Designing and Managing Health Care Marketing Channels

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• Chapter 12
• Designing and Managing Health Care Marketing
  Channels

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LEARNING OBJECTIVES

1. What is a marketing channel system and value
   network?
2. What functions and flow are performed by
   marketing channels?
3. How should effective health care delivery
   channels be designed?
4. What decisions do companies face in managing
   their channels?
5. How should channels be integrated and channel
   conflict managed?

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LO1. What is a marketing channel system and value
network?

• Marketing channel system - set of organizational
  paths and relationships that a firm employs to
  reach potential buyers and induce them into
  actions
• Push - sales force
• Pull - advertising and promotion
• Value network - a created system of partnerships
  and alliances to source, augment, and deliver
  offerings

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LO2. What functions and flow are performed by
marketing channels?

• Channel functions - flows backwards and forwards
• Information gathering
• Persuasive communication
• Price agreement
• Order placement
• Inventory financing
• Risk assumption
• Buyers payment
• Transfer overseeing

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LO3. How should effective health care delivery
channels be designed?

• Analyzing customer needs
• Lot size
• Waiting and delivery times
• Spatial convenience
• Product variety
• Service backup
• Establishing channel objectives - targeted
  service outputs at the lowest possible cost
• Identifying major channel alternative - types and
  number of intermediaries,
• Evaluating major channel alternatives - channel
  advantage

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LO4. What decisions do companies face in managing
their channels?

• Selecting channel members
• Training channel members
• Motivating channel members
• Evaluating channel members

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LO5. How should channels be integrated and
channel conflict managed?

• Integrations
• Vertical Marketing Systems
• Horizontal Marketing Systems
• Multi-Channel Marketing Systems
• Conflict management
• Avoid the cause
• Compatible goals
• Clear roles and rights
• Agreement in perception
• Co-optation
• Diplomacy
• Mediation
• Arbitration
• Litigation

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CONCLUSION

• Delivering efficient health care services
  involves the cooperation of a complex set of
  channel members.
• Marketing channels can consist of a number of
  intermediaries, depending on function.
• Any parities setting up a channel must be
  prepared to train, motivate and evaluate.
• A marketing channels have the potential for
  conflict and competition.