Marketing

1. Marketing

2. LEARNING OBJECTIVES 1.Define marketing and describe its contributions. 2. Differentiate among the concepts of needs, wants, and demands. 3. Define the concept of exchange and state its importance to marketing. 4. Describe the marketing mix and apply it to the marketing of services.

3. MARKETING: DEFINITIONS • “marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” • four P’s of the marketing mix (i.e., product, price, place (distribution), and promotion) • marketing is about more than selling products.

4. COMPANY ORIENTATIONS TOWARD THE MARKETPLACE • six competing concepts that organizations use as guides in the conduct of marketing activities. • The product concept focuses on making good products, often as defined in the eyes of the producer, and improving them over time. “If you build it, they will come. • The key assumptions about buyers are that they appreciate well-made products and that they can evaluate product quality

5. The selling concept emphasizes actions directed at stimulating consumers’ interest through aggressive sales and promotion efforts • managers guided by the selling concept assume that consumers must be coaxed into buying products (or services) • little concern is given to customers’ needs, wants, and post purchase satisfaction

6. The marketing concept holds that “the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets • A company guided by the marketing concept takes care to select appropriate target markets

7. customer concept suggests that companies direct separate offers, services, and messages to individual customers • Increases in market diversity, changes in technology, and the need for enhanced marketing productivity have led to this • focus on individual customer needs, sometimes leading to customization of the product or other elements of the marketing mix

8. Societal marketing concept, which “holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.” • deterioration of the environment, resource shortages, poverty, and neglected social services called for it

9. NEEDS, WANTS, AND DEMANDS Needs • need is a state of felt deprivation. • Needs are basic human requirements. • People have physical needs (e.g., food, clothing, and shelter), social needs (e.g., the need for affection and the need to belong), and individual needs (e.g., the need for self-expression). • From the health economics literature, need is defined as “the amount of medical care that medical experts believe a person should have to remain or become as healthy as possible, based on current medical knowledge

10. Want • want is a desire for a specific satisfier of a need • needs become wants, and these wants are shaped by culture and individual personality

11. Demand A demand is a want that is backed by an ability to pay. One problem faced by health care providers is that people often do not want their goods or services. This situation is called negative demand and pharmaceutical products often are labeled as negative goods

12. The job of a marketer (and the job of a health care professional as well) is not only to understand and respond to people’s expressed needs but also to help customers learn more about what they need and want.

13. THE CORE CONCEPT OF MARKETING • Exchange is the “core concept of marketing.” • An exchange is a process of obtaining a desired product from someone by offering something in return • It is one of four ways to obtain a product, the others being self-production, coercion (or force), and begging • A transaction is a trade of values between two or more parties

14. Services , ideas, experiences, events, places, material, organizations, effort, and information all can be items of value in a transaction • In a transfer, one party gives an item of value to another party while receiving nothing tangible in return • The giving party often expects something in return, such as gratitude, a change in the recipient, a positive feeling, or even a tax deduction.

15. THE MARKETING MIX • A marketing mix is a set of tools an organization uses to pursue its objectives with respect to its target market. • tools of the marketing mix :product, price, place, and promotion • positioning often is included as a fifth P.

16. Product • Product refers to an organization’s offering • In the delivery of pharmaceutical care, the product most often provided is a service • Marketing myopia is often a result of the application of the product concept as a philosophical guide to marketing activities. • Another problem related to marketing myopia occurs when a single product becomes an organization’s reason for being.

17. Price • A producer should set a price after considering several variables, including the cost function (i.e., the cost of producing, distributing, and selling the product, including a reasonable return for effort and risk), competitors’ prices, and the demand for the product (including the target market’s perception of the benefits) • To a consumer, price is what is given up or sacrificed to obtain a product

18. Place • Place, or distribution, refers to any activity designed to create utility by having the product available when and where targeted customers want to buy it. • overnight delivery, telecommunications, and the Internet, speed and convenience are important elements in determining the distribution strategies of many firms • For a pharmacy, place may refer to providing a private area for counseling and providing other professional services .

19. Promotion Promotion activities seek to inform, remind, and persuade the target market about an organization and its offerings While advertising may be an important promotional tool, other tools in the promotion mix include sales promotion, public relations (including publicity), direct marketing, and personal selling. MTM services, promotion plays an essential role in the translation of needs into wants and demands.

20. Positioning • Positioning is “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market” • Positioning is about what a marketer can do to the mind of the target consumer

21. marketing management process should be a basic component of any pharmacy practice. • A marketing management process has three essential steps: (1) evaluating a market for opportunities, (2) planning and developing marketing strategies and tactics (3) implementing and controlling the marketing effort

22. EVALUATING MARKET OPPORTUNITIES • Evaluating a market involves consideration of both a macro environment and a microenvironment • A macro environment refers to forces that affect the parties in a market and encompasses five sectors: competitive, economic, technological, social, and regulatory

23. SWOT Analysis • A stakeholder is anyone who can affect the success of the practice • A SWOT analysis assesses the internal strengths and weaknesses of the pharmacy in context with the opportunities and threats that may exist in its external environment • A SWOT analysis can help to identify likely opportunities, assist in eliminating poor opportunities, guide choices of marketing targets, and help in allocating scarce resources to marketing efforts.

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