Health Care Administration

3908 Words Feb 7th, 2011 16 Pages
Strayer University

Introduction to Physical Science

Professor: Wayne Whiting

Price Strategies & Marketing Channels

11/17/2010

By John B. Webb IV

Abstract In Health Service Administration there are several components that affect the everyday business of HCOs from customer service, accounting, human resources, etc. Yet the focus on the component of marketing with HSA of HCO has become big business in recent years, because of the growth of health care ingenuities, innovations, and the latest implementation of IT infustructures. The focus has drawn new priorities of HCO business practices and competition of HCO has risen to where new marketing channels and pricing strategies have been and will continue to
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Product-quality leadership. The main concept of survival is what Kotler, Shalowitz, Stevens (2008) describe as “As long as prices cover variable costs and some fixed costs, the company stays in business.” This objective is for the purpose of maintaining cost of business functions in its market position. Maximum current profit is stated by, Shalowitz, Kotler Stevens (2008) as the “companies estimate the demand and costs associated with alternative prices, choosing the one that produces maximum current profit, cash flow, or rate of return on investment.” The maximum market share is set on setting marketing penetration pricing strategy to ensure higher sale volume that could produce lower cost per unit, and higher long-run profit. Objective 4 Maximum market skimming is set at gaining as much profit as possible in a short period of time “short run”. This is done by setting prices high at the beginning of product or service distribution, and then lower the price over time when product and or service innovations become available that are more efficient and or sold at lower price than the high price set by the original product distributor. Product quality leadership is the idea and the objective that is marketed as “gold-standard quality”, for can be offered at high premium prices. Determining demand is a big deal in the health care industry as prices for health care products services, and coverage plans continue to rise, because of the
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