Dr. Nelson T.

Tubon
Exercise 14

Selecting A Location
And Positioning The
Pharmacy
Key Terms
Convenience goods goods a customer usually
purchases frequently, immediately, and with a
minimum of efforts Examples: candy bars,
cigarettes, and deodorants

Shopping goods usually means high unit price

purchased infrequently, more intensive selling effort
required on the part of the sales people, price and
features compared, and sold in selective outlets.
Examples:humidifiers, glucometer, and BP
apparatus
Key Terms
Specialty goods usually means high unit price,
purchased infrequently, requires a special effort on
the customer to make the purchase, no substitutes
considered, and sold in exclusive outlets. Are
designed jewelry, name-brand time pieces, and
certain imported goods

Retail drugstore outlets selling pharmaceutical

product in retail to consumers or end users
 Key Terms
Independent drugstore It is defined broadly to
include those establishments that are privately owned
and whose function, in varying decrees, is to serve
societys need for both product and pharmaceutical
services. The owner or operator of a drugstore need
not be a pharmacist although the license to operate
requires a duly registered pharmacist per store outlet

Competitive advantage strategies/tactics in order

to keep competitors off-balance and to communicate
effectively and delivers the chosen positioning in the
target market
 Key Terms
Positioning - refers to the attributes or
characteristics and purchaser criteria which are
perceived by the customers. Positioning means
finding a market or submarket where your product can
be leader or dominant player in the industry or market
place. Also known as market niching or unique selling
proposition

Community shopping drugstore usually consists

of 15 to 50 stores with an emphasis on both
convenience and shopping goods, and trading area of
about 10 to 20 minutes driving time from the center.
 Possible competitive advantages for a
pharmacy
A. Prescription drugs
Availability of medications to provide fast
dispensing
Availability of generic drugs
B. Front-end merchandise
Assortment of merchandise stocked
Selling a few grocery items
Novelty gift items not available elsewhere
Trendy merchandise
Seasonal merchandise
C. Prescription services
Speed dispensing
Frequent filler program
Offering trial doses
Patient counseling
Processing third-party claims
Emergency prescription dispensing
Information sheets on medication usage
Records for tax purposes
Maintenance of patient profile
D. Nonprescription services
Speed of service
Counseling of non prescription
medications
Relationships with care givers
Money-back guarantee
Return policies
Special seminars
E. Prescription and nonprescription services
Competitiveness
Special discounts
Cut rates on selective front-end
merchandise
Credit
F. Distribution
Convenient location
Pharmacy hours
Delivery service
Telephone and mail orders
G. Promotion
Uniqueness of advertisements
Big-prize giveaways
Sidewalk sales
Tie-ins with prescription drug purchase
Contests
Colorful shelf talkers
Attention-grabbing point-of-purchase
displays
H. Personnel
Courtesy
Friendliness
Knowledgeable
Helpfulness
Accuracy
Follow-up
1. Why is a location one of the most important decisions facing
a pharmacy owner?

A good location is one of the most important factors

for pharmacy success, partly due to its relatively
lasting effect.
2. What are the alternative location choices within a community?
Major factors to consider in choosing a pharmacy location include
selection of the community, choice of a location within the community, and
selection of specific site.
Sources of information about locations include chambers of commerce,
bankers, real estate brokers, and professional consultants.
Key factors to consider in selecting a community include characteristics
pertaining to population, competition, labor, transportation, economics,
material availability, government, financing, location and media
3. What are the major questions to be answered
regarding a pharmacys trading?
a. What community has the greatest opportunity
for the particular type of pharmacy under
considerations?
b. What area within a community indicates strong
potential for growth?
c. What specific site within the area of the
community meets the requirements of the
particular pharmacy?
 4. What is retail compatibility?

Retail compatibility can be the most

important factor in the survival of stores in a
shopping center.
5. Why is it necessary for pharmacies to develop a
positioning strategy?

Pharmacy owners must recognize that people have

different needs and are therefore attracted to
different offers. In other words, a pharmacy has to
have a positioning strategy. A position is the way
the pharmacy is defined by patrons on important
attributes the place the pharmacy occupies in
patrons minds relative to competing pharmacies.
 6. How do traffic counts contribute to the selection of
pharmacies? And what are the advantages and
disadvantages of a planned shopping centers?
A pedestrian or automobile traffic count may be desirable in
deciding on a specific site.
Pedestrian traffic is closely related to whether the goods are
convenience goods, shopping goods, or specialty goods.
There are 3 types of planned shopping centers; neighborhood
centers, community centers and regional centers
The right tenant mix in a shopping center is essential to the
individual retailers and centers success.
Shopping centers rental and lease agreements should be
reviewed with the advise of expert
Exercise 16

Organizing and Staffing

of Pharmacy
KEY TERMS

1. Committees is another common

organizational form used in situations where
group participation and decision are required
2. Delegation of authority - the right to make
decisions, carry out actions and direct others
3. Delegation of work The assignment of
part of a managers work to others.
Line organization this is the simplest form of
structure and refers to a straight-line responsibility
and control from the top management to the middle
management and to the lower level
Line and staff This utilizes the assistance of experts
or specialist.
Organizational chart is a diagram or drawing
showing the important aspects of an organizational
structure. It shows the relationship among positions
as to authority, responsibility and accountability, and
the people who occupy them
Accountability This is the answerability of the
obligation to perform the delegated responsibility and
to exercise the authority for the proper performance of
the work.
Organization it is the framework or backbone by
which the work of a business, managerial or
otherwise, is performed, that it provides the required
channels, points of origin, and flow of management
direction and control
Departmentation - results from the grouping of work,
the desire to obtain organization units of manageable
size, and to utilize managerial ability.
Job description the specification of tasks
activities associated with particular job
Unity of command this refers to the
arrangement in an organization where there is
a chain of authority in which every member
knows to whom he reports and who reports to
him in turn
Span of control this refers to the number of
people a manager can effectively control and
manage.
Employee recruitment this is pooling of job
candidates to match the human resources plan of the
organization.
Unity of command command must be established for
every worker s.
Unity of direction each employee should have a clear
understanding of, and willingness to work for, the
goals of the business
Scalar chain rests at the top and flows downward.
Questions
1. Discuss the importance of an organizational structure for a
pharmacy.

A proper organizational structure will help a pharmacy survive by

ensuring that tasks are completed and a foundation is laid for
future growth
1. What relationship exists between authority and responsibility?
Responsibility this is the work or duty assigned to a particular position
Authority It refers to the power or right to be obeyed.
1. Name some common sources for potential employees
a. Employees of the pharmacy or parent company
b. Referrals
c. Employees of other companies
d. Employment agencies
e. Educational institutions
f. Labor unions
g. Advertising
h. Drop-ins
1. What steps should be considered by the pharmacist/drugstore owner in
selecting the most qualified applicant for the job?
1. Reception of applicants
2. Preliminary interview
3. Application form
4. Employment test
5. Final selection by immediate supervisor or department head
6. Physical and Medical Examination
7. Hiring
8. Orientation/Induction/Indoctrination
1. A. Branch Pharmacist- all
A. Assistant Pharmacist all
B. Sales clerk all
The basic organizing process
1. Define the goals of the pharmacy
2. Identify and define each task to be completed
3. Group related tasks into jobs that can be assigned to an employee
4. Group the jobs into units that are related in some manner
5. Assign a manager to each unit and provide the manager with necessary
authority and responsibility to complete the jobs within the unit
6. Arrange these units relative to one another, both horizontally and
vertically (establish who reports to whom)
7. Establish a control system for measuring the progress and
achievements of each group.
The Basic Staffing Process
1. Based on the objectives and level of business activity, forecast future personnel
needs in terms of both numbers and type of position
2. Based on the pharmacy owners personal goals, determine how many
management positions will be needed in the future and in what service areas.
3. Specify each type of job
4. Assess the internal aspects of employment in terms of working conditions, policies
5. Determine where the right kind of potential employees might be found
6. Actively recruit good personnel by promoting job opportunities
7. Select persons for employment on the basis of a formalized screening process
8. Actively orient employees to their new positions
9. Train employees to do their jobs and develop them for any planned advancement
10. Develop wage and benefit programs that are fair to the employees and affordable
for the pharmacy
11. Motivate employees and evaluate their activities