Marketing & Retail Management PDF

Marketing & Retail Management Management and Leadership in Pharmacy- PHAR4008 Dr Zahraa Abbas Faculty of Health Sciences- Curtin Medical School  Contents: Define marketing terminology Marketing mix Market analysi...

Marketing & Retail Management Management and Leadership in Pharmacy- PHAR4008 Dr Zahraa Abbas Faculty of Health Sciences- Curtin Medical School  Contents: Define marketing terminology Marketing mix Market analysis Competition Pharmacy ownership Retail management Store layout and merchandising Faculty of Health Sciences- Curtin Medical School  Terminology Market Prospective consumers of a product or service Marketing A fundamental component of effective business management Involves research and planning to turn prospective consumers into loyal and satisfied customers by creating, communicating and offering products or services for exchange (between buyer and seller) Mutually Benefits for consumers: awareness, education, improved health and beneficial wellbeing Benefits for business: build trust, loyalty and brand reputation, customer retention, increase sales and business size. Faculty of Health Sciences- Curtin Medical School  Terminology Customers vs. Consumers daughter is the consumer shes consuming the product. Mum is the customer as shes PAYING. Faculty of Health Sciences- Curtin Medical School  Terminology Customer The person who purchases the product or service Faculty of Health Sciences- Curtin Medical School  Terminology Consumer The person who consumes the product or uses the service Faculty of Health Sciences- Curtin Medical School  Marketing mix A framework that incorporates four concepts (four P’s of marketing): Product will help build trust and loyalty Price Place Promotion Faculty of Health Sciences- Curtin Medical School  Marketing mix - The first P Product May be physical, digital, service or experience Qualities and characteristics offer a competitive edge Consider target customer in product/service design Faculty of Health Sciences- Curtin Medical School  Marketing mix - The second P Price Profitability vs competition Price to convey quality and value Psychological factor: $4.99 vs. $5.00 Must consider the target customer Faculty of Health Sciences- Curtin Medical School  Marketing mix - The third P Place Physical brick-and-mortar business Online business Mobile and pop-up business pharmacists will go out an administer vaccines at a nursing home Using multiple outlets can maximise customer reach and optimise sales Influences how the business is managed and the price of products and services Faculty of Health Sciences- Curtin Medical School  Marketing mix - The fourth P Promotion get the word out Strategy to promote and advertise your product or service Laws govern certain aspects of promotions in pharmacy pp3 May be done on various platforms tv, in store, newspaper, pamplet The cost of promotion is accounted for in the second P- the price! Faculty of Health Sciences- Curtin Medical School  Market analysis (SWOT analysis) A tool for developing a marketing plan Identifies strategic competencies and opportunities for a business Internal analysis: Factors within your business Identify business Strengths and Weaknesses resources, profitabiltity, sales, capability of staff, quality of product/service, cost. External analysis: Environment that can influence your business competitors, unmet customer needs, market trends Identify business Opportunities and Threats Faculty of Health Sciences- Curtin Medical School  Market analysis (SWOT analysis): Weight loss program in the pharmacy STRENGTHS WEAKNESSES INTERNAL Very enthusiastic employees There is no existing customer base Available floor space in the pharmacy Limited finances OPPORTUNITIES THREATS EXTERNAL A large proportion of overweight patients Competition from another pharmacy (potential customer base) Supplier incentives and discounts Faculty of Health Sciences- Curtin Medical School  Competition in business Who is your competitor? Anyone who can pull a current or potential customer away from your business: competitive market Goal: to increase customer base, revenue, sales and profit. Requires a sound understanding of the four P’s of marketing: Product, Price, Place, Promotion Faculty of Health Sciences- Curtin Medical School  Types of competition Pure competition Numerous competitors offering undifferentiated products same product or service, same quality Monopolistic competition Numerous competitors offering similar products laptops: apple, toshiba, asus Oligopoly Small number of competitors offer similar products air travel: virgin, qantas Monopoly Only one supplier of a product synergy australia Monopsony Market situation where there is only one buyer australian govt buying submarines Faculty of Health Sciences- Curtin Medical School  Levels of competition Total budget competition Consumers have limited financial resources and must decide which products to consume and which to forgo Generic competition Consumers have alternative ways to meet their product needs with different products; substitutability Product competition Broadly similar products, that have distinguishable features, benefits, prices from the competing products multivitamin liquid, tablets and capsules Brand competition Very similar products offering the same benefits, features and price to the same target market. Faculty of Health Sciences- Curtin Medical School Pharmacy Ownership  Pharmacy Ownership Pharmacy ownership is governed by specific regulations and guidelines that ensure quality healthcare services and accessibility to medications Various ownership structures exist, each with its own advantages and disadvantages Faculty of Health Sciences- Curtin Medical School  Ownership structures Sole proprietorship Autonomy, no shareholders debt, financial burden Low bargaining power with suppliers, high costs in advertising Partnership Shared responsibilities, reduced financial burden Potential for conflict, low buying power low buying power is shared between the partners Faculty of Health Sciences- Curtin Medical School  Ownership structures Company ownership Somewhat shields personal assets from legal liability Based on structure within the company, may be similar to sole proprietor or partnership Franchising Brand recognition, support, increased buying power from suppliers Ongoing fees, restrictions on autonomy of business operation Faculty of Health Sciences- Curtin Medical School  Pharmacy location Location of the pharmacy has major impact on customer visits and provided services Obtain location demographics (population, income and age) Aim to be near your target market Benefit from local traffic and other landmarks Considerations: Customers walking or driving past the location Availability of public transport Access and availability of adequate parking facility Faculty of Health Sciences- Curtin Medical School  Retail management Retailing encompasses all activities involved in selling goods and services to customers as the last stage in the distribution processes. Customer orientation putting the customer's needs first Coordinated effort to meet customer needs Value driven Pharmacy goal orientation Faculty of Health Sciences- Curtin Medical School  Retail management Relationships are vital in successful retail management In forming and maintaining long-term bonds, consider: Pharmacy customer base (healthcare profession) Customer service Expected customer Augmented customer service go above and beyond where appropriate Customer satisfaction Loyalty programs Faculty of Health Sciences- Curtin Medical School  Choosing a store layout Store layout affects consumer behaviour and store image Influence instore traffic flow, shopping atmosphere, shopping behaviour, and operational efficiency Strategies for store layout: Narrow aisles that encourage customers to slow down Direct customer traffic to see as much of the store as possible Product placement is critical; eye-level or slightly below have the most selling success Faculty of Health Sciences- Curtin Medical School  Choosing a store layout different display types. create open sight line. works good for stores with a small shop with a shop feeling KMART inventory Faculty of Health Sciences- Curtin Medical School  Choosing a store layout IKEA, warehouses good for a large inventory Faculty of Health Sciences- Curtin Medical School  Choosing a store layout product discovery is not the best. Faculty of Health Sciences- Curtin Medical School  Choosing a store layout more browsing smaller no of product. limited display space Faculty of Health Sciences- Curtin Medical School  Choosing a store layout compact version of the grid layout Faculty of Health Sciences- Curtin Medical School  Merchandise Management Merchandising employs marketing techniques to promote sales Devising a Merchandising Plan: Target market research Select sources, negotiating the purchase and evaluate merchandise, conclude purchase Receive and stock product, reorder Re-evaluate on a regular basis Faculty of Health Sciences- Curtin Medical School  Further reading Berman B, Evans JR. Retail Management: A Strategic Approach. New Jersey (USA): Prentice Hall; 2010. Behera MP, Mishra V. Impact of Store Location and Layout on Consumer Purchase Behavior in Organized Retail. Anvesha. 2017; 10(1):10-21. Ebster C, Garaus M. Store Design and Visual Merchandising : creating store space that encourages buying [Internet] 1st ed. New York (USA) : Business Expert Press; 2011 Fit Small Business. 9 Retail Store Layouts & Tips for Designing Your Floor Plan [Internet] 2024. Available from: https://fitsmallbusiness.com/planning-your- store-layout/ Faculty of Health Sciences- Curtin Medical School