Health Care Marketing Channels

Health Care Marketing Channels

Student’s Name

Institutional Affiliation

Health Care Marketing Channel

Marketing channels entail activities, organizations, and people necessary in transferring ownership of goods from the point they are produced to the final consumer (Martín-Herrán & Martín-Herrán, 2017). Each player is required to perform an active role, provide value and gain proceeds in return. The management of various organizations depends on marketing channels to develop a suitable marketing strategy. For example, financial institutions such as commercial banks depend on ATM systems to provide financial services to their customers. Healthcare providers rely on suppliers to provide medications to their institutions. UnitedHealthcare Group is the chosen healthcare provider for this particular paper. The group’s marketing channel according to the flows and functions is to intensify the competitor’s activities and limit markets. The competitor’s activities can be increased using the delivery models in healthcare that need a lot of emphasis regarding engagements with clients so as to maximize on profits (Martín-Herrán & Martín-Herrán, 2017). For example, the group deliberated on the competitive strategies that are present in the health sector. They aired their views in the American Hospital Association.

Conflict management is a basic requirement in marketing channels especially in soft markets and it should be handled in the most appropriate manner (Tang, Fu, & Xie, 2017). Conflicts are a sensitive matter and therefore players are swift to act due to the perceived effect the conflict could result in. A good example of a potential conflict is when two different marketing channels strive to make sales using the same brand. Conflict arises when a large supplier decides to reduce the prices of his product in order to attract customers (Tang, Fu, & Xie, 2017). Due to its large size, it will be in a position to withstand cuts in its revenue margins and therefore, decrease its production cost while increasing distribution of its products. The smaller distributors will be disadvantaged since there don’t have a wide range of goods to distribute. As a result, they will be able to compete. Such kind of conflict will affect customer satisfaction. This is because channels will put a lot of focus on techniques, they could use to emerge winners in the conflict such as reducing the prices. Thus, they end up ignoring the most essential buying needs of the customer. However, this conflict can be addressed by:

Each distributor in the marketing channel should stick to their original marketing strategies

Sharing of data among the various distributors

Formulating pricing policies for all channels and direct sales

References

Martín-Herrán, G., & Martín-Herrán, S. P. (2017). Retailer and manufacturer advertising scheduling in a marketing channel. Journal of Business Research, 78(4), 93-100.

Tang, T. P., Fu, X., & Xie, Q. (2017). Influence of functional conflicts on marketing capability in channel relationships. Journal of Business Research, 78(5), 252-300.