Chapter 8
Strategic Marketing
Planning
Chapter 8 slides for
Marketing
for Pharmacists,
2nd Edition
Learning Objectives
 Describe the strategic planning process.
 Discuss the role of strategic marketing
planning for pharmacists.
 Define the following terms associated with
strategic planning: mission statement,
business plan, SWOT analysis, marketing
goals and objectives, brand, commodity,
brand awareness, brand image, brand equity.
 Develop a strategic marketing plan for a
pharmaceutical service or product.
Role of a Mission
Statement
TIP
All planning and
strategies
originate
from it.
Every part of a business plan
derives from the mission.
Mission
Business
Plan
Marketing
Plan
Financial
Plan
Human
Resources
Plan
Distribution
&
Supply
Vision without action is a daydream. Action without vision is a nightmare.
- Japanese Proverb
Strategic Marketing
Plans
A step-by-step plan for solving
marketing problems
Strategic marketing plans
Can be conducted any time you have a
marketing problem
New service (diabetes management)
Change in services (Internet pharmacy)
New competitor (Wal-Mart)
In pharmacy, many services are
provided on hit or miss basis without
much planning.
Wal-Mart fills $4 generic
prescriptions
 Wal-Mart Stores announced the expansion of a
generic prescription drug discount program
introduced last month in Florida to additional
states.
 Wal-Mart said that the program has received a
strong customer response in Florida. In the Tampa
area, Rxs increased by 36,000 in the first 10 days
of the program.
 The generic medications in the program account
for almost 30% of the Rxs filled at Wal-Mart
pharmacies in Florida.
http://www.npr.org/templates/story/story.php?storyId=6326035
Analyze
Resources
Step 4
Reassess
Developing the Strategic
Marketing Plan
(Strengths,
Weaknesses)
Mission
Statement
Step 1
Formulate
Goal
Analyze
Environment
(Opportunities,
Threats)
Strategic
Marketing
Planning
Process
Step 3
Implement
Step 2
Develop
Strategy
1. Segment the market
2. Select a target market
3. Position your product
SWOT Analyses
Strengths, Weaknesses,
Opportunities, Threats
SWOT analyses
Each SWOT is unique.
Require a clear understanding of
the competition. Elements of
SWOT are framed in comparison
with competitors.
A location is a strength as it
compares with competitors. A threat
occurs within the context of
competitors.
Capability assessment
Strengths (S)
Weaknesses (W)
Strengths or weaknesses of
your organization
 People/skills - Availability and training of
personnel that give you an advantage
 Money - Availability of $ to finance initiatives
 Systems - How well designed, organized, and
coordinated is your system?
 Facilities - Availability and condition
 Market assets - Image/reputation in the eye of
the customer. Degree of market leadership.
Analyze the market
environment
Opportunities (O)
Threats (T)
Opportunities
What needs are not being met in
the marketplace?
Can we meet these needs better
than our competitors?
How is the environment changing
to our advantage or disadvantage?
Threats
What potential problems might threaten
the success of the firm initiatives?
What potential new competitors may
arise? How might the firm’s current
competitors respond?
What changes may be occurring in the
environment to make your product or
service obsolete?
Threats
How might governmental policies,
changing customer demographics, or a
recession affect your firm’s product or
service?
How might changes in customers’ tastes
affect customer demand?
What major trends will significantly
affect your firm and the market?
Retail clinics –
Threat
or
opportunity?
Medicare Prescription
Drug Benefit (Part D):
Threat or
opportunity?
Identifying opportunities and
threats in markets (Porter)
Level of rivalry between competitors
Ease with which competitors can enter
market
Power of suppliers (e.g., pharmacies)
Power of customers (e.g., PBMs)
Availability of substitutes
Summary -SWOT is used to answer:
Does the company have a distinct
advantage in the current market
environment upon which a strategy
can be built?
Do weaknesses make the company
vulnerable to competitors or
disqualify it from pursuing certain
opportunities?
Strategy Formulation
The plan to
achieve
marketing goals
and objectives
Analyze
Resources
Step 4
Reassess
(Strengths,
Weaknesses)
Mission
Statement
Step 1
Formulate
Goal
Analyze
Environment
(Opportunities,
Threats)
Strategic
Marketing
Planning
Process
Step 3
Implement
Formulating goals, objectives,
and strategies
Goals: General outcome of anticipated
actions, e.g., “increase company profitability.”
Objectives: Quantify general outcome, e.g.,
“increase ROA by 10% by end of fiscal year.”
Strategy: Plan to achieve goals and
objectives.
How will you segment your market? (Ch.10)
What segments will you target? (Ch.10)
How will you position your product in the
market?
Positioning Pharmaceutical
Services
Goal -Develop a
clear, distinct,
and valued
image of your
mix in the
minds of
consumers.
Positioning, SWOT, and the
Marketing Mix
Using information from SWOT analysis,
Select a unique combination of 4 P’s
That meets your customers’ needs and
wants better than your competitors do.
All 4 P’s should act to provide a
consistent and powerful image of your
product or service.
Don’t become a commodity
Commodities are
products in which
consumers can’t
perceive any
difference, e.g.,
gasoline.
They are selected on
the basis of price and
location.
Brands and Branding
A brand is a
name, term,
sign, symbol, or
design that helps
identify a
product or
company.
Branding
attempts to get
consumers to
assign meaning
to a brand.
TIP
Your personal brand
is your name.
Keller, Kevin Lane. “Conceptualizing, Measuring, and Managing
Customer-Based Brand Equity.” Journal of Marketing.
57(January 1993). 1-22. (Adapted)
Brand
Recall
Brand
Awareness
Brand
Recognition
Keller, Kevin Lane. “Conceptualizing, Measuring, and
Managing Customer-Based Brand Equity.” Journal of
Marketing. 57(January 1993). 1-22. (Adapted)
Types of
Brand Associations
Favorability of
Brand Associations
Strength of
Brand Associations
Uniqueness of
Brand Associations
Brand
Image
Customer
Experiences with
the Marketing Mix
•Price
•Promotion
•Place
•Product
Customer
Experiences from
Others
•Word-of-mouth
recommendations
•Press and other
media coverage
Brand
Awareness
•Recognition
•Recall
Brand Image
•Types of
associations
•Favorability
•Strength
•Uniqueness
Brand
Equity
Problems faced by pharmacists in
changing their brand’s image
The image of pharmacists is
controlled by others.
Pharmacists are unwilling to
exert the effort.
Pharmacists don’t know how.
Implementing the Plan
Problems in implementation:
Insufficient management
commitment
Lack of staff commitment or
expertise
Lack of or poor information
Structural contradictions
Overextension
Final Step: Reassess
Evaluate marketing success
and ways to improve.
Conclusion
Students and pharmacists should
know how to develop a strategic
marketing plan.
Clerkship
Practice
Career planning
Questions?
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Chapter 8 - Strategic Marketing Planning