UBC Phar400 Marketing Pharmacy Professional Services-25Oct2013

Marketing Pharmacy Professional Services

UBC – Phar400 | Pharmacy ManagementpharmacySOS.ca | Gerry Spitzner

October 25 , 2013

pharmacySOS.ca | Gerry Spitzner 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.

Before we begin…


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

Roadmap


Thoughtstarters/Important Insights

Marketing is the most often misunderstood business function.


“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.

Thoughtstarter


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.

Important Insight #1


Pharmacy interacts with a lot of people; here are key relationships to build and maintain...

Doctors Patients and Customers

Hospital Nurses Doctor’s Receptionists PharmaCare & PharmaNet College of Pharmacy Municipal Landlord Banker Accountant Bookkeeper Lawyer Head Office Staff Neighbouring tenants

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


Differentiating yourself is basic to business survival today. You either differentiate, or die!

Important Insight #2



Brand and BrandingWhat’s the difference?


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.

Brand


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.

Branding


Two Kinds of Branding


It’s Very Deliberate

Horizontal Brand Vertical Brand


Marketing 101“Understanding customers’ needs, and using that understanding to create, deliver and communicate customer value, are key components of marketing.”

(Source: Desselle & Zgarrick, 2005)


“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?


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 clinic\hospital◦ 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)

Why Marketing ?


‘As pharmacy continues to evolve, marketing’s role grows in importance.’

‘As pharmacy continues its evolution from a product-focused 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)

Why Marketing ?


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.


Needs, Wants & Demands


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.


Needs, Wants & Demands


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


Market Segmentation


Define the question

Collect the data

Analyze the data

Choose the best solution and implement


Market Research Process


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.

Customer Market Research Method


Global factors

Technological factors

Socio-cultural factors

Competitive factors

Economic factorsNickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Market Environment


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?

Environmental Scan


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.


Develop a Total Product Offer


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.


Product Line and Product Mix


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 MarketingNickels 6e/Copyright © 2007 McGraw-Hill Ryerson

The Promotion Mix


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 objectivesNickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Pricing Objectives


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

Major Approaches to Pricing


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


Other Pricing Strategies


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


Importance of Channels of Distribution


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.


Retail Distribution Strategy


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


Non-store Retailing


Trademark

Brand equity

Brand loyalty

Brand awarenessNickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Branding and Brand Equity


Trademarks


Brand Equity


Brand Loyalty


Brand Awareness


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


Applying the Marketing Process


Problem recognition

Information search

Alternative evaluation

Purchase decision or no purchase

Post-purchase evaluation (cognitive dissonance)


Consumer Decision-Making Process



Managing the Marketing Mix

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.


Elements in the Marketing Mix: The 4 Ps

www.smartdraw.com


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

Customer Focused Marketing


Professional Services Marketing Mix

www.smartdraw.com


Marketing Pharmacy Professional Services

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.


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

4 Myths of Professional Services Marketing


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

Marketing Professional Services


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

Marketing Professional Services


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

Your Clinical Service Presentation


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

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

Summary


Want an electronic copy of this presentation?

◦Email me; [email protected]

To your business and professional success, thank you for your attention.

Questions?

Thanks

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

Online Biz Card: gerryspitzner.tel


Find me

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.


About |pharmacySOS.ca is about implementation; not just

information.


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

Appendix 1