NTA Level 6 • Semester 2 • PST06209

Concepts of Marketing in Sales of Pharmaceuticals

Entrepreneurship • Source Session/Topic 12

Full source-text version: all educational wording from the extracted learning source is retained; only presenter/tutor metadata and web-layout noise are removed, while formatting is improved for readability.

Session 12: Concepts of Marketing in Sales of

Pharmaceuticals

Total Session Time: 120 minutes and 4hrs for assignment

Prerequisites

• None

Learning Tasks

By the end of this session learners are expected to be able to

• Define market and marketing

• Describe marketing strategies

• Develop promotional material for given product

Resources Needed:

• Flip charts, marker pens, and masking tape

• Black/white board and chalk/whiteboard markers

• LCD Projector and computer

SESSION OVERVIEW

Activity/

Step Time Content

Method

1 05 minutes Presentation Introduction, Learning Tasks

2 15 minutes Presentation Definition of Market and Marketing

Buzzing

3 35 minutes Presentation

Marketing Strategies

Brainstorming

4 40 minutes Presentation Develop Promotional Material for Given

Product

5 10 minutes Presentation Key Points

6 10 minutes Presentation Evaluation

7 05 minutes Presentation Assignment

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

SESSION CONTENTS

STEP 1: Presentation of Session Title and Learning Tasks (5 minutes)

READ or ASK students to read the learning tasks and clarify

ASK students if they have any questions before continuing.

STEP 2: Definition of Market and Marketing (15 Minutes)

Activity: Buzzing (5 minutes)

ASK students to pair up and buzz on the following question for 2 minutes

• What is market and Marketing?

ALLOW few pairs to respond and let other pairs to add on points not mentioned

WRITE their response on the flip chart/board

CLARIFY and SUMMARIZE by using the content below

• Market

o An actual or nominal place where forces of demand and supply operate, and where

buyers and sellers interact (directly or through intermediaries) to trade goods,

services, or contracts or instruments, for money or barter.

o Markets include mechanisms or means for

 Determining price of the traded item.

 Communicating the price information.

 Facilitating deals and transactions.

 Effecting distribution.

o The market for a particular item is made up of existing and potential customers who

need it and have the ability and willingness to pay for it.

• Marketing

o Process of identifying and meeting human and social needs profitably

o It is a societal process by which individuals and groups obtain what they need and

want through creating, offering, and freely exchanging product and services of value

with other (Kotler and Keller, 2012.p.1).

o Management process through which goods and services move from concept to the

customer.

o It includes the coordination of four elements called the 4 P's of marketing:

 Identification, selection and development of a product.

 Determination of its price.

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

 Selection of a distribution channel to reach the customer's place.

 Development and implementation of a promotional strategy.

o For example, new Apple products are developed to include improved applications and

systems, are set at different prices depending on how much capability the customer

desires, and are sold in places where other Apple products are sold.

o In order to promote the device, the company featured its debut at tech events and is

highly advertised on the web and on television.

o Marketing is based on thinking about the business in terms of customer needs and

their satisfaction.

o Marketing differs from selling because (in the words of Harvard Business School's

retired professor of marketing Theodore C. Levitt) "Selling concerns itself with the

tricks and techniques of getting people to exchange their cash for your product.

o It is not concerned with the values that the exchange is all about.

o And it does not, as market invariable does, view the entire business process as

consisting of a tightly integrated effort to discover, create, arouse and satisfy customer

needs."

o In other words, marketing has less to do with getting customers to pay for your

product as it does developing a demand for that product and fulfilling the customer's

needs.

STEP 3: Marketing Strategy (35 Minutes)

Activity: Brainstorming (5 minutes)

Ask students to brainstorm on the following question:

• ―What are marketing strategies?‖

ALLOW few students to respond?

WRITE their responses on the flip chart/ board

CLARIFY and SUMMARISE by using the content below

• Marketing strategy is defined as a process that can allow an organization to concentrate

its resources on the optimal opportunities with the goals of increasing sales and achieving

a sustainable competitive advantage.

• Marketing strategy includes all basic and long-term activities in the field of marketing

that deal with the analysis of the strategic initial situation of a company and the

formulation, evaluation and selection of market-oriented strategies and therefore

contributes to the goals of the company and its marketing objectives.

o Marketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketing objectives.

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

o Plans and objectives are generally tested for measurable results. Commonly,

marketing strategies are developed as multi-year plans, with a tactical plan detailing

specific actions to be accomplished in the current year.

o Time horizons covered by the marketing plan vary by company, by industry, and by

nation, however, time horizons are becoming shorter as the speed of change in the

environment increases.

o Marketing strategies are dynamic and interactive.

o They are partially planned and partially unplanned.

o Marketing strategy needs to take a long term view, and tools such as customer

lifetime value models can be very powerful in helping to simulate the effects of

strategy on acquisition, revenue per customer and churn rate.

o Marketing strategy involves careful and precise scanning of the internal and external

environments.

o Internal environmental factors include the marketing mix and marketing mix

modeling, plus performance analysis and strategic constraints.

o External environmental factors include customer analysis, competitor analysis, target

market analysis, as well as evaluation of any elements of the technological, economic,

cultural or political/legal environment likely to impact success.

o A key component of marketing strategy is often to keep marketing in line with a

company's overarching mission statement

o Once a thorough environmental scan is complete, a strategic plan can be constructed

to identify business alternatives, establish challenging goals, determine the optimal

marketing mix to attain these goals, and detail implementation.

o A final step in developing a marketing strategy is to create a plan to monitor progress

and a set of contingencies if problems arise in the implementation of the plan.

o Marketing Mix Modeling is often used to help determine the optimal marketing

budget and how to allocate across the marketing mix to achieve these strategic goals.

Moreover, such models can help allocate spend across a portfolio of brands and

manage brands to create value.

• Types of strategies

o Marketing strategies may differ depending on the unique situation of the individual

business.

o However, there are a number of ways of categorizing some generic strategies.

o A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance

• In this scheme, firms are classified based on their market share or dominance of an

industry.

• Typically, there are four types of market dominance strategies:

o Leader

o Challenger

o Follower

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

o Nicher

Market introduction strategies

• At introduction, the marketing strategist has two principle strategies to choose from:

penetration or niche

Market growth strategies

• In the early growth stage, the marketing manager may choose from two additional

strategic alternatives: segment expansion or brand expansion

Market maturity strategies

• In maturity, sales growth slows, stabilizes and starts to decline.

• In early maturity, it is common to employ a maintenance strategy where the firm

maintains or holds a stable marketing mix"

Market decline strategies

• At some point the decline in sales approaches and then begins to exceed costs. And not

just accounting costs, there are hidden costs as well; as Kotler observed: No financial

accounting can adequately convey all the hidden costs.'

• At some point, with declining sales and rising costs, a harvesting strategy becomes

unprofitable and a divesting strategy necessary

Market segmentation

• Innovation strategies – This deals with the firm's rate of the new product development

and business model innovation.

• It asks whether the company is on the cutting edge of technology and business

innovation.

• There are three types:

o Pioneers

o Close followers

o Late followers

Growth strategies

• In this scheme we ask the question, "How should the firm grow?‖

• There are a number of different ways of answering that question, but the most common

gives four answers:

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

• These ways of growth are termed as organic growth.

o Horizontal growth is whereby a firm grows towards acquiring other businesses that

are in the same line of business for example a clothing retail outlet acquiring a food

outlet.

o The two are in the retail establishments and their integration lead to expansion.

o Vertical integration can be forward or backward

 Forward integration is whereby a firm grows towards its customers for example a

food manufacturing firm acquiring a food outlet

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

 Backward integration is whereby a firm grows towards its source of supply for

example a food outlet acquiring a food manufacturing outlet.

STEP 5: Develop Promotional Material for Given Product (40 Minutes)

• Promotional or marketing materials are advertising instruments given to current or

prospective customers for the purpose of creating awareness, knowledge on, positive

attitude towards, intention to use and purchase a product or services

• To meet the above objectives, the promotion materials must contain effective

communications: written messages (content), written source of message (credible source

of message) and creative strategy (how message is presented).

• Item such as a bag, calendar, cap, clock, diary, pen, brochures etc., given away to current

or prospective customer.

• Folder containing information about a firm or product; any sales promotion material that

helps a salesperson in winning new business

• It may contain audio or video tapes or CDs, demonstration material, models, sales

literature, samples, etc.

• Also called sales support material.

• A product promotion is an action taken by a company's marketing staff with the intention

of encouraging the sale of a good or service to their target

Developing promotional materials

• The process of developing effective promotional materials involves the following stages:

o Identification of target audience, audience determine the content and strategy of

communicating messages

o Determine the communication objectives: creating awareness, positive attitudes,

purchasing intention

o Designing the communication: creating message content, determining how expressing

message and who will deliver the message

o Select the communication channels: effective meaning of communication (personal-

phone, email, and mass communication channels)

Criteria for promotional or advertising materials

• Promotional or advertising materials have meet the following criteria:

o The message should be clear at a glance: you can quickly tell what the advertisement

is all about

o The benefits are clearly stated in the headlines

o There is an illustration to support the headline

o First line explains or supports the headline

o The promotional material is easy to read and follow

o Product or services easily identified

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

STEP 6: Key Points (10 Minutes)

• A market is an actual or nominal place where forces of demand and supply operate, and

where buyers and sellers interact (directly or through intermediaries) to trade goods,

services, or contracts or instruments, for money or barter.

• Marketing is the management process through which goods and services move from

concept to the customer.

• Marketing includes the coordination of four elements called the 4 P's of marketing

• Marketing strategies are organizations strategy that combines all of its marketing goals

into one comprehensive plan.

STEP 7: Evaluation (10 Minutes)

• What is market?

• What is marketing?

• What are the marketing strategies that can be used by an entrepreneur?

• What are examples of a promotional materials

• What are criteria for assessing promotional materials

STEP 8: Assignment (5 Minutes)

Activity: Take home Assignment (5 minutes)

DIVIDE students in groups or individual.

ASK the students to work on the following assignment

• Develop promotional material for given product

ALLOCATE time for students to do the assignment and submit

REFER students to recommended references

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

References

Buskirk, R. H (1994). The Entrepreneurs Handbook: Premier Entrepreneur Programs, Inc.

Denver, Co.

Charantimath, P. M (2006) Entrepreneurship Development Small Business Enterprises:

Delhi, India: Pearson Education,

Hisrich, R.D., Peters, M.P., & Shepherd, D.A. (2005). Entrepreneurship. (6th Ed.) Boston:

McGraw-Hill.

Kuratko, D.F., & Hodgetts, R.M. (2007). Entrepreneurship: Theory, Process & Practice. (7th

Ed.) USA: Thomson

Roy, R. (2011, 2008). Entrepreneurship. 2nd Ed. Oxford: Oxford University Press.

Stokes, D. & Wilson, N. (2002). Small Business Management and Entrepreneurship. (5th

Ed.) London: High Holborn House.

Zimmerer, T. W. & Scarborough N. M. (2008) Essentials of Entrepreneurship and Small

Business Management. (5th Ed) New Jersey: Pearson Education International

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PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide

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