Marketing Applications

Question 1

What is an important tool for a pharmacy organization to use in maximizing its future success?

Answer 1

Strategic planning

Question 2

What are the five steps of preparing a market strategy for a proposed new good or service?

Answer 2

1. Analyze the market environment
2. Goals and objectives formulation
3. Determining the target market
4. Formulating/ designing the marketing mix
5. Design a marketing control process

Question 3

What are the two areas of the market environment?

Answer 3

1. Microenvironment - internal (structure/ personnel) and external (suppliers/ customers) that affects the ability to serve customers
2. Macroenvironment - factors that affect microenvironment (demographic, economics, nature)

Question 4

What is a SWOT analysis?

Answer 4

Analysis of strengths, weaknesses, opportunities, and threats of the market environment
* Important to evaluate the internal factors of an org

Question 5

What is the difference between strengths and weaknesses?

Answer 5

Strengths: loyal customers, wide range of services, professional image, clinical skills and knowledge, positive
Weakness: not established, no working relationships, limited financial resources

Question 6

What is the difference between opportunity and threats?

Answer 6

Opportunity: Gaps between the market demand and what is currently available, as well as changes in the market that enhance the demand for the organization’s goods and services
Threats: Factors that can prevent the organization from achieving its goals and objectives

Question 7

What are SMART objectives?

Answer 7

Specific: Describes what the organization will do, with what resources, and for what reason
Measurable: Can be evaluated to determine whether or not the objectives were met
Attainable/realistic: Can be achieved within the resource limits of an organization
Time-specific: Describes the deadline of achievement for each objective

Question 8

What steps are needed to identify the target market?

Answer 8

1. Market segmentation
2. Target marketing

Question 9

What is a target market?

Answer 9

will include the population of individuals in the community that will be the primary focus of the organization’s marketing strategy

Question 10

Process in which the market is divided into distinct, meaningful groups of consumers based on profiles (demographics)

Answer 10

Market segmentation

Question 11

Develop specific strategies that are tailored to meet the needs of the selected market segments.

Answer 11

Target marketing

Question 12

Characterisitcs of Medicare enrollees?

Answer 12

1. > 65YO
2. Multiple chronic conditions/meds
3. At risk for preventable infections

Question 13

Characterisitcs of young population who are cash based payers?

Answer 13

1. Young/healthy
2. Emplowed, educated
3. Willing to pay out of pocket even with insurance
4. Interested in prevention services

Question 14

What are the 4 Ps

Answer 14

1. Product
2. Price
3. Place
4. Promotion

Question 15

What is marketing mix?

Answer 15

Set of controllable variables that a pharmacy org can manipulate and use to reach its goals and objectives

Question 16

What are products?

Answer 16

Goods and services

Question 17

What are the Is to differentiate goods from services?

Answer 17

Intangible: marketing must demonstrate the tangible benefits that patients receive from service
Inconsistency: Services are delivered by individual providers to patients (inherent variability)
Inseparability: Services can’t be separated from provider
Inventoried: Services can’t be inventroied and stored
Interaction: services are judged by patients based on the interaction with its provider

Question 18

When establishing a price, what do you need to evaluate?

Answer 18

1. Cost of products
2. Overall cosumer demands
3. Competion
4. Use of price strategies that appeal to the customers

Question 19

What is the Goal for proposed good or service?

Answer 19

To generate suffiecient profit, not to break-even

Question 20

What are the four different types of pricing?

Answer 20

Odd pricing / psychological pricing
Bundled pricing
Functional discount
Seasonal discount

Question 21

psychological pricing

Answer 21

odd pricing

Question 22

What is odd pricing?

Answer 22

Practice of pricing a good or service just below whole dollar amounts (24.99)
* psychological pricing

Question 23

What is bundled pricing?

Answer 23

Practice of selling several goods or services together for one total price, selling them at a discount, while also covering their costs (3 for 10)

Question 24

What is functional discount?

Answer 24

Practice of selling several goods or services together for one total price, selling them at a discount, while also covering their costs

Question 25

What is seasonal discount?

Answer 25

Pricing strategy that is used to increase the utilization of a good or service Out of season discounts

Question 26

Differntiate intensive, exclusive, and selctive distribution?

Answer 26

**Intensive:** products available in a wide variety of locations **Exclusive:** Offered at very few locations **Selective:** Products offect at multiple locations but less that intensive

Question 27

What are the types of promotion?

Answer 27

1. Advertising 2. Personal selling 3. Publicity 4. Sales promotion

Question 28

Involves any directly paid form of non-personal presentation of goods, services, and ideas

Answer 28

Advertising

Question 29

What are the types of advertising?

Answer 29

1. Broadcast media (TV, radio) 2. Print media (magizine, direct mail, outdoor) 3. Internet marketing

Question 30

What are the components of effectie print advertisements?

Answer 30

1. Headline: Attention grabbing 2. Copy: Important info, describe headline 3. Illustration: Visual description 4. Sub-headline: specific info 5. Signature: branding

Question 31

Advantages and disadvantages for magazine ads?

Answer 31

**Ad:** longer shelf-life, high quality **Dis:** Long time publishing mag

Question 32

Popular method of promotion in community pharmacies

Answer 32

Radio

Question 33

Direct mail advertisements disadvantage?

Answer 33

Junk mail

Question 34

A direct, personal form of communication, which allows the organization to directly target the intended audience for a specific good or service

Answer 34

Personal selling

Question 35

Advantages of personal selling? DIs?

Answer 35

1. Answer questions about products 2. fully explain services 3. Build relationships Time consuming and expensive

Question 36

Form of communication of goods, services, and ideas that is not paid for directly by the organization i.e., local newspapers, TV, & radio stations reporting on the importance of immunizations

Answer 36

Publicity

Question 37

Ads and Dis for publicity?

Answer 37

**Ad:** Consumers believe info is unbiased and credible **Dis:** Limit control over who recieves info, what is the target market

Question 38

Temporary efforts to encourage consumers about purchasing a good or utilizing a service

Answer 38

Sales promotion