What is a brand?

Brand is an individual identity of a product, which can be used as means to differentiate products of one provider from those of another. American Marketing Association (AMA) defines a brand as “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller and to differentiate them from those of competition.” This means that when providers create a new name, image, symbol or logo they create a brand. Although this is true, creating a brand is much more in addition to this.

For a healthcare provider, the brand creates reputation, awareness, importance and moreover a distinct place in the market. With this, the healthcare brand creates an impression in the minds of the consumers and patients. Brands help in guiding the consumers to shop with confidence. When brands keep their promise and meet the consumers’ expectations, they are successful. The number of customers and their perceptions about a brand, its performance, its features, etc. helps to distinguish a brand from any other product, which is not branded.

Thus, a brand is more than just a product. A brand can have dimensions that differentiate them from another product of the same category. Some brands gain competitive advantage by means of product performance, while some through non-product related ways. By creating identifiable differences between products and by building loyal consumer relationship, healthcare providers can create brand value and convert it into financial gains for their company. For example, a branded group of hospitals.

Importance of Healthcare Brand

Why developing good brands in healthcare is important?

Healthcare industry deals with the basic utility products related to the health and life of the consumers. Healthcare products and services are selected by consumers either on a regular basis or on during an ill-health. For example, patients visit hospitals when they are unwell or on a routine basis for preventive health check-ups. Similarly, they either regularly take health drinks and supplements or take prescription medicines when required. In any of these cases, it is important to understand that healthcare products and services are a delicate part of consumer’s life. While there is an increasing need for healthcare products and services, there also an increasing competition in the healthcare industry. Hence, it is not just healthcare products that consumers and patients want, but it the existence of good brands in healthcare industry that the consumer can benefit from.

Healthcare Brand Advantages and Benefits

Healthcare brands provide many advantages to the consumers. Brands identify the producer of the product, create an impression in the minds of the consumers and allow them to assign responsibility to a particular producer. Healthcare brands help in building bonds with the consumers or patients. With the help of past experiences and the image formed in their minds from marketing communications, consumers find out the brands that satisfy their needs and differentiate them from others. This later on saves their time and money in making any future decisions regarding buying a healthcare product or service. For example, once patients are happy with the service of a particular hospital brand, it creates a lasting impression in their minds. Next time when patients need similar service, they will not think much or search around for options but trust their brand and opt for the same.

Good brands in healthcare can help in reducing risks involved with product decisions. Consumers or patients can identify many risks involved in buying or consuming a healthcare product or service. Some of them are:

• The health product poses a threat to their health or affects mental well-being. For example side effects or any allergies.
• The health product does not meet their expectations.
• The product does not seem to cure the ailment or serve its purpose in spite of using of long. For example less efficacious medicines or products.
• The product is too expensive or not worth the price.
• The product results in any embarrassment in society.

Brands also provide additional benefits to healthcare providers. The brand gives healthcare providers, legal protection for the unique characteristics of their product. Good brands are considered to provide certain level of quality and so have satisfied consumers buying their products regularly. This provides predictability and an assurance of constant demand.