Pharmaceutical Marketing Overview Ibrahim Alabbadi MBA, PhD Amman- July-2015 1
Pharmacists job opportunities Hospital Community Pharmaceutical industry Marketing Others Academia Insurance Social security Nuclear pharmacy 2
Marketing Marketing manager Sales manager (Local) Tenders/ Hospital reps Export Promotion manager Product manager Marketing services Supervisors Registration officers Med reps Information centre Sales reps Market Access Manager Business Development Manager 3
Marketing Marketing Management Orientations: philosophy that guide marketing strategy (marketing activity concepts) [Evolution of marketing concept] The competing concepts under which organizations can choose to conduct their marketing activities 4
Principles of marketing Marketing activities concepts: I. The production concept II. The product concept III. The selling concept IV. The marketing concept V. The societal marketing concepts VI.????? 5
Differences between marketing and selling Emphasis Company Management Time/profit Means Ends Marketing Customer satisfaction Determine needs then produce Profit oriented Long run/term Integrated Marketing activities Established customer satisfaction & product demand selling Product Produce then try to sell Sales oriented Short run/ term Sales promotions & solicitation Increased sales volume 6
Societal marketing concept Humanistic / Ecological marketing Why? Environmental deterioration Resource shortages Explosive population growth World hunger and poverty Neglected social services Marketing is the key to achieve organizational goals more effective than competitors by determining and satisfying the needs of target markets through integrating marketing activities in a way that preserves or enhances the consumer s and the society s well-being 7
Societal marketing concept - Build social and ethical concepts into marketing practices - Company profits + customer satisfaction and public interest Society (Human welfare) Societal marketing concept Consumers Company (Want satisfaction) (Profits) 8
Societal marketing concept DIET: Low fat meals CHD patients Sugar free products diabetics Non-deceiving advertising credible Consumer protection movement: Minimum wages (highest < 5-7 times lowest), Anti price increase Green marketing: ecological / environmental friendly Waste materials damage (chemicals) Natural products safe Recycling, CFC free products (inhalers), Non-tested on animals 9
Holistic marketing concept 2006 Synergy integrated + relationship + societal + internal marketing Holistic approach = comprehensive and all to be looked at; at the same time 10
Expanded model of marketing process Create value for customers and build customer relationships Capture value from customers in return Understand the marketplace and customer needs and wants Design a customer driven marketing strategy Construct a marketing program that delivers superior value Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity Research consumers and the marketplace Manage marketing information and customers data Select customers to serve: market segmentation and targeting Decide on a value: differentiation and positioning Product and service design: build strong brands Pricing: create real value Distribution: manage demand and supply chains Promotion: communicate the value proposition Customer relationship management: build strong relationships with chosen customers Partner relationship management: build strong relationships with marketing partners Create satisfied loyal customers Capture customer lifetime value Increase share of market and share of customer Harness marketing technology Manage global markets Ensure ethical and social responsibility
Marketing strategy: Marketing opportunity analysis Internal & external (SWOT) - Understand company strengths and analyze weaknesses - Analyze markets and marketing environment to find attractive opportunities and avoid environmental threats Marketing strategy STEPS 1- Market segmentation 2- Target marketing 3- Market positioning 4- Developing a marketing mix 12
Product Growth-share matrix: Market Share Star? Cash cow Dog Market Growth Rate 14
Developing a marketing mix: Marketing mix is the set of controllable tactical marketing tools- product, price, place and promotion- that the firm blends to produce the response it wants in the target market knows as the 4P s: 4C s Product: Customer solution Place: Convenience Promotion: Communication Price: Customer cost 15
Marketing environment Micro variables: internal environment Closely related to the company; affect its ability to earn profits. Customers, intermediaries, suppliers, distributors, employees, creditors and shareholders Macro variables: external environment Demographics, social and cultural values, economical conditions, natural, technological, political and legal aspects Any change in any one of these factors may cause changes in one or more of the other factors, because they are interrelated 16
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COMMUNICATION PROCESS Sender (Source) Feedback Receiver Response (action and/ or Attitude change) Intended message Encoding Noise Perceived message Decoding Sent Message Medium (Channel) Received message Encoding: Putting thought into symbolic form Decoding: assigning meaning to the symbols 19
Pharmaceutical marketing Marketing for drug product (physical) Doctor (decision maker) & Patient (ultimate consumer) Pharmacist Doctor Patient Pharmacist Med rep 20
Detailing story: The art of convincing a doctor to do what you want, BUT by sticking to the truth Keep It Short & Simple (KISS) 21
selling Pharmacist Med rep Doctor Place Presentation (product) Active presence 22
SELLING THE ART OF CONVINCING SOMEONE ELSE TO DO WHAT YOU WANT 100 Kg 23
WHAT DO PEOPLE BUY? BENEFITS NOT FEATURES TRANSLATE PRODUCT FEATURES INTO BENEFITS TO WIN CUSTOMER ACCEPTANCE SALES Feature is telling Benefit is selling 24
Golden rules for selling Slow Vit E Is an antioxidant Advantage Quenching of free radicals Benefit aging process Feature 25
STEPS OF SALES CALL I. PROSPECTING II. PRE APPROACH III. APPROACH IV. PRESENTATION V. CLOSE VI. FOLLOW UP 26
Buyer seller Exchange of Benefits 27
Do Personal appearance. Get the physician name right. Cross the barrier in the first minute challenge. Ask positive question, to get a YES answer. Make your presentation brief. Smile. Hold your visual aids at the eye level. Use a pen to point to your visual material. 28
Don't Start with apology. Be overly casual. Get too close to the Doctor. Sprawl in your chair. Talk about your troubles and problems. Repeat gossips or scandals. Bring bad news. 29
SALES CALL WIN WIN KISS Keep It Short & Simple Life is: DEMAND and SUPPLY Selling needs: ENTHUSIASM and KNOWLEDGE 30
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The Window
A young couple moves into a new neighborhood. The next morning, while they are eating breakfast, the young woman sees her neighbor hang the wash outside.
That laundry is not very clean, she said, she doesn t know how to wash correctly. Perhaps she needs better laundry soap. Her husband looked on, but remained silent..
Every time her neighbor would hang her wash to dry, the young woman would make the same comments.
About one month later, the woman was surprised to see a nice clean wash on the line and said to her husband: Look! She has learned how to wash correctly. I wonder who taught her this.
The husband said: I got up early this morning and cleaned our windows!
And so it is with life: What we see when watching others, depends on the purity of the window through which we look. Before we give any criticism, it might be a good idea to check our state of mind and ask ourselves if we are ready to see the good rather than to be looking for something in the person we are about to judge...
Wishing you a nice day