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On many instances medical groups have partially or solely depended on the primary care physician practices in times of referrals. This is however changing nowadays where apart from the physician activities carried out; an evaluation on the customer base of the referrers has also proven significant. This will aid in fostering better relations which will in return improve clinical quality. Considering a customer base rather than the individual patient in a case of referrals is very critical in developing customer loyalty and maintaining value in the business. It is easier to develop good customer interactions by building a wider base of the clients than working with a single client basis. This is a result of referral business turning to be the best new business. Further, it is important to note that 8% of the existing business is from 20% of the customer base. Therefore, it is clear that maintaining customers and developing customer loyalty brings significant value to a company. It is also argued that an increase in 5% in customer loyalty can increase profitability by 25-80 % (M3 Planning, 2012).

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Though integration of a large customer base to work with for medical groups and health organization has brought about clinical quality and value to a patient, other consideration should be put in place to further boost customer satisfaction. A medical organization can ensure that it employs experienced staff and also operates along customer driven initiatives. As well, a health care can set up emergency response unit and customer care unit. This will aid in aligning customers’ complains and complements into value and satisfaction to them. A medical care center should also consider engaging in innovations in providing services to the patients (Paladimo, 2006).

The idea of the vice president of a consumer food product company during the interview for the large academic medic center marketing director position might have been naive. The argument brought forward was that marketing food was no different with hospital and hotel. This may not be true since all these industries posses’ different market and customer characteristics. Thus their marketing would be based on the customers’ tastes and preferences which will differ according to the industry (Smith, 2010).

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An advertising copy of a managed care plan for primary demand would only consider how it would meet the basic needs of its customers. Therefore, the plan would include the sections for marketing strategy to use, resources to use such as finances and expected revenue return. This plan considers the overall market as its target. Contrary, a managed care plan for a selective demand would focus on a particular customer group in the market such as the children.

Prestige pricing may be considered by charging high fees for the services in order to be deemed that they are of high quality since the fees may be charged at high prices to show high quality (Psychological Pricing Center, 2013). In case of bundled pricing, the organization can consider a common fee for someone who subscribes to all the activities. Price line will be done by setting maximum and minimum fees for each activity.

Vertical integration is achieved where a company expands to own the distribution and supply channels in order to create economies of scale. The university may partially own the five person survey group and the manufacturer so that it can control its service provision by minimizing on costs (Investopedia, 2013).

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An urgent medical care that treats minor emergencies can use the wheel of retailing concept by low pricing and low margins but to later move gradually into higher pricing and high service operations for higher revenues. This will be achieved by expanding in a large medical center where urgent and serious emergencies can be treated (MBASkool, 2008).

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