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?