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More About This Textbook
Overview
Essentials of Health Care Marketing, Third Edition will provide your students with a foundational knowledge of the principles of marketing and their particular application in health care. Moreover, the text offers a perspective on how these principles must shift in response to the changing environmental forces that are unique to this market.
The text is a complete curriculum of marketing management tools and techniques and is ideal for graduate courses, though advanced undergraduates can readily grasp the level of presentation.
Key features:
· Filled with examples from a wide array of health care providers, health systems, HMOs, physician-hospital organizations, and more.
· Covers fundamental topics such as market research, strategy, and the strategic marketing process.
· Chapters include learning objectives, key terms, and chapter problems for discussion.
· Accompanied by downloadable Instructor’s Manual and PowerPoint slides to facilitate course instruction.
Product Details
Related Subjects
Table of Contents
Preface
Introduction
Acknowledgments
PART I The Marketing Process 1
Chapter 1 The Meaning of Marketing 3
Marketing 3
The Meaning of Marketing 4
Prerequisties for Marketing 4
Who Does Marketing? 5
The Elements of Successful Marketing 6
Marketing Research 6
The Four Ps 6
The Dilemma of Needs and Wants 9
Identifying the Customer 9
The Evolution of Marketing 11
Production Era 11
Sales Era 12
Marketing Era 13
The Marketing Culture 14
The Nonmarketing-Driven Planning Process 15
A Marketing-Driven Planning Sequence 17
Is a Marketing Planning Approach Needed? 19
The Strategic Marketing Process 19
Stakeholders 19
Uncontrollable Environment 20
Society 22
Target Market 24
Organizing for Marketing 25
Product-Oriented Organization 25
Market-Oriented Organization 26
Requirements for Organizational Marketing Success 27
Pressure to Be Market-Oriented 28
Capacity to Be Market-Oriented 28
Shared Vision of Market 28
Action Plan to Respond to Market 29
The Evolving Perspective of Marketing 31
The Changing Health Care Marketplace 32
The Traditional Industry Structure 32
The Evolving Industry Structure 33
Conclusions 36
Key Terms 37
Chapter Summary 37
Chapter Problems 38
Notes 38
Chapter 2 Marketing Strategy 41
Strategic Planning Process 41
Defining the Organizational Mission 43
Situational Assessment 46
Differential Advantage 49
The Visible Value Challenge of a Differential Advantage 53
Organizational Objectives 54
Organizational Strategy 56
Growth Market Strategies 56
Consolidation Strategles 60
Detemining Organzational Strategy 62
The BCG Matrix 62
The GE Matrix 64
Analyzing the Competitive Market 66
Existing Competitors 67
New Entrants 68
Threat of Substitution 69
Powerful Customers and Suppliers 70
Developing the Marketing Plan 71
Establishment of Marketing Objectives 71
Marketing Strategy Formulation 71
Development of an Action Plan 74
Conclusions 76
Key Terms 77
Chapter Summary 77
Chapter Problems 78
Notes 79
Chapter 3 The Environment of Marketing Strategy 82
Economic Factors 83
Inflation and Health Care 83
Consumer Income 85
Technological Factors 86
Quality 86
Cost 86
Behavior 87
Transparency 88
Social Factors 93
Demographics 93
Culture 98
Competitive Factors 101
Health Care Competition 103
Regulatory Factors 105
Competition 105
Pricing 109
Distribution 109
Promotion 110
Conclusions 115
Key Terms 115
Chapter Summary 115
Chapter Problems 117
Notes 118
PART II Understanding the Consumer 123
Chapter 4 Buyer Behavior 125
Decision-Making Model 125
Problem Recognition 125
Internal Search 126
External Search 126
Alternative Evaluation 128
Purchase 130
Post-Purchase Evaluation 130
Alternative Decision-Making Sequences 133
Psychological Influences on Decision Marking 136
Motivation 136
Attitudes 137
Lifestyle 137
Learning 140
Perception 141
Sociocultural Influences 143
Family Life Cycle 143
Social Class 146
Reference Group 146
Culture 148
Industrial Buyer Behavior 149
Organizational Differences 150
The Industrial Buying Process 153
Conclusions 154
Key Terms 154
Chapter Summary 155
Chapter Problems 156
Notes 157
Chapter 5 Marketing Research 161
The Marketing Research Process 161
Problem Recognition 161
Identification of Research Objectives 162
Research Design 163
Data Collection 172
Analysis and Evaluation of Research 188
Marketing Information Systems 189
Conclusions 190
Key Terms 190
Chapter Summary 190
Chapter Problems 191
Notes 192
Chapter 6 Market Segmentation 195
Mass Marketing 195
Market Segmentation 196
Concentration Strategy 197
Multisegment Strategy 198
Selecting Market Segments 198
Bases for Segmentation 199
Sociodemographic Segmentation 200
Geographic Segmentation 203
Psychographic Segmentation 204
Usage Segmentation 206
Cohort Segmentation 215
Segmenting Business Markets 220
Demographics 221
Operating Variables 221
Purchasing Approaches 222
Usage Requirements 224
The Heuristics of Segmentation 224
Conclusions 226
Key Terms 226
Chapter Summary 226
Chapter Problems 227
Chapter 7 Developing Customer Loyalty 232
Relationship Marketing 232
Customer Relationship Management 235
Satisfaction or Loyalty? 236
The Customer Loyalty Pyramid 237
Creating Customer Value 238
Conducting a Gap Analysis 242
Conclusions 251
Key Terms 251
Chapter Summary 251
Chapter Problems 252
Notes 253
PART III The Marketing Mix 255
Chapter 8 Product Strategy 257
The Meaning of Products and Services 257
The Five I's of Services 258
Classification of Products and Services 260
Classifying Consumer Products 260
Industrial Goods Classifications 261
Service Classifications 261
Managing the Product 262
Developing the Product Line and Mix 262
The Product Life Cycle 264
Product Life Cycle Issues 270
Modifying the Product Life Cycle 273
Branding 276
The Diffusion of Innovation 278
Conclusions 281
Key Terms 282
Chapter Summary 282
Chapter Problems 283
Notes 284
Chapter 9 Price 287
The Meaning of Price 287
Establishing the Price 289
Identifying Constraints 289
The Five Forces and Impact on Pricing 291
Pricing Objectives 292
Estimating Demand Revenue 294
Cost and Volume Relationships 295
Pricing Strategies 303
Positioning Value or Price 308
The Ever-Increasing Challenge of Pricing in Health Care 309
Conclusions 309
Key Terms 310
Chapter Summary 310
Chapter Problems 311
Notes 312
Chapter 10 Distribution 315
Alternative Channels of Distribution 315
Functions in the Channel 318
Time 318
Functional Shifting 319
Channel Management 320
Intensity of Distribution 320
Intensive Distribution 321
Exclusive Distribution 322
Selective Distribution 322
Vertical Marketing Systems 323
Corporate Vertical Marketing Systems 326
Administered Vertical Marketing System 328
Contractual Vertical Marketing Systems 329
Evolving Channels in Health Care 329
Channel Leadership 330
Using Power 331
Selected Concepts from Retailing 333
Structural Dimensions of True Retail Markets 333
The Retail Positioning Matrix 334
Retail Mix 336
The Wheel of Retailing 338
Conclusions 339
Key Terms 340
Chapter Summary 340
Chapter Problems 341
Notes 342
Chapter 11 Promotion 345
The Communication Model 345
The Sender 346
Encoding 347
The Evolving Communication Model: Moving to Web 2.0 World 348
The Web as a Strategic Communication Platform 349
The Message 350
The Channel 351
Decoding 352
Noise 353
Feedback 353
The Promotional Mix 354
Advertising 354
Advertising Effectiveness 355
Personal Selling 355
Publicity 359
Sales Promotion 360
Factors Affecting Sales Promotion Use 363
The Product Life Cycle 363
Channel Control Strategies 364
Conclusions 369
Key Terms 369
Chapter Summary 369
Chapter Problems 370
Notes 371
Chapter 12 Advertising 374
Common Classifications of Advertising 375
Product Advertising 375
Institutional Advertising 376
Developing the Advertising Campaign 378
Define the Target Audience 378
Determine the Advertising Objectives 379
Determine the Budget 380
Develop the Message 383
Specify the Communication Program 385
Evaluate the Response 393
The Web 2.0 and Social Media 394
Integrated Advertising Campaigns 395
Working with Advertising Agencies 395
Alternative Advertising Agencies 396
Agency Compensation 396
Ethics in Advertising 397
Nonprofit Concerns 398
Conclusions 398
Key Terms 399
Chapter Summary 399
Chapter Problems 400
Notes 401
Chapter 13 Sales and Sales Management 403
Types of Sales Jobs 404
New Business Selling 404
Trade Selling 404
Missionary Selling 404
Technical Selling 405
The Personal Sales Process 405
Prospecting 406
Preapproach 407
Approach 407
Presentation 407
Close 408
Servicing 409
Sales Approaches 409
Stimulus-Response Sales Approach 409
The Selling Formula 410
Need Satisfaction Method 411
Consultative Selling 412
Managing the Sales Function 412
Sales Force Organization 412
Sales Force Size 414
Recruitment and Selection 416
Training 418
Compensation 419
Sales Force Evaluation and Control 421
Conclusions 422
Key Terms 422
Chapter Summary 423
Chapter Problems 423
Notes 424
Chapter 14 Controlling and Monitoring 426
Controlling and Monitoring Marketing Performance 426
Market Share Analysis 427
Sales Analysis 429
Profitability Analysis 430
Contribution Analysis 432
Variance Analysis 433
Sales Force Control 437
Advertising Control 439
Customer Satisfaction Control 440
Components of a Measuring System 441
The Marketing Audit 442
Conclusions 446
Key Terms 447
Chapter Summary 447
Chapter Problems 448
Notes 449
APPENDIX A A Sample Business Planning Manual 451
Why Write a Plan? 451
The Components of the Plan 452
Putting It All Together 484
APPENDIX B Glossary 485
Index 501