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Specifics of the International Market in North America Essay

Market Size

Healthcare Solutions consulting firm that is planning its launch in the North American market and Europe should employ better marketing segmentation criteria. The criteria that the consulting firm uses to classify its customers are measurable, responsive to marketing mix and they are reasonable (Kotler & Keller, 2007).

Therefore, the segmentation criteria that the consulting firm should apply include economic, geographic, demographic, behavioral, and psychographic ones. Under economic segmentation, the market can be categorized according to the levels of income. As a result, this classification includes people from high-income, medium-income and low-income categories.

Geographic segmentation acknowledges variables climate, population growth, region and population density (“Market Segmentation”, 2010). The Healthcare Solutions Consulting firm invests more in regions with high population growth and density.

Moreover, demographic segmentation relies on human variables including age, ethnicity, gender, occupation, education, and family status (“Market Segmentation”, 2010). These variables are different aspects and the consulting firm applies then only on areas deemed essential in the sense that those factors do not affect the consumer choices and preferences.

Behavioral segmentation enables the consulting firm to use variables such as price sensitivity rate of usage, benefit sought, and brand loyalty (“Market Segmentation”, 2010). In this area, the Healthcare Solutions Consulting firm uses such attributes to improve on the quality of its healthcare services.

In addition, psychographic segmentation helps the consulting firm determine the consumers’ lifestyle, attitude towards healthcare services and values attached. It can be proposed in this plan that through the segmentation, Healthcare Solutions firm is able to understand the customers’ preferences and desires, thus making informed choices during distribution of the Healthcare services.

Growth Rate

The growth rate of Healthcare Solutions consulting firm in North America and Europe can be analysed through micro and macro-environment analysis. For instance, microenvironment entails the analysis of the immediate external environment in which Healthcare Consulting firm operates.

In this regard, the analysis focuses on the healthcare solutions market, competitive environment and the costs involved (Kotler & Keller, 2007). This can only be achieved by continuous surveys of the healthcare solutions competitors’ actions in this market. Under Healthcare Consulting firm’s strategic marketing plan/approach, it would continuously monitor potential benefits/opportunities offered by the new line of products/healthcare solutions to ascertain its financial viability


The profitability Healthcare Solutions consulting firm can be determined by matching the company’s expenses against its revenue earnings. In order to do this evaluation, it is better to use the earned value analysis technique. Earned value analysis is a method of performance measurement.

It is a program management technique that uses “work in progress” to indicate what will happen to the marketing plan in the future. Earned value goes one step further and examines the actual accomplishment of the marketing plan. This allows the marketing managers to have a greater insight into the potential risk areas. It is a set of guidelines that guides the firm’s management control system.

Channel Strategy

Healthcare Solutions consulting firm to be launched in the North American market and Europe should use appropriate channel strategy. With increasing intense competition witnessed in many organizations today, most firms are obliged to adopt multiple channels strategies for several reasons.

As a result, head on channel strategy becomes inevitable in multi-channel environment. The effect of this competition is a sharp increase or decrease in demand for one of the chosen channels. Multichannel has been adopted for cutting costs to meet varied consumer needs, covering different marketing segments and increasing profits.

Decision makers are in dilemma over introduction of channels to meet market demands and managing channel strategy. As a result, decision makers are obliged to rationally and systematically analyse the situation and develop mechanisms of managing channel strategy to achieve channel structures that are optimally working.

However, managing channel strategy is not simply due complex nature of channel variables (Kotler & Keller, 2007). A channel equation can be applied in making decisions. The channel conflict/strategy equation is given by the following formula.

Strategy= ∑ Importance × Frequency × Intensity.

The major variables under consideration in management of channel strategy are healthcare service, price, healthcare service, profit and consumption. While making decision on channel strategy management, a simulation model should be developed to manage these variables, which are based on the equation.

A decision maker needs to analyse and understand the interaction of supply, demand and price before making decision on appropriate channel to use. An increase in demand of a healthcare service will cause a proportional price and profit increase at a constant cost.

In such a market, many suppliers or healthcare solutions providers will try to increase healthcare service/service in the market which in turn calls for more investors. Consequently, price will go down due to increase in supply. This will also affect the demand in substitute healthcare services.

Adam Smith’s corners stone of four channels (hypermarkets, wholesalers, direct sales and e-commerce) is an example of useful channel strategy management decision model. One needs to create an understanding of interactions of the variables to develop a healthcare service system similar to Smith’s channel. It will be realized that it is consumption or healthcare service of a given channel that will be minimal in a given period.

Allocation of healthcare service becomes a vital decision tool for a decision maker who needs to reduce channel strategy conflicts. Healthcare service coverage, which is the balance between supply and demand, is vital for channel management decisions. Channels with high rate of consumption are given more priority than those in low consumption.

High prices will automatically reduce healthcare service value to the consumers in comparison to competitive healthcare services. The healthcare services in this case, are the healthcare solution services. In the case of healthcare suppliers, high prices make decision makers allocate more healthcare services for maximum profit. Channel management and pricing also vary with additional value each adds to price. However, this depends on the channel used.

Pricing Strategy

Pricing of the health services that Healthcare Solutions consulting firm intends to provide in the North American market and Europe are very significant in determining the overall sales volume. This implies that the firm will need to offer better quality and affordable healthcare services, which attract more customers.

As a result of this pricing strategy, the firm will be in a good position to attract and retain many clients. This will also involve good public relation since it is a vital tool for sales and marketing (Newsom, Turk, & Kruckeberg, 2004).

Evaluate the Implications

A good channel strategy is necessary in every firm. The channels are vital for creation of different efficiencies and marketing strategies. However, development of new channels comes with new challenges, which decisions makers are oblidged to manage.

Channel conflict management calls for understanding of marketing channel equitions, vital intaracting variables and the interconnection of different webs in creation of profits and costs cuts. Different scholars have developed various models of channel management underlying simple concept of channel conflict equation.


Kotler, P., & Keller, K. L. (2007). A Framework for Marketing Management. Upper Saddle River, NJ: Pearson Prentice Hall.

Market Segmentation (2010). Retrieved from <>

Newsom, D., Turk, J. V., & Kruckeberg, D. (2004). This is PR: The Realities of Public Relations. Belmont, CA: Thomson-Wadsworth.

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