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1.Define marketing and describe its
contributions.
2. Differentiate among the concepts of
needs, wants, and demands.
3. Define the concept of exchange and
state its importance to marketing.
4. Describe the marketing mix and apply it
to the marketing of services.
“marketing is an organizational function
and a set of processes for creating,
communicating and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.”
 four P’s of the marketing mix (i.e., product,
price, place (distribution), and promotion)
 marketing is about more than selling
products.

six competing concepts that organizations
use as guides in the conduct of marketing
activities.
 The product concept focuses on making
good products, often as defined in the eyes
of the producer, and improving them over
time. “If you build it, they will come.
 The key assumptions about buyers are that
they appreciate well-made products and
that they can evaluate product quality

The selling concept emphasizes actions
directed at stimulating consumers’
interest through aggressive sales and
promotion efforts
 managers guided by the selling concept
assume that consumers must be coaxed
into buying products (or services)
 little concern is given to customers’
needs, wants, and post purchase
satisfaction

The marketing concept holds that “the
key to achieving its organizational goals
consists of the company being more
effective than competitors in creating,
delivering, and communicating superior
customer value to its chosen target
markets
 A company guided by the marketing
concept takes care to select
appropriate target markets

customer concept suggests that
companies direct separate offers, services,
and messages to individual customers
 Increases in market diversity, changes in
technology, and the need for enhanced
marketing productivity have led to this
 focus on individual customer needs,
sometimes leading to customization of the
product or other elements of the marketing
mix

Societal marketing concept, which
“holds that the organization’s task is to
determine the needs, wants, and
interests of target markets and to deliver
the desired satisfactions more effectively
and efficiently than competitors in a way
that preserves or enhances the
consumer’s and the society’s wellbeing.”
 deterioration of the environment,
resource shortages, poverty, and
neglected social services called for it

Needs
 need is a state of felt deprivation.
 Needs are basic human requirements.
 People have physical needs (e.g., food,
clothing, and shelter), social needs (e.g.,
the need for affection and the need to
belong), and individual needs (e.g., the
need for self-expression).
 From the health economics literature, need
is defined as “the amount of medical care
that medical experts believe a person
should have to remain or become as
healthy as possible, based on current
medical knowledge
Want
 want is a desire for a specific satisfier of a
need
 needs become wants, and these wants
are shaped by culture and individual
personality
Demand
A demand is a want that is backed by an
ability to pay.
One problem faced by health care
providers is that people often do not
want their goods or services. This situation
is called negative demand and
pharmaceutical products often are
labeled as negative goods

The job of a marketer (and the job of a
health care professional as well) is not
only to understand and respond to
people’s expressed needs but also to
help customers learn more about what
they need and want.
Exchange is the “core concept of
marketing.”
 An exchange is a process of obtaining a
desired product from someone by
offering something in return
 It is one of four ways to obtain a product,
the others being self-production,
coercion (or force), and begging
 A transaction is a trade of values
between two or more parties

Services , ideas, experiences, events,
places, material, organizations, effort,
and information all can be items of value
in a transaction
 In a transfer, one party gives an item of
value to another party while receiving
nothing tangible in return
 The giving party often expects
something in return, such as gratitude, a
change in the recipient, a positive
feeling, or even a tax deduction.
A marketing mix is a set of tools an
organization uses to pursue its objectives
with respect to its target market.
 tools of the marketing mix :product,
price, place, and promotion
 positioning often is included as a fifth P.

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Product
Product refers to an organization’s offering
In the delivery of pharmaceutical care, the
product most often provided is a service
Marketing myopia is often a result of the
application of the product concept as a
philosophical guide to marketing activities.
Another problem related to marketing
myopia occurs when a single product
becomes an organization’s reason for
being.
Price
 A producer should set a price after
considering several variables, including
the cost function (i.e., the cost of
producing, distributing, and selling the
product, including a reasonable return
for effort and risk), competitors’ prices,
and the demand for the product
(including the target market’s
perception of the benefits)
 To a consumer, price is what is given up
or sacrificed to obtain a product

Place
 Place, or distribution, refers to any activity
designed to create utility by having the
product available when and where
targeted customers want to buy it.
 overnight delivery, telecommunications,
and the Internet, speed and convenience
are important elements in determining the
distribution strategies of many firms
 For a pharmacy, place may refer to
providing a private area for counseling and
providing other professional services .

Promotion
Promotion activities seek to inform, remind,
and persuade the target market about
an organization and its offerings
While advertising may be an important
promotional tool, other tools in the
promotion mix include sales promotion,
public relations (including publicity),
direct marketing, and personal selling.
MTM services, promotion plays an essential
role in the translation of needs into wants
and demands.

Positioning
 Positioning is “the act of designing the
company’s offering and image to occupy
a distinctive place in the mind of the target
market”
 Positioning is about what a marketer can
do to the mind of the target consumer

marketing management process should
be a basic component of any pharmacy
practice.
 A marketing management process has
three essential steps:
(1) evaluating a market for opportunities,
(2) planning and developing marketing
strategies and tactics
(3) implementing and controlling the
marketing effort

Evaluating a market involves
consideration of both a macro
environment and a microenvironment
 A macro environment refers to forces
that affect the parties in a market and
encompasses five sectors: competitive,
economic, technological, social, and
regulatory

SWOT Analysis
 A stakeholder is anyone who can affect the
success of the practice
 A SWOT analysis assesses the internal
strengths and weaknesses of the pharmacy
in context with the opportunities and threats
that may exist in its external environment
 A SWOT analysis can help to identify likely
opportunities, assist in eliminating poor
opportunities, guide choices of marketing
targets, and help in allocating scarce
resources to marketing efforts.

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