Ahmed Hassan Mohamed

Lecturer of Clinical Pharmacy

Clinical Pharmacy Department
 What Is Marketing?
Whether marketing is “good” or “bad” depends on how it is practiced.

TIP TIP
Marketing is not bad --- Actual practice depends
only some marketers. on your approach.
 Why study Marketing?
❑ Marketing
✓ A way of problem solving in the real world
✓ A way of influencing others

❑ Application of marketing can

✓ Help you get the job you want
✓ Make you a more effective pharmacist
 Marketing Vs Selling
❑ Marketing: Exchanges between people in which something of
value is traded for the purpose of satisfying needs & wants.

OLD view of NEW view of

marketing: marketing:
Making a sale Satisfying
“telling & selling” customer needs
 Why is Marketing Important?
Shifting Business Paradigms

Sellers’ markets Buyers’ markets

 What Is Marketing?
❑ The management process responsible
for identifying, anticipating & satisfying
customer requirements profitably.” TIP
❑ The activity, set of instructions & processes It’s all about
for creating, communicating, delivering & exchanges
exchanging offerings that have value for customers,
clients, partners & society at large.
Goals:
1) Keep & grow current customers by delivering satisfaction.
2) Attract new customers by promising superior value.
 Customer
Marketers consider a customer to be any person or group involved
in or affected by an exchange.

External: People outside the organization (patients, suppliers, third-

party payers, family members, other health care
professionals)

Internal: People within the organization (technicians, boss, people in

other departments)
Ways of looking at marketing exchanges
Way 1 Way 2

Transactional Marketing (TM) Relationship Marketing (RM)

▪ Isolated, individual transaction ▪ Series of transactions over time

▪ Participants never expect to do ▪ RM focuses on developing
business again long-term relationship (i.e.,
customer loyalty)
Ways of looking at marketing exchanges
Relationship marketing
 Parties focus less on bargaining, hard for deals & more on meeting
the needs of the other party.
 Marketers cultivate relationships over time that will benefit both
parties
The choice
 Transactional marketing: get what you can & get the patient out
of the door
 Relationship marketing: every interaction with a customer is an
opportunity to help the customer & strengthen the relationship
 Pharmaceutical Marketing
Relationship Marketing Pharmaceutical Care

Develop a relationship with customer Establish therapeutic relationship

Collect & manage customer information Assess & record patient needs

Individualize your services to customers Create an individualized care plan

Delegate clerical tasks to free up time

Involve front-line personnel
for professional duties
Emphasize long-term outcomes Monitor impact on patient outcomes
 The Marketing Process
A simple model of the marketing process:
• Understand the marketplace & customer needs & wants.

• Design a customer-driven marketing strategy.

• Construct integrated marketing program that delivers superior value

• Build profitable relationships & create customer delight

• Capture value from customers to create profits & customer quality

 Needs, Wants, and Demands
❑ Need: State of felt deprivation
 Physical needs: Food, clothing, shelter, safety
 Social needs: Belonging, affection
 Individual needs: Learning, knowledge, self-expression

❑ Want: A Form that a human need takes, as shaped by culture &

individual personality e.g. I want a hamburger & a soft drink.

❑ Demands: Human want backed by buying power .i.e. I have money

to buy this meal.
Wants + Buying Power = Demand
 Need/ Want Fulfillment
Needs & wants are fulfilled through a Marketing Offering:

❑ Products:
 Persons, places, organizations, information, ideas.

❑ Services:
 Activity or benefit offered for sale that is essentially intangible &
does not result in ownership.
❑ Experiences:
 Consumers live the offering.
 Customer Value & Satisfaction
❑ Dependent on the product’s perceived performance relative to a
buyer’s expectations.
❑ Care must be taken when setting expectations:
 If performance is lower than expectations, satisfaction is low.
 If performance is higher than expectations, satisfaction is high.

❑ Customer satisfaction often leads to consumer loyalty.

❑ Some firms seek to DELIGHT customers by exceeding

expectations.
 Marketing Management
❑ The art & science of choosing target markets & building
profitable relationships with them.
 Requires that consumers & the marketplace be fully understood
 Aim is to find, attract, keep & grow customers by creating,
delivering & communicating superior value.
 Marketing managers must consider the following, to ensure a
successful marketing strategy:
1. What customers will we serve? — What is our target market?
2. How can we best serve these customers? — What is our value
proposition?
 Choosing a Value Proposition
The set of benefits or values a company promises to deliver to
consumers to satisfy their needs.

 Value propositions dictate how firms will differentiate & position

their brands in the marketplace.
 The Marketing Concept
The marketing concept:

 A marketing management philosophy that achieving

organizational goals depends on knowing the needs & wants of
target markets & delivering the desired satisfaction better than
competitors.
 Customer Perceived Value
Customer’s evaluation of the difference between all of the benefits &
all of the costs of a marketing offer relative to those of competing
offers
– Perceptions may be subjective
– Consumers often do not objectively judge values & costs.

Customer value = perceived benefits – perceived sacrifice (i.e;

cost, time, effort).
The Marketing Mix

Product

Place Price

Promotion
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 The Marketing Mix
The set of controllable, tactical marketing tools that the firm blends to
produce the response it wants in the target market.
Product: Variety, features, brand name, quality, design, packaging, &
services.
Price: List price, discounts, allowances, payment period & credit terms
Place: Distribution channels, coverage, logistics, locations,
transportation, assortments, and inventory.
Promotion: Advertising, sales promotion, public relations & personal
selling.
 Customer-Driven Marketing Strategy
❑ Requires careful customer analysis.
❑ To be successful, firms must engage in:
1) Market segmentation
2) Market targeting
3) Differentiation
4) Positioning
 Market Segmentation & Targeting
Segmentation:
The process of dividing a market into distinct groups of
buyers with different needs, characteristics, or behavior
who might require separate products of marketing programs.
 Market Segmentation
Key segmenting variables:
 Geographic
 Demographic
 Psychographic
 Behavioral

Different segments desire different benefits from products.

Best to use multivariable segmentation bases in order to identify
smaller, better-defined target groups.
 Market Segmentation
Why Segment?:
 Meet consumer needs more precisely
 Increase profits
 Segment leadership
 Retain customers
 Focus marketing communications
 Evaluating Market Segments
Segment size & growth:
 Analyze current segment sales, growth rates & expected profitability.

Segment structural attractiveness:

 Consider competition, existence of substitute products & the power of buyers
& suppliers.

Company objectives & resources:

 Examine company skills & resources needed to succeed in that segment.
 Offer superior value & gain advantages over competitors.
 Market Targeting
Involves evaluating each market segment’s attractiveness &
selecting 1 or more segments to enter.
Market targeting involves:
 Evaluating marketing segments
 Segment size, segment structural attractiveness & company objectives &
resources are considered.
 Selecting target market segments
 Alternatives range from undifferentiated marketing to micromarketing.
 Differentiation & Positioning
A product’s position is:
 The way the product is defined by consumers on important
attributes—the place the product occupies in consumers’ minds
relative to competing products.
 Perceptual positioning maps can help define a brand’s position
relative to competitors.

Positioning:
Arranging for a product to occupy a clear, distinctive & desirable
place relative to competing products in the minds of target
consumers.
 Differentiation & Positioning
Differentiation: Creating superior customer value by actually
differentiating the market offering.

Identifying possible value differences & competitive advantages:

 Key to winning target customers is to understand their needs better
than competitors do & to deliver more value.

Competitive advantage:
 Extent to which a company can position itself as providing
superior value.
 Achieved via differentiation