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HC Marketing > HC Mktg Pre Week 1 > Flashcards

HC Mktg Pre Week 1 Flashcards

0
Q

What are the 4 P’s of marketing strategy?

A

Product
Price
Place
Promotion

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1
Q

Marketing

A

Execution of the conception, pricing, promotion, and distribution of the goods, ideas and services

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2
Q

The mix of the four p’s, controllable variables that business use to pursue a desired level of sales is referred to as

A

Marketing mix

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3
Q

Def product

A

Good, services or ideas are offered by a firm, also healthcare services

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4
Q

Price

A

Is what consumers are willing to pay for a service

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5
Q

Place

A

Represents the manner in which goods or services are distributed by a firm for use by consumers

May include location or the hours a medical service can be accessed

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6
Q

Promotion

A

Way of informing the marketplace that the org has developed a response to meet its needs and that exchange should be consummated

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7
Q

Need

A

A condition in which there is a deficiency of something, or one requiring relief

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8
Q

Want

A

Wish or desire for something

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9
Q

Marketing orientation has 5 distinct elements:

A
  1. Customer orientation
  2. Competitor orientation
  3. Inter functional coordination
  4. Long term focus
    5 profitability
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10
Q

Customer orientation -

A

Having a sufficient understanding of the target buyers to be able to create superior value for them continuously

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11
Q

Competitor orientation -

A

recognizing competitors (and potential competitors) strengths, weaknesses, and strategies

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12
Q

Inter functional coordination -

A

Coordinating and deploying company resources in a manner that focuses on creating value for the customer

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13
Q

Long term focus -

A

Adopting a perspective that includes a continuos search for ways to add value by making appropriate business investments

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14
Q

Profitability -

A

Earning revenues sufficient to cover long term expenses and satisfy key constituencies

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15
Q

Differential advantage

A

Is the incremental benefits of a product relative to competing products that are important to the buyer and perceived by the buyer.

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16
Q

Non market driven approach

A

Planning i tank to external, members inside organization try to foretell or dictate at the market wants and how the service should be configured to meet those wants

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17
Q

Market driven approach

A

Follows ext all to internal approach. 1st assessment of what the market wants, then the organizations response.

Market driven planning does not guarantees success but it does minimize the probability of failure

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18
Q

Stakeholders

A

Any group with which the company has, or wants to develop, a relationship. Can be customers, patients, physicians, referring physicians, social workers, managed care providers, suppliers, laboratory, etc.

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19
Q

Environment

A

The regulatory, social, technological, economic, and competitive factors to which the organization use be sensitive when developing a strategy.

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20
Q

Regulatory factors

A

Legal, stark law, physician referral example

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21
Q

Social forces

A

Demographic, cultural trends that require sensitivity

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22
Q

Technological factors

A

Advances such as invention of new vaccine to cure disease

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23
Q

Economic factors

A

Changes in income distribution, fiscal conditions, such as borrowing rates that determine organization investment plans

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24
Q

Competitive forces

A

Final uncontrollable element in any marketing plan. Strategies and programs must be developed in light of the restraint of competition and should always be considered and recognized as existing in the marketplace.

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25
Q

Society

A

Represents all individuals, groups, businesses, and other entities that affect, are related to, or derive benefit from the health care organization. All programs and strategies should be developed within societal context.

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26
Q

Organizations that plan for and/or regulate primary and secondary providers

A
  • federally regulating agencies, health system agencies (HSAs), dept of health and human services (DHHS), health care financing agency (HCFA)
  • state regulating agencies, public health departments, state planning agency (CON)
  • voluntary regulating groups
  • joint commission on accreditation of healthcare organizations (JACHO)
  • other accrediting agencies
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27
Q

Primary providers (org that provide health services)

A
  • hospitals voluntary (Barnes hospital), governmental (VA Hospitals), investor owned (Humana, AMI, NME)
  • state public health departments
  • long term care facilities, skilled nursing facilities (Beverly Enterprises)
  • intermediate care facilities
  • HMOs and IPAs (Care America)
  • ambulatory care facilities (nationals rehab services)
  • hospices
  • physician offices
  • home health care institution (Upjohn healthcare services)
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28
Q

Secondary provider organizations

Org that provide resources

A
  • educational institutions, medical schools (John Hopkins), nursing schools, health administration programs
  • org that pay for care (3rd party payers), govt (Medicare), ins co (BCBS), social org (Shriners)
  • pharmaceutical and medical supply, drug distributors (McKesson), drug & research (Merck), medical products (Johnson & Johnson)
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29
Q

Org that represent primary and secondary providers

A

AMA, AHA, state medical assoc, indiv professional associations

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30
Q

Individuals and patients (consumers)

A

Independent physicians, nurses, allied health professionals, technicians, and patients

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31
Q

Target market

A

Group of customers whom the org wishes to attract

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32
Q

In selecting a target market, the ultimate question is…

A

Why is one better or more desirable than another.

Ex- ⬇intense competition, ⬆attractiveness. Most growth potential, environmental changes, favorable reimbursement. Must be a match between the organizations mission and the resources required to meet the target market requirements.

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33
Q

Product oriented org structure

A

The responsibility, authority, and accountability rest with the product line manager. Nursing, Rx, lab, other dept coord svcs across and in support of the product lines.

In true product-oriented org each distinct product or related set of. Products has its own marketing org.

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34
Q

Strategic business units

A

Businesses operated as separate profit centers within a large org

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35
Q

Product line mgmt has 2 major advantages in HC org

A

1 someone responsible for all aspects of the product line helps to refine the service area and meet needs more easily

2 packaging related svcs into product lines helps contribute to continuous, rather than sporadic planning.

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36
Q

Disadvantage of product mgmt

A

Is that the product mgr has no direct control over many operational details, must negotiate for sales force time or marketing research resources etc. in many HC org the product mgr acts as the salesperson for the program

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37
Q

The most common:

Market-oriented org

A

In which each distinct major market has its own marketing org. Am HC org might design mktg around its major consumer groups (referral phys, corp, mgd care buyers, and other referral sources).

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38
Q

4 prerequisites of successful marketing

A 
1 - pressure to be market-oriented
2 - capacity to be market-oriented
3 - a clear shared vision of the market
4 - actionable first steps
= ability to be more market driven
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39
Q

Market oriented

A

Goal is to focus on solving customer problems rather than on products and services

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40
Q

Clinical Microsystems approach

A

Developed by Nelson, Batalden and Godfrey.

Patient is the center of the process used to deliver or structure the care, in mktg, the core is mtg the needs of the customer.

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41
Q

Traditional industry structure

A

Is physician centered, satisfaction driven

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42
Q

5 largest MCOs

A

WellPoint, the blues, Cigna, Aetna and united.

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43
Q

Health savings accounts

A

These plans are designed to force people to make economic trade offs between consuming more health care services with the opportunity to accumulate tax free dollars that are unspent i. An account designated for HC. ⬆ Smart shoppers.

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44
Q

Accountable care system (ACS) or accountable care org (ACO)

A

An entity that can implement organized processes for improving quality and controlling the costs if care and can also then be held accountable for these care results and the resultant costs associated with the outcomes.

Inpt, outpt, rehab, ltc, palliative care are all resp of ACS.

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45
Q

Mktg is a process that involves planning and execution of the four mktg mix variables…

A
  1. Product
  2. Price
  3. Place and
  4. Promotion
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46
Q

Effective mktg for HC org involves

A

The recognition of multiple consumers or markets that often have a diverse array of needs and wants

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47
Q

A non-market based approach to planning is one in which the conception of the service begins

A

Internally within the organization. Mktg based planning is external-to-internal process.

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48
Q

The strategic mktg process must consider the

A

Broad macro enviro consisting of stakeholders, enviro factors, and society at large.

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49
Q

HC mktg planning requires

A

Identification of the target mkt, which may differ from the org’s present customer base

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50
Q

In a product-oriented org services are

A

Managed as separate profit centers, or strategic business units.

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51
Q

In a market-oriented org structure

A

Major markets or customer groups are the focus

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52
Q

Marketing success has four pre-requisites:

A
  1. Pressure
  2. Capacity
  3. vision and
  4. Actionable steps
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53
Q

The mktg paradigm is shifting from a transactional focus to

A

A customer-retention strategy

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54
Q

The structure if the health care industry is evolving. There are three main customers…

A
  1. Corporations 2. MCOs and with the new health insurance options like health savings accounts, the 3. Accountable health systems.
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55
Q

Strategic planning

A

Process that describes the direction an org will pursue within its chose environment and guides the allocation of resources and efforts

56
Q

To develop strategic plan you must first

A
  1. Define your mission
  2. Conduct situational assessment of threats and opportunities to which the org can respond in light of its mission
  3. Assess its own distinctive competencies
  4. Establish a set of priorities based on org objectives that align with the mission.
57
Q

Organizational mission

A

Refers to the org fundamental purpose for existing, defining who the org is, its values, and the customers it wishes to serve.

58
Q

Mission statements

A

Set the tone and Provide the mgmt broad set of directions for how it should develop further business strategies.

59
Q

Effective mission statement should contain

A
  1. Basic product, service, primary market, and technology to be used in delivering the product or service
  2. Org goals, such as growth, profitability, stability, or survival, stated in a strategic sense.
  3. Org philosophy - the code of behavior that guides the org’s operation.
  4. Org self-concept - a self-evaluation based on a realistic determination of its strengths and weaknesses.
  5. Public image - how those outside the org view the particular entity,
60
Q

Situational assessment

A

Analysis of org environment and the org itself. Aka SWOT analysis strengths, weaknesses, opportunities and threats.

61
Q

In reviewing the environment org must ask

A
  1. What are the changes and trends?
  2. How will these changes affect the org’s business?
  3. What opportunities do these changes present?
62
Q

Barriers to entry

A

Conditions that a company must overcome in order to pursue a business opportunity.

63
Q

Barriers to exit

A

Costs of leaving a particular business line

64
Q

In order for SWOT to be successful a org must be willing and able to

A

1 turn the focus of the SWOT analysis away from the org products and toward its business processes that meet customer needs
2 capitalize on its strengths by delivering better value to customers than the competition
3 turn any weakness into strength by investing strategically in key areas

65
Q

Criteria for good differential advantage, hallmarks of a good advantage

A

1 importance - differential to buyer
2 perceived - by buyer
3 uniqueness - from other providers
4 sustainable - for some period of time

66
Q

Sources of differential advantage

A

1 product
2 market
3 cost
4 trust

67
Q

Principal-agent relationship

A

1 individual, the principle - patient gives the agent (clinician) the authority or power to make the appropriate decisions on his or her behalf. Trust is critical and essential in HC.

68
Q

Invisible value

A

The clue that the producer builds its product or service

69
Q

Visible value

A

Value that is seen by the customer, org’s can typically charge for visible value

70
Q

Evidence management

A

Is an organized and explicit approach to presenting the org capabilities to the customer

71
Q

Organizational objectives

A

Long term performance targets the company hopes to achieve

72
Q

Product development

A

Providing new products to existing markets

73
Q

Vertical integration

A

Incorporating related services or products previously developed or offered by others to the marketplace

74
Q

Backward integration

A

Becoming its own supplier, ex physician enterprise, PHOs

75
Q

Forward integration

A

Company offers new services or products closer to the customer than existing services.

76
Q

Diversification

A

Developing new products or services for new markets

77
Q

Strategic alliances

A

Or formal arrangements with other companies to operate in a particular market

78
Q

Joint venture businesses

A

New corporate entities in which both partners hold an equity position.

79
Q

Consolidation

A

Focusing business on a smaller set of markets, products, or services

80
Q

Divestment

A

Selling off a business or product line

81
Q

Pruning

A

Reduces # of products or services it offers to the market

82
Q

Retrenchment

A

Company decides to withdraw from certain markets

83
Q

Harvesting

A

Gradually withdrawing support from a product line until there is little or no market demand

84
Q

The BCG Matrix - Boston Consulting Group

Compares market share and growth rate by high and low values
Look at grid

A

The undying assumption is cash flow and profitability are closely related to sales volumes. Products or strategic business units are then placed within this matrix according to their position on two dimensions.

Market growth rate = rate of sales growth in market

Relative market share = ratio product share of business within the market compared to that of its largest competitor.

85
Q

Cash cows

A

Products with high market share but a low growth rate

86
Q

Problem children

A

Low relative market share, but high growth rate

87
Q

Dogs

A

Products with low share and low growth

88
Q

BCG matrix

A

Market share ⬆ Market share ⬇

Growth ⬆

89
Q

GE Matrix

A

Multidisciplinary models for focusing corporate strategy in org with multiple product lines based on the dimensions of market attractiveness and business strength

90
Q

Market attractiveness

A
  1. Overall market size
  2. Annual market growth rate
  3. Historical profit margin
  4. Competitive intensity
  5. Technological requirements
  6. Inflationary vulnerability
  7. Energy requirements
  8. Environmental impact
  9. Social/political/legal issues
91
Q

Business strength

A
  1. Market share
  2. Share growth
  3. Product quality
  4. Brand reputation
  5. Distribution network
  6. Promotional effectiveness
  7. Production capacity
  8. Production efficiency
  9. Unit costs
  10. Supply costs
  11. Research & development performance
  12. Management talent
92
Q

Five forces model of industry structure

A

Four major forces

  1. The threat of new entrants
  2. Bargaining power of suppliers
  3. Bargaining power of customers
  4. The threat of substitute products or services
93
Q

Threat of substitution

A

Threat of one product class being substituted for another. Ex technological change

94
Q

Determining the target market

A

Specifying whom the org is trying to attract. Selection of the target market involves accessing the org own strengths, the competitive intensity for the target market, the cost of capturing market share, and the potential financial gain in attracting the targeted group.

95
Q

Mass marketing

A

Treating the entire market as one target market and appealing to the broadest group. A distinct market strategy maybe developed for each group.

96
Q

Multisegment marketing

A

Targeting all possible Segments or a number of different segment.

97
Q

Market concentration strategy

A

Targeting only one segment of the market. An org must be able to defend its choice in the face if competition.

98
Q

Market leader

A

The firm with the largest market share and dominates the competitors in a given market.

99
Q

Market challenger

A

The firm that attempts to confront the market leader.

100
Q

Market follower

A

Is a business that competes in the marketplace by following he market leader rather than by attacking it directly.

101
Q

Market niche

A

Strategy of targeting a narrow segment of or segments in a large market with specialized products or services.

102
Q

Marketing plans along with

A

Finance, productions, and human resource plans - form the core elements of an org’s strategic plan.

103
Q

An org’s strategic plan is guided by the mission that defines its purpose for existing.

A

The mission must recognize who the customer is and what the customer wants to buy.

104
Q

In developing strategic plans a SWOT analysis provides

A

A review of internal and external factors that can affect strategic outcomes

105
Q

A differential advantage is essential i. The development of an effective plan for a program or service.

A

A differential advantage can be derived from the product or service, cost, or market. Health care organizations also need to recognize trust as a key source of a differential advantage.

106
Q

In developing strategic plans, an organization must be able to

A

recognize the barriers to entry and exit for any new service venture

107
Q

Invisible value is the value a producer builds into its product or service, visible value is a value that the customer sees.

A

Typically a company can only charge for visible value. Managing these values has been referred to as evidence management, which involves presenting the customer with the organization’s visible and invisible capabilities.

108
Q

The four broad growth strategies that any organization can pursue are:

A
  1. Market development
  2. Market penetration
  3. Product development
  4. Diversification
109
Q

The BCG matrix and GE matrix are conceptualizations that can aid an organization in the review of its service portfolio.

A

Both models encompass market and competitive considerations

110
Q

In any industry the level of competitive intensity is affected by the threat of new entrants, the bargaining power of both both

A

Suppliers and customers, and the threat of substitute products and services

111
Q

In developing a marketing plan, organizations can pursue

A

a mass marketing or a market concentration strategy

112
Q

Environmental scanning

A

Acquisition and use of information about events, trends, and relationships in an organizations external environment, the knowledge of which would assist in the planning the org’s future course of actions.

113
Q

Inflation

A

Decline in buying power when price levels rise faster than income.

114
Q

Gross income

A

Total amount of $ earned by a person or family in one year

115
Q

Disposable income

A

Amount of $ a consumer has left for food, clothing, and shelter after paying taxes

116
Q

Discretionary income

A

Amount of income left after paying for taxes and necessities.

117
Q

Technology

A

Innovations or inventions from applied science and research

118
Q

Demographics

A

Statistics that describe members of a population in terms of who they are, where they live,and the types of jobs they have

119
Q

Baby boomers

A

Born between 1946-1964 will be 20% of US population

120
Q

Blended families

A

Households joined through remarriage or living together in the same household, continues to increase.

121
Q

To help analyze geographic markets, the federal govt has created a three-tiered description if communities that reflect their pulsation density.

Data are gathered and reported according to the following classifications:

A
  1. Metropolitan Statistical Areas - cities w/pop 50k +, or an urbanized area w/a total metro pop of at least 100k.
  2. Primary Metropolitan Statistical Area (PMSA) - 2nd largest, total pop of 1M+, must include counties w/at least 10k, at least 60%urban, fewer than 50% residents communities outside the county for employment.
  3. Consolidated Metropolitan Statistical Area - largest geographical category, composed of PMSAs that total at least 1M people.
122
Q

Pure competition

A

When every company has the same product

123
Q

Monopolistic competition

A

Many sellers compete and have substitutable products.

124
Q

Oligopoly

A

Few companies control a majority of the industry sales

125
Q

DOJ formula Herfindahl-Hirschman Index of competition

A

Measure of overall competitiveness of the market. Largest value index can have is 10k, which be a single insurer in the market. If. 4 firms w/equal share 25%

126
Q

Accountable health plan

A

Entity that delivers or arranges to deliver a continuum of services to a defined population.

127
Q

Accountable care organizations

A

Based on model of Cleveland Clinic, Mayo Clinic, quality system basis metrics are agreed upon protocols and followed by the physicians to manage the defined patient population

128
Q

Regulations

A

Rules or restrictions placed on companies by federal or state governments

129
Q

Sherman Antitrust Act 1890

A

Forbids any contracts , combinations, or conspiracies in the restraint of trade. Actual monopolies or attempts to monopolize any part or trade or commerce are also forbidden

130
Q

The Clayton Act

A

Supplemented the Sherman act by forbidding certain actions that were likely to lessen competition, even if no actual damages had occurred.

131
Q

In 1950 Clayton Act was amended with the Antimerger Act

A

Broadened the power of the fed govt to prevent and intercorporate acquisitions that wild substantially reduce competition.

132
Q

Robinson-Patman Act 1935

A

Made it illegal to discriminate in prices between different buyers of the same product, where the effect may be to lessen competition and create a monopoly.

133
Q

Lanham Act

A

Provided registration of company trademarks, aka brand name.

134
Q

1988 Trademark Law Revision Act

A

Guaranteed a company trademark protection prior to the actual first use

135
Q

Exclusive dealing

A

Buyer is required to purchase all or part of its needs for a product from one seller for a defined period of time

136
Q

Requirement contracts

A

A buyer is required to purchase all or part of its needs for a product from one seller for a defined period of time.

137
Q

Tying arrangements

A

When the seller of a product requires that the purchaser also buy another item

HC Marketing (1 decks)

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