Study sets, textbooks, questions
Upgrade to remove ads
HA 4305 Exam Review
Terms in this set (31)
What Is a Market area?
• a geographical area containing the customers of a particular organization for specific goods or services.
• Used more frequently with for-profit organizations.
• "service area" - for not-for-profit organizations.
• Used interchangeably throughout the textbook.
• Units that may exist: political/administrative, statistical, census tracts, and others.
• Educational functions of marketing
Educating patients and the general public
• Providing information and referral sources.
• Enhancing visibility and corporate image.
• Increasing market share by informing patients of new procedures
• Differentiating the organization and its services.
• uses publicity and other nonpaid forms of promotion and information to influence feelings, opinions, or beliefs about an organization and its products.
• carried out by press releases, press conferences, distribution of feature stories to the media, PSAs, and other public-oriented activities
• seeks to present the organization's programs to the community and establish relationships with community organizations.
• health fairs, educational programs.
• emphasizes the organization's commitment to the community and support of local organizations.
Customer relationship management
• business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on customer relationships.
• Applying commercial techniques to influence attitudes, knowledge, and behavior of target audiences related to the improvement of individual and community health status.
o influence the social behaviors for the benefit of the target audience and general society (not for the benefit of the marketing organization).
Levels of marketing
• Mass marketing
• Target marketing
The four p's of marketing
• Product - what healthcare providers are marketing.
• Price - the amount charged for a product/service.
o additional healthcare implications involved also.
• Place - the manner in which goods/services are distributed.
o not simply location.
• Promotion - any way of informing the marketplace that the organization has developed a response to meet its needs.
o again, not simply advertising.
o publicity, advertising, personal selling (examples).
The three P's for Healthcare Services Marketing
• Packaging - how the product/service appears from the outside.
• Positioning - market position.
• People - think of those within and outside of the organization.
Healthcare organizations and marketing
• Ethical and regulatory (legal) considerations.
o Incentives typically used often by other industries are not permitted in healthcare (Stark and Anti-Kickback statutes).
• Spend largest share of their budget on marketing
• Risky and competitive.
o R&D continues to remain very costly.
o Liability is growing.
o Limited patent timeframes.
o Ongoing shift from invasive procedures to drugs.
• Growing liabilities of the drug companies
• Saw a shift in the 90s toward direct-to-consumer marketing
Health insurance companies
• Group plans were initially the most common.
• Individual plans are growing in popularity.
• Medicare Advantage and Medicaid Managed Care has only increased private insurance marketing efforts.
• Some interesting marketing implications:
o Health insurance exchange standardizes the packaging of health plans offered.
o Can no longer state, "We will accept all applicants to our plan."
o Analysis is thoroughly conducted by employers/other stakeholders to ensure plan effectiveness.
• ACA has a big influence on insurance coverage (individual mandate)
o any activities or materials that act as a direct inducement to customers by offering added value to a product.
o health fairs and trade shows, exhibits, demonstrations, contests and games, premiums and gifts, rebates, low-interest financing, and trade-in allowances.
Functions of marketing
• Enterprise-wide functions (WIDE FOCUS):
• Operational functions (NARROW FOCUS):
Enterprise-wide functions (WIDE FOCUS):
o conceptualizing the market.
o determining strategic direction.
o supporting business goals.
o establishing a reputation.
Operational functions (NARROW FOCUS):
o performing marketing research.
o developing a marketing plan.
o coordinating enterprise-wide promotional efforts.
o developing relationships.
o creating a marketing organization (in the DNA).
• Health risk
• Usage level
• Payer category
• Benefits sought
Common service lines
• Women's services.
• Cancer services.
• Any person (or entity) with the potential to consume a good or service.
o Enrollee (participant in a health plan)
o Patients (end-user of a product/service)
o Clients (often the same as a patient)
o Customers (internal and external)
• Initially you were not a potential healthcare consumer until you decided to seek care.
o Can you think of any new, realized healthcare consumers besides the ailing patient?
• Healthcare consumers are different from other consumers in that their purchase decisions may be mediated by gatekeepers.
• Evaluating quality using the services cape and physical evidence.
Steps in consumer decision making
1. Problem recognition
2. Information search
3. Initial awareness
4. Knowledge emergence
5. Alternative evaluation
6. Contract assessment
7. Preference assignment
8. Purchase decision
9. Product usage
10. Post-purchase behavior
Goods vs. services
• Typical business marketing course focuses on the marketing of goods only.
• A true, conceptualization of the final product is required to ensure effective promotion.
• Healthcare good (single time?)
• Healthcare service (on-going?)
• These make up the organization's product mix.
Demand in healthcare
• Conceptualized as the ultimate result of the combined effect of:
o Healthcare needs
o Healthcare wants
o Recommended standards of healthcare
o Healthcare utilization patterns
• The demand for health services is considered "elastic" because demand rises and falls independent of the level of illness.
• Facilities indicators
o Hospital admissions/discharges
o Patient days, ALOS
• Personnel indicators
o Physician office visits
• Other indicators
o Volume of services
o Drug utilization
• Healthcare needs
• Utilization does not necessarily reflect the true need within a population, since people who need services are not able to receive them
• "de facto" strategy - in practice or actuality, but not officially established.
o Therefore, a strategy does exist for the organization.
o Emergent strategy - one that develops from patterns, often not guided/established by senior management.
Frontal attack strategy
The Promotional mix
• Promotions - techniques used to communicate with customers/potential customers for purposes of promoting an idea, organization, or a product.
• Promotional mix - the combination of techniques constituting a given promotional strategy.
o Public relations
o Personal selling
o Sales promotion
o Direct marketing
• Integrated marketing example- promotional piece that can be used on radio, television, and a website
Relationship marketing approaches
• Programmatic approach - requires the organization to rethink all of its services currently offered, in the context of the new marketing reality.
o Direct-to-consumer healthcare marketing
o Business-to-business healthcare marketing
o Internal marketing
Direct-to-consumer healthcare marketing
Healthcare is becoming much more consumer-driven.
Further ability to target healthcare market segments continues to eliminate potential marketing waste.
Business-to-business healthcare marketing
When the consumer/customer is not the patient (directly).
Targeting of corporate (business) customers, rather than individuals (patients).
A service provider's efforts to effectively train and motivate its customer service and support staffs to work as a team.
How customers widen the service performance gap
• Lack of understanding of their roles.
• Not being willing or able to perform their roles.
• No rewards for "good performance."
• Interfering with other customers.
• Incompatible market segments.
o Does this mean that certain market segments are to be avoided (or purposely detracted)?
Other sets by this creator
HA 4305 marketing
Employment Law Final
Public Health Final Exam
Other Quizlet sets
Victoria Downs (Chapters 16, 18, 19, 20, 22, 23, 2…
POLS 2302 Test #2 Terms
Pulmonary Diagnostic Testing
The Missouri Constitution Test Fools