PRACTICE MARKETING COURSE NAME: Practice Marketing & Pharmacoeconomics COURSE CODE: PHCY 485 SEMESTER: Spring 2010 - 2011

INTRODUCTION TO MARKETING MARKETING IN GENERAL: Directing the flow of goods and services from producer to the consumer. MARKETING ACTIVITIES are Product planning, Determining Prices, Advertising, Selling, Distributing Products to consumers, Servicing the products after sales, paying continuous attention to customer’s needs, identifying and interpreting those needs (customer analysis).

Why study marketing? Offers many career opportunities like, Advertising, Sales, Product Management, Retail Store Management and others. The study of marketing principles can help become more productive, valuable co-workers when work for business organizations If you are planning to start your own business, marketing is the name of the game and you must understand it to be successful. When you look for a job, you will be engaged in marketing yourself and the marketing principles and skills will help you achieve the goals you have set for your career

Knowledge of Marketing will also help you become a more knowledgeable consumer by understanding the marketing practices that influence your purchases. WHAT IS A MARKET? A group of potential customers that may want the product offered and that have the resources, the willingness, and the ability to purchase it. CONSUMER MARKET: Market consisting of buyers who use the product to satisfy personal or household needs.

ORGANIZATIONAL MARKET, OR BUSINESS MARKET: Market consisting of buyers who use the product to help operate a business or for resale. MARKET SEGMENT: A portion of a larger market, identified according to some shared characteristic or characteristics. Dividing a heterogeneous market into segments is market segmentation. TARGET MARKET: The specific market segments toward which the organization aims its marketing plan.

Definition of marketing: The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives. EFFECTIVE MARKETING involves using the resources of the entire organization to facilitate exchanges between the marketer and the customer so that both parties are satisfied. Revenues satisfy the marketer’s objectives.

THE MARKETING MIX: Marketing mix is the specific combination of interrelated and interdependent marketing activities in which an organization engages to meet its objectives. The basic elements of marketing mix are Four Ps of marketing:- 1) Product 2) Place (Distribution) 3) Promotion 4) Price

The four Ps are the controllable variables of marketing which can be controlled and manipulated by the marketer. The uncontrollable variable of Marketing: The force or influence external to the organization and beyond its control. Uncontrollable variables affect both consumer’s behavior and organization’s development of effective marketing mixes. For example:- Inflation, shortages of materials, high land prices, changes in social values and lifestyles, social trends, government regulations. These environmental forces will affect the consumer behavior and the marketing mix.

Marketing sophistication can be judged in terms of whether an organization is production oriented, sales oriented or marketing oriented. Production orientation: Organizational philosophy that emphasizes physical production and stress developments in technology rather than sales or marketing- manufacturing high quality products as much as possible. They do best in a seller’s market, in which demand exceeds supply. Sales orientation: Organizational philosophy that emphasizes selling existing products, whether or not they meet consumer needs, often through aggressive sales techniques and advertising.

Sales orientation emphasize short run increases in sales of existing products by changing consumers’ minds rather than long- run profits. Aggressive sales and advertising efforts to maximize sales volume- Push strategy- when supply exceeds demand. Marketing orientation: Organizational philosophy focused on learning customers’ needs and offering superior customer value. Makes profit through satisfaction of actual and potential customer needs- consumer orientation, profit orientation, and integrated marketing. Consumer wants must be considered in terms of cost and profit goals.

The foundation of market orientation is the marketing concept. MARKETING CONCEPT is the idea that organizations should focus on satisfying consumers’ wants and needs. The marketing concept stresses consumer orientation, long range profitability, and the integration of marketing and other organizational functions. Total Quality Management (TQM): A management principle that seeks to instill the idea of customer driven quality throughout the organization and to manage all employees so that there will be continuous quality improvement.

Total quality management means everyone in all parts of the organization places top priority on continuous improvement of customer-driven quality as well manufacturing’s orientation toward achieving lowest-cost productivity must be compatible with marketing’s commitment to offering high-quality products at an acceptable price. Societal Marketing Concept: Organizational philosophy that stresses the need for marketers to consider the collective needs of society as well as individual consumer desires and organizational profits.

Macro marketing: The aggregate of marketing activities in an economy or the marketing system of a society – the delivery of a standard of living to society. Micro marketing: The aggregate of marketing activities in a single firm.

PRODUCT – The first element of marketing mix. PRODUCT is a good, service, or idea that offers a bundle of tangible and intangible attributes to satisfy customers. The term product refers to what the business or non profit organization offers to its prospective customers or clients. The offering may be a tangible good, or service or an intangible idea. TOTAL PRODUCT: The wide range of tangible and intangible benefits that a buyer might gain from a product after purchasing it.

PRODUCT DIFFERENTIATION: A strategy that calls buyers’ attention to aspects of a product that set it apart from its competitors DURABLE GOOD: A physical, tangible item that functions over an extended period. NONDURABLE GOOD: A physical, tangible item that is quickly consumed, worn out, or outdated. SERVICE: A task or activity performed for a buyer; an intangible that cannot be handled or examined before purchase.

Consumer products: 1) CONVENIENCE PRODUCT: A relatively inexpensive, regularly purchased consumer product bought without much thought and with a minimum of shopping effort. 2) SHOPPING PRODUCT: A product for which consumers feel the need to make comparisons; seek out more information; examine merchandise; or otherwise reassure themselves about quality, style, or value before making a purchase.

ORGANIZATIONAL PRODUCT 3) SPECIALTY PRODUCT: A consumer product that is not frequently bought, that is likely to be expensive, and for which great care in purchase is likely. ORGANIZATIONAL PRODUCT A good or service that is used to produce other products and/or to operate an organization. 1) CAPITAL PRODUCTS: Installations and accessory equipment necessary to the manufacture of a final product. 2) PRODUCTION PRODUCTS: Raw materials, manufactured materials, component parts, and process materials.

3) OPERATING PRODUCTS: Convenience good include everything from janitorial services and machinery maintenance to the services of lawyers, accountants, and medical providers. PRODUCT LINE: A group of products that are fairly closely related. PRODUCT CLASS: A group of products that differ somewhat but perform similar functions or provide similar benefits.

PRODUCT MIX: All the product offerings of an organization, no matter how unrelated. In the pharmaceutical and healthcare industries, a complex web of decision-makers determines the nature of the transaction (prescription) for which direct customer (doctor) of pharma industry is responsible . Essentially, the end-user (patient) consumes a product and pays the cost .