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Economics, Marketing, and Hr in Healthcare - General Overview

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Economics, Marketing, and Hr in Healthcare - General Overview

Economics, human resources, and marketing are important concepts to grasp as an individual involved in an administrative position in public health. The success of an administrator is dependent upon the ability to comprehend the relationship amongst the aforementioned topics. The Four P’s (Product, Price, Place, and Promotion) of the Social Marketing Theory serve as an excellent model to describe the cyclical nature of economics, human resources, and marketing.

To be a success in promoting a product of any kind, one must first have a clear understanding of the target market. Understanding the demographics of the population you are targeting will help determine if your product is marketable. Once this has been established, the next step is to identify the needs and desires of potential buyers, the size of the market, societal expectations, and to be able to predict future changes which could potentially cause obsolescence.

It is also important to have trust in the product from the beginning. Faith in a product will carry over into interactions with a potential consumer. As an administrator or an individual working for the company’s Human Resources department, it is prudent to select individuals for a job who believe in the product, and will therefore be able to market it effectively. For this reason, Human Resource personnel should be proficient in reviewing potential employee rйsumйs, and be aware of potential “red flags” that may come up during the interview process. For example, rйsumйs should be checked and double-checked for gaps and overlaps, shifting dates, and exaggerated job responsibilities. If this occurs, interviewers should ask permission to verify the information provided.

The product’s price is determined based on demand, the value the product holds to the consumer, production costs, and competitors’ prices. It can be beneficial to conduct a test market in an isolated area to serve as a control. Doing so will help determine how much consumers are willing to pay for the product. From an economic standpoint, the value a consumer places on a product alone has the potential to shift the supply and demand curve.

The place in which the product is carried and sold, and from which it is promoted, is critical. Place also refers to the site from which the business operates. The success of a business is, for the most part, dependent upon the performance of its employees. Therefore, an administrator should make documentation a priority for each employee. The Human Resource department should maintain employee records, which may include paper and electronic files, video tapes, pictures, emails, and telephone conversations. Documentation can be used as a reference for an administrator when misunderstandings, conflicting personalities, and behavioral problems occur on the job. The administrator can see if behavioral problems, for example, are a pattern for a particular employee, and will have the number of infractions that have occurred in a given period of time documented. Performance appraisals should also be kept as records, and should occur once every year.

Employee satisfaction is highly correlated to the marketability of a product. This means that a satisfied employee is more likely to perform optimally on the job, and produce a higher-quality product. A satisfied employee will also have more positive things to say, and because word of mouth is such a powerful marketing tool, it will greatly benefit the company. Also, high turnover rates can prove costly for businesses. For these reasons, a strong Human Resources department is crucial for the success of any business. Moreover, an administrator will want to consider employee benefits, which will assist in attracting

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