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
TIP
All planning and strategies
originate 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 problem
New 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 Plan
Step 4
Reassess
Analyze
Resources
(Strengths,
Weaknesses)
Mission
Statement
Step 1
Formulate
Goal
Strategic Marketing Planning Process
Step 3
Implement
Analyze
Environment
(Opportunities,
Threats)
Step 2
Develop
Strategy
Segment the market
Select a target market
Position your product

9. Strengths, Weaknesses, Opportunities, Threats
SWOT Analyses
Strengths, Weaknesses, Opportunities, Threats

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.

11. Capability assessment
Strengths (S)
Weaknesses (W)

12. Strengths or weaknesses of your organization
People/skills - Availability and training of personnel that give you an advantage
Money - Availability of $ to finance initiatives
Systems - How well designed, organized, and coordinated is your system?
Facilities - Availability and condition
Market 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. Threats
What 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. Threats
How 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?

17. Retail clinics – Threat or opportunity?

18. Medicare Prescription Drug Benefit (Part D): Threat or opportunity?

19. Identifying opportunities and threats in markets (Porter)
Level of rivalry between competitors
Ease with which competitors can enter market
Power 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 Formulation
The plan to achieve marketing goals and objectives

22. Strategic Marketing Planning Process
Step 4
Reassess
Analyze
Resources
(Strengths,
Weaknesses)
Mission
Statement
Step 1
Formulate
Goal
Strategic Marketing Planning Process
Step 3
Implement
Analyze
Environment
(Opportunities,
Threats)

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’s
That 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 Branding
TIP
Your personal brand
is 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)
Brand
Recall
Brand
Awareness
Brand
Recognition
MTMS

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 of
Brand Associations
Favorability of
Brand Associations
Brand
Image
Strength of
Brand Associations
Pharmacist
Uniqueness of
Brand Associations

30. Customer Experiences with the Marketing Mix
Price
Promotion
Place
Product
Customer Experiences from Others
Word-of-mouth recommendations
Press and other media coverage
Brand Awareness
Recognition
Recall
Brand Image
Types of associations
Favorability
Strength
Uniqueness
Brand 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 commitment
Lack of staff commitment or expertise
Lack of or poor information
Structural contradictions
Overextension

33. Evaluate marketing success and ways to improve.
Final Step: Reassess
Evaluate marketing success and ways to improve.

34. Conclusion
Students and pharmacists should know how to develop a strategic marketing plan.
Clerkship
Practice
Career planning

35. Questions?