Marketing Principles and Application Flashcards
Define marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and
exchanging offerings that have value for customers, clients, partners, and society at large
What are the marketing concepts?
- Negative Demand
- Expectations
- Satisfaction
- Quality
- Value
- Loyalty
Negative Demand
Not wanting the goods or services but realizing that you have to have it
Negative Demand goals
- To focus marketing on why these negative demand services or products are being bought….what is the result? (focusing on your outcomes)
- Identify needs and influence wants and demands (focus on the outcomes of those around you)
Expectations
- Internal standards of customers when evaluating products or services
- Finding the balance between
• Desired service (what they hope to receive)
• Adequate service (the minimum they are willing to accept
• Zone of tolerance (difference between desired and adequate, willingness to accept variation)
• Predicted service (level of service customers think they will get)
Satisfaction
A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance
Types of Satisfaction
- Confirmation: performance matches expectations
- Disconfirmation: doesn’t match; positive - better than what you expected; negative - worse than expected
Quality
Superiority or excellence
What are the types of quality?
- Service quality
- Technical quality
- Functional quality
Service quality
more global, long-term evaluation of service
Technical quality
specific, was outcome successful
Functional quality
how service was performed
Value
- What did customers get vs. what they gave up
- Perceived benefit vs. perceived costs
Loyalty
The consumable product must be subject to adoration
What are the 4 P’s of marketing
- Product
- Price
- Place
- Promotion
- People
4 P’s of marketing: Product
- Good and/or service
- Any OTC front-end product
- Any clinical service
- Any ‘special event’ (health fairs)
- Any medication
- Take into consideration the packaging of the product
What are the major characteristics of service marketing decisions?
- Intangibility
- Inseparability
- Variability
- Perishability
Characteristics of service marketing decisions: Intangibility
- Services cannot be seen, tasted, felt
- Add something tangible to the service
- Want to make the experience memorable; take into consideration: interaction, location of service
Characteristics of service marketing decisions: Inseparability
- Services produced/consumed at once
- Provider/patient relationship
- Keep an ‘agenda’
Characteristics of service marketing decisions: Variability
- Services are impacted by people delivering the service
- Hire the ‘right’ people
- Train for consistency
Characteristics of service marketing decisions: Perishability
- Services cannot be ‘stored’
- Meeting supply and demand can be challenging
- Create appointment based services
4 P’s of marketing: Price
Cost of good or service
What should you take into consideration with pricing?
cost of developing service, demand for service, competitors, objective vs. perceived price, willingness to pay for expertise
What are strategies of pricing?
- Cost-plus
- Value-based
- Competitive
- Closeout
- Discount
- Membership
- Loss-leader
- Psychological
- Bundle and quantity discounts
Pricing Strategy: Cost-Plus
Adding a percentage of profit over and above the cost of the product or service to the pharmacy
Pricing Strategy: Value-Based
- Using the patient’s perception of the value.
- If high value perceived or prestige associated with product / service, patients will be willing to pay a higher price for it.
Pricing Strategy: Competitive
Mirroring or ‘beating out’ competitor’s pricing
Pricing Strategy: Closeout
Offering steep discounts on excess inventory items to avoid having to discard it
Pricing Strategy: Discount
Uses tools like coupons to reduce the cost
Pricing Strategy: Membership
Used to offer cost reductions through loyalty programs
Pricing Strategy: Loss-Leader
Reducing the price of one product to attract customers and making up for this lost revenue by encouraging purchases of other items
Pricing Strategy: Psychological
Strives to make a price more attractive.
Pricing Strategy: Bundling
Offering a discount to individuals or organizations that buy more than one
4 P’s of marketing: Place
Physical ‘characteristics’ and distribution, product or service availability, shelf placing, having the product available when customers want to buy it
4 P’s of marketing: Promotion
Activities that seek to inform, remind, and persuade the target market about the availability of goods / services
What are the different approaches you can take in promotion?
- Advertising: mass media, 3rd party
- Sales promotion: short term incentives
- Publicity: ‘external’ advertising
- Personal selling: interpersonal communication
What are the marketing philosophies?
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Customer concept
- Societal marketing concept
- Holistic marketing concept
Marketing Philosophies: Production Concept
- Efficiency in the production and distribution of goods and services
- Belief: Consumers interested in product availability and low prices
Marketing Philosophies: Product Concept
- Making good products and improving them over time
- Belief: Consumers appreciate well-made products
Marketing Philosophies: Selling Concept
- Actions directed at stimulating consumers’ interest through aggressive sales and promotion efforts
- Belief: Consumers can be coaxed into
buying products; little concern to consumers’ needs, wants and postpurchase satisfaction (ex. commission salesman)
Marketing Philosophies: Marketing Concept
- Focused towards needs of consumer and target market
- Belief: Consumers dictate the market
Marketing Philosophies: Customer Concept
- Companies direct separate offers, services and messages to individual customers
- Belief: Customization towards the consumer and building customer loyalty
Marketing Philosophies: Societal Marketing Concept
- Organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively than competitors in a way that preserves or enhances the consumer’s and the society’s well-being
- Belief: Promote customers’ wants and needs as well as public interest
Marketing Philosophies: Holistic Marketing Concept
- Combines features of the marketing concept, customer concept, and the societal marketing concept
What are the types of advertising strategies?
- Relationship
- Cause
- Branding
- Brand-lover
- Niche / Scarcity
- Seasonal
- Guerilla
- Digital
- Word-of-Mouth
Relationship Marketing - People
- Activities aimed at developing long-term, cost-effective links between an organization and its customers for the mutual benefit of both parties
- Involves the entire company, partners and customers
Advertising Strategy: Cause Marketing
Play to the perception/values of community
Advertising Strategy: Branding
- Recognizable characteristics
- Your overall ‘image’ to the customer
- Important in building loyalty
- Key Concept – all components tie together
Advertising Strategy: Brand Lover / Ambassador
Gives customers a feeling of “belonging”
Advertising Strategy: Niche / Scarcity Marketing
- Target market – Groups to which an organization directs its mktg program
- Market segment – Subgroup of individuals or organizations that have one or more similar characteristics or similar needs or interests
- Market niche – Narrower segment of a population that needs or desires specialized goods or services
Key concepts in Niche Marketing
- Be sufficient in size
- Have growth potential
- Not be well served by other organizations
- Have adequate purchasing potential
- Demonstrate a need and interest for special treatment or distinction
Advertising Strategy: Seasonal
Focused marketing during seasons
Advertising Strategy: Guerilla
Use unconventional and inexpensive techniques with imagination, big crowds, and surprise elements
Advertising Strategy: Digital
Uses all aspects of social media
Advertising Strategy: Word-of-Mouth
Use social network of people
Advertising Strategy: Print
Any print source – flyers, ads, newspapers, magazines
What are the phases in the product life cycle?
- Introduction
- Growth
- Maturity
- Decline
