Health Service Marketing, Abosolutely No Plagiarism

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 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

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.

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 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.

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.

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

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.

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).