Competency 3 Assessment

East Chestnut Regional Health System has now asked you for a Pro Forma Income Statement for a new or revised product you recommend the organization offer. You have decided you need to break your work into 4 parts:

• Market size calculation
• Breakeven analysis
• Pro forma income statement
• Marketing plan considerations

For this project, collaborate with a classmate, a work colleague, or a respected professional in the health care industry by sharing this portion of your marketing plan.

Review .

Part I: Market Size Calculation

Assume ECRHS is located in the market where you live or work.

Visit the University Library page. From this page, visit the United States Census Bureau sites linked under the Demographic Data heading.

Make a rough estimate of the need for health care products or services based on your areas population demographics, using age, gender, and in some cases, race. On these sites, you can find information on the total U.S. market for health care, as well as the number of U.S. consumers who fit your target market segmentation.

Determine the local market for the product or service you recommend for East Chestnut Regional Health.

Multiply the number of people who might need your recommended ECRHS product or service by the estimate of market share you believe ECRHS can achieve.

• Example: if 6,000 women might need obstetrical services, and ECRHS has a potential 40 percent market share, this results in a market size of 2,400 patients for ECRHS.

Prepare a 150- to 300-word summary of your market determination process.

Part II: Breakeven Analysis

A breakeven analysis determines the number of products or amount of service that must be sold to consumers for the organization to break even (cover the costs of production or provision of the service).

Use the to prepare your analysis.

Prepare a 150- to 300-word summary of your breakeven analysis that includes the following:

• The fixed and variable costs of production or service provision
• The market price and number of units sold at that price
• The number of units of product or service that need to be sold to cover the fixed and variable costs at the price level

Part III: Pro Forma Income Statement

A pro forma income statement shows the expected revenue of a product minus the expected costs (which equals the resulting profit). It will also show if producing and selling a product might result in a loss. Remember, costs include not only production, but the resources needed to sell the product (advertising, sales rep salaries, office expenses, etc.).

Create a pro forma income statement for the new product or service you are recommending for ECRHS. Use the . Include the following for 1 year:

• Projected sales volume in units and revenue
• Projected cost of goods/services
• Projected marketing expenses
• Projected net income

Prepare a 500-word summary statement of your pro forma income statement for ECRHS for the new or revised existing product or service you have recommended. Include the following:

• Summary of market size calculation (150 words)
• Summary of breakeven analysis (150 words)
• Summary of projected profit (200 words)

Part IV: Marketing Plan Considerations

Now that you have a better understanding of your market and the finances of the organization, you must consider how economics and finances can affect your marketing strategy.

Write a 350- to 500-word analysis of how specific economic or financial issues will affect marketing strategies for the new ECRHS product or service.

Cite your sources.

• Make sure to give credit to any sources you use by including both in-text citations and a list of references. You can see how to do this in the APA 7 manual or in the . Here’s a quick example:
• In-text citation example: According to Hubbart (2023), resistance to change is . . .
• Reference example: Hubbart, J. A. (2023). Organizational change: The challenge of change aversion. Administrative Sciences, 13(7), 162. https://doi.org/10.3390/admsci13070162
• You don’t have to follow this citation style perfectly, but it’s important to show which ideas are yours and which come from other places when you’re doing your assignments.

Download and review the .

Submit your assessment.

Note: To pass a Competency Assessment you must receive at least a Meets Expectations (ME). You can resubmit your Competency Assessment a maximum of 2 times. You will receive feedback for your Competency Assessment. Use that feedback to make improvements before revising and resubmitting. This is an opportunity to learn and to build mastery.