Running head: COMPETITION, MARKETING MIX & PRICING 1
Week 8: Assignment 2
HSA 305 Health Services Marketing
Student Name
Professor Prince A. Ordu, PhD.
May 29, 2017
COMPETITION & MARKETING MIX 2
Competition, Marketing Mix, and Pricing
The dental profession is a part of the health care system often overlooked as being
important to overall health. I will discuss the factors that will push dentistry to the forefront, and
provide the consumer with the best marketing mix and price. Several things can influence how
well a business does. Competition is a must if the business is to grow and do well. The
marketing mix of the business must consider consumer readings to make a purchase. The market
mix also includes the stage in the product’s life cycle, and the types of product market
availability. Competition causes businesses, to always stay as current as possible, with the
changing technology. All marketing channels have the potential for conflict and competition.
Resulting from such sources as goal conflict and poorly defined roles and rights (Kotler,
Shalowitz, & Stevens, 2008). Providing rewards to all channel participants can help manage the
conflict. Firms need to prepare valued offerings. The tool framework is the 4P’s of the
marketing mix, which are, product, price, place, and promotion. The consumer must be available
at the right time and place, and be affordable. The consumer should have awareness of the
offering and find it acceptable.
Services are classified under product as well. Price includes the cost of the services and
dental products. Discounts are provided and insurance payments as well as patient payments, are
included as payment. Promotions are offered through sales promotion, advertising, public
relations, and direct marketing. Place involves locations, inventory channels, and assortments.
Price in the dental office, is the marketing element that results in revenue. Transparency is very
important in dentistry. Patients need to trust the dentist and staff, even if factors arise such as the
fearful patient, and price is used as a reference to quality. The prices being readily available to
the patients, helps ease their anxiety and builds trust. I will provide the key characteristics of the
COMPETITION & MARKETING MIX 3
users of dental services (or products), analyze the competitive environment of dentistry, and
provide a course of action for strategic marketing success. I will also determine which tools of
the marketing mix are the most effective. Last, I will determine the best possible pricing strategy
for at least one of the products of service offered by the dental office.
Characteristics of Users of Products and Services
The users or patients of the dental office, are looking for quality service at a reasonable
price. The geographic segmentation includes the Charlotte area with some patients ...
Running head COMPETITION, MARKETING MIX & PRICING 1 .docx
1. Running head: COMPETITION, MARKETING MIX &
PRICING 1
Week 8: Assignment 2
HSA 305 Health Services Marketing
Student Name
Professor Prince A. Ordu, PhD.
May 29, 2017
2. COMPETITION & MARKETING MIX 2
Competition, Marketing Mix, and Pricing
The dental profession is a part of the health care system often
overlooked as being
important to overall health. I will discuss the factors that will
push dentistry to the forefront, and
provide the consumer with the best marketing mix and price.
Several things can influence how
well a business does. Competition is a must if the business is to
grow and do well. The
marketing mix of the business must consider consumer readings
to make a purchase. The market
mix also includes the stage in the product’s life cycle, and the
types of product market
availability. Competition causes businesses, to always stay as
current as possible, with the
changing technology. All marketing channels have the potential
for conflict and competition.
3. Resulting from such sources as goal conflict and poorly defined
roles and rights (Kotler,
Shalowitz, & Stevens, 2008). Providing rewards to all channel
participants can help manage the
conflict. Firms need to prepare valued offerings. The tool
framework is the 4P’s of the
marketing mix, which are, product, price, place, and promotion.
The consumer must be available
at the right time and place, and be affordable. The consumer
should have awareness of the
offering and find it acceptable.
Services are classified under product as well. Price includes the
cost of the services and
dental products. Discounts are provided and insurance
payments as well as patient payments, are
included as payment. Promotions are offered through sales
promotion, advertising, public
relations, and direct marketing. Place involves locations,
inventory channels, and assortments.
Price in the dental office, is the marketing element that results
in revenue. Transparency is very
important in dentistry. Patients need to trust the dentist and
staff, even if factors arise such as the
fearful patient, and price is used as a reference to quality. The
4. prices being readily available to
the patients, helps ease their anxiety and builds trust. I will
provide the key characteristics of the
COMPETITION & MARKETING MIX 3
users of dental services (or products), analyze the competitive
environment of dentistry, and
provide a course of action for strategic marketing success. I
will also determine which tools of
the marketing mix are the most effective. Last, I will determine
the best possible pricing strategy
for at least one of the products of service offered by the dental
office.
Characteristics of Users of Products and Services
The users or patients of the dental office, are looking for
quality service at a reasonable
price. The geographic segmentation includes the Charlotte area
with some patients that drive for
twenty miles in order to keep the same dental practice. The
demographic of the user is mostly
adults over age twenty-five. Middle income families, and
mostly women are two more
5. characteristics. The race is mixed, with seventy percent African
American. Religion is the
atmosphere of the practice, because all employees are Christian.
The faith base office play
Christian music. This attracts mostly religious patients. The
patients are family oriented and
most are professionals. The patients obviously care about their
teeth, and most value their oral
health. Behavioral attitudes are generally very good. Loyal
patients, who care about keeping
their teeth a life time. This is the core value of the patients.
Patient satisfaction is the new buzzword, and it’s the difference
between providing what a
patient needs and what a patient wants (Malkin, 2002). The
office does have children, teens,
adults, and older adults, so the office offers products to target
these different groups. The key
characteristics described help the dental office know which
products to sell and how to approach
the patient with innovative equipment, services, and dental
work. The patients are interested in
dental implants for instance, to replace missing teeth, because
they understand the importance of
keeping teeth and replacing them as needed.
6. COMPETITION & MARKETING MIX 4
Analysis of Environment and Recommended Course of Action
The dental office has to identify its primary competitors. The
next step is to know the
strategies, objectives, strengths and weaknesses. The
competition strategies of the dental office
is built on STP, or segmentation, targeting, and positioning.
Different needs and groups in the
market place are discovered first. The dental office has patients
that need an office that is
convenient to their place of living. The design has a cozy feel,
like a house or home. Quality of
the building will attract women, who in turn will bring in more
business. The services the office
provides are positioned in the mind of the patients. Positioning
involves identifying the target
market, the nature of the competition, the points of difference
and the points of parity. The
dentist stays current by becoming certified to place dental
implants. The competition’s office do
not place dental implants, they refer patients out. The dental
7. office must stay as above average
as it can, and always change with the times. Keeping a
competitive edge will keep all the
competition from gaining more.
Tools of the Marketing Mix
Due to the digital age, allowing dental x-rays to be taken
quicker and with less radiation,
and the placement of dental implants, the dental office has
grown. The product is the marketing
tool that best helps the office. The product can create value and
that’s what the patients want.
Value means that the price can be set according to this value.
Price is the next most important.
Staying current justifies the price for value. Promotion is done
a lot through word of mouth.
Occasionally lowering the price of bleach for the patient is done
through promotions. This
discount is offered as an incentive for patients to quit smoking,
or to use a water pik. The
location of the office is in a much traveled area, where a gallery
crawl occurs every month. The
location (place) is in a very good area for visibility.
8. COMPETITION & MARKETING MIX 5
Best Possible Pricing Strategy
The dental office will use the seven-step procedure for setting
its pricing policy for dental
teeth bleaching, since the desire to look attractive is not a sign
of vanity, it’s now a necessity in
today’s competitive world (Goldstein, 2008).
1. Selecting the pricing objective. The maximum current profit
may cause long-
run performance loss. Using price as a strategic tool will cause
greater profit
than letting prevalent market cost determine pricing.
2. Determining demand. Watching out for price-sensitivity is
necessary. The
bleach is priced reasonably. In recent years, bleach prices have
come down,
due to the high demand.
3. Estimating cost includes demand, and supply success rates.
4. Analyzing competitor’s costs, prices, and offers. Staying in
competition with
competitors in order to keep costs below the competition.
9. 5. Decide whether to use price as a competitive strategy.
6. Selecting a pricing method. Value pricing is a good choice
with customer’s
perceived value of their product of service. Going rate pricing
is based on the
competitor’s prices.
7. Selecting the final price. The best choice is selected based
on all of the above
choices. The cost for the bleach is $400.00. The price has seen
a decrease
since first introduced to the general public.
There is also some promotional pricing, and the cost of the
bleach is $250 until the
promotion is over. There is also a difference in chairside
bleaching costs and take
home bleaching trays. The take home is less expensive. The
time of the dental
COMPETITION & MARKETING MIX 6
professionals, laboratory fees, material costs, and other
overhead costs are included in
10. the price. Setting the appropriate costs for bleaching treatment
within the practice is
essential to the survival and profit of the dental practice
(Greenwall, 2013).
Conclusion
In conclusion, the competition of a business is always a threat.
A business needs to
identify their threats, along with strengths, weaknesses and
opportunities. This information is
invaluable in terms of formulating the right marketing mix in
order to compete successfully in
the health care field. Knowing the competition, marketing mix,
and pricing makes the business
the best it can be, until the climate changes. Change is always
going to happen and newer things
will be developed. Staying on top of the changes will help
ensure the success of the business.
Healthcare leaders then need to stay abreast of the latest trends
that are impacting the industry for
the segment of the market their organization services.
11. COMPETITION & MARKETING MIX 7
References
Goldstein, R. E. (2008). Esthetics in dentistry. Retrieved
from: eBook Collection
(EBSCOhost).
Greenwall, L. (2013). Bleaching techniques in restorative
dentistry. Retrieved from:
eBook Collection (EBSCOhost).
Kotler, P., Shalowitz, J., Stevens, R. (2008). Strategic
marketing for health care organizations.
CA: Jossey-Bass.
Malkin, Jain. (2002). Medical and dental space planning: a
comprehensive guide to design,
equipment, and clinical procedures. Retrieved from: eBook
Collection (EBSCOhost).
12. Running Head: HEALTH SERVICE MARKETING
1
HEALTH SERVICE MARKETING
7
Marketing and the Healthcare System
Latonya Louden
Strayer University
HSA 305
Professor Ordu
01/27/2018
Direct impact of marketing
The Texas medical center
The health care sector has seen increased competition in the
recent past. This trend is highly linked to the advancement of
technology. Technology is highly useful in the healthcare
sector, and healthcare providers are putting efforts to
incorporate the techniques because they have not only a direct
impact on the quality of services delivered but also the
efficiency. Due to the increased competition, providers have
made efforts to guarantee customers quality services.
Affordability and energy are some of the primary factors that
directly impact on customer satisfaction hence attraction of
many clients and also retention.
13. The Texas Medical Centre has put in deliberate effort to
improve the quality of services. The Streamlining of the center's
marketing strategy has played a significant role in its current
standing. Being the largest health center globally, the provider
has managed to attract many customers across the world due to
its effectiveness in marketing. The Texas Medical Centre has
various clinical facilities ranging from medical schools, nursing
schools, hospitals as well as specialty units. The organization
has a well-tailored marketing strategy in place that helps it to
reach out to its diverse customer base and keep it updated on
the different services. Increased awareness among the customers
is, therefore, one of the direct impacts of direct marketing in
this center (Christopher, 2002).
Secondly, the marketing has also impacted on authority and
credibility of the provider. Since the center offers a wide range
of services, the marketing has facilitated brand awareness in the
various services delivered. As a result, many customers have
come to associate the center with quality and affordable
services hence gaining some authority and credibility in the
medical care area. The organization relies on brochures directly
handed to customers as well as online platforms to present and
collect information from customers.
Strategy to determine the utilization of its products or services
Determining service utilization is crucial for not only healthcare
providers but also all entrepreneurs. The primary goal of the
determination of usage of products and service by any company
is to learn which services are being used and which ones have a
low preference. The information is crucial for future decision
making. Concerning marketing, the company could use the
information gathered to determine what marketing techniques
need to be put in place to better get to the audience. A customer
will know about an existing service if he or she has ever
14. utilized it. If the majority of the customers are not aware of
current service, then it implies that it is not frequently used. A
health care provider could either work on creating awareness of
the underutilized services and products or drop them all
together (Coddington, Fischer, & Moore, 2001).
Surveys would be the best strategy to determine the
utilization of services and products. The information collected
from the surveys will inform the Texas medical center which of
the services delivered in its facilities are highly utilized,
underutilized or not utilized at all. There are different methods
of carrying out the surveys. One of the techniques is by
preparing them in advance and offering them to customers as
they visit the facilities for services. The customers will provide
the information by answering simple questions on products and
services. There could also be a section that the customer can use
to make suggestions. Online surveys could also be utilized to
reach to the broader customer base. Since administration of
examinations can be costly, the health care provider could
determine the utilization of services and products either
annually or semi-annually.
Marketing strategy for the healthcare provider
A marketing strategy is a technique an organization utilizes to
give information to its prospects with the intention of wooing
them to become consumers of its products and services.
Social media is the best marketing strategy for the Texas
Medical Center. One of the primary reasons for this choice is
the nature of its customer base. The center offers services
globally. Due to the geographical area within which the
customer base resides, social media would facilitate fast
15. communication between the particles. Some of the platforms
that can be used include twitter and facebook. Due to the
advancement in technology, almost everyone has a device that
he or she can use to access social media platforms. This is a
very efficient way to reach out to potential customers. The
healthcare provider could use these platforms to post brochures
and pamphlets containing its services (Tuten, 2008).
Use of website
The Texas Medical center also utilizes a site to market its
products and services. Through the official website, the
customers learn of the center's different facilities and how they
can access them. Besides, information on the services offered at
the center as well as the costs is provided. Thirdly, through the
official website, many customers get to learn more about the
mission and goals of the middle as far as health care services
are concerned (Parkin, & Parkin, 2010).
Use of pamphlets and brochures
A direct marketing strategy could involve the utilization of
booklets and pamphlets. This approach is highly applicable to
those customers who are physically at the center. The company
could offer pamphlets to the patients and also other customers
to act as a reminder of not only the facility but also the services
rendered. Besides, this marketing strategy is efficient compared
to others because the center can utilize them to offer vast
amounts of information at a low cost. This will also effectively
communicate to the clients who do not use online platforms.
Separate ways to shape the buying decisions of its customers
16. Different methods can be utilized to shape the buying decision
of customers. One of the strategies is to create and maintain a
good reputation online and offline. Customers want to be
associated with health care providers who have right public
image and reputation. With the increased competition in the
health sector, it is crucial for the Texas Medical center to
engage in actions and mannerisms that promote its reputations.
Some of these could include adhering to a code of ethics
especially regarding patient information and also in
manufacturing of the products and delivery of services.
Pricing is also a meaningful way to influence the consumers'
buying decisions. Health care is a basic need and a right to all
human beings. The health care providers should not appear to be
behind making profits through their operations but should focus
on improving the quality of care to meet this need. Affordability
is therefore critical in healthcare as the customers will only buy
services they can afford. The Texas Medical center could hence
utilize pricing to gain a competitive advantage over its
competitors (Dumitru, 2015).
Packaging is also a significant factor in shaping purchasing
decisions. Packaging is not only about a product but also about
services. When a patient goes to a provider, the one thing he
needs to see is how the services are delivered. This touches on
both the staff and the products themselves. With the
medications, the packaging is paramount too.
References
Christopher, M. (2002). Relationship marketing: integrating
quality, customer service, and
17. marketing. Relationship Marketing, 148-189. doi:10.1016/b978-
0-7506-4839-4.50008-
x
Coddington, D. C., Fischer, E. A., & Moore, K. D. (2001).
Strategies for the new health care
marketplace: Managing the convergence of consumerism and
technology. San Francisco:
Jossey-Bass.
Dumitru, M. (2015). Important Elements in Consumer's
Decision-making Process. Procedia
Economics and Finance, 22, 780-786. doi:10.1016/s2212-
5671(15)00306-8
Parkin, G., & Parkin, G. (2010). Digital marketing: Strategies
for online success. London: New
Holland.
Tuten, T. L. (2008). Advertising 2.0: Social media marketing in
a Web 2.0 world. Westport, CT:
Praeger.
http://www.tmc.edu/