Drug Marketing & Pharmaceconomics (NP-513) Level 5 PDF

Drug Marketing & Pharmaceconomics (NP- 513) Level – 5 Chapter 1: Marketing Planning Mona M. Eltamalawy, PhD.  Inented learning outcomes 01 02 Marketing managment Marketing planning Definition , and focus on planning Planni...

Drug Marketing & Pharmaceconomics (NP- 513) Level – 5 Chapter 1: Marketing Planning Mona M. Eltamalawy, PhD.  Inented learning outcomes 01 02 Marketing managment Marketing planning Definition , and focus on planning Planning sequence, and focus as a part of marketing on strategic marketing management. planning 03 04 Planning key concepts Design a marketing strategy Mission, strategy, tactics. Designing a customer value-driven marketing strategy and plan Marketing Management Definition of marketing management: It is the process of planning, implementing, and evaluating the efforts of a group of people working forward a common goal. OR is the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchange with target groups that satisfy customer and organizational objectives. Market: consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. Marketing Management Planning as a part of marketing management Planning stages: 1- Analyze the situation. 2- Setting the goals. 2-Designing strategies and tactics to reach goals. Planning is deciding now what you are going to do later, including how and when? Planning sequence: 1- Strategic company planning. 2- Strategic marketing planning. 3- Prepare annual marketing planning. Strategic planning Definition: It is the planning where managers match an organizations resources Organization’s Market with market opportunities. resources opportunities Managers Planning key concepts: 1. Mission: Statement that indicates what customers the organization serves, what needs it satisfies, and what type of products it offers. It should not be to broad and vague nor too narrow and specific. “To benefit Egyptian customers” >>>> too broad “To make tennis ball “ >>>> too narrow “ We make furnaces” >>>traditionally used ( production oriented) “ We provide home climate control ” >>> today firms express their mission in customer-oriented terms.  Examples McDonald's Our mission is to make delicious feel-good moments easy for everyone. This is how we uniquely feed and foster communities. Nike To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete. At KFC, we have a passion for food, and serve it with pride. We KFC believe that you should come to work as the best version of yourself and treat every guest like a friend. And it's our job to ensure that every guest leaves happy. Planning key concepts: 2- Objectives and Goals: Simply a desired outcome. Effective planning have set of objectives that are to be achieved by carrying out plans. Objectives should be: Clear and specific. Ambitious but realistic. Consistent with one another. Quantitively measurable were possible. Tied to a particular time period. Planning key concepts: Planning key concepts: Designing a customer value-driven marketing strategy and plan ✓ The strategic plan defines the company’s overall mission and objectives. ✓ Marketing’s role is shown in the following figure, which summarizes the major activities involved in managing a customer-driven marketing strategy and the marketing mix. Consumers are in the center. The goal is to create value for customers and build profitable customer relationships. Designing a customer value-driven marketing strategy and plan To design a winning marketing strategy, the marketing manager must answer two important questions: 1. What customers will we serve (what’s our target market)? 2. And how can we serve these customers best (what’s our value proposition)? Market strategy Market Segmentation ❑ The market consists of many types of consumers, products, and needs. The marketer must determine which segments offer the best opportunities. Consumers can be grouped and served in various ways based on geographic, demographic, and behavioral factors. ❑ The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes is called market segmentation. Every market has segments, but not all ways of segmenting a market are equally useful. Market Segmentation ❑ For example, Tylenol would gain little by distinguishing between low-income and high-income pain-relief users if both respond the same way to marketing efforts. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. ❑ In the car market, for example, consumers who want the biggest, most comfortable car regardless of price make up one market segment. Consumers who care mainly about price and operating economy make up another segment. It would be difficult to make one car model that was the first choice of consumers in both segments. Companies are wise to focus their efforts on meeting the distinct needs of individual market segments. Market Targeting ❑ After a company has defined its market segments, it can enter one or many of these segments. Market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. ❑ A company with limited resources might decide to serve only one or a few special segments or market niches. Such niches specialize in serving customer segments that major competitors overlook or ignore. Market Targeting ❑ The L’Oréal group serves major segments of the beauty market, and within each segment it caters to many sub segments. L’Oréal targets the larger segments through its major divisions: L’Oreal Luxe, Consumer Products, Professional Products, Active Cosmetics, and the Body Shop. Further within these major divisions, L’Oréal markets various brands that cater to customers of different ages, incomes, and lifestyles. Market Targeting ❑ Most companies enter a new market by serving a single segment; if this proves successful, they add more segments. For example, Nike started with innovative running shoes for serious runners. Large companies eventually seek full market coverage. Nike now makes and sells a broad range of sports apparel and equipment for just about anyone and everyone in about every sport. It designs different products to meet the special needs of each segment it serves. Choosing a Value Proposition 1- The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. 2- Ex.: Homewood Suites by Hilton wants you to “Make yourself at home.” Meanwhile, the Hyatt Regency brand declares that sometimes “It’s good not to be home.” Its advertisements highlight the joys of traveling and the fun things that people do when they are traveling on business. Choosing a Value Proposition 3- Such value propositions differentiate one brand from another. They answer the customer’s question: “Why should I buy your brand rather than a competitor’s?” Companies must design strong value propositions that give them the greatest advantage in their target markets. How to Write a Value Proposition 1.Identify your customer's main problem. 2.Identify all the benefits your product offers. 3.Describe what makes these benefits valuable. 4.Connect this value to your buyer's problem. 5.Differentiate yourself as the preferred provider of this value. 6.Use a template to help you brainstorm. Value Proposition Templates Use these templates to help craft a unique value proposition for your business. Value Proposition Template #1 Headline: The best way for (ideal customer) to (task you make easier). Subheadline: (Your company) makes (task) simple and effective with (competitive advantage #1), (competitive advantage #2), and (competitive advantage #3). See it in Action: The best way for baristas to create latte art. FrotherMax makes creating beautiful latte art simple and effective with easy-to-use frothers, signature latte art technology, and – of course – an unbeatable price. Value Proposition Template #2 Headline: Changing the way (target market) does (task). Subheadline: By offering (competitive advantage) that no one else can, (your company) makes it possible to (task) so that (benefit attained). See it in Action: Changing the way surfers stay safe. By offering a waterproof sonar signal that no one else can, SafelySurf makes it possible to alert friends and family to your whereabouts so that they can sleep soundly – and you can surf more safely. Market differentiation and Positioning ❑ After a company has decided which market segments to enter, it must determine how to differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments. ❑ A product’s position is the place it occupies relative to competitors’ products in consumers’ minds. Marketers want to develop unique market positions for their products. If a product is perceived to be exactly like others on the market, consumers would have no reason to buy it. Market differentiation and Positioning ❑ Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets.  Preparing an integrated market plan and program To deliver on its value proposition, the firm must first create a need-satisfying market offering (product). It must then decide how much it will charge for the offering (price) and how it will make the offering available to target consumers (place). Finally, it must engage target consumers, communicate about the offering, and persuade consumers of the offer’s merits (promotion). The firm must blend each marketing mix tool into a comprehensive integrated marketing program that communicates and delivers the intended value to chosen customers. Concepts of marketing strategies Marketing management wants to design strategies that will engage target customers and build profitable relationships with them. But what philosophy should guide these marketing strategies? What weight should be given to the interests of customers, the organization, and society? Very often, these interests conflict. There are five alternative concepts under which organizations design and carry out their marketing strategies: the production, product, selling, marketing, and societal marketing concepts.  Concepts for marketing strategies Organizations use the one of following concepts to design marketing strategy Production Product societal Selling Marketing The Production Concept ❖ The production concept holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest orientations that guides sellers. ❖ The production concept is still a useful philosophy in some situations. However, although useful in some situations, the production concept can lead to marketing myopia. Companies adopting this orientation run a major risk of focusing too narrowly on their own operations and losing sight of the real objective (satisfying customer needs and building customer relationships). Definition of Marketing Myopia The concept identifies companies that only focus on short- term goals and strategies, neglecting to address their customers' needs and desires. Marketing myopic businesses obsess with selling the products or services they already have, as opposed to investing in improving them to better serve their customers. Examples: More focus on selling rather than building relationships with the customers. The Product Concept ❖ The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements. ❖ Product quality and improvement are important parts of most marketing strategies. However, focusing only on the company’s products can also lead to marketing myopia.  The Product Concept ❖ For example, some manufacturers believe that if they can “build a better mousetrap, the world will beat a path to their doors.” But they are often rudely shocked. Buyers may be looking for a better solution to a mouse problem but not necessarily for a better mousetrap. The better solution might be a chemical spray, an exterminating service, a house cat, or something else that suits their needs even better than a mousetrap. ❖ Furthermore, a better mousetrap will not sell unless the manufacturer designs, packages, and prices it attractively; places it in convenient distribution channels; brings it to the attention of people who need it; and convinces buyers that it is a better product. The Selling Concept ❖ Many companies follow the selling concept, which means that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort. ❖ The selling concept is typically practiced with unsought goods—those that buyers do not normally think of buying, such as life insurance or blood donations. ❖ Such aggressive selling, however, carries high risks. It focuses on creating sales transactions rather than on building long-term, profitable customer relationships.  The Selling Concept ❖ The aim often is to sell what the company makes rather than to make what the market wants. It assumes that customers who are coaxed into buying the product will like it. Or, if they don’t like it, they will possibly forget their disappointment and buy it again later. These are usually poor assumptions. The Marketing Concept ❖ The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. ❖ Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make-and sell philosophy, the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers. Difference between selling concept and the marketing concept ❖ The selling concept takes an inside-out perspective. It starts with the factory, focuses on the company’s existing products, and calls for heavy selling and promotion to obtain profitable sales. It focuses primarily on customer invasion getting short-term sales with little concern about who buys or why. ❖ In contrast, the marketing concept takes an outside-in perspective. As Herb Kelleher, the founder of Southwest Airlines, once put it, “We don’t have a marketing department; we have a customer department.”  Difference between selling concept and the marketing concept ❖ Such customer-driven marketing usually works well when a clear need exists and when customers know what they want. In many cases, however, customers don’t know what they want or even what is possible. ❖ As Henry Ford once remarked, “If I’d asked people what they wanted, they would have said faster horses.” For example, even 20 years ago, how many consumers would have thought to ask for now-commonplace products such as tablet computers, smartphones, digital cameras, and GPS systems in their cars and phones? Such situations call for customer-driving marketing— understanding customer needs even better than customers themselves do and creating products and services that meet both existing and latent needs, now and in the future. You are applying for a marketer job in a pharmaceutical company for skin and hair products, how does the marketing philosophy of the company will affect your response in the interview???? The Societal Marketing Concept ❖ The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run benefit. Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best for its consumers in the long run? ❖ The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being. ❖ It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. Case study Door to Door Organics delivers fresh, high-quality, organic, natural, and local meat, dairy, produce, and groceries directly to homes, offices, and schools in 16 states across the USA. Customers order online and receive weekly deliveries to their doorsteps year-round. But Door to Door Organics does much more than just sell groceries online for profit. It also dedicates itself to a deeply felt mission “to bring more Good Food—food that positively impacts health, communities, and the environment—to more people in a sustainable way.” Case study It wants to “make a positive impact on our food system, make people healthier, connect communities, grow local economies, and inspire people to eat Good Food.” To meet its ambitious Good Food mission, Door to Door sources most of what it sells from local family farms and businesses who are “dedicated stewards of the land and use USDA-certified organic practices that are healthier for both animals and people, better for the soil, and reduce carbon emissions.” Case study: Door to Door delivers to specified areas on specific days of the week, maintaining a tight delivery radius that reduces both costs and carbon emissions. And through careful food management, the company puts 44 percent less wasted food in landfills than the average grocery store. Door to Door Organics also treats customers responsibly. All deliveries carry a #Joy Delivered guarantee—if a customer isn’t “absolutely delighted,” the company will make it right. Thanks to its societal mission, Door to Door Organics is thriving, suggesting that doing good can benefit both the planet and the company. Three Considerations Underlying the Societal Marketing Concept  Who are the targeted customers??? What is the value proposition?? Thank you