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Chapter 1 Introduction to Marketing

Chapter 1 Introduction to Marketing. Chapter 1 slides for Marketing for Pharmacists, 2nd Edition. Learning Objectives. Define the term marketing . Describe four key elements associated with the act of marketing. Compare and contrast transactional marketing and relationship marketing.

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Chapter 1 Introduction to Marketing

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  1. Chapter 1Introduction to Marketing Chapter 1 slides for Marketingfor Pharmacists, 2nd Edition

  2. Learning Objectives • Define the term marketing. • Describe four key elements associated with the act of marketing. • Compare and contrast transactional marketing and relationship marketing. • Analyze some of the misconceptions surrounding the practice of marketing. • Justify the need for pharmacists to market themselves and their services. • Differentiate various approaches to marketing from the “marketing concept.” • Assess key obstacles to the marketing of pharmacists’ professional services.

  3. Basic Marketing Principles TIP Marketing is not bad --- only some marketers. What is marketing? And why does it have such a bad reputation?

  4. Honesty and Ethical Ratings of People in Different Professions, 2005 Gallup Poll

  5. How have marketers benefited you and society?

  6. Whether marketing is “good” or “bad” depends on how it is practiced. TIP Actual practice depends on your approach.

  7. Marketing Defined TIP It’s all about exchanges.

  8. Definition of marketing Exchanges between people in which something of value is traded for the purpose of satisfying needs and wants

  9. Pharmacist exchanges • Dispensing a drug • Helping patients select OTC medications • Providing drug information to patients or health care professionals • Taking a patient’s blood pressure • Counseling patients about drug regimens

  10. Pharmacists have exchanges with • Patients • Physicians • Third-party insurers • Their employer • Their boss • Pharmacist co-workers

  11. Transactional versus Relationship Marketing

  12. Two ways of looking at marketing exchanges (a.k.a. transactions) • Way 1: Isolated, individual transactions; participants never expect to do business again (transactional marketing ) • Way 2: Series of transactions over time • Called relationship marketing (RM) • RM focuses on developing long-term relationship (i.e., customer loyalty)

  13. Relationship marketing • Parties focus less on bargaining hard for deals and 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 and get the patient out of the door • Relationship marketing – every interaction with a customer is an opportunity to help the customer and strengthen the relationship

  14. Relationship Marketing Develop a relationship with customer. Collect and manage customer information. Individualize your services to customers. Involve front-line personnel. Emphasize long-term outcomes. Pharmaceutical Care Establish therapeutic relationship Assess and record patient needs. Create an individualized care plan. Delegate clerical tasks to free up time for professional duties. Monitor impact on patient outcomes. Characteristics of

  15. Transactional Orientation Relationship Orientation Is pharmacy practice predominantly transactional or relationship-oriented?

  16. Every pharmacist is a marketer.

  17. Everything pharmacists do can be called marketing: • Dispensing a prescription drug C Assisting patients in the selection of OTC medications C Providing drug info to patients or health care professionals C Taking a patient’s blood pressure C Counseling patients about drug regimens C Recruiting pharmacists for a new job C Educating pharmacy students

  18. Why study marketing? • Marketing is • 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

  19. Misconceptions about Marketing

  20. Misconceptions about marketing • Marketing is selling or advertising.

  21. Marketing Research Selling Pricing Marketing Merchandising Advertising Distribution

  22. Other misconceptions about marketing • Marketing is evil. • Health care professionals do not need to market. • Employee pharmacists do not need to market. • Only retail pharmacists need to market.

  23. Approaches to Addressing Marketing Problems in Pharmacy The way you approach a problem will determine how it is solved.

  24. Some process-centered approaches to marketing • Production – fast and cheap • Sales – fast and cheap with heavy selling • Product – better mousetrap

  25. Customer-centered approaches to marketing • Marketing concept • Needs and wants • Targeted customers • Products and services that satisfy • Societal marketing • Considers societal impact

  26. What is the dominant approach in pharmacy practice? What is your approach?

  27. Major Trends that Will Affect Pharmacist Practice

  28. Health savings accounts High-deductible insurance plan Consumer-driven health care (CDHC) Cost sharing Disease/wellness management

  29. Aging of the baby boomers • Retirement of post-World War II baby boom generation • Demanding, activists • Unwilling to accept health care status quo • Expect to live longer and healthier lives throughout their retirement

  30. Around-the-clock society • People expect services and products 24/7/365. • Convenience is no longer an option in pharmacy practice. • Hours • Location • Speed • Choice

  31. Service technology • Voice-operated telephone and information systems • Bar-code and RFID tracking • Robotics

  32. Service technology:Robotics

  33. Using Technology to Serve Patients

  34. Health care budgetary constraints • Rising health care expenditures concern government and other payers. • Medicare, Medicaid, Social Security, and other funding responsibilities • Funding battle among health care providers • Health care marketers must compete for funds.

  35. Healthcare innovations • Pharmacogenomics • Nanotechnology

  36. Rising global competition • Medical tourism • Thailand, India, Malaysia, Mexico, and Canada competing for the U.S. health care dollar • Patients without health care insurance or large-deductible health insurance plans • Drug importation/exportation • Large cross-border price differentials

  37. Key problems with marketing pharmacist services • Control of practice by nonpharmacists • Product orientation • Conflicting professional and merchant roles • Poorly defined image of pharmacists among public • Pharmacist shortages • Silos of health care

  38. Demand for pharmacists • New pharmacies opening daily • Pharmacist shortages • Rising pay • Overwork • Changing responsibilities

  39. Nursing Home Home Health Insurer Pharmacy Dr’s Office Hospital

  40. Conclusion • Marketing can change your way of thinking about current pharmacy practice. • The goal of this course is to help you develop amarketing mindset. • Application of marketing principles can help you change pharmacy practice. • Marketing can give you the tools to successfully promote yourself, your ideas, and the profession.

  41. Questions?

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