Chapter 10

1. In recent years, two nationally known health care providers have established satellite facilities a great distance from their main clinic locations. The Mayo Clinic of Rochester, Minnesota, has opened facilities in Arizona, Florida, Iowa, Wisconsin, and Minnesota as well as an office for referrals in Mexico City. The Cleveland Clinic has opened a Brain Institute in Nevada, a facility in Florida, and a hospital in Abu Dhabi. Explain the changes in distribution intensity these actions represent.

2. Explain the vertical integration options and directions for the following providers: (a) a major academic medical center such as the University of Iowa, (b) a five-person general surgery group, and (c) a manufacturer of durable medical equipment.

5. Examine Figure 10-9 and explain how the community hospital in its present position (quadrant 3) could reposition itself to quadrant 2 and to quadrant 1.

Chapter 11

1. After a recent presentation of health plans at her company, Julia Brouck joined ABC PPO. The next week, she made a visit to a pediatrician in the plan with her son, Arthur, and daughter, Emmy Lou. After seeing the pediatrician, she was told that there was a $15 co-payment for the visits. “I don’t understand,” Julia said, “I thought all physician visits were free.” Explain the potential source of this misconception.

4. In recognition of the post-purchase role of promotion, what strategies would you suggest for the following: (a) a busy hospital emergency room, (b) an executive fitness program that provides health screening and fitness evaluation, and (c) an occupational medicine program that contracts its services to companies?

5. View the direct-to-consumer YouTube advertisements at the following link (you will need to type this into your web browser). These contain a sample of ads for a wide array of pharmaceutical advertisements by several manufacturers (www.youtube.com/watch?v=-6GUdjb6WMI). As you examine these advertisements make a table to address the following issues:

Do these advertisements seem to focus on a particular target market in terms of the cohorts discussed in the chapter on market segmentation ( Chapter 6 )?

In terms of the emotional appeals used in the advertisements, which ones use fear? Humor?

Would you classify any of the individuals as spokespersons? Which advertisements? Why so? Why not in particular ads?

Chapter 12

2. Write an awareness objective for a newly formed adolescent chemical dependency program whose target market consists of judges and social workers who refer to the facility. How would this objective change for the trial level of the hierarchy of effects?

3. Look at the Stand Up to Stigma video on YouTube (www.youtube.com/watch?v=pn8p2q6WcgU). Assume you are the marketing director at the Brattleboro Retreat, and you want to affect individuals in the community who have loved ones with a mental health issue or may themselves suffer from some form of mental health problem or substance abuse. How would you move these individuals to the second level of the hierarchy? How would you evaluate the YouTube video? Was it effective? What is your rationale for your judgment? How would you move to the third level of the hierarchy? What is your objective now? The target market is different.

4. As the newly hired hospital marketing director, you have your first meeting with the administrator. “Okay,” he says, “we need to advertise our physical rehabilitation program. I’ll give you a couple of days to tell me how much you’d like to spend. Is $5,000 enough? I think we can afford a little more, if you need it. And, based on what I’ve seen in the newspapers, St. Mary’s seems to be spending a little less than that. Give me your thoughts in 2 days.” Your 2 days are up

5. Recently, the physician marketing task force at State University Medical Center developed a physician referral directory and advertisement. The target was primary care physicians in the region who could refer patients to State University for tertiary care. A cardiologist who was an undergraduate English major chaired the committee and drafted the materials. Three months after distribution of the advertisement and directory, responses were disappointing. Explain how this process could have been improved to increase likely response.