Health Services Marketing May 29, 2011
This paper is to explain some of the role in the Pricing Strategies and the Marketing Channels I will be explaining four steps for setting an initial price for a product or service, which are selecting the pricing objective, estimating cost, selecting a pricing method, and determining demand. I will be explaining four ways an organization can respond to a competitors price change, they are maintain price and profit, maintain price and add value, reduce price, and increase price and add brands. There will be an explanation on how effective health care delivery channels can be designed, which involves a complex set of channel members. There will also be a description of four main decisions that companies face in managing their channels which are selecting channel members, training channel members, motivating channel members, and evaluating channel members.
Explain at least four of the seven steps for setting an initial price for a product or service? Selecting the pricing objective is deciding where it wants to position its market offering. Survival, maximum current profit, maximum market share, maximum market skimming, or product-quality leadership are five major objectives that a company can pursue through its pricing. A company’s choice of objective is strategically important. A company usually can’t attain more than one objective simultaneously. Estimating Cost is where demand sets a ceiling on the price a company can charge for its product or service and cost sets the floor the price that the organization needs to charge has to cover its cost of producing, distributing, and...