A major academic medical center such as the University of Iowa
In forward integration, the manufacturer of a product comes in direct contact with the consumer either as a wholesaler or in other times as the wholesaler as well as the retailer of the manufactured product. In backward integration, the manufacturer is involved in acquiring and production of the raw materials that are required in the manufacturing process (Berkowitz, 2006). Health care facilities like the University of Iowa, being a major academic medical center, have various intermediaries including the community hospital, the specialist, and the primary care physician all having being involved in the diagnosis, intervention, and care of a patient before they are referred to the academic medical center. They use the backward integration.
A five-person general surgery group
Since the surgery group is in direct contact with the patient without any intermediaries, they, therefore, develop a vertical system by forwarding integration.
Manufacture of the durable medical equipment
They develop a vertical marketing system by backward integration due to several intermediaries found between the manufacturer and the patient.
The power is observed when one channel member receives financial gains from the other source of power. Usually from manufacturers who reward hardworking employees with bonuses at the end of a fiscal year (Rosenbloom, 2011).
This is the power of one channel member over another channel member based on the expectation of punishment if the channel members fail to achieve specific goals. However, it is less effective in the long run (Rosenbloom, 2011).
The power exists when one channel member views their goals to be allied with another channel member. Both channel members feel like they are on the same page and the success of one is also the success of the other (Rosenbloom, 2011).
The knowledge or the perception of it which one channel member attributes to the other at any given time. One channel member uses its superior expertise to influence the other channel member (Rosenbloom, 2011).
These are enhancements a company makes to their products or services before offering them to consumers to give them a competitive edge over their competitors. Examples in the healthcare field of companies using value-added positioning are, Janssen Connect and their campaign of improving access to depot antipsychotic drugs and Astra Zeneca who are managing COPD outcomes (Ampuero and Vila, 2006).
Product line positioning
This is a marketing technique whose primary goal is to position a product or a service in the best possible way to consumers to ensure that the product or service is better placed in the market than the other products. The Howard County General Hospital in collaboration with the John Hopkins Medicine has positioned the services offered with the goal of providing equitable healthcare to the region's entire population. It being the only healthcare facility in the region gives it an edge over its competitors. The Fresenius Medical Care has also positioned itself better with its drive in providing full-scale integration of products and services (Ampuero and Vila, 2006).
The strategy involves a customer actively looking for a product and the manufacturer of the product placing orders for stock due to the direct consumer demand. The policy requires the producer to motivate consumers to seek the product actively. Examples of such an approach include; sales promotions and discounts, word of mouth referrals, advertising on all forms of mass media and also establishing customer relations (Rosenbloom, 2011).
The strategy involves taking the product directly to the consumer through any means necessary ensuring that the customer is acutely aware of the product to a point where they want to purchase it. Manufacturers may be required to use middlemen to persuade retailers to stock their products. Examples of such a strategy include; setting up trade shows, direct selling of product to consumers in showrooms, establishing an efficient supply chain allowing retailers a suitable supply and also using a packaging design that encourages purchasing (Rosenbloom, 2011).
It involves one-on-one communication between buyers and sellers of products ensuring the direct relationship between manufacturer and potential customers (Mukherjee, 2015). An example of personal selling is the Dana-Farber Brigham and Women's Cancer Centre with their slogan "You Have Us" encouraging cancer patients to rely on the hospital for anything.
A good advertising campaign has a far-reaching grasp on potential customers. This could be done through the use of billboards; television ads, newspaper add or even social media (Mukherjee, 2015). An example is the Synod Health which markets biopharmaceuticals.
It is the most common, and its primary purpose is to stimulate purchases by informing potential customers of the new products in the market (Mukherjee, 2015). Carillion Clinic is an excellent example of self-promotion with its slogan #YESMAMM to create breast awareness.
Organizations can influence a target audience and create a favorable image of the company (Mukherjee, 2015). An example of public relations is Banner Health with its infographics for the digital marketing audience.
Health organizations like pharmaceutical companies prefer to use e-coupons to avoid the hectic job of manually looking for samples of medication which could be strenuous and time-consuming. Examples of these coupons include; prescription drug coupons like the Lactaid coupons, vitamin coupons like Nature Made rewards program coupons and lastly the diapers and baby supply coupons like the plum organics baby food and product savings club (Gonzalez, 2016).
The failure of the advertisement and directory could have been brought about by the fact that the chair of the committee mandated to draft it was unqualified seeing that he was a cardiologist and an English major. Future drafts should be written by qualified personnel preferably a primary care physician. The task force should also apply the promotional mix components to launch an effective advertisement campaign.
Considering the target audience is important. Will the advert be visible to consumers the company is targeting? The director should also consider the cost of an advertisement in comparison to other media like digital media, will it be better regarding the cost to advertise on social media or create ads on the television for the hospital. Type and size of information should also be considered as the cost of advertising in the newspaper increases with size.
Ampuero, O. and Vila, N. (2016)." Consumer Perceptions of Product Packaging". Journal of Consumer Marketing, vol 23 issue 2, pp 100-112. Retrieved from https://doi.org/10.1108107363760610655032
Berkowitz, E.N. (2006). Essentials of Health Care Marketing. Sudbury, Mass: Jones and Barlett Publishers.
Gonzales, E. (2016). "Exploring the Effect of Coupon Proneness and Redemption Efforts on Mobile Coupon Redemption Intentions." Business Department, Florida National University, vol 8 issue 6. Retrieved from doi.10.5539/ijms.v8n6pl
Mukherjee, A. (2015). "Role of Communications in Healthcare Marketing." International Journal of Pharmaceutical and Healthcare Marketing, vol 9 issue 4. Retrieved from https://doi.org/10.1108/TJPHm-09-2015-0046
Rosenbloom, B. (2011). Marketing Channels. Thomson, Southwestern: Cengage Publishers
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