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Tables, Figures, and Exhibits xi
Preface xv
Acknowledgments xvii
The Authors xix
Part 1
The Role of Marketing in Health Care Organizations 3
Overview: Marketing Is Pervasive in Health Care 4
The Elements of Marketing Thought 6
Defining the Health Care System and Its Trade-Offs 13
Overview: Defining a Health Care System 15
A Framework for Understanding Health Care Systems 16
Strategic Choice Model for Organizations and Health Care Systems 25
Strategic Implications for Health Care 29
The Health Care Industry and Marketing Environment 41
Overview: The U.S. Health Care System Needs Improvement 43
Defining a Well-Designed Health Care System 45
Major Participants in the Health Care System 48
Key Managed Care Trends 56
Dynamic Relations Among Health Care Stakeholders 71
The Changing Health Care Environment 73
Determinants of the Utilization of Health Care Services 85
Overview: Why People Seek Health Care 86
Multiple Factors Influence Health-Seeking Behavior 95
Local (Small Area) Variations 104
Part 2
Strategy and Market Planning 109
Overview: Defining the Organization's Purpose and Mission 111
Strategic Planning 111
Marketing Strategies 135
Reassessment of Mission Statement 139
Strategic Alliances 141
Marketing Planning 141
How Health Care Buyers Make Choices 145
Overview: Key Psychological Processes 147
The Buying Decision Process: The Five-Stage Model 155
Organizational Buying and Decision Making 163
Using Market Information Systems and Marketing Research 177
Overview: The Need for Market Information 179
The Components of a Modern Marketing Information System 180
Internal Records System 181
Health Care Services: The Clinical and Financial Systems 182
Health Care Products: The Order-to-Payment Cycle 182
The Marketing Intelligence System (MIS) 182
Marketing Research System 188
The Path Model: Understanding the Health Care Consumer 197
Marketing Decision Support System 201
Developing a Marketing Research Plan: Application and Example 203
Forecasting and Demand Measurement 206
Secondary-Data Sources 213
Market Segmentation, Targeting, Positioning, and Competition 217
Overview: Market Segmentation 219
Segmentation of Consumer Markets 222
Market Targeting 231
Market Positioning 235
Competitive Forces and Competitors 245
Part 3
Shaping and Managing Product and Service Offerings 261
Overview: Distinguishing Product Types and Levels 263
The Nature of Services 266
Viewing the Product Mix 271
Managing Product Lines 272
Developing and Branding New Offerings 281
Overview: The New Offering Development Process 283
Building the Brand 296
Managing the Stages of the Product Life Cycle 304
Building, Maintaining, and Terminating a Brand 313
Pricing Strategies and Decisions in Health Care 317
Overview: Understanding Pricing 318
Consumer Payers 320
Government Payers 341
Private Payers 344
Designing and Managing Health Care Marketing Channels 351
Overview: Marketing Channels and Value Networks 353
The Role of Marketing Channels 356
Channel Functions and Flows 358
Channel Levels 360
Service Sector Channels 360
Channel-Design Decisions 361
Identifying Major Channel Alternatives 362
Evaluating the Major Alternatives 364
Channel-Management Decisions 365
Modifying Channel Arrangements 368
Channel Dynamics 369
Legal and Ethical Issues in Channel Relations 373
Designing and Managing Integrated Marketing Communications 375
Overview: The Role of Marketing Communications 377
Marketing Communications and Brand Equity 378
Communications Process Models 380
Developing Effective Communications 382
Advertising 397
Sales Promotion 411
Public Relations and Publicity 414
Events and Experiences 418
Factors in Setting the Marketing Communications Mix 423
Measuring the Communications Results 424
Managing the Integrated Marketing Communications Process 424
Coordinating Media 425
Implementing Integrated Marketing Communications 425
Personal Marketing Communications: Word-of-Mouth, Sales, and Direct Marketing 429
Overview: Personal Communication Channels 431
Word-of-Mouth Marketing 433
Designing the Sales Force 441
Health Care Sales to Hospitals and Physicians 454
Direct Marketing 458
Part 4
Organizing, Implementing, and Controlling Marketing 471
Overview: Organizing for Marketing 474
Helping the Hospital Become Patient-Oriented 477
Marketing Implementation 478
Evaluation and Control 479
Glossary 491
Notes 511
Index 531

This much-needed text offers an authoritative introduction to strategic marketing and presents a wealth of ideas for gaining the competitive edge in the health care arena. The authors analyze many aspects of customer-driven health care industries, and use examples and cases to show how real companies build and implement effective strategies. It includes marketing approaches through a wide range of perspectives: hospitals, physician practices, social marketing, international health, managed care, pharmaceuticals, and biotechnology. With Strategic Marketing for Health Care Organizations, students and future administrators will have a guide to the most successful strategies and techniques, presented ready to apply by the most knowledgeable authors.