Chapter 8Strategic Marketing
Planning
Chapter 8Strategic Marketing
Planning
Chapter 8 slides for Marketing for Pharmacists, 2nd Edition
Learning ObjectivesLearning ObjectivesDescribe the strategic planning process.
Discuss the role of strategic marketing planning for pharmacists.
Define the following terms associated with strategic planning: mission statement, business plan, SWOT analysis, marketing goals and objectives, brand, commodity, brand awareness, brand image, brand equity.
Develop a strategic marketing plan for a pharmaceutical service or product.
Role of a Mission Statement
Role of a Mission Statement
TIP All planning and
strategiesoriginate from it.
TIP All planning and
strategiesoriginate from it.
Every part of a business plan derives from the mission.
Every part of a business plan derives from the mission.
Mission
BusinessPlan
MarketingPlan
FinancialPlan
Human Resources
Plan
Distribution &
Supply
Mission
BusinessPlan
MarketingPlan
FinancialPlan
Human Resources
Plan
Distribution &
Supply
Vision without action is a daydream. Action without vision is a nightmare.- Japanese Proverb
Strategic Marketing Plans
Strategic Marketing Plans
A step-by-step plan for solving marketing problems
Strategic marketing plansStrategic marketing plans
Can be conducted any time you have a marketing problemNew service (diabetes management)Change in services (Internet pharmacy) New competitor (Wal-Mart)
In pharmacy, many services are provided on hit or miss basis without much planning.
Wal-Mart fills $4 generic prescriptions
Wal-Mart fills $4 generic prescriptions
Wal-Mart Stores announced the expansion of a generic prescription drug discount program introduced last month in Florida to additional states.
Wal-Mart said that the program has received a strong customer response in Florida. In the Tampa area, Rxs increased by 36,000 in the first 10 days of the program.
The generic medications in the program account for almost 30% of the Rxs filled at Wal-Mart pharmacies in Florida. http://www.npr.org/templates/story/story.php?storyId=6326035
Strategic Marketing Planning Process
Step 4Reassess
Step 4Reassess
Step 3Implement
Step 3Implement
Step 2DevelopStrategy
Step 2DevelopStrategy
Step 1Formulate
Goal
Step 1Formulate
Goal
MissionStatement
MissionStatement
AnalyzeEnvironment
(Opportunities,Threats)
AnalyzeEnvironment
(Opportunities,Threats)
Analyze Resources
(Strengths,Weaknesses)
Analyze Resources
(Strengths,Weaknesses)
1. Segment the market2. Select a target market3. Position your product
Developing the Strategic Developing the Strategic Marketing PlanMarketing Plan
SWOT AnalysesSWOT Analyses
Strengths, Weaknesses, Opportunities, Threats
SWOT analysesSWOT analyses
Each SWOT is unique.Require a clear understanding of
the competition. Elements of SWOT are framed in comparison with competitors.A location is a strength as it
compares with competitors. A threat occurs within the context of competitors.
Capability assessmentCapability assessment
Strengths (S)Weaknesses (W)
Strengths or weaknesses of your organization
Strengths or weaknesses of your organization
People/skills - Availability and training of personnel that give you an advantage
Money - Availability of $ to finance initiativesSystems - How well designed, organized, and
coordinated is your system?Facilities - Availability and condition Market assets - Image/reputation in the eye of
the customer. Degree of market leadership.
Analyze the market environment
Analyze the market environment
Opportunities (O)Threats (T)
OpportunitiesOpportunities
What needs are not being met in the marketplace?
Can we meet these needs better than our competitors?
How is the environment changing to our advantage or disadvantage?
ThreatsThreats
What potential problems might threaten the success of the firm initiatives?
What potential new competitors may arise? How might the firm’s current competitors respond?
What changes may be occurring in the environment to make your product or service obsolete?
ThreatsThreats
How might governmental policies, changing customer demographics, or a recession affect your firm’s product or service?
How might changes in customers’ tastes affect customer demand?
What major trends will significantly affect your firm and the market?
Retail clinics – Threat
or opportunity?
Retail clinics – Threat
or opportunity?
Medicare Prescription Drug Benefit (Part D):
Threat or opportunity?
Medicare Prescription Drug Benefit (Part D):
Threat or opportunity?
Identifying opportunities and threats in markets (Porter)
Identifying opportunities and threats in markets (Porter)
Level of rivalry between competitors
Ease with which competitors can enter market
Power of suppliers (e.g., pharmacies)
Power of customers (e.g., PBMs)
Availability of substitutes
Summary --SWOT is used to answer:
Summary --SWOT is used to answer:
Does the company have a distinct advantage in the current market environment upon which a strategy can be built?
Do weaknesses make the company vulnerable to competitors or disqualify it from pursuing certain opportunities?
Strategy FormulationStrategy Formulation
The plan to achieve
marketing goals and objectives
Strategic Marketing Planning Process
Step 4Reassess
Step 4Reassess
Step 3Implement
Step 3Implement
Step 1Formulate
Goal
Step 1Formulate
Goal
MissionStatement
MissionStatement
AnalyzeEnvironment
(Opportunities,Threats)
AnalyzeEnvironment
(Opportunities,Threats)
Analyze Resources
(Strengths,Weaknesses)
Analyze Resources
(Strengths,Weaknesses)
Formulating goals, objectives, and strategies
Formulating goals, objectives, and strategies
Goals: General outcome of anticipated actions, e.g., “increase company profitability.”
Objectives: Quantify general outcome, e.g., “increase ROA by 10% by end of fiscal year.”
Strategy: Plan to achieve goals and objectives.How will you segment your market? (Ch.10)What segments will you target? (Ch.10)How will you position your product in the
market?
Positioning Pharmaceutical Services
Positioning Pharmaceutical Services
Goal -- Develop a clear, distinct, and valued image of your mix in the minds of consumers.
Positioning, SWOT, and the Marketing Mix
Positioning, SWOT, and the Marketing Mix
Using information from SWOT analysis, Select a unique combination of 4 P’sThat meets your customers’ needs and
wants better than your competitors do.All 4 P’s should act to provide a
consistent and powerful image of your product or service.
Don’t become a commodityDon’t become a commodity
Commodities are products in which consumers can’t perceive any difference, e.g., gasoline.
They are selected on the basis of price and location.
Brands and BrandingBrands and Branding
A brand is a name, term, sign,
symbol, or design that helps identify a product
or company.Branding
attempts to get consumers to
assign meaning to a brand.
TIP Your personal brand
is your name.
TIP Your personal brand
is your name.
BrandRecognition
BrandAwareness
BrandRecall
Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing.
57(January 1993). 1-22. (Adapted)
Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing.
57(January 1993). 1-22. (Adapted)
Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of
Marketing. 57(January 1993). 1-22. (Adapted)
Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of
Marketing. 57(January 1993). 1-22. (Adapted)
BrandBrandImageImage
Types ofTypes ofBrand AssociationsBrand Associations
Favorability ofFavorability ofBrand AssociationsBrand Associations
Strength ofStrength ofBrand AssociationsBrand Associations
Uniqueness ofUniqueness ofBrand AssociationsBrand Associations
Customer Experiences with the Marketing Mix•Price•Promotion•Place•Product
Customer Experiences from Others•Word-of-mouth recommendations•Press and other media coverage
Brand Awareness•Recognition•Recall
Brand Image•Types of associations•Favorability•Strength•Uniqueness
Brand Equity
Problems faced by pharmacists in changing their brand’s image
Problems faced by pharmacists in changing their brand’s image
The image of pharmacists is controlled by others.
Pharmacists are unwilling to exert the effort.
Pharmacists don’t know how.
Implementing the PlanImplementing the Plan
Problems in implementation:Insufficient management
commitmentLack of staff commitment or
expertiseLack of or poor informationStructural contradictionsOverextension
Final Step: ReassessFinal Step: Reassess
Evaluate marketing success and ways to improve.
ConclusionConclusion
Students and pharmacists should know how to develop a strategic marketing plan.Clerkship
Practice
Career planning
Questions?Questions?
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