Pricing Strategies In Healthcare

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Pricing Strategies Marketing in health care is used to advertise the organization’s products and services it offers to the community. Marketing represents the visibility of an organization, especially the products and services it offers. Organizations must establish pricing objectives and analyze factors that can affect the price of the product, in which they determine what the pricing strategies will be (“Principles of Marketing”, 2015). Pricing strategies in an organization should establish pricing objectives and analyze factors that could affect the product. There are several pricing strategies used for prescription drugs and how to execute the best method for the health care organization. Pricing Strategies According to Khoso, Rizwan,…show more content…
From the point of view of a pharmaceutical marketer, setting the correct price for the product is essential and charging too much can lead to poor market penetration along with low market share (Eon van der & Bredenkamp, 2013). If the price is too low, this can encourage high market share, but can result in poor profit margins (Eon van der & Bredenkamp, 2013). The main goal for prescription drugs is to decrease the cost. Placing too much emphasis towards managing the expenses are more likely to lead to a bigger medical costs, poor customer outcomes, and benefits that provides little true value (Jones, 2003). Implementation of an inclusive generic drug program, sponsors and employers should take in consideration for the following: “utilization management, targeted disease intervention, generic sampling program, and managed formulary” (Jones,…show more content…
International Journal of Pharmaceutical and Healthcare Marketing, 7(2), 104-119. Retrieved from https://search-proquest-com.ezproxy.trident.edu/docview/1370348685?accountid=28844 Jones, J. D. (2003). Developing an effective generic prescription drug program. Benefits Quarterly, 19(1): 14-18. Khoso, I., Rizwan, R. A., & Ahmed, J. (2014). Pricing strategies in pharmaceutical marketing. The Pharma Innovation, 3(7), 13-17. Retrieved from https://search-proquest-com.ezproxy.trident.edu/docview/1924627775? accountid=28844 McDonald, M., & Meldrum, M. (2013). The Complete Marketer : 60 Essential Concepts for Marketing Excellence. Philadelphia, PA: Kogan Page. Moschis, G. P., & Bovell, L. (2013). Marketing pharmaceutical and cosmetic products to the mature market. International Journal of Pharmaceutical and Healthcare Marketing, 7(4), 357-373. Retrieved from https://search-proquest-com.ezproxy.trident.edu/docview/1462482621?accountid=28844 Principles of Marketing. (2015). Retrieved March 14, 2018, from https://open.lib.umn.edu/principlesmarketing/chapter/15-3-pricing-strategies/ Sturm, A., & Tiedemann, F. (2013). Developing a consumer pricing strategy. Healthcare Financial Management, 67(5), 104-8. Retrieved from https://search-proquest-com.ezproxy.trident.edu/docview/1419718330?

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