Chapter 2 Important Concepts in Marketing
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Transcript of Chapter 2 Important Concepts in Marketing
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IMPORTANT MARKETING
CONCEPTS
David Holdford, RPh, MS, PhD
Professor, School of Pharmacy
Virginia Commonwealth University
Each Concept Has an Important Lesson for
Pharmacists
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Slides to Accompany Chapter 2 in “Marketing for
Pharmacists”
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Learning Objectives
Define key marketing terms: product; core, expected, and
augmented product; marketing myopia; potential, target, and
actual markets; the marketing mix; the four P’s; positioning; and
value proposition
Explain the difference between customers, partners, and
competitors
Describe two major categories of competitors
Differentiate internal from external customers
Describe the “products” offered by pharmacists
Identify and differentiate the various marketing tasks, the type of
demand they regulate, and suggested strategies
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DEFINING THE PRODUCT
What is the general “Product”
Provided by Pharmacists to
Patients?
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Marketing Myopia
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Core
Product
Total Product Concept
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Core
Product
Expected
Product
Augmented
Product
Tangible
Product
Total Product Concept
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MEASURING THE MARKET
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Market
Set of all individuals and organizations who
are actual and potential buyers of a product
or service
Wherever there is potential for trade, there is
a market
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Market
Actual market size depends on:
Interest of the customer
Ability to access and pay for the product
Willingness to pay
Actual market may include untargeted
customers
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THE MARKETING MIX
PRODUCT PLACE
PRICE PROMOTION
POSITION
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CUSTOMER MARKETER
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Value Proposition “promise to customers of the value to be delivered in exchange for some
price”
“explains in a compelling and clear manner why a product or service
solves a problem or makes things better for customers than competing
options.”
Value proposition requires definition of:
• target audience
• the problem(s) faced by customers for which a solution is offered
(e.g., non-adherence with medications, uncontrolled warfarin levels)
• Based upon that information, the value proposition presents the
main features of the value package to be provided, typically
supported by evidence or logic-- called proof points.
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DIFFERENCE BETWEEN
CUSTOMERS
COMPETITORS PARTNERS
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Customer
Any person or group involved in or affected by an exchange
External – people outside of the organization
Internal – people within the organization
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Primary Customer
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Who is the Primary Customer of
Newly Graduated Pharmacists?
Your Employer or Your Patients?
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Competitors
Identification of competitors requires a
clear definition of one’s product(s),
customer(s), & market(s)
What markets are served by Walgreens?
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Competition
Intra type competitors compete by offering
similar tangible & augmented products
Inter type competitors compete in terms of the
benefits provided
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Other Marketing Terms
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THE TASK OF MARKETING IS
TO INFLUENCE DEMAND
Through various combinations of the marketing mix
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Market Demand
Description Health Care Examples
Negative Demand
When potential customers dislike a product and may even go to great lengths to avoid it.
Screening for colon cancer even when at high risk. Men's aversion to vasectomies.
No Demand When customers are indifferent or uninterested in a product.
Preventive health care services and MTM services.
Latent Demand
When there is a strong need but no product available to satisfy it.
There are unmet needs for cures for cancer and drugs without adverse effects.
Declining Demand
When demand is falling and likely to continue falling.
The old time pharmacy
Irregular Demand
This describes a market with undesirable fluctuations in demand.
Retail pharmacy practice where customers decide the time and place to visit.
Full Demand Supply is perfectly balanced with demand.
Good examples are uncommon.
Overfull Demand
When demand exceeds supply. Drug shortages due to unexpected demand situations or shortages in supply.
Unwhole-some Demand
Demand that is not in the best interests of the consumer or society.
Cigarette, illicit drug, and underage alcohol use
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Summary
Knowing marketing terminology helps to
learn marketing concepts.
Those concepts can be used to:
Communicate with managers
Understand more complex topics
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