Pharmaceutical Marketing

Chapter 7 PROMOTIONS MIX Decisions and Strategies

The Promotion Mix for Ethical Drug Products Drug

companies in promoting ethical drug products to physician, dentists and allied professionals use a variety of tools in their total promotion mix arsenal such as the ff: Sampling, detailing, specialty advertising in journals and newsletters, scientific symposia, for a medica, poster sessions highlighting medical breakthroughs

The Promotion Mix for Ethical Drug Products Drug

companies in promoting ethical drug products to physician, dentists and allied professionals use a variety of tools in their total promotion mix arsenal such as the ff: Sampling, detailing, specialty advertising in journals and newsletters, scientific symposia, for a medica, poster sessions highlighting medical breakthroughs

The Promotion Mix for Ethical Drug Products Drug

companies also make use Professional Service Representatives (PSRs) or medical representative deployed in various places of the country conducting regular visits and optimizing whatever promotional activities in accordance to company guidelines for certain products and for certain specialty

The Primary Target Markets  Promo

tools in the aforementioned are physicians and dentists who prescribe the ethical drug products to their patients either in hospitals, health centers, industrial clinics, or in their private practice.  Drug companies practically “ fight to the death” for a bigger share of the prescriptions market from within and outside the doctor’s clinics, employing creative and consultative salesmanship, public relations, immediate-impact communications, highly personalized services, and substantial ammunitions in terms of budgets, to support the various promo tools geared to achieve market

The Second Target Markets  Ethical

drug products are the pharmacists who dispense and endorse the prescription drug products to endusers in drugstores and hospital pharmacies.  With the advent of the revitalized Generics Law, the pharmacists in drugstores can make or unmake a prescription drug product depending on what is actually available in the store to serve or advice, provided to patients or end-users carrying a prescription by way

PROMOTIONS MIX FOR OTC/PROPRIETARY DRUG PRODUCTS   The

primary target markets for the OTC/proprietary drugs that require no endorsement or prescription fro physicians or d4ntists are the mass-based consumers of both sexes of various income strata, and psycho-social-cultural grouping.   The authority endorsers at the point-of-sales for OTC drug products in drugstores are none other than the pharmacists,

UNITED LABORATORIES, INC.  Conducts

a Continuing Pharmacist Education (CPE) Program to all the Philippine Pharmaceutical Association Chapter all over the country by way of providing highly-qualified resource speakers for such relevant topics as: Inventory management and Control, Merchandising and Product Displays, Effective Retailing, Personal Handling and many others. Materials, handouts, and other product giveaways are provided to further

PROMOTIONS-MIX OF WHOLESALERS AND BIG DRUGSTORE CHAINS  To

increase customer traffic and greater store patronage, the big drug outlets in the country conduct varied promotions activities and employ such promo tools as: attractive billboards/neon signs, modernized store fronts and interiors, creative merchandising and displays at the selling area and point-of-sale, sales promotions for consumers and drug outlet’s personnel, localized advertisement, free medical and dental consultations, sampling,

PROMOTIONS MIX DEFINED Promotions

mix is the specific mix of  advertising, personal selling, sales promotion, and public relations, a company uses to pursue its advertising and marketing objectives. Drug companies differ in the design and actual implementation of their promotions mixes.

PROMOTIONS MIX DEFINED A. ADVERTISING for OTC/Proprietary Drug Products   TV

advertising is the most expensive medium promoting OTC/proprietary drug products, but market reach is wider and faster, creating greater product awareness, long lasting recall, and likewise triggers purchase decisions and repeat buys. TV advertising to be effective must be supported with other promotions tools and other

PROMOTIONS MIX DEFINED B. CONSUMER SALES PROMOTIONS for OTC/Proprietary Drug Products   These

are promotions activities designed to achieve the following goals: arrest/attract attention of OTC consumers to buy the product; create an immediate response; dramatize product offers and perk-up declining sales; provide inducements or contributions or incentives to give

DEFINED B. CONSUMER SALES PROMOTIONS OTC/Proprietary Drug Products  This

ff:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

for

includes a wide assortment of tools such as the

Discount coupons Bonus-packed offers Piggy-back offers Pick and win promo Raffle promo Trading stamps Premium promo Free good promo Rebates Pin money Mystery buyer “Sale” campaign

PROMOTIONS MIX DEFINED C. SALES PROMOTIONS for Ethical Drug Products  Many

of the local drug companies employ sales promotions techniques to create awareness, acceptance, and patronage of their ethical drug products from physicians and dentists such as the ff: 1.Discount coupons for patients 2.Prescription for a cause 3.Gifts for the needy 4.Medical Missions or Free Clinic Operations 5.Other sales promo tools for ethical drug products to target prescribers includes: subsidies during MD residency training’s, study grants, sponsorships in conventions and conferences,

DEFINED D. PERSONAL SELLING Involves

personal interaction between two or more people, thus, each person observes the other needs and wants, adjusts to situations promptly and decisively, becomes sensitive to others feelings and expectations, goes beyond the selling and marketing functions top a deep long-run personal friendship. Personal selling, is

DEFINED E. MERCHANDISING AND DISPLAYS  Merchandising and displays cover every activity which help the dealer or drug outlet resell the company’s branded or generics line.  End-consumers have to be “pulled to one side and be reminded”. The factors which provide these reminders may be groped under the ff broad headings: 1.Drugstore owners, pharmacists and pharmacy aiders personal recommendation and/or endorsements. 2.Product displays. and other merchandising 3.Posters paraphernalia.

, PHARMACY  AIDES/SALESCLERKS  Drug

companies are very much aware and conscious of the powder that owners and drugstore personnel wield influencing the buying decision for OTC/proprietary products, especially now, that the DOH has, revitalized, the massive generics information drive, which gives the end-consumers the virtual authority in the choice of  drugs. The pharmacists and all counter clerks in drugstores are

DISPLAYS Displays

may be built: the drugstore owner or dealer or branch manager or the company representative. Dealer displays – are most effective and long lasting. Displays built by the company’s representative – are most often the basic display materials provided by the company head offices.

POSTERS/STREAMERS/BILLB OARDS  Product

posters and steamers are important link between advertising (seen by the housewife on magazines and newspapers and television or heard by her over the radio), and your brand when the consumer gets into the drugstore.  Always place your posters at eye level or higher, never lower.  Posters are point-of-purchase (POP) materials; therefore, their ideal location is the outlet, or the point where the consumer is likely to make his/her purchase.

DRUGSTORE OWNER TO SETUP DISPLAY  1.  You should plan on how you are going

to sat a display as carefully as you plan the actual sales. 2. Plan your biggest display in those drugstores that attract the biggest consumer traffic. 3. Before going into a drugstore, you should already have in mind what OTC/proprietary brands to display. 4. Always take the appropriate display materials with you and use them to sell

POSITION OF DISPLAYS  There

are displays:

four

position

for

1.Point-of-purchase – is undoubtedly

the best of the for position. 2.On the store floor – is the best place for a mass display of your OTC/proprietary brands. 3.Preferential shelf space – is that part of the fixtures which is in a commanding position.

KEY DISPLAY GUIDELINES A. If you have a POP display 1. Have

it either where most consumers stand, or better still t every serving point. 2. Place it in a strategic place so that the counter clerk sees it as well. 3. Have it at a height between waist and eye level (while your posters are placed at higher levels). 4. Make it big and attractive enough to attract the consumer.

KEY DISPLAY GUIDELINES B. If you have a Floor Display (this also applies to Preferential Shelf  Space) 1.Relate it to the size of the drugstore; within reason, however, the bigger the display, the more it will sell. 2.Have it in a position and size where it will be seen by the greatest number of consumers. 3.Do not trim it by including too many brands.

KEY DISPLAY GUIDELINES C. If you have a Window Display 1.Make sure you control the whole window space and that there are no other products cluttering the display. 2.Keep the windows clean and all elements of the display properly arranged.

CHECKLIST FOR A GOOD DISPLAY PROGRAM 1. Be selective – don’t try crowd in too many 2. 3.

4.

5.

displays.  Tie-in your displays with advertising in other media: give it a family resemblance. Study the most advantageous and strategic placing of display materials within the store. Sell to your sales clerks the idea of  properly maintaining the display at all times. Show them how to maintain the display in an attractive condition. Consult your suppliers through your sales

OBJECTIVES OF DRUGSTORES IN RELATION TO MERCHANDISING/DISPLAYS 1.  To bring in more prospective buyers

into the store who will actually buy. 2.  To increase customer traffic even during ordinary days. 3.  To sell the maximum range of  product line depth and width. 4.  Top maintain or strengthen store and brand loyalty. 5.  To increase average spending of  target clientele.

DEFINITION OF TERMS Advertising

– any paid form of nonpersonal presentation and promotion of  ideas, goods or services by an identified sponsor, for OTC/proprietary or health food lines. Consumer Sales Promotions – consist of  samples coupons, rebates, price-offs, premiums, patronage rewards, display, and contest designed to stimulate a stronger consumer response versus competing brands. Contests, games or sweepstakes – gives consumers the chance to in

DEFINITION OF TERMS A

contest – calls for consumers to submit an entry to be judged by a panel that will select the best entries, for purchases on products in the campaign period. A sweepstakes – calls for consumers to submit their names for a drawing, for example: whenever they buy products included in the campaign, they are entitled to a sweepstakes ticket. A game – presents consumers with something every time they buy that may help them win a prize. Coupons – certificates that give buyers savings when they purchase a product in a

DEFINITION OF TERMS Frequency

– a measure of how many times the average person in the target market is exposed to the message, either radio or TV commercial. Promotions Mix – the specific mix of  advertising, personal selling sales promotion, and public relation a drug company uses to pursue its advertising and marketing objectives, for either ethical or proprietary drug products. Personal Selling – involves personal interaction between two or more people, so each person can observe the others need and characteristics to close and make quick

DEFINITION OF TERMS Public

Relations – news stories, features, and events that seem more real and believable to readers than to ads, to dramatize a company or product. Patronage rewards – cash or other awards for regular use of certain company products or services. Point-of-Purchase (POP) – displays and demonstrations take place at the point-ofpurchase or sale. Price packs or cents-off deals – offer consumers savings off the regular price of 

DEFINITION OF TERMS  Premiums

– goods offered free or at a low costs a s an incentive to buy a product.  Reach – a measure of the percentage of  people in the market who are exposed to the tri-media ad campaign during the given period of time for advertised brands.  Rebates or Cash refunds Offers – like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. Example: Submission of empty wrappers in exchange for cash.  Sales Promotion – short term incentives to encourage purchase or sales of a product or service, for consumers to buy more and encourage a repeat buys

DEFINITION OF TERMS Sales

force Promotion – bonuses, contests, sales rallies, to achieve desired goals. Samples – offers of a trial amount of a product to consumers, usually for free, sometimes a company charges a small amount to offset the cost. Examples: smaller sizes of drug products as starter dose. Trade Promotion – discounts, allowances, free goods, cooperative advertising, push money, conventions, tradeshows given to trade channels.