Marketing for Health Care

1143 Words5 Pages
Pricing Strategies and Marketing Channel Health Services Marketing May 29, 2011 Abstract This paper is to explain some of the role in the Pricing Strategies and the Marketing Channels I will be explaining four steps for setting an initial price for a product or service, which are selecting the pricing objective, estimating cost, selecting a pricing method, and determining demand. I will be explaining four ways an organization can respond to a…show more content…
Maintain price and profit margin: the leader can maintain its price and profit margin, believing that (1) it will lose too much profit if it reduced its price, (2) it will not lose much market share to the competitor, and (3) it could regain market share when necessary. Maintain price and value: the leader can improve its product, service, or communications. They may find it cheaper to maintain price and spend money to improve perceived quality rather than cut price and operate at a lower margin, also it can draw on brand loyalty. Reduce price: the leader can lower its price to match the competitor price. If the firm needs to maintain a certain production volume to hold down its cost and also if it anticipates difficulty in regaining market share once it is lost then this strategy would be used. Increased price and add brands: this is when the leader can raise the price and introduce a new brand to bracket the brands that are being targeted or attacked. The best response varies in the situation. The company’s products stage in the life cycle is consider, the company should anticipate competitor’s possible price changes and prepare contingent responses in advance. Describe how effective health care delivery channels can be designed? Delivering efficient health care involves the cooperation of a complex set of channel members. Between producers and final users stand one or more marketing channels consisting of a host of marketing intermediaries that perform a
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