Pharmacy Administration 24 New PDF

Prepared and presented by Dr.Magdi Thabet Lecturer of Management & Marketing Faculty of pharmacy 1  Course Topics 1) Understand the basic principles of management, 2) financial and human resources, 3) drug promotion sales and marketing...

Prepared and presented by Dr.Magdi Thabet Lecturer of Management & Marketing Faculty of pharmacy 1  Course Topics 1) Understand the basic principles of management, 2) financial and human resources, 3) drug promotion sales and marketing, 4) business administration and accounting as well as the field of social, behavioral, and environmental sciences and health policy that are relevant to pharmacy. 5) Develop an understanding of the law relating to pharmacy and medicines, regulatory affairs, 6) ethics of health care and its impact on relationships with patients and other health care professionals. 7) Understand the factors affecting the delivery of pharmacy services. 8) Application of management in the various pharmacy practice settings; hospital, etc.  Course Objectives Administration and organizational issues Learn and implement Organizational structures Delivery of pharmacy services in evolving health care systems Financial administration for the pharmacy Inventory administration for the goods and supplies Dealing efficiently and effectively With Customers: –Who are your customers –Behavior of customers –Customer relationship management 4  What is Pharmacy Administration ? There are many definitions for pharmacy Administration –The objectives of pharmacy Administration in the advanced pharmaceutical systems may include: Provide improved patient care by ensuring proper drugs are prescribed Introduce greater control over the distribution and issue of drugs Monitor drug usage.  What is Pharmacy Administration ? How to apply the Administration and leadership principles and systems, to both community and hospital pharmacies.  What is Pharmacy Administration ? How to use our limited resources in the pharmacy to get the optimum customer service with minimum costs. 1- Desire to succeed 2- Goal setter 3- Smile 4- Self-confidence 5- Enjoy day-to-day contact with customers 6- Self motivation 7- Self-improvement 8-Customers service 9-Honesty 10- Trust  Professional Pharmacist requirement to Know 10  Pharmacists Roles in Patient Care Pharmacists as drug therapy managers Assessing, counseling and monitoring drug therapy Dealing with medication misadventures Overseeing medication administration systems Delivering pharmaceutical care.  The role of the pharmacist 1. Dispensing “Right drug, right patient” Determining Rx administration methods, modes and schedules Validating prescriptions Checking compatibility of medications Updating patient records Checking content of prepared medications  The role of the pharmacist 2. Pharmaceutical care Evaluating the pharmacotherapy Developing care plans and determining pharmacotherapeutic objectives Selecting and initiating medication and adjusting the treatment Optimizing a patient’s pharmaceutical care and ensuring the safety of it Participating in medical rounds and interdisciplinary teams  The role of the pharmacist 3. Administration Organizing and supervising the work of technical assistants Developing and applying mechanisms for optimal drug usage Controlling the use of non formulary medication Participating in committees Preparing the pharmacoeconomic submission to assist in the formulary decision-making process  The role of the pharmacist 4. Education and teaching Educating hospitalized or out patients about their drug therapy Teaching pharmacy students Teaching peers Organizing professional development activities Research 16 What to Administer in a pharmacy? A - Self-Management Objective Self Organization Time Management Priorities Filing System  What to Administer in a pharmacy? B – Pharmacy Design Spaces Patient Counseling You should consider many things in designing a pharmacy as: the needed space for shelves, the counter, a space for Para-medical and Para-pharmaceutical products, the laboratory, Do not forget to keep a special place for patient counseling  What to Administer in a pharmacy? C –Regulations Governmental regulation Laws You must know the laws and governmental regulations related to your business. Keep updating your self with any changes  What to Administer in a pharmacy? D – Location Where should you open your pharmacy? Community Pharmacy Hospital Pharmacy  Hospital Pharmacy concerned pharmacy service to all types of hospitals and differs considerably from a community pharmacy. Hospital Pharmacy Community Pharmacy More complex clinical More complex business medication management and customer relations issues. issues typically provide typically provide medications for the medications for the hospitalized patients only, outpatients only, and are and are not retail retail establishments establishments  What to Administer in a pharmacy? D – Location Where should you open your pharmacy? Community Pharmacy You may ask yourself this question: Where should you open your pharmacy? This is a very old and still new question. It depends on the number of population, the number of pharmacies in the area, the economy level, the regulations, the costs of operation, etc….  What to Administer in a pharmacy? D – Location Where should you open your pharmacy? Hospital Pharmacy It is also very important to think about the location. You should consider the easy accessibility for both internal and external customers, enough space for patients to wait during prescriptions preparation and delivery  What to Administer in a pharmacy? E - Products arrangements for community pharmacies Pharmaceuticals Alphabetical Therapeutic use OTC \ Rx Dosage Forms  What to Administer in a pharmacy? E - Products arrangements for community pharmacies Pharmaceuticals There are many ways to arrange the pharmaceutical products: 1.Some pharmacists arrange them according to the dosage form i.e. oral solids, syrups and suspensions, oral drops, eye preparations, parental preparations etc… 2.Other pharmacists arrange them according to their therapeutic use i.e. antihypertensive, antibiotics, GIT products, etc…. 3.Many other ways of arrangements are possible as: OTC vs prescriptions products, fast moving vs slow moving products, absolute alphabetical arrangement, manufacturing companies and other alternative. 4.In all cases, we should consider arranging products within each group according to their alphabetical names. 5.You can choose the arrangement method most suitable to your situation considering the space you have, accessibility to other staff in the pharmacy, easiness of handling, and other important situations  What to Administer in a pharmacy? E - Products arrangements for community pharmacies Cosmetics Accessibility Attractiveness Protection visibility to customers, eye attraction, safe and clean place, protection from heat and sun, accessibility to customers, and very important factor is protecting against thieves  What to Administer in a pharmacy? E - Products arrangements for community pharmacies Para-pharmaceuticals / Para- medicals Customers Economical level Visibility Apply the same principles as cosmetics. In both, you should consider the economical level of your customers  What to Administer in a pharmacy? F - Finance and Cash Flow Planned budget vs Actual costs 6 – 12 months reserve Basics of accounting  What to Administer in a pharmacy? F - Finance and Cash Flow One of the common difficulties facing new businesses is the cash deficit. Many businesspeople think how to start their business. They may feel a cash problem very soon, because usually the actual costs exceed the planned budget You must think of the pharmacy's cash flow for one year and think how to inject enough money to develop the business Pharmacists should study the basics of accounting and finance to avoid such problems  What to Administer in a pharmacy? G – Services Pharmaceutical care Measurements (B.P,B.S,….) The services offered to customers are developing and improving all the time. Home delivery is one of the basic services; blood pressure measurement is considered normal service now Blood sugar and cholesterol level measurements have been added to the list Pharmacists should think of other new services  What to Administer in a pharmacy? H – Inventory Goods = Money Sales vs. Purchasing Distributor s’ Stores Stock movement First in, First out 80/20  What to Administer in a pharmacy? H – Inventory How much stock should I have in my pharmacy? A question asked by many pharmacists. Some old pharmacists will answer keep as much stock as you can. -The modern pharmacy management principles recommend to have as little quantity as you can Use the distributors' stores as yours. Think how to get maximum return on investment. Always remember the golden rule "first in first out" to avoid having expired goods. Check the expiry dates of your stocks from time to time  What to Administer in a pharmacy? i – Laboratory Characteristic to pharmacy Profitable Laboratory is the main difference between a pharmacy and a supermarket. Be ready to make basic preparations all the time, and any preparation when needed. Practice your skills in pharmaceutics, otherwise you will forget it Please remember that lab. Preparations are more profitable than ready-made products  What to Administer in a pharmacy? j – Staff Coaching Motivation Administering people is the most difficult and enjoyable tasks of a pharmacy administrator. It is an art and science at the same time. You should learn the basics of people Administration to know how to respect them, motivate them, and get optimum results out of everybody Learn how to teach people, develop their skills and knowledge and how to coach them to improve their performance 35  Administrator Administration & Administration – The process of planning, organizing, leading, and controlling of human and other resources to achieve pharmacy goals effectively and efficiently Administrator – The people responsible for supervising the use of a pharmacy’s resources (People, Skills, Knowledge, Raw materials) to meet its strategic goals  What is Administration ? Administration is the part of your role that deals with current operations Tactics Standards Rules and legal obligations Finances  Administration is... -Getting work done with or through others Administration Administration is a set of activities directed at a pharmacy’s resources with the aim of achieving pharmacy’s goals in an efficient and effective manner  Efficiency vs. Effectiveness Allocates EFFICIENCY and Conserves Doing things Resources right (effort) Waste of Resources EFFECTIVENESS Doing the right things (achievement)  What is Leadership? Leadership is the element in your role that is concerned with the FUTURE Doing For Others What They Can’t Do For Themselves The process of inspiring others to work hard to achieved pharmacy’s tasks  What is Leadership? Leadership involves using power, personality, influence, and communication skills for leading people to achieve pharmacy’s tasks Outcome of leadership is highly motivated and committed staff  What is Coaching? Coaching is the art of facilitating the performance, learning and development of another The Administrator observe his subordinate on the job and point out methods and opportunities for improvement. Leader versus Administrator Administrator + Leaders ▪Manage ▪Innovation ▪Maintain ▪Develop ▪Focus on systems ▪Focus on people ▪Rely on control ▪ Inspire trust ▪Short-range view ▪Long-range view ▪Accept the status ▪Challenge the status ▪Do things right ▪Do the right things Administration : Science or Art? Science of Administration – some aspects of Administration are objective and can be approached with rationality and logic Art of Administration – some aspects of Administration are subjective and are based on perception and experience ADMINISTRATION PROCESS DYNAMIC CYCLE The Administration Process Planning and Decision Making Organizing Determining how Setting the pharmacy ’ goals and best group deciding how best Activities and to achieve them resources Controlling Leading Monitoring Motivating members and correcting of the pharmacy ongoing activities to work in the best to facilitate goal interests of the achievement pharmacy  Administration Levels Strategic level Top Implementing level Middle Operations level Supervision Employees  Administrator Responsibilities Top Administrator – Responsible for the performance of all departments and have cross- departmental responsibility – Establish pharmacy goals and monitor middle managers. – Form top management team along with the CEO and GM Middle Administrator – Supervise first-line managers. Responsible for finding the best ways to use departmental resources to achieve goals. First-line Administrator – Responsible for day-to-day operations. Supervise people performing activities required to make the good or service.  Administrative Skills Conceptual Skills – The ability to analyze and diagnose a situation and differentiate between cause and effect Human Skills/People Skills – The ability to understand, alter, lead, and control the behavior of other individuals and groups Technical Skills – The specific knowledge and techniques required to perform an organizational role  Administrative Skills Relative importance at different managerial levels. First Level Middle Top Management Management Management Conceptual skills Technical skills Administrative skills Human Relations skills  Effective Administration Techniques Give clear directions constant and firm when necessary Treat employees fairly Set a good example Delegate responsibility Establish teamwork concept Ethical and maintaining the standards  Mistakes Administrator Make and Career Killers Lack of direction or goals ! Unrealistic vision: unable to understand the reality and atmosphere! Refusing to be a team player ! Negative work habits ! Like & dislike No trust with the team members of pharmacy ! Overly ambitious! Over-managing: unable to delegate or build a team ! Unable to think strategically ! Over-dependent on others ! 55  Professional Ethics is the field of study that is Ethical judgments are concerned with differentiating “good” or “bad” behavior in a given situation Professional Ethics include the standards, values, morals, principles, etc., that we use as the basis for our decisions or actions  Professional Ethics refers to well based standards of right and wrong that prescribe what we ought to do Professional Ethics is usually expressed in terms of rights, obligations, benefits to society, fairness, or specific features  Ethics means a continuous effort of studying our own moral beliefs and our moral conduct Through the application of ethics, we try to ensure that we, and the organizations we help to shape, live up to standards that are reasonable and solidly-based  Ethics in Pharmaceutical business, as it is often called, is the application of the discipline, principles, and theories of ethics to the organizational framework. Professional Ethics have been defined as “principles and standards that guide behavior in the world of Pharmaceutical business.”  "Ethics is a guide for our morality when we face complicated situations that darken the level of our prior moral experience.“ "Ethics is mostly about how people should be treated and how one should act, “ “if one wishes to act rightly."  Important issues of pharmaceutical ethics is the development of moral Pharmacy management team and improving the moral and psychological weather in it. a set of rules and moral appeal of pharmacist in meeting their responsibilities to society, the individual patient and the contact group of people (medical personnel, control bodies, etc.).  A standard -is an acceptable or approved statement of something against which measurement and/or judgment takes place. -It must be relevant, achievable, Validity, and measurable.  Values are things that an individual believes to be essentially worthy or desirable, that are respected for themselves (e.g. truth, honesty, justice, respect for people and the environment).  Deontology - the science of professional ethics of the pharmaceutical workers, for medical personnel management, principles designed to maximize the usefulness of treatment and medical care.  Pharmacist in modern society  The main objective of the professional pharmaceutical activity is treatment and prevention of diseases, preservation and strengthening of human health.  Pharmacists in his practice on the matters of drugs and medical products promoting must submit with the legislation of Egypt about advertising of drugs, medical equipment, methods of prevention, diagnostics, treatment and rehabilitation.  To promote development of health sphere, Through pharmaceutical sector.  improving of the profession image, pharmacists should actively participate in the activities of national and international civic and professional organizations.  Pharmacist and scientific progress Pharmacist must raise his ethical, professional level and skills. Pharmacist should contribute to conducting of various studies aimed at increasing efficiency and availability of pharmaceutical care. When creating preclinical, clinical trials of drugs, registration, manufacture and their sales, pharmacist must follow the requirements of international standards. Clinical trials of new drugs should be carried out according to bioethical principles.  Importance of Professional Ethics A pharmacist’s responsibility is to benefit patients and prevent harm by dispensing the right drug in the right amount and with complete use information. Failure to fulfill these responsibilities can lead to loss of disease control, disability, and/or death. Adherence to both professional standards and a code of ethics is vital if these problems are to be avoided.  Pharmaceutical Information Providing of pharmaceutical information in professional and public publications, any media, speeches of pharmacists at scientific conferences in the conditions of professional and practical activity should be subject to ethical rules and regulations, avoiding demonstration of advertising, self- promotion and unfair competition. Pharmacist must give the patient complete and available information on application, contraindications, side effects of drugs and medical products, even against his own or commercial interests.  Methods to Promote Professional Ethics Establishing rules and regulations Developing training and education programs Punishing individual for ethical violations Hiring and promoting individuals with ethical behavior and understanding Developing a system of rewards for both ethical actions and unethical ones Establishing an ethics code for the organization  Code of Ethics -These are guidelines derived from values and principals intended for the suitable behavior while practicing various professional activities - They indicate the way a doctor is expected to behave Code of Ethics 1)Contribute to society and human well-being. 2) Avoid harm to others. 3)Be honest and trustworthy. 4)Respect the privacy of others. 5)Honor confidentiality. 6)Acquire and maintain professional competence. 7)Differentiate between our personal opinions and professional duties … 71  RPSGB Code of Ethics for Pharmacists and Pharmacy Technicians Make the care of your patients your first concern. Exercise your professional judgment in the interests of patients and the public. Show respect for others. Encourage patients to participate in decisions about their care. Develop your professional knowledge and competence. Be honest and trustworthy. Take responsibility for your working practices. 72 Royal Pharmaceutical Society of Great Britain  Pharmaceutical ethics and prescription medicines FIP policy statement (Vancouver September 1997) indicates that: (1) “…responsibility for selection of the medicinal product will be that of the pharmacist (made within specified criteria) and (2) regulatory authorities and manufacturers should provide to pharmacists and prescribers, bioavailability and other relevant data relating to all medicinal products, where these are important factors relative to efficacy …”. 73  Pharmaceutical ethics and prescription medicines The RPSGB “Accreditation of UK Pharmacy Degree Courses published 16 May 2002, p.5 indicates under “Outcomes” that: – the graduate pharmacist… is able to interpret and evaluate, for safety, quality, efficacy and economy, prescriptions and other orders for medicines, and to advise patients and other healthcare professionals about medicines and their usage. 74  Ethical relationships between pharmacist and his colleagues Pharmacist must build relationships with colleagues based on mutual respect, trust, take by professional ethics. Pharmacist should create and maintain favorable moral and psychological climate in the team. Pharmacist must criticize incompetence and unprofessional actions of colleagues that may harm health of the population.  Ethical relationships between pharmacist and his colleagues The pharmacist should not offend his colleagues, either by detracting from their practical, moral, or Economically status, or by any other means. Refraining from illegal means to attract customers to his pharmacy The pharmacist should refrain from speculation and stick to the specified prices (discount is illegal)  Ethical relationships between pharmacist and physician Pharmacist as a specialist of this scope shall: Inform the doctor about drugs, their availability, distinctions of pharmacotherapy and use of analogues. Provide the doctor with complete information about the new preventive and diagnostic drugs. Require from the physician to exactly follow the established regulations of writing drugs prescriptions; Detect the medical errors in drugs prescription and discuss them with the doctor. The pharmacist should strongly support the authority of the doctor for saving patient's confidence in the effectiveness of medicines.  Ethical relationships between pharmacist and physician Pharmacist as a specialist of this scope shall: Build a effective relationship of knowledge, respect and appreciation between the pharmacist and the doctor, in order to benefit the patient and his recovery These relations must be based on mutual understanding and support to each other authority in the eyes of the patient. It is not accepted for the pharmacist to achieve an agreement with a physician to dispense medicines to his patients on special conditions.  Ethical relationships between pharmacist and patient Pharmacist must: Treat each patient with respect from meaning individual approach showing no favorite or dislike; Have effective communication skills to be able to achieve confidence and mutual understanding between pharmacist and the patient; To act openly, honestly and objectively, without using in personal or their institution’s benefit Do not take advantage of the patient’s lack of information and ignorance about drugs and medical products,  Ethical relationships between pharmacist and patient Pharmacist must: Don't place pressure on the patient (in whatever form) for their purchase. The pharmacist may not disclose the secrets entrusted to him through his profession, except to the extent required by law. The pharmacist must ensure the dignity of his institution in front of the public in general and his customers in particular.  Ethical relationships between pharmacist and patient Pharmacist must: be able to listen to the patient. The patient should allow The conversation is best to lead in the form of a short dialogue, influencing the feelings of the patient, and the message should contain only the words that will convince the patient to the treatment efficiency. Explain in detail how to keep at home, how and when to take. We must warn about possible side effects of drugs and explain, stop taking it, consult a doctor, to reduce the dose. Ethical relationships between pharmacist and Medical Representatives Medical representatives is one of the main sources of information about company-specific drugs. Performance relationships between pharmacists and Med. Reps. is determined not only mutual economic interest, but complicated relationship of ethical character. The importance of communicating parties confirmed professional and ethical issues, rules, how to make a proper impression and create an atmosphere of mutual comfort.  Ethical relationships between pharmacist and Medical Representatives Important in the relationship of pharmacists and med. Rep. is to establish a trusting relationship that will not accept false promises, providing false information. Med. Rep. Trying to form a positive attitude towards the company and its products, Med. Rep. should not use reducing the advantages of drugs of competing firms, promoting ineffective drugs, giving gifts, souvenirs.  Respect for the profession of pharmacist The principle of respect for his profession must be maintained in all areas of pharmacist’s activity: professional, social, scientific, educational and any other and fully supported by every pharmacist. Unacceptable from a professional and ethical point of view is disrespect and negative statements about pharmaceutical profession. Any activity of pharmacist should contribute to the prestige of the profession, preservation and increase of its best traditions.  Respect for the profession of pharmacist Pharmacist is responsible for the violation of standards and principles of professional ethics in front of the pharmaceutical community as well as of the current legislation of Egypt, if the violation also related to its standards. 86 Customer is the most important person in any business The main objective of any business is to get customers, increase their number every day and keep them related to the business forever A customer is someone who purchases products from a pharmacy. Is a person or an organizational unit that plays a role in the consummation of a transaction with the pharmacy.  Today’s Customers Are better educated Lack time and are stressed Spend less time shopping Have many choices available Do not trust prices Are quick to complain and slow to forgive 90  Today’s Customers Lack of or poorly trained staff Customers know more than pharmacy staff Too many pharmacies Low Gross Profit Margins 91 COST EFFICIENCIES FROM REPEAT CUSTOMERS Repeat customers New customers In a mature market, perhaps the best way a company can maintain a competitive advantage is through retaining its customers Competitive strategies for retaining existing customers tend to be less costly than those for gaining new customers According to some estimates, it costs five times more to attract a new customer than to retain one  CUSTOMERS: TYPES , ROLES , And BEHAVIORS Internal Users Buyers Mental Activities External Physical Activities Behaviors Payers Customer types Roles  Types of Customers 1. Internal customer someone who works for the organization, possibly in another department or another branch.  Types of Customers 2-External Customers Buyers, Payers or Users 1. Individuals 2. Individuals of different needs &cultures 3. Groups  Role Specialization Dividing up the customer roles- user, payer, and buyer- among individuals or groups.  Types of Role Specialization User is neither Payer nor Buyer User is Payer but not Buyer User is Buyer but not Payer User is Buyer and Payer  Types of Role Specialization User is neither Payer nor Buyer In some cases, the user is separate from both the payer and the buyer roles of the customer. For example, parents typically pay for and actually buy most of the products their children use.  Types of Role Specialization User is Payer but not Buyer In business markets, an office secretary may purchase office supplies for someone else’s use and paid for by the departmental budget. Similarly, an external agent may be retained to purchase some equipment, supplies, raw materials for a company, but it is the company who pays for and then uses them.  Types of Role Specialization User is Buyer but not Payer A household example of this situation is a customer picking and using a car towing service whose invoice is then reimbursed by an insurance company  Types of Role Specialization User is Buyer and Payer the user may also be both the buyer and the payer for a product or service, combining all three roles into a single person or department. Most consumers purchase and pay for products for their personal use  Customer Relationship Management ( CRM ) What is CRM? CRM A process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. CRM a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. Advantages of CRM Provide better customer service Increase customer revenues Discover new customers Cross sell/Up Sell products more effectively Help sales staff close deals faster Make call centers more efficient Simplify marketing and sales processes  Inventory Management WHAT ARE INVENTORY ? Stocks are materials that are kept till future needed. Inventory is one of the most expensive assets of many pharmacies. Inventory is any stored resource that is used to satisfy a current or future need Raw materials, work-in-process, and finished goods are examples of inventory. Two basic questions in inventory management are: 1.how much to order 2.when to order  INVENTORY MANAGEMENT It means stocking sufficient number and kind of stores, so that the drugs are available whenever required. Scientific stock control results optimal balance  INVENTORY MANAGEMENT is a scientific technique, concerned with Planning, Organizing & Control The flow of Drugs, from The Distributors to Pharmacy.  Basic needs of inventory management 1. To have adequate products on hand when needed 2. To pay the lowest possible prices. 3. To minimize the inventory investment 4. To operate efficiently & effective WHY WE HAVE TO KEEP STOCKS ? 1-keeping stock :slow the reaction with condition changing (pricing, package, shortages.....). 2-To carry reserve stock to avoid stock out. 3-Increasing customer service  WHY WE HAVE TO KEEP STOCKS ? 4-To gain economy in purchasing 5-To satisfy the demand during period of replacement 6-To stabilize fluctuations in consumption  SO WHAT IS THE PROBLEM?  The Problem Goods = Money Sales > Purchasing Sales < Purchasing Expire Profit Principles of inventory management 1. Effective management & supervision skills It depends on managerial functions of: Planning Organizing Staffing Directing Controlling Reporting Budgeting 2. Negotiation Skills 3. Effective purchase system  Critical Purchase point order Stock cycle Stock decreased Delivery Demand Stock Stock cycle may takes hours, days, months or year Customer :(Patient) any one whose demand is met by removing units from stock Supplier :(Distributor) any one that adds units to the stock Order cycle Review selection Determine needed quantities Reconcile needs & funds Choose order method Select suppliers Follow up order status Receiving & inspection  Re-order level: stock level at which fresh order is placed. Average consumption per day x lead time + buffer stock (Safety stock) Lead time: Duration time between placing an order & receiving of material ✓ Safety stock ✓ buffer added to on hand inventory during lead time ✓ Stock-out ✓ an inventory shortage ✓ Service level ✓ probability that the inventory available during lead time will meet demand  The Inventory Order Cycle Inventory Level Represents decline in available product (“inventory”) as a result of consumer purchases 0 Time Variable Demand with a Reorder Point Q Inventory level Reorder point, R 0 LT LT Time Stock-out  Reorder Point with a Safety Stock Inventory level Q Reorder point, R Safety Stock 0 LT LT Time  ABC ANALYSIS ‘A’ ITEMS Small in number, but consume large amount of resources ‘C’ ITEMS Larger in number, but consume lesser amount of resources ‘B’ ITEM Intermediate  ABC ANALYSIS This is based on cost criteria. It helps to exercise selective control when confronted with large number of items it rationalizes the number of orders, number of items & reduce the inventory. (A)About 10 % of materials consume 70 % of resources (B)About 20 % of materials consume 20 % of resources (C)About 70 % of materials consume 10 % of resources  Pareto’s law Rule 80/20 20 % Drugs 20 % 80 % 80 % Income Drugs Income Pareto’s law Rule 80/20 R drugs %20 %80 drugs %80 R 130 %20  VED ANALYSIS Based on critical value & shortage cost of an item –It is a subjective analysis. Items are classified into: Vital: Shortage cannot be tolerated. Essential: Shortage can be tolerated for a short period. Desirable: ▪Shortage will not adversely affect.  ABC & VED ANALYSIS V E D ITEM COST A AV AE AD CATEGORY 1 10 70% B BV BE BD CATEGORY 2 20 20% C CV CE CD CATEGORY 3 70 10% CATEGORY 1 - NEEDS CLOSE CONTROL CATEGORY 2 - MODERATE CONTROL. CATEGORY 3 - NO NEED FOR CONTROL  Just-in-Time Inventory Just in Time Inventory is the minimum inventory that is necessary to keep a system perfectly running With just in time (JIT) inventory, The exact amount of items arrive at the moment they are needed, Not before OR not after To achieve JIT inventory, Managers should Reduce the Variability Caused by some Internal and External Factors. SDE ANALYIS Based on availability: Scarce Maintain big safety stocks Difficult Maintain sufficient safety stocks Easily available Minimum safety stocks FSN ANALYSIS Based on utilization: Fast moving. Slow moving. Non- moving. HML ANALYSIS Based on profit : Highest Medium Low  Storage Store must be of adequate space Materials must be stored in an suitable place & in a correct way Group wise & alphabetical arrangement helps in identification & recovery First-in, first-out principle to be followed Monitor expiry date  Inventory Related Costs: Holding and Ordering Costs Holding Costs –are the costs associated with holding or “carrying” inventory over time –It includes costs related to storage; such as insurance, extra staffing, and so on. –Some example holding costs are: Store rent or reduction Taxes on building, insurance on building Material handling equipment leasing or depreciation Ordering Costs –include cost of supplies, order processing, etc. –The ordering cost is valid if the products are purchased NOT produced internally or manufactured 139 140 “The Marketing Society definition” The management process within a company responsible for identifying, anticipating and satisfying customer requirements profitably. “Philip Kotler's definition” The Marketing Concept Customer Total Company Satisfaction Effort The Marketing Concept Win-Win Win-Win Profit The process whereby the seller uncovers activates and satisfies the needs or wants of the buyer to the mutual , continuous benefit of both the buyer and the seller. From the book “Selling” , “Principles & Methods” Selling is the personal or impersonal process of assisting and/or persuading a prospective customer to buy a product or a service or to act favorably upon an idea that has commercial significance to the seller" The American Marketing Association's definition  In which there is a direct verbal contact between the salesperson and the customer. This involves face-to-face communication. Both benefit from the opportunity to see each other’s facial expressions and physical actions. Ex. Tel. Cal  This involves no face-to-face contact between the customer and the sales person. It is aimed at making the company and its products known to large group of audience. Ex. Advertising and display  Promotion keeps the product in the minds of the customer and stimulate demand for the product.. 148  is bringing a product (or service) to the attention of potential and current customers. 149  Include ongoing activities to ensure the organization has a strong public image. P.R activities include helping the public to understand the organization and its products.  Publicity is mentioned in the media. It is nonpaid medium Organizations usually have little control over the message in the media  What the product IS / Has. Or The product ’s specifications What it can do (for the customer) Or The end result of the effect of it  Need is state of deficiency which wants to be eliminated Desire for specific satisfiers of deeper needs Motive is what causes people to act 153  BUYING MOTIVES Possession 1 Making a gain 2 Avoiding a loss Experience 3 Having pleasure, 4 Avoiding pain, enjoyment,, worries, problems convenience 6 Gaining social approval, prestige 5 Boosting self- Recognition satisfaction, pride Importance of salesperson Sell Increase value of the products Educate Gather information Keep updated Data records Long-term relationship 155  Building Rapport Before the After the During the Call Call Call 157  Steps of Sales Cycles 1- Before the call : Prospecting Preparation II- During the call : Approach Presentation Responses Close III- After the call: Post-Call analyzes  Prospecting * Prospecting means real digging to locate and identify people who want or need your product or service. * Prospecting provides the basic for laying down the strategy for the sales call. * Prospecting is an on-going process  It is the process of analyzing information & facts about your prospects, then to determine the best way to approach them. 160  During prospecting, we have decided to Whom we want to sell In the preparation step, we decide WHAT we want to sell and HOW we want to do it.  Preparation Prospect 1- Analyze your data for Market Preparation 2-Set your objective SMART objective S Specific M Measurable A Ambitious R Realistic T Time Limited  Preparation 3- Find HOW to achieve your target Analyze Your Product Analyze Your Competitors  Preparation 4- Planning the call Find out best time to see customer ** prepare:- Approach Questions to uncover needs Benefits to satisfy needs Responses to possible reactions Use of visual aid Ways of closing to gain commitment OBSERVATION SKILLS Any information you are able to collect without asking the patient. You will be able to use your time with the patient more effectively. The patient will be more receptive to you because he doesn’t have to spend time answering general questions. 166 Is the skill of capturing the customer’s attention and Focusing on the sales call.  * Referral * Call Objective * Product’s Benefit * Motive, Need 168 * Apologize * Refer to the negative visit * To start with (how is business) * Close ended question  Approach i. Greeting / Introduction ii. Purpose of your call iii. Ask an open question ▪ Zoom in or satisfy the customer’s need / buying motives with the features & benefits of our product. ▪ Positive two-way communication.  Parts ❖ Uncover the customer’s need by effective questions. ❖ Matching product’s benefit with customer’s need. (We don’t sell features , we sell benefits) Is the skill of obtaining the customer’s agreement to act by asking a closed ended question.  Types Of Closing 1. DIRECT CLOSE ▪ Will you prescribe it ? ▪ How many packs do you need this week?  2. EITHER / OR CLOSE ▪ Do you prefer cash discount or credit facility? ▪ Shall we supply regular or hospital packs?  3. STEP-BY-STEP CLOSE Rep : “How many packs of Product….. will you need this month ?” Pharm : “I don’t know” Rep : “Well, how many prescriptions do you normally get every week ?” Pharm : “About 9” Rep : “What is the average number of packs per prescriptions?” Pharm : “I would say about 2” Rep : “So in one week you require 18” Pharm : “Yes” Rep : “Therefore, can I send you 25 per week. Pharm : “OK , thanks”  4. SUMMARY CLOSE Rep : “ Dr. You agree that my product is - Effective - Safe - Economically Would you therefore prescribe it in next five new patients ? ”  5. INCENTIVE CLOSING ▪ If you order before the end of the week you will get an additional 5% free of charge. Would you order now ?  VISUALS Degree of retention (after 2 - 3 days) We remember We remember We remember 10% of what we 20% of what we 65% of what we hear see hear& see  VISUAL Aids ✓ Know your visual in details. ✓ Illustrate one point only. (Relate to prospect’s needs) ✓ Ask question. ✓ Make it clean & ready to use. ✓ Avoid showing it too early or too late.  Evaluate your sales call To initiate action/fellow through on promises To help you in your prospecting Best made right after you left Customer Responses  Customer Responses Positive Customer Negative Customer Responses Responses Positive / Negative Customer Responses Why Does Customer Object ? ❑New ideas mean old ones are wrong (Fear from new) ❑Fear of wrong decision ❑No enough information ❑No recognition of needs ❑Did not understand explanation ❑Needs reassurance 184  Positive Customer Responses Many of the customer responses are very positive. Approval statement “ Your product is economic ”. Positive comment “ I’m happy to hear that ”. Non-Verbal (Body Language).  Positive/Negative Customer Responses Statements with a positive and negative aspects Pick up on the positive only, use it. Just ignore the negative portion. Ex : - Yes, but … - I like that ,however … - I agree ,although …  Negative Customer Responses Professional Med.Rep. must be able to identify & respond to 4 types customer resistance : 1. Misconception 2. Real Objection 3. Skepticism 4. Lack Of Interest Misconception A customer’s incorrect negative assumption about your product or company, due to a lack of correct information. Misconception Strategy : ▪ Step 1 : Probe to clarify the customer’s concern. ▪ Step 2 : Tactfully provide the correct information to resolve the misconception. ▪ Step 3 : Emphasize the positive information you have provided. Real Objection A resistance based on a legitimate shortcoming or disadvantage of your product.  Real Objection Strategy : Step 1 : Probe to clarify the customer’s concern. Step 2 : Acknowledge the customer’s concern. Step 3 : Reduce the impact of shortcoming on the customer. Step 4 : Emphasize the benefits of the product. Skepticism A disbelief that your product can really provide a benefit that you say it can.  Skepticism Strategy : Step 1 : Emphasis the benefit in question. Step 2 : Prove the benefit. Step 3 : Explain the benefit. Lack Of Interest ❖ Almost due to satisfaction with a competing product. ❖ Your task is to turn an area of dissatisfaction with the competing drug into an area of need for your product. Lack Of Interest Strategy : - Use a series of closed probes to uncover areas of customer need. Dissatisfaction Closed Probes For Specific Problem Confirm Clear Need Short Call The purpose of the short call is to make maximum use of a limited time.  Short Call Steps Of Short Call: Step 1 : Open the call Step 2 : Provide 1-2 high priority features and benefits. Step 3 : Ask for action.  Strategic Planning for characteristic pharmacy Setting the direction for the organization, then working to ensure the system follow that direction 199  Strategic Planning Is the process of deciding the optimal configuration between unlimited needs and limited resources to achieve your priorities and objectives 200 Time Cost Effort Sales 201  Typical Phases in Planning 1) Strategic visions and Purpose ("Mission") 2) Environmental Scanning 3) Analyze the Situation (SWOT Analysis) 4) Establish Objectives 5) Establish Strategies to Reach Goals 6) Establish Tactics (Action Plan) 7) Associate Responsibilities and Time Lines with Each Objective 8) Write and Communicate a Plan Document 9) Performance Evaluation 10) Acknowledge Completion and Celebrate Success 202 Strategic visions and Purpose "Mission" A mission statement A strategic vision focuses on current concerns a pharmacy’s business activities -- future business path -- “who we are and what “where we are going” we do” – Market strategy – Current product and – Future technology-product- service offerings customer focus – Customer needs being served 203  Recording and writing down all relevant facts existing in the market or may occur during the planning period 204 - Strengths -Weaknesses - Opportunities - Threats 205  SWOT Analysis Strengths Opportunities Internal Strategy External Factors Planning Factors Weaknesses Threats 18-5  Importance of SWOT analysis It analyses whether the business is healthy or sick. An organization comes to know about the internal and external factors that affect its success or failure. Reconfirm the current mission statement, goals, and strategies Formulate a new mission statement, goals, and strategies when necessary Objective are the end results which the pharmacy aim to achieve 208 SMART S Specific M Measurable A Ambitious R Realistic T Time Limited 209  The main way to achieve our objectives. What resources we need to do it. 210  What are the individual activities that need to be carried out in order to fulfill the strategy? Or: The detailed actions to be done. It should answer the following question: Who will do what, when, how, and how much it cost? 211 Activity Date Responsibility Cost 212  Performance Evaluation – The process of monitoring activities to ensure that they are being achieved as planned and of correcting any significant deviations. – To ensure that activities are completed in ways that lead to achievement of pharmacy goals.  Performance Evaluation Monitoring progress Taking corrective action when necessary. Ongoing processes. Measures to avoid risks 214  Performance Evaluation Both quantitative and qualitative factors should serve as bases for performance evaluation. – Quantitative bases are specific and objective. – Qualitative factors are limited by the subjective judgement of the evaluators. Both inputs (or effort) and outputs (or results) should be in the same direction. 215  Acknowledge Achievement and Celebrate Success Acknowledge if the problem was solved or the goal met. Don't skip this step Undermine the success Cultivate apathy and skepticism 216 Thank you