Promotions Mix, Decisions, & Strategies PDF

PROMOTIONS MIX, DECISIONS, & STRATEGIES PH MKTG - UNIT 7  MEMBERS NAJ ROX CRIS An-Najwa Muhaiminah Roxanne Marie Cris Angelo M. Tawasil F. Ebol G, Revillas  GOALS Discussing the role of promotions and i...

PROMOTIONS MIX, DECISIONS, & STRATEGIES PH MKTG - UNIT 7  MEMBERS NAJ ROX CRIS An-Najwa Muhaiminah Roxanne Marie Cris Angelo M. Tawasil F. Ebol G, Revillas  GOALS Discussing the role of promotions and its impact on ethical and OTC/proprietary drug products Examining the various promotions mix employed by drug companies and drug outlets Describing the effective merchandising and display program for drug outlets. TRIVIA TIME  TRIVIA What is the primary goal of marketing? a. Maximizing profits b. Building brand awareness c. Reducing costs d. Managing inventory  TRIVIA What is the primary goal of marketing? a. Maximizing profits b. Building brand awareness c. Reducing costs d. Managing inventory  INTRODUCTION TO PROMOTIONS MIX TAWASIL, A.M.  INTRODUCTION PROMOTIONS MIX A subset of the Market Mix Refers to a variety of promotional tools and strategies used to communicate with the target market Include advertising, personal selling, sales promotions, public relations, and digital marketing  ELEMENTS ADVERTISING PERSONAL SALES TV, Radio, SELLING PROMOTION Print, Direct interaction Incentives, Slogans, Jingles, with potential discounts, coupons, Eye-Catching buyers contests, loyalty Visuals Personalized programs communciation PUBLIC RELATIONS SOCIAL MEDIA E-COMMERCE PR activities enhance a brand’s Customers Online channels, image engagement, online ads, email Media coverage, content sharing, marketing events, sponsor- branding ships awareness MEANINGS AND METHODS TAWASIL, A.M.  DECISIONS Strategic choices made by a company as to which promotional tools to use and the allocation of resource Grounded on product type, market preference, budget allocation Product Lifecycle Decisions, Target Audience Decisions, Budget Allocation Decisions, Competitive Environment Decisions  DECISIONS PRODUCT LIFECYCLE DECISIONS: Introduction Stage: It focuses on creating awareness Growth Stage: Differentiation and building customer loyalty are emphasized Maturity Stage: Brand image is reinforced and maintained in the market share Decline Stage: Promotions are used to extend product life  DECISIONS TARGET AUDIENCE DECISIONS: Done by understanding the audience demogrphacis, psychographics, and behavior Different audience requires different types of approach BUDGET ALLOCATION DECISIONS: Companies allocate resources based on the available budget  DECISIONS COMPETITIVE ENVIRONMENT DECISIONS Competitors’ strategies are analyzed and is used as setting point for differentiation and bench-marking  METHODS DIRECT-TO-CUSTOMER ADVERTISING Creating awareness of the brand or product through television, radio, and print media ONLINE PRESENCE AND SOCIAL MEDIA Pharmaceutical companies must leverage social media platforms to engage with patients and share valuable product information INFORMATIVE BLOGGING Enhances credibility and educates patients  METHODS VIDEO MARKETING Used to explain complex medical concepts, showcase patient testimonials, or highlight drug benefits; visually engaging PUBLIC RELATIONS PR efforts build trust and credibility; it should highlight research breakthroughs, patient success stories, and community involvement DETERMINANTS OF PROMOTIONAL MIX TAWASIL, A.M.  DETERMINANTS NATURE OF THE PRODUCT: The complexity of the product being promoted influences the choice of promotional mix. Consumer Goods Industrial Goods Complex Products Non-Technical Products  DETERMINANTS NATURE OF THE MARKET: Demographics of the audience (age, gender, education, lifestyle); the mix must be tailored accordingly. Industrial Market Consumer Market COMPETITIVE ENVIRONMENT: The number and strength of competitors impact the promotional mix.  DETERMINANTS MARKETING BUDGET: Available funds determine the type and extent of promotional activities. REGULATORY ENVIRONMENT: Regulations around advertising and promotion of pharmaceutical products affect the choice of promotional mix MEDIA AVAILABILITY  DETERMINANTS SALES FORCE EFFECTIVENESS: A strong sales force enables more focus on personal selling; weak sales force may require other promotional investments TRIVIA TIME  TRIVIA Which promotional tool involves direct interaction between salespeople and potential buyers? a. Advertising b. Public Relations c. Personal Selling d. Sales Promotion  TRIVIA Which promotional tool involves direct interaction between salespeople and potential buyers? a. Advertising b. Public Relations c. Personal Selling d. Sales Promotion  PROMOTION MIX FOR ETHICAL & OTC DRUGS EBOL, R.M. PROMOTION MIX FOR ETHICAL DRUGS EBOL, R.M. Drug companies in promoting ethical drug products to physicians, dentists and allied professionals use a variety of tools in their total promotion mix. Priority Program of Activities Professional Service Representatives (PSRs) or Medical Representatives Company’s emissaries / Ambassadors of Goodwill  PRIMARY TARGET Physicians & Dentists Drug companies practically "fight to the death" for a bigger share of the prescriptions market Tend to support certain drug companies whose ethical drug products exemplify the highest quality of safety and efficacy beyond reasonable doubts.  SECONDARY TARGET Pharmacists who dispense and endorse the prescription drug products to end-users in drugstores and hospital pharmacies. The ultimate consumers of ethical drug products indeed have a wide array of choices and risks in deciding for the final ethical drug products to buy other than what is prescribed. PROMOTION MIX FOR OTC DRUGS EBOL, R.M. Mass-based Consumer Constant bombardment of communications through the tri-media advertisements make the OTC buyers vulnerable to instant product patronage, repeat purchase, and frequent usage.  UNILAB Continuing Pharmacist Education (CPE) Program Inventory Management and Control Merchandising Product Displays Effective Retailing Personnel Handling  UNILAB Senior pharmacy students from different colleges and universities also are given the opportunity to tour the company's R and D facilities Quality Assurance Bioavailability Testing Current Good Manufacturing Practices (CGMP) PROMOTIONS MIX OF WHOLESALERS & BIG DRUGSTORE CHAINS EBOL, R.M.  PROMO TOOLS Billboards/neon signs Modernized store fronts and interiors Creative merchandising and displays Sales promotions Localized advertisements Free medical and dental consultations, sampling Discounts  PROMO TOOLS Strengthen the implementation of the Generics Law employs such promo tools: Tri-media advertising Generics menu cards and posters Manuals Streamers Komiks Seminar-Workshops PROMOTIONAL BUDGET EBOL, R.M.  DEFINITION Known as “Marketing Communication” Blueprint for spending the money to promote a product and to grab the attention for the customer towards that product. Set on the basis of percentage of sales or profits.  OBJECTIVES 1. To Communicate 2. To Coordinate 3. To Plan 4. To Control 5. To Evaluate  FACTORS 1. Objectives to be Achieved 2. Fund Available 3. Coverage of the Product 4. Class of the Product 5. Stages in Product Life Cycle 6. Competitive Activities 7. Approach to Advertising 8. Size of the Company 9. Age of Company 10. Prevailing Economic Condition  FACTORS Objectives to be Achieved The objectives which are to be achieved by the organization determine its extent of expenditure. Fund Available Coverage of the Product Reaching the target customer with the help of various media.  FACTORS Class of the Product Convenience Goods Shopping Goods Fashion Goods Stages in Product Life Cycle Introduction phase Growth phase Maturity phase Decline phase  FACTORS Competitive Activities Use the budget pattern of their competitors for preparing their own promotion budget. Approach to Advertising Size of the Company Age of the Company A well-established and familiar business firm is likely to have an edge.  FACTORS Prevailing Economic Condition Many company cut down their promotion budget in the slump phase and increase their advertising budget in boom phase.  METHODS 1. Percentage of Sale Method 2. Competitive Parity Method 3. Fix Amount Allocation Method 4. Economy of Scale Method 5. Startegic Objective and Scheduling Method 6. Push Led Strategy of Product Promotion  METHODS Percentage of Sale Method Budget is determined by product of value of previous years sales or estimated sale for specific budget period and pre- determined percentage. Competitive Parity Method A company is able to beat competition by analysing the spending of the competitors.  METHODS Fix Amount Allocation Method A company allocate a fix amount on a particular product on the basis of past sale records. Economy of Scale Method Strategic Objective and Scheduling Method Push Led Strategy of Product Promotion TRIVIA TIME  TRIVIA Which advertising budget method involves allocating a fixed percentage of either past sales or expected future sales to advertising? a. Percentage of Sales Method b. Competitive Parity Method c. Fix Amount Allocation Method d. Economy of Scale Method  TRIVIA Which advertising budget method involves allocating a fixed percentage of either past sales or expected future sales to advertising? a. Percentage of Sales Method b. Competitive Parity Method c. Fix Amount Allocation Method d. Economy of Scale Method  AN OVERVIEW: Personal Selling, Advertising, Direct Mail, Journals, Sampling, Retailing, Medical Exhibition, Public Relations, Online Promotional Techniques REVILLAS, C.A.  PROMOTION MIX A specific mix of advertising, personal selling, sales promotion, and public relations, a company uses to pursue its advertising and marketing objectives. Consumer-oriented drug companies rely heavily on tri-media advertising (radio, TV, and print commercials), sampling, sales promotions, displays and merchandising, towards achieving projected sales targets through a balance of these mixes.  PROMOTION MIX A. Advertising For OTC/Proprietary Drug Products TV advertising is the most expensive medium of promoting OTC/proprietary drug products, but reach is wider and faster, creating product awareness, long lasting recall, and likewise triggers purchase decisions and repeat buys.  PROMOTION MIX B. Consumer Sales Promotions For OTC/Proprietary Drug Products Designed to achieve the following goals: Arrest/Attract attention of OTC consumers Create immediate response Dramatize product offers Perk-up declining sales Provide inducements or contribution or incentives to give value to consumers (Buy now, buy more)  PROMOTION MIX B. Consumer Sales Promotions Many generic drug products are fast-becoming OTC categories and sales promotions activities encompass even Antibiotics at the drugstore counters of major chainstore outlets. This includes a wide assortment of tools such as the following: a. Discount Coupons b. Bonus-packed offers c. Piggy-back offers  PROMOTION MIX B. Consumer Sales Promotions d. Pick and win promo h. Free goods promo e. Raffle promo i. Rebates f. Trading stamps j. Pin money g. Premium promo k. Mystery buyer l. “Sale” campaign  PROMOTION MIX C. Sales Promotions For Ethical Drug Products 1. Discount coupons for patients 2. Prescription for a cause 3. Gifts for the needy 4. Medical Mission on Free Clinic Operations  PROMOTION MIX C. Sales Promotions Other sales promo tools for ethical drug products to target prescribers include: Subsidies during MD Free trips residency training’s Free goods Study grants Honoraria Sponsorships in Rebates Conventions and Other Financial and Non- Conferences Financial Assitance  PROMOTION MIX D. Personal selling Company’s MOST expensive promotion tool Demands a high degree of intellect and organization Since selling is an art, the individual styles and techniques “diskarte” are equally important. Human asset becomes their GREATEST asset in the attainment of desired goals, through a continuing training program such as in-house seminars and workshops, and public seminars.  PROMOTION MIX E. Merchandising and Displays Helps dealer or drug outlet resell the company’s branded or generics line End-consumers have to be “pulled to one side and be reminded”  PROMOTION MIX E. Merchandising and Displays The factors which provide these reminders may be grouped under the following broad headings: Drugstore owners, pharmacists and pharmacy aides’ personal recommendations and/or endorsements Product Displays Posters and other merchandising paraphernalia TRIVIA TIME  TRIVIA What does tri-media advertising include? a. Radio, Internet, Commercial b. TV, Commercial, Product display c. Radio, TV, Print Commercials d. Sampling, Sales Promotions, TV  TRIVIA What does tri-media advertising include? a. Radio, Internet, Commercial b. TV, Commercial, Product display c. Radio, TV, Print Commercials d. Sampling, Sales Promotions, TV  DISPLAYS: Displays, Posters/Streamers/Billboards, Position of Displays, Key Display Guidelines REVILLAS, C.A.  DISPLAYS Displays may be build by: the drugstore owner of dealer or branch manager or; the company’s representative. 1. Dealer displays Most effective and long-lasting Built by the dealer because he realizes their value and he will always strive to maintain these displays.  DISPLAYS 2. Displays built by the company’s representative Most often the basic display materials provided by the company’s head offices. Displays are the only advertising medium which come into play in making the FINAL sale when all other factors are present namely: the customer, the money, and the product.  DISPLAYS Displays are the “Silent Salesmen” who push your brand even in your absence.  POSTERS/STREAMERS/ BILLBOARDS Posters Are point-of-purchase (POP) materials Ideal location is the outlet, or the point where consumer is likely to makes his/her purchase. Product posters and streamers are the important link between advertising and your brand when the customer gets into the drugstore.  POSTERS/STREAMERS/ BILLBOARDS Posters All advertising commercials are intended to set up a chain of thoughts in the consumer’s mind. A missing poster may break that chain. Always place your posters at eye level or higher, never lower. You may also place two or more posters side by side for visual impact. Make sure posters are clean and readable.  POSITION OF DISPLAYS Position of Displays 1. Point-of-purchase (POP) 2. On the Store Floor 3. On Preferential Shelf Space 4. In the Store window  POSITION OF DISPLAYS Position of Displays 1. Point-of-purchase (POP) displays Best position Exact location where the consumer stands when she will make her purchase  POSITION OF DISPLAYS Position of Displays 2. The Store Floor Best place for a MASS display of your OTC/proprietary brands Only selected outlets: Self-service or serve-yourself areas (Ex. Mercury Branches)  POSITION OF DISPLAYS Position of Displays 2. The Store Floor Floor display needs to be big and in a commanding position. Avoid placing packages on the floor, they will get dirty or damaged.  POSITION OF DISPLAYS Position of Displays 3. Preferential shelf space Part of the fixtures is in a commanding position. Shelves that are at or just below the eye level, Within easy reach of the counter clerks.  POSITION OF DISPLAYS Position of Displays 4. Window Displays Most effective in main thoroughfares. Providing you with ready-to-assemble window displays Integrating all the displays with a single talking point Special seasons of the year or sales and promotional campaigns for the period  KEY GUIDELINES Key Display Guidelines A. If you have a POP Display Have it either where most consumers stand, or better still at every serving point Place it in a strategic place so that the counter clerk sees it as well Have it at a height between waist and eye level Make it big and attractive enough to attract the consumer  KEY GUIDELINES Key Display Guidelines B. If you have a Floor display (Also applies to Preferential Shelf Space) Relate it to the size of the drugstore; within reason, however, the bigger the display, the more it will sell. Have it in a position and size where it will be seen by the greatest number of customers. Do not trim it by including too many brands Display the bigger sized brands in massive facings  KEY GUIDELINES Key Display Guidelines C. If you have a Window Display Make sure you control the whole window space that no other products are cluttering the display. Keep the windows clean and all elements of the displace properly arranged.  KEY GUIDELINES Important Notes: Price Tag is an important display element. The primary task of sales display is to sell. The more the display overcomes the customer’s doubt, the more sales it makes. The moment your displays attract the attention of customers, you are launching a convincing and effective “sales talk” TRIVIA TIME  TRIVIA It is the “Silent Salesmen” a. Displays b. Product c. Commercial d. Owner  TRIVIA It is the “Silent Salesmen” a. Displays b. Product c. Commercial d. Owner  SUMMARY OF THE UNIT TOPIC REVILLAS, C.A. Thanks for listening! THE END