marketing - series of health economics and entrepreneurship for pharmacy students part 9 Pharm Paul Malaba

1. Marketing
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2. How can we define marketing?
Simply it is a process of convincing customers to buy your
product/service
From a new venture perspective we need to focus on
understanding that Marketing is the process by which you
decide
◦ what you will sell,
◦ to whom you will sell it,
◦ when and
◦ how you are going to sell your product or service, and
◦ then doing it.
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3. Marketing basics
In order to achieve this, we need to ensure
that the “4 P’s” of marketing are applied. i.e.:
Product
Price
Place
Promotion.
In addition, customer service must be added
to the above mix
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4. Marketing Basics
To succeed, entrepreneurs must attract and retain a
growing base of satisfied customers.
Marketing programs, though widely varied, are all
aimed at convincing people to try out or keep using
particular products or services.
Business owners should carefully plan their marketing
strategies and performance to keep their market
presence strong.
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5. Marketing basics
 Marketing is based on the importance of customers to a
business and has two important principles:
1. All company policies and activities should be directed
towards satisfying customer needs.
2. Profitable sales volume is more important than
maximum sales volume.
To best use these principles, a small business should:
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6. Marketing
oDetermine the needs of their customers through
market research
oAnalyze their competitive advantages to develop a
marketing strategy
oSelect specific markets to serve by target
marketing
oDetermine how to satisfy customer needs by
identifying a market mix
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7. Market Research
 Successful marketing requires timely and relevant
market information.
 An inexpensive research program, based on questionnaires
given to current or prospective customers, can often uncover
dissatisfaction or possible new products or services.
 Market research will also identify trends that affect
sales and profitability.
 Population shifts, legal developments, and the local
economic situation should be monitored to quickly identify
problems and opportunities.
 It is also important to keep up with competitors' market
strategies.
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8. Marketing Strategy
oA marketing strategy identifies customer groups
which a particular business can better serve than
its target competitors, and tailors product
offerings, prices, distribution, promotional efforts,
and services toward those market segments.
oIdeally, the strategy should address unmet customer
needs that offer adequate potential profitability.
oA good strategy helps a business focus on the
target markets it can serve best.
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9. Target Marketing
Owners of small businesses usually have limited
resources to spend on marketing.
Concentrating their efforts on one or a few key market
segments - target marketing - gets the most return from
small investments.
There are two methods used to segment a market:
1. Geographical segmentation - Specializing in serving the
needs of customers in a particular geographical area. For
example, a neighborhood convenience store may send
advertisements only to people living within one-half mile
of the store.
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10. Target marketing
2. Customer segmentation - Identifying those people
most likely to buy the product or service and
targeting those groups.
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11. Managing the Market Mix
Every marketing program contains four key components:
◦ Products and Services
◦ Promotion
◦ Pricing
◦ Distribution

12. These are combined into an overall marketing
program:
 Products and Services - Product strategies may include
concentrating on a narrow product line, developing a highly
specialized product or service, or providing a product-service
package containing unusually high-quality service.
 Promotion - Promotion strategies include advertising and direct
customer interaction. Good salesmanship is essential for small
businesses because of their limited ability to spend on advertising.
Good telephone book advertising is also important. Direct mail is an
effective, low-cost medium available to small business.
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13. Marketing program
Price - The right price is crucial for maximizing total revenue. Generally, higher
prices mean lower volume and vice-versa; however, small businesses can
often command higher prices because of their personalized service.
Distribution - The manufacturer and wholesaler must decide how to distribute
their products. Working through established distributors or manufacturers'
agents generally is easiest for small manufacturers. Small retailers should
consider cost and traffic flow in site selection, especially since advertising
and rent can be reciprocal: A low-cost, low-traffic location means spending
more on advertising to build traffic.
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14. Marketing Performance
After implementing a marketing program, entrepreneurs must evaluate its
performance. Every program should have performance standards to compare
with actual results.
Entrepreneurs should audit their company's performance at least quarterly.
The key questions are:
1. Is the company doing all it can to be customer-oriented?
2. Do employees ensure the customers are satisfied and leave wanting to
come back?
3. Is it easy for the customer to find what he or she wants at a competitive
price?
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15. Marketing Plans
A sound marketing plan is key to the success of your business. It should
include your market research, your location, the customer group you have
targeted, your competition, positioning, the product or service you are selling,
pricing, advertising, and promotion.
"You're in business to serve a customer need," says Derek Hansen, founder of
American Capital Access. "If you're not sensitive to customers, don't know who
your customers are, how to reach them and, most of all, what will convince
them to buy your product or service, get help."
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16. Marketing plan
Effective marketing, planning and promotion begins with current information
about the marketplace. Talk to customers, study the advertising of other
businesses in your community, and consult with any relevant industry
associations.
This interactive tool will help you assess your marketing strengths and
weaknesses.
Once you have all the necessary information, write down your plan:
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17. Marketing plans
1: Define your business
Your product or service
Your geographic marketing area - neighborhood, regional or national
Your competition
How you differ from the competition - what makes you special
Your price
The competition's promotion methods
Your promotion methods
Your distribution methods or business location
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18. Marketing plan
2: Define your customers
Your current customer base: age, sex, income, neighborhood
How your customers learn about your product or service - advertising, direct
mail, word of mouth, Yellow Pages
Patterns or habits your customers and potential customers share - where they
shop, what they read, watch, listen to
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19. Marketing plan
Qualities your customers value most about your product or service -
selection, convenience, service, reliability, availability, affordability
Qualities your customers like least about your product or service - can
they be adjusted to serve your customers better?
Prospective customers whom you aren't currently reaching
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20. Marketing plan
3: Define your plan and budget
Previous marketing methods you have used to communicate to your
customers
Methods that have been most effective
Cost compared to sales
Cost per customer
Possible future marketing methods to attract new customers
Percentage of profits you can allocate to your marketing campaign
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21. Marketing plan
Marketing tools you can implement within your budget - newspaper, magazine
or Yellow Pages advertising; radio or television advertising; direct mail; tele-
marketing; public relations activities such as community involvement,
sponsorship or press releases
Methods of testing your marketing ideas
Methods for measuring results of your marketing campaign
The marketing tool you can implement immediately
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22. Marketing plan
The final component in your marketing plan should be your overall
promotional objectives: to communicate your message, create an awareness
of your product or service, motivate customers to buy and increase sales, or
other specific targets. Objectives make it easier to design an effective
campaign and help you keep that campaign on the right track. Once you have
defined your objectives, it is easier to choose the method that will be most
effective.
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23. Marketing activities
On completion of your marketing plan, you (and anyone who reads your plan
for that matter), should be in a position to answer the following questions
clearly:
“What are you going to sell?”
“Who are you going to sell this to?”
“How are you going to sell it?”
“How much is it going to cost you?”
“How much are you going to sell it for?”
“What will your profit be?”
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24. activities
The following should be considered as part of your regular marketing
activities:
Competitor analysis- you will need thorough competitor knowledge to help
you to ensure your pricing is competitive, your product quality/service offering
is comparable/ superior. You need to ensure you stay one step ahead.
Perform Product Differentiation – make your product different to competitors
products.
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25. activities
Distribution: This is the process whereby you are going to get your product or
service to the customer.
Once again, your research will guide you on how you are going to distribute
your product.
It can be:
Manufacturer  Consumer
Manufacturer  Retailer  Consumer
Manufacturer  Wholesaler  Retailer  Consumer
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26. Activities
Product Marketing / Promotions, etc.
Careful targeted promotion of your product is essential in order to create
consumer awareness and thus influence the sustainability of your venture.
Promotions are often costly, so careful consideration must be made of the
financial implications.
Advertising: Radio, TV, Newspaper, Posters, Flyers, Billboards etc.
Promotions: Competitions, Free samples, T-shirts, pens, calendars, key rings
with your logo.
Public relations: Organising tournaments, sponsorships etc.
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27. Selling techniques
Devising and implementing the correct selling techniques is another critical
skill in your armoury for a successful venture.
The important thing is to understand your products and proposition in terms
that your customer will recognise as relevant and beneficial to them
Customers generally value the following benefits higher than all others;
Making money, Saving money and Saving time.
If your sales approach cannot be seen as leading to any of the above, then
customers will not be very interested in you.
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28. techniques
Once you have clearly identified who you are selling to , one or a combination
of the following techniques can be used:
Sales Networks – ‘piggy backing’ on existing networks. Mainly when your
product or service is complimentary to certain existing products or services.
Direct Selling – You will have information during your market research on
potential customers. You then approach the customer directly.
Cold Calling – You literally approach any potential customer even if you have
no information about the customer
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29. Common marketing problems.
1. Lack of brand image: Consumers are guided by brand image. Small
entrepreneurs may find it difficult to penetrate the market due limited
propaganda.
2. Lack of sales force: Small units cannot afford to maintain a well oiled sales
force manned by efficient personnel.
3. Product quality: Small scale business units in the initial stages have a serious
limitation of product quality – because quality testing is costly and not easy.
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30. Problems
4. Credit sales: Mostly are forced to sell on credit. However when it comes to
purchasing inputs they are denied credit facilities.
5. Low prices: Price determination is by bargaining so that at least you may be
able to sell as compared to large enterprises who have large sales volumes.
6. Local and limited market: Small enterprises generally cater to the needs of
the local and limited market due to prohibitive cost of creating a wider
distribution network. The addition of transport cost will make the product non
competitive in upcountry markets.
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31. Professionalism and Customer service
Professionalism means that your conduct has to remain above question at all
times-and has to fit in with the circumstances and situation.
Many business deals have been lost due to unintentional lack of manners,
ignorant, unintentional behaviour, causing people to feel disrespected or
abused. Organisations and business leaders thus loose money and respect.
You may never be given a second chance to find out what went wrong.
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32. Professionalism
You need to make it your business to know as much as possible about the
client’s culture and expectations. This requires understanding and
commitment to:
Acting professionally at all times in the workplace and with clients.
Better business manners.
Improving your image
Minding your manners
Improving your own skills & knowledge
Acting respectfully at work & with clients
Communicating with integrity
Be caring and compassionate.
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33. Professionalism
Within the business environment, it is generally accepted that professional
behaviour is measured by the following criteria:
Appearance
Etiquette (manners)
Punctuality
Delivery
Confidentiality
It doesn’t matter how well you know your client, you have to make sure that
your conduct is utterly professional.
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34. Customer Service
Political freedom has created a spirit of “ freedom of choice” – in all
respects. When this spirit flows into a business, it creates a more aggressive
customer who no longer feels scared and has the democratic right to say, “NO
– I won’t accept this.”
People are getting more & more critical of the quality of service they
experience in their everyday lives, and they want something done about it.
We quickly realize that quality service touches our lives in two ways: the
service we give and the service we receive.
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35. Customer service
The art of turning customer service into service excellence is nothing more
than consistently meeting and exceeding your customer’s expectations in
every way. This must therefore include every aspect of the service provided,
the product, your attitude and your professionalism.
To help transform ordinary customer service into service excellence, thereby
giving you the competitive edge over your rivals we need to consider the10
general commandments of customer service
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36. The10 general commandments of customer service.
We obtain customers by giving or producing high/good quality products and
keep them by providing superior customer service.
It is your job to satisfy the needs, wants and expectations of your customers
and whenever possible, address their fears and resolve complaints.
Customers are the lifeblood of your company.
Remember the customer is a person with feelings and emotions, just like you,
so treat them better than you would want yourself to be treated.
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37. commandments
Provide the customer with the best service because they deserve the most
attentive treatment.
The customer does you a favor by visiting your company. You are not doing
them a favor by serving them, but keeping your business growing.
The customer is the purpose of your work.
You are dependent on the customer, not them on you.
You actually work for the customer.
Service is both marketing and a management tool for your business.
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