2011 Marketing Lecture

8/12/2019 2011 Marketing Lecture

1/60

Professor Perri

3/10/2014 1


2/60

A salesperson? Advertising? Public relations? Buying an ad in the yellow

pages?

3/10/2014 2


3/60

Marketing: the process of exchangingsomething of value, usually money, forsomething you need or want

Key concepts: Needs

Wants and demand Value

Satisfaction

3/10/2014 3


4/60

3/10/2014 4


5/60

3/10/2014 5

In performing activities directed at

meeting peoples needs pharmacistsplay the role of apersonal marketer: Dispensing, OTC counseling, counseling patients, teaching

pharmacy students, performing a pharmacotherapy review

But, there is a mindset - I am a healthcare professional, not a fast talking usedcar salesman.


6/60

Should HC be advertised? How do you know if you need surgery? You certainly dont learn this from an

ad. What about needing Nexium? Can you, should you, learn this from anad?

Credibility and experience Do YOUwant to be the FIRSTyour surgeon operates on?

Many patients have limited ability to differentiateservices and products Perhaps because we dont make the patients experience remarkable?

Hard to maintain quality encounter to encounter Some patient experiences go better than others.

3/10/2014 6


7/60

People and groups other than pharmacists are in control ofpharmacy. PBMs, Corporations, Government

We tend to focus too much on the prescription and not onthe service component (counseling) that is of most valueto the patient.

Balancing clinical and business roles.

The most trusted professional.. While this is true, people must expect very little.

3/10/2014 7


8/60

And the pharmacist shortage may be nearly over Changes in staffing and customer service

New technology and services Transient communities

1 in 5 customers move every year

College town?

Patient perceptions

I just love [insert your favorite doctor, pharmacist, pharmacy] and there issomeone whose experience is quite different.

Should pharmacists be able to influence this perception.?

3/10/2014 8


9/60

Advertising = providing information Pharmacists = provide information

So, It should be apparent we need to get the word out.

Recognize there will be differences in the way customersperceive advertising information.

Need to pay close attention to our marketing

philosophy.

3/10/2014 9


10/603/10/2014 10


11/603/10/2014 11


12/60

TOMA, but for whom?

3/10/2014 12


13/60

Markets, market segments and target markets, more on this in a coupleminutes, but first:

3/10/2014 13


14/603/10/2014 14


15/60

Product Orientation

What do you have to sell

then sell it.

Marketing Orientation Find out what people

needthen createproducts to satisfy theseneeds.

3/10/2014 15


16/60

COMPANY PRODUCT ORIENTED MARKET ORIENTED

AOL WE PROVIDE ONLINE

SERVICES

WE CREATE CUSTOMER

CONNECTIVITY, ANYTIME

ANYWHERE

HOME DEPOT WE SELL TOOLS AND HOME

REPAIR EQUIP

WE PROVIDE ADVICE AND

SOLUTIONSNIKE WE SELL SHOES WE HELP PEOPLE

EXPERIENCE COMPETITION,

WINNING

REVLON WE SELL COSMETICS WE SELL MEMORIES,

HOPES, DREAMS

WAL MART WE RUN DISCOUNT STORES WE DELIVER LOW PRICES

EVERYDAY

GREYHOUND BUS WE MOVE PEOPLE FROM

POINT A TO B

WE BRING PEOPLE

TOGETHER

B&O RAILROAD WE MOVE MATERIALS EVEN WARREN BUFFET

COULDNT HELP THE RAILS!

3/10/2014 16


17/60

3/10/2014 17


18/60

Develop marketing plan

This is a business plan that maps out an overall

strategy on how we will reach and meet ourcustomers needs, better than the competition.

Basically, how we will become Remarkable

Bottom line, must determine how to manipulate

the 4 Ps and 4 Is to maximize customersatisfaction.

3/10/2014 18


19/60

StrengthsWeaknessesOpportunities

Threats

ResourceAnalysis

Set MarketingGoals

DevelopMarketingStrategy

ImplementationEvaluation

The Marketing Process

3/10/2014 19


20/60

Market summary Define your product and set marketing goals

Identify and select target markets Establish competitive advantages Design and implement marketing strategies Evaluate success, revise and adjust plans

3/10/2014 20


21/60

Setting the stage: Strengths and weaknesses Opportunities and threats Legal considerations Social, ethical, political issues New technology

What is it that you think customers want the most? Is there anything about your idea, practice site,

pharmacy that is remarkable?

3/10/2014 21


22/60

Market: past, present, & future

Review changes in economic, political, legalissues, market share of competitors, other players,market shifts, costs, pricing, SWOT, etc.

3/10/2014 22

Early Adopters/

Pioneers

Mass Market/

Followers

End of Life

Time

Number

ofcustomers


23/60

The competitivelandscape -SWOT

Provide an overviewof productcompetitors, theirstrengths andweaknesses

Position eachcompetitors productagainst new product

3/10/2014 23

STMH

YourPractice

CD

Performance

Price


24/60

3/10/2014 24


25/60

Individuals

PersonalCharacteristics

SituationalFactors

ProductQuality Service

Quality

PriceCustomerSatisfaction

Factors Affecting Customer Satisfaction:Does this product/service make them

happy and solve their problems?

3/10/2014 25


26/60

Describe product/service being marketed

What exactly is our product?

Think about this: When you go to buy a hair dryer what are

you really buying? Better looking hair, not a heat gun.

What are you buying when you purchase a prescription?

Determine the objectives we wish to reach

Number of patients per month?

Dollars of revenue?

Some measure of patient satisfaction, improvedoutcomes, quality of life?

3/10/2014 26


27/60

3/10/2014 27


28/60

A process of:

Identifying customer needs

Figuring out just who your customers are What do they have in common

How can you meet these customers needs

Assessing and comparing various customer

groups to see who you want to target

Though Question: You cant be all things to all people, or can you?

3/10/2014 28


29/60

Market

All those who might need pharmacy care. Segment

Groups with similarities Demographics

Psychographics

Lifestyle

Pediatric, diabetes, HRT, gerontology, ambulatorycare, lipids, asthma, allergy

Target Market

Segment identified on which you wish to focus yourmarketing efforts.

3/10/2014 29


30/60

Homogeneous Group with similar needs, wants and demand

Accessible

Can be reached with available advertising Durable Will continue to be profitable in the future

Measurable You can learn about needs, tastes and preferences

easily Substantial Is a large enough group to justify entry into the

market.

3/10/2014 30


31/60

Who is the target market for yourimmunization program?

Travelers? Yearly flu-shots? Child & adolescents? Homogeneous?

Accessible?

Durable?

Measureable?

Substantial?

3/10/2014 31


32/60

3/10/2014 32

HCTZ vs. Geodon


33/60

The 4 Ps of productmarketing Price

level, value, convenience Place

Convenience, hours, delivery,charge, decor

Product Assortment, advice,

satisfaction Promotion

Product v. image oriented

The 4 Is of servicemarketing Intangible

It is a perception Inseparable

Tied to the bottle of pills

Not Inventory How many counseling sessions

do you have in you today? Individualized

Each patient encounter is goingto be differentthe patientand you

3/10/2014 33

Philip Kotler, Marketing Professional Services


34/60

Wholesale and retail issues 3rdParty Reimbursement Prices

AWP, WAC, MAC, FUL, Cost-to-dispense, Professional fee, delivery fee,

administrative fee, generic incentive, acquisition cost?

Cash price Competition

Walmart $4

Insurance co-pays and price Credit

Visa, MC, Amex, Discover, in house credit accounts, discount cards

3/10/2014 34


35/60

Convenient location

Customer access to the pharmacy / pharmacist

Is on-line a consideration?

Is this even a place issue?

What about phones? (i.e., CVS Rapid Refill)

Attractiveness of the: External store Location

Layout inside the store

Delivery (and maybe even mail delivery)

3/10/2014 35


36/60

Possible Pharmacy CareClinic sites examined in

2001

Sketchy

$$$

3/10/2014 36


37/60

3/10/2014 37


38/60

1500 square feet

Lab

Business office

Waiting area

Lavatory

Storage

3 patient exam / education rooms

3/10/2014 38


39/60

3/10/2014 39


40/60

3/10/2014 40

What is our product?

How do customers see it?

Is product the same for

everyone?

Think about needs, wants

and demand, how do thesefit with prescriptions?


41/60

3/10/2014 41

Tangible

Less Tangible

Bottle of pills

CokeCars

CosmeticsAdvertising

Teaching

Patient Counseling


42/60

Some experts claim you dont have a fixedamount of service on the shelf in the

pharmacy. However, many pharmacists disagree and think there is a limit to how manypatients you can counsel in a day of work. It has been suggested to limitpharmacists work day to about 120-140 Rxes working with a single tech.

http://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.php

But it is true there is no fixed limit, andtechnically, they cant be counted.

3/10/2014 42
http://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.phphttp://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacist-workload---north-carolina-board-of-pharmacy.php


43/60

3/10/2014 43


44/60

Advertising, public relations, personal selling and in-store promotions.

3/10/2014 44


45/60

Sell more existing product/services to current customers Market penetration

Sell existing products to new customers Market expansion

Sell new products to existing customers Development

Sell new products to new customers Diversification

The strategy you choose, will impact the decisions you makewith regard to the 4Ps and the 4 Is

3/10/2014 45


46/60

Strategy & execution

Overview of strategy Utilize existing patient base for office based appointments

Advertise to community for health screening activities Overview of media & timing

Newspaper, radio and cable TV ads

Overview of ad spending

$10K for 30-60 day campaign, with LIMITED newspaper ads (30spots on cable = $3000, 1 small ad in newspaper could cost ofthat!)

3/10/2014 46


47/60

Strategy & execution

PR strategies

PR plan highlights Have backup PR plan including editorial

calendars, speaking engagements, conference

schedules, etc.

3/10/2014 47


48/60

Direct marketing

Sales calls to other physicians / groups

Third-party marketing

Co-marketing arrangements with other

companies

US Wellness

Novartis State DHR

3/10/2014 48


49/60

Social Media

Is not the traditional unidirectional broadcast

paradigm that most marketers are used to. Use of

social media means you must understand how to

listen to and engage with users, continually

optimize and refine your message, and rapidly

adapt to changing technical and legal realities.

3/10/2014 49


50/60

Social Media

Listen

Twitter, Facebook

Keyword searches to identify blogs, wiki, informationabout the competition, industry, etc.

Both positive and negative: Actress, Jenny McCarthyclaimed her child became autistic as a result of avaccination. True? False? Does it matter?

3/10/2014 50


51/60

Engage You want to

make sure youcontrol your

content.

Monitor roguecontent.

Discussiongroups

3/10/2014 51


52/60

Engage:

Tools like Facebook, Twitter and YouTube provide greatplatforms to listen and engage people in discussions.

Unlike traditional broadcast advertising, social mediaallows marketers to measure the audience, and in somecases, the actual conversions that result from a campaign.

Interactions on Facebook and other channels often are

accompanied by rich and detailed user profiles. Marketershave visibility into the demographics, interests, andhistories of individual users on those channels.

3/10/2014 52


53/60

Depends on the product/service balance For any given product, there will be a unique

product/service mix and decisions need to be

tailored to each situation. Consider how decisions will be different for

each of the following: An OTC bottle of Geritol

The 33rdrefill of a patients HCTZ A new prescription for Lipitor

A new prescription for Lortab

First time oral contraceptive prescription

3/10/2014 53


54/60

3/10/2014 54


55/60

The best product mix decisions are the onesthat meets our target markets needs.

3/10/2014 55


56/60

Lots of questions to ask:

When do we start?

Promotion budget

Detailed budget information

Will billing strategy be in place?

3/10/2014 56

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

Phase 1

Phase 2

Phase 3


57/60

3/10/2014 57


58/60

First year, second year, etc. goals

Numbers are good.

Specific, measurable and realistic?

Economic measures of success/failure Requirements for success

Personal satisfaction?

Financial considerations?

Patient health, contribution to the community and

society?

3/10/2014 58


59/60

18-month schedule highlights Timing

Isolate timing dependencies critical to success

3/10/2014 59

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

Task 2

Task 3

Task 4

Task 1

Milestone


60/60

Hope you have a great spring break!

2011 Marketing Lecture

Documents

Transcript of 2011 Marketing Lecture