Healthcare Marketing

Question 1

definition: Business objectives based on the mission and values statement

Answer 1

internal information

Question 2

definition: focused on listening to Clients, Competitors, Payers, Boss, Referrers, Changes in healthcare legislation

Answer 2

external information

Question 3

What are the two types of sales?

Answer 3

inside and outside sales

Question 4

definition: Market where consumers have a potential unmet need

Example: An area that doesn’t have outpatient PT or doesn’t have enough

Answer 4

potential market

Question 5

Definition: Type of market where Consumers from a potential market can afford your product

Example: Those who have insurance and can afford co-pay

Answer 5

available market

Question 6

definition: Market where there are consumers in the available market who the businesses WANT to supply a product or service to

Example: The clinic only accepts private insurance and NOT Medicare

Answer 6

target market

Question 7

definition: Market where consumers are buying the product

Answer 7

penetrated market

Question 8

What are the 3 decisions that companies have to make regarding market share?

Answer 8

1 - Grow Market Share
2 - Maintain Market Share
3 - Drop out of the Market

Question 9

definition: Expanding sales of existing products in existing markets

Answer 9

market penetration

Question 10

definition: Grow through the sale of a new product in an existing market

Answer 10

product development

Question 11

definition: Grow through expanding sales of an existing product in a new market

Answer 11

market development

Question 12

definition: Grow through expanding sales of a new product in a new market

Answer 12

market diversification

Question 13

Who are the consumers in healthcare?

Answer 13

Patients
Doctors
Referral sources
Patient’s family
Third Party Payers

Question 14

definition: focus on the humanistic and caring aspects of the product or service

Answer 14

customer centric

Question 15

Client pays premium –> Insurer pays providers
- Conflict resolution available as needed

What relationship is described?

Answer 15

patient-payer

Question 16

1. Client chooses a provider
2. Provider delivers service
3. Client authorizes insurer to pay fees for service
   - Conflict resolution available as needed

What relationship is described?

Answer 16

Patient-provider

Question 17

1. Provider agrees to provide service
2. Rate of reimbursement is agreed-upon
3. Provider notifies insurer of services provided
4. Payer reimburses provider
   - Conflict resolution available as needed

What relationship is described above?

Answer 17

payer-provider

Question 18

1. Laws, guidelines, and requirements set by regulator
2. Regulator acts to protect the public interest
3. Provider deliver service
4. Payer administers the insurance program

• Conflict resolution available as needed

What relationship is described above?

Answer 18

regulator- provider and payer

Question 19

1. Client chooses to live in regulators jurisdiction
2. Regulator acts as ombudsman to client
3. Client notifies regulator of any problems

• Conflict resolution available as needed

What relationship is described above?

Answer 19

patient-regulator

Question 20

definition: Splitting the known market into separate parts

Answer 20

marketing segmentation

Question 21

definition: a very specific market that has a limited number of potential customers that have unique needs that have not been met by other providers

Answer 21

Niche market

Question 22

definition: It’s the combination of the ways a business chooses to present itself to the customer

Answer 22

marketing mix

Question 23

What are the 7 P’s for marketing?

Answer 23

• people
• physical evidence
• processes
• product
• price
• place
• promotion

Question 24

definition: Prices are being set relative to cost

Example mark-up (product cost $10 and you mark up 30% for profit = $13 is price)

Answer 24

cost-based pricing

Question 25

definition: setting a price compared to how much your competitor is charging

Answer 25

competition-based pricing

Question 26

(true/false) Price can include the amount of time a customer must pay in money, time, and convenience

Answer 26

true

Question 27

What are the 6 progressive steps in promoting a product?

Answer 27

1. product awareness
2. product knowledge
3. product differentiation from alternative products
4. support comparisons that favorably represent the promoted product
5. form a product preference
6. act on preference by purchasing the preferred product

Question 28

definition: Paid, non-personal communication

Answer 28

advertising

Question 29

definition: Interpersonal presentation with a potential customer

Answer 29

personal selling

Question 30

definition: Use of trade shows, expositions, demonstration, health fairs, community outreach programs

Answer 30

sales promotion

Question 31

definition: Communication and relationship with various customers including the media

Answer 31

public relations

Question 32

definition: refers to the way business activities flow and are coordinated

Answer 32

processes

Question 33

What are the four core elements to market a product or service?

Answer 33

Product, place, promotion, price

Question 34

(true/false) Ethics play a key role in marketing in healthcare

Answer 34

true