Pricing Strategies In Health Care

Pricing Strategies In Health Care

Introduction

Every sector of the business involves the strategic approaches in setting up the prices that gives the competitive advantages over others. In the health care organizations various strategies are being used in taking into consideration the costs in order to set the strategic prices. The careful decisions on the pricing strategies and the marketing channels are very important for the competitive success of the health care organizations in the today's scenario of fast pace competition. In the health care organizations, the pharmaceutical drugs and the medical devices and equipments are the areas that involve the careful cost allocations and the strategic prices settings. The functions of the adequate pricing even in the health care sector are to enhance the brand image among the competitors in the industry. It is important for the health care sector to attract the healthcare providers by ensuring that they provide the competitive and affordable pricing mix to attain their loyalty. In the today's changing scenarios of the economic situations, the customers in the health care sectors also desire the best service or product that they can get for minimum prices.

In setting the pricing by taking the costs into considerations, the organization whether it is the pharmaceutical drug manufacturing organization or the medical devices and equipment making organization, need to develop the pricing strategies by keeping in view the five main strategic objectives. These include the survival in the industry with good market reputation, the attainment of the maximum profits, getting the maximum market share, and the objective to get the market leadership among the competitors. The pricing strategies are devised by keeping in view the short term as well as the long term objectives of the firm and by keeping in view and analyzing the competitor's next step ...