UBC Phar400 Marketing Pharmacy Professional Services-25Oct2013
•Download as PPTX, PDF•
4 likes•2,140 views
Presented to 4th year Pharmacy students at UBC Pharmaceutical Sciences in the Phar400 Pharmacy Business Management course. As part of the curriculum students are required to work in teams to create a new sustainable professional clinical service supported by a business plan. At the end of the semester the teams present in a "pitch" to classmates and a panel of judges. Winners are determined by their peers. In this fourth presentation of the semester we focus on Marketing healthcare professional services. We define marketing and explain how the marketing concept applies to marketing professional services. Learning objectives: >Brand and Branding >Marketing 101 >Managing the Marketing Mix >Marketing Pharmacy Professional Services
Recommended
Recommended
More Related Content
What's hot
What's hot (19)
Viewers also liked
Viewers also liked (20)
Similar to UBC Phar400 Marketing Pharmacy Professional Services-25Oct2013
Similar to UBC Phar400 Marketing Pharmacy Professional Services-25Oct2013 (20)
More from Gerry Spitzner
More from Gerry Spitzner (10)
Recently uploaded
Recently uploaded (20)
UBC Phar400 Marketing Pharmacy Professional Services-25Oct2013
- 1. UBC – Phar400 | Pharmacy Management pharmacySOS.ca | Gerry Spitzner October 25 , 2013
- 2. Universal terms used in Marketing. And acronyms. When I refer to product or service = the same thing. When I refer to patients, customers or clients; all are the same person. When I refer to “you” or “your”…it‟s a generic term respectfully referring to you as the Pharmacist, Pharmacy Mgr or Owner or the Pharmacy itself. pharmacySOS.ca | Gerry Spitzner 2
- 3. Objective: Define marketing and explain how the marketing concept applies to marketing professional services. Thoughtstarters/important insights Brand and Branding Marketing 101 Managing the Marketing Mix Marketing Pharmacy Professional Services pharmacySOS.ca | Gerry Spitzner 3
- 4. Marketing is the most often misunderstood business function. pharmacySOS.ca | Gerry Spitzner 4
- 5. “Push” vs. “Pull” marketing “Push and pray” is the old marketing paradigm which assumes that messages sent out blindly and broadly will magically lead to loyal, long term customers. “Pull and stay” uses an approach that brings the right customers through listening and engagement; enabling the business to build trusted relationships and position it as the customers logical choice; when the customer needs you. pharmacySOS.ca | Gerry Spitzner 5
- 6. In today‟s world, business is built on relationships. ◦ People do business with people they know, like and trust. ◦ Put relationships first – then reap the long term high quality business growth that follows. ◦ Consider the life time value of a customer rather than just as a single one-time transaction. Always think customers for life. ◦ Understand why, how and what products/services they need and want to buy, rather than what you want to sell to them. pharmacySOS.ca | Gerry Spitzner 6
- 7. Hospital Nurses Doctor‟s Receptionists PharmaCare & PharmaNet College of Pharmacy Municipal Landlord Banker Accountant Bookkeeper Lawyer Head Office Staff Neighbouring tenants Doctors Canada Revenue Agency Provincial Government Loss Prevention services Employee Relations & HR Payroll services WorkSafe BC Technology providers Retail Insurance providers 3rd Party providers Wholesaler Manufacturer Suppliers Other Suppliers Delivery Services Competitors Patients and Customers pharmacySOS.ca | Gerry Spitzner 7
- 8. Differentiating yourself is basic to business survival today. You either differentiate, or die! pharmacySOS.ca | Gerry Spitzner 8
- 9. pharmacySOS.ca | Gerry Spitzner 9
- 10. What‟s the difference? pharmacySOS.ca | Gerry Spitzner 10
- 11. Brand is the sum of the perceptions that are held about you, your company and your products/services. ◦ This includes perceptions held by both external and internal audiences and stakeholders. Brand is how people think and talk about you when you‟re not there. ◦ A brand is any person‟s emotional response - a gut feeling about you, an organization, a product, or a service. Your customers & patients own your brand, you do not. ◦ You don‟t have direct control of the perceptions held by them. pharmacySOS.ca | Gerry Spitzner 11
- 12. Branding is the universe of activities you undertake that affects brand perceptions. In order to effectively build a positive brand perception, you must engage in both internal and external activities which are aligned to deliver a consistent impression of who you are, what you do, how you do it and why. pharmacySOS.ca | Gerry Spitzner 12
- 13. pharmacySOS.ca | Gerry Spitzner 13
- 14. Horizontal Brand Vertical Brand pharmacySOS.ca | Gerry Spitzner 14
- 15. “Understanding customers‟ needs, and using that understanding to create, deliver and communicate customer value, are key components of marketing.” (Source: Desselle & Zgarrick, 2005) pharmacySOS.ca | Gerry Spitzner 15
- 16. “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.” Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson “Marketing is the process of creating, communicating and delivering the value of a product or service to customers.” Wikipedia pharmacySOS.ca | Gerry Spitzner 16
- 17. Marketing tools have been used to help pharmacists address many issues in a variety of practice settings, such as… ◦ ◦ ◦ ◦ ◦ ◦ What to charge for a service or product How to appropriately manage the display of merchandise Which OTC‟s to carry from a wide selection of products Whether to establish satellite sites within a clinichospital Whether the use of store brands is an appropriate strategy Whether to use a wholesaler for all products or to order directly from manufacturers (Source: Desselle & Zgarrick, 2005) pharmacySOS.ca | Gerry Spitzner 17
- 18. „As pharmacy continues to evolve, marketing‟s role grows in importance.‟ „As pharmacy continues its evolution from a productfocused to a service-focused practice, marketing, now more than ever, is critical to success of the practice.‟ „Pharmacists must build the demand and supply for pharmaceutical care services simultaneously.‟ (Sources: Desselle & Zgarrick, 2005; Rovers, Currie & Hagel, 1998) pharmacySOS.ca | Gerry Spitzner 18
- 19. NEED: a state of felt deprivation ◦ (e.g. physical needs, social needs). WANT: a desire for a specific satisfier of a need ◦ thus needs become wants, which are shaped by culture and individual personality. DEMAND: a want that is backed by an ability to pay. (Source: Desselle & Zgarrick, 2005) pharmacySOS.ca | Gerry Spitzner 19
- 20. The job of a marketer (and of a health care professional) is not only to meet or respond to people‟s NEEDS, but also to help customers (and patients) learn what they WANT. Marketers (and health care professionals) do not create NEEDS, but they do help to translate NEEDS into WANTS. (Source: Desselle & Zgarrick, 2005) pharmacySOS.ca | Gerry Spitzner 20
- 21. Geographic Segmentation: geographic areas Demographic Segmentation: age, sex, education, occupation, family size, etc. Psychographic Segmentation: lifestyle, interests, values, attitudes Behavioural Segmentation: benefits desired Niche market One-to-one marketing Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 21
- 22. Define the question Collect the data Analyze the data Choose the best solution and implement Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 22
- 23. Determine the best methods to meet the unmet needs of your ideal audience. ◦ How can you develop a product or service with the features and benefits to meet that unmet need? What would they need to use your services and what would they pay for them? Investigate the competition. ◦ Examine their products, services, marketing techniques, pricing, location, etc. One of the best ways to understand your competitors is to use their services. pharmacySOS.ca | Gerry Spitzner 23
- 24. Global factors Technological factors Socio-cultural factors Competitive factors Economic factors Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 24
- 25. What are the needs in the environment? What‟s the situation? Who‟s in the community (target population)? What do they want (needs/wants)? How do they want services delivered? What is the competition? What are the parameters to work in? What will they pay? pharmacySOS.ca | Gerry Spitzner 25
- 26. The Total Product Offer is everything that the consumer evaluates when deciding to buy. This includes both tangibles and intangibles such as price, packaging, store surroundings, speed of delivery, buyer‟s past experience, brand image, brand name, reputation of producer, etc. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 26
- 27. Product Line is a group of similar products or products intended for a similar market. Product Mix is the combination of product lines offered by a manufacturer. • Too much diversification can cause loss of focus. • Maybe a subsidiary or affiliate can be used to improve the marketing of another product line. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 27
- 28. Promotion mix attempts to engage potential customers in an information exchange. Promotional Tools used in exchange of information; ◦ Advertising ◦ Personal selling ◦ Sales promotion ◦ Public relations ◦ Direct Marketing Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 28
- 29. The ultimate goal of all marketing activity is to increase sales and profits. Each product requires its own pricing strategy. Some of the more common strategies are: ◦ Achieving a target return on investment ◦ Building traffic ◦ Achieving greater market share ◦ Creating an image ◦ Furthering social objectives Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 29
- 30. Cost-based pricing: ◦ Producers and retailers often set the price based on the profit margin desired. Demand-based pricing: ◦ Estimate the selling price people are prepared to pay for a product and then subtract the desired profit margin. Competition-based pricing: ◦ Prices are set at, above, or below what the competition is charging. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 30
- 31. Skimming - set price high; maximize profits while no competition Penetration Strategy - set the price low to attract customers and discourage competitors from entering the market Everyday Low Pricing - prices usually set lower than competitors High-low Pricing - higher prices but many sales Bundling - grouping two or more products and selling as one unit Psychological Pricing – Set price points that appear less expensive Price Leadership - one firm dominates the industry, sets the price and all others follow Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 31
- 32. Distribution - the movement of goods from producer to consumer Channel of Distribution - the path taken by goods from the producer to consumer Intermediaries - those in the channel of distribution such as wholesalers and retailers transporting and selling the goods Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 32
- 33. Intensive - puts products in as many retail stores as possible. Selective - uses a preferred group of retailers. Exclusive - use of only one retail outlet in a geographical area. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 33
- 34. Electronic retailing - selling over the Internet Telemarketing - the sale of products by phone Direct selling - selling to consumers in their homes or place of business Direct marketing - selling that directly links the manufacturer or intermediary with the consumer Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 34
- 35. Trademark Brand equity Brand loyalty Brand awareness Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 35
- 36. pharmacySOS.ca | Gerry Spitzner 36
- 37. pharmacySOS.ca | Gerry Spitzner 37
- 38. pharmacySOS.ca | Gerry Spitzner 38
- 39. pharmacySOS.ca | Gerry Spitzner 39
- 40. Find a need Conduct research Identify a target market and ideal customer Design a product/service to meet the need based on research and then conduct product testing (proof of concept) Determine a brand name and design a package Set a price Select a distribution system Design a promotional program Build a relationship with customers Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 40
- 41. Problem recognition Information search Alternative evaluation Purchase decision or no purchase Post-purchase evaluation (cognitive dissonance) Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson pharmacySOS.ca | Gerry Spitzner 41
- 42. pharmacySOS.ca | Gerry Spitzner 42
- 43. You must decide in exactly which area of your product or service market you are going to specialize. All business success requires a differentiation of some kind. pharmacySOS.ca | Gerry Spitzner 43
- 44. www.smartdraw.com pharmacySOS.ca | Gerry Spitzner 44
- 45. In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. Product (service) Solution Promotion Information Price Value Place (distribution) Access pharmacySOS.ca | Gerry Spitzner 45
- 46. www.smartdraw.com pharmacySOS.ca | Gerry Spitzner 46
- 47. Contrary to what you might think, it doesn't take a marketing guru to develop a proactive, market specific plan that articulates how you will find and hold onto profitable customers. pharmacySOS.ca | Gerry Spitzner 47
- 48. Myth 1: Flawless Work Is Enough Myth 2: Effective Marketing Plans Are Tough To Create Myth 3: Internet Offers Limited Marketing Opportunity Myth 4: Best Practices Work Raintoday.com pharmacySOS.ca | Gerry Spitzner 48
- 49. 1. Decide on the overall goals of the Pharmacy 2. Look at where you are already strong 3. Consider which customers have the most promising long-term prospects for the Pharmacy 4. Consider which services you are best prepared to offer today 5. Research the best possibilities pharmacySOS.ca | Gerry Spitzner 49
- 50. 6. Choose high priority target client groups 7. Develop marketing strategy and a plan to reach those target audiences 8. Put measurement tools in place 9. Implement strategy 10. Review and adjust pharmacySOS.ca | Gerry Spitzner 50
- 51. Show a defined path to customer acquisition ◦ may include time and cost Demonstrate understanding of how to execute the marketing plan Avoid listing marketing tactics Outline what it will take to execute the plan Identify channels and partners Explain key metrics Docstoc.com pharmacySOS.ca | Gerry Spitzner 51
- 52. Our vision for Pharmacy is only actionable if we share it. Without sharing, it‟s just a figment of our imagination. pharmacySOS.ca | Gerry Spitzner 52
- 53. Want an electronic copy of this presentation? ◦ Email me; gerry@pharmacySOS.ca To your business and professional success, thank you for your attention. Questions? pharmacySOS.ca | Gerry Spitzner 53
- 54. Follow Twitter: Connect LinkedIn: Web: Blog: Email: Online Biz Card: @passion4retail Gerry Spitzner pharmacySOS.ca gerryspitzner.com gerry@pharmacySOS.ca gerryspitzner.tel pharmacySOS.ca | Gerry Spitzner 54
- 55. Gerry Spitzner is an optimist with a natural "kid-like“ curiosity for improving life and business results. He believes in a bright future and our ability to build it together and is passionate about making the public aware of the great things Pharmacists do. Drawing on 35+ years experience in multi-site retail Pharmacy operations, drug store ownership and the Pharmaceutical wholesale supply-chain; Gerry brings the leadership, knowledge and market awareness of business development to retail Pharmacy owners helping them achieve growth objectives. He teaches and inspires Pharmacists to achieve results by aligning their vision with marketing strategy and operational execution. Fascinated with a lifelong curiosity for why customers buy and a passion for retail Pharmacy; Gerry guides leaders and organizations to create, engage and keep great customers by delivering the promise of an extraordinary customer experience. He has devoted his life to sharing his thinking with other Pharmacy leaders to manage market analysis and build business plans that increase profitability and create competitive advantage with systems to implement. His company is pharmacySOS.ca, a Vancouver-based business management consultancy with a suite of turnkey business services to support Pharmacy owners starting, buying or strategically realigning their practice. With a clear understanding of the business of Pharmacy he uses a solution oriented focus with ideas and alternatives that clients can use to address the changing practice issues they face right now. Gerry understands who they are, what they need, and where to find it, helping them implement, market and strategically realign their professional clinical services to integrate the business activities of optimal drug therapy outcomes through patient centered care. pharmacySOS.ca | Gerry Spitzner 55
- 56. 1. Explain the purpose of your marketing 2. Explain how you achieve that purpose by describing the benefits you provide 3. Describe your target market(s) 4. Describe your niche 5. Outline the marketing tactics you will use 6. Reveal the identity of your practice 7. Quantify your marketing budget pharmacySOS.ca | Gerry Spitzner 56
Editor's Notes
- Even the most efficient pharmacy will be of little consequence if it has no patients. It is through marketing efforts that patients, physicians, hospital administrators, and other healthcare providers become the ideal audience for professional pharmacy services. Community pharmacies have traditionally been involved with the successful marketing of products; however, the marketing of professional services to patients presents a new challenge for many pharmacists.In all professional services, it’s critical that sales and marketing systems work in harmony to build and maintain a real competitive edge – not to mention grow the business.In order for a clinical service to be considered a success within a retail Pharmacy business environment, it must not only be implemented but also successfully marketed to patients so that the service can engage people, have positive outcomes for patients, and become profitable.
- A few rules of engagement…important to make certain we are in the same context.Stop me if I use any acronyms you aren’t familiar with.
- Unfortunately, marketing is the most often misunderstood business function. Usually equated with advertising, flogging products and services or pushy personal selling; marketing actually involves a far more diverse set of activities. To ensure that the pharmacy satisfies the needs of patients; marketing activities include; identifying and assessing possible target markets, developing an appropriate mix of products and services to satisfy the needs of selected target markets, ensuring that those products and services are made available conveniently, pricing products and services, and promoting the pharmacy to target markets.Let’s consider promotion for a moment…the marketing message. It’s a vital aspect of customer awareness and running a successful business, but lately its practices have been taking a beating. And why not? Do you like getting cold-called just when you sit down to dinner? Having your mailbox clogged with offers you immediately toss? Do you listen carefully to the ads that interrupt your favorite TV show? Of course not!!!These are push messages designed to get a product or service in front of as many people as often as possible. It’s a ‘spray and pray’ shotgun approach to marketing vs a targeted rifle shot.
- Pushing your message out can create awareness; but does nothing to build an emotional connection and a great customer experience; both vital to creating a professional business relationship.If these push experiences are marketing, you and your customers probably, prefer whatever’s the complete opposite.Whenever a Pharmacy business “pushes” a professional clinical service; usually the perception of the customer is an underlying cautious, skeptical and resistant attitude. The thinking of do I really need that and the value of WIIFM sets in as the first impression.In the changing landscape of B2C relationships using a “pull and stay” approach rather than a “push and pray” approach will build a professional relationship that leads to loyal long term clients.“Push and pray” is the old marketing paradigm which assumes that messages sent out blindly and broadly will magically lead to loyal, long term customers.“Pull and stay” uses an approach that brings the right customers through listening and engagement, enabling the business to build trusted relationships and position it as the customers logical choice; when the customer needs you.
- Relationships are the new currency in the marketplace.All things being equal; people do business with people they KLT. All things being unequal; people still do business with people they KLT. Consider that Pharmacists already have the public’s trust; however getting them to know and like is about creating a professional business relationship with them.To successfully market professional services, create a Pharmacy experience customers will like and love. To stand out from the rest of the Pharmacies; customers need to know what makes the Pharmacist and the Pharmacy practice different. Build a unique connection; so they tell others and refer your practice. Most of the time when a relationship is built with a customer the rest of the family’s business will come to a Pharmacy as well. Put relationships first; never look at the service you provide as a one-time transaction; always look at serving customers rather than simply providing customer service. Always think customers for life.To earn a high KLT factor of customers in the future; we must be empowered to make their lives easier and better in a meaningful way. It’s never about what you can get; rather it’s always about what you can give.And the relationships that a Pharmacy creates with their supporting cast can make all the difference to create a business that delivers on the promise optimal drug therapy.
- One of the most important parts of every business is the people you interact with; building long term relationships with all these people is related in some way to delivering a memorable customer experience because they help a Pharmacy business to grow.In many respects, the marketing function is like a conductor of a symphony. If the pharmacy is to serve its patients well, it needs direction with respect to what to do, when to do it, how to do it and why. As the pharmacy’s link to the patient, the marketing function provides the necessary guidance to what must be done to achieve the objective of customer satisfaction. Marketing efforts are not only focused on patients. For example; They also are targeted to physicians and hospital administrators. Marketing plays a crucial role in building physician relations for referrals and improving patient care through drug therapy. In addition, marketing is useful in targeting hospital administrators to demonstrate the value of the pharmacy in improving therapeutic outcomes and thereby reducing the length of the hospital stay.
- Never has it been more important to be distinctive; to be different; in the Pharmacy marketplace than it is today. The Pharmacy must at least be as good on everything competitors offer but be the best on at least one point of distinction. Otherwise, it can simply become a commodity driven by price alone.Not only is differentiation the foundation for strategizing and marketing, it also gives you focus. It helps you identify your niche. It is, quite basically, the essence of how you will succeed in your career and support your family.When you differentiate yourself in the marketplace, you identify why people should really want to do business with you. Most Pharmacy owners— even ones who have been in business 20+ years— cannot articulate in 30 seconds or less what’s different about their pharmacies. Consider this: if you cannot express it clearly and briefly in 30 seconds with 10 words or so in a unique value proposition it’s highly likely your customers and your non-customers do not fully understand what differentiates you.If that’s true, then why should anyone in your community ever bring you any business or repeat business?
- A brand or product or service is stored deep in one’s sub-conscious memory; with so much on people’s minds it’s not important enough for consumers to be thinking about a product or service even part of the time. Even your most loyal repeat customers.But at the right moment; when they need you or your service; you want them to recall how you made them feel. You want them to know and like; you and your service.People may not remember what you said or did; but they will always remember how you made them feel.This is called customer experience and it is your brand and the key to repeat business.
- Your brand resides deep within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot.You may have heard of these two terms, brand and branding; there’s a big difference. One is a feeling and one is an activity.
- Brand is how people think and talk about you when you’re not there. How does this translate? A brand is a person’s emotional response -a gut feeling about you, an organization, a product, or a service. A good brand provides a clear and memorable sense of what your business stands for. Which is a unique perception and makes it easy to recall.In essence, your customers or patients own your brand, you do not. You don’t have direct control of the perceptions held by them.
- Branding is the universe of activities you undertake that affects brand perceptions. You DO have control over this…but realize that you only have partial control of the perceptions with your branding activities.How does this translate? Branding is not about stamping a trademark on everything, but guiding and managing relationships inter-professionally or with your customers and patients. Therefore it makes sense to understand that branding is not about getting your target market and ideal customer to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem. Or put another way; what they need and want.
- There are two kinds of Branding activity; horizontal and vertical. Horizontal branding is that your message and position; in peoples perception is that you are universal; you, your product or service is a mile wide and an inch deep. Just like the ocean in this image.Vertical branding on the other hand is that your position in peoples perception is that you are unique; that you, your product or service is an inch wide and a mile deep. Just like a tree.Each of these branding strategies is very deliberate. It’s not that one is better than the other. Both strategies can be effective when backed up with branding activity and operational delivery at the point of customer purchase.
- For example…Again a Horizontal brand is a mile wide and an inch deep. Or put another way…One thing for a bunch of people. I.e. Walmart “always the low price for everyone”. A Vertical brand is an inch wide and a mile deep. A bunch of things for one person. I.e. Starbucks makes every drink for the individual based on the unique preferences; needs and wants of the customer; whatever way you want it; you can count on getting your same drink at any of their locations worldwide. And they charge accordingly. Are you confused with branding jargon and how it relates to marketing Pharmacy professional services? Perhaps a good place to start is asking… Can your customer make a distinction between you and a similar Pharmacy?What professional services does a Pharmacy specialize in that sets them apart? For example, a focus on pain management; anti-coagulation, BHRT, sports, HIV/Aids are all vertical branding initiatives that are successful. Or a combination of complimentary services for one disease state; for example diabetes; compression stockings, foot care, nutrition, weight management; tasty snack food. A bunch of things for one person.
- Marketing is not a task.Marketing is not a department.Marketing is not a job.Marketing happens every time you engage (or not) with your past, present, and potential customers.Marketing is any time anyone talks about your company, even when you aren’t there.
- Textbook and bottom line definition…Basically marketing is about Building Customer and Stakeholder Relationships.
- Consider these quotes from Pharmacy marketing gurus… especially the last one.
- When customer needs, wants and demands are aligned; it means there is a market.
- Let’s take that last quote from a couple slides ago… ‘Pharmacists must build the demand and supply for pharmaceutical care services simultaneously.’And apply it to needs and wants through marketing it to ideal customers. Consider this; our ideal customers/patients probably don’t know what they don’t know; we must educate them through a pull and stay marketing approach. Ask questions and listen to them; then interpret it. But be careful; giving customers what they want may not be what they need. Consider Henry Ford.Identifying those needs and wants requires finding those ideal customers who are looking for a specialized professional service. This is done through segmentation and research of the target market.
- Market segmentation refers to the division of a market of consumers into persons with similar needs and wants. Segmentation can take place according to benefits sought by the consumer or according to perceived benefits which a product/service may provide.Market segments allow companies to create product differentiation strategies to target them.If you offer more than one product or service, you have to divide your potential customers into separate market segments. You will then have to identify the characteristics and qualities of prospective customers in each of these segments in order to advertise and sell to them effectively. For instance, Kellogg’s cereals; Frosted Flakes are marketed to children. Crunchy Nut Flakes are marketed to adults. Both goods represent two products which are marketed to two distinct groups of persons, both with similar needs, traits, and wants.Marketers can segment according to geographic criteria—nations, provinces, regions, cities, neighbourhoods, or postal codes. Behavioural segmentation divides consumers into groups according to their knowledge of, attitude towards;use of; or response to a product. Segmentation according to occasions relies on the special needs and desires of consumers on various occasions - for example, for products for use in relation with a certain holiday. Products such as Christmas decorations are marketed almost exclusively in the time leading up to the related event, and will not generally be available all year round. Another type of occasional market segments are people preparing for a wedding or a funeral, occasions which only occur a few times in a person's lifetime, but which happen so often in a large population that ongoing general demand makes for a worthwhile market segment.1:1 Marketing; is an approach that concentrates on providing services or products to one customer at a time by identifying and then meeting their individual needs. It then aims to repeat this many times with each customer, so that powerful lifelong relationships are forged.
- Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information.Understanding both your customers and your competition through customized market research can help guide your most important business decisions.Most important first step is to define very specifically what it is you want to find out; define and ask the right question.Then, get detailed data on your target market, competition and industry trends. Learn about the spending habits of potential customers in a given geographic region. Analyze the data and choose the best solution; implement the solution if it makes sense.Marketing research is "the process or set of processes that links the consumers, customers, and end users to the marketer through information — information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.“
- A particularly useful data collection method in market research is the use of focus groups. Get some groups of potential clients together and tell them about your ideas. Tell them how your ideas are unique. Tell them how you would want your program to be seen (its positioning in the market). Ask them what they think.Another important data collection point is the competition. Arguably the most important element of the market environment.Who is your competition? How far away are they? Discover your competition by location, size, age, type of ownership, and lines of products and services that they offer. This is where the SWOT analysis method is useful in determining gaps in their service offering that can be exploited and also what the minimum expectations customers have. Identify where you can be better than the competition on at least one point of distinction.Why doesn't your ideal customer buy from you? Why does your ideal customer buy from your competitor? What value does your ideal customer see in buying from your competitor that he or she does not see in buying from you? What could you do to offset this perception?
- The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. Generally it is viewed from two perspectives; micro and macro.The micro environment (or near environment) refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, (those that help to sell, promote, and distribute goods), customer markets, competition and the public.The macro environment (external environment) refers to all forces that are part of the larger society and affect the micro environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.Some companies treat the external marketing environment as if it were an uncontrollable force and choose to sit on the sidelines and either let it overtake them (and then wonder what happened afterwards) or adapt to the changes it leaves in its wake. Companies who manage their external environment may find themselves creating a competitive advantage. Especially if they are the first mover. Right now, in the business of Pharmacy we have a few great examples. Ie; Howe Sound Pharmacy or the Innovator: Rita’s Pharmacy (pre-read)
- Environmental scanning is one technique used by organizations to monitor the environment.Environmental scanning can be defined as ‘the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market’.The factors which need to be considered for environmental scanning are events, trends, issues and expectations of the different interest groups.The results are often compiled and summarized on a single spreadsheet for easy comparison and understanding. Issues are often forerunners of trend breaks. A trend break could be a value shift in society, a technological innovation that might be permanent or a paradigm change. Issues are less deep-seated and can be 'a temporary short-lived reaction to a social phenomenon'. For example, a few years ago when the issue of wireless networks data capabilities was poor for customers who wanted to use their mobile devices to download and upload video and images. The mobile devices had more capabilities than the networks were able to provide. That was an issue. A need and a want that turned to demand.A trend can be defined as an ‘environmental phenomenon that has adopted a structural character’For example, now that the data issue is behind us; the trend that emerged was to mobile devices vs the PC for customers who want to be connected to their data all the time, everywhere they go. The mobile device is used less as a phone and more as a handheld computer.
- A total product or service offer is what is marketed to the target market and ideal customers.
- A product line is a group of products that are closely related and are promoted together. For example, when a company creates a group of products that deal with hygiene, such as shaving cream, soap and shampoo, this is known as a product line.The line of products typically shares the same logo, brand and color scheme. This way, customers can easily identify other products within the same group. The products are not exactly the same, but they typically share some of the same characteristics. Ie Gillette products; shaving, body wash, deod.The product mix of a company involves all of the products that a company has for sale. The product mix could include several lines of products or individual products that do not fall into a line. For example, if a company owns a line of personal hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company. Each line would combine with the other to come up with the total mix. I.e. P&G Note: P&G also owns the Gillette brand.Re; last point…for example Pfizer has a subsidiary company that markets their generics; a division called Gen-Med. Pfizer has the brand Viagra; Gen-Med markets generic sildenafil.
- There are five main aspects of a promotional mix. These are:Advertising - Presentation and promotion of ideas, goods, or services.Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Can be face-to-face selling or via telephone. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing.Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, advertorials and seminars.Direct Marketing is a channel-agnostic form of advertising that allows businesses and non-profits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising. Ie; Viagara.com/Abilify.com; Walgreens app
- Pricing objectives or goals give direction to the whole pricing process. Determining what your objectives are is the first step in pricing. When deciding on pricing objectives you must consider: 1) the overall financial, marketing, and strategic objectives of the company; 2) the objectives of your product/service or brand; 3) consumer price elasticity and price points; and 4) the resources you have available.Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.Some of the more common pricing objectives are: maximize long-run profit; maximize short-run profit; increase sales volume (quantity); increase monetary sales; increase market share; obtain a target rate of return on investment (ROI); enhance the image of the firm, brand, or product; be perceived as “fair” by customers and potential customers; social, ethical, or ideological objectives
- There are 3 main approaches to pricing…
- TIMING NOTE; SHOULD BE HALFWAYThese methodstrategies or tactics are sub-sets of the three main approaches…
- Product distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
- The retail distribution strategy involves one of these methods…Intensive distribution; the producer's products are stocked in the majority of outlets. This strategy is common for basic supplies, paper products, snack foods, magazines and soft drink beverages. In Pharmacy; OTC’s.Selective distribution; means that the producer relies on a few intermediaries to carry their product. This strategy is commonly observed for more specialised goods that are carried through specialist dealers, for example, brands of craft tools, or large appliances. In Pharmacy; Sisuvits.Exclusive distribution; means that the producer selects only very few intermediaries. Exclusive distribution is often characterised by exclusive dealing where the reseller carries only that producer's products to the exclusion of all others. This strategy is typical of luxury goods retailers such as Gucci but it has also been used by LD and SDM to introduce new products with an exclusive distribution arrangement.
- These are other strategies used to distribute products and services.
- Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well known names.Some marketing researchers have concluded that brands are one of the most valuable assets a company has, as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values. Traditionally, your branding elements are the most noticeable features associated with the brand itself – the brand name, slogans, logo, and symbols or pictures used on product offerings and contained in any marketing messages. But, it is important to know that branding elements extend to the content of the marketing message itself and even your positioning within the marketplace. Every aspect of these elements creates your brand image. It is important that this image is relevant to your customer, clear in what it stands for, and offers some point of differentiation from your competition. You create these associations in everything you do – advertising messages, logos, names used, segments served, etc. Successful brands evoke an emotional perception of awareness and loyalty through trademarks and brand equity.
- Trademarks are used to claim exclusive properties of products or services.A trademark is typically a name, word, phrase, logo, symbol, design, image, or a combination of these elements.The essential function of a trademark is to exclusively identify the commercial source or origin of products or services.
- Brand equity is the value of the brand in the marketplace. Simply put, a high equity brand has high value in the marketplace and it means intense active loyalty. Marketers use laddering to understand and leverage a brand’s equity.The Brand Ladder refers to the various benefit levels which a brand provides to it consumers. Over the lifecycle of a brand, marketers project a brand so as to gain customer loyalty. The term was coined by Kevin Lane Keller, Professor who wrote the book ‘Strategic Brand Management’.The Brand Ladder consists of the 3 levels:Attributes: It refers to the physical features of the product like specifications. If we consider the example of a mobile phone – the attributes could be the size, weight, processor, operating systemFunctional Benefits: It refers to the benefits that are rendered to the consumer by the attributes. In a mobile phone, functional benefits includes speed, memory, interface experienceEmotional Benefits: It refers to how the product/ service connect with the consumer in daily life through its usage. A mobile phone can provide different benefits for its users like gaming, messaging, browsingA brand over its lifecycle is required to travel through these levels in order to gain a loyal customer base. Some of the most successful brands have been existing for decades because they have been able to successfully pass through the 3 levels. Ie Tide.People may not remember exactly what you did, or what you said, but they will always remember how you made them feel.
- Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviors such as word of mouth advocacy.Brand loyalty is how people talk about you when you’re not there.A loyalty program doesn’t mean customers are loyal; it’s a perk for repeat business. So, really it’s a strategy for repeat traffic rather than a rewards program for a customers. Although it is typically marketed that way.
- Brand awareness is the extent to which a brand is recognized by potential customers, and is correctly associated with a particular product.High brand value, a brand with high equity, means that the brand has the ability to create some sort of positive differential response in the marketplace. This can mean that your brand is easily recognizable when encountered in advertising or seen on a sign.Brand recall is the ability of the consumer to recollect the brand with reference to the product whereas brand recognition is the potential of the consumer to retrieve the past knowledge of the brand when enquired about the brand or shown an image of the brand logo. Brand awareness is an essential part of brand development which helps the brand to stand out from the others in this hyper-competitive market.
- Summary of the Marketing 101 process…
- How does a customer decide to buy?In marketing terms this is called the path to purchase or more recently called the customer journey.In psychology, cognitive dissonance is the discomfort experienced when simultaneously holding two or more conflicting ideas, beliefs, values or emotional reactions between expectations and reality. It’s a perception that is unique and individual.Often; it determines whether or not a customer will buy again and maybe refer you to others.
- Here’s the reality of the consumer decision making process and cognitive dissonance. Conflicting ideas, beliefs, values or emotional reactions between expectations and reality. Fickleness trumps loyalty; we are in an era of what I call the “butterfly” customer. The butterfly customer is a creature more in motion than at rest; flitting form store to store, from bank to bank, from credit card to credit card and from service to service. Their first instinct is to try something new, something better, and something different, and their last instinct is to stay loyal to any one offering.So, how do you attract these elusive creatures to your business and, more importantly, how do you keep them coming back? A good place to start is managing the marketing mix.
- This is perhaps the most important strategic marketing principle of all. All business success requires that you be both different from and better than your competitors in some clear, distinct way.You cannot be all things to all customers. Too many businesses make the mistake of trying to offer too many products or services to too many types of customers at too many prices in too many ways. It confuses customers and the market, not to mention the operational challenge to manage it all.The only hope you have in acquiring new customers is to focus most of your time and attention on determining exactly who they are, where they are, and what you have to do to get them to buy from you rather than from someone else.Once you have applied the principles of specialization, differentiation, and segmentation to your products and services, and to your customers and markets, you now have to concentrate your limited resources.Managing the marketing mix means you have to focus your time, energy, and money on those prospective customers that you have identified who are the most likely to buy from you the soonest. The target market and the ideal customer.
- The marketing mix is a focused business tool used in marketing products and services. Traditional product marketing has followed a set of principles called the 4Ps. Product, Price, Place, & PromotionThe focus is in the middle; the target market and ideal customer are the sweetspot where awareness, interest, desire and action take place.Marketing mix is often crucial when determining a product or service’s branding and unique value proposition and is synonymous with the 4P’s.These basic principles remain important components of any marketing plan and have been extensively used in many business sectors for customer focused marketing.
- In the customer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the customer. Then the service must pass two internal critical tests; it must be operationally sound and economically feasible.The rationale for this approach is that there is no reason to spend funds developing products/services that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs. I.e. Beta max.A formal approach to this customer-focused marketing is known as SIVA(Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. One of the articles in the pre-reads refers to how SIVA can be used in marketing Pharmacy professional services.The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, place, promotion) of product marketing management and it feeds into a 7P formula for the marketing of services vs product.
- A professional services marketing mix builds on the 4 basics and adds 3 areas crucial to marketing in the specialized niche of services vs. product.People, process and physical environment all play a role in where the target market and ideal customers will do business and repeat buy.
- For decades, professional service providers, including pharmacists, rarely marketed their services. Instead, they thrived in a cozy world where personal relationships and word-of-mouth generated enough new clients to grow a profitable business. Those days are long gone or leaving fast. With so many pharmacies to choose from, patients can quickly tap the minds of an army of experts for help. To compete in this market, professional service providers must challenge the conventional wisdom on marketing and selling professional services.A good place to start is to dispel the following four myths…
- Myth 1: Flawless Work Is Enough; Some professionals believe that success is only about delivering outstanding results. It's true that flawless delivery is essential for long-term success. But you just can't assume in today's business environment that word of your great service performance will travel through your customers—let alone on to other potential clients. To thrive, combine flawless service with a systematic, coordinated marketing program targeted at existing patients. Prepare specific, proactive client-level marketing plans that get the word out about your value.Myth 2: Effective Marketing Plans Are Tough To Create; Contrary to what you might think, it doesn't take a marketing guru to develop a proactive, market specific plan that articulates how you will find and hold onto profitable customers. The most effective marketing plan is short—seven sentences to be exact. They are in Appendix 1. It should fit on a single page. Your marketing plan will force you to make choices and reflect on the type of business you want to build. Most importantly, once you've created your marketing program, take action and never stop.Myth 3: The Internet Offers Limited Marketing Opportunities; In a world where anyone can access substantial content on every conceivable subject with a click of the mouse, potential clients will not be satisfied if your Web site turns up nothing of interest. Even with a referral in hand, the majority of prospective customers head straight to your Web site to assess your Pharmacy’s capabilities. Often, that Web site visit is the prospective client's first impression of your firm. Your Web site must be an integral part of your marketing efforts. Use it to your advantage by giving prospective clients what they're looking for—the ability to understand how you'll help them address their problems. Without a Web site that demonstrates how your unique capabilities match up with their needs, today's clients will pass you by. Myth 4: Best Practices Work;In side-by-side comparisons, most professional service marketing follows a predictable strategy, and that is to make a series of “safe” marketing decisions based on the “best practices” of others. The result: a me-too marketing strategy that does little to differentiate you from competing firms. Of course, there is value in learning from the success of others. Unfortunately, relying on best practices is a follower's strategy in a market that values leaders. In an era of demands for innovative products and services, why pursue a recycled approach to marketing? Too often, professional service firms do just that—recycle the ideas of others. For example, if you review how twenty-five firms use best practices to differentiate themselves from others, you find marketing material that emphasizes attributes like quality service, best price, or service responsiveness. Because these differentiators are so overused, they have no power. Clients view such claims as “table stakes”—the minimum needed to get in the game, not enough to win. I'm not suggesting that you stop using these differentiators, but lead with something more client-focused. Now that would be an innovative practice.
- I recommend a simple, 10-step strategic marketing process for professional services…Decide on the overall goals of the Pharmacy; What kind of a Pharmacy do you want or need to have? How much growth? Do you want to double in size in 5 years, for example? Pharmacies with clear strategies, built on strong differentiators, tend to grow faster and are more profitable.Look at where you are already strong; What industry verticals do you already have strength in? What kind of services are you good at delivering? Where do you offer the most value and enjoy the greatest success? Most established Pharmacies have a large number of industry/service combinations to consider.Consider which customers have the most promising long-term prospects for your Pharmacy. They may or may not be high growth customers (although growth is important to consider). This step may take some basic secondary market research, which is not hard to do.Consider which services you are best prepared to offer today. What do you excel at already? By now, you may have several promising alternatives. Most Pharmacies do. There may be some clinical services in which you have deep experience and strong staffing. They may feel like an obvious choice. Or you may have a service that delivers greater value than competitors. But don’t decide which to prioritize just yet. The next step will set you apart because so few firms do it. Research the best possibilities. Do some structured research on possible target client groups. This research will identify not only your best short-term opportunities (a.k.a. “low hanging fruit”), it will also point to new services that you can offer in the future. You will also understand what messages you need to communicate and which hurdles you will have to overcome.
- 6. Choose your high priority target client groups. Have a good fix on which services are the most likely to yieldsuccess if you concentrate on them. For some firms, prioritizing and focusing marketing efforts will be a cultural shift, so be prepared for some pushback.7. Develop your marketing strategy and plan to reach those target audiences. For most Pharmacies this will be a mixture of traditional approaches, such as print advertising and instore activity such as personal selling; or perhaps newer online approaches such as content marketing and social media. The point is to accelerate both your visibility and reputation within your target groups and those that influence them. Think opinion leaders (ie Dr. Low and Osteoporosis) and referral sources (ie doc’s/their receptionists and hospitals).8. Put your measurement tools in place. You’ll want to know how the strategy is working. Start to track contacts (email list size, for example), referrals, leads, proposals and wins as a starting place. But you may also want to track visibility (e.g., keyword searches on targeted terms, press mentions, social media reach) to monitor the strength of your brand within the target group. 9. Implement your strategy. Believe it or not, this is often the most overlooked part of marketing strategy. The strategic marketing process falls flat if you don’t actually implement your strategy. Yes, it’s hard and you need to be patient. But implementing it separates the winners from the losers!10. Review and adjust. I recommend monitoring progress each month. Are you actually doing what you planned to do? Is it having the desired impact? Each quarter, take a look at the cumulativeresults. Is your marketing working the way you projected? You can make adjustments at that point. Finally, conduct your annual review in conjunction with planning and budgeting. If you have been implementing a solid plan for a year and the needle is not moving, you need to consider a new strategy.
- Recall a few weeks ago I presented a 3 step strategic approach to business planning? How Big; who serve and how compete and win. Once you’ve finished your business plan. Organize these points to fit into your pitch presentation. For a verbal explanation; see the DocStoc video series I provided a link to.
- The beauty of this strategic marketing process for professional services is that it keeps a Pharmacy focused on strategicgrowth. That is important because strategic growth adds much more value to a Pharmacy than the unfocused or undisciplined growth that can occur in the absence of a strategic marketing process. It’s a beautiful thing when a strategy comes together.
- To your business and professional success, thank you. As always; I’ll stick around as long as you want to.
- Or you can find me at any of these contact points.