising and health care and
in electronic participating service organizing
and print in seminar special
media health
camps

0-100 11 5 1 10 27
100-200 5 5 2 9 21
200-300 7 6 0 1 14
300-400 3 2 1 2 8
tota 26 18 4 22 70

Chi square value- 2.2 standard / table value – 3.85

Null hypothesis is rejected

Ho -There is no significant relationship between sales promotion and patient

visit at one day
Ha- There is significant relationship between sales promotion and patient visit at
one day
 Sales promotion

Patients Executive Insurance Health charity total

visit health schemes card
check-up
0-100 13 7 4 3 27

100-200 7 1 1 12 21

200-300 4 1 2 7 14

300-400 2 1 1 4 8

total 26 10 8 26 70

Chi square value- 2.97 , standard table value – 3.85 (2.97<3.85) level of
significance- 0.05 , Null hypothesis is Accepted
Ho -There is no significant relationship between health checkup and patients
visit at one day
Ha- There is significant relationship between health checkup and patients visit at
one day
Health checkup

Patients visit yes no total

0-100 18 9 27

100-200 14 7 21
200-300 12 2 14

300-400 8 0 8

total 52 18 70

Chi square value- 6.53 , standard table value – 3.85 , (6.53>3.85)

level of significance- 0.05 , Null hypothesis is rejected

Ho -There is no significant relationship between service feedback and patient

visit at one day
Ha- There is significant relationship between service feedback and patient visit
at one day
Service feedback

Patients visit yes no total

0-100 20 7 27

100-200 14 7 21
200-300 6 8 14

300-400 4 4 8

total 44 26 70

Chi square value- 1.3 , standard table value – 3.85 , (3.85>1.3)

level of significance- 0.05 , Null hypothesis is accepted

Conclusion

 Various type of marketing activities done by the private hospitals

really helpful in to increase the number of patients .
 Sales promotion activities do not much helpful in to increase the
number of patients .
 Health check-up camps is an effective strategy to attract the
patients towards hospitals.
 Service feedback does not much influence the patients.
 LIMITATIONS OF THE STUDY
 Only 70 private hospitals are considered for this study which is very limited in number.
 The respondent may not interested to fill the questionnaire
 The despondence were not supportive
 authentic as it may involve biasness and favoritism.
 This study is confined to Bareilly region only.
QUESTIONNAIRE
Study on use of marketing by the private hospitals in Bareilly
region
This study is conducted by students of Lal Bahadur shastri institute of
management & technology Bareilly. Please be assured that your responses
will be strictly confidential. Please put a mark to specify your preference.
Name of the hospital:

Address of the Hospital:

Name of the Respondent:

Designation of the Respondent:

Email id:

Contact no:

1. AGE
 o <20
o 20-30
o 31-40
o 41-50
o Above 50
2. GENDER
o Male
o Female
3. How many patients to visit to your hospital at one day?
o 0-100
o 100-200
o 200-300
o 300-400
o More than 400

4. Have you noticed any increase in the patient footfall after

conducting any promotional activities?
o Yes
o No

5.What type of marketing activities you follow?

o Extensive advertising in electronics and print media
o Conducting and participating in seminars
o Prepaid health care services
o Attending and organizing special health camps
o All
o other

6. Which medium of advertising do you use?

 o Advertisement in print media
o Advertisement in electronic media
o Wall Posters
o Advertisements through hoardings
o Social activity
o All
o other

7. Do you organize Health check-up camp?

o Yes
o No

If yes then how frequent you organize health check-up camp?

o 1-3 month
o 3-6 month
o 6-12 month
o More than 1 year

8. What are the sales promotion activities that you undertake?

o Executive Health Check-up
o medi-card
o Insurance Schemes
o Health Card
o Discount on Medi-card
o Charity
o All
o Other

9. Do you provide services related to various government

schemes?
 o Yes
o No
o Sometimes
o Never

10. Do you take service feedback regarding from your patient?

o Yes
o No

If yes, what are the modes of taking service feedback you use?
o Mobile phone
o Letters
o Fax
o E-mail

11. Do you reward patients for frequent use of your services?

o Yes
o No

If yes, by?
o Giving discount
o No fee for certain consultation
o Free medicines
o All
o Others

12. Word of mouth communication helps in to build a chain of

patients?
o Yes
 o No
o Sometimes
o Never

13. Relationship Marketing (Doctor-Doctor) helps in to increase

the patients?
o Yes
o No
o Sometimes
o Never

14. How do you motivate and influence the prospective patients

to seek your services?
o Best quality service
o Sharp pricing and discounting
o Social Service
o Any other

15. Given your opinion with the following;

1. Agree 2. Strongly Agree 3. Disagree 4.Strongly Disagree 5.Undecided

1 2 3 4 5

1. There is a
need for
formal
marketing
department
for
hospitals.
 2. Marketing
research is
essential to
plan for
future
programme
and for
survival.
3. Advertiseme
nt by
hospitals
will improve
the turnover
4. Hospital are
also
marketed
Indirectly
through
existing
patients,oth
er
doctors,dru
ggists and
chemists.

16.How important the following attributes while choosing the

location for hospitals?
1. Most important 2. Very important 3. Important 4.Slightly Important 5. Not
important

1 2 3 4 5
 1. Places
where
competito
rs are
located
2. Proximity
to
transport
facility
3. Thickly
populated
area
4. Easy
accessibilit
y to
patients
17
. How will you rate the following modes of Advertisement?
1. Very good 2. Good 3.Undecided 4.Bad 5. Very bad

1 2 3 4 5

1. Newspaper
And magazines
2. By word of Mouth

3. Electronic media

4. Seminars and conferences

5 .Social services like conducting free

camps,maintenance of parks