Chapter 8 Strategic Marketing Planning Chapter 8 slides for Marketing for Pharmacists, 2nd Edition.

Chapter 8Strategic Marketing

Planning

Chapter 8Strategic Marketing

Planning

Chapter 8 slides for Marketing for Pharmacists, 2nd Edition

Learning ObjectivesLearning ObjectivesDescribe the strategic planning process.

Discuss the role of strategic marketing planning for pharmacists.

Define the following terms associated with strategic planning: mission statement, business plan, SWOT analysis, marketing goals and objectives, brand, commodity, brand awareness, brand image, brand equity.

Develop a strategic marketing plan for a pharmaceutical service or product.

Role of a Mission Statement

Role of a Mission Statement

TIP All planning and

strategiesoriginate from it.

TIP All planning and

strategiesoriginate from it.

Every part of a business plan derives from the mission.

Every part of a business plan derives from the mission.

Mission

BusinessPlan

MarketingPlan

FinancialPlan

Human Resources

Plan

Distribution &

Supply

Mission

BusinessPlan

MarketingPlan

FinancialPlan

Human Resources

Plan

Distribution &

Supply

Vision without action is a daydream. Action without vision is a nightmare.- Japanese Proverb

Strategic Marketing Plans

Strategic Marketing Plans

A step-by-step plan for solving marketing problems

Strategic marketing plansStrategic marketing plans

Can be conducted any time you have a marketing problemNew service (diabetes management)Change in services (Internet pharmacy) New competitor (Wal-Mart)

In pharmacy, many services are provided on hit or miss basis without much planning.

Wal-Mart fills $4 generic prescriptions

Wal-Mart fills $4 generic prescriptions

Wal-Mart Stores announced the expansion of a generic prescription drug discount program introduced last month in Florida to additional states.

Wal-Mart said that the program has received a strong customer response in Florida. In the Tampa area, Rxs increased by 36,000 in the first 10 days of the program.

The generic medications in the program account for almost 30% of the Rxs filled at Wal-Mart pharmacies in Florida. http://www.npr.org/templates/story/story.php?storyId=6326035

Strategic Marketing Planning Process

Step 4Reassess

Step 4Reassess

Step 3Implement

Step 3Implement

Step 2DevelopStrategy

Step 2DevelopStrategy

Step 1Formulate

Goal

Step 1Formulate

Goal

MissionStatement

MissionStatement

AnalyzeEnvironment

(Opportunities,Threats)

AnalyzeEnvironment

(Opportunities,Threats)

Analyze Resources

(Strengths,Weaknesses)

Analyze Resources

(Strengths,Weaknesses)

1. Segment the market2. Select a target market3. Position your product

Developing the Strategic Developing the Strategic Marketing PlanMarketing Plan

SWOT AnalysesSWOT Analyses

Strengths, Weaknesses, Opportunities, Threats

SWOT analysesSWOT analyses

Each SWOT is unique.Require a clear understanding of

the competition. Elements of SWOT are framed in comparison with competitors.A location is a strength as it

compares with competitors. A threat occurs within the context of competitors.

Capability assessmentCapability assessment

Strengths (S)Weaknesses (W)

Strengths or weaknesses of your organization

Strengths or weaknesses of your organization

People/skills - Availability and training of personnel that give you an advantage

Money - Availability of $ to finance initiativesSystems - How well designed, organized, and

coordinated is your system?Facilities - Availability and condition Market assets - Image/reputation in the eye of

the customer. Degree of market leadership.

Analyze the market environment

Analyze the market environment

Opportunities (O)Threats (T)

OpportunitiesOpportunities

What needs are not being met in the marketplace?

Can we meet these needs better than our competitors?

How is the environment changing to our advantage or disadvantage?

ThreatsThreats

What potential problems might threaten the success of the firm initiatives?

What potential new competitors may arise? How might the firm’s current competitors respond?

What changes may be occurring in the environment to make your product or service obsolete?

ThreatsThreats

How might governmental policies, changing customer demographics, or a recession affect your firm’s product or service?

How might changes in customers’ tastes affect customer demand?

What major trends will significantly affect your firm and the market?

Retail clinics – Threat

or opportunity?

Retail clinics – Threat

or opportunity?

Medicare Prescription Drug Benefit (Part D):

Threat or opportunity?

Medicare Prescription Drug Benefit (Part D):

Threat or opportunity?

Identifying opportunities and threats in markets (Porter)

Identifying opportunities and threats in markets (Porter)

Level of rivalry between competitors

Ease with which competitors can enter market

Power of suppliers (e.g., pharmacies)

Power of customers (e.g., PBMs)

Availability of substitutes

Summary --SWOT is used to answer:

Summary --SWOT is used to answer:

Does the company have a distinct advantage in the current market environment upon which a strategy can be built?

Do weaknesses make the company vulnerable to competitors or disqualify it from pursuing certain opportunities?

Strategy FormulationStrategy Formulation

The plan to achieve

marketing goals and objectives

Strategic Marketing Planning Process

Step 4Reassess

Step 4Reassess

Step 3Implement

Step 3Implement

Step 1Formulate

Goal

Step 1Formulate

Goal

MissionStatement

MissionStatement

AnalyzeEnvironment

(Opportunities,Threats)

AnalyzeEnvironment

(Opportunities,Threats)

Analyze Resources

(Strengths,Weaknesses)

Analyze Resources

(Strengths,Weaknesses)

Formulating goals, objectives, and strategies

Formulating goals, objectives, and strategies

Goals: General outcome of anticipated actions, e.g., “increase company profitability.”

Objectives: Quantify general outcome, e.g., “increase ROA by 10% by end of fiscal year.”

Strategy: Plan to achieve goals and objectives.How will you segment your market? (Ch.10)What segments will you target? (Ch.10)How will you position your product in the

market?

Positioning Pharmaceutical Services

Positioning Pharmaceutical Services

Goal -- Develop a clear, distinct, and valued image of your mix in the minds of consumers.

Positioning, SWOT, and the Marketing Mix

Positioning, SWOT, and the Marketing Mix

Using information from SWOT analysis, Select a unique combination of 4 P’sThat meets your customers’ needs and

wants better than your competitors do.All 4 P’s should act to provide a

consistent and powerful image of your product or service.

Don’t become a commodityDon’t become a commodity

Commodities are products in which consumers can’t perceive any difference, e.g., gasoline.

They are selected on the basis of price and location.

Brands and BrandingBrands and Branding

A brand is a name, term, sign,

symbol, or design that helps identify a product

or company.Branding

attempts to get consumers to

assign meaning to a brand.

TIP Your personal brand

is your name.

TIP Your personal brand

is your name.

BrandRecognition

BrandAwareness

BrandRecall

Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing.

57(January 1993). 1-22. (Adapted)

Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing.

57(January 1993). 1-22. (Adapted)

Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of

Marketing. 57(January 1993). 1-22. (Adapted)

Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of

Marketing. 57(January 1993). 1-22. (Adapted)

BrandBrandImageImage

Types ofTypes ofBrand AssociationsBrand Associations

Favorability ofFavorability ofBrand AssociationsBrand Associations

Strength ofStrength ofBrand AssociationsBrand Associations

Uniqueness ofUniqueness ofBrand AssociationsBrand Associations

Customer Experiences with the Marketing Mix•Price•Promotion•Place•Product

Customer Experiences from Others•Word-of-mouth recommendations•Press and other media coverage

Brand Awareness•Recognition•Recall

Brand Image•Types of associations•Favorability•Strength•Uniqueness

Brand Equity

Problems faced by pharmacists in changing their brand’s image

Problems faced by pharmacists in changing their brand’s image

The image of pharmacists is controlled by others.

Pharmacists are unwilling to exert the effort.

Pharmacists don’t know how.

Implementing the PlanImplementing the Plan

Problems in implementation:Insufficient management

commitmentLack of staff commitment or

expertiseLack of or poor informationStructural contradictionsOverextension

Final Step: ReassessFinal Step: Reassess

Evaluate marketing success and ways to improve.

ConclusionConclusion

Students and pharmacists should know how to develop a strategic marketing plan.Clerkship

Practice

Career planning

Questions?Questions?