Drug Marketing

Dr. shadi niazi mohamed

Chapter 1
Marketing
in the
Twenty-first Century

Marketing Management
Tenth Edition
Philip Kotler

Defining Marketing
Marketing is a societal process by
which individuals and groups
obtain what they need and want
through creating, offering, and
freely exchanging products and
. services of value with others
Philip Kotler (p. 7)-

Core Concepts of Marketing

Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs,
Needs, Wants,
Wants, and
and Demands
Demands
Product
Product or
or Offering
Offering
Value
Value and
and Satisfaction
Satisfaction
Exchange
Exchange and
and Transactions
Transactions
Relationships
Relationships and
and Networks
Networks
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment

Simple Marketing
System
Communication

Industry
a collection)
(of sellers

Goods/services

Money

Information

Market
a collection)
(of Buyers

Structure of Flows
Resources

Resources

Resource
markets

Money

,Services
money
,Services
money

Manufacturer
markets

,Taxes
goods

Goods, services

,Taxes
goods
Taxes

Government
markets

Consumer
markets
Services

,Services
money
Money

Money

,Taxes
goods

Intermediary
markets

Money
Goods, services

The Four Ps

The Four Cs
Marketing
Mix
Place

Product

Customer
Solution

Price

Promotion

Customer
Cost

Communication

-Conven
ience

Company Orientations Towards the

Marketplace

Production
Production Concept
Concept

Consumers prefer products that are

widely available and inexpensive

Product
Product Concept
Concept

Consumers favor products that

,offer the most quality, performance
or innovative features

Selling
Selling Concept
Concept

Consumers will buy products only if

the company aggressively
promotes/sells these products

Marketing
Marketing Concept
Concept

Focuses on needs/ wants of target

markets & delivering value
better than competitors

Customer Delivered
Value
Starting
point

Focus

Means

Ends

Factory

Existing
products

Selling and
promotion

Profits through
sales volume

The selling concept( a)

Market

Customer
needs

Integrated
marketing

Profits through
customer
satisfaction

The marketing concept( b)

Customers

Front-line people

Middle Management

Top
Management

Traditional Organization
Chart

Customer-Oriented Organization
Chart
Customers

Front-line people

us
to
m
er

er
m
to
s

Top
-manage
ment

us
C

Middle management

Evolving Views of
Marketings Role

Production
Marketing

Finance
Human
resources

a. Marketing as an
equal function

Production

Finance
Human
resources

Marketing

b. Marketing as a more
important function

Evolving Views of
Marketings Role

Marketing

c. Marketing as the
major function

Customer
M
ar

ke

tin

re Hu
so m
ur an
ce
s

n
ma ces
Hu ur
so
re

e
c
n
a
n
i
F

ce

n
o
ti
c
u
d
o
r
P

n
na
Fi

Production

d. The customer as the

controlling factor

Evolving Views of
Marketings Role
Production
Marketing
Customer

e. The customer as the controlling

function and marketing as the
integrative function

Chapter 2

:Winning Markets
Market-Oriented Strategic Planning

Marketing Management
Tenth Edition
Philip Kotler

Market-Oriented Strategic
Planning
Objectives

Resources

Skills

Opportunities

Market-Oriented Strategic
Planning

Objectives

Resources

Profit
and
Growth
Skills

Opportunities

Corporate Headquarters
Planning
Define the corporate mission
Establish strategic business units
(SBUs)
Assign resources to SBUs
Plan new business, downsize older
businesses

Strategic-Planning, Implementation,
and Control Process
Planning
Corporate
planning
Division
planning
Business
planning
Product
planning

Implementation
Organizing

Implementing

Control
Measuring
results
Diagnosing
results
Taking
corrective
action

:Good Mission Statements

Limited number of goals
Stress major policies & values
Define competitive scopes

-20%
-18%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0

Stars

Question marks

?2

Market Growth Rate

The Boston Consulting Groups

Growth-Share Matrix

Dogs

Cash cow

6
10x

7
4x

2x 1.5x

1x

5x .4x .3x .2x .1x.

Relative Market Share

Three Intensive Growth

Strategies: Ansoffs
Product/Market Expansion
Grid
Existing
products

New
products

Existing
markets

Market. 1
penetration

Product. 3
development

New
markets

Market. 2
development

Diversification. 4

Opportunity Matrix

Attractiveness

Success Probability
High

Low

High

Low

Opportunities

Company develops a.1

more powerful lighting
system
Company develops a.2
device for measuring
the energy efficiency of
any lighting system
Company develops a.3
device for measuring
illumination level
Company develops a.4
software program to
teach lighting
fundamentals to TV

Threat Matrix

Seriousness

Probability of Occurrence

High

Low

High

Low

Threats

Competitor develops.1
a superior lighting
system
Major prolonged.2
economic depression
Higher costs.3
Legislation to reduce.4
number of TV studio
licenses

The McKinsey 7-S

Framework
Structure
Structure

Strategy
Strategy

Systems
Systems
Shared
Shared
values
values

Skills
Skills

Style
Style
Staff
Staff

The Value-Delivery Process

Traditional physical process sequence( a)
Make the product

Design Procure Make

product

Sell the product

Price Sell /Advertise Distribute Service

promote

Value creation & delivery sequence( b)

Choose the Value

Strategic marketing

Provide the Value

Communicate the Value

Tactical marketing

The Marketing Plan

Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls

Factors Influencing Company

Marketing
Strategy
Marketing

Suppliers

Place

g n
tin tio
ke za
ar i em
M ganyst
or s

/Political
legal
environment

Product

M
pl ark
sy ann etin
st i n g
em g

Target Price
customers
or M
im ga ar
pl niz ke
em at tin
en ion g
ta a
tio nd
n

/Demographic
economic
environment

in Ma
fo r k
sy rm eti
st at ng
em io
n

intermediaries

/Technical
physical
environment

Publics

Promotion

Competitors

/Social
cultural
environment

Chapter 3
Customer

Marketing Management
Tenth Edition
Philip Kotler

Price

Product

Amount of money
that consumers
have to pay to
Obtain the product

Goods-and-service
combination that a
company offers a
target market

Target
Customers
Intended
Positioning
Activities that
persuade target
customers to buy
the product

Company activities
that make the
product available

Promotion

Place

30

Core Marketing Concepts

, Needs, wants
and demands
Markets

, Exchange
, transactions
and relationships
31

Products
and services

, Value
, satisfaction
and quality

What are Consumers Needs,

?Wants and Demands

Needs: state of felt deprivation for basic

items such as food and clothing and complex
needs such as for belonging. i.e. I am hungry.

Wants: form that a human need takes as

shaped by culture and individual personality.
i.e. I want a hamburger, French fries, and a
soft drink.

Demands: human wants backed by buying

32

How Do Consumers Choose

Among Products and
?Services

Value Gained From Owning a Product

and Costs of Obtaining the Product is

Customer Value
Products Perceived Performance in Delivering
Value Relative to Buyers Expectations is

Customer Satisfaction
Total Quality Management

Involves
Improving the Quality of Products, Services, and
Marketing Processes
33

How Do Consumers Obtain

?Products and Services

Transactions

Exchanges
Relationships

Building a Marketing
Network Consisting of
The Company and All
Its Supporting
Stakeholders
34

Pull

Strategy

the company
tries to move its
products through
the distribution
channel by
building desire
for the product
among
consumers , thus
convincing
retailers to
respond to this
demand by

Push

Strategy
The company
tries to push
its products
through the
distribution
channel by
convincing
channel
members to
offer them

Comparison

Comparison of
of push
push

and
and pull
pull promotional
promotional

strategies
strategies
Push policy

Pull policy

Producer

Producer

Wholesale
rs

Wholesalers

Retailers

Retailers

Flow
Flow of
of products
products

Consumers

Consumers

Flow
Flow of
of
communications
communications

MARKETING
STRATEGY Options
Developing
Developing new
new

services
for
new
services for new

markets
markets

Expanding
Expanding in
in the
the

current
markets
with
current markets with

the
the current
current services
services

Market
Market
Penetration
Penetration

Diversification
Diversification

//

Markets/Cus
Markets/Cus
tomers
tomers

Market
Market Development
Development

Product
Product Development
Development

Entering
Entering new
new

markets
markets with
with the
the

current
current services
services
Marketing Skills Module

Developing
Developing current
current

services
services for
for the
the

current
current markets
markets
M.B. Al-Hariri Al-Refai-MS-01

Product Life
Cycle

Chapter 4
Marketing planning

Marketing Management
Tenth Edition
Philip Kotler

Why is marketing planning

?necessary

Systematic futuristic thinking by

management
better co-ordination of company efforts
development of better performance
standards for control
sharpening of objectives and policies
better prepare for sudden new
developments
managers have a vivid sense of
participation

Criticisms of marketing
planning
Formal plans can be quickly
overtaken by events
Elements of the plan my be kept
secret for no reason
gulf between senior managers and
implementing managers
the plan needs a sub-scheme of
actions

Objectives of the
marketing plan
Acts as a roadmap
assist in management control and
monitoring the implementation of
strategy
informs new participants in the plan of
their role and function
to obtain resources for implementation
to stimulate thinking and make better
use of resources

Assignment of responsibilities, tasks

and timing
Awareness of problems, opportunities
and threats
Essential marketing information may
have been missing
if implementation is not carefully
controlled by managers, the plan is
! worthless

The contents and structure of the

marketing plan
The executive summary
table of contents
situational analysis and target market
marketing objectives
marketing strategies
marketing tactics
schedules and budgets
financial data and control

Cautionary notes for effective

planning
Dont blindly rely on mathematical
and statistical calculations. Use your
judgement as well
Dont ever assume that past trends
can be exploited into the future
forever
if drawing conclusions from statistical
data, make sure the sample size is
sufficiently large

Behavioural planning
problems
Planning recalcitrance: resistance and nonco-operation by managers in planning
fear of uncertainty in planning: a lack of
comfort in planning activities
political interests in planning
activities:resource bargaining, padding of
requirements, and avoidance of consensus
planning avoidance: compliance rather
than commitment to planning

Standard Planning
Framework
?Analysis - where are we now
Objectives - where do we want to
?be
?Strategies - which way is best
Tactics - how do we ensure
?arrival
Control - are we on the right
?track

Chapter 5
Pricing

Marketing Management
Tenth Edition
Philip Kotler

Pricing Decisions

Pricing strategies
Pricing exercise
Ten ways to increase
prices without increasing
price - Winkler

Quality
Low

Low
Price

High

Economy
Strategy
e.g. Tesco
spaghetti
Skimming
e.g. New film or
album

High

Penetration
e.g. Telewest
cable phones

Premium
e.g. BA first
class

Pricing strategies
Premium pricing
Uses a high price, but gives a good
product/service exchange e.g. Concorde,
The Ritz Hotel

Penetration pricing
offers low price to gain market share -
then increases price
e.g. France Telecom - to attract new
corporate clients (or Telewest cable)

Economy pricing
placed at no frills, low price
e.g. Soups, spaghetti, beans - economy
brands

Price skimming
where prices are high - usually during introduction
e.g new albums or films on release
ultimately prices will reduce to the parity

Psychological pricing

to get a customer to respond on an emotional,

rather than rational basis
e.g 99p not 1.01 price point perspective.

Product line pricing

rationale of a product range

e.g. MARS 32p, Four-pack 99p, Bite-size 1.29

Pricing variations
off-peak pricing, early booking discounts,etc
e.g Grundig offers a cash back incentive for
expensive goods

Optional product-pricing
e.g. optional extras - BMW famously
under-equipped

Captive product pricing

products that complement others
e.g Gillette razors (low price) and blades
(high price)

Product-bundle pricing
sellers combine several products at the
same price
.e.g software, books, CDs

Promotional pricing

BOGOF e.g. toothpaste, soups, etc

Geographical pricing
different prices for customers in different
parts of the world
e.g.Include shipping costs, or place onPLC

Value pricing
usually during difficult economic
conditions
e.g. Value menus at McDonalds

Ten ways to increase prices without

increasing price - Winkler
Revise the discount structure
Change the minimum order size
Charge for delivery and special
services
Invoice for repairs on serviced
equipment
Charge for engineering, installation
Charge for overtime on rushed orders
Collect interest on overdue accounts

Produce less of the lower margin

models in the line
Write penalty clauses into
contracts
Change the physical
characteristics of the product

Factors that affect pricing

decisions
Organizational
Organizational
and
and marketing
marketing
objectives
objectives

Pricing
Pricing
objectives
objectives

Channel
Channel
member
member
expectations
expectations

P
R
I
C
E
The
The value
value placed
placed on
on
what
what is
is exchanged
exchanged

Costs
Costs

Pricing
decisions

Buyers
Buyers
perceptions
perceptions

Other
Other
marketing
marketing
mix
mix variables
variables

Competition
Competition

Legal
Legal and
and
regulatory
regulatory
issues
issues