Chapter 11 Marketing Communication Chapter 11 slides for Marketing for Pharmacists, 2nd Edition

Chapter 11Marketing

Communication

Chapter 11Marketing

Communication

Chapter 11 slides forMarketing for Pharmacists, 2nd Edition

Learning ObjectivesLearning ObjectivesDiscuss 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 CommunicationsPromotional 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

Purpose of promotional communications

To informPrescription 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 messagePromotional message

Should be based onCompany missionSWOT analysisThe other P’s of the marketing mix

PromotionPromotion

Promotion must have a clear message.Develop clear company image/identityInvolves 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 namesActual company names

Cheap-Online-Pharmacy.org CostcoMedicine ShoppeCVSGood Neighbor PharmaciesHinky Dinky Pharmacy

“Winn-Dixie division ties

turkey sales to 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 Winn-Dixie 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

Figure 11-1: Elements of promotional communications

Promotion ActionConsumer

The Communication Model

The Communication Model

All communications

follow this simple

model.

TIP Tailor messages to

thesituation.

SenderSender ReceiverReceiverMediumMedium

ReceiverReceiver

ReceiverReceiver

EncodingEncoding DecodingDecoding

FeedbackFeedback

The Communication Model

Information Processing 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.

TIP The message can

be lost at any point.

Barriers to communication

Barriers to communication

Selective attention1600 commercial messages per day80 messages consciously noticed12 provoke some reaction

Some advertisers try anything to get your attention.

Barriers to communicationBarriers to communication

Selective distortionTwisting message to hear what

you want

Selective recallCommitting message to long-

term memory

InformatioInformation n ProcessinProcessing Modelg Model

Action Taken in Response to the Message

Retention of the Message in Memory

Acceptance of the Message

Comprehension of the Message

Attention to the Message

Exposure to the Message

Message SentThrough a Promotional Medium

Important points about the information processing

model

Important points about the information processing

modelMessage 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

Avoiding miscommunication

Use messages that are…SimpleClearInterestingRepeated

PromotionalMethods

Marketer Controlled Marketer Influenced

Advertising(e.g., magazines, TV)

Personal Selling(e.g., detailing)

Direct Marketing(e.g., telemarketing, mailings)

Promotional Sales(e.g., sampling, coupons)

Public Relations(e.g., press releases, events)

Buzz Promotion(e.g., cultivating thought leaders)

Options for promotionOptions for promotion

Marketer controlledMarketer controlled

The message, medium, and delivery are directly

managed through the payment of money.

AdvertisingAdvertising

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 strategiesService advertising strategies

Present services more tangiblyIncorporate 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)

Service advertising strategies (continued)

Demonstrate the customer’s participation in the service processPresent pharmacist and patient in

promotions.Provide documentation to demonstrate

the consistent quality of services98% satisfaction (we’re working on other

2%)Awards for excellence

Service advertising strategies (continued)

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 SellingPersonal Selling

Personal written or oral presentations to customers as individuals or groupsE-mail, telephone call, presentations

Immediate, interactive, and hard to ignore.Personal relationships are cultivated.Unlike advertising, messages often require

response.

Personal sellingexamples

Personal sellingexamples

Patient counselingPhoning physicians to

get them to change a patient’s therapy

Hospital in-service programs for nurses

Hospital grand roundsBrown bag meetingsCounterdetailing

5-step personal selling process

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 SpeechElevator Speech

• A short, scripted

speech designed to

promote something

in the time it takes

to ride an elevator.

Example of elevator speech

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 MarketingDirect Marketing

Individualized nonpersonal communication

Nonpersonal because communications standardized, mechanized to names on list

More efficient than personal selling but less effectiveImpersonalLess credible

Direct Communications•Newsletters•Direct mailings•Coupons and deals•Telephone callbacks•Automatic Rx refills•Targeted magazines•E-mail messages•Referrals to local MDs•Salesman visits•Educational videos•Free samples•Screenings•Support groups•Free classes

Contact

Telephone800 #’s

Existing Customers•Loyalty Cards•Scanner Data

DatabaseCompanies

CustomerDatabase

CustomerSurveys

InternetWeb sites

Coupon andSample

Redemptions

Sales Promotion

Sales Promotion

Messages used to promote quick sale not included abovePrice 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 promotionSales 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 InfluencedMarketer Influenced

Marketer attempts to indirectly influence the

actions of impartial parties who are independent of

marketers.

Public RelationsPublic Relations

Public relations encompasses a broad range of activities associated with the process of building a positive image and goodwill with the public. LobbyingGovernment relations Media relationsPublicityCommunications with constituentsPublic appearances with groupsCommunity relations

Goal

Assessing Goodwill

InfluencingGoodwill

Goodwill

AwarenessHave you heard about us?What can you remember?

ImageWhat images come to mind?

How favorable are those images?How strong are those images?

Do those images clearly distinguish us from others?

Experiences through Personal Relationships

Experiences Described by Others

Press and Media Coverage

Paid Promotional Communications

GoodwillGoodwill

AwarenessHave you heard about us?What can you remember?

ImageWhat images come to mind?

How favorable are those images?How strong are those images?

Do those images clearly distinguish us from others?

Experiences through Personal Relationships

Experiences Described by Others

Press and Media Coverage

Paid Promotional Communications

Goodwill

AwarenessHave you heard about us?What can you remember?

ImageWhat images come to mind?

How favorable are those images?How strong are those images?

Do those images clearly distinguish us from others?

Experiences through Personal Relationships

Experiences Described by Others

Press and Media Coverage

Paid Promotional Communications

GoodwillGoodwill

AwarenessHave you heard about us?What can you remember?

ImageWhat images come to mind?

How favorable are those images?How strong are those images?

Do those images clearly distinguish us from others?

Experiences through Personal Relationships

Experiences Described by Others

Press and Media Coverage

Paid Promotional Communications

PublicityPublicity

Any nonpaid attempt to get favorable coverage by the news media or prevent nonfavorable coverage

Public RelationsPublic Relations

Can be relatively inexpensive if it is do-it-yourself.

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)

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?How does buzz work?

Buzz starts with…..Buzz starts with…..

Try ThisNew

Thing!

A messageAn opinion

leader

Characteristics of a buzz-worthy messageCharacteristics of a

buzz-worthy message

Evokes an emotional responsePersonally relevantMeets an unmet desire (i.e., new)Clearly superior to what is currently

availableConsistent with current belief systemsVisibleHas a good story

Characteristics of opinion (a.k.a. thought) leaders

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?How does buzz spread?

Buzz spreads like an infection through networks

of people.

Buzz spreads like an infection through networks

of people.

Arousing buzzArousing 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 MediumChoosing a Medium

Complicated message – TV or newspaperEmotional 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

Developing a Promotional Plan

Requires understanding

of product, customers,

competitors, price, and

target market

Four stepsFour 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

1. Define the goal of promotion

Based on positioning statemente.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

2. Define message and promotional strategy

Solving four problems:What to sayHow to say it in wordsHow to say it in picturesWho should say it

When designing message and strategy:

KISS

Be sincere; be brief; be seated.Be sincere; be brief; be seated.

Franklin Delano Roosevelt

3. Select a communication mix3. Select a communication mix

Depends onMessage (e.g., complex, simple)Effectiveness in comparison with other

mediaAbility to individualize messageNeed for two-way communication Ability to reach one’s target marketCost

4. Assess effectiveness4. 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

SummarySummary

Match media to the message.Integrate promotion with overall

marketing strategy and business objectives.

Be clear about the purpose of your communications.

Questions?Questions?