Marketing Theory

Question 1

T/F Principles of marketing are applicable to all business entities

Answer 1

TRUE

Question 2

Marketing and pharmacy have long coexisted with a _____ relationship

Answer 2

synergistic (pharmacist understand the need for marketing new services)

Question 3

_________is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings hat have value for customers, clients, partners, and society at large

Answer 3

Marketing

Question 4

_______ concept is the EFFICIENCY in production and distribution of goods and services

Answer 4

production

Question 5

Production concept assumes that the primary interest is….. (2)

Answer 5

product availability and low price

Question 6

What is the issue with the production concept?

Answer 6

may lead to customer concern about impersonal delivery

“Dispensing as many prescriptions as possible w/o regard to providing patient education”

Question 7

_______ concept focuses on making a GOOD PRODUCT and IMPROVING the product over time

Answer 7

product

Question 8

Who defines what a “good product” is under the product concept?

Answer 8

producer/manufacturer (little or no input from the consumer)

Question 9

Product concept assumes…

Answer 9

customers appreciate well made products and that they can evaluate the products

“Build it….. they will come”

Question 10

_______ concept focuses on STIMULATING CONSUMERS interest through aggressive sales and promotion offers

Answer 10

selling

Question 11

Selling concept assumes…. (2)

Answer 11

consumers must be coaxed into purchasing a product or service

-there is little or no concern about consumers’ wants, needs, and post purchase satisfaction

Question 12

_____ concept suggests DIRECT SEPARATE OFFERS, SERVICES, and MESSAGES to individual customers

Answer 12

customer

Question 13

What does the customer concept lead to?

Answer 13

the customization of the product

Question 14

CUSTOMER CONCEPT:

_____ growth occurs through customer ____

Answer 14

profitable; loyalty

Question 15

T/F The customer concept DOES NOT create lifetime value for individual customers

Answer 15

FALSE: DO

Question 16

What are the 3 most common marketing concepts used in pharmacy?

Answer 16

• customer concept
• marketing concept
• societal marketing concept

Question 17

____ concept: suggests the needs of the buyer are paramount

Answer 17

marketing

Question 18

What are the marketing concept activities usually focused toward?

Answer 18

generating profits through the creation of customer value

Question 19

Marketing concept assumes…..

Answer 19

careful selection of target markets (more effective than competitors in creating, delivering, and communicating customer value)

Question 20

______ concept: an organization’s task is to determine the NEEDS, WANTS, and INTERESTS of target market

Answer 20

societal marketing

Question 21

In Societal Marketing the organization wants to deliver desired satisfaction more _______ and ______ than competitors in a way that enhances the customer’s and society’s well being

Answer 21

effectively and efficiently

Question 22

T/F Marketing concept takes into consideration social and ethical issues

Answer 22

FALSE: societal marketing concept

Question 23

state of felt deprivation?

Answer 23

need

Question 24

______ are basic human requirements (physical, social, and individual)

Answer 24

needs

Question 25

desire to satisfy a need?

Answer 25

wants

Question 26

What is shaped by culture and personality?

Answer 26

wants

Question 27

wants backed by the ability to pay?

Answer 27

demands

Question 28

T/F Many people have wants, but only a few can afford them

Answer 28

TRUE

Question 29

_____ occurs when market dislikes a product or is not willing to pay a price to avoid it

Answer 29

negative demand

Question 30

What are the (6) marketing concepts?

Answer 30

- production concept - product concept - customer concept - selling concept - marketing concept - societal marketing concept

Question 31

What are some examples of negative demand? (2)

Answer 31

- health care | - automotive and home repair

Question 32

T/F Patients don't know they have a need or want for a service

Answer 32

TRUE -they don't know this until they are told about it

Question 33

Healthcare providers must respond to the ____ and ___ of patients

Answer 33

needs and wants

Question 34

what you have to offer?

Answer 34

product

Question 35

what is GIVEN UP or SACRIFICED to obtain a product?

Answer 35

price

Question 36

What are the 2 types of prices?

Answer 36

- objective price | - perceived price

Question 37

objective price

Answer 37

actual price of the product

Question 38

perceived price

Answer 38

cost/price that consumer paid that includes other things that are outside of price

Question 39

T/F If a patient has a POSITIVE perceived price, then this will INCREASE perception

Answer 39

FALSE: DECREASE perception

Question 40

Negative perceived price have an ______ perception (exponentially)

Answer 40

INCREASED

Question 41

where the product is available?

Answer 41

place

Question 42

Promotion are activities to ____, _____, and _____ the target market

Answer 42

inform, remind, and persuade

Question 43

positioning?

Answer 43

creating a DISTINCT PLACE in the minds of the target market

Question 44

Pharmacy and "The Product" (3)

Answer 44

- dispensing services - dispensing-related value added services - non dispensing-related value added services

Question 45

dispensing services

Answer 45

associated w/ dispensing of RX that are obligatory by BOP

Question 46

dispensing related value added services

Answer 46

services that extend beyond routine dispensing activities (i.e monitor refill history)

Question 47

non dispensing related value added services (2)

Answer 47

- services not associated w/ dispensing a rx | - are not required by a law in the fee charged for a rx

Question 48

______ the method and sequence in which a service is CREATED, PRODUCED, and DELIVERED

Answer 48

process

Question 49

_____ efficiency in transforming service inputs into outputs

Answer 49

productivity

Question 50

_____ degree in which service meets the needs, wants, and expectations of customers (superiority or excellence in a product or service)

Answer 50

quality

Question 51

T/F In pharmacy, we need to provide services/products of LOW quality

Answer 51

FALSE: HIGH

Question 52

_______ interactions have significant impact on perceptions of service quality

Answer 52

people

Question 53

____ appearances significant impact on perceptions of service quality

Answer 53

environment

Question 54

______ internal standards used by customers when evaluating a product or service

Answer 54

expectations

Question 55

What are the 2 types of expectations?

Answer 55

- desired service level (can be satisfied by an adequate service) - adequate service level

Question 56

_______ feeling of pleasure or disappointment resulting from comparing performance to expectations

Answer 56

satisfaction

Question 57

____ difference between perceived benefits and perceived costs

Answer 57

value

Question 58

T/F Value and Quality ARE NOT related

Answer 58

FALSE: ARE

Question 59

Value vs. Quality | INCREASED quality--> INCREASED _______--> INCREASED ________--> INCREASED ________

Answer 59

perceived value; consumer behavior; profitability

Question 60

T/F Loyalty, attitudes, and behaviors tend to favor the PHARMACY

Answer 60

FALSE: PHARMACIST

Question 61

_____ occurs when there is adoration

Answer 61

loyalty (happens because of negative demand)

Question 62

Relationship Marketing (activities aimed at developing long-term, cost effective links between organization and its customer) = __________

Answer 62

Patient-provider relationship

Question 63

What are things to consider when dealing with relationship marketing and pharmacy? (3)

Answer 63

- pharmacies are full of data (i.e. one on one marketing) - consider others when implementing marketing strategies - building relationships takes time