â??Health Services Strategic Marketing 4-6 Page Paper

Health Services Strategic Marketing Case Study 2: Stopping Outshopping Read the case study titled â??Stopping Outshoppingâ?, use the Internet to research similar marketing strategies in the health care industry. Stopping Outshopping Case Study is Attached. Write a four to six (4-6) page paper in which you: (4-6 pages does NOT include cover page or references page) Based on the textbookâ??s summary of Timothyâ??s philosophy of continually striving for excellence, determine whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services.Examine the potential lessons that the â??Stopping Outshoppingâ? case could teach health care executives about complacency.Evaluate the potential value of Michael Porter’s Five Forces analysis and SWOT Analysis for effective decision making, in its ability to help Scarlet Hospital protect its market share and thus decrease the chance of losing patients to other institutions in Salem.Appraise the value of the Balanced Scorecard model in its ability to help Scarlet Hospital executives reinforce its defensive marketing strategy.Propose a one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet Hospital should deploy in order to turn the table on Salam-based health care providers and improve its competitive marketing position.Use at least five (5) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.Include a cover page containing the title of the assignment, the studentâ??s name, the professorâ??s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Examine the marketing research process and market segmentation strategies in the health care industry.Integrate the SWOT Analysis into viable recommendations to meet the health care services organizationâ??s operating requirements.Analyze the components of the balanced scorecard and conduct trend and ratio analysis to assess health strategic marketing.Apply Michael Porter’s Five Forces analysis for effective decision making to efficiently utilize health services resources and achieve organizational goals.Explain the impact that the population and societal, competitive, and financial forces have on health care services.Use technology and information resources to research issues in health services strategic marketing.Write clearly and concisely about health services strategic marketing using proper writing mechanics. Case Study 2: Stopping Outshopping Criteria Unacceptable Below 70% F Fair 70-79% C Proficient 80-89% B Exemplary 90-100% A 1. Based on the textbookâ??s summary of Timothyâ??s philosophy of continually striving for excellence, determine whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services. Weight: 15% Did not submit or incompletely determined whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services. Partially determined whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services. Satisfactorily determined whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services. Thoroughly determined whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services. 2. Examine the potential lessons that the â??Stopping Outshoppingâ? case could teach health care executives about complacency. Weight: 15% Did not submit or incompletely examined the potential lessons that the â??Stopping Outshoppingâ? case could teach health care executives about complacency. Partially examined the potential lessons that the â??Stopping Outshoppingâ? case could teach health care executives about complacency. Satisfactorily examined the potential lessons that the â??Stopping Outshoppingâ? case could teach health care executives about complacency. Thoroughly examined the potential lessons that the â??Stopping Outshoppingâ? case could teach health care executives about complacency. 3. Evaluate the potential value of Michael Porter’s Five Forces analysis and SWOT Analysis for effective decision making, in its ability to help Scarlet Hospital protect its market share and thus decrease the chance of losing patients to other institutions in Salem. Weight: 20% Did not submit or incompletely evaluated the potential value of Michael Porter’s Five Forces analysis and SWOT Analysis for effective decision making, in its ability to help Scarlet Hospital protect its market share and thus decrease the chance of losing patients to other institutions in Salem. Partially evaluated the potential value of Michael Porter’s Five Forces analysis and SWOT Analysis for effective decision making, in its ability to help Scarlet Hospital protect its market share and thus decrease the chance of losing patients to other institutions in Salem. Satisfactorily evaluated the potential value of Michael Porter’s Five Forces analysis and SWOT Analysis for effective decision making, in its ability to help Scarlet Hospital protect its market share and thus decrease the chance of losing patients to other institutions in Salem. Thoroughly evaluated the potential value of Michael Porter’s Five Forces analysis and SWOT Analysis for effective decision making, in its ability to help Scarlet Hospital protect its market share and thus decrease the chance of losing patients to other institutions in Salem. 4. Appraise the value of the Balanced Scorecard model in its ability to help Scarlet Hospital executives reinforce its defensive marketing strategy. Weight: 20% Did not submit or incompletely appraised the value of the Balanced Scorecard model in its ability to help Scarlet Hospital executives reinforce its defensive marketing strategy. Partially appraised the value of the Balanced Scorecard model in its ability to help Scarlet Hospital executives reinforce its defensive marketing strategy. Satisfactorily appraised the value of the Balanced Scorecard model in its ability to help Scarlet Hospital executives reinforce its defensive marketing strategy. Thoroughly appraised the value of the Balanced Scorecard model in its ability to help Scarlet Hospital executives reinforce its defensive marketing strategy. 5. Propose a one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet Hospital should deploy in order to turn the table on Salam-based health care providers and improve its competitive marketing position. Weight: 15% Did not submit or incompletely proposed a one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet Hospital should deploy in order to turn the table on Salam-based health care providers and improve its competitive marketing position. Partially proposed a one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet Hospital should deploy in order to turn the table on Salam-based health care providers and improve its competitive marketing position. Satisfactorily proposed a one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet Hospital should deploy in order to turn the table on Salam-based health care providers and improve its competitive marketing position. Thoroughly proposed a one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet Hospital should deploy in order to turn the table on Salam-based health care providers and improve its competitive marketing position. 6. 5 references Weight 5% No references provided Does not meet the required number of references; some or all references poor quality choices. Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices. 7. Clarity, writing mechanics, and formatting requirements Weight: 10% More than 6 errors present 5-6 errors present 3-4 errors present 0-2 errors present d
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chapter
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32
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Stopping Outshopping
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SNAPSHOT
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© Jones & Bartlett Learning, LLC
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Institution:
Scarlet Hospital, a 350-bed, not-for-profit provider of general
© medical
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Bartlett Learning, LLC
© Jones & Bartlett L
and surgical services
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Locations:
Walnut Grove (population 25,454), a small community located in
the Mountain region of the United States
SalemLearning,
(population
187,452), a large metropolitan
area
© Jones & Bartlett
LLC
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& located
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approximately
50
miles
to
the
east
of
Walnut
Grove
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Character:
Mr. Timothy Rogers, President and Chief Executive Officer, Scarlet
Hospital
Bartlett Learning,Context:
LLC
© Jones & Bartlett Learning, LLC
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OR DISTRIBUTION
In this case, transportation infrastructure
improvements
force the
top executive of a once-isolated hospital to consider the impact of
patients opting to receive medical care in a neighboring, larger city.
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Timothy Rogers, President and Chief Executive Officer of Scarlet Hospital,
has a dilemma. His institution is facing an interesting and potentially
threatening situation which ironically is the result of something beneficial
occurring
in the community.
Specifically, an interstate
highway
is beingLearning, LLC
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extended
from Salem, a large metropolitan areaNOT
of 187,452
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to DISTRIBUTIO
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171
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© Jones & Bartlett Learning, LLC
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Walnut Grove, a small community of 25,454 residents located approxiNOT FOR SALE OR D
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mately 50 miles away, which serves as the home of Scarlet Hospital.
This new transit route, located in the Mountain region of the United
States, will reduce the travel time between Salem and Walnut Grove from
just over 1 hour via a winding two-lane local highway to approximately
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LLCfour-lane interstate highway,
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accessibility between the two cities and
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this
development has the potential to yield many benefits for Walnut Grove,
it also will usher in a new set of challenges to every business in the city, as
Walnut Grove will become less distantâ??at least in terms of travel timeâ??
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to the larger
burgeoning
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to attract new business from outer-lying
communities.
Needless
to say,
this has Timothy concerned, knowing that Scarlet Hospital will face challenges associated with retaining its patient population, given improved
access to Salem and its four major medical centers.
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Timothy
served in his
current position
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past
14 years
he hasOR
witnessed
many challenges over that time period.
Dealing with competition, however, has not been much of an issue in recent years, making the threat associated with the new interstate an especially challenging matter. A 350-bed, not-for-profit medical care provider,
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Learning,
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Scarlet Hospital
is the only
hospital in Walnut Grove,
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between
two
competing hospitals over a decade ago,
is the
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healthcare provider within a 50-mile radius. The distance between Scarlet
Hospital and the larger metropolitan areas teeming with healthcare institutions has benefited the facility in that consumers in the marketplace historically have
been inclined to look to Scarlet
Hospital
for delivery
of healthcare
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services,
viewing
more
distant
facilities
simply
to
be
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reach.
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In fact, the only competition in the marketplace has been in the area
of outpatient care, as Walnut Grove is the home of several medical practices that compete with Scarlet Hospital on several service fronts. All in
all,©Scarlet
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insulated market, softening its competitive prowess, but not its commitNOT FOR SALE OR
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ment to quality, thanks to Timothyâ??s philosophy of delivering the highest
quality medical care possible.
Whereas some institutions would use this isolation to provide secondrate services, taking advantage of the captive market, Timothy has always
© Jones & Bartlett Learning, LLC
© Jones & Bartlett Learning, LLC
believed in delivering the best and striving to outdo past efforts at ­every
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opportunity. He, too, demands this commitment from all employees.
© Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176
Bartlett Learning, LLC
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S t o p p i n g O u t s h o p p i n g â??â??â??â?? 173
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For this reason, Scarlet Hospital has maintained standards of excellence
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in care delivery that rival those of institutions in much larger cities, giving
him confidence that the hospital will be able to compete in the quickly
approaching, more competitive environment.
When the highway extension was announced 1 year ago, Timothy
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called aLearning,
meeting with
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team andLearning, LLC
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outlined
the situation, stating that the team would
needFOR
to devise
a defensive plan for deployment no later than 6 months in advance of the opening of the highway. He also advised everyone to keep a watchful eye on
the marketplace, reporting any indication of competitive activity immediBartlett Learning,
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He noted that, just as in any
market, &
some
outshopping
will occur,
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with patients looking to externalNOT
markets
forSALE
institutions
to address their
healthcare wants and needs, but that the increased accessibility to Salem
would likely hasten such. Their job, Timothy insisted, was to ensure that
outshopping did not become epidemic.
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communities of their most valuable and profitable patients. Those patients
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opportunities become more limited, with threatened financial ­viability
and closure being worst case scenarios. The team dedicated themselves to
ensuring that this did not occur.
the 6-month point, Scarlet©Hospitalâ??s
senior
management
team LLC
had
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developed
a
defensive
plan
that
primarily
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the
hospitalâ??s
advertising
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efforts, securing more billboards than it had in previous years, introducing
radio advertisements for the first time in many years, and bolstering other
forms of marketing communication. Scarlet Hospital was fortunate in that
itsJones
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to quality
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were top notch, meaning that upgrades, other than those that naturally
occur within any progressive entity, were not necessary to gain parity with
larger institutions. The team felt confident that their actions would protect
Scarlet Hospitalâ??s market share and the plan was immediately initiated.
© Jones & Bartlett Learning, LLC
© Jones & Bartlett Learning, LLC
Three months prior to the opening of the highway, Timothy and his
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staff members began noticing local advertisementsâ??mostly billboard
© Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176
Bartlett Learning, LLC
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& Bartlett Learning, LLC
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174â??â??â??â?? C hapter 32
© Jones & Bartlett Learning, LLC
© Jones & Bartlett L
and newspaper ads, and a few radio spotsâ??promoting healthcare instituNOT FOR SALE OR D
NOT FOR SALE OR DISTRIBUTION
tions in Salem. Much as they anticipated, Salemâ??s healthcare institutions
viewed Walnut Groveâ??s population as a source of growth, given upcoming
improvements in accessibility. The advertisements generally stressed that
Salem would soon be within easy reach of Walnut Grove. That was trou© Jones & Bartlett
Learning,
LLC
Jones
& the
Bartlett
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to Timothy
and his senior managers,©but
perhaps
most Learning, LLC
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disturbing
pertained to overtones in the advertisements
health
care delivered in the â??big cityâ? is better.
Timothyâ??s greatest concern was that the advertisements were creating the
perception that care is perhaps less effective at Scarlet Hospital. Given this,
Bartlett Learning,
LLCclear that Scarlet Hospital,
© Jones
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LLC
it was very
whose&advertisements
served priSALE OR DISTRIBUTION
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OR DISTRIBUTION
marily as reminders of the excellentNOT
quality
and SALE
care delivered
by the hospital, would need to be more aggressive in its marketing communications,
as it was apparent that the battlefront would be one of perception. Waging
war on this front would no doubt require intensive planning, something
© Jones
& Bartlett
Jones & Bartlett L
Timothy
vowed
to initiateLearning,
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in an effort to address the©most
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that Scarlet
Hospital has witnessed in many years. NOT FOR SALE OR D
DISCUSSION
1. Courtesy
of Timothyâ??s
striving&for
excel- Learning, LLC
© Jones & Bartlett
Learning,
LLC philosophy of continually
© Jones
Bartlett
Scarlet Hospital was well prepared to compete
with SALE
establishNOT FOR SALElence,
OR DISTRIBUTION
NOT FOR
OR DISTRIBUTIO
ments in Salem even before the highway improvements mandated
such. What lessons does this case teach healthcare executives about
never becoming complacent, despite being in environments that
Bartlett Learning,might
LLC permit such luxuries? © Jones & Bartlett Learning, LLC
2.
appears that the healthcare
institutions
in Salem
are making
It
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NOT
FOR SALE
OR DISTRIBUTION
strong moves to attract patients from Walnut Grove, threatening
Scarlet Hospital. Timothy indicated that, given the competitive
advertisementsâ?? suggestions that â??big cityâ? medicine is better, the
battlefront will be one of perception. What do you believe he meant
© Jones & Bartlett Learning, LLC
© Jones & Bartlett L
by this statement?
NOT FOR SALE OR
NOT FOR SALE OR DISTRIBUTION
3. Timothy notes that the nature of competitive advertisements placed
by Salem-based healthcare institutions in Walnut Grove calls for
Scarlet Hospital to be more aggressive in its marketing communications efforts. Based on your knowledge of marketing and the infor© Jones & Bartlett Learning, LLC
© Jones & Bartlett Learning, LLC
mation supplied in the case, how would you go about addressing
NOT FOR SALE these
OR DISTRIBUTION
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advertisements and why would you take such steps?
© Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176
Bartlett Learning, LLC
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© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTION
& Bartlett Learning, LLC
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© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTION
S t o p p i n g O u t s h o p p i n g â??â??â??â?? 175
© Jones & Bartlett Learning, LLC
© Jones & Bartlett L
4. The case provides a reasonable amount of detail regarding Scarlet
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Hospitalâ??s defensive plans. Based on your knowledge of marketing
and the information supplied in the case, provide a critical review of
Scarlet Hospitalâ??s defensive plan. If you were an employee of Scarlet
Hospital and Timothy asked you how you would go about shoring
© Jones & BartlettupLearning,
LLC
© Jones & Bartlett Learning, LLC
the plan, what
would you suggest and why?
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DISTRIBUTION
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OR DISTRIBUTIO
the case provides limited information,
seems that
Although
Timothy is completely discounting a potentially very positive outcome resulting from the new interstate highway, namely that it
might provide a chance for Scarlet Hospital to attract patients from
Bartlett Learning, LLC
© Jones & Bartlett
the Salem marketplace. Outshopping,
therefore,Learning,
might be a LLC
real
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NOT
FOR
SALE
OR
DISTRIBUTION
concern for healthcare establishments in both Walnut Grove and
Salem. Timothy outlined his defensive strategy, but did not address
an offensive one. Think deeply on the possibilities, given the scenario provided in the case, and formulate an offensive strategy that
© Jones
LLC to turn the tables on©SalemJones & Bartlett L
could&beBartlett
deployedLearning,
by Scarlet Hospital
NOT FOR SALE OR D
NOT FOR
SALE OR
DISTRIBUTION
based healthcare
providers.
© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTION
Bartlett Learning, LLC
SALE OR DISTRIBUTION
© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTIO
© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTION
© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTION
© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTION
© Jones & Bartlett L
NOT FOR SALE OR
© Jones & Bartlett Learning, LLC
NOT FOR SALE OR DISTRIBUTIO
© Jones & Bartlett Learning, LLC. NOT FOR SALE OR DISTRIBUTION. 7176
Bartlett Learning, LLC
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© Jones & Bartlett Learning, LLC
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