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Chapter 11 Marketing Communication

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1 Chapter 11 Marketing Communication
Chapter 11 slides for Marketing for Pharmacists, 2nd Edition

2 Learning Objectives Discuss the purpose of promoting pharmacy products and pharmacist services. Explain barriers to effective marketing communication, using the communication model. Describe the information processing model. Use the information processing model to discuss the relative effectiveness of various communication media. List the six forms of promotion used to communicate marketing messages. Explain the advantages and disadvantages of each of these forms of promotion. Offer basic recommendations for promoting services. Describe the steps used in developing a promotional plan.

3 Promotional Communications
Promotional communications are communications with a purpose. About a product’s existence, features, benefits. Ultimate goal is to influence behavior. Consumer opinions are fine but meaningless if they do not result in people doing what you want (e.g., most trusted).

4 Purpose of promotional communications
To inform Prescription refills now on the Internet. To persuade Our prices can’t be beat! To remind Don’t forget, we’re still America’s most trusted.

5 Promotional message Should be based on Company mission SWOT analysis
The other P’s of the marketing mix

6 Promotion Promotion must have a clear message.
Develop clear company image/identity Involves asking, “what are we?” Whether a company or individual tries or not, some identity will be formed in the mind of the customer. Promotion is about establishing a clear image of their product in the eye of the customer. Involves asking, “What am I providing?” That is why it so important to understand the tangible, core, and augmented product that one wants to offer. Otherwise the message is garbled. Definition of p-care. Whether the marketer actually answers this question or not, an image will be developed about the product in the eye of the customers. Whether that image will be what the marketer wants depends on how well the message is transmitted and received.

7 Actual company names Costco Medicine Shoppe
CVS Good Neighbor Pharmacies Hinky Dinky Pharmacy

8 “Winn-Dixie division ties turkey sales to pharmacy”
Customers receive a free pound turkey with the transfer of two or more prescriptions to Winn-Dixie pharmacies. The food chain ran a full page ad in the front section of the Atlanta Constitution/Atlanta Journal An average of 50 to 60 people per store have taken advantage of the promotion every year for the last five years. Supermarket News, Nov 21, 1994 v44 p 35.

9 Figure 11-1: Elements of promotional communications
Consumer Action

10 The Communication Model
All communications follow this simple model. TIP Tailor messages to the situation.

11 Noise Receiver Feedback Medium Sender Receiver Encoding Decoding
The Communication Model

12 Information Processing Model
TIP The message can be lost at any point. Each step in the model is a hurdle that must be overcome.

13 Barriers to communication
Selective attention 1600 commercial messages per day 80 messages consciously noticed 12 provoke some reaction Some advertisers try anything to get your attention.

14 Barriers to communication
Selective distortion Twisting message to hear what you want Selective recall Committing message to long-term memory

15 Information Processing Model

16 Important points about the information processing model
Message must run a path with multiple barriers to its progression. Failure at any step means ultimate failure of the communication. Communications must reach, grab attention, be comprehensible, be accepted, and be retained to be effective!

17 Avoiding miscommunication
Use messages that are… Simple Clear Interesting Repeated

18 Options for promotion

19 Marketer controlled The message, medium, and delivery are directly managed through the payment of money.

20 Advertising Any paid form of nonpersonal presentation and promotion by a sponsor - Print: newsletters, outdoor ads, newspaper, magazines, yellow pages. Includes patient package inserts and educational literature - Broadcast: TV and radio Low cost/exposure, useful for creating images, easy to ignore

21 Service advertising strategies
Present services more tangibly Incorporate physical elements of service into the promotion (e.g., counseling areas) Associate service with concrete, specific language and symbols (e.g., Prudential) Capitalize on word-of-mouth recommendations (e.g., customer testimonials)

22 Service advertising strategies (continued)
Demonstrate the customer’s participation in the service process Present pharmacist and patient in promotions. Provide documentation to demonstrate the consistent quality of services 98% satisfaction (we’re working on other 2%) Awards for excellence

23 Service advertising strategies (continued)
Present a series of actions using drama to provide a unifying framework for describing and communicating aspects of the service experience

24 Personal Selling Personal written or oral presentations to customers as individuals or groups , telephone call, presentations Immediate, interactive, and hard to ignore. Personal relationships are cultivated. Unlike advertising, messages often require response.

25 Personal selling examples
Patient counseling Phoning physicians to get them to change a patient’s therapy Hospital in-service programs for nurses Hospital grand rounds Brown bag meetings Counterdetailing

26 5-step personal selling process
Preliminary stage: Gather patient information. Step 1: Assess information. Step 2: Ask probing questions. Step 3: Present eatures and benefits. Step 4: Address concerns. Step 5: Make the offer. Prelimary stage: Gather patient information. This stage consists of a exploratory session between the salesperson and customer. Individuals introduce each other and decide whether there is sufficient interest and need to continue with the sales process. Step 1: Assess information. In this step, the salesperson moves beyond the general information exchanged in the preliminary stage to more specific inquiries that can clarify possible needs and concerns of the patient. Using active listening techniques and open ended questioning, the pharmacist attempts to involve the patient in the search for a solution to his or her health care needs. Step 2: Ask Probing Questions. In this stage, the pharmacists asks more focused questions about specific patient needs. Patients are asked precise information about the situation (e.g., What medications are you taking? What health conditions do you have?), problems (e.g., Have you experienced any side effects? Are you able to control your blood pressure?), and implications (e.g., Are you able to be productive at work? Do you understand what will happen if you can’t control your blood pressure?). From the information provided the pharmacist has patients articulate their specific needs and guides them toward potential solutions. The pharmacist may ask, “Would it be helpful for you to be able to monitor you blood pressure at home, so you do not have to visit the physican so often?” The purpose of this step is to ready the patient for a discussion about features and benefits of pharmacy services that meet the stated needs. Step 3: Present Features and Benefits. After patients have identified their needs and potential options, the pharmacist presents alternative solutions. A concise description of services and products offered by the pharmacy is provided by the pharmacist. For a patient who seeks to monitor their blood pressure, the pharmacist may lay out the the differences between a purchase of home monitoring products, in-store monitoring by the pharmacist, and in-store monitoring by a machine. In doing so, the information is tailored the patient’s specific needs and preferences. Step 4: Address Concerns. It is common for patients to object to or seek clarification about some issue during the selling process. The key is to actively listen and respond appropriately. Acknowledge the objection, ask further questions, and answer in a way that resolves the objection or negotiates an alternative solution. Step 5: Make the Offer. Once the benefits of a solution have been communicated and all of the objections have been resolved, the pharmacist tries to close the deal by getting commitment from the patient to act. The action may be to make a purchase, sign a contract to participate in a program, or agree to follow a patient therapeutic plan.

27 Elevator Speech A short, scripted speech designed to promote something in the time it takes to ride an elevator.

28 Example of elevator speech
“Hi, my name is Bill Pharmacist. I work with patients to control their diabetes. I have a clinic at Jones Pharmacy. If you are interested, here is my card. Call the number and ask for me.”

29 Direct Marketing Individualized nonpersonal communication
Nonpersonal because communications standardized, mechanized to names on list More efficient than personal selling but less effective Impersonal Less credible

30 Customer Database Direct Communications Newsletters Direct mailings
Coupons and deals Telephone callbacks Automatic Rx refills Targeted magazines messages Referrals to local MDs Salesman visits Educational videos Free samples Screenings Support groups Free classes Internet Web sites Existing Customers Loyalty Cards Scanner Data Telephone 800 #’s Contact Customer Database Database Companies Coupon and Sample Redemptions Customer Surveys

31 Sales Promotion Messages used to promote quick sale not included above
Price deals, coupons, contests, sweepstakes, refunds and rebates, point of purchase displays Used to get attention and stimulate action Can generate expectations of deals and cause customers to be overly price sensitive

32 Sales promotion Trust is a key.
Misuse of customer information can change loyal customers to enemies. Giant Foods and CVS mailed refill reminders and information about new drugs. Negative public relations responses. All personnel who handle patient data should be trained to do so. Many mistakes can be made by persons who mean well but lack knowledge. Consumers should be informed about how their personal data will be used and asked for permission to use the information under specified conditions. Consumers should have the ability to opt out of any program. This should be stated up front, so that they do not feel pressured to par­ticipate. Marketers should fully disclose any conflicts of interest they have. For example, a pharmacist who asks a physician to switch drug brands should explain any financial arrangements through which he or his employer might benefit from the switch. Any direct marketing program should be seen as providing good value for all people involved. For those who participate, and even for those who are contacted to participate, the program should offer a clear and obvious advantage. The advantage might be in cost savings or improvements in health. If only the marketer appears to benefit, then consumers lose trust. Marketers should take special care with information relating to sen­sitive medical conditions. For patients with conditions such as AIDS or mental illnesses, release of data can cause tremendous harm.

33 Marketer Influenced Marketer attempts to indirectly influence the actions of impartial parties who are independent of marketers.

34 Public Relations Public relations encompasses a broad range of activities associated with the process of building a positive image and goodwill with the public. Lobbying Government relations Media relations Publicity Communications with constituents Public appearances with groups Community relations Lobbying – advocating for a cause with legislatures and government agencies • Government relations – communicating with and educating legislatures and government agencies • Media relations – dealing with the media in seeking publicity or stimulating interest for a cause • Publicity – communicating with the public through media (e.g., press releases, news conferences) • Direct communications with constituents • Public appearances with groups, (e.g., speeches, seminars) • Community relations – dealing with citizens and groups within an area.

35 Goal Assessing Goodwill Influencing Goodwill
Public relations promotes goodwill between marketers and the public. Goodwill toward the pharmacy profession is formed from positive images and mental associations about pharmacists, pharmacy employees, pharmacies, and the like. Public relations attempts to build positive images that are absent, strengthen positive images that are already there, and repair any negative images that exist. The stronger and more positive the image communicated, the greater the goodwill and consequent support for a cause. Influencing Goodwill

36 Publicity Any nonpaid attempt to get favorable coverage by the news media or prevent nonfavorable coverage Pharmacists use publicity extensively to influence media coverage of the profession. Media coverage can be generated by Speaking to a community group about nonprescription medications, Participating in an “adopt-a-highway” program, Sponsoring a baseball team, Lobbying to expand the role of pharmacists, Demonstrating a new flavoring system to make drugs more acceptable to pediatric patients, Poison prevention programs, National Pharmacy Week press releases, Free blood pressure screenings, Public service announcements, and Letters to the editor about negative depiction of a pharmacist in the news.

37 Public Relations Can be relatively inexpensive if it is do-it-yourself. Creates good will and humanizes a business. Gets greater attention. The negative side is that image is out of the hands of the marketer.

38 Word-of-Mouth Marketing (Buzz Marketing)
Active attempts to promote positive word-of-mouth (WOM) discussions about a product or service

39 How does buzz work?

40 Buzz starts with….. An opinion leader A message Try This New Thing!

41 Characteristics of a buzz-worthy message
Evokes an emotional response Personally relevant Meets an unmet desire (i.e., new) Clearly superior to what is currently available Consistent with current belief systems Visible Has a good story

42 Characteristics of opinion (a.k.a. thought) leaders
They are perceived as credible. They interact with others by job or nature. They travel. They are information-hungry by job or nature. They are vocal. They are exposed to the media.

43 How does buzz spread?

44 Buzz spreads like an infection through networks of people.

45 Arousing buzz Choose something that is buzz-worthy.
Identify opinion leaders. Get opinion leaders talking. Identify and overcome obstacles to adoption. Utilize multiple communication channels. Encourage adaptation. use lists to rank anything from best movies to most common pets. Another approach is to do something outrageous or amazing. (can just as easily cause negative word-of-mouth.) Some marketers generate buzz by having a secret. This technique was used with the introduction of the Segway Human Transporter. The inventor announced that he had a secret product that would be revolutionary, but refused to divulge any information until it was formally unveiled. 18 Code-named “Ginger,” the secret surrounding the Segway prior to launch generated tremendous buzz and publicity. Sometimes the object or idea itself is sufficient to get people talking (e.g., a flashy automobile, an audacious television show). Marketers just need to provide samples or demonstrations to stimulate buzz. Samples permit direct experience that will hopefully stimulate discussion. Personal digital assistants have been successful, in part, because of conversations initiated by its use at meetings or other gatherings. Owners of trendy automobiles such as the Mini Cooper or the Porsche 911 often get approached at stop lights or in parking lots by people who want to know about the vehicles.

46 Choosing a Medium Complicated message – TV or newspaper
Emotional message – TV or newspaper Cheapest way to reach most people – public relations or radio Most effective way to individualize message – direct marketing or personal selling Receiver is short on time – radio or newspaper

47 Developing a Promotional Plan
Requires understanding of product, customers, competitors, price, and target market Pharmacists Are Great!!!

48 Four steps Define objective of promotion.
Craft message and strategy for delivery. Select communication mix. Measure effectiveness.

49 1. Define the goal of promotion
Based on positioning statement e.g., Johnson’s Apothecary, page 258 Inform, persuade, and/or remind? Good communication is as stimulating as black coffee, and just as hard to sleep after. Anne Morrow Lindbergh

50 2. Define message and promotional strategy
Solving four problems: What to say How to say it in words How to say it in pictures Who should say it When designing message and strategy: KISS

51 Be sincere; be brief; be seated.
Franklin Delano Roosevelt

52 3. Select a communication mix
Depends on Message (e.g., complex, simple) Effectiveness in comparison with other media Ability to individualize message Need for two-way communication Ability to reach one’s target market Cost

53 4. Assess effectiveness Assess the result of your communications.
There is no way of knowing your communications are effective unless you assess. The greatest problem in communication is the illusion that it has been accomplished. - George Bernard Shaw

54 Summary Match media to the message.
Integrate promotion with overall marketing strategy and business objectives. Be clear about the purpose of your communications.

55 Questions?

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