Dr. Nelson T. Tubon

Exercise 14

Selecting A Location

And Positioning The

Pharmacy

Key Terms

Convenience goods – goods a customer usually purchases frequently, immediately, and with a minimum of efforts Examples: candy bars, cigarettes, and deodorants

Shopping goods – usually means high unit price purchased infrequently, more intensive selling effort required on the part of the sales people, price and features compared, and sold in selective outlets. Examples:humidifiers, glucometer, and BP apparatus

Key Terms

Specialty goods – usually means high unit price,

purchased infrequently, requires a special effort on

the customer to make the purchase, no substitutes

considered, and sold in exclusive outlets. Are

designed jewelry, name-brand time pieces, and

certain imported goods

Retail drugstore – outlets selling pharmaceutical

product in retail to consumers or end users

Key Terms

Independent drugstore – It is defined broadly to include those establishments that are privately owned and whose function, in varying decrees, is to serve society’s need for both product and pharmaceutical services. The owner or operator of a drugstore need not be a pharmacist although the license to operate requires a duly registered pharmacist per store outlet

Competitive advantage – strategies/tactics in order to keep competitors off-balance and to communicate effectively and delivers the chosen positioning in the target market

Key Terms

Positioning - refers to the attributes or characteristics and purchaser criteria which are perceived by the customers. Positioning means finding a market or submarket where your product can be leader or dominant player in the industry or market place. Also known as market niching or unique selling proposition

Community shopping drugstore – usually consists of 15 to 50 stores with an emphasis on both convenience and shopping goods, and trading area of about 10 to 20 minutes driving time from the center.

Possible competitive advantages for a

pharmacy

A. Prescription drugs

Availability of medications to provide fast

dispensing

Availability of generic drugs

B. Front-end merchandise

• Assortment of merchandise stocked

• Selling a few grocery items

• Novelty gift items not available elsewhere

• Trendy merchandise

• Seasonal merchandise

C. Prescription services

Speed dispensing

Frequent filler program

Offering trial doses

Patient counseling

Processing third-party claims

Emergency prescription dispensing

Information sheets on medication usage

Records for tax purposes

Maintenance of patient profile

D. Nonprescription services

Speed of service

Counseling of non prescription

medications

Relationships with care givers

Money-back guarantee

Return policies

Special seminars

E. Prescription and nonprescription services

Competitiveness

Special discounts

Cut rates on selective front-end

merchandise

Credit

F. Distribution

Convenient location

Pharmacy hours

Delivery service

Telephone and mail orders

G. Promotion

Uniqueness of advertisements

Big-prize giveaways

Sidewalk sales

Tie-ins with prescription drug purchase

Contests

Colorful “shelf talkers”

Attention-grabbing point-of-purchase displays

H. Personnel

Courtesy

Friendliness

Knowledgeable

Helpfulness

Accuracy

Follow-up

1. Why is a location one of the most important decisions facing

a pharmacy owner?

A good location is one of the most important factors

for pharmacy success, partly due to its relatively

lasting effect.

2. What are the alternative location choices within a community?

Major factors to consider in choosing a pharmacy location include

selection of the community, choice of a location within the community, and

selection of specific site.

Sources of information about locations include chambers of commerce,

bankers, real estate brokers, and professional consultants.

Key factors to consider in selecting a community include characteristics

pertaining to population, competition, labor, transportation, economics,

material availability, government, financing, location and media

3. What are the major questions to be answered

regarding a pharmacy’s trading?

a. What community has the greatest opportunity

for the particular type of pharmacy under

considerations?

b. What area within a community indicates strong

potential for growth?

c. What specific site within the area of the

community meets the requirements of the

particular pharmacy?

4. What is retail compatibility?

Retail compatibility can be the most

important factor in the survival of stores in a

shopping center.

5. Why is it necessary for pharmacies to develop a

positioning strategy?

Pharmacy owners must recognize that people have

different needs and are therefore attracted to

different offers. In other words, a pharmacy has to

have a positioning strategy. A position is the way

the pharmacy is defined by patrons on important

attributes – the place the pharmacy occupies in

patrons’ minds relative to competing pharmacies.

6. How do traffic counts contribute to the selection of

pharmacies? And what are the advantages and

disadvantages of a planned shopping centers?

A pedestrian or automobile traffic count may be desirable in

deciding on a specific site.

Pedestrian traffic is closely related to whether the goods are

convenience goods, shopping goods, or specialty goods.

There are 3 types of planned shopping centers; neighborhood

centers, community centers and regional centers

The right tenant mix in a shopping center is essential to the

individual retailer’s and center’s success.

Shopping centers rental and lease agreements should be

reviewed with the advise of expert

Organizing and Staffing

of Pharmacy

Exercise 16

1.Committees – is another common

organizational form used in situations where

group participation and decision are required

2.Delegation of authority - the right to make

decisions, carry out actions and direct others

3.Delegation of work – The assignment of

part of a manager’s work to others.

KEY TERMS

Line organization – this is the simplest form of

structure and refers to a straight-line responsibility

and control from the top management to the middle

management and to the lower level

Line and staff – This utilizes the assistance of experts

or specialist.

Organizational chart – is a diagram or drawing

showing the important aspects of an organizational

structure. It shows the relationship among positions

as to authority, responsibility and accountability, and

the people who occupy them

Accountability – This is the answerability of the

obligation to perform the delegated responsibility and

to exercise the authority for the proper performance of

the work.

Organization – it is the framework or backbone by

which the work of a business, managerial or

otherwise, is performed, that it provides the required

channels, points of origin, and flow of management

direction and control

Departmentation - results from the grouping of work,

the desire to obtain organization units of manageable

size, and to utilize managerial ability.

Job description – the specification of tasks

activities associated with particular job

Unity of command – this refers to the

arrangement in an organization where there is

a chain of authority in which every member

knows to whom he reports and who reports to

him in turn

Span of control – this refers to the number of

people a manager can effectively control and

manage.

Employee recruitment – this is pooling of job

candidates to match the human resources plan of the

organization.

Unity of command –command must be established for

every worker s.

Unity of direction – each employee should have a clear

understanding of, and willingness to work for, the

goals of the business

Scalar chain – rests at the top and flows downward.

Questions

1. Discuss the importance of an organizational structure for a

pharmacy.

A proper organizational structure will help a pharmacy survive by

ensuring that tasks are completed and a foundation is laid for

future growth

1. What relationship exists between authority and responsibility?

Responsibility – this is the work or duty assigned to a particular position

Authority – It refers to the power or right to be obeyed.

1. Name some common sources for potential employees

a. Employees of the pharmacy or parent company

b. Referrals

c. Employees of other companies

d. Employment agencies

e. Educational institutions

f. Labor unions

g. Advertising

h. Drop-ins

1. What steps should be considered by the pharmacist/drugstore owner in

selecting the most qualified applicant for the job?

1. Reception of applicants

2. Preliminary interview

3. Application form

4. Employment test

5. Final selection by immediate supervisor or department head

6. Physical and Medical Examination

7. Hiring

8. Orientation/Induction/Indoctrination

1. A. Branch Pharmacist- all

A. Assistant Pharmacist –all

B. Sales clerk – all

The basic organizing process

1. Define the goals of the pharmacy

2. Identify and define each task to be completed

3. Group related tasks into jobs that can be assigned to an employee

4. Group the jobs into units that are related in some manner

5. Assign a manager to each unit and provide the manager with necessary

authority and responsibility to complete the jobs within the unit

6. Arrange these units relative to one another, both horizontally and

vertically (establish who reports to whom)

7. Establish a control system for measuring the progress and

achievements of each group.

The Basic Staffing Process

1. Based on the objectives and level of business activity, forecast future personnel

needs in terms of both numbers and type of position

2. Based on the pharmacy owner’s personal goals, determine how many

management positions will be needed in the future and in what service areas.

3. Specify each type of job

4. Assess the internal aspects of employment in terms of working conditions, policies

5. Determine where the right kind of potential employees might be found

6. Actively recruit good personnel by promoting job opportunities

7. Select persons for employment on the basis of a formalized screening process

8. Actively orient employees to their new positions

9. Train employees to do their jobs and develop them for any planned advancement

10. Develop wage and benefit programs that are fair to the employees and affordable

for the pharmacy

11. Motivate employees and evaluate their activities