9 Marketing Concepts Flashcards
Why is marketing important for pharmacists?
Bc they need to demonstrate what exactly it is they do in order to thrive in the future (they don’t just count pills)
What exactly is marketing?
When you discover what the public wants/needs, and provide products/svcs in response to those wants/needs
Define “market”
Potential consumers who demand products that you’re offering (could be a svc or good)
Goal of marketing?
Consumer satisfaction
If a market is not pleased with your product, what should you do?
Change the products (bc changing the market - that is, the minds of the consumers - is far more difficult to do)
Who should marketing be focused on?
The target market > the actual ppl who would buy and use your product (svc or good)
What kind of benefit:sacrifice ratio would increase consumer value of a particular product?
A high benefit:sacrifice ratio
Two types of marketing exchanges:
- transactional (exchanges viewed as isolated and unrelated events)
- relationship marketing (exchanges viewed as a series of transactions over time)
What does the 80/20 rule say about consumers?
80% of my consumer activity is from 20% of my consumers
Why is it that we should keep our consumers happy?
So that they come back (remember the 80/20 rule)
What does marketing myopia refer to?
Providers focusing on products rather than whether their market(s) need those products
E.g. They market asthma meds to a market that has negligible rates of asthma.
Expectation vs performance: Which should be higher for consumers to be happy?
Performance should be higher
4 P’s of the marketing mix:
Product
Price
Place
Promotion
What’s the purpose of market research?
To make informed decisions regarding your target market (what do they want? how much will i make from them? etc.)
T or F: A survey is a type of questionnaire.
F
A questionnaire is a type of survey
What’s the benefit of dividing a market into segments? (“Market Segmentation”)
To facilitate targeted marketing whereby an org can reach a specific set gp of ppl with particular needs or wants
Define “product”
Good, service, or experience that’ll satisfy a consumer’s need (s.th he’s deprived of) or demand (want + buying power)
Describe innovators (a type of consumer)
Those who are the first to try new products > risk-takers and venturesome
Why would it be a good idea to start marketing new products to innovators and early-adopters?
They tend to try out products first > the product can become established in them first, then the org can work on making it more accessible by less receptive gps
What’s a trademark?
Legal protection for a name and/or image
Product life cycle:
Introduction
Growth
Maturity
Decline
Explain how heterogeneity relates to a service (type of product) provided by a pharmacist
A service is something intangible that is provided by the pharmacist. Due to differences among pharmacists, each of them will provide that service slightly differently each time, both between pharmacists and even with the same pharmacist.
Explain how inseparability relates to a service (type of product) provided by a pharmacist
The service cannot be provided if the pharmacist isn’t there (e.g. counselling)
What does it mean when we say that a service (such as pharmacy services, education, complex surgery, etc.) is high in credence attributes?
It means that, even after you’re provided with the service, you still cannot truly evaluate it fully (i.e. can’t tell whether it was the best svc provided or not)
What does it mean when we say that a good/svc is high in experience attributes?
We can only evaluate the good/svc AFTER experiencing it
What does it mean when we say that a good is high in search attributes?
We can evaluate the good before consuming it
In addition to pricing competitions, what else can be done to encourage consumer patronage?
- improve service
- add service (e.g. home delivery)
- add education (e.g. blood glucose meter)
- establish a relationship w/ pts (e.g. pt callbacks)
3 types of market coverage:
- intensive > product is placed at as many locations as possible
- selective > a select gp of distributors are used
- exclusive > use of only one outlet in a geographical area
While promoting, we also want to retain loyal customers. Why?
Because it’s easier than attracting new ones. Plus, the 80/20 rules tells us that the customers you already have is responsible for most of your sales.
Diff b/w the push and pull strats of promotion?
Push: manufacturers target wholesalers and retailers > they push the product through the channel of distribution to the consumer
Pull: manufacturers target consumers > have consumer demand (“pull”) the product through the channel of dist
What would be the most effective way of advertising nowadays? Why is TV advertising losing its edge?
Social media, or the internet in general would be the best avenue of advertising nowadays.
TV advertising isn’t as effective nowadays because more and more ppl are “cutting the cord”
Advantages and disadvantages of publicity for an organization
(Publicity: any information about the organization or its products distributed by the media that is not paid for; must be interesting or newsworthy)
Advantages:
- FREE
- more believable
- reaches ppl who may not see commercials
Disadvantages:
- may not be published by the media
- may be altered
- may be negative
Best form of advertising? Why?
Word-of-mouth
- Cheapest
- Most believable
- Most effective
Which is easier:
a. Understanding a market and creating their desired product
OR
b. Creating a product and stimulating interest in a market
a. FO SHO
