Presentation on theme: "Chapter 1 Introduction to Marketing"— Presentation transcript:
1 Chapter 1 Introduction to Marketing Chapter 1 slides for Marketing for 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 What is marketing?And why does it have such a bad reputation?TIPMarketing is not bad ---only some marketers.
4 Honesty and Ethical Ratings of People in Different Professions, 2005 Gallup Poll%Very high/AverageLow/HighVery lowNurses82153Pharmacists67284Medical doctors6531High school teachers64277Policemen618Clergy5435Bankers414810Journalists44Lawyers1846Congressmen14Advertising practitioners1150Car salesmen49Telemarketers60
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 medicationsProviding drug information to patients or health care professionalsTaking a patient’s blood pressureCounseling patients about drug regimens
10 Pharmacists have exchanges with PatientsPhysiciansThird-party insurersTheir employerTheir bossPharmacist co-workers
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 timeCalled 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 choiceTransactional marketing – get what you can and get the patient out of the doorRelationship marketing – every interaction with a customer is an opportunity to help the customer and strengthen the relationship
14 Characteristics of Relationship Marketing Pharmaceutical Care Develop a relationship with customer.Collect and manage customer information.Individualize your services to customers.Involve front-line personnel.Emphasize long-term outcomes.Pharmaceutical CareEstablish therapeutic relationshipAssess and record patient needs.Create an individualized care plan.Delegate clerical tasks to free up time for professional duties.Monitor impact on patient outcomes.
15 Is pharmacy practice predominantly transactional or relationship-oriented? OrientationRelationship
17 Everything pharmacists do can be called marketing: Dispensing a prescription drugC Assisting patients in the selection of OTC medicationsC Providing drug info to patients or health care professionalsC Taking a patient’s blood pressureC Counseling patients about drug regimensC Recruiting pharmacists for a new jobC Educating pharmacy students
18 Why study marketing? Marketing is Application of marketing can A way of problem solving in the real worldA way of influencing othersApplication of marketing canHelp you get the job you wantMake you a more effective pharmacist
20 Misconceptions about marketing Marketing is selling or advertising.
21 Marketing Marketing Research Selling Pricing 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 cheapSales – fast and cheap with heavy sellingProduct – better mousetrap
25 Customer-centered approaches to marketing Marketing conceptNeeds and wantsTargeted customersProducts and services that satisfySocietal marketingConsiders societal impact
26 What is the dominant approach in pharmacy practice? What is your approach?
27 Major Trends that Will Affect Pharmacist Practice
28 Consumer-driven health care (CDHC) Health savingsaccountsHigh-deductibleinsurance planCostsharingDisease/ wellnessmanagement
29 Aging of the baby boomers Retirement of post-World War II baby boom generationDemanding, activistsUnwilling to accept health care status quoExpect 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.HoursLocationSpeedChoice
31 Service technology Voice-operated telephone and information systems Bar-code and RFID trackingRobotics
33 Using Technology to Serve Patients Speed serviceTouch-screen interactive kiosksElectronic refill remindersElectronic prescribing, fax prescribingATM-like dispensing machinesIncrease service Convenience/accessibilityTelepharmacy, telephone call centersInternet pharmacyDiagnostic technologies (e.g., blood pressure machine)Videos and other educational technologiesWeb education, CD ROMsCustomize servicePersonalized patient e-profilesCustomer relationship management (CRM) cardsInteractive kiosksInteractive Web pagesImprove service quality, solve drug-related problemsTelephone call centersElectronic prescribingMaintain a patient relationshipCRM cardsWeb support groups
34 Health care budgetary constraints Rising health care expenditures concern government and other payers.Medicare, Medicaid, Social Security, and other funding responsibilitiesFunding battle among health care providersHealth care marketers must compete for funds.
36 Rising global competition Medical tourismThailand, India, Malaysia, Mexico, and Canada competing for the U.S. health care dollarPatients without health care insurance or large-deductible health insurance plansDrug importation/exportationLarge cross-border price differentials
37 Key problems with marketing pharmacist services Control of practice by nonpharmacistsProduct orientationConflicting professional and merchant rolesPoorly defined image of pharmacists among publicPharmacist shortagesSilos of health care
38 Demand for pharmacists New pharmacies opening dailyPharmacist shortagesRising payOverworkChanging responsibilities
40 ConclusionMarketing can change your way of thinking about current pharmacy practice.The goal of this course is to help you develop a marketing 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.