HPLB 

MARKETING LECTURE (2) What do we mean by Price?

> MARKET PRICE -the price that an article brings

INTRODUCTION
when sold
MARKETING
(3) What is Promotion?
- A discipline that promotes the resolution of
problems by identifying and meeting the ADVERTISING -bring to public notice
needs of customers (patients)
(4) What do we mean by Places of Distribution?
- Exchanges between people of something of
PHYSICAL DISTRIBUTION - overall physical
value to satisfy needs and wants
activities in the flow of the drug products
- Key elements : (1) people value (2) needs
and wants (3)exchange - involves transportation, inventory, warehousing,
order processing to customer service
KEY ELEMENTS OF MARKETING
Every pharmacist is a marketer:
 People – concerned with human behaviour
 Value – not necessary tangible  Dispensing
 Needs and Wants – necessary for  Assisting patients
survival; desired but not essential  Counseling patients
 Exchange – something of value  Looking for employment
o Discrete exchange (transactional  Taking a patient’s blood pressure
marketing) ; wherein the seller would  Providing drug information
want to get as much and give as little  Recruiting pharmacists for a
as possible to the customers new job
o Continuous exchange (relationship  Educating studentwho are future
marketing) ; is building a long term pharmacists
relationship with the customer
COSTING
SOME MARKETING FUNCTIONS: (1) Selling (2)
Advertising (3) Marketing Research (4) Distribution  Mark-up method - Product cost + (product
(5) Pricing (6) Merchandising cost + mark-up)
 Professional Fee Method - Price + Prof. fee
ENTREPRENEURSHIP  Sliding Scale Method or Scaling Method
-Best method of optimizing pricing to meet
- It is willingness to start a new business.
demands
- It has played a vital role in the economic
- Overcomes both disadvantage of Mark-up
development of the expanding global
method and Prof. fee method by using
marketplace.
variables mark-up percentages or
ENTREPRENEUR professional fee to calculate Rx products.

- It is someone who is willing to work for INVENTORY - the largest asset of a pharmacy
himself and by himself.
Types
- Seen and perceived as a n innovator
- Must have the quality of leadership and A. Acquisition Cost - Amount the pharmacy
strong sense of unified teamwork pays for the product
B. Carrying Cost - All cost associated
PHARMACEUTICAL MARKETING
with maintaining the inventory
- Process by which market for C. Procurement Cost - Cost of ordering and
pharmaceutical care is actualized receiving goods
- Promoting new ideas D. Stock-out Cost - Cost associated with being
- Includes application through Case out of an item a patient needs
study Methods A. PURCHASING - Depends of demand and
- Deals with concepts, theories and principles season
of marketing such as; (1) Product (2) Price B. in BID PROCESS - Most widely used
(3) Promotion (4) Place of distribution for products available from multiple
(1) What are these Products? sources
- anything that can be offered in the market C. Formulary Management - Used in hospital
that might satisfy a need or want setting
MEDICINES D. Generic and Therapeutic
- chemical or biological substance intended for Interchange
use in treatment, prevention or diagnosis of
disease