RxGenius

Marketing 101

As a Pharmacist, “Marketing” is not something they taught in Pharmacy school.  As a business person, you have either used a ‘learn as you go’ or have been forced to hire a marketing company. You need to ensure that the technologies you select include marketing tools.  I advise Pharmacies to be wary of marketing companies that charge you for what is, pretty much, a common sense approach; but one that you simply don’t have time to focus on.

A Bit of Marketing Theory

It only takes a little theory practiced and applied – and soon you will find that marketing is part of your daily routine. Marketing is more than sales – it is a set of activities used to:

• Get your potential customer’s attention.
• Differentiate yourself from the competition with special sevices/products.
• Motivate your potential customers to buy.
• GET them to actually buy. *Recognize and reward your best customers, to keep them. *Attract new customers based on your unique branding and services.

Marketing is how you define your Pharmacy, products, promote your products, distribute your products and services, and maintain a positive relationship with your customers.

The ‘theory’ of Marketing is made up of only a few main concepts..  Each contributes to your ‘marketing mix’.  There is usually not a ‘single’ marketing concept that is a complete success; it is a combination of efforts. 

Product: Product is, of course, the service and/or products that you have to offer to the customers. There are a number of things about the product you should evaluate.  It is important to understand your product and service from the customer’s point of view.

Product Description: It is critical to be able to say in one clear sentence, why your product and service is perfect for a specific customer/patient; and what it does best.

Product Name: It is more important to be descriptive than creative. There are some exceptions to this – such as working in ‘the arts’.

Functionality, Features & Benefits: In order to begin to understand the product and service from a customer’s point of view, list the functionality, features and the benefits that the product/service has.  Prioritize each for the target market or market segments to determine the development as you go forward.   

Product/Service Adaptability: By understanding how adaptable your technology is, you can incorporate the necessary elements into your marketing.

There are six factors for measuring how ‘adaptable’ your product/service is:

1. Relative advantage of the product/service: How superior is the innovation to the product/service or other problem-solving methods it was designed to compete against? Will it offer automated and cross-over functions?
2. Compatibility: Does it fit with current product/service usage and customer activity? Can you easily identify the best customers? Can you develop tools to bring new customers in?
3. Complexity: Will confusion arise in understanding the innovations basic idea?
4. Divisibility: How easily can trial portions of the product/service be purchased?
5. Communicability: How likely is the product/service to appear in public places where it is easily seen and studied by potential users?  Are you offering the same products/services that can be found elsewhere at lesser costs?
6. Labor Intensive: Is the product/service creating a situation that requires repeating previous procedures, yet expecting a difference in results?

A little ‘common sense’ goes a long way!

Karen Sulprizio
Email Me or Call Me: 1-866-312-8324

Thinking Outside The Pill Bottle

Smart independent pharmacies have taken the initiative to not only think about analyzing their business model – but taking action as well!

A Complete Miss: A recent trend of some independents has been to add ‘gift card’ only programs. Although there is a market for these things, the holiday season was a perfect ground to show that every retail store, from the mass market chains to card stores carried the same cards. The turnstiles carrying the well known titles were in every entrance of every store imaginable. This was another marketing mistake – as there was nothing unique or different for the independent pharmacy.

Taking The Signal from the Chains:  These companies invest in what works – and what is profitable. They stay within the guidelines of health and wellness.  Longs Drugs has committed $225,000 to the California Governor’s Council on Physical Fitness and Sports. The funds will be used to sponsor regional awards, Front Runner Recognition awards and their ongoing Activity Guide. 

CVS has had a long and successful loyalty marketing program with the knowledge that they are keeping their existing customers and attracting new ones.  The program has done so well that they are taking it to the next level.   Raleigh-based Kerr Drug has health-care centers in about 16 of the approximately 160 stores it has in the Carolinas. They plan to add more. Customers can get one-on-one diabetes education, flu shots and wellness assessments in those centers. CVS, Walgreens and Rite Aid have similar programs and are looking to offer more nationwide. 

Independents Need to Differentiate:  ‘Not just your average pharmacy’ should be the motto of each Independent.  Those that are flourishing have added integrative medicine products that are not usually found in the chains.  Informative and health oriented websites, combined with their own uniquely branded Loyalty programs have added credibility to these pharmacies.  Keeping in contact with the patients with wellness e-newsletters and e-mail communiqués containing product information and coupons have given these Independents a refreshing new edge.

Independent pharmacies need to have the resources to market their Pharmacy, products and services in today’s economy for today’s customer and patient. 

Smart Marketing: We always offer a word of caution in paying a marketing company for information that is really ‘common sense.’   You shouldn’t have to attend a 2-day seminar or any other lengthy, expensive program to prove that you are spending your money wisely.  You should be working with technologies that include automated marketing tools as ‘part’ of the service. The ‘key’ concept is simple: recognize, reward and keep your best customers and develop unique branding with services and products that attract new customers.    

Offer Health & Wellness Products:  Existing customers and patients are spending their dollars on vitamins, supplements and integrative medicine.  The independent pharmacy is in the best position to offer higher quality products – than those found at the usual mass chain pharmacies.   You are one of the top resources for your patients for their wellness needs. 
Your customers will thank you and your margins will be higher.

Karen Sulprizio
Email Me or Call Me: 1-866-312-8324