EXHIBIT 15.1 Functions of Marketing and Strategy

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EXHIBIT 15.1 Functions of Marketing and Strategy (continued)

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EXHIBIT 15.1 Functions of Marketing and Strategy (continued)

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EXHIBIT 15.2 Illustration of Marketing Functions

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EXHIBIT 15.2 Illustration of Marketing Functions (continued)

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EXHIBIT 15.3 Major Listening Activities

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EXHIBIT 15.3 Major Listening Activities (continued)

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EXHIBIT 15.3 Major Listening Activities (continued)

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EXHIBIT 15.4 Examples of Alternative Collaborative Structures for HCO Services

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EXHIBIT 15.4 Examples of Alternative Collaborative Structures for HCO Services (continued)

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EXHIBIT 15.5 Spectrum of Potential Relationships with Organizations

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EXHIBIT 15.6 Matrix of Market Attractiveness and Advantage

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EXHIBIT 15.7 Miles and Snow Typology of Strategic Types

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EXHIBIT 15.8 Formal Hierarchy for a Large Marketing and Internal Consulting Operation

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EXHIBIT 15.9 Measures for Specific Campaigns

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EXHIBIT 15.9 Measures for Specific Campaigns (continued)

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Questions for Discussion

1. Why are the four Ps ordered as product, place, price, promotion? What sorts of questions would the four Ps prompt for implementing the new Well-Baby Program suggested in Exhibit 15.2? How would you answer those questions in a real HCO?

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Questions for Discussion

2. Consider a planning team designing a major renovation or expansion of a patient service. Focus groups and surveys will cost nearly $100,000. How might that expenditure pay off? What is your backup plan if you think that’s too much money?

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Questions for Discussion

3. How would you justify a hospital’s investment in health promotion and palliative care? Successful efforts could mean less income for the hospital and its doctors and even reduced employment. Identify the stakeholder segments that must be sold on the concept, and propose the best arguments for each.

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Questions for Discussion

4. The Managerial Issues section in this chapter suggests that the logistic and strategic support functions described in chapters 10 through 15 create a critical competitive advantage for large-scale HCOs. Summarize the arguments you would make to a trustee of a small not-for-profit HCO that an excellent healthcare system could offer substantial advantages to patients, associates, and community over continued freestanding operation. What questions would you expect from the trustee?

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Questions for Discussion

5. The second paragraph of the Managerial Issues section is an indictment of U.S. healthcare that concludes, “the typical hospital is not strategically managed; it is simply drifting.” Could this be true? Is there a counterargument? If it’s true, what should be done about it?

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Critical Issues in Marketing and Strategy

Marketing is a broad approach to building exchange relationships.•Not limited to patients, it applies to all aspects of the organization’s interfaces with the world.•The order of the four Ps (product, place, price, promotion) is important.

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Critical Issues in Marketing and Strategy

Markets are segmented.•Segments are subgroups with similar needs.•Specific segments drive many strategy and marketing decisions.

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Critical Issues in Marketing and Strategy

Listening is fundamental to both marketing and strategy.•The goal is to understand the perspectives of customers, associates, and suppliers.•Both qualitative and quantitative approaches are used.

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Critical Issues in Marketing and Strategy

Strategies are framed using the tools of evidence-based management.•Strategies integrate the results of the environmental assessment and include quantitative forecasts.•Extensive discussions and listening allow stakeholders to gain understanding and agreement.

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Critical Issues in Marketing and Strategy

Senior management and governance manage strategic discussion and implementation.•Not-for-profit HCOs require a long-term commitment to mission and ongoing use of evidence to achieve excellence.•Large healthcare systems can strengthen both the commitment and the evidence-based tools more readily than small organizations can.

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