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health care market strategy
Questions and Answers of
Health Care Market Strategy
10.How successful has the organization been with the various services it has promoted?
9.What is the return on investment?
8.Have there been any problems with accounts receivable?
7.How has it been capitalized?
6.What has the financial history of the organization been?
5.What is the basic policy of the organization? Is it health care or profit?
4.What has the nature of its growth been?
3.When and how was it organized?
2.How has the organization changed over the last decade?
1.What has the historical purpose of the organization been?
16.What is your Web ranking relative to the competitors’ ranking in terms of hits and page views?
15.How does your Web presence compare to the competition’s?
14.Who are the suppliers to the industry? Are they changing strategies? Why?
13.Who are the customers served by the health system?
12.Might competitors in other geographical regions or other segments who do not currently compete in the organization’s markets or segments decide to come into the market?
11.How do competitors (segment/price) advertise?
10.Is competition on a price or nonprice basis?
9.What are the choices afforded patients? In services? In payment?
8.What product innovations could replace or reduce sales of the organization’s products? When will these products be commercially feasible? (Information about potentially competitive products can
7.What other products or services provide the same or similar functions? What percentage of total market sales does each substitute service have?
6.Who are those companies on the periphery—those that serve the same customers with different but related services, including related pieces of equipment? (It is impossible to list all related
5.How does or could Web-based technology serve the organization’s customers or markets? What conglomerates or diversified companies may be attracted by the growth, size, or profitability of these
4.What trends can be foreseen in competition and disruption by new or different traditional and nontraditional competitors?
3.Describe each competitor and their advantages?
2.What is the organization’s position (size and strength) in the market relative to the competitors?
1.Who are the competitors in the industry? How are competitors defined? Has the number increased or decreased in the previous 4 years?
23.Are there deficiencies in servicing or assisting customers in using the health system?▸▸The Competitive Environment
22.What medical research and improvements are planned?
21.How would our organization be impacted by gene therapy, advanced DNA-related innovation, a Web-based app, or a mega-store that begins to compete?
20.What is the life cycle of the healthcare service or system?
19.What circumstances force customers to turn elsewhere for help in using the service?
18.What reinforces the customer’s faith in the company and/or clinical service?
17.What is the overall reputation of the healthcare organization in each segment?
16.What are the customer attitudes in different segments (e.g., brand awareness and brand image)?
15.What are the requirements for success in each market?
14. What is the organization’s market standing with established customers in each segment (e.g., market share, pattern of repeat business, and expansion of customers’ service use)?301
13. What are the reasons different market segments are buying the medical service (e.g., service features, awareness, price, advertising, promotion, bundling of other healthcare services, and patient
12. What are the benefits that patients in different segments derive from the product (e.g., economy, better performance, and displaceable cost)?
11. Where do the patients come from geographically?
10. What is the role of the Internet in terms of impacting consumer and patient decision-making?
9. How fast and far have markets expanded?
8. What is the expected rate of growth of each patient segment?
7. What are the present and expected future profits and characteristics of each market or market segment? Which markets have been growing or declining over the last 10 years?
6. What are the major segments in each market? Estimate the size of each segment.
5. How large is the service area covered by the market?
4. Who are the organization’s major markets and publics?
3. What are the main developments with respect to demography, the economy, technology, government, and culture that will affect the organization’s situation?
2. What are the trends in recent regulatory rulings at the local, state, and national levels?
1. What kinds of external controls affect the organization? Local? State?Federal? Self-regulation?
6.In what ways is strategy development in a hospital or multigroup physician setting more complex than other business entities?
5.How does the “Value—Process—Message” sequence challenge the marketing director in most organizations when the organization has acquired several new practice sites and the decision has been
4.Is a profit target a legitimate aspect of a not-for-profit organization’s vision?
3.How should panning committees address the reality of assumptions within the planning process?
2.What are the core reasons for strategic planning failure?
1.Why do healthcare organizations tend to take on more initiatives than they have capital to support?
5.What should happen if in 5 months there are major changes in the data assumptions that were used to build the strategic plan?
4.What is the value add of a balanced scorecard?
3.Who should monitor performance of the business plan?
2.What specific and measurable criteria should be part of the marketing plan?
1.Should the organization have specific criteria for determining whether the strategic plan should be approved? If yes, what should they be?
14.Does the plan provide for adequate market share?
13.Does the plan provide for long-range growth?
12.Does the plan promote product competition?
11.Does the product enhance the stability of other products offered by the organization?
10.Is the proposed process one with which the organization is familiar?
9.Is it easy for a competitor to duplicate?
8.Will the proposed new product or service appeal to a solid market segment?
7.Does the plan have a competitive advantage in the marketplace?
6.Is a certificate of need required?
5.Does it require research time?
4.Does the plan require capital? How much?
3.Are estimated revenues sufficient and profitable?
2.Does the plan enhance the organization’s political power?
1.Is the return on the investment adequate?
3.Who should participate in the strategic planning process? Who should participate in the business planning process?
2.What should a business plan for a charitable organization focus on?
1.What element of the strategy process is most important?
7.Emani, S., Yood, R., & Dugan, E. (2005). Patient loyalty, trust, and satisfaction: Data and observations from a medical group practice. Abstract of the Academy of Health Meetings, 22, 3393.
6.Astuti, H. J., & Nagase, K. (2015, May). Patient loyalty to health care organizations: Strengthening and weakening (satisfaction and provider switching). Journal of Medical Marketing.
5.Berry, L. L., Parasuraman, A., & Zeithaml, V. (1994, May). Improving service quality in America: Lessons learned (1993–2005). The Academy of Management Executive, 8 (2), 32–52.
4.Orenstein, C. (2016, May 27). Doctors fire back at bad Yelp reviews—and reveal patients’ information online. The Washington Post. Retrieved from
3.Holliday, A. M., Kachalia, A., Meyer, G. S., & Sequist, T. D. (2017). Physician and patient views on public physician rating websites: A cross-sectional study. Journal of General Internal Medicine.
2.Hood, J. R. (2017, February 2). Doctors say the reviews add to their stress levels but patients find them empowering. Consumer Affairs. Retrieved from
1.Jha, A. K. (2016, March 4). Health care providers should publish physician ratings. NEJM Catalyst. Retrieved from https://catalyst.nejm.org/health-care-providers-should-publish-physician-ratings/
7.You have been called into a medical group as a marketing consultant. The president of the group has asked you about the group’s advertising budget for the coming year, as it is in a highly
6.There are several alternative pricing strategies, such as bundled pricing or price skimming. Identify three such strategies, define each one, and provide an example showing how they can be
5.You are part of the senior leadership team of a major healthcare system. In the strategic planning meetings, the team realizes it is essential to control the physician referrals as much as
4.As the channel of distribution in health care evolves with the increasing impact of technology, how would you assess the impact of disintermediation versus reintermediation in terms of which
3.Explain the difference between the push strategy and the pull strategy in the channel of distribution. How are they used with regard to the pharmaceutical 254 Chapter 7 Step 4: Determining
2.A large healthcare system has decided to acquire several practices in the contingent states, as well as throughout their own regions. Many of the practices that have been acquired have been
1.Quality has been said to have two dimensions. In an era of greater transparency and the increasing use of the Web by patients, describe two effective ways a multispecialty group might consider
9.How will the advertisement motivate action initially?
8.How will the advertisement create preference initially?
7.How will the advertisement create awareness initially?
6.How will the advertisement capture attention initially?
5.Adoption. The customer decides to utilize the service on a regular basis.
4.Trial. The customer is interested in trying the service on a limited basis. Southdale Pediatric Associates, Ltd. in Minneapolis, Minnesota (http://www.southdalepeds.com/new-patients), offers a
3.Evaluation. The customer attempts to evaluate the benefits of one offering versus those of another.
2.Interest. The potential buyer is aware of the offering and wants more information about it.
10.Advocacy. The best promotion of all is a recommendation from a user of the service. Conversely, a former user’s comments are harmful if the experience was negative.
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