Transcript FIP Meeting - American Pharmacists Association

Chapter 11
Marketing
Communication
Chapter 11 slides for
Marketing
for Pharmacists,
2nd Edition
Learning Objectives
 Discuss the purpose of promoting pharmacy
products and pharmacist services.
 Explain barriers to effective marketing
communication, using the communication model.
 Describe the information processing model.
 Use the information processing model to discuss
the relative effectiveness of various
communication media.
 List the six forms of promotion used to
communicate marketing messages.
 Explain the advantages and disadvantages of each
of these forms of promotion.
 Offer basic recommendations for promoting
services.
 Describe the steps used in developing a
promotional plan.
Promotional Communications
Promotional communications are
communications with a purpose.
About a product’s existence, features,
benefits.
Ultimate goal is to influence behavior.
Consumer opinions are fine but
meaningless if they do not result in
people doing what you want (e.g., most
trusted).
Purpose of promotional
communications
To inform
Prescription refills now on the
Internet.
To persuade
Our prices can’t be beat!
To remind
Don’t forget, we’re still America’s
most trusted.
Promotional message
Should be based on
 Company mission
 SWOT analysis
 The other P’s of the marketing mix
Promotion
Promotion must have a clear message.
Develop clear company image/identity
Involves asking, “what are we?”
Whether a company or individual tries
or not, some identity will be formed in
the mind of the customer.
Actual company names
Cheap-Online-Pharmacy.org
Costco
Medicine Shoppe
CVS
Good Neighbor Pharmacies
Hinky Dinky Pharmacy
“Winn-Dixie division ties
turkey sales to pharmacy”
Customers receive a free 10-12 pound turkey with
the transfer of two or more prescriptions to WinnDixie pharmacies.
The food chain ran a full page ad in the front section
of the Atlanta Constitution/Atlanta Journal
An average of 50 to 60 people per store have taken
advantage of the promotion every year for the last
five years.
Supermarket News, Nov 21, 1994 v44 p 35.
Figure 11-1: Elements of
promotional communications
Promotion
Consumer
Action
The Communication
Model
All
communications
follow
TIP
this simple
Tailor messages to
model.
the
situation.
Receiver
Sender
Encoding
Medium
Decoding
Receiver
Receiver
Feedback
The Communication Model
Information Processing
Model
Each step
in the
model is a
hurdle that
must be
overcome.
TIP
The message can
be lost at any
point.
Barriers to
communication
Selective attention
1600 commercial messages per day
80 messages consciously noticed
12 provoke some reaction
Some advertisers try anything to get
your attention.
Barriers to communication
Selective distortion
Twisting message to hear what
you want
Selective recall
Committing message to longterm memory
Message Sent
Through a Promotional Medium
Information
Processing
Model
Exposure to the Message
Attention to the Message
Comprehension of the Message
Acceptance of the Message
Retention of the Message in Memory
Action Taken in Response to the Message
Important points about the
information processing model
Message must run a path with multiple
barriers to its progression.
Failure at any step means ultimate failure
of the communication.
Communications must reach, grab
attention, be comprehensible, be
accepted, and be retained to be effective!
Avoiding
miscommunication
Use messages that are…
Simple
Clear
Interesting
Repeated
Options for promotion
Promotional
Methods
Marketer Controlled
Marketer Influenced
Advertising
(e.g., magazines, TV)
Public Relations
(e.g., press releases, events)
Personal Selling
(e.g., detailing)
Buzz Promotion
(e.g., cultivating thought leaders)
Direct Marketing
(e.g., telemarketing, mailings)
Promotional Sales
(e.g., sampling, coupons)
Marketer controlled
The message, medium,
and delivery are directly
managed through the
payment of money.
Advertising
 Any paid form of nonpersonal presentation
and promotion by a sponsor
- Print: newsletters, outdoor ads,
newspaper, magazines, yellow pages.
Includes patient package inserts and
educational literature
- Broadcast: TV and radio
 Low cost/exposure, useful for creating
images, easy to ignore
Service advertising strategies
Present services more tangibly
Incorporate physical elements of
service into the promotion (e.g.,
counseling areas)
Associate service with concrete,
specific language and symbols
(e.g., Prudential)
Capitalize on word-of-mouth
recommendations (e.g., customer
testimonials)
Service advertising strategies
(continued)
Demonstrate the customer’s
participation in the service process
Present pharmacist and patient in
promotions.
Provide documentation to demonstrate
the consistent quality of services
98% satisfaction (we’re working on other
2%)
Awards for excellence
Service advertising strategies
(continued)
 Present a series of
actions using drama
to provide a unifying
framework for
describing and
communicating
aspects of the
service experience
Personal Selling
 Personal written or oral
presentations to customers as individuals or
groups
 E-mail, telephone call, presentations
 Immediate, interactive, and hard to ignore.
 Personal relationships are cultivated.
 Unlike advertising, messages often require
response.
Personal selling
examples
Patient counseling
Phoning physicians to
get them to change a
patient’s therapy
Hospital in-service
programs for nurses
Hospital grand rounds
Brown bag meetings
Counterdetailing
5-step personal selling
process
Preliminary stage: Gather
patient information.
Step 1: Assess information.
Step 2: Ask probing questions.
Step 3: Present eatures and
benefits.
Step 4: Address concerns.
Step 5: Make the offer.
Elevator Speech
• A short, scripted
speech designed to
promote something in
the time it takes to
ride an elevator.
Example of elevator
speech
“Hi, my name is Bill Pharmacist.
I work with patients to control
their diabetes. I have a clinic at
Jones Pharmacy. If you are
interested, here is my card. Call
the number and ask for me.”
Direct Marketing
 Individualized nonpersonal
communication
 Nonpersonal because
communications standardized,
mechanized to names on list
 More efficient than personal
selling but less effective
 Impersonal
 Less credible
Existing Customers Direct Communications
•Newsletters
•Loyalty Cards
•Direct mailings
•Scanner
Data
Telephone
•Coupons and deals
800 #’s
•Telephone callbacks
•Automatic Rx refills
•Targeted magazines
Customer
Contact
•E-mail messages
Database
•Referrals to local MDs
Database
•Salesman visits
Companies
•Educational videos
•Free samples
Coupon
and
Customer
•Screenings
Sample
Surveys
•Support groups
Redemptions
•Free classes
Internet
Web sites
Sales
Promotion
Messages used to promote quick sale not
included above
Price deals, coupons, contests, sweepstakes,
refunds and rebates, point of purchase
displays
Used to get attention and stimulate
action
Can generate expectations of deals and
cause customers to be overly price
sensitive
Sales promotion
Trust is a key.
Misuse of customer information can
change loyal customers to enemies.
Giant Foods and CVS mailed refill
reminders and information about new
drugs.
Negative public relations responses.
Marketer Influenced
Marketer attempts to
indirectly influence the
actions of impartial parties
who are independent of
marketers.
Public Relations
Public relations encompasses a broad
range of activities associated with the
process of building a positive image and
goodwill with the public.
Lobbying
Government relations
Media relations
Publicity
Communications with constituents
Public appearances with groups
Community relations
Goal
Assessing Goodwill
Influencing
Goodwill
Publicity
Any nonpaid attempt to get
favorable coverage by the
news media or prevent
nonfavorable coverage
Public Relations
Can be relatively inexpensive if it is do-ityourself.
Creates good will and humanizes a
business.
Gets greater attention.
The negative side is that image is out of
the hands of the marketer.
Word-of-Mouth Marketing
(Buzz Marketing)
Active attempts to promote positive
word-of-mouth (WOM) discussions
about a product or service
How does buzz work?
Buzz starts with…..
A message
Try This
New
Thing!
An opinion
leader
Characteristics of a
buzz-worthy message
Evokes an emotional response
Personally relevant
Meets an unmet desire (i.e., new)
Clearly superior to what is currently
available
Consistent with current belief systems
Visible
Has a good story
Characteristics of opinion
(a.k.a. thought) leaders
They are perceived as credible.
They interact with others by job or
nature.
They travel.
They are information-hungry by
job or nature.
They are vocal.
They are exposed to the media.
How does buzz spread?
Buzz spreads like an
infection through networks
of people.
Arousing buzz
Choose something that is buzz-worthy.
Identify opinion leaders.
Get opinion leaders talking.
Identify and overcome obstacles to
adoption.
Utilize multiple communication
channels.
Encourage adaptation.
Choosing a Medium
 Complicated message – TV or newspaper
 Emotional message – TV or newspaper
 Cheapest way to reach most people – public
relations or radio
 Most effective way to individualize message –
direct marketing or personal selling
 Receiver is short on time – radio or newspaper
Developing a
Promotional Plan
Requires
understanding
of product,
customers,
competitors,
price, and
target market
Four steps
1. Define objective of promotion.
2. Craft message and strategy for
delivery.
3. Select communication mix.
4. Measure effectiveness.
1.
Define the goal of
promotion
Based on positioning statement
e.g., Johnson’s Apothecary, page 258
Inform, persuade, and/or remind?
Good communication is as stimulating as black coffee, and just as
hard to sleep after.
Anne Morrow Lindbergh
2. Define message and
promotional strategy
Solving four problems:
What to say
How to say it in words
How to say it in pictures
Who should say it
When designing message and
strategy:
KISS
Be sincere; be brief; be seated.
Franklin Delano Roosevelt
3. Select a communication mix
Depends on
Message (e.g., complex, simple)
Effectiveness in comparison with other
media
Ability to individualize message
Need for two-way communication
Ability to reach one’s target market
Cost
4. Assess effectiveness
Assess the result of your
communications.
There is no way of knowing your
communications are effective unless you
assess.
The greatest problem in communication is the
illusion that it has been accomplished.
- George Bernard Shaw
Summary
Match media to the message.
Integrate promotion with overall
marketing strategy and business
objectives.
Be clear about the purpose of
your communications.
Questions?