Professor Perri

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

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Marketing: the process of exchanging something of value, usually money, for something you need or want

Key concepts:

Needs Wants and demand Value Satisfaction

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In performing activities directed at meeting peoples needs pharmacists play the role of a personal marketer:
Dispensing, OTC counseling, counseling patients, teaching

pharmacy students, performing a pharmacotherapy review

But, there is a mindset - I am a health care professional, not a fast talking used car salesman.
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 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 an ad?

Credibility and experience

Do YOU want to be the FIRST your surgeon operates on?

Many patients have limited ability to differentiate

services 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.

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 People and groups other than pharmacists are in control of

pharmacy.
PBMs, Corporations, Government

We tend to focus too much on the prescription and not on

the service component (counseling) that is of most value to the patient. Balancing clinical and business roles. The most trusted professional..
While this is true, people must expect very little.

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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 is

someone whose experience is quite different. Should pharmacists be able to influence this perception.?

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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 customers perceive advertising information. Need to pay close attention to our marketing philosophy.

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TOMA, but for whom?

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

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Product Orientation
What do you have to sell

Marketing Orientation
Find out what people

then sell it.

need then create products to satisfy these needs.

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COMPANY AOL

PRODUCT ORIENTED WE PROVIDE ONLINE SERVICES WE SELL TOOLS AND HOME REPAIR EQUIP

MARKET ORIENTED WE CREATE CUSTOMER CONNECTIVITY, ANYTIME ANYWHERE WE PROVIDE ADVICE AND SOLUTIONS

HOME DEPOT

NIKE

WE SELL SHOES

WE HELP PEOPLE EXPERIENCE COMPETITION, WINNING

WE SELL MEMORIES, HOPES, DREAMS

REVLON WAL MART GREYHOUND BUS B&O RAILROAD

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WE SELL COSMETICS

WE RUN DISCOUNT STORES WE DELIVER LOW PRICES EVERYDAY WE MOVE PEOPLE FROM POINT A TO B WE MOVE MATERIALS WE BRING PEOPLE TOGETHER EVEN WARREN BUFFET COULDNT HELP THE RAILS!
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Develop marketing plan

This is a business plan that maps out an overall

strategy on how we will reach and meet our customers 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 customer satisfaction.

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Strengths Weaknesses Opportunities Threats Resource Analysis Set Marketing Goals Develop Marketing Strategy

Evaluation

Implementation

The Marketing Process

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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

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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?

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Market: past, present, & future Review changes in economic, political, legal issues, market share of competitors, other players, market shifts, costs, pricing, SWOT, etc.
Early Adopters/ Pioneers Mass Market/ Followers

Number of customers

End of Life

Time
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The competitive landscape -SWOT Provide an overview of product competitors, their strengths and weaknesses Position each competitors product against new product

STMH

Your Practice

Price

D C
Performance
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Individuals Personal Characteristics Situational Factors

Customer Satisfaction

Price

Product Quality

Service Quality

Factors Affecting Customer Satisfaction: Does this product/service make them happy and solve their problems?
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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, improved

outcomes, quality of life?

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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?
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Market All those who might need pharmacy care. Segment Groups with similarities
Demographics Psychographics Lifestyle

Pediatric, diabetes, HRT, gerontology, ambulatory

care, lipids, asthma, allergy Target Market Segment identified on which you wish to focus your marketing efforts.
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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.
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Who is the target market for your immunization program?

Travelers? Yearly flu-shots? Child & adolescents?
Homogeneous? Accessible? Durable? Measureable? Substantial?

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HCTZ vs. Geodon

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The 4 Ps of product marketing

Price level, value, convenience Place Convenience, hours, delivery, charge, decor Product Assortment, advice, satisfaction Promotion Product v. image oriented

The 4 Is of service marketing

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 going to be different the patient and you
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Philip Kotler, Marketing Professional Services

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Wholesale and retail issues 3rd Party 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
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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)

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Possible Pharmacy Care Clinic sites examined in 2001

Sketchy $$$
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 1500 square feet Lab Business office Waiting area Lavatory Storage 3 patient exam / education rooms

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What is our product?

How do customers see it? Is product the same for everyone?

Think about needs, wants and demand, how do these fit with prescriptions?

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Tangible

Bottle of pills Coke Cars Cosmetics

Advertising
Teaching Patient Counseling

Less Tangible

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Some experts claim you dont have a fixed amount of service on the shelf in the pharmacy.
However, many pharmacists disagree and think there is a limit to how many

patients you can counsel in a day of work. It has been suggested to limit pharmacists work day to about 120-140 Rxes working with a single tech. http://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacistworkload---north-carolina-board-of-pharmacy.php

But it is true there is no fixed limit, and technically, they cant be counted.
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Advertising, public relations, personal selling and in-store promotions.

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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 make with regard to the 4Ps and the 4 Is

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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 (30 spots on cable = $3000, 1 small ad in newspaper could cost of that!)

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Strategy & execution

PR strategies PR plan highlights Have backup PR plan including editorial

calendars, speaking engagements, conference schedules, etc.

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Direct marketing
Sales calls to other physicians / groups

Third-party marketing
Co-marketing arrangements with other

companies
US Wellness Novartis State DHR

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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.

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Social Media
Listen Twitter, Facebook Keyword searches to identify blogs, wiki, information about the competition, industry, etc. Both positive and negative: Actress, Jenny McCarthy claimed her child became autistic as a result of a vaccination. True? False? Does it matter?

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 Engage
You want to make sure you control your content. Monitor rogue content. Discussion groups

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Engage:
Tools like Facebook, Twitter and YouTube provide great

platforms to listen and engage people in discussions. Unlike traditional broadcast advertising, social media allows marketers to measure the audience, and in some cases, the actual conversions that result from a campaign. Interactions on Facebook and other channels often are accompanied by rich and detailed user profiles. Marketers have visibility into the demographics, interests, and histories of individual users on those channels.

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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 33rd refill of a patients HCTZ A new prescription for Lipitor A new prescription for Lortab First time oral contraceptive prescription

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

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 Lots of questions to ask: When do we start? Promotion budget Detailed budget information Will billing strategy be in place?
Phase 1

Phase 2
Phase 3

Jan
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Mar

Apr

May

Jun

July

Sep

Oct

Nov

Dec
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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?
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18-month schedule highlights Timing

Isolate timing dependencies critical to success
Task 1 Task 2 Milestone

Task 3
Task 4

Jan
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Mar

Apr

May

Jun

July

Sep

Oct

Nov

Dec
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Hope you have a great spring break!

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