Presentation on theme: "Chapter 8 Strategic Marketing Planning"— Presentation transcript:
1 Chapter 8 Strategic Marketing Planning Chapter 8 slides for Marketing for Pharmacists, 2nd Edition
2 Learning Objectives Describe 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.
3 Role of a Mission Statement TIPAll planning and strategiesoriginate from it.
4 Every part of a business plan derives from the mission. Vision without action is a daydream. Action without vision is a nightmare.- Japanese Proverb
5 Strategic Marketing Plans A step-by-step plan for solving marketing problems
6 Strategic 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.
7 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.
8 Strategic Marketing Planning Process Developing the Strategic Marketing PlanStep 4ReassessAnalyzeResources(Strengths,Weaknesses)MissionStatementStep 1FormulateGoalStrategic Marketing Planning ProcessStep 3ImplementAnalyzeEnvironment(Opportunities,Threats)Step 2DevelopStrategySegment the marketSelect a target marketPosition your product
10 SWOT 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.
12 Strengths or weaknesses of your organization People/skills - Availability and training of personnel that give you an advantageMoney - Availability of $ to finance initiativesSystems - How well designed, organized, and coordinated is your system?Facilities - Availability and conditionMarket assets - Image/reputation in the eye of the customer. Degree of market leadership.
13 Analyze the market environment Opportunities (O)Threats (T)
14 Opportunities 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?
15 ThreatsWhat 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?
16 ThreatsHow 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?
18 Medicare Prescription Drug Benefit (Part D): Threat or opportunity?
19 Identifying opportunities and threats in markets (Porter) Level of rivalry between competitorsEase with which competitors can enter marketPower of suppliers (e.g., pharmacies)Power of customers (e.g., PBMs)Availability of substitutes
20 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?
21 The plan to achieve marketing goals and objectives Strategy FormulationThe plan to achieve marketing goals and objectives
23 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?
24 Positioning Pharmaceutical Services Goal -- Develop a clear, distinct, and valued image of your mix in the minds of consumers.
25 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.
26 Don’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.Pharmacy
27 Branding attempts to get consumers to assign meaning to a brand. Brands and BrandingTIPYour personal brandis your name.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.
28 MTMS Brand Recall Brand Awareness Brand Recognition Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing. 57(January 1993) (Adapted)BrandRecallBrandAwarenessBrandRecognitionMTMS
29 Pharmacist Types of Brand Associations Favorability of Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity.” Journal of Marketing. 57(January 1993) (Adapted)Types ofBrand AssociationsFavorability ofBrand AssociationsBrandImageStrength ofBrand AssociationsPharmacistUniqueness ofBrand Associations
30 Customer Experiences with the Marketing Mix PricePromotionPlaceProductCustomer Experiences from OthersWord-of-mouth recommendationsPress and other media coverageBrand AwarenessRecognitionRecallBrand ImageTypes of associationsFavorabilityStrengthUniquenessBrand Equity
31 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.
32 Implementing the Plan Problems in implementation: Insufficient management commitmentLack of staff commitment or expertiseLack of or poor informationStructural contradictionsOverextension
33 Evaluate marketing success and ways to improve. Final Step: ReassessEvaluate marketing success and ways to improve.
34 ConclusionStudents and pharmacists should know how to develop a strategic marketing plan.ClerkshipPracticeCareer planning