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Distribution

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Words: 275

Pages: 1

80

Distribution
Name
Institutional Affiliation
Question 1
In the case under consideration, the two health care providers have opened additional facilities. The facilities are meant to ensure the business can reach their consumers while others are intended to offer specialized care such as the Brain Institute in Nevada. In terms of distribution intensity, this can be classified as selective distribution (Berkowitz, 2016). The new centres are meant to serve particular needs based on the needed expertise. The change in distribution intensity works well in situations where the health care providers are trying to establish specialty clinics.
Question 2
Vertical integration is meant to ensure processes can achieve the desired ends. In the case of the academic centre, this can be classified under the corporate vertical marketing system. This applies to a situation where the health care facilities are placed under the same corporate umbrella. The five-person general surgery group can be classified under the administered vertical marketing system. This applies to a situation where there is coordination among the different members under common ownership. The health care providers try to come up with specialized teams that may help achieve targets such as controlling patient referrals (Berkowitz, 2016). The manufacturer of durable medical equipment can be classified under the contractual vertical marketing systems. This arises in a situation where members at the same level in the distribution channel may enter into an agreement.

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This is meant to ensure they can control particular aspects of the distribution channel such as manufacturing.
Question 7
The community hospital under consideration is in quadrant three where they have a broad product line but have failed to add value to the products. For the hospital to move to the second quadrant, they would have to ensure their product line is specific and they can continue to add value to the products (Berkowitz, 2016). For the entity to move to the first quadrant, they would have to ensure the products developed in the second quadrant can be improved on and more product lines can be established. The hospital would also need to incorporate value-addition mechanisms.
References
Berkowitz, E. (2016). Essentials of health care marketing (4th ed.). Jones & Bartlett Learning.

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