BACHELOR OF SCIENCE IN MEDICAL

TECHNOLOGY:
LABORATORY MANAGEMENT
COURSE MODULE COURSE UNIT WEEK
3 11 11

Financial Management

 Read course and unit objectives

 Read study guide
 Read required learning resources; refer to unit
terminologies for jargons
 Proactively participate in discussions
 Participate in weekly discussion board (Canvas)
 Answer and submit course unit tasks

At the end of the unit, the student is able to:

1. Identify completely the components and requirements for budget preparation.
2. Understand correctly the laboratory budgeting process.
3. Define thoroughly the marketing philosophy and marketing environment involved
in the field of medical laboratory science.
4. Prepare comprehensively a basic budget for the clinical laboratory.

Affective:
1. Inculcate importance of a reward system in organizations
 2. Listen attentively during online discussions
3. Demonstrate tact and respect when challenging other people’s opinions and ideas
4. Accept comments and reactions of classmates on one’s opinions openly and graciously.

Psychomotor:
1. Participate actively during online discussions
2. Confidently express personal opinion and thoughts in discussion boards and online chats.

Garcia, Lynne S (2014), Clinical Laboratory Management, 2nd Edition, American Society for
Microbiology (pages 565-573)
(*10 points will be coming from this reading in the assessment task exam)

Financial Management
1. Budgeting
2. Cost Finding
3. Job Costing
4. Marketing Philosophy
5. The Laboratory Customer
6. Marketing Plan

Budgeting
 According to Henry Mintzberg, the roles of leaders are spokesperson,
budgetary, or resource allocator, figurehead, decision maker and liaison.

2 Approaches in Budget
a. Centralized – fully controlled by the leader
b. Decentralized – there is participation of the lower level

TYPES OF BUDGET
a. Fix-ceiling Budget – uppermost spending limits set by the organization
b. Open-ended Budget – dangerous type because it has no specific amount
declared
c. Flexible Budget – one can adjust
d. Sunset Budget – self destructing and cessation budget
e. Zero-based Budget – start from nothing
f. Contingency Budget – used during emergency

OPERATIONAL BUDGET
• deals with the process of planning for the laboratory as an ongoing business
concern accounting for everyday need and

TYPES OF OPERATIONAL BUDGET

1. Capital Budget
2. Flexible Budget
3. Zero-based Budget

OPERATIONAL BUDGET PREPARATION

1. Time Frame
2. Forecasting stage
3. Scheduling Stage
4. Synthesis of Information

COST FINDING
 COST ACCOUNTING – is to provide the manager with the information to
operate the business
 MANAGERIAL ACCOUNTING – is another name given to this branch of
accounting because its emphasis on analyzing and providing operational
information

JOB COSTING
 The important determinant in forecasting the staffing needs for the budget
year is the projected volume of work.
 The number of labor hours needed can be projected in ratios that calculate the
tests performed per paid hours and/or worked hours

THE MARKETING PHILOSOPHY

*Marketing
 the strategic process of attracting and maintaining a customer base.
 tries to influence the customer to purchase
*Public Relation
 communication tool, to influence public attitudes towards the organization

PARTS OF MARKETING PHILOSOPHY

 Why does it exist?
  What are its plans for the future?
 How does it attract customers?

THE MARKETING MANAGEMENT PHILOSOPHY

1. Production Concept
• demand for a product is greater than the supply
• is product oriented. It implies a good product will sell itself
• to increase profit, focus on production efficiencies

2. Selling concept
• Emphasis is needed to sell the product to increase profit

3. Marketing Concept
 supply for a product is greater than demand
 creating intense competition among supplier

4. Social marketing Concept

 adds to the marketing concept the idea that the company should contribute to
the betterment of society as a whole

THE LABORATORY CUSTOMER

 Patient, physician, parent, employer, insurance, company, government agency
 The laboratory manager should know the factors that influence the customer’s
decision to go to a particular laboratory.

4 RULES IN MARKETING
Rule 1: Provide the best offering in the marketplace by excelling in a specific
dimension of value.
Rule 2: Maintain threshold standards on other dimensions value
Rule 3: Dominate your market by improving value year after year
Rule 4: Build a well-tuned operating model, dedicated to delivering unmatched
value

4 P’S OF MARKETING
*Marketing variables
• factors that can be manipulated to attract customers
*Product Differentiation
• factors that make a product or service attractive to customers

The marketing variables that can attract and retain customers

1. PRODUCT
2. PRICE
3. PLACE
4. PROMOTION
PROMOTIONAL TOOLS
1. Advertisement – paid commercial presentations to promote the products and
services
ex. Newspaper, journals, brochures, flyers
2. Sales promotion – short term purchase incentives
ex. Discounts, freebies
3. Personal selling – selling through personal contact
ex. Through sales representatives
4. Publicity – non-commercial informational presentations
ex. News release, seminar
5. People – Represent the business
6. Physical environment – The ambience, mood, or tone of the environment
7. Process – How do people obtain your product

MARKETING PLAN
• The formal strategy to identify, attract, and maintain customers.
• Like all plans, the steps include needs awareness, market research, analysis of
alternative solutions, action plan, and implementation.

MARKET RESEARCH
• It is the process of systematically gathering, recording, and analyzing data and
information about customers, competitors, and market uses:
a. To help create a marketing plan.
b. To help launch a new product or service, expand into the new markets.
c. To determine which portion of the population will purchase a product,
based on variables like age, gender, location, and income level.

MARKETING PROPOSAL FORMAT

I. PURPOSE OF THE PROPOSAL
II. MARKET OVERVIEW
III. SWOT ANALYSIS
IV. OPPURTUNITIES
V. APPROVAL REQUEST FOR IMPLEMENTATION OF PLAN

Budgeting- It is the planning document used by as organization that forecast both the relationship
between funds and expenses
Arnold, J.R. Tony (2008), Introduction to Materials Management, 6th Edition

- Create a strategic marketing plan for a free standing laboratory.

-Anwer the following by writing an essay of not less than 300 words in each question.
1. What is financial management?
2. As a student, how do you allocate your daily allowance?
3. What are your biggest financial priorities?

Arnold, J.R. Tony (2008), Introduction to Materials Management, 6th

Edition

Garcia, Lynne S (2014), Clinical Laboratory Management, 2nd

Edition, American Society for Microbiology

Daft, Richard L., Management, 9th Edition