Professional Documents
Culture Documents
MARKETING
MARKETING
Pharmaceutical Marketing
& Core Concepts
Marketing Credo
Is a total system of
business related activities
designed to plan, price,
promote, and distributive want
satisfying products, goods, and
services to target markets to
achieve organizational
objectives
PHARMACEUTICAL MARKETING
A unique bundle of
management decisions directed
to satisfy, delight,
surprise customers in the
pharmaceutical business, their
NEEDS and WANTS through
exchange of products and value
with others, towards early
realization of desired goals
3 KEY ELEMENTS OF
MARKETING
1. Satisfying Customers
2. Delighting Customers
3. Surprising Customers
5 WAYS TO DIFFERENTIATE SELLING AND
MARKETING
SELLING
1. Emphasis is on the product (goods and
services
2. Company first makes the product and
then figures out how to sell it
3. Management is sales-volume oriented
4. Planning is short run oriented
5. Stresses needs of sellers
Marketing
Company Market
Market composed of 2
interacting components
Customers
Competition
3 C’s of Marketing
Customers
2 3
Company Competition
OBJECTIVES OF THE 3Cs OF
MARKETING
1. Customer - To competently
satisfy the needs, wants,
and expectations of
target customers
2. Competition - To outperform
them all the time
3. Company - To ensure
corporate health and profit
INPUT AND OUTPUT OF MARKETING
1. CUSTOMERS - SALES
2. COMPANY - PROFIT
3. COMPETITION - MARKET
SHARE
Marketing Effectiveness
1. BETTER THAN BEFORE
2. BETTER THAN OTHERS
3. BETTER THAN EXPECTED
9 CORE CONCEPTS OF MARKETING
1. Needs
3. Wants
3. Demands
4. Value & Cost
5. Exchange
6. Transaction
7. Relationship Marketing
8. Products
9. Markets
NEEDS. To be in want of;
requirement; the lack of useful
or desired thing
Maslow’s Hierarchy of Needs
1. Physiological or body needs
2. Security and safety needs
3. Social needs
4. Ego needs
5. Self-actualization
WANTS. To require; wish for;
something desired
Examples
1. Products
2. Pricing Schemes
3. Promotions
4. Place
5. Warehousing
DEMANDS. To ask for as a right;
to ask for with authority; a claim
VALUE. Worth; utility; precise
significance; to rate at
certain point; to regard; to
estimate
COST. The price paid; amount
demanded; a charge; a
price; equivalent amount to
obtain the product
EXCHANGE. Is the act of obtaining
a desired product for someone by
offering something in return
3 TYPES OF EXCHANGE
1. Self Sufficiency
2. Centralized
3. Decentralized
RELATIONSHIP MARKETING
Smart marketers try to build up
long term, trusting, “WIN-WIN”
relationship with valued customers,
distributors, dealers, and suppliers,
accomplished by promising and
delivering high quality products,
goods, services, and fair prices to
the other parties over time
PRODUCTS. Anything that can be
offered to target clientele to
satisfy a need and want
Kotler….
•offerings
•satisfiers
•resources
that are capable of delivering
satisfaction of a want or need
7 TYPES OF PRODUCTS
1. Physical Objects
2. Places
3. Activities
4. Persons
5. Organizations
6. Idea
7.Service
8. Information
5 LEVELS OF A PRODUCT
1. Non-Durable Goods
2. Durable Goods
3. Services
4 TYPES OF GOODS
ACCORDING TO CONSUMER
SHOPPING HABITS
1. Convenience Goods
2. Shopping Goods
3. Specialty Goods
4. Unsought Goods
3 Types of Services
Rented Goods
Services
Types of Owned - Goods
SERVICES Services
Non Goods
Services
Types Of Services
1. Traditional
2. Non Traditional
3. DOH or NGOs
THE PHARMACEUTICAL MARKETS
Drugstores Municipalities
Hospitals Regional Health
Groceries and
Office
Industrial clinics supermarkets
Rural Health
Medical Clinics Trading stores and
centers
Dispensing Sari-sari stores
Barangays & sitios
Physicians Botica sa bayan
The Target Consumers for Drug Products
A Upper Class
B
C Middle Class
D
E Lower Class
1. Income Level
2. Age Classification
3. Gender
4. Educational Attainment
5. Geographic locations
Flow of Rx in the Hospital OPD
Out-Patient Department
(OPD) Hospitals
Rx generated from
Residents MDs/
Consultants
Out-Patients
Buys Rx
DRUGSTORES
Flow of Rx in Hospital IPD
In-Patient Department
(IPD) Hospitals
Rx generated from
Residents MDs/
Consultants
In-Patient
(Confined in Hospitals)
Rx In Patient’s Chart
Served by nurses
Hospital Pharmacy
Emergency Rooms (ER)
HOSPITALS
Out-Patient In-Patient
Rx served
Rx bought/served
KEY
OBJECTIVES
Production
Product Movement Forecast
Targets
ANNUAL FORECAST
SEMESTRAL FORECAST
QUARTERLY FORECAST
MONTHLY FORECSAT
WEEKLY FORECAST
REGIONAL/AREA
FORECASTS
TERRITORIAL/DISTRICT
FORECASTS
BY PROVINCE/CITY
FORECASTS
CONTRACTUAL/
REGULAR/ CASUAL EMPLOYEES
PERMANENT •Direct Hire
EMPLOYEES •Manpower
Agency
EXECUTIVE SEARCH
HEADHUNTERS
Manpower Development
CAPITAL ADDITIONS
MANUFACTURING SUPPORTS
•Equipment and machinery
•Furniture and Fixtures
•Vehicles
CORPORATE
Marketing OPLAN
PLAN Plans MARKETING
BATTLE
BUSINESS
PLAN
PLAN
GAME PLAN
Marketing Plan
PURPOSE
MISSION
OBJECTIVE
(Desired Results)
Strategies
(Long-term directions)
Policies
TARGET MARKET
GOALS
OBJECTIVES
PLANS
&
PROGRAMS
GOAL
THE OVERALL PLANNING ATTAINMENT
Efficiency &
PROCESS Effectiveness
CUSTOMER
CONCERNED
CONCERN FOR PUBLIC
EMPLOYEES IMAGE
MISSION
PHILOSOPHY STATEMENTS PRODUCTS
LOCATION
9 COMPONENTS OF MISSION
STATEMENTS
3 LEVELS OF GOALS
Strategic Strategic TOP
Goal Plans MANAGEMENT
organization wide
MIDDLE MNGT
Tactical Tactical Department
Goals Plans Perspective
FIRST LEVEL
Operational Operational Unit/individual
Goals Plans Perspective
STRATEGIC GOALS
•Market Standing
•Innovation
•Human Resources
•Physical Resources
•Financial Resources
•Productivity
•Social Responsibility
•Profit Requirement
ARE WE GETTING
THERE?
H WHERE DO WE
WANT TO BE?
B Sales. Marketing,
CAN WE DO IT? G Financial, Production
WHERE DO WE
WANT TO ACHIEVE
WHAT RESOURCES F C THESE GOALS
WILL IT TAKE?
Timetable
WHO WILL E
DO IT? D HOW DO WE GET
THERE?
GOALS OF PLANNING
2. PROGNOSIS
WHERE IS THE COMPANY HEADED?
3. OBJECTIVES
WHERE SHOULD THE COMPANY BE HEADED?
4. STRATEGY
WHAT IS THE BEST WAY TO GET THERE?
4 STAGES OF PLANNING IN
5 Essential BENCHMARKS In
Marketing Key Objectives
1. Purpose/Expectations
2. Products/Service
Expectations
3. Customers/Client
Expectations
4. Geographic Expectations
5. Functional Expectations
1 BUSINESS GOALS
G
O
A 2 SPECIAL PROGRAM
GOALS
L
S
3 TRAINING GOALS
3 TYPES OF GOALS
PURPOSE
Commitment
(WHY?)
FUNCTIONAL PRODUCT
Commitment Commitment
(HOW?) (WHAT?)
MARKETING KEY
OBJECTIVES
CLIENT/CUSTOMER
SCOPE/GEOGRAPHIC
Commitment
Commitment
(WHO?)
(WHERE?)
TYPES OF MARKETING
COMMITMENTS
COMMITMENT
ANALYSIS
1. MARKET
FORECASTS
3. The Expectations of
2. Company’s other individuals & groups
Strengths & Weaknesses in the organization
3 SOURCES OF
COMMITMENT ANALYSIS
MARKETING GOAL
GOAL. Means something desired; a
thing for which an effort is made
Contribution
Pharmaceutical Marketing
1. INTERNAL ENVIRONMENT
Management information system
Marketing Plan
4 Ps of Marketing
2. EXTERNAL ENVIRONMENT
Competitors Publics
Suppliers Marketing
channels
External Variables
1. Demographic/Economic
Environment
2. Political/Legal Environment
3. Technological/Natural
Environment
4. Social/Cultural Environment
SELECTING TARGET MARKET
4 STEPS
Should be…
measurable
accessible by communication
and distribution channels
different in its response to a
marketing mix
Durable (not changing to quickly)
Substantial enough to be profitable
4 Differences In market Segments In
Identifying Characteristics Of Buyers
1. The reasons for buying or using
certain products
2. Buyer’s preferences for certain
brands of products
3. In segments of industrial
product- markets
4. Factors such as age, income, and
lifestyle
Demographic Psychographic
Factors Factors
Geographic
Factors
COMPANIES/BUSINESSES
•Products
•Pricing Decisions
•Promotions Decisions
•Place Decisions
•Marketing Objectives
•Product Positioning Strategies
CONCENTRATED BEHAVIORAL
MARKET SEGMENT
DEMOGRAPHIC
EXPANSION
PRODUCT-LINE LIFESTYLE
DIFFERENTIATED PERSONALITY
BENEFIT ORGANIZATIONAL
NEW MARKET SEGMENTATION
1. By geographic location
2. According to Age
3. According to Sex and Status
4. According to Income
5. By Psycho-social-cultural factors
6. By degree of specialization & therapeutic
categories
7. According to product formats, sizes and
supply
8. According to ownership or type of
organization
9. According to types of Business or
classification
7 ADVANTAGES OF MARKET SEGMENTATION
STRATEGIES
1. Greater profitability in satisfying diverse
demands of the marketplace
2. Increase sales by addressing the needs of target
customers
3. Helps business identify new opportunities
4. Helps firms develop new products to meet the
needs of particular target markets
5. Assists marketer in developing strategies for
brands
6. Useful in providing guidelines for product
positioning in advertising to reach target market
7. Focuses on consumer needs to maintain
competitive advantage
T THE SINGLE MARKET
A APPROACH
R
G M
E A
T R THE MULTIPLE TARGET
K MARKET APPROACH
E
T
I THE COMBINED
N
G
MARKET APPROACH
3 APPROACHES TO TARGET
MARKETING
CURRENT TARGET WHO ARE CURRENT
MARKETS TARGET MARKETS?
CURRENT LOYAL
CUSTOMERS
CURRENT AUTHORITY
ENDORSERS
CURRENT INFLUENCERS
CURRENT TERMINAL
DECISION-MAKERS
CURRENT CONSUMERS
MARKET POSITIONING. Is the place
the product occupies in
consumers’ minds relative to
competitors.
Means creating a competitive edge
Is “market - niching”
Is the “Unique Selling Proposition”
Is the battle in the consumer’s mind
Is target marketing
Refers to the “attributes ”,
“characteristics”, or “purchaser
PRODUCT POSITIONING
COMPETITION Unique Selling proposition
Product Differentiation
“Copycats’ Purchaser’s Criteria
“Imitation” Copy Claim
“Look alike” Market niching
Distinct concept
“Me-too”
BEST BEST
PROFIT SERVICE
AFEBRIN
TEMPRA
BIOGESIC REXIDOL
BRAND AWARENESS
LEVEL
Mercury Watson Generic
Drugstore Drugstore Pharmacy
Drugstore
PEPSODENT COLGATE
PURCHASER’S CRITERIA
POSITIONING STRATEGIES
ONE SPECIFIC ON THE NEEDS THEY
PRODUCT FILL OR BENEFITS
ATTRIBUTE THEY OFFER
COMBINATION OF
PRODUCT CLASS
POSITIONING
AND SITUATIONS
STRATEGIES
MARKET FORECASTING
FORECASTING. Represent action
guides, the “Magic number”
that will show probable results of
various sales and marketing plans
and programs.
Means predicting future market
levels
The act or process of predicting, on
the basis of present trends, of
probable conditions or events
to come, as forthcoming business
activity.
3 DIMENSIONS OF FORECASTING
1. TIME
2. DIRECTION
3. MAGNITUDE
4 PURPOSES OF SALES
FORECASTING
1. The basis of a well balanced budgeting for a
given period
2. Scheduling of all production resources and
facilities
3. To plan current policy and assess current
developments
SEQUENCE OF STEPS IN
FORECASTING
1. Determine primary purpose of
forecasting
2. Group related products
3. Identify factors affecting the sales
4. Choose the forecasting methods
5. Gather available marketing data
6. Analyze all the marketing data
7. Validate all assumption and hypothesis
8. Come out with specific forecast by product area
9. Apply to company’s sales and marketing
operation
SALES FORECASTING
TECHNIQUES
1. The data question
2. The special forecast committee
3. The management estimate
4. The panel method
5. The experts’ opinions
6. The market research method
7. The buyer survey method
8. The cycle and the seasonal analysis
9. The Random factor analysis
FORECASTING OBJECTIVES
LONG-TERM
FORECAST
BUDGET
FORECAST
INDUSTRY
OUTLOOK
TOTAL INDUSTRY
DEMAND
EXPANSION
INTEREST MONEY
RATES SUPPLY
INDUSTRY
OUTLOOK
PROBABLE
EXPORTS VS. TAX
IMPORT POLICIES
CONSUMER
PRICE INDEX
NEW FIRMS
SUBSTITUTE INDUSTRY DURING
PRODUCT
OUTLOOK FORECAST
PERIOD
EXTENT OF
COMPETITION
INDUSTRY ANALYSIS IN
FORECASTING
4 FACTORS THAT SHAPE A
FORECAST
1. Availability of data
2. Structure of the market
3. Other non-economic forces
4. Various Demand Elasticities
2 Methods Of Forecasting
Demand
TOP-DOWN
APPROACH
BOTTOM
APPROACH
Forecast of Generate
economic estimates of
conditions future demand
Product market in market
potential segments
Determine Add the individual
market share estimates to
Forecast arrive at overall
product sales forecast
ECONOMIC FACTORS INFLUENCING
DEMAND FOR THE PRODUCT
Market
Indicators
Method
Consumer Analysis
Establishment of channels
Distribution selections, physical distribution,
Planning inventory management,
warehousing, transportation,
allocation of goods and
wholesaling
Combination of advertising,
Promotion
publicity personal selling, and
Planning sales promotion to drive sales
revenue
MARKETING MIX. Is the set of
controllable marketing variables
that the firm blends to produce the
response it wants in the target
market
5 P’s Of Marketing
1. Product 4. Place
2. Price 5. People
3. Promotion
PRODUCT
•Physical Objects
•Persons
•Places
•Services
•Ideas
•Organizations
•Activities
•Information
Physical
Object
Information
Places
Persons PRODUCTS
Activities
Charges PRICE
Quotations
Product PROMOTIONS
Display Sampling
Public Personal
Relation Merchandising selling
Inventory PLACE
Warehousing Right place
Right
Quantity Transportation Right cost
PRODUCT MIX
DECISIONS AND STRATEGIES
PRODUCT
Is anything that can be
offered to a market for attention,
acquisition, use, or consumption
that might satisfy and delight a
need and want of the target
clientele
Product/Market Matrix
Existing Product New Product
Market
New Market Diversification
Development
Product/Market Matrix
PACKAGING
BRAND
NAME CORE FEATURE AFTER
DELIVERY SALES
BENEFIT S
and SERVIC
CREDIT QUALITY E
STYLING
WARRANTY
What is the Buyer Really
Buying?
WHAT YOU’RE
PRODUCT SELLING
NASAL
NEOZEP DECONGESTANT
1. AWARENESS
2. INTEREST
3. EVALUATION
4. TRIAL
5. ADOPTION
3 CATEGORIES OF NEW
PRODUCT
1. INNOVATIVE PRODUCTS
2. REPLACEMENT PRODUCTS
3. IMITATIVE PRODUCTS
PRODUCT FORMAT. Means different
customers having different
tastes, varied preferences,
unlimited impressions,
differentiated perceptions and
feelings, uncertain like and dislikes,
the same needs but sophisticated
wants.
Capsules SOLUTIONS POWDERS
TABLETS
PELLETS Ointments
CREAMS
MEDICINES
LOTIONS
GRANULE
S SPRAY
Suspensions
PRODUCT FORMATS
Brand or Generic Names
Decisions
E N E R V O N
CHOCO
TABLETS SYRUPS DROPS PWDR
Example:
Paracetamol Multi-
Branding Strategy of
UNILAB
Advantages of Multibranding
More shelf space at the selling area
Very few consumers of a drug product
are that loyal to a brand they will not
buy another
Creating new brands develop healthy
competition
Position brand with different benefits
and appeals
Importance of Branding
Simplifies promotion
Encourages repeat sales
Provides protection against substitution
Minimizes comparison
Aids segmentation
Affords greater price stability
Prepared by many middlemen
Paracetamol Products of
UNILAB MULTI-BRANDING
STRATEGY
BRANDS
DIVISION/SUBSIDIARY
Medicol Tablets Myra Pharma
Biogesic Tablets Biomedis
Sumagesic Tablets United
American
Pharmaceuticals
DIFFERENCE
SIMILARITIES
1. Different Brand
1. Generically Names
equivalent
2. Different
2. Same CGMP Packaging
MULTI
3. Same Raw 3. Different Color
BRANDING
Material and Size
STRATEGY
FOR
4. Same Formula 4. Different Pricing
PARACE-
TAMOL
5. Same RM 5. Different
Source Positioning
Strategy
6. Same QC
Procedure 6. Different Target
Market
3 DESIRABLE QUALITIES FOR A
BRAND NAME
1. It should closely suggest
something about the
product’s benefits and
qualities that the intended markets
could associate with easily
2. It should be easy to pronounce,
recognize, and remember
3. It should be distinctive to readily
arrest attention
PACKAGING DECISIONS
PACKAGING. Is a marketing
activity of creatively designing and
producing the
appropriate container or
wrapper for a product
suitable to target markets
relative to competitor’s product
The container or wrapper is the
package itself.
4 TYPES OF
A
PACKAGING
THE PRIMARY
PACKAGE
C
D THE
LABELLING SHIPPING
PACKAGE PACKAGING PACKAGE
B
THE SECONDARY
PACKAGE
Primary Package
Immediate container
Its corresponding label
Examples: can holding MILO; bottle
containing Amoxicillin
Secondary Package
Protects the primary package
Thrown away when the product is about
to be used by the target clientele
Examples: cardboard box containing
toothpaste, corrugated box with
styrofoam
Shipping package
Used to primarily store, identify, and
ship the product to target markets
Examples: wooden case; corrugated
box
Labeling
Part of the product packaging and
consists of printed information
appearing on or within the package in
accordance to the Labeling Guidelines
PRODUCT LINE DECISIONS
PRODUCT LINE. Is a group of
products that are closely
related either because they:
1. Function in a similar manner
2. Are sold to the same customer
groups
3. Are marketed through the same
types of outlets
4. Fall within given price ranges
PRODUCT MIX DECISIONS
MATURITY
S
A GROWTH
L DECLINE
E
INTRO
TIME
PRODUCT
LOWERING
IMPROVEMENT
PRICES
MODIFICATION
TO PREVIOUS
LEVELS
PROMOTIONS
EFFORTS
GROWTH
STAGE
PRODUCT
POSITIONING INCREASED
LOGISTICS
ENTERING NEW MARKET SUPPORTS
SEGMENT
EXPANDED MARKET CHANNELS
INCENTIVES FOR TRADE OUTLETS
MODIFYING PRODUCT MIX STRATEGIES
INCREASE
USAGE
PRESENT CUSTOMERS
PRODUCT RE-
NEW MIX POSITIONING
PACKAGING
NEW FORMAT STRATEGIES NEW
FORMAT
NEW USERS
NEW MARKET
SEGMENTS
STRATEGIES IN THE MATURITY STAGE
1. Rapid technological
advances
2. Changing consumer
preferences for taste,
flavors and colors
3. Adherence to safety and
efficacy
4. Price consciousness due to
inflation and deteriorating
purchasing power
Reasons Why New Products Fail
Inadequate market analysis
Product deficiencies
Lack of effective marketing strategies
Higher cost that anticipated
Competitive strength and reaction
Poor timing of introduction
Technical or production problems
Possible solutions to avoid Product
Failure
Organizational changes aimed at
strengthening new product planning
Better marketing research to evaluate
market needs and prospects
Improved screening and evaluation of
ideas and products
Employing the Solutions – 3
Advantages
Product Advantage – Emphasizing that
new product is of better quality and has a
more reasonable price than other products
Marketing advantage – Using greater
number of distribution outlets or intensive
distribution
Advertising Advantage – greater number
of mass media usage or effective
advertising copy structure
Steps in Product Development
Process
Idea Generation
Screening of Ideas
Formal Business or Economic Analysis
Product development
Test marketing
Commercialization
PRODUCT LIFE CYCLE
CHARACTERISTICS
INTRO GROWTH MATURITY DECLINE
Continuous, systematic
search for a new product
Idea opportunities
Generation It involves deliberating
sources of new ideas
and methods for
generating them
NEW PRODUCT PLANNING
A Price
Represents the value of a
good or services for both
the seller and the buyer
Systematic decision
Price making by an organization
Planning regarding all aspects of
pricing
THE MANY NAMES OF PRICE
1. Bids or Quotations
2. Catalogue or List Price
3. Retail Price
4. Wholesale Price
5. Net Price
6. Billing Price
7. Rentals/Allowances
8. Charges
Managers’ Role In Pricing
PRICING PRICING IS A
IS AN ART GUESSING GAME
SHIFTING TO
SUBSTITUTE
PRODUCTS
MAY EVENTUALLY
A PRICE REACTIONS OF STOP BUYING
DECREASE TARGET MARKETS IMPORTED
MAY LEAD TO TO PRICE PRODUCTS
INCREASE CHANGES AFTER
DEMAND DEVALUATION
SHIFTING TO
COMPETITOR’S
PRODUCTS
HOW COMPETITORS WILL REACT TO A
PRICE CHANGE OF OTHER COMPANIES?
FOLLOW
IMMEDIATELY
AND INITIATE
A PRICE CHANGE
WAIT FOR
DISREGARD/
OTHERS REACTIONS OF DO NOT
COMPANIES TARGET FOLLOW
TO MOVE COMPETITORS AT ALL
FIRST
TEMPORARILY
DELAY ANY
PRICE CHANGE
Factors Affecting Price
Decisions
Channel
Government
Members
Total
Effects
On Price
Decision
Consumers and Price Decisions
The relationship
between price and
consumer purchases
CONSUMERS
and perception is
explain by 2
economic principles
the law of demand
The price elasticity
of demand
Competitors and Price Decisions
Another element
contributing to the
degree of a control a
COMPETITORS
firm has over prices
is the competitive
environment within
which it operates
Channel Members and Price Decisions
A wholesaler
A retailer
Channel
Members
Government and Price Decisions
Price Fixing
Regulations
Government
Prohibitions against
price discrimination
among channel members
Distribution Cost
FACTORS INFLUENCING PRICE DECISIONS
PRODUCT COST
NATURE OF
MARKET DEMAND
1. Reduced Production
1. Market Appeal
Costs
2. Market Charact.
3. Demand Elasticity
2. Increased Selling
4. Market Demand
Costs
expandability
5. Income Distribution
3. Joint Costs
Pattern
1. Corporate Vision
1. Nature of
and Mission P
Market &
2. Marketing R Demand
Objectives I
3. Marketing Mix
Strategies C 2. Competition
4. Costs I
3. Economy
5. Organization N
for Pricing G 4. Government
6. Executive
Regulation
Pricing Decision
7. Target Markets
Internal Factor 1: Product Cost
2 Common Types of setting prices
1. Mark – up
Example:
a retail price of P1,000
having a standard 10% mark-up
on sales will have a cost of P900.
2. Target Profit
Example: A manufacturer who wishes to make
a 35% return on investment (ROI) on an
invested capital of 2 million and having a
cost of P20 a unit with forecasted sales
volume of 100,000 units may compute for the
specific price level.
Sales Volume
Turnover
FAST SLOW
Market
Dominance
LOW HIGH
Profit Objectives
LONG SHORT
TERM TERM
Pricing Criteria Based on Product Specifications
R
E
PRICE M
•Transport •PROFIT E
•Electricity D
•Water
•IMPORTS I
•Commodities •EMPLOYMENT A
L
•Services •EXPANSION
•Interest Rates PROGRAMS M
E
Overhead Costs •PURCHASING A
•6Ms POWER S
Debt U
Cost of Imports
•REAL INCOME R
Inflation •ECONOMY E
S
Unemployment
RETRENCHMENTS
SURVIVA PROFITABILIT
L Y
STRUCTURAL DEFERMENT/
CHANGES/ TURBULENT POSTPONE-
STREAM- MARKET MENT OF
LINING OF SITUATION MAJOR
OPERATION PROJECTS
MARKET PRODUCTIVIT
GROWTH Y
COST-CUTTING
MEASURES
How Competitors will React to a Price
Change of Other Companies
Follow
Immediately
And Initiate
A Price change
Temporarily
Delay Any
Price Change
When To Increase Price
1. Inflation
2. Forex
3. Shortages
4. Product Repositioning
When To Cut Price
1. Lower Cost
2. Falling Market Shares
3. Excess Capacity
4. Excess Inventory
5. Discourage Competition
6. Socialized Pricing/Discrimination
7. New Market Segment
8. Availability of New Substitutes
9. Subsequent Sales
TO ATTAIN TO MAXIMIZE TO GENERATE
HIGHEST QUALITY ADDITIONAL
PRODUCT IN THE
CURRENT MARKETING
MARKET PROFIT EFFORT
TO DETERMINE TO MAINTAIN/
TO PRE-EMPT OR IMPROVE
WHAT PRODUCT
MINIMIZE ENTRY MARKET
FEATURES WOULD
OF COMPETITION SHARE
BE OFFERED
THE PRICE TAG LAW
R.A. 71 – Requires Price Tags
or labels to be affixed on all
articles of commerce offered
for sales at retail and
penalizing violations of such
requirement
Price Tag
Is a device attached to a
commodity stating the
price at which it is offered
and/or displayed on stalls,
shelves, showcases,
baskets, boxes and offered
for sale at retail to the
general public should have
a price tag
Violations of the Price Tag
Law
1. Failure to affix appropriate price tags or
labels on articles offered or displayed
for sale
2. Selling of articles at prices other than
those stated on the price tag
3. Giving discount discriminately
4. Price tags or labels are not visible
5. Erasing or altering any information on
price tag or labels
Characteristics of a Price tag
Be clearly written
Be visible either at a distance of 3
meters or upon examination
State the price of the commodity per
unit in pesos and in centavos, Philippine
currency
Bear no erasures or alterations of any
sort
PRODUCT COST PLUS PRICING FREIGHT MARK-UP
BUNDLE ABSORPTION PRICING
PRICING
MARKET
SKIMMING BREAK-EVEN LOSS LEADER
SELLING PRICING PRICING
BELOW PRICING
COST
MARKET SEALED GEOGRAPHICAL
MARKET PENETRATION BID PRICING
SHARE PRICING PRICING
PRICING
BUYER OPTIONAL
ONE
COST ORIENTED ACCES-
PRICE
ORIENTED FOR- PRICING PRICING SORY
PRICING MULA STRATEGIES
DEMAND
DISCOUNT & ORIENTED
ALLOWNACE
PRICING PSYCHOLOGICAL
PRICE BARGAINING
PRICING
OFFERING A OFFERING B
PERCEPTION
EVALUATION
USE USE
PHARMACEUTICAL
MARKETING
PROMOTION MIX
DECISIONS AND STRATEGIES
PROMOTION MIX. The set of promotion
tools that the company uses to
reach the distribution channels and
the target consumers to pursue its
marketing objectives for
the period better and faster than
competition.
PROMOTION. Stands for the various
activities the company undertakes to
communicate and promote its
products to the target market
Is an exercise in communication
PROMOTION
Stands for the various activities of
the company undertakes to
communicate and promote its products
to the target market.
Is an exercise in communication.
MARKET MIX
PEOPLE
PRODUCT PRICE
TARGET MARKET
PROMOTIONS PLACE
1. ADVERTISING
2. DIRECT MARKETING
3. SALES PROMOTIONS MARKETING
4. PR/PUBLICITIIES MIX
5. PERSONAL SELLING
ADVERTISING
Any paid form of non personal
presentation and promotion of ideas,
goods, or services by an identified
sponsors
Informs and persuades through paid
media
Mass selling
Communication medium
ADVERTISING FUNCTIONS
1. Informative Advertising
2. Persuasive Advertising
3. Comparison Advertising
4. Reminder Advertising
5. Reinforcement Advertising
4 WAYS OF DESIGNING THE
ADVERTISING MESSAGE
HOLD “INTEREST”
AROUSE “DESIRE”
ELICIT “ACTION”
Qualities Of Advertising
1. Public Presentation (A Public
Mode of Communication)
2. Amplified Expressiveness
(Dramatizes message thru
colors, sounds and pictures)
3. Pervasiveness (repeating the
message over and over
again)
4. Impersonality (A monologue with
the Audience)
MAJOR DECISIONS IN DEVELOPING
AN ADVERTISING PROGRAM
1. Objectives Setting
2. Budget Decision
3. Message Decision
4. Media decision
5. Advertising Evaluation
3 MAJOR ADVERTISING
OBJECTIVES
1. TO INFORM
New product, New uses, Copy claim,
Price change, Company Image, Value-
added Services
2. TO PERSUADE
Brand switching, Substitution, Outright
purchase, Building Brand, Preference
3. TO REMIND
Where to buy, Sales campaign, Awareness
5 Major Decisions In
Developing An Advertising
Program
1. MISSION What are the objectives?
1. High Credibility
2. Off-Guard
3. Dramatization
PERSONAL SELLING
“Face- to- Face” interaction with
one another or more prospective
purchasers for the purpose of
making sale
The oral presentation in a
conversation with one or more
purchasers for the
purpose of making a sale
The personal communication of
information to persuade a
prospective customer to buy a
goods or services
PERSONAL SELLING
Prospecting Customer
Approach
Wants
Sales Answering
Presentation Questions
Follow
Close Up
(satis
faction,
Referrals,
Repurchase
ADVANTAGES OF PERSONAL SELLING
BUILDING A LONG
TERM RELATIONSHIP
CLOSING
OVERCOMING OBJECTION
PREPARING
PLACE MIX
DECISIONS AND STRATEGIES
PLACE
Means distribution channels and
physical distribution
It is a very vital element of the total
marketing mix, that ensures
the adequate availability and
visibility of the right products, in
the right target markets, at
the right quantity, at
the right cost, at the right
condition, at the right time,
anytime and all the time.
PLACE MIX DECISIONS AND
STRATEGIESCUSTTOMERS
PLACE END-USERS
•Standard of quality
Making the right •Specifications in
product available terms of packaging
in the RIGHT •Formulation
and usage
•PLACE •Commercial stock
•TIME level
•Service warranties
•COST
super-value
•QUANTITY service and
•CONDITION amenities
Functions Of Marketing Channel Members
MARKETING
CHANNEL
Financing the
Physical
distribution
transport
cost & related
and storage
channel services
C
H
A
Local
N Drug
N Trader
E
L
1 Department of
Health, Gov’t.
Hospital
END USERS
DRUG MANUFACTURER
C
H
A
N SALES REPS
N
E
L
2 DISPENSING
PHYSICIAN
END USERS
DRUG MANUFACTUER
C
H
A
N
N
E
L Independent
Distributors
Retailers
END USERS
DRUG MANUFACTURER/
C DISTRIBUTORS
H
A
N
N WHOLESALER
E
L
4
RETAILERS
END USERS
C DRUG MANUFACTURER/
H DISTRIBUTOR
A
N
N
E WHOLESALER
L
5 Jobbers
Retailers
END USERS
Pharmaceutical Drug Manufacturer
Company
National Distributor
Wholesaler/Retailer GOVERNMENT
Drugstore AGENCIES
PURE RETAILERS
DRUGSTORES
END USERS
Drug Manufacturer
Independent Company
Distributors Warehouse
DRUG MANUFACTURER
DISPENSING WHOLE-
PHYSICIAN JOBBERS SALERS
GOVT.
RETAILERS RETAILERS RETAILERS AGENCIES
END USERS
MIDDLEMEN
1. Wholesalers
2. Retailers
3. Jobbers
4. Manufacturer’s Representatives
5. Manufacturer’s Branches and
Franchises
6. Distributors and Dealers
7. Dispensing Physician
8. DOH and other Government units
9. NGO’s, Socio-Civic Charitable
Organizations
INNOVATIVE DISTRIBUTION
CHANNELS
1. Groceries and Supermarkets
2. Trading Stores and Sari-Sari
3. Convenience Stores
4. Gasoline Stations
5. Boutique and Gift Shops
6. Post office and Air Cargo Forwarders
7. Multipurpose Hall, Villages/Subdivisions
8. Schools, Offices, Botica sa Barrio,
Botica sa Binhi
9. Clinics, Home Remedy Stores
N 1. INTENSIVE DISTRIBUTION
U
M Tapping the utmost potential of both
the traditional and non-traditional
B
sales outlets
E
R
2. EXCLUSIVE DISTRIBUTION
M
I Aggressively implementing the
D all-or-nothing exclusively arrangements
D with the outlets
L
E
M 3. SELECTIVE DISTRIBUTION
E
N Marketing efforts through
selective middlemen
RESPONSIBILITIES OF MARKET CHANNEL
MEMBERS
MANNUFACTURERS
OR SUPPLIERS
MARKET CHANNEL
MEMBERS
FACTORS TO CONSIDER WHEN
SELECTING CHANNEL MEMBERS
1. PROFILE OF 4. ASSORTMENT OF
MEMBERS PRODUCT LINES FROM
Years in operation DIFFERENT COMPANIES
Financial Capability Related or non-related
Other Assets goods and services
Product length, width,
2. OVERALL and depth of assorted
REPUTATION AND goods
IMAGE IN THE
INDUSTRY AND 5. TRACK RECORD
COMMUNITY Sales growth
Profits
3. FUTURE GROWTH Market share
POTENTIAL AND Market Leadership
EXPANSION
CAPABILITIES 6. CUSTOMERS AND
LOCATION
MANUFACTURER/SUPLLIERS
FREE GOODS DEAL
ADDITIONAL INCENTIVES DISCOUNTS
DISPLAY ALLOWANCES
LIBERAL CREDIT TERMS
SALES AND PROMO CONTEST
PIN MONEY AND REBATES
COOPERATIVE ADVERTSING SUBSIDIES
PRIORITY IN STOCK DELIVERIES AND
ALLOCATION OF NEW PRODUCTS
PERSONNEL TRAINING AND
DEVELOPMENT PROGRAMS
WAREHOUSING
INVENTORY
TRANSPORTATION MANAGEMENT
PHYSICAL
DISTRIBUTION
STORE CUSTOMER
PACKAGING RECEIVING
& MATERIALS HANDLING
Physical Distribution
Involves the physical flow of products
Is the development and operation of
efficient flow system for products
Product movement from last step in
production process to point of
consumption
From raw material;s stage, from
suppliers to final customers
Functions of Physical
Distribution System
Identify inventory location and
warehousing system
Establishing materials handling system
Establishing inventory control system
Establishing order processing steps
Determining effective transportation
system
WAYS OF ALLOCATING PHYSICAL DISTRIBUTION
COSTS
15% ORDER
30% PROCESSING
TRANSPORTATIO COSTS
N COSTS
5%
OTHER COSTS
25% 25%
WAREHOUSIN INVENTORY
G COST COSTS
WHAT CUSTOMERS WANT IN PHYSICAL
DISTRIBUTION
MANUFACTURERS/SUPPLIERS
ADEQUATE TECHNICAL
INVENTORIES ASSISTANCE
ABILITY TO MEET
IN-STORE
EMERGENCY STOCK
REQUIREMENTS PROMO SUPPORT
ASSSISTANCE IN
EXCELLENT AFTER
COMPUTER
SALES SERVICE INSTALLATION
LIAISON ACTIVITIES
PROMPT AND FAST
FOR LICENSING
DELIVERIES REQUIREMENTS
MAJOR ELEMENTS OF DISTRIBUTION MIX
DISTRIBUTION MIX
ORDER
PROCESSIN WAREHOUSIN
G G
TARGET CUSTOMERS
INVENTORY TRANSPORTATIO
N
MAJOR
INVENTORY
DECISIONS
WHAT TO WHEN TO
ORDER? ORDER?
HOW MUCH
TO ORDER?
HIGH MERCHANDISE
INVENTORY IS FRESH
TURNOVER
COCTS OF MAINTAINING
INVENTORY ARE LESSENED
TO THE MINIMUM
REDUCING
ASSORTMENTS
ELIMINATING SLOW
MOVING OR NON
WAYS TO MOVING PRODUCTS
IMPROVE
INVENTORY
TURNOVER MAINTAINING
MINIMAL
INVENTORIES
DELIVERY ON
SCHEDULED DATES
AND TIME
FACTORS TO CONSIDER IN ORDER
SIZE
1. Inventory Turnover
2. Availability Of Quality Discount
3. Cost of Processing
4. Cost of Maintaining
TRANSPORTATION
1. Railroads
2. Motor Carriers
3. Waterways
4. Airways