HSA Assignment 2: Competition, Marketing Mix, and Pricing - 95722

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Competition, Marketing Mix and Pricing












Accurately measuring the performance of individuals, departments, projects, and initiatives is a good way to ensure strong, sustainable results in an organization. Performance measures quantitatively tell us something important about services, and the processes that produce them. Measurements are tools to help providers understand, manage, and improve in areas they are lacking. The text states that organizations measure performance to meet multiple internal and external needs and demands. Internally they measure current performance that identifies the strengths and weaknesses of the current process giving insight of areas that needs improvement. When measuring the external performance objectives you are assessing healthcare provider accountability, decision-making, public reporting, organizational evaluation and supporting national improvement goals and activities.


The framework for measurement is support by leadership commitment, staff understanding and participation, partnership with key stakeholders, performance improvement oversight, use of a performance improvement method, development of performance improvement protocol, the identification and response to performance improvement resources, recognition and acknowledgement of performance improvement efforts and continuous assessment of improvement efforts. Important here to note is that healthcare marketing is significantly different consumer goods marketing because of several factors.




Determine the key characteristics of the users of the products and/or services of the health care provider you selected.


The customer or consumer in the case of the healthcare industry is the patient, who unlike in the consumer goods industry, is not always right and does not always know about their needs and wants. Therefore, the traditional rules of supply and demand do not apply in the healthcare industry (Blair & Boal, 1991). The demand curve suggests that a reduction in price is likely to increase demand, but in health care industry, several companies that have decreased price in the past have found themselves with lower demand as consumers saw the same with skepticism and perceived it to an indication of a comprise on quality.


When consumer goods marketers enjoy a considerable degree of relative freedom in devising their advertising, promotional, pricing and other marketing strategies, healthcare providers find themselves subjected to several laws and regulations limiting their choices and strategies (Kotler, et al,2011). For example, when many consumer goods marketers have the liberty to pursue any pricing strategy from market skimming, value based, cost plus, market penetration, economy, premium and others; health care marketers have to price their offerings to fall within a specified bracket (Gray & Christiansen, 2008).

In case of consumer goods, the customer, in the majority of the cases pays upfront or a