Healthcare Marketing 2nd Exam Topics

1.Introduction
! Evolution of Marketing Concepts 1.PRODUCT ERA After industrial Revolution, large scale production (compared with manual production) Up in price ! e.g. watch, car ! ! (Rolls Royce) Down in demand Demand > Supply Firms concentrated their efforts on their products. 2.SALES ERA Begun in the 1920s, Supply > Demand ! • Firms go out and persuade people to buy their products. ! • Businesses moved from a product orientation to a selling orientation. ! • Firms expanded its sales forces Main concern:! ! ! The product being sold rather than the benefits customers wanted or received. ! The mindset of some firms remain in this era. 3.MARKETING ERA Begun in the 1950s: ! firms realized that sale has not predominantly dependent on an ! aggressive sales force, but rather on a customer's decision to purchase a product. ! What a customer thinks s/he is buying - the perceived value - determines ! ! what a business is ! ! what it produces, and ! ! whether or not it will prosper. ! "Produce what you should sell," rather than "sell what you can produce." ! "To sell Jack Jones what Jack Jones buys, you have to see Jack Jones through Jack Jones' eyes." Philosophy:! the social and economic justification for an organization's existence is the satisfaction of customer wants Not all firms have progressed to this era. ! e.g. U.S. automakers in the 1990s 4.PERSUASION ERA [1] Since the 1980s, with the help of new communication knowledge and technology ! psychology ! ! Art psychology

goods. Gulf War & the story of “Baby ! incubators in Kuwaiti hospitals” “Packaging” Perception is everything Framing Major differences between marketing and sales SELLING Philosophy Focus Sell what you can produce The needs of the SELLER Starts with Products developed by the organization/firm MARKETING Produce what you should sell The needs of the BUYER Starts by identifying the BENEFITS particular clientele seek and develops products on that basis Starting Point ! Philosophy and principles of marketing ! "Marketing is the process of planning and executing the conception." . promotion. pricing.g. and services to create exchanges that satisfy individual and organizational objectives.Healthcare Marketing 2nd Exam Topics ! ! ! ! ! ! ! Music psychology ! Consumer psychology ! Political psychology consumer behavior behavior decision theory cognitive science It follows the same philosophy as the Sales Era Firms can induce wants/demand for goods & services Also used in political campaign ! ! e. and distribution of ideas.

PLACE (Distribution) 4. policies] 2. competitors ! Internal recognition of performance gaps ! ! performance gaps . laws. focus groups.Healthcare Marketing 2nd Exam Topics 4Pʼs 1.PROMOTION ! Personal selling ! Publicity ! Advertising ! Incentives Benefits sought ! petroleum -> energy ! floating resort -> cruise ship ! cable -> communication ! railroad -> Railroad ! Health Org.PRODUCT ! goods ! services ! ideas [social behavior. -> Health ! Tin Can -> packaging ! Product Strategy and Development of New Products ! Need for developing new products ! Necessary for an agency to remain relevant ! ! Needs change ! ! compensation ! ! technology change ! ! new regulation The meaning of a “New Product” in marketing ! offered for the first time ! completely new ! mods of programs ! existing programs offered to new clients ! existing products with new apps ! ! baking soda (baking and demoisturizing & deodorizer) ! internal program changes that improve cost efficiency or service effectiveness Source of stimulation for new product ideas ! Reaction to External Pressure ! ! ex. peers.PRICE 3.

Screening ! ! eliminate unrealistic alternatives ! 2.Healthcare Marketing 2nd Exam Topics Organizational climates that are important to facilitate the development of new products ! Structure ! ! Organic ! ! Openness ! ! Frequent Interaction / communication ! Decentralized ! ! Everyone can make decisions ! Different perspective as opposed to similar perspective ! ! DIVERSITY ! Organizational Slack Organizational slack ! Uncommitted ! ! Staff time ! ! Expertise ! ! Money ! ! ! purchase costly innovations ! ! ! absorb failures ! ! Other Resources Process of developing new products ! Organization for new program development ! ! Life Cycle is shortening ! ! New program failure is high ! ! lead time from initial suggestion will be fairly substantial ! Generating New Ideas ! ! ideas from consumers ! ! ! focus group ! ! ! customer feedback ! ! ! 777 Boeing ! ! ! ! cargo door was too high ! ! Ideas from other suppliers of similar services ! ! ! be aware of new prgms that have been introʼed by other suppliers ! ! Ideas from agency personnel ! ! ! Four steps of evaluation new product ideas ! 1. Concept Development ! ! ideas are developed further from a rough idea to a more elaborate product ! .

Testing ! Exposing the program to small number of clients ! ! ohio is perfect mix of DIVERSITY 5. bear the cost of that service ! equity ! ! horizontal ! ! ! those with equal income share same burden ! ! vertical ! ! ! those with more income have higher burden ! .Of . Launching ! Go Live! Factors affecting the diffusion of new products ! Diffusion of product is the rate at which a product is adopted by the market ! Perceived attributes of new product . Feasibility ! submit the proposed product to a more rigorous exam of the costs ! ! Assessment of demand ! ! need for new capitol ! ! operational costs ! ! income likely to accrue from users 4.its what the buying perceives of the product not the selling agency.Healthcare Marketing 2nd Exam Topics ! ! ! ! ! ! ! ! ! ! ! 3.Pocket Payments ! Time ! Embarrassment ! Effort Objectives of pricing ! income redistribution ! ! Subsidized services ! ! Rebates for low income ! ! sliding scale fees ! ! those who benefit from service. ! ! Complexity ! ! Compatibility ! ! Relative Advantage ! ! Communicability ! ! Trial-ability Price Strategy Costs of Health Care to consumers & Direct / Indirect costs to consumers ! Monetary ! ! Fees ! ! Cost Sharing ! ! Out .

quantitiy discount. car rental. cost of more water or electricity ! Incentives ! ! ex.Healthcare Marketing 2nd Exam Topics ! ! ! ! ! efficiency Revenue Gen. concert. ball game. airline. discount for new customers . hotels ! Time ! ! ex. free new services. market share profit maximization health outcome Three types of goods ! Private Goods ! ! Exclusion of benefits by nonusers ! ! No external effects on consumption or production ! ! ! passport services ! ! ! inspection of private water ! Merit Goods ! ! Has external effects of consumption ! ! Exclusion of benefits by non users ! ! ! higher ed ! ! ! urban transit ! ! ! immunization ! Public Goods ! ! Has external effects ! ! no feasible ways of excluding any non paying people ! ! ! national defense ! ! ! national healthcare ! ! ! Negative price ! Agency / Program pays the users for using the service Price Differentials ! Participant ! ! children ! ! elderly ! ! economically disadvantaged ! Place ! ! ex. drugs. telephone. hotel ! Quantity of Use ! ! ex. airlines.

Ex. ! Bundled Pricing ! ! selling things together for one price ! ! ! Microsoft Office Example ! Going-Rate Pricing ! ! Setting prices relative to the prevailing market price ! Discounts ! ! volume ! ! ! if you donʼt understand volume discounts please enroll in BA101 this winter term. Flexible Pricing ! ! Flexible pricing has to do with being able to negotiate prices or have the ability to have respective ! Prestige Pricing ! ! products are deliberately priced at a high level to connote value ! Leader Pricing ! ! attractively pricing an item in the product line and aggressively promoting it to encourage consumers.) ! ! Airlines: 1st class. 2nd class.Healthcare Marketing 2nd Exam Topics Pricing Strategies ! ! Price Lining ! ! This process gives the impression that each product is very different. multiple policies) ! ! seasonal ! ! ! duh. ! Dynamic Pricing ! ! Internet Shopping ! ! ! Price varies according to the shoppers willingness to pay (tracked with cookies) ! Price Zoning ! ! Gasoline in Oregon (price fixing pretty much) ! Target Pricing ! ! sets price to provide a targeted ROI ! Demand-Minus Pricing ! ! what the market is willing to pay and mark backwards . ! ! Odd Pricing: ! ? Off pricing ? ! One Price vs. the CRN is 35376 ! ! functional ! ! ! auto insurance (good grades. and Econ class.

Healthcare Marketing 2nd Exam Topics Distribution ! Direct and Indirect Channels! ! ! Direct ! ! ! Producer directly to consumer ! ! Indirect ! ! ! Intermediaries ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Producer -> Wholesaler -> Retailer -> Consumer Functions of Distribution channel ! Place ! ! place of place. accessibility is everything ! Time ! ! number of middle man ! Possession ! ! designated health care credit cards ! Form ! ! middle man changes the product for the customer ! ! ! department store alters a suit for its customers Channel management ! Degree of Distribution ! ! organization must decide how available the product will be to the ! ! consumer ! ! are middle men necessary ! ! ! Gaining Channel Cooperation! ! whether any middle men who will be involved in the service will ! cooperate in how the service is delivered ! Dealing with Conflict ! ! Hospital administration <-> Medical Staff ! ! HMO <-> physicians ! ! Health Program Agency <-> Program Worker ! Intensity Distribution ! Intensive! ! ! ! The product is available in a large number of outlets ! Exclusive! ! ! ! The product is offered in a highly restricted number of outlets ! Selective ! ! Fewer retailers than the intensive approach .

How they perceive others will interpret their behavior ! 3..g. ! e. Communication and Adversiting ! Health belief model! ! ! Focuses on perceived susceptibility ! ! Perceived severity ! ! Consequence of taking action ! ! Provides cues to action ! ! Exclusively applies to healthcare marketing ! ! ! ! ! ! ! ! ! ! ! ! Symbolic meaning ! 1. mcdonalds Chapter 8 . guarantees of satisfaction or your money back cancellation at any ! time Communication challenges ! Creating. the sensitivity they have to such interpretations Risk reduction model ! Reduce the risk that people perceive to be associated with a particular ! choice. Iʼm tired and canʼt do this anymore.do yourself. or replacing mental linkages ! ! Honda-acura .Healthcare Marketing 2nd Exam Topics ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Vertical and horizontal integration in health care industry ! Corporate Integration ! ! combines both the production and distribution of a product/service ! ! under one corporate ownership ! ! ! Levi -> Manufacturing and Retailing ! ! ! ! ! ! ! ! ! ! ! ! ! Administered Integration ! Coordination between members of the distribution channel without ! common ownership Contractual Integration ! Cooperatives ! ! agreements between members of the distibution channel ! ! who exist on the same level ! Franchises ! ! figure it out ! ! ! ex. reinforce. What people perceive a specific behavior indicates about themselves ! 2.

Healthcare Marketing 2nd Exam Topics ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Toyota.lexus Increase the likelihood that both the service or provider in question and the linked facts or feelings will be recalled to mind in the appropriate circumstances. To ensure that the facts or feelings linked to a given provider or service are relevant to the person making the choice Making the right linkage available at the right time. .

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