PHARMACEUTICAL

MARKETING AND
ENTREPRENEURSHIP

Lecturer: June Garcia RPh

 What is Economics?
O The study of how individuals and
societies make decisions about
ways to use scarce resources to
fulfill wants and needs.
MICRO VS. MACRO
THE STUDY OF ECONOMICS
 Microeconomics
O The study of the choices that
individuals and business make,
the way these choices interact,
and the influence that
governments exert on these
choices.
 Macroeconomics
O The study of the aggregate (or
total) effects on the national
economy and the global economy
of the choices that individuals,
business, and governments
make.
Macroeconomic Variables
Gross Domestic Product (GDP)
Inflation
Unemployment
Balance of payments
 GROSS DOMESTIC
PRODUCT

-Is the market value of all final goods and services produced
in a country in a given time period.
 Inflation

-Is a continuous and considerable rise in price level

in general.
When an inflation occurs?
O All prices are rising
O Oil prices are rising
O All families are spending more
money on food.
O Prices on the average are rising
 Unemployment

-Is a state in which a person does not have a job but

is available for work,
willing to work,
and has made some effort to find work.
Types of Unemployment

Frictional
Structural
Cyclical
Seasonal
Disguise/Hidden
Frictional Unemployment

-This is unemployment caused by people moving

in between jobs.

E.g. graduates or people changing jobs.

Structural Unemployment

- Is unemployment created by changes in

technology and foreign competition that change
the skills and location match between jobs and
workers.
 Cyclical Unemployment

- Is the fluctuation in unemployment caused by

the business cycle.

E.g. Recession
 Seasonal Unemployment

- Is occurs when employees only work during a

certain time(s) of the year therefore during other
months they regarded as unemployed.
 Disguised/Hidden
Unemployment

- Unemployed is said to exist if people who were

previously fully employed, have had their hours.
(and salaries) reduced because of poor business
performance
 Why Unemployment Is a
PROBLEM?
O Unemployment is a serious economic,
social, and personal problem for two main
reasons:
O Lost production and income - is serious but
temporary.
O lost human capital – is devastating and
permanent.
 ECONOMIC SYSTEMS
O Refers to the mechanism that deals with the
Production, Distribution, and Consumption
of goods and services.
 Types Economic system
O Traditional
O Market
O Command
O Mixed
Types of Economic system
O Traditional Economic system
 The oldest form of an economic system is the
traditional approach. It follows guidelines
created by social customs, religion and
morals.

 Males and Females work in occupations

deemed suitable for their gender.

 Sons tend to follow the occupations of their

fathers.
Traditional Economic
system
 Resources are allocated based on traditional
criteria of age, sex, and birthright.

 Are found mostly in primitive farming

societies. Today they exist primarily in less-
developed countries.

 These traditions fade away as a society

becomes more complex.
Types of Economic system
O Market Economic System
 A free Market Economy begins to take over as
traditional values change.

 In a free market, consumers become the

dominant force and producers make products
that people want to buy. Production is based
solely on the demands of the market place.

 In a Market Economy, the government does

not control which goods and services are
produced all resources are owned by private
individuals.
O Market Economic System

 Critics argue that a free market economy

does not serve all people, it only
accommodates those consumers who
have the money to buy products. Those
without enough money are overlooked
and left out of the market place.
Types of Economic system
O Command Economic System
 The government controls everything. It
decides which products are produced.
How they are made and who gets to
receive them. The government makes
these decisions based on its perception
of what is best for society.
 If everything worked perfectly, a
command economy would provide jobs
for all of its citizens. However workers
must takes whatever jobs the government
decides is best.
O Command Economic System
 The government sets prices for all
products and allocates enough resources
to satisfy its people.

 A disadvantage of a Command Economy

is the absence of innovation. It is not
necessary to come up with new ideas.
Since there is no risk and no reward.
Types of Economic system
O Mixed Economic System

 as the name implies, a Mixed Economy is

a blend market. A command system and
an entirely free market. Consumers and
business control the economy I the
private sector.

 The government is the owner and

decision maker for the public sector.
O Mixed Economic System

O Unfortunately, a government can decide to

intervene when it believes that private
companies are not acting in the best
interest of society.

O A good example is when a government may

take over a healthcare system to provide
medical care to all of its citizens.
 Small business owners must have an awareness
of the type of economy in which they operate. This
is important because the firm must adopt to
changes in the economic system.

 An understanding of these economic systems is

important because a business owner must
operate his company in this environments to
make a profit while most developed countries
have mixed economic systems the rules are
constantly changing.

 Pressures from society may force the government

to assert itself more into some aspects the private
sector. A small business owner has to keep his
eyes open to these types of changes coming down
the road. They can either open up opportunities or
put him out of business.
 Activities of Economy
What to produce
Determined by consumers preferences

How to produce
Determined by producers seeking profits

For whom to produce

Determined by purchasing power
Production – is how much
stuff an individual,
business, country, even the
WORLD makes.
 But what is STUFF?
O STUFF- Goods and services.

O Goods – tangible (you can touch it) products

we can buy.

O Services – work that is performed for others.

So, what do we need to make
all of this stuff?
Factors of Production
O Land (natural resources)
O Labor (Physical and Intellectual)
O Capital (tools, machinery,
factories)
O Entrepreneur ( investment)
 Land
O Refers to ALL NATURAL RESOURCES which
are free gifts of nature. Land, therefore,
includes all gifts of nature available to
mankind both on the surface and under the
surface.
 Labor
O Human efforts done mentally or physically
with the aim of earning income is known as
labor.

O Thus labor is a physical or mental effort of

human being in the process of production.
 Labor
O Wages – what O Salary – the amount
companies pay of pay a person gets
employees for their over a year
labor (usually based (especially for
upon an hourly rate) professional jobs)

O Blue collar O White collar

O Manufacturing, work O Office jobs
with hands
O WAGES
O Is monetary compensation paid by an
employer to an employee in exchange for
work done.
 Land
O Land is passive factor whereas labor is an
active factor of production.

O Actually it is labor which in cooperation with

land makes production possible.

O Land and labor are also known as primary

factors of production as their supplies are
determined more or less outside the
economic system itself
 Capital
O All man-made goods which are used for further
production of wealth are included in capital. Thus, it
is man-made material source of production.
Alternatively. All man-made aids to production, which
are not consumed/or their own sake, are termed as
capital.

O An increase in the capital of an economy means an

increase in the productive capacity of the economy.

O Logically and chronologically, capital derived from

land and labor and has therefore been named as
STORED-UP LABOR
 ENTREPRENEUR
O Is a person who organizes the other factor and
undertakes the risks and uncertainties involved in
the production.

O Acts as a BOSS and decides how the business shall

run.

O He/she loosely identified with the owner, speculator,

innovator or inventor and organizer of the business.
 MEMA LANG
O Some economist are of the opinion that
basically there are only two factors of
production:

O Land and Labor – Primary

O Capital and Entrepreneur - Secondary
Distribution and Exchange
Distribution and Exchange
O In the western world today, the idea that
women and children could be given away as
gifts is shocking.

O In 19th century in Europe, the heads of royal

and wealthy families, giving female relatives
to potential male allies has been a powerful
tool throughout most of the world.
Distribution and Exchange
O When goods and services are given away,
purchased, sold, or trade there are
potentially two components of the exchange-
Pure Economic Gain And Social Gain

O both of these motives usually occur at the

same time in non-market economies.
Distribution and Exchange
O However, in market economies, the social
component is often missing except when the
exchange is between relatives or friends.

O With strangers, the social gain is usually

sacrificed for efficiency and speed
 Types of Distribution and
Exchange
O Reciprocity
O Redistributive
O Market Exchange
 Types of distribution and
Exchange
O RECIPROCITY
O That is to say if you receive a gift, you are obliged
to repay it with another gift.

O Typically results in a continuing sequence of

giving, receiving, and repaying gifts.

O Usually result in a circulation of goods and

services.
 Types of Reciprocity
O Generalized – giving without the expectation
of an immediate return.

O Balanced – explicit expectation of

immediate return.

O Negative - occurs when there is an attempt

to get a more valued things than you give in
return.
 Types of distribution and
Exchange
O REDISTRIBUTIVE – economic exchanges are
intended to distribute a society’s wealth in a different
way.
O They usually function as economic leveling
mechanism.
O Charity and progressive income tax systems are
examples of redistributive exchanges.
O The intended net effect is to reduce or prevent
extremes of wealth and poverty.
 Types of distribution and
Exchange
O MARKET EXCHANGE
O Exchange of goods among many
buyers and sellers
O Directly by barters, Indirectly by
money or pricing
O Market includes crowds of buyers
and sellers, instant information on
prices and freedom of market entry
and exit.
Distribution of Wealth and
Income
Distribution of Wealth and
Income
O The way in which the wealth and income of a
nation are divided among its population, or
the way in which the wealth and income of
the world are divided among nations.

O Patterns of distribution are discerned and

studied by various statistical means, all of
which are based on data of varying degrees
of reliability.
 Wealth
O Is an accumulated store of possessions and
financial claims. It may be given a monetary
value if prices can be determined for each of
the possessions.

O This process can be difficult when the

possessions are such that they are not likely
to be offered for sale.

O Is the accumulation of scarce resources.

 Income
O A net total of the flow of payments received
in a given time period.

O In order to classify patterns of national

wealth and income, a basis of classification
must be determined:
O Basis of ownership
O Wages and profit
O Tax reports
 Income
O Is money what an individual or
business receives in exchange
for providing labor, producing a
good or service, or through
investing capital.
Law of Supply and
Demand
What is the Law of Supply and
Demand
O Is a theory that explains the
interaction between the sellers of a
resource and the buyers for that
resource.

O The theory defines what effect the

relationship between the availability
of a particular product and the desire
(or demand) for that product has on
its price.
 Lets Define Demand and
Supply
O Demand – Refers to how much of that
product, item, commodity, or service
consumers are willing and able to purchase
at a particular price.

O Supply - Pertains to how much the

producers of a product or service are willing
to produce and can provide to the market
with limited amount of resources available.
 Key Takeaways
O The law of Demand says that at higher
prices, buyers will demand less of an
economic good.

O The law of supply says that at higher prices,

sellers will supply more of an economic
good.
 Key Takeaways
O These two laws interact to determine the
actual market prices and volume of goods
that are traded on a market.

O Several independent factors can affect the

shape of market supply and demand,
influencing both the prices and quantities
that we observe in markets.
Factors Affecting Supply
O Production capacity
O Production costs such as labor and
materials
O The number of competitors directly affect
how much supply businesses can create.
O Ancillary factors such as material availability,
O Weather
O Reliability of supply chains
Factors affecting Demand
O The number of available
substitutes
O Consumer preferences
O Shifts in the price of
complementary products affect
demand.
 Market Equilibrium
O A situation in which the quantity
demanded equals the quantity
supplied at the prevailing market
price.
 Consumption
O The use of goods and services to satisfy
human wants, also defined as destruction of
utility.
O 2 Types of Consumption
O Direct or Final – when the goods satisfy
human wants directly and immediately.
O Indirect or Productive – when the goods are
not meant for final consumption but for
producing other goods which will satisfy
human wants.
 5 Economic Questions
O Society (we) must figure out

O WHAT to produce?
O HOW MUCH to produce?
O HOW to produce it?
O FROM WHOM to produce ?
O WHO gets to make these decisions?
BUT, there’s a Fundamental
Problem:

SCARCITY: unlimited wants

and needs but limited
resources
 Choices, Choices
O Because ALL resources, goods, and
services are limited

O WE MUST MAKE CHOICES!!!!!

WHY CHOICES?
 WANTS AND NEEDS
NEEDS AND WANTS
O WANTS – “STUFF” we would really like to
have.
O Fancy food, condo, brand clothing, Flat
screen TV, Jewerly, Conveniences….
O ALSO KNOWN AS LUXURIES

O NEEDS - As having a strong desire for

something.
O “STUFF” we must have to survive, generally:
FOOD, SHELTER, CLOTHING
 TRADE-OFFS
O You can’t have it all (SCARCITY –
remember?)
O So you have to choose how to spend your
money, time, and energy.
O These decisions involve picking one thing
over all other possibilities
O A TRADE- OFF!
 Trade-Offs
O What could you have done instead of come
to school today?
These are all trade-offs
thanks for being here!
INTRODUCTION TO
•Open minded ba kayo?
•May iaalok, ako sayo na
negosyo!
•Pm me how?
•Ask me how?
MARKETING
• Is the commonly used tool to increase market
share.
• Is a process by which one identifies the needs
and wants of the people.
• Is what you say and how you say it, when you
want to explain how awesome your product is
and why people should buy it.
• Is simply selling at a large scale.
MARKETING
• Is an ad., brochure, press release. And more recently marketing is a
facebook page or a twitter account.
• Is not about who can talk faster, or close better. It is about deep
understanding of customers needs.
• Best example is Steve Jobs
Marketing is a Conversation
• Is the conversation that starts between two people who
don’t know each other well.

• When you meet someone for the first time you ask them
questions. And this conversations continues as we get to
know. Each other better.

• So the brand who win more customers are the ones who
put their customers ahead of desire to sell more stuff.
Marketing is a Conversation
• They don’t just act like they care. They actually care and
they prove it in the way they act.

• And like in real life and common human interaction,

marketing means you have to give much more than you
hope to receive.
WHAT IS BRANDING?
• The marketing practice of creating a
name, symbol or design that identifies
and differentiates a product from other
products.
 Branding
• Your brand is something that exists in the mind of
your customer.
• Only experiences change the perception of a brand in
the mind of the customers.
• Brands must deliver amazing customer experiences.
• eg. APPLE AND STARBUCKS
• Marketing supports building strong brands. Great brands
do great marketing.
 BRAND
• Is a name, term, design, symbol or
any other feature that identifies
one seller’s good or service as
distinct from those of other sellers.
Brand….
• An effective BRAND strategy
gives you a major edge in
increasingly competitive markets.
• ADVERTISING - Is a means of
communication with the users of a product
or service.

• ADVERTISEMENTS - Are messages paid

for by those who send them and are
intended to inform or influence people who
receive them
What about Advertising
• Advertising is great, for brands who can afford to interrupt the content
we want to consume.
• Some ads tell a great story about something emotional or funny.

• Jollibee commercial
• Dove soap
 5 TYPES OF MARKETING
• Content Marketing
• Social Media Marketing
• Email Marketing
• Retargeting Marketing
• Influencer Marketing
 Content Marketing
• Publishing content in different
forms to build brand awareness
and nurture relationships with
customers.

• e.g. Blogs, post, video

 Social Media Marketing
• Using social networks like
• facebook,
• Instagram,
• twitter
• to build relationships with existing
customers and reach a wider audience
through digital word-of-mouth.
Types of Marketing
• Email marketing – Sending regular email
communications to users who have signed up to your list
to build relationships and drive sales.

• Retargeting – Contacting existing or potential customers.

• Influencer marketing – Using individuals with a high

profile and many followers on social network channels to
promote your product or services.
MARKETING STRATEGY
FIVE MARKETING STRATEGY
• Developing an effective marketing
strategy – is not quick and easy task,
but the basics can be broken down
into a few key steps
Identify your goals
• what do you want your business to
achieve in the short term and long
term.
 Market research and identify your
customers
• Learn as much as you can
about your target customers.
What they want and needs.
 Competitor analysis
• What products are they selling and
how are they interacting with their
customers.
 Identify your unique selling
proposition
• What are you doing that makes you a
better choice than your competitors?

• How will your marketing reinforce your

brand message?
Choose your marketing channels
• Online or offline strategies.

• This comes down to

understanding your audience,
where they spend their time.
7 P’s Of Marketing
• Once you've developed your marketing strategy,
there is a "Seven P Formula" you should use to
continually evaluate and reevaluate your business
activities.

• These seven are:

• product,
• price,
• promotion,
• place,
• packaging,
• positioning
• people.
• As products, markets, customers and
needs change rapidly, you must continually
revisit these seven Ps to make sure you're
on track and achieving the maximum
results possible for you in today's
marketplace.
 PRODUCT
• Ask critical questions such as, "Is your current product or
service, or mix of products and services, appropriate and
suitable for the market and the customers of today?“

• Are these the right products or services for our customers

today?“

• Compared to your competitors, is your product or service

superior in some significant way to anything else
available?
 PRICES
• Develop the habit of continually examining and
reexamining the prices of the products and
services you sell to make sure they're still
appropriate to the realities of the current market.

• By raising their prices, they may lose a

percentage of their customers, but the remaining
percentage generates a profit on every sale.
Could this be appropriate for you?
PRICES….
• Be open to the possibility that your current
pricing structure is not ideal for the current
market. Be open to the need to revise your
prices, if necessary, to remain competitive,
to survive and thrive in a fast-changing
marketplace.
 PROMOTION
• Promotion includes all the ways you tell your customers
about your products or services and how you then market
and sell to them.

• Small changes in the way you promote and sell your

products can lead to dramatic changes in your results.
Even small changes in your advertising can lead
immediately to higher sales. percent by simply changing
the headline on an advertisement.
PROMOTION…..
• Large and small companies in every industry continually
experiment with different ways of advertising, promoting,
and selling their products and services.

• And here is the rule: Whatever method of marketing and

sales you're using today will, sooner or later, stop working.
Sometimes it will stop working for reasons you know, and
sometimes it will be for reasons you don't know.
 PLACE
• The place where your product or service is actually sold.
Sometimes a change in place can lead to a rapid increase
in sales.

• In each case, the entrepreneur must make the right

choice about the very best location or place for the
customer to receive essential buying information on the
product or service needed to make a buying decision.
 PACKAGING
• The fifth element in the marketing mix is the
packaging.

• Develop the habit of standing back and looking at

every visual element in the packaging of your
product or service through the eyes of a critical
prospect.

• Remember, people form their first impression

about you within the first 30 seconds of seeing
you or some element of your company.
PACKAGING…
• Small improvements in the packaging or external
appearance of your product or service can often
lead to completely different reactions from your
customers.

• With regard to the packaging of your company,

your product or service, you should think in terms
of everything that the customer sees from the first
moment of contact with your company all the way
through the purchasing.
PACKAGING….
• Packaging refers to the way your product or
service appears from the outside.

• Packaging also refers to your people and how

they dress and groom.

• It refers to your offices, your waiting rooms, your

brochures, your correspondence and every single
visual element about your company.
 POSITION
• You should develop the habit of thinking continually about
how you are positioned in the hearts and minds of your
customers.

• How do people think and talk about you when you're not
present? How do people think and talk about your
company? What positioning do you have in your market,
in terms of the specific words people use when they
describe you and your offerings to others?
POSITION…..
• In the famous book by Al Reis and Jack
Trout, Positioning, the authors point out that
how you are seen and thought about by
your customers is the critical determinant of
your success in a competitive marketplace.
 PEOPLE
• Develop the habit of thinking in terms of the people inside
and outside of your business who are responsible for
every element of your sales, marketing strategies, and
activities.

• Your ability to select, recruit, hire and retain the proper

people, with the skills and abilities to do the job you need
to have done, is more important than everything else put
together.
PEOPLE….
• In his best-selling book, Good to Great, Jim Collins
discovered the most important factor applied by the best
companies was that they first of all "got the right people
on the bus, and the wrong people off the bus." Once
these companies had hired the right people, the second
step was to "get the right people in the right seats on the
bus.“

• To be successful in business, you must develop the habit

of thinking in terms of exactly who is going to carry out
each task and responsibility.
MEMA LANG!!
• Both your marketing strategy and your marketing plan are
keys to your long term success, whether your business is
a small start up or a global organization.