UBC Phar400 Intro to Marketing 3.0 13Feb2015

Introduction to Marketing

UBC – Phar400 | Pharmacy ManagementpharmacySOS.ca | Gerry Spitzner

Part One | February 6, 2015

Objective: Define marketing and explain how the marketing concept works and is applied to Pharmacy patient services.

Thoughtstarters/important insights Brand and Branding Marketing 101 Managing the Marketing Mix Professional Services Marketing Mix The Marketing Plan Myths & Mistakes of Pharmacy Services Marketing

pharmacySOS.ca | Gerry Spitzner 2

Roadmap

Thoughtstarters/Important Insights

Marketing is the most often misunderstood business function.


What is “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.


Thoughtstarters

When the care is patient-centred and focused on their health rather than accuracy, compliance and disease education, customers are much more likely to be satisfied with the care process, and to refer others.

Trust begins to emerge when we have a sense that another person or organization is driven by things other than their own self-gain.

Focus primarily on the relationship of marketing to the most important beneficiary of pharmaceutical care: the patient.

Ultimately, care needs to be about them and what they can do to improve their health.


Important Insights

In today’s world, business is built on relationships.◦ People do business with people they know, like and trust. ◦ Trust begins to emerge when we have a sense that another person or

organization is driven by things other than their own self-gain.◦ Trust is not a checklist. Fulfilling all your responsibilities does not create

trust. Trust is a feeling, not a rational experience.◦ You have to earn trust by communicating and demonstrating that you

share the same values and beliefs. ◦ You have to talk about your WHY and prove it with WHAT you do. ◦ Understand why, how and what products/services patients need and

want to buy, rather than what you want to sell to them.


Important Insights


Thoughtstarter

It’s 2015 and 99 percent of people in our industry are stuck in the mud marketing their services like it’s 2005 or even 1995.


Important insight

Traditional marketing has collapsed in terms of getting the attention of a consumer. Old marketing; you look for customers. New Marketing; customers look for you.


Important InsightEvery single marketer out

there is a storyteller.

Stories are attempts to share our values and beliefs. Storytelling is worthwhile when it tells what we stand for.

Brand and BrandingOne is a feeling and one is an activity.

What’s the difference?

10pharmacySOS.ca | Gerry Spitzner

The sum of the perceptions that are held about you, your company and your products/services. ◦ When you say it about yourself, it's bragging. When someone

else says it about you, it's proof.◦ Including perceptions held by both external and internal

audiences and stakeholders. 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.


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.



Two Kinds of Branding

It’s Very Deliberate

Horizontal Brand‘One thing for a bunch of people’

Vertical Brand‘A bunch of things for one person’



Re-branding???

Simon Sinek; There’s no such thing as “re-branding”.

A brand’s WHY is either clear or it’s fuzzy. And if it’s fuzzy, changing the look won’t help.



Reputation = what you say about yourself + what others say about you

Marketing 101All you need is a planned approach to marketing that targets the right audience, gives them the information and advice they want, and eliminates what they don’t want – a sales pitch.



Sales vs Marketing

One thing to be clear about is that marketing is NOT sales. Selling and closing sales is different.

the same as advertising becoming a “salesperson” manipulating customers to buy cold calling using hype or exaggeration making quick sales using high pressure sales tactics a task, a department or a job a stand-alone activity

What Marketing is Not…


“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


What Is Marketing?

It is how you get customers.◦ Promotes product/service awareness to the public,

boosting sales while at the same time building the company's reputation

◦ Identifies new product/service areas and new or potential customers

◦ Identifies your competitors and makes you analyze what their advantages are

◦ A solid marketing plan will help you identify your customer's needs and wants

Why Is Marketing Important?


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. DESIRE: a want that is backed by an ability to

pay.◦ The job of a marketer is not only to meet or respond to

people’s NEEDS, but also to help customers learn what they WANT.

◦ Marketers do not create NEEDS, but they do help to translate NEEDS into WANTS.

(Source: Desselle & Zgarrick, 2005)


Needs, Wants & Desires

Size of the market. ◦ How common is the condition (or the need for service) in the

pharmacy's geographic area? Obstacles to market entry.

◦ Does substantial competition already exist for proposed service? Potential revenue and profit.

◦ How much revenue could be generated through service provision? Patient access.

◦ Can prospective patients reach the pharmacy easily? Patients’ attitudes and behavior.

◦ Is there willingness & readiness of patients to participate actively?


Identify Groups of Like-Minded Customers

Market ResearchIt is extremely difficult to develop and provide a high-quality product or service without conducting at least some basic market research.

Capture behavior, not just data.


As opposed to periodic studies, customer learning is a continuous process of probing customers.◦ It’s a focused process that fundamentally

incorporates the fact that every customer is truly unique and that their needs, wants and expectations are never static.

◦ They change with the life forces affecting the individual or the business and the environment in which they exist.

Who is your ideal audience. Where do they do business, get info and heathcare support and why? ◦ Go to where they go, observe them and ask them

what they need and want. How they want it, when they want it and why.


Who is your ideal customer?

Marketing 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.◦ Define the question◦ Collect the data◦ Analyze the data◦ Choose the best solution & implement



Market Research Process

Refers to the factors and forces that affect a firm’s ability to build and maintain successful relationships with customers viewed from two perspectives…◦ Micro environment (or near environment) refers to the

forces that are close to the company and affect its ability to serve its customers. I.e. the company itself, its suppliers, marketing intermediaries, (those that help to sell, promote, and distribute goods), customer markets, competition and the public.

◦ Macro environment (external environment) refers to all forces that are part of the larger society and affect the micro environment. I.e. demographics, economy, natural forces, technology, politics, and culture.


Market Environment

Quantitative market research generally probes a few topics; however by itself doesn’t yield a deep understanding of the customer. ◦ The results of quantitative research will generally be a

numerical form of data collection and analysis.◦ The periodic nature merely offers a snapshot of

customers at a moment in time. Qualitative research aims to gather an in-depth

understanding of human behavior and the reasons for that behavior. ◦ Adopt a customer learning approach to find out who your

customers are, what they want, how they want it and why.


Quantitative & Qualitative Market Research

Market segmentation refers to the division of a target market of consumers into people with similar needs and wants.

Market segments allow companies to create product differentiation strategies to target them.◦ Geographic Segmentation: geographic areas◦ Demographic Segmentation: age, sex, education, occupation,

family size, etc.◦ Psychographic Segmentation: lifestyle, interests, values,

attitudes◦ Behavioural Segmentation: benefits desired◦ Occasion Segmentation: Christmas, weddings, birthdays



Market Segmentation


Examples of Market Segments and Niches for Pharmacy Services

Source: William R. Doucette, PhD; Randal P. McDonough, PharmD, MSPharm; J Am Pharm Assoc (2003) 2002

Who are your competitors?◦ What customer needs and preferences are you

competing to meet? ◦ What are the similarities and differences between

their products/services and yours? ◦ What are the strengths and weaknesses of each

of their products and services? ◦ How do their prices compare to yours? ◦ How are they doing overall?


Competitor Analysis

How do you plan to compete and win? ◦ Offer better quality services? (**value**) ◦ Lower prices? ◦ More support? Easier access to services? ◦ How are you uniquely suited to compete with them?

Gather competitive intelligence from as many sources as possible; include your data, ideal customers and competition.

Then include the information in a S.W.O.T. analysis and/or an Environmental Scan.


Competitor Analysis

PEST is the acronym; means Environmental scanning is one technique used by

organizations to monitor the market environment at a given point in time.

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.


Environmental Scan

To be continued…


Introduction to Marketing

UBC – Phar400 | Pharmacy ManagementpharmacySOS.ca | Gerry Spitzner

Part Two | February 13, 2015


Managing the Marketing Mix

Putting the right product in the right place, at the right price, at the right time.


Product (or service)◦ What are you going to sell? This is the item or, in the case of

pharmaceutical patient care , the service being marketed. Price

◦ How much can you charge ? Setting the appropriate price for a service is essential to marketing it successfully.

Place◦ Where will people buy your service? Making the service

available at the right time and place is important to the success of patient services.

Promotion◦ How will people find out about your service? In addition to

advertising, promotional activities include publicity, PR, and personal selling.

4P’s of the Marketing Mix


All elements of the marketing mix influence each other.

Product, placement, promotion, and price are crucial to determining a brand's unique value proposition.

Marketing is not a stand-alone activity. It is integrated with all other functions of your business.

The marketing mix needs a lot of understanding, market research and consultation with people, from customers and patients to inter-professionals, to suppliers and any others in the distribution system.

What is the importance of the Marketing Mix?


Marketing Mix: The 4 P’s


The service must deliver a minimum level of performance; otherwise even the best work on other elements of the marketing mix won't do any good.

Defined as anything, either tangible or intangible, offered by the Pharmacy; as a solution to the needs and wants of the patient/customer.

The service has to have the right features - for example, it must look & sound good and work well.

Product/Service Objectives


Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs.

The price must be right. Customers will need to buy in large numbers to produce a healthy profit.

Each product/service 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

Pricing Objectives


The product/service must be in the right place at the right time. Making sure that the service is available when and where it’s wanted is very important.

Catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy.

3 Distribution Strategies…◦ Intensive - puts services 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.

Place Objectives


The three basic objectives of promotion are :◦ To present product/service info to targeted

customers.◦ To increase demand among the target market.◦ To differentiate a product and create a brand identity.

Promotion mix attempts to engage potential customers in an information exchange.

Promotional Tools used in exchange of information;◦ Advertising ◦ Internet

Promotion Objectives

◦ Public relations

◦ Direct Marketing

◦ Personal selling

◦ Sales promotion


The marketing mix model can be used to help you decide how to take a new offer to market.

Once you have a well-defined marketing mix, try "testing" the overall offer from the customer's perspective, by asking customer focused questions: ◦ Does it meet their needs? (product)◦ Will they find it where they shop? (place)◦ Will they consider it's priced favorably? (price)◦ Will the marketing communications reach them?

(promotion)

Using the 4Ps


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 The customer-focused marketing approach is

known as SIVA. This system is basically the four Ps renamed and reworded to provide a customer focus.

Customer Focused Marketing


Professional Services Marketing Mix

All of these elements work together to play a part in where the target market, ideal audience and ideal customer will do business and repeat buy Professional Services.


Professional Services Marketing Mix


Process◦ How services are consumed. Providing and delivering a service and

the behaviour of those who deliver it. People

◦ Who delivers the service. The reputation of your brand rests in your people’s hands.

Physical Environment/Evidence◦ A service can’t be experienced before it’s delivered.◦ Testimonials can provide evidence that a Pharmacy keeps it’s

promises. ◦ Clean, well decorated and tidy facilities can also reassure. If the

premises aren’t up to scratch, why would the customer think the service is?

7 P’s Professional Service Marketing


Relationship marketing moves beyond the basic principles of the 7 P’s Marketing Mix to include…

One-on-one marketing. Personal selling. Identify groups of like-minded customers. Retain patients. Take a longer-term view.

Apply Professional Services Marketing


Every encounter with a patient is an opportunity to establish or build a closer professional bond.◦ “Has your doctor told you what to expect from this

medication?” ◦ “Do you know what your goals are for this therapy?”◦ “How is this medication working for you?◦ “Have you had any problems you'd like to discuss?” ◦ “Let me tell you about your condition so you

understand how best to manage it,”◦ “Let me tell you about the benefits of your medication

and why it is important to take it every day”

1:1 Marketing | Personal Selling


Approach DialogueSounding tentative or apologetic about fees:

“Mrs. Webb, with all these prescription and nonprescription medications you’re taking, I think you might benefit from sitting down with one of our pharmacists for a medication review session. Unfortunately, we have to charge for this service.”

A more persuasive and positive way to state this information would be to say:

“Mrs. Webb, with all these prescription and nonprescription medications you’re taking, you could benefit from a personal consultation with one of our pharmacists, who would review your medications with you. Our professional fee for this service is $60. And you may be eligible for a covered Pharmacare benefit.”

Another key is to close the sale with confidence:

“This service takes about 30 minutes. We have the time now or we could schedule an appointment for you on another day this week.”

Example | Selling Pharmacy Services


Myths and Mistakes of Marketing Pharmacy

ServicesTo compete in this market, Pharmacy professional service providers must challenge the conventional wisdom in our industry on marketing and selling their professional patient services.


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

Source: Raintoday.com

4 Myths of Marketing Professional Services in Pharmacy


1. Relying on word of mouth2. Relying on one marketing method3. Competing on low prices & “free” stuff4. Incomplete marketing message5. Not effectively reaching ideal audience6. Creating an overly complex marketing plan7. Delaying marketing until cash flow improves8. Selling services with a sales pitch

8 Fatal Mistakes of Pharmacy Marketers


Professional services marketing is undergoing profound change. Tell your story.

Marketing is everything. Marketing isn't for quitters.

Take steps for nurturing long-term leads. Use relationship marketing to build value and demand for Pharmacy services.

New, Internet-enabled technologies are challenging old assumptions about the way people buy professional services.

Traditional marketing is not dead – nor is it dying. Just don’t rely on one marketing method.

No more myths. Focus on realities.


Our vision for Pharmacy professional services is only actionable if we share it.

Lets share what makes us different because everyone can already see what makes us the same.

Without sharing, it’s just a figment of our imagination.

Conclusion


It’s your job to tell your value proposition


Got questions? Get answers? Email me…

Thanks

Follow Twitter: @passion4retail Connect LinkedIn:Gerry Spitzner Web: pharmacySOS.ca Blog: gerryspitzner.com Email:[email protected]

Online Biz Card: gerryspitzner.tel You Tube Channel: Gerry Spitzner


Find me

Gerry Spitzner is an optimist with a curiosity for improving life and business results. Optimism is the ability to focus on where we're going; not where we're coming from and Gerry is passionate about making the public aware of the great things Pharmacists do. He believes in a bright future and our ability to build it together.

Drawing on 40+ years in regional multi-site retail Pharmacy operations and drug store ownership with SDM, plus business development with K&F in the Pharmaceutical wholesale supply-chain; Gerry has the unique advantage of having worked in several different business models within the retail Pharmacy industry.

Fascinated with a lifelong curiosity for why customers buy, trends and a passion for retail he is dedicated to sharing his thinking with strategies to create, engage and keep great customers by delivering the promise of an extraordinary customer experience that increases sales and profit.

pharmacySOS.ca is a Vancouver, BC based business management consultancy providing Strategic Operations Services focused on drug stores and Pharmacies. Specializing in consumer trends and strategic business development for independent and banner pharmacies helping Pharmacists to market their patient care services beyond dispensing.


About pharmacySOS.ca | Strategic Operations Services helps Pharmacy business plan for the future by anticipating it. More than just information; it’s about innovation and implementation.


AppendixThe marketing strategy section of the business plan describes who the customers are and how you will get word to them about the goods and services you offer.

Here’s an example of what to include…


The Marketing Plan Section

The purpose of the marketing section of the business plan is to convince readers that your business or planned service provides a great opportunity.


The Market Description◦ describe your market in terms of size, value, history,

recent growth trends and anticipated future growth. The Customer Profile

◦ describe the characteristics, attributes, behaviors, and traits of your customers.

The Competition◦ identify and discuss each major player currently

operating within the industry The Marketing Plan

◦ consists of three main areas; the Pricing Strategy, the Distribution Strategy, and Advertising & Promotions.

Four main components


Executive summary — What is my overall plan? Be concise. What is it?

Identify yourself — Who am I and what are my values & abilities?

Describe the product or service — What need do I meet?

Identify your target market — Who are my customers?

Know your competitor — Who else can woo my customers?

Sections of a marketing plan


Define your distribution and delivery channels — How will I deliver my service to my customers?

Group your activities — How will I reach my customers?

Outline a plan to deal with challenges — How will I handle the unexpected?

Indicate your pricing strategy — How much should I charge?

Project where you will be in five years — What are my long-term goals?

Sections of a marketing plan


When writing the marketing strategy, be sure to include at least the following: ◦ Define the people who are you customers.◦ What groups of consumers will buy from you?◦ How will you advertise to your target market?◦ Where and what businesses are competing against

yours?◦ How is your business different from the competition?◦ What is your competitive edge?◦ Your value proposition.

What to Include


Find a need Conduct research Identify a target market and ideal customer Design a service to meet the need based on research

and then conduct testing (proof of concept) Determine a brand name and design a service Set a price Select a distribution system Design a promotional program Build a relationship with customers


Summary | Applying the Marketing Process