What was the variance due to the lack of enrollment success

Assignment Help Marketing Management

Reference no: EM133131684 , Length: 6 pages

Question: Write a 6-page paper in APA format (not including the cover page and reference page). Begin by reading the following background information:

Background information. A large national MCO recently entered a major Southwestern metropolitan market. The managed care plan anticipated that, with an intensive advertising campaign and sales effort, it would have 75,000 subscribers after two years. It planned on charging a premium of $1,800 per subscriber. Marketing and personnel costs directly related to this effort were anticipated to be $250 per subscriber. Before the MCO's entry into the market, two of the extensive tertiary facilities in the region began to offer their own managed care plans in a PHO arrangement with their medical staff. The result was aggressive discounting of the managed care premiums. The national MCO chain dropped its premium to $1,400 per subscriber. Direct costs remained the same, yet because of the competition, the national MCO was only able to enroll 45,000 subscribers.

However, was their effort a success? For this essay, calculate the following values and use them as part of an argument to justify whether their efforts were successful:

- Calculation #1: What was the variance because of the failure to get the gross marketing contribution?
- Calculation #2: What was the variance due to the lack of enrollment success?

Essay requirements. Write a 6-page paper in APA format (not including the cover page and reference page). Your essay must use the background information, calculations, and at least five peer-reviewed journal articles from LIRN to address the following:

- Argue whether the MCO's enrollment campaign was a success.

Attachment:- Metropolitan market.rar

Reference no: EM133131684

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