BUSINESS

COMMUNICATION
BUSINESS COMMUNICATION

 Exchange of information, facts and ideas relating to business may be termed as

“business communication”.
 Business communication refers to the communication relating to business activity
which means providing goods and services to the consumers with a view to
earning profit.
 It is a process through which information, facts, ideas, orders, advices, decisions, etc.
are conveyed, sent or exchanged between/among the persons associated with
business. Thus, communication relating to trade, law, finance, administration,
management, etc. of a business enterprise may be termed as „business
communication‟
 American
• „Communication is any behavior that results in
Management an exchange of meaning‟.
Association
• „Communication is the process by which
information is transmitted between individuals
Peter Little and/or organizations so that an understanding
response result‟.

Newman and • „Communication is an exchange of facts, ideas,

Summer Jr opinions or emotions by two or more persons‟.
ELEMENTS OF BUSINESS COMMUNICATION

Message Sender Receiver

Channels Symbols Feedback

FEATURES OF BUSINESS COMMUNICATION
• Effective business communication deals with the practical
PRACTICAL aspect of the information explaining why, how, when and
the like queries. It conveys important information to the
receiver.

• In general a business message contains facts and figures in

FACTORIAL place of overall idea. Important date, place, time, etc.
should be clearly mentioned in a business communication.

CLEAR AND • The language used in business communication should be

simple, clear, brief and without ambiguity. Sometimes

BRIEF charts, photographs, diagrams, etc. are used to condense

or clarify the information
 Target- • business communication must have a specific objective
and must be planned properly so that the objective
Oriented can be achieved.

• Business communication often plays a persuasive role.

It persuades an employee to perform his/her duties, a
customer to buy a product or service etc. The basic
Persuasive characteristics mentioned above are related to the
message or information of the communication.
TYPES

Business
Communication

 Types of communication based on the

communication channels used are: Verbal Non verbal

Oral Written
VERBAL COMMUNICATION

 Verbal communication refers to the form of

communication in which message is
transmitted verbally; communication is done
by word of mouth and a piece of writing.
Objective of every communication is to have
people understand what we are trying to
convey. In verbal communication
remember the acronym:
 KISS (keep it short and simple).
ORAL COMMUNIACTION

 In oral communication, spoken words are used. It includes face-to-face conversations,

speech, telephonic conversation, video, radio, television, voice over internet. In oral
communication, communication is influence by pitch, volume, speed and clarity of
speaking.
ORAL COMMUNICATION

 It brings quick feedback.

 In a face-to-face conversation, by reading facial expression and body language one can
guess whether he/she should trust what‟s being said or not.

 In face-to-face discussion, user is unable to deeply think about what he is delivering

WRITTEN COMMUNICATION
 In written communication, written signs or symbols are used to communicate. A written
message may be printed or hand written. In written communication message can be
transmitted via email, letter, report, memo etc. Message, in written communication, is
influenced by the vocabulary & grammar used, writing style, precision and clarity of the
language used.
WRITTEN COMMUNICATION

 Messages can be edited and revised many time before it is actually sent.
 Written communication provide record for every message sent and can be saved for
later study.
 A written message enables receiver to fully understand it and send appropriate
feedback.
WRITTEN COMMUNICATION

 Unlike oral communication, written communication doesn‟t bring instant

feedback.
 It take more time in composing a written message as compared to word-of-
mouth and number of people struggles for writing ability.
NON VERBAL COMMUNICATION

 Nonverbal communication is the sending or

receiving of wordless messages. We can say that
communication other than oral and written, such
as gesture, body language, posture, tone of
voice or facial expressions, is called nonverbal
communication. Nonverbal communication is
all about the body language of speaker.
ELEMENTS

 Appearance
speaker: clothing, hairstyle, neatness, use of cosmetics
surrounding: room size, lighting, decorations, furnishings
 Body language
facial expressions, gestures, postures
 Sounds
voice tone, volume, speech rate
TYPES OF COMMUNICATION BASED ON PURPOSE AND
STYLE

BUSINESS
COMMUNICATION

FORMAL INFORMAL
COMMUNICATION COMMUNICATION
FORMAL COMMUNICATION

 In formal communication, certain rules, conventions and principles are followed while
communicating message. Formal communication occurs in formal and official
style. Usually professional settings, corporate meetings, conferences undergoes in
formal pattern.
 In formal communication, use of slang and foul language is avoided and
correct pronunciation is required. Authority lines are needed to be followed in
formal communication.
INFORMAL COMMUNICATION

 Informal communication is done using channels that are in contrast with formal
communication channels. It‟s just a casual talk. It is established for societal affiliations
of members in an organization and face-to-face discussions. It happens among friends
and family. Usually, informal communication is done orally and using gestures.
OTHER TYPES

UPWARD

VERTICAL

INTERNAL
DOWNWARD
COMMUNICATION
BUSINESS HORIZONTAL/
COMMUNICATION LITERAL
EXTERNAL
COMMUNICATION
 CORRECTNESS

COURTESY CLARITY

THE EFFECTIVE 7 C‟S OF CONCRETENESS CONCISENESS

COMMUNICATION

CONSIDERATION COMPLETENESS
METHODS OF BUSINESS COMMUNICATION

 Web-based communication - for better and improved communication,

anytime anywhere
 Video conferencing- which allow people in different locations to hold
interactive meetings;
 E-mails- which provide an instantaneous medium of written communication
worldwide;
 Reports - important in documenting the activities of any department;
METHODS OF BUSINESS COMMUNICATION

 Presentations - very popular method of communication in all types of

organizations, usually involving audiovisual material, like copies of reports, or material
prepared in microsoft powerpoint or adobe flash;
 Telephoned meetings, which allow for long distance speech;
 Forum boards- which allow people to instantly post information at a centralized
location; and
 Face-to-face meetings, which are personal and should be succeeded by a written
follow-up.
 OBJECTIVES

1. Giving Information:
The primary objective of communication is to make the members of an
organization aware of its goal and acquaint them with all the relevant
information.

2. Persuasion
To persuade means to make other people decide to do something, especially by
repeatedly asking them or telling them the reasons why they should do it; in other
words, influencing other people to believe or to do what one wants.
 OBJECTIVES

 3. Conveying Suggestion:
 The workers who are actually engaged in the work know better the loopholes in it
and can suggest to the managers the ways to plug the loopholes. Interaction of
suggestions and ideas help the progress of an organization.
OBJECTIVES
OBJECTIVES
 OBJECTIVES

 7. Management Efficiency:
 One of the objectives of business communication is to increase efficiency of the
management. If there is a good network of communication (formal and informal), the
organization can be managed efficiently and effectively.
According to Lawrence , the basic communication process involves the
following steps:

Clarifying the idea or problem,

developing a solution to the

problem,

Transmitting the idea or decision,

Motivating others to take

action agreed upon

Measuring the effectiveness

of communication
Charles E. Redfield ,states that the following elements are involved
in the process of communication

A (d) Communicate
(c) Stimulus (addressee,
communicato (b) Transmits respondent, audience)
(message, to influence his
r (a speaker, (says, sends,
orders, behaviour as seen in
sender, issues), his (e) response (reply,
reports) to a reaction)
issuer),
The process of communication can best be expressed by Laswell’s
popular five Whs:
• who says

• What in

• Which Channel

• to Whom

• with What effect’?

In the light of the above, the process or steps of business
communication can be described as follows:
STEPS OF BUSINESS
COMMUNICATION
1. Sender’s Idea:

The first thing is to be familiar with the idea or problem to be communicated .

 If the communicator has no clear view of this idea or problem, its reception on the
other end may give doubtful idea and may thus be misunderstood.

So, the process of communication demands full and clear view of the idea or problem to
be communicated .
2. Encoding the Idea:

When the idea is converted into a symbolic form in terms of some kind of language, it
may be termed as the encoding of the idea .

The language may consist of words, symbols, charts, diagrams, gestures, etc.

 The style, length, form, clarity, etc. of the message varies from person to person.
3. Transmission:

In transmitting the ideas or decisions, certain matters are to be taken into

consideration.

 The first consideration should be to select an appropriate channel (i.e., verbal,

non-verbal, written, etc.) and

 medium (telephone, e-mail, letter, face to face conversation, etc.).

 Next thing is to determine the person or persons to whom such ideas or decisions
are to be communicated.

So, the selection of right course and right person for communication is essential for
its effectiveness.
4. Getting the Message by the Receiver:

The receiver must get the message to make the communication fruitful.

5. Decoding the Message:

Decoding means understanding or bringing out the meaning of the message.

if the receiver understands the message in the same sense as the sender intends, the
objective of communication is presumed to be fulfilled.
6. Sending Feedback:

Feedback is the receiver’s response to the message

 Having understood the message the receiver reacts to it and responds accordingly.

 The feedback evaluates the effectiveness of the message.

7. Channel:
 Channels are the routes or paths of the communication.

 The sender’s idea is transmitted to the receiver through this path. Again, the
receiver sends feedback to the sender through the channel.

 Oral or telephonic message, letter, different audio and video media, computer, e-
mail, fax, etc. are the popular channels of communication .

8. Noise:
It is not a separate step in the process. It may be present at every step and make
the communication less effective or ineffective.
 IMPORTANCE OF BUSINESS COMMUNICATION

1. Movement of Information:
Communication helps to move information from one place to another and from one person to
another.
2. Efficient and Smooth Running of Enterprise:
The smooth and efficient functioning of an enterprise entirely depends upon the effectiveness
of the system of communication. It provides the basis of direction.

3. Promotion of Management Efficiency:

Communication encircles all the functions of business management. So, without it, no
function of business management can proceed towards its desired goal.
4. Basis of Decision-Making:

Communication helps the managers to take essential decisions and conduct vital
operations. In the absence of effective communication it may not be possible for top
management personnel to come in closer contact with their subordinates.

5. Basis of Co-Operation:
Communication creates condition for mental acceptance of the work before its actual
performance. This mental acceptance is the will- to-do before actually doing it.
Communication involves understanding and willing acceptance of orders and
instructions and acts as the basis for individual.
6. Means of Co-Ordination:
The function of the business communication is to get the workers fully informed of
everything relating to the work and bring a perfectly tuned harmony in their work.

7. Job Satisfaction:
Proper communication system extends mutual trust and faith. It enables the subordinates
to bring to the notice of the managers their viewpoints, grievances and troubles. This
facility raises the morale of the workers and, ultimately, leads to job satisfaction for high
performance .
9. Establishment of Public Relations:
A business enterprise comes into contact with several social groups, e.g., customers,
investors, trade unions, government and the local community. It must maintain cordial
relations with each of these groups to develop a favourable image

10. Establishment of Effective Leadership:

 The ideas, orders, instructions, direction, etc., of the leader or manager is

transmitted to the subordinate employees through communication.
 The manager can influence them and create a healthy relation by wiping out
misunderstanding and distrust between management authority and subordinates
through communication.
Hazrat Safwaan bin Sulaim radiallaho ta‟ala anhu narrates
that Rasool Allah sallalaho alaihe wasallam was asked,
 “Can a believer be a coward? He said, “Yes, he can
be coward.Then it was asked whether a believer
could be a miser? He replied, “Yes, he can be a
miser”, it was then asked whether a believer could
be a liar? He replied, “No, a believer cannot be a liar.”
(Imam Malik, Mishkaat)
 1

PROFESSIONAL SALES
REPRESENTATIVE
 2

WHAT SELLING IS?

Important part of marketing

Creates, communicates, and delivers value to customers and

manages customer relationships in a way that benefits the
organization and its stakeholders

Sales today is – consultative, collaborative dialogue with

focus on customer‟s needs
 3

SALES REPRESENTATIVE
• Sales representatives sell retail
products, goods and services to
customers.
• Sales representatives work with
customers to find what they want,
create solutions and ensure a
smooth sales process.
• Sales representatives will work to
find new sales leads, through
business directories, client referrals,
etc.
 4

PRE-APPROACH

PRODUCT INFO CUSTOMER INFO

Preparation-develop expertise in • Conduct pre-visit research
the product or service being sold expertise in the
customer's product or service
Formal training markets/products being sold
Direct experience customer's competitors
Written publications competitor's offerings)
• Determine sales
• Book appointments with
prospective clients
• Prepare sales presentation
 5

APPROACH
ADAPT Questioning Technique

Assessment -Assess the situation

Discovery -Discover needs, problems, priorities
Activation -Activate buyer‟s interest in solving problem or realizing an
opportunity
Projection Questions -Project how value can be derived from a
purchase
Transition - Transition into the full sales presentation
 6

Special Techniques
• Yes, But Method
Acknowledge objection then give answer to objection
“Yes the price does seem high, but…”

• Direct-Denial Method
(worst method)
“You don't seem to understand what I'm talking about”
 7

Special Techniques
• Superior Point Method
Admit that customer has made a good point; then offer a superior
reason to buy

• Boomerang Method
Turn objection into selling point
Customer ”I don‟t like the seats in the truck”
Salesperson “They are a unique design, but because of the contour
and adjustment feature you get the more options than any other truck
on the market.”
 8

Special Techniques
• Question Method
Ask more questions that may isolate the objection
“So you are telling me that if we could meet your needs with price, we
would have your commitment?”

• Demonstration Method
Show that the objection is wrong without having to say it
(most effective) – have customer try it

• 3rd Party Method

Testimonial – written or verbal example of someone who has used
product/service and found it satisfactory to exceptional
 9

Duties of PSR
• Present, promote and sell products/services
• Perform cost-benefit and needs analysis of existing/potential customers to meet their
needs
• Establish, develop and maintain positive business and customer relationships
• Reach out to customer leads through cold calling
• Achieve agreed upon sales targets and outcomes within schedule
• Coordinate sales effort with team members and other departments
• Analyze the territory/market‟s potential, track sales and status reports
• Continuously improve through feedback
 10

What Skills Does a Sales Representative Need?

• There are a wide array of skills that contribute to the success of sales reps, but here
are some of the most important:
• Strong interpersonal skills. Sales reps need a mix of both verbal communication
and listening skills and have the ability to articulate how a product or service works
to leads.
• Critical thinking skills. They must be able to diagnose a prospect‟s problems and
quickly come up with relevant solutions for the right price.

• Presentation skills. Product or service demos are often an integral part of this
position, and reps must be able to concisely explain the core features and benefits to
prospects.

• Negotiation. Sales representatives constantly face objections and concerns from

leads and must be well adept at negotiating deals.

• Relationship management. They must also be skilled at building, nurturing, and in

some cases, sustaining long-term relationships to ensure a positive customer
experience.
 11

Key job qualifications for sales representative

1. High school or; 4-year degree preferred

2. Sales experience or familiarity with the sales process strongly preferred
3. Valid driver’s license
5. Proficiency with MS Office, particularly Excel, Word and PowerPoint
6. Degree in Business, Communications, Construction, Marketing or management
7. Roofing/construction of experience
 12

Selection
• “Selection is a process in which candidates for employment are
divided into two classes, those who are to be offered employment and
those who are not.”
Or
“Selection is the process of picking individuals who have relevant
qualifications to fill jobs in an organization.”
 13

Objectives & Process

• Good selection improve sales force performance.
• Promotes cost savings.
• Eases other manager tasks.
 14

PLACEMENT AND ORIENTATION

• The selection procedure ends with placement of employees. “The

right person should be on the right job and right job should be
with the right person.”
• The selected candidate should be given copies of rules,
regulations, procedures followed in the company. He should be
introduced to his immediate superior and to his immediate
subordinate. Proper orientation of an employee will help him to
adjust easily in the new environment of the organization.
 15

PROCESS & Objectives of training and development

• Imparting Attitude Skills

• Notifying organization policies
• Bestowing organization culture and values
• Understanding the goals and objectives
• Developing the team working skills
• Developing the product/ service knowledge
 16

Supervision
• Supervision is generally used today to refer to time spent
working with employees to be certain they are aware of
the responsibilities of their job & to perform them
correctly.
• Supervising people performing
tasks include following:
• Offer suggestions & feedback
• Assist & observe
• Coaching & Counseling
• To answer questions & handle objections
WHAT IS CUSTOMER CALL OR CUSTOMER SERVICES

Forming relationship
with customers.

A relationship that an
individual customer feels that
he would like to pursue.
Kind of service that makes customer feel
special, service that makes him/her want
to come back and do more business
with the company and recommending
the company to other people.

17
 18

GOOD CUSTOMER SERVICES

• Providing quality product or service
• Satisfying the needs/ wants of customer
• Resulting in repeat customer

• Continued success
• Increased profit
• High job satisfaction
• Increased company or organization morale
• Better teamwork
• Make expansion of services/ products.
 19

RULES FOR GREAT CUSTOMER SERVICE

1.COMMIT TO QUALITY SERVICE
2.KNOW YOUR PRODUCTS
3.KNOW YOUR CUSTOMERS
4.TREAT WITH CUSTOMER COURTESY
5. NEVER ARGUE WITH A CUSTOMER
6. DON‟T LEAVE CUSTOMER HANGING
7. ALWAYS PROVIDE WHAT YOU PROMISED
8. FOCUS ON MAKING CUSTOMERS, NOT MAKING SALES
9.MAKE IT EASY TO BUY
 20

WHAT IS MOTIVATION NEEDED FOR?

• Sales people achieve their best results because they are

motivated by accomplishment and recognition first, and
money second.

• A motivated sales agents leads to a better buying

experience and more involvement with the sale, also it
adds more influence for future purchases.
MOTIVATION TECHNIQUES

1.HOW SELLERS SET THEIR OWN

GOALS
After the quota is set, work with sellers to
develop their own detailed target lists,
which could include plans on how to
accomplish their targets.

2. PROTECT YOUR TEAM

Don‟t bother your team or arrange meetings during
the last week of the month . Your team will stay
motivated if they know that you are looking out for
them and protecting their crucial selling time.

21
3.REWARD YOU TEAM
• The head of the organization should reward the team
when the team done well and celebrate both the big
success and the small victories

4.SEPARATE THE MANAGER FROM THE

SELLING
• When forced to do both, sales manager will always
sell first and manage later.
• Manager that sell ignore their team.
• Nothing demoralize the team faster than having a
manager in place.

22
 23

5.HAVING A COMMISSION PLAN THAT REWARDS THE TEAM FOR THE BEHAVIOUR YOU
WANT

When setting this plan there are 3 elements to be

considered:

Keep it simple (when the team misunderstands the

compensation plan, they assume the company is looking
for excuses not to pay them. )

Make sure every body knows and understands the rules.

Encourage team-building to ward off conflict before it

starts.
6.WARNING AND THREATS MOTIVATION USING FEAR THE
CLASSIC STRATEGY FOR COERCING GOOD BEHAVIOUR.

Useful in case of being under intense deadline and dangers of poor performance are
immediate, evident and high

In other cases fear has many drawbacks such as

It has a temporary effect and employees will become accustomed to the

punishment.

24
 25
7. OTHER INCENTIVES AND PERFORMANCE
BOOSTING TOOLS

New and more prestigious titles denoting a job well done

weekly, monthly and quarterly sales contents offering a valuable prizes

Well done certificates for hard working employees.

 26

COMPENSATION AND FUTURE

PROSPECTS OF PSR
 27

Future of sales
There are a few factors that influence the demand and
opportunities for individuals working as sales reps, such as
market trends, macroeconomic factors, major employers
(e.g. government), and sociological changes.

According to the BLS, there‟s a projected 2% growth in this

position from 2019-2029. And by 2028, 20,000 sales
representative jobs are expected to open-up in the U.S.
alone.
 28

Trend two :

PSR will be compensated on usage, Not deal size

Flexible usage
• Is the ability for customers to pay for a service or product
based on need and usage .
• Long employed by utility and telecom companies,

• Flexible usage is expanding to business in other industries

• These include:
• Software ( consumption)
• Auto insurance ( miles driven)
• Transportation ( miles ridden)
• Real estate ( Flexible workspace)
• Advertising ( pay per click impression )
 29

Trend three :

Customer Service Agents are the new sales reps.

With today‟s customers demanding superior experience,

as well as a commitment to their success,

Customer service is in a perfect position to

be the next sales forces.
 30

Cont‟d
• Whether they realize it or not your customers have a problem
( and it‟s up to your sales people to solve it )

It’s a partnership not a power struggle

The relationship between salesperson and prospect is now built off

of trust, and success is predicted upon teamwork .
 31

Trend four :

Modern selling continues to

Expand into the more digital channels
 32

Cont‟d
• The convergence of sales and marketing has created tremendous
opportunity to reach prospects in an entirely new context.

Tactical , authentic and regular use of social and technology

platforms has become a standard part of a winning sales strategy .

• The world is more interconnected than ever before

• 74 % of online adults use social networking sites
• Facebook has 1.44B monthly active users
 33

Trend five:

AI will require more sales headcount, not less.

 The rapid ascent of artificial intelligence, robots, automation, and machine learning ,
has caused jobs security fears for many roles .

When its come to sales, AI’s role is to ease the burden of manual
and tedious task.

• This gives reps more time to focus on giving customers what they want :
 Consultative, trusted advisors

 A uniquely human skill set .

 34

Prospects :
• In order to meet the needs of a more informed potential customer, sales
needs two things:
1. Sales people need to be a subject matter experts who can provide content and
intelligence as often as they sell ; and

2. Sales will increasingly need sales technology tools that provide insights into best ways to
close deals, whether that be insights into their prospects „behaviour or competitive
intelligence‟ take both and you up your win rates pretty significantly “
MOTIVATION AND PRESCRIBING HABITS
OF PHYSICIANS, PATIENTS CHOICE OF
PHYSICIANS AND RETAIL PHARMACISTS.
 INTRODUCTION

• A written or verbal order for a medication by a licensed

individual(physician, dentist, veterinarian ,etc)
• Medications must be prescribed by a registered medical practitioner
• should be clearly written, typed or computer generated, and be
indelible and dated
• if a drug replaces a previously prescribed drug then the outdated one
must be cancelled, signed and dated.
• Information regarding changes in medication must be
communicated to all who need to know e.g., nursing staff , patient
etc.
PRESCRIBING
MODELS
 A simplistic model of physician decision termed
Benefit/Risk Ratio Model was developed by
Knapp.

KNAPP The model takes into consideration of the

AND demographic variables such as age and site of
practice. It also includes four variables such as
OELTJEN’S severity of the disease, possible decisions, benefits
MODEL and side effects of medication, and physician’s
specialty.
However, the model excluded several factors had
been proved to significantly impact on the
prescribing.
 HEMMINKI’S MODEL
• Hemminki proposed a more complex model of
prescribing.
• The author suggested the incorporation of a number
of variables such as years of practice, the number of
work hours and the number of patients administered
to daily to effectively explain the drug prescribing
decisions of physicians.
• However, the explanatory power of the model is
overlooked.
 Kyle, Nissen, Tett’s model
Kyle made efforts through literature review to develop a qualitative
prescribing model that assesses the influence of economic factors on
physician prescribing behaviour.
The model displays an array of direct and indirect commercial impacts on
physician prescribing decision.

For example, physicians are directly influenced by visits of MRs, sampling,

gifts and conference travel. Although these tools have an indirect influence
on GPs, it does not appear to be related to pharmaceutical promotion
designs.
 GODIN ET AL.’S MODEL

Recently, Godin developed a single model based on the

TPB to provide a possible framework for studying
behaviours and intentions of health care professionals.

The TPB was shown to be a suitable theory to explain the

prescribing behaviour of physicians.

Habit (past behaviour), which is distinct from physician

characteristics, has a strong impact on physician
prescribing. The authors also reported that non-
psychological factors influence choice behaviour.
 Theory of planned behaviour
• The TPB theory is one of the most appropriate and frequently considered
behavioural theory when attempting to modify or influence physician
prescribing.
• In the meta-analysis conducted by Godin. the TBP demonstrated high
ability to predict the behaviour of physicians within the context of health
care. TBP has proved to be a successful analytical tool to handle the
factors influencing prescribing behaviour.
 Theory of social power
• The theory of social power is applied to better understand the role of the
expertise of pharmacists in prescribing drugs. Power is defined as the
possibility of influence. Social power is defined as the ability of a person/
individual or group of individuals to alter the outlook or behaviour of
someone else or panel in conformity with the course anticipated by the
persuasion.
• The theory of social power encompasses two vital elements of power and
influence attempts.
• First, according to control relational theory, during the pharmacist-physician
interaction in prescription decisions, the potential of pharmacists’ perception to
influence physicians will likely lead them to exert power in different tactical
forms (by providing information, advice, and recommendations related to drug
prescriptions).
• Secondly, this review presents trustworthiness as a modulating variable in the
relationship between the expert power of pharmacists and pharmacist–physician
collaboration, and physician’s behaviour.
 .
Theories relevant to factors
influencing prescribing decision
 AGENCY THEORY
• The basic concept of agency theory was first established by Jensen and
Meckling in academic literature.
• The theory presents a framework for analyzing relationships between
interdependent to identify the problem that exists between parties and
mechanism to solve it.
• The agency relationship occurs when the first party (the principal) relies
on the second party (the agent) to perform certain actions on behalf of the
client.
 Theory of persuasion
• Persuasion theory is used in prescription literature to identify better ways
of providing interventions to enhance the prescribing behaviour of
physicians such as marketing activities. The theory provides a significant
amount of knowledge to solve the questions relevant to pharmaceutical
marketing issues in the context of drug prescription.
• Elaboration Likelihood Model (ELM) is the most extensively used
model in the context of persuasion theory. The model proposes that
individuals use both cognitive abilities and emotional reaction to interpret
data and make decisions.
 ELM MODEL
• ELM model is composed of two methods of persuasion: the focal and
peripheral.
• The focal method comprises a high level of planning and cognitive effort
while peripheral method includes a lower level. Suggested that when
fewer people are interested in a case, they pay less attention to the
information provided and are less motivated to argue cognitively. In
contrast, when the incentive for the issue is low, the way of the terminal
becomes more significant.
 The buyer behavior – stimulus-
response theory
• The model proposes that the stimulus combined with a proper adjustment and specific
population will result in a response that can be anticipated by the vendor. The marketing
mix factors and other stimuli enter the “black box” which is known as the client (i.e. the
physician) and generate some choice replies/purchases. All of these stimuli enter the
black box of the buyer and are converted into a range of observed responses of the
purchaser.
MOTIVATIONS REGARDING
THE PRESCRIPTION
BEHAVIOUR OF THE
MEDICINES.
 Motivational Interviewing
• Motivational interviewing (MI) represents an alternative method for
building motivation for change and achieves this by eliciting and
reinforcing the patient’s own reasons for changing their behaviour.
• French philosopher Blaise Pascal said: “People are generally better
persuaded by the reasons which they have themselves discovered than by
those which have come in to the mind of others.”
• Process research has identified two components to the delivery of effective
MI: one relating to its empathic counselling style and overall spirit.
• The other being the skill to elicit and reinforce a person’s own arguments
for change and commitment to it.
 RETAIL PHARMACIST
• Retail pharmacists provide general healthcare advice and supply prescription
and non-prescription medication to the public. A retail pharmacist works in a
retail setting rather than in a hospital or GP surgery.
 What does a Retail Pharmacist do?
• providing advice about health issues, symptoms and medications in response to customer enquiries
• recruiting, training and managing staff
• processing prescriptions and dispensing medication
• ordering and selling medicines and other stock
• meeting medical representatives
• managing budgets
• keeping statistical and financial records
• preparing publicity materials and displays
• marketing services
Promotion is a term used frequently
in marketing and is one of the market
mix elements.
Promotion includes
Promotions refer to the entire set of elements like:
activities, which communicate the advertising, public
product, brand or service to the user. relations, social media
marketing, email
marketing, search engine
marketing, video
marketing and more
 INFORMATIVE PROMOTION PERSUASIVE PROMOTION

• The primary objective is to disseminate • The primary objective of this

information about the product, product promotion is to persuade people to
line, brand, and the company. buy
• It is prevalent at every stage of • The persuasive promotion is prevalent
product life cycle at the growth stage of a product
• The informative promotion is an • Many firms do not adopt this kind of
essential ingredient for creating the promotion as it involves high-pressure
primary demand. selling.
• The marketers adopt this promotion
strategy to convince customers to try a
product at least once.
 BUYER BEHAVIOR
MODIFICATIONS REMINDER PROMOTION

• The effect of promotional • The purpose of such promotion

strategies could be accessed is to keep the product alive in
through the modifications in the the minds of the customers.
consumer behavior. This acts as a “memory
• Constant personal selling and jogger” and influences their
repeated advertisements could long-term buying behavior
be used to measure the • The reminder promotion is
effectiveness of such often adopted at the stage when
promotional schemes a product reaches its maturity
 PROMOTIONAL MIX

It refers to the blend of several promotional tools used

by the business to create, maintain and increase the
demand for goods and services
The fourth element of the 4 P’s of Marketing Mix is
the promotion
It focuses on creating the awareness and persuading
the customers to initiate the purchase
 ELEMENTS OF PROMOTION MIX
ADVERTISING
The advertising is any paid form of non-personal
presentation and promotion of goods and services
by the identified sponsor in the exchange of a fee.
 Advertisement of drugs is done by following ways:
• Directed to consumers Advertisement (DTCA)
• Advertisement in mass media
• Directed to prescribers Advertisement
• Through advertisement in professional
publications, books, journals, conferences,
electronic media.
In relation to desired advertising effects, marketers
must be familiar with the benefits of individual
media, but also aware of their limitations
 SALE PROMOTION
The sales promotion is the short term incentives
given to the customers to have an increased sale
for a given period.
Generally, the sales promotion schemes are
floated in the market at the time of festivals or the
end of the season. Discounts, Coupons, Payback
offers, Freebies, etc. are some of the sales
promotion schemes.
With the sales promotion, the company focuses on
the increased short-term profits, by attracting both
the existing and the new customers.
 PERSONAL SELLING

 This is one of the traditional forms of promotional tool wherein the

salesman interacts with the customer directly by visiting them.

 It is a face to face interaction between the company representative

and the customer with the objective to influence the customer to
purchase the product or services.

 Sales representatives have the following tasks:

conveying information, persuading, demonstrating, coordinating
activities with their own companies, keeping in touch with clients,
gathering information and monitoring competitors’ activities.
 PUBLIC RELATION
The deliberate, planned and sustained effort
to institute and maintain mutual
understanding between an organization and
its publics.
The public comprises of the customers,
employees, suppliers, distributors,
shareholders, government and the society as
a whole. The publicity is one of the form of
public relations that the company may use
with the intention to bring newsworthy
information to the public.
 DIRECT MARKETING
With the intent of technology, companies
reach customers directly without any
intermediaries or any paid medium. The e-
mails, text messages, Fax, are some of the
tools of direct marketing. The companies can
send emails and messages to the customers if
they need to be informed about the new
offerings or the sales promotion schemes.
• E.g. The Shopperstop send SMS to its
members informing about the season end
sales and extra benefits to the golden card
holders.
Click to add text
STRATEGIES FOR SUCCESSFUL BUSSINESS AND GLOBAL
MEETINGS (Group Meeting)
What is a business strategy?
 A business strategy, also known as a company strategy, is a crucial aspect of
running a successful business.
 It is a defined plan of action that outlines the direction a business wants to take
and defines how the plan will cascade through the organization by the allocation
of resources.
 The importance of a business strategy cannot be overstated as it sets the
direction for the entire organization and helps to align all employees towards a
common goal.
 Overall, a business strategy serves as a roadmap for a company, guiding its
actions and decisions to achieve its goals and stay competitive in the
marketplace.
10 tips for growing a successful business
1) Identify your mission
2) Create goals
3) Build a strong team
4) Ensure customer satisfaction
5) Make the best product/service possible
6) Implement marketing strategies
7) Embrace change
8) Get organized
9) Prioritize self-care
10) Give back to the community
•Tesla - Playing the long game

•Airbnb - Forgetting all about scalability

•Toyota - Humility can be the best business strategy

•HubSpot - Creating an industry then dominating it

•Apple - iPhone launch shows tremendous restraint

•PayPal - Daring to challenge the status quo

•Spotify - Changing the rules of the music industry

Background Information on Groups
• Definition:
The Group refers to two or more persons who share a common interest
and come together to achieve common goals and objectives.
Types of groups
FORMATION OF GROUPS
Purposes and Kinds of Meetings

Information meetings

Decision making meetings

Innovation meetings

Sales meetings
Information meetings
• Information meetings are meant to share relevant knowledge and
facts with people in the company.
• Visual communication tools, like slides and videos, are powerful tools
for making the shared information more memorable.
EXAMPLE:
-Presentations -Information sharing
meetings -Panel debates -Keynotes
-Lectures
Decision making meetings
• A decision making meeting should be focused on making firm
decisions

Meeting attendees at a decision making meeting

• The attendees at a decision making meeting must have a certain
degree of authority
• capable and comfortable in making decisions
• Provision of necessary information
Innovation meetings
• An innovation meeting is meant for generating new ideas in a group
of people.
• A good innovation meeting is supposed to bring up new ideas,
innovative solutions and open perspectives on projects where you are
stuck or haven’t yet started.
Meeting attendees at an innovation meeting
• Variety of different attendees
• The attendees being creative thinkers
with innovative mind-sets
 Sales meetings
• Sales meetings, or customer meetings, have the purpose of creating
mutual commitment.
Meeting attendees at a sales meeting
• All meetings are an expression of resources – they cost time and
money.
• In a sales meeting, you have to think about who has the right
authority.
• The meeting attendees in at sales meeting should
be the salesman and sometimes a manager.
SOLVING PROBLEMS IN MEETINGS
WHAT IS A PROBLEM?
A matter or situation regarded as unwelcome or harmful and need to
be deal and overcome.

Marketing management problems are symptoms of failure to achieve

an objective or organizations goal.

Problem management is the process

responsible for managing the lifecycle of
all problems that happen or could happen
RULES FOR SOLVING PROBLEMS IN MEETINGS
• Show up on time
• Stay mentally and physically present
• Contribute to meeting goals
• Let everyone participate
• Listen with an open mind
• Think before speaking
• Stay on point and on time
• Attack the problem, not the person
• Identify the action plan
• Recording and follow-up
THREE WAYS TO HOLD A PROBLEM SOLVING MEETING

BRAIN DISCUSSION
STORMING GROUP

WORKING
GROUP
BRAINSTORMING
Brainstorming is quite different from the formal debate of business
meetings. It is used to search for as many ideas as possible – quantity
before quality.

WHAT IT ACHIEVES ?
Brainstorming is simply getting the greatest number of ideas from a
group of people in a short time. It encourages everybody to contribute
ideas uninhibited by formality. Participants can
put forward unusual proposals for initiatives or
problem solving
STEPS TO FOLLOW FOR SUCCESSFUL BRAINSTORMING
1. State the topic of debate
2. Outline the rules of the talk
3. Start the debate
4. Stop the upbeat
5. Getting Consensus on the statement
6. Summary of the process
DISCUSSION GROUPS
Discussion group meetings differ from formal business meetings in the way
they are conducted and what they achieve. They are in fact ‘ideas’ meetings
in which high levels of motivation are maintained.

WHAT THEY ACHIEVE?

• Involvement by your members
• A sharing of ideas
• Identification of specific club/group issues
• A free flow of thoughts
• Better understanding of club/group problems
• New approaches to club/group projects
 WORKING GROUPS
• Working groups find solutions to problems and then set about implementing
them.
• Not as free-ranging as brainstorming sessions, nor as ideas-driven as
discussion group meetings, they achieve measurable results. Participants take
an issue or problem, examine it, provide a written answer, which is discussed,
voted on and then – if appropriate – acted upon.

WHAT THEY ACHIEVE ?

• provide the opportunity to explore any issue fully and establish the
mechanism to deal with it
• involve each and every member of the group in providing
an answer, without pressure
• emerge with a firm action to be followed.
LEADERSHIP Responsibilities In
The Meeting
MEETING LEADER
Employee who is responsible for planning, organizing, managing the
details about, and inviting the participants to a meeting.
They are responsible for the progress of the actual meeting.
They take action before, during, and after the meeting to ensure that
the meeting reaches its goals successfully.
He may be the department head or may be appointed by senior
management to lead an initiative. They are selected for their
leadership role because of their perceived skills as a manager or
leader.
OBJECTIVES
Establishing a clear vision
 Sharing that vision with others so that they will follow willingly
Providing the information, knowledge and methods to realize that
vision
Coordinating and balancing the conflicting interests of all members
and stakeholders
 BUILD TRUST

CONDUCT COMMUNICATE
DEBRIEFINGS

LEADER

OFFER
HOLD ACCOUNTABLE RESOURCES

BUILD SELF
EFFICACY
KEY RESPONSIBILITIES
Determines the goal or purpose that must be accomplished
Answer the question: is a meeting needed?
Determines who needs to help plan the meeting
Decides the agenda for the meeting
Determines the date, time, and location
Puts together meeting pre-work
Invites participants and distributes assignments and pre-work
Cont…
Ensures that the meeting has a recorder or minute taker to document
the proceedings
Creates comfortable environment for participants
Leads the meeting and keeps it on track
Ensures that the next steps and action items are assigned and
handled
Debriefs the meeting and plans the agenda for the next meeting
Follow up with participants between meetings
Participant’s responsibilities
in meetings
 Participants
• Meeting members who actively participate
• Selected individuals and are called by invitation
• Join a meeting in response to a meeting request sent out by the
facilitator or meeting organizer
• Every participant is required to be present
• Determine the course of the meeting
 Organizer

Helper Clarifier

Critical
Questioner
Tester
PARTICIPANTS

Idea Factual
Creator contributor

Energizer Conciliator
Responsibilities
Reading the agenda of the meeting and taking preparation on the points where he can
make valuable contribution.

Arranging the necessary visual aids

Be punctual

Participate actively

Any contribution to the meeting must be made in the context of the previous discussion.
An idea that is already proposed need not be repeated, but one can amend it or improve
it.
Cont…
Speaking at the most appropriate time: it is recommended to speak at the beginning of the
point if the speaker has sufficient preparation on that point.

Observing the other members: An understanding of strengths and weaknesses of other

participants of the meeting enables a person to device the most effective way of dealing with
them.

Control of anger: In presenting the own speech and hearing the speeches of others, the
members should control their tempers, angers, emotions, excitements etc.

Flexible and accommodating attitude: They should be flexible and accommodating in

offering floor to others and also in hearing the speeches of others.
 Cont…
Not to show lecturing patronizing and condemning attitude: In delivering the
meeting none should show lecturing, advising and patronizing attitude in speech or
deliver speech to pinch others or condemn others.

Not to make lengthy speech: No member should make his speech lengthy. Lengthy
speech of one may deprive others form delivering their speech.

Abiding by the instructions of the chairperson: The participants of the meeting

should abide by the instructions of the chairperson. They should take their seats put
their signatures on the attendance sheet, cast votes and deliver speech as per the
instructions of the chairperson.
 Operation Management &
1
Productivity
2 Operation Management

 Production management (PM) involves the planning,

organization, direction and execution of production activities.

 Operations management (OM) is the set of activities that

create value in the form of goods and services by
transforming inputs into outputs
3 Difference b/w PM & OM
4 OM in Practice

 OM has the most diverse organizational function

 Manages the transformation process
 OM has many faces and names such as; V. P. operations, Director of
supply chains, Manufacturing manager, Plant manger, Quality
specialists, etc.
 All business functions need information from OM in order to perform
their tasks
5 OM Decisions

 All organizations make decisions and follow a similar path

First decisions very broad Strategic decisions
that sets the direction for the entire company; they are broad in
scope and Long term in nature
 Following decisions focus on specifics:
 Tactical decision: Tactical decisions: focus on specific day to day issues
like resource needs, schedules, & quantities to produce are frequent
 Strategic decisions: less frequent
 Tactical and Strategic decisions must be align
6 Functions of OM

 Goods oriented (manufacturing and assembly)

 Service oriented (health care, transportation and retailing)
 Value added (the essence of the operations functions)
What is Role of OM
 OM Transforms inputs to outputs
 Inputs are resources such as People, Material, and Money
 Outputs are goods and services
 Planning
Responsibilities
of OM
Controlling

Organization

staffing
8 Productivity
 Productivity is the output of any production process, per
unit of input.
 Productivity refers to the efficiency of the production
system. It is the concept that guides the management of
production system.
 Economists determine it from Gross National Product
(GNP), managers view it as cost cutting and speed up,
engineers think of it in terms of more output per hour. But
generally accepted meaning is that it is the relationship
between goods and services produced and the resources
employed in their production.
9 Importance of Productivity
 Productiveness increases the overall efficiency of an organization.
 Increased production due to efficient utilization of organizational
resources leads to a lower cost production resulting in better sales
and profits.
 Concept of productivity can be viewed from the following points:
a) To Beat the Competition
b) Guide the Management
c) Indicator of Progress
d) Maximum Utilization of Scarce Resources
e) Key to National Prosperity
10 Types of Productivity

Partial Productivity

Total Productivity

Total Factor Productivity

Multi Factor productivity

11 Partial Productivity

 Ratio of output to one particular class of input.

A Particular
P.P Output class of Input

 Often there is a factor which plays an important role.

 Such ratios are used for selection of a particular area of
improvement.
 Organizations can use this formula to determine
performance of labor, machines, energy, capital,
department, organization, etc.
12 Total Productivity

 It is the ratio of total output and total input.

Total Total
T.P.
Output Input

 Total output (Value of product)

 Total Input (Value of Input)
13 Total Factor Productivity

 Labour and capital are always considered important

contributors to the process of production.
 TFP model was developed by John W. Kendrick
 He has taken labour and capital as only two input factors
for calculating TFP
 Data is easy to obtain in TFP
 It does not consider the impact of material and energy
input, even though materials constitute 60% of the cost.
14 Multi Factor Productivity

 Scott D. Sink further developed the total factor

productivity model into MFP
 MFP model considers labour, material and energy as
major inputs
 Capital was left out since it is very difficult to estimate
how much capital is being consumed in a unit of time.

Output Inputs (labor +energy +

MFP
material)
15 Factors Influencing Productivity
16 Productivity Improvement Techniques
 The nature of organizing and
17
entrepreneuring
18 What is an organization?

 An organization is a collection of people who work

together and coordinate their actions to achieve a wide
variety of goals.
19 What is entrepreneurship?

 Entrepreneurship is the process of designing, launching

and running a new business, which is often initially
a small business.
 The people who create these businesses are
called entrepreneurs.
20 Types of organizations

 Line organization
 Line-and-staff organization
 Functional organization
 Committee organization
 Project organization
 Matrix organization
 Freeform organization

There are numerous ways to structure jobs within an organization, but two of
the most basic forms include simple line structures and line-and-staff structures.
21 Line-and-staff organization

In a line organization, top management has complete control, and the chain
of command is clear and simple.
 Examples of line organizations are small businesses in which the top
manager, often the owner, is positioned at the top of the organizational
structure and has clear "lines" of distinction between him and his
subordinates.

 The line-and-staff organization combines the line organization with staff

departments that support and advise line departments.
22 Line and staff positions

 Line position: A line position is directly involved in the day-to-day operations of the
organization, such as producing or selling a product or service. Line positions are
occupied by line personnel and line managers.

E.g. An example of a line manager is a marketing executive. Although a marketing

executive does not actually produce the product or service, he or she directly
contributes to the firm's overall objectives through market forecasting and generating
product or service demand.

 Staff position: Staff positions serve the organization by indirectly supporting line
functions. Staff positions consist of staff personnel and staff managers.
E.g. An example of a staff manager is a legal adviser.
23 Departmentalization
24 Line-and-staff authority

 Line authority: Line authority flows down the chain of command. line
authority gives an individual a certain degree of power relating to the
performance of an organizational task.
 Staff authority: Staff authority is the right to advise or counsel those with line
authority.
 Functional authority: Functional authority is referred to as limited line
authority. It gives a staff person power over a particular function
25
Organizational culture
26 Organizational culture

 Culture is the unique dominant pattern of shared beliefs, assumptions,

values and norms that shape the socialization, symbols, languages and
practices of groups of people.
 Values are the basic beliefs people hold that specify general preferences
and behaviors, and define what is right and wrong.
 Norms are rules that govern behavior of groups of people.
27 What must be for culture to exist?

 1. It must be shared by the vast majority of members of

a group or society;
 2. It must be passed on from generation to generation;
and
 3. It must shape behavior and perceptions.
28 Types of organizational culture

 The basic types of organizational culture are:

 1. Bureaucratic
 2. Clan
 3. Market
 4. Entrepreneurial
29 Bureaucratic Culture

 In this type of culture the behavior of employees is governed by formal rules

and standard operating procedures.
 Such a culture perpetuates stability.
 Organizations with bureaucratic culture tend to produce standardized
goods and services,
 examples:
 Government ministries
 Fast food establishments
30 Clan Culture

 In a clan culture the behavior of individuals are shaped by tradition,

loyalty, personal commitment, extensive socialization and self-
management.
 A clan culture achieve unity through socialization.
 Long-term employees serve as mentors
 Members are aware of the organization’s history and have an
understanding of the expected manner of conduct and organizational
style.
 Members share feelings of pride in membership.
31 Market Culture
 In a market culture, the values and norms reflect the significance of
achieving measurable and demanding goals mainly concerning those
that are financial and market based.
 Companies with a market culture tend to focus on:
 Sales growth
 Profitability
 Market share
 In a market culture the relationship between individuals and the
organization is contractual (previously agreed).
 Individuals are responsible for their performance; whereas the organization
promises specific rewards for levels of performance.
 Managers are not judge on their effectiveness as role models or mentors;
but on monthly, quarterly, and annual performance goals based on profit.
32 Entrepreneurial Culture

 Organizations existing in the context of an entrepreneurial culture

are characterized by high levels of risk taking and creativity.
 There is a commitment to experimentation, innovation, and being
independent.
33 Relationship between culture and
organizational performance
 Organizational culture has the potential to enhance organizational
performance, individual satisfaction, the sense of certainty about
how problems are to be handled.
 Culture serves as a control mechanism to channel behavior
towards desired behaviors and to prevent undesired behaviors.
 PRICING
 Pricing can be defined as the process of
determining an appropriate price for the product,
or it is an act of setting price for the product
 Pricing is the method of determining the value a
producer will get in the exchange of goods and
services.
 Simply, pricing method is used to set the price of
producer‟s offerings relevant to both the producer
and the customer.
 PRICING
Pricing is the method of determining the value a producer will get in
the exchange of goods and services. Simply, the pricing method is
used to set the price of the producer‟s offerings relevant to both the
producer and the customer
Setting
pricing
policy
 IMPORTANCE OF PRICING
 Price is the only element of
marketing-mix that generates
revenue for the firm;
 Price is the most flexible
element; as it can be adjusted
quickly. Other elements such as,
product, place and promotion
are less flexible to adjust.
 Price is a silent information
provider. It helps the customer
judge product benefits. In fact,
higher prices are taken as an
indicator of higher product
quality; specially when the
product is new and it is difficult
to measure product benefits
objectively.
 PRICING OBJECTIVES
The objective once set gives the path to the
business i.e. in which direction to go. The following
are the pricing objectives that clears the purpose
for which the business exists:
 •The foremost Pricing Objective of any firm is to set
the price that is optimum and help the product or
service to survive in the market. Each firm faces
the danger of getting ruled out from the market
SURVIVING because of the intense competition, a mature
market or change in customer‟s tastes and
preferences, etc. Thus, a firm must set the price
covering the fixed and variable cost incurred
without adding any profit margin to it.

MAXIMUM •Many firms try to maximize their current profits by

estimating the Demand and Supply of goods and
services in the market. Pricing is done in line with
AND the product‟s demand in the customers and the
substitutes available to fulfill that demand. Higher
CURRENT the demand higher will be the price
charged. Seasonal supply and demand of goods
PROFITS and services are the best examples that can be
quoted here.
CAPTURING • Many firms charge low prices for their offerings to capture greater
market share. The reason for keeping the price low is to have an
HUGE increased sales resulting from the Economies of Scale. Higher sales
volume lead to lower production cost and increased profits in the long

MARKET
run. This strategy of keeping the price low is also known as Market
Penetration Pricing. This pricing method is generally used when
competition is intense and customers are price sensitive. FMCG
SHARE industry is the best example to supplement this.

• Market skimming means charging a high price for the product and
MARKET services offered by the firms which are innovative and uses modern
technology. The prices are comparatively kept high due to the high cost

SKIMMING
of production incurred because of modern technology. Mobile phones,
Electronic Gadgets are the best examples of skimming pricing that
are launched at a very high cost and gets cheaper with the span of time

PRODUCT – • Many firms keep the price of their goods and services in accordance
with the Quality Perceived by the customers. Generally, the luxury

QUALITY goods create their high quality, taste, and status image in the minds of
customers for which they are willing to pay high prices. Luxury cars
such as BMW, Mercedes, Jaguar, etc. create the high quality with
LEADERSHIP high-status image among the customers.
 DETERMINANTS OF PRICING

While pricing a product, the important factors to be

considered are usually the following:

(1) Cost of Production:

The price of the product must be so fixed as to recover
the full cost of production from the price charged;
otherwise all production activities will have to be
stopped, in the long-run.
(2) Profit-Margin Desired:
The price of the product should include a reasonable (or
targeted) margin of profits; to ensure profitable selling
(3) Competitors’ Pricing:
In the present-day competitive marketing world, no
businessman could ignore the pricing policies adopted by
competitors; while doing the pricing his own product. In
any case, the price of the product to be charged by a
manufacturer must not be substantially different from the
prices charged by competitors for similar types of products.
(4) Government’s Policy of Price-Control:
Where, in particular cases, the Government has fixed
maximum retail prices; the pricing policy followed by a
manufacturer must have to be in tune with governmental
regulations, in that regard.
 PRICING METHODS

 The Pricing Methods are the

ways in which the price of goods
and services can be calculated by
considering all the factors such as
the product/service, competition,
target audience, product‟s life
cycle, firm‟s vision of expansion,
etc. influencing the pricing
strategy as a whole.
 It is the route taken by firm in
fixing the price.
 TYPES

PRICING
METHODS

Cost Competition Demand Market

oriented based based oriented
pricing pricing pricing pricing

target
Cost plus Mark up Value Going rate Perceived Differential
return
pricing pricing pricing pricing value pricing
pricing
Cost In cost-plus pricing method, a fixed percentage, also called mark-
up percentage, of the total cost (as a profit) is added to the total
plus cost to set the price.

pricing
For example, XYZ organization bears the total cost of Rs. 100 per
unit for producing a product. It adds Rs. 50 per unit to the price of
product as‟ profit. In such a case, the final price of a product of the
organization would be Rs. 150.

Markup Refers to a pricing method in which the fixed amount or the

percentage of cost of the product is added to product‟s price to get
pricing the selling price of the product. Markup pricing is more common in
retailing in which a retailer sells the product to earn profit
For example, if a retailer has taken a product from the wholesaler
for Rs. 100, then he/she might add up a markup of Rs. 20 to gain
profit.

Target
return In this kind of pricing method the firm set the price to yield a
required Rate of Return on Investment (ROI) from the sale of
pricing goods and services.
 Perceived value Value pricing Going rate pricing

• In this pricing • Under this pricing • In this pricing

method, the method companies method, the firms
manufacturer design the low- consider the
decides the price price products and competitor‟s price
on the basis of maintain the high- as a base in
customer‟s quality offering. determining the
perception of the Here the prices are price of its own
goods and services not kept low, but offerings.
taking into the product is re- Generally, the
consideration all engineered to prices are more or
the elements such reduce the cost of less same as that
as advertising, production and of the competitor
promotional tools, maintain the and the price were
additional benefits, quality gets over among
product quality, the simultaneously. the firms.
channel of
distribution, etc.
that influence the
customer‟s
perception.
 DIFFERENTIAL PRICING
 This pricing method is adopted
when different prices has to
be charged from the different Customer
group of customers. The segment
prices can also vary with

TYPES
respect to time, area, and
Time pricing
product form.
 E.g. The best example of
differential pricing is Mineral Area pricing
Water. The price of Mineral
Water varies in hotels, railway
stations, retail stores.
Product form
DEMAND BASED PRICING COMPETITION BASED
• Demand-based pricing refers to PRICING
a pricing method in which the • Competition-based pricing refers
price of a product is finalized to a method in which an
according to its demand. If the organization considers the
demand of a product is more, prices of competitors‟ products
an organization prefers to set to set the prices of its own
high prices for products to gain products. The organization may
profit; whereas, if the demand charge higher, lower, or equal
of a product is less, the low prices as compared to the prices
prices are charged to attract the of its competitors.
customers.
 PRICING STRATEGIES
 A pricing strategy can be defined as an action, task, or
approach to achieve the pricing objectives of the
organization.
 Good pricing strategy helps you determine the price
point at which you can maximize profits on sales of your
products or services. When setting prices, a business
owner needs to consider a wide range of factors
including production and distribution costs, competitor
offerings, positioning strategies and the business‟ target
customer base.
PRICING DEFINITION EXAMPLE
STRATEGY
Penetration Pricing Here the organisation sets a A television satellite
low price to increase sales company sets a low price
and market share. Once to get subscribers then
market share has been increases the price as their
captured the firm may then customer base increases.
increase their price.

Skimming Pricing The organization sets an A games console company

initial high price and then reduces the price of their
slowly lowers the price to console over 5 years,
make the product available charging a premium at
to a wider market. The launch and lowest price
objective is to skim profits near the end of its life
of the market layer by cycle.
layer.
Optional pricing The organization sells This strategy is used
optional extras along with commonly within the car
the product to maximize its industry when purchasing a
turnover. car.
PRICING STRATEGY DEFINITION EXAMPLE
Product Line Pricing Pricing different products An example would be a DVD
within the same product range manufacturer offering
at different price points. different DVD recorders with
different features at different
prices e.g. A HD and non HD
version.. The greater the
features and the benefit
obtained the greater the
consumer will pay. This form
of price discrimination assists
the company in maximising
turnover and profits.
Bundle Pricing The organization bundles a This strategy is very popular
group of products at a reduced with supermarkets.
price. Common methods are
buy one and get one free
promotions.

Premium Pricing The price is set high to Examples of products and

indicate that the product is services using this strategy
"exclusive" include Harrods, first class
airline services, and Porsche.
PRICING STRATEGY DEFINITION EXAMPLE

Psychological Pricing The seller here will The seller will charge 99p
consider the psychology of instead £1 or $199 instead
price and the positioning of of $200. The reason why
price within the market this methods work, is
place. because buyers will still
say they purchased their
product under £200 pounds
or dollars, even thought it
was a pound or dollar
away.
 Issues of pricing:
1.Pricing Over the Life Cycle of
the Product

Every product has its own

life cycle and its sales and
In the product launching
profitability change over
(introductory) phase, the
time. There are four phases
manager in charge of pricing
of a product‟s life cycle:
has to decide whether to
introduction, growth,
adopt a market penetration
maturity and decline. As the
or a price skimming strategy
product passes through each
and, in the growth phase,
of these stages, the
management can probably
strategies and problems of
be more aggressive in
pricing must be varied
pricing to improve profits.
accordingly. As a product
However, as a general rule,
passes through each stage,
the maturity and decline
there is a corresponding
stages are characterised by
change in the applicable
vigorous competition
pricing decisions.
 2. The Erosion of Distinctiveness

The above analysis is based

The second factor is
on the assumption that the
the likely rate of
producer is concerned with
erosion of the
making choice which will
distinctiveness of
yield the highest profits
the pioneer product.
over the foreseeable life of
This will, in turn, The possible lead time
the product. Finally,
depend upon the enjoyed by the initial
“although a pioneer product
number of competi- producer may be obtained
will not normally compete
tive products from an analysis of his
very strongly with existing
entering the market strengths and weakness
products, some substitution
and the extent to
may occur, and if this
which they can
substitution is likely to
reproduce the
encompass the producer‟s
characteristics of pi-
existing products, a
oneer products.
penetration price will again
be less appropriate.”
 3. The Significance of Cost

The third major

factor is the cost
structure of the
producers. A Figure 19.8,
reduction in AC1 shows
the unit cost
average cost is
of producing
likely if there is various
learning effect. In quantity of a
general “the greater product
the scale factor and within a
the learning effect, period, say a
the more day.
appropriate will a
penetration policy
be.”
 Post-Skimming Strategies

Another factor
Choice of a If it is felt that the worth
skimming price is „top‟ of the market consideration is the
not enough. Subse- has become extent to which the
quent decisions will saturated (i.e., the product has gained
have to be made limited number of an image of
about the timing customers who are exclusivity or
and size of future willing to pay a high prestige. A
reductions from the price have had the substantial price
initial price. In opportunity to buy) reduction may lead
some instances, the it becomes to loss of prestige.
producer‟s hand appropriate to lower A series of small
may be tied by the the price in order to price reductions
actions of attract new would be more
competitors customers. appropriate.
 Mixed Strategies

Many firms do
adopt a strategy
which falls between An alternative
the two extremes of approach is to use
the skimming and the customer‟s
penetration prices. estimated savings
This policy is in operating costs
followed by many as a guide to
large companies in price. This is a
case of many new special
products. For characteristic of
example, Du Pont industrial goods
followed a mixed pricing.
strategy for both
nylon and
cellophane.
 Pricing in Maturity

Another deficiency of
It is the stage between the product-life-cycle
the growth period, when concept is that “it
sales increases rapidly implies that a decline
and the period of decline, stage will inevitably
when sales falls sharply. succeed maturity,
It prevents complacency whereas in some mar-
on the part of firms who kets maturity may be
have introduced prolonged for many
successful products, years by a series of
alerting them to the need product innovation. In
to have additional other markets, maturity
products ready for may be prolonged
launching when sales of because the product
their existing products fulfils a basic need for
begin to fall. which no close
substitute exists
Pricing Products in Decline

Again, it is necessary
to take cost
conditions into
account. If cost
continues to fall with
an expansion of
output due to the
learning effect there
will be a pressure for
price reduction, even
though the market
elasticity of demand
may now be low.
 Three additional strategies bear
relevance at the decline stage

Withdrawal of
Product Advertisement
Reformulation Price Reduction Support Strategy:
Strategy: Strategy:
Finally, as Livesey has
pointed out, “even if a
First, there is need The second strategy is price reduction fails to
make a significant impact
to reformulate the one of reducing price
substantially to induce on sales, additional
product drastically a temporary revival of profits may still be wrung
and sell at a much sales The company had out of declining products
lower price. This is a goodwill as a reliable if the producer is strong-
family car makers willed enough to
a common practice withdraw advertising
in the book raising its sales.
support, thus formally
business accepting the status of
the product”.
Drug Pricing Policy, 2018
 Introduction:

The Drug Regulatory Authority of Pakistan with the approval of its Policy
Board and the Federal Government is pleased to establish the following
drug pricing mechanism as specified in sub-clause (vii) of clause (c) of
section 7 read with caluse (a) of sub-section (1) of Section 11 of the
Drug Regulatory Authority of Pakistan Act, 2012 (XXI of 2012). The
mechanism is termed as Drug Pricing Policy, 2018.

So as to ensure that these medicines are available at a

reasonable price to the general public.

The origin of this order back to 1970 when for the first
time government placed limits on profitability of
pharmaceutical companies.
Merit & Advantages

 The main positive point that in the history of Pakistan, in

2018, DRAP introduced drug pricing policy
 318 “scheduled” drugs including cancer and HIV medicines will
come under the preview of the pricing policy.
 Play significant role in making the drug available to public i.e.
the market player of drugs
 Consider the hardship cases with timeline
 The WAP (weighted average price) mechanism to control price
of essential medicines across the board will help in both public
health sectors and industrial growth.
Demerits & Disadvantages

 The new drug pricing would have adversely impact on the

profitability of Pakistani pharmaceutical companies
 Under the current cost-based formula of determining the
price of the drugs, the expenditure on Research and
development was not being considered at all
 Not determined the timeline of finalization of new NCE‟s
and new product prices
 It might result that the multinational companies may lose
interest from investing or expanding production capacity in
Pakistan who are the leading supplier of many essential
drugs
 Never address the medical devices and suture prices in the
policy
 OBJECTIVES:

To ensure the
availability, at
any reasonable
price for essential
and life saving
medicines of
good quality.

to encourage
promoting the cost
effective
rationale use production
of the drug . with economic
sizes.
MRPs fixation of new entrants

 MRPs of new entrants of the drugs already available in

the market which have not been fixed so far by the Drug
Pricing Committee of the Authority or Drug Pricing
Committee or Price Advisory Committee or Price
Recommendatory Committee of the Ministry of Health
(defunct) shall be fixed at the time of registration
according to the following parameters.
 If strength of drug(s) in a tablet is equal, same MRP will be
fixed for its all coated and un-coated forms.
 If strength of drug(s) in a capsule as powder or pellets is
equal, same MRP will be fixed for its all hard forms.
 If strength of drug(s) in a liquid oral dosage form is equal,
same MRP will be fixed for its all liquid dosage forms.
 If strength of drug(s) in otic or ophthalmic or nasal dosage
form is equal, same MRP will be fixed for its all liquid
dosage forms.
 If strength of drug(s) in a topical dosage form
(gel/cream/ointment/paste/lotion/liquid) is equal, same
MRP will be fixed for equal pack sizes in grams/milliliters
etc.
 If contents of drug(s) in an injection is equal, same MRP
will be fixed for its vial or ampoule irrespective of its
filling in glass or plastic or Low Density Polyethylene
(LDPE) or any other material upto 20ml pack size.
 If strength of drug(s) in a tablet or capsule in a modified
release form is equal, same MRP will be fixed for its all
modified (sustained/extended/delayed/core-coated
/prolong /slow) release forms.
 (10) If MRP is fixed for base, then same MRP will be
considered for the salt as approved by reference
regulatory authorities as adopted by the Registration
Board.
 Scheduled Formulation

 Schedule formulation shall mean formulation with same

strength and dosage form as in the schedule.
 If Dosage Form & Strength of a scheduled formulation
are changed, it ceases to be a Scheduled Drugs
 Example.
 Amoxicillin Capsules 250mg is covered under schedule
 Amoxicillin Tablet 125mg shall not be called a Scheduled
Drug
 Non - Scheduled Formulation

"Non-Scheduled Formulation" means a

formulation, containing the molecule, the
dosage and strengths of which are not specified
in the First Schedule; (Non- NLEM Drug /
Formulation)

Example: Aceclofenac ,Norfloxocin,

New Drug / New Formulation

A) NLEM (National List of Essential Medicines)

Formulations with same specified dosage and strength
as combined with another NLEM Formulations with
same specified dosage and strength
Example 1:
Paracetamol 500mg Tablet is Scheduled Formulation
Diclofenac 50mg Tablet is Scheduled Formulation
New Drug = Paracetamol 500mg + Diclofenac 50mg
Tablet is New Drug/Formulation
Cont.……

B) NLEM Formulations with same specified dosage and

strength as combined with another Non - NLEM
Formulations
Example 1:
Paracetamol 500mg Tablet is Scheduled Formulation
Aceclofenac 100mg Tablet is Non - Scheduled Formulation
Paracetamol 500mg + Aceclofenac 100mg Tablet is New
Drug
Cont.…..

 C) NLEM Formulations by changing its strength

 Example 1:
 Paracetamol 500mg Tablet is a Scheduled Drug
 Paracetamol 325mg Tablet is a New Drug
 D) NLEM Formulations by changing its dosage
 Example 1:
 Diclofenac 50mg Tablet is a Scheduled Drug.
 Diclofenac 50mg Ointment is a New Drug.
 What Is PPMA

 Pakistan Pharmaceutical Manufacturers‟ Association

came into existence on January 26 1961, and the
Government of Pakistan through the Ministry of
Commerce registered PPMA as the only Representative
body of the Pharmaceutical Industry in the Country.
 The Government issued a Licence to this effect under
Section 26 of the Companies Act, 1913 on July 18,
1961. The Association was formally incorporated under
the Companies Act, 1913 by the Registrar of Joint Stock
Companies.
 SALES
MANAGMENT
 SALES MANAGEMENT
SALES MANAGMENT
Sales Management is the marketing management activity dealing with planning,
organizing, directing and controlling the personal selling efforts.

The basic function and role of selling is to generate sales and earn revenue for
the organisation.
Sales Management translates the marketing plan into marketing performance. It
is the muscle behind marketing management.

Sales Management is the process of developing, planning, monitoring, and controlling

the entire process of selling your company’s goods or services. It also concerns
recruiting, training, and supervising your sales force and covers all pre-sales, sales, and
post-sales activities.
Modern selling approach involves :

Maintaining good customer relationship

Managing profitability

Managing customer complaints/

grievances

Building brand equity

 COMPONENTS OF SALES
PROCESS
There are three “umbrellas” to manage within the sales process
 The goal of the sales process is to achieve an optimal point in the middle
which is the combination of all these processes. That is the point which is to
be achieved to get a balanced sales process. The following diagram depicts
the optimal point in the middle of these processes:
• FUNCTIONS OF SALES
MANAGEMENT

• SALES CHANNEL
• A sales channel is the way in which a
business-to-business (B2B) sales
organization goes to market, either
through direct or indirect routes, to
sell its product or services to end
customers.
• You can get your products to market
and in front of your ideal customers
in various ways. Broadly divided
there are 4 types of sales channel.
 THE FOUR SALES CHANNELS
• Channels all include both business-to-business and direct-to-
customer selling.
• Over-the-counter selling Personal selling conducted in retail and
some wholesale locations in which customers come to the seller’s
place of business.

•Field selling Sales presentations made at prospective customers’

locations on a face-to-face basis.

• Telemarketing Promotional presentation involving the use of the

telephone on an outbound basis by salespeople or on an inbound basis
by customers who initiate calls to obtain information and place orders.

• Inside selling Selling by phone, mail, and electronic commerce.

Firms generally blend sales channels in their sales organization.

 Procurement (buying or purchasing)

• Procurement is the process of acquiring goods and services

from external sources. Goods, services and works supplied by
external sources must meet the standard requirement outlined
by the buyer.

• Act of obtaining/buying goods and services from external

sources which ensures that the buyer receives goods, and
services at the best possible price.
FOUR MAIN PARTS OF
PROCUREMENT STRATEGY
Quadrant 2
Quadrant 3
Quadrant 4
SALES MANAGEMENT
PROCESS
• SALES MANAGEMENT PROCESS

• Even though all team members contribute to

commercial goals, it’s the manager’s responsibility
to get the job done. Their tasks include:

• 1. Setting goals
• To manage the process, you need to have a sales
roadmap. With it, it’s possible to track the ongoing
performance and timely determine whether
comprehensive assistance is needed to achieve
the goals.

• 2. Planning and managing sales activities

• This area of responsibility concerns developing
and testing sales activities. Trying out new
technologies and approaches is the only way your
team can succeed in nurturing customers better
than competitors do.
3. Motivating the team
Use good old methods of employee retention — the ones that have been tested by
generations of managers.

• Set SMART goals.

4. Evaluating and reporting
For every decision you make or insight you speak, put numbers in front. Use essential
software, create sales dashboards, and deliver comprehensive sales reports. Make
data integrated and visualize where relevant.

Using automation in your sales reporting will prevent:

• Revenue discrepancy
• Poor data access
• Decision-makers being overloaded with irrelevant and outdated information.
 SALES PROMOTION

Involves the use of media and non-media marketing pressure

applied for a pre-determined, limited period at the level of
consumer, retailer or wholesaler to stimulate trial, increase
consumer demand, or improve product availability
Customer Oriented Sale Techniques OR
Techniques of Slae Promotion
 Trade Oriented Promotions
Sales promotion tools used for trade-oriented promotions are.

•Point Of Purchase Displays: This includes providing free point of purchase (POP)
display units to the retailers to increase their sales.

•Trade Shows: Trade shows are a great sales promotion strategy where the business
promotes its product to thousands of traders in the trade show. Trade shows also witness
huge discounts as compared to when bought usually.

•Push Money: Also known as spiffs, this technique includes extra payments to traders to
motivate them to meet specified goals. For example, giving them a $50 bonus per unit for
selling product A and $30 for selling product B for a specified time period.

•Deal Loaders: These are the gifts provided to the traders (wholesalers and retailers) for
ordering a certain quantity of product.

•Trade Deals: These are special concessions provided to the merchants to encourage them
to promote a specific product and increase its sales for a limited time period.

•Buying Allowances: Special discounts provided to the sellers when they order a specified
number of products.
Advantage of sales promotion
• price discrimination
• effect on consumer behavior
• luring new customers with price
Disadvantage of sales promotion
increase price sensitivity
short term orientation
PROMOTIONAL STRATEGIES

PUSH STRATEGY
• A push promotional strategy involves taking the
product directly to the customer by any means,
ensuring the customer is aware of your brand at the
point of purchase.
"Taking the product to the customer”
Examples of push tactics
• Trade show promotions to encourage retailer demand
• Direct selling to customers in showrooms or face to face
• Negotiation with retailers to stock your product
• Efficient supply chain allowing retailers an efficient supply
• Packaging design to encourage purchase
• Point of sale displays
• A pull promotional strategy uses advertising to build up
customer demand for a product or service
• It could be explained by this line “Let the customers to come
to you”
• Pull Strategy

• A pull strategy involves motivating customers to seek out your

brand in an active process.
"Getting the customer to come to you."

Example of the Pull Strategy

• Advertising strategies that include mass media promotion of a
product
• Word of mouth Referrals
• Sales promotion and discount
• Customer Relationship Management
 CUSTOMER SERVICE
Customer service is the ability to provide a service or product in the
way that it has been promised“.
"Customer service is about treating others as you would like to be
treated yourself”.
"Customer service is an organization's ability to supply their customers'
wants and needs”.

Customer service includes several activities including:

Training - services needed to assist the customer in learning how to
use a product.
Repair - services needed to handle damaged or malfunctioning
products.
Financial Assistance - services needed to help customers with the
financial commitment in purchases or using the product.
Complaint Resolution - services needed to address other problems
that have arisen with customers’ use of a product.
 CORPORATE CULTURE

• Corporate culture is the collection of values, beliefs, ethics

and attitudes that characterize an organization and guide its
practices.

• Corporate culture refers to the beliefs and behaviors that

determine how a company's employees and management
interact and handle outside business transactions. Often,
corporate culture is implied, not expressly defined, and
develops organically over time from the cumulative traits of
the people the company hires.
 AS an Example
• Understanding Corporate Culture
• Google has a well-known and highly respected company
culture. They are known for their focus on innovation,
creativity, and collaboration.
• Their employees are given a lot of freedom to experiment,
and they are encouraged to think outside the box. Google is
also known for its excellent benefits, including free food and
unlimited vacation days.
• At its corporate headquarters in Mountain View, California,
the company offers on-site services such as oil changes, car
washes, massages, fitness classes, and a hairstylist. Its
corporate culture helped it to consistently earn a high ranking
on Fortune magazine's list of "100 Best Companies to Work
For."
Microsoft
• For Microsoft’s CEO, the primary concern is not to
create new products, but to develop innovative
minds through empathy. Employees are encouraged
to learn from real-life lessons that help them see
things from others’ viewpoints.
• Microsoft takes its employees out of their comfort
zones. Management understands employees have
dreams outside the four walls of the company and
allows them time and space to pursue their goals.
Apple
• Apple is one of the largest and most profitable
companies globally, and its success is mainly due to
its strong company culture. Apple is known for its
innovative and design-focused products, and its
company culture reflects these values. Employees at
Apple are passionate about their work and
constantly push themselves to innovate and create
the best products possible.
CORPORATE CULTURE
 corporate culture analysis

• A detailed corporate culture analysis usually calls for

profound understanding of the core values of the
company. It won't completely explain the
idiosyncrasies of individual units, groups, and
workers, but it usually will reveal practices and values
that are common among most employees.
ANALYSIS
 STRATEGIC PLANNING

• Strategic planning in management is the process of documenting and

establishing a direction of your small business—by assessing both where
you are and where you’re going.
A company’s strategic plan consists of it’s:
• Mission
• Vision
• Values
• Long-term goals
• Action plans

 A well-written strategic business plan can play a pivotal role in your small
business growth and success because it tells you and your employees how
best to respond to opportunities and challenges
STRATEGIC PLANNING
 EVALUATION

• The organizational culture of a company determines

how employees describe where they work, how they
understand the business, and how they see themselves
as part of the organization. Attributes of
workplace culture can be a driver of decisions,
actions, and ultimately overall organizational
performance.
EVALUATION
 PLANNING
• Planning is a process that involves the setting of the
organization’s goals, establishing strategies for
accomplishing those goals and developing plans of
actions that managers intend to use to achieve
organizational goals.
• Planning is deciding in advance what is to be done,
when where, how and by whom it is to be done.
• Planning bridges the gap from where we are to where
we want to go.
• It includes the selection of objectives, policies,
procedures and programs from among alternatives
 OBJECTIVES

To bring certainty in future events

To provide specific direction
Forecasting
To bring economy in managerial operations
To attain predetermined goals
To get victory over competitions
 STEPS
• Defining of goals/objectives determining
where you stand in relation to set
goals/objectives
• Developing premise regarding future
conditions
• Analyzing and choosing action alternatives
• Implementing the plan
• Evaluating results and taking corrective action
 TYPES OF PLANNING

strategic tactical operational

Long term Short term

 Strategic Planing:
involves analyzing competitive opportunities and threats, as well as the
strengths and weaknesses of the organization, and then determining how to
position the organization to compete effectively in their environment.
Strategic planning has a long time frame, often three years or more.

Strategic planning generally includes the entire organization and includes

formulation of objectives.

Strategic planning is often based on the organization’s mission, which is its

fundamental reason for existence. An organization’s top management most
often conducts strategic planning.

 Contigency Planning:
A contingency plan, also known colloquially as Plan B, is a plan
devised for an outcome other than in the usual plan. It is often used for risk
management for an exceptional risk that, though unlikely, would have
catastrophic consequences.
 Tactical Planning:
• is intermediate-range (one to three years) planning that is
designed to develop relatively concrete and specific means to
implement the strategic plan. Middle-level managers often
engage in tactical planning.
• Operational Plan:
• generally assumes the existence of organization-wide or
subunit goals and objectives and specifies ways to achieve
them. Operational planning is short-range (less than a year)
planning that is designed to develop specific action steps that
support the strategic and tactical plans.
 Long term planning:
• is of strategic nature and involves long period say 3-5 yrs.
• The long term plans usually encompass all the functional areas of
the
• business and are affected within the existing and long-term
framework
• of economic, social and technological factors.
 Short term planning:
• is usually a plan made for one year. These are aimed at
sustaining
• organization in its production and distribution of current products or
• services to the existing markets. These plans directly affect
functional
• groups( production, marketing, finance
 ADVANTAGES
• Planning facilitates management by objectives
• Planning minimizes uncertainties
• Planning facilitates co-ordination
• Planning improves employee’s moral
• Planning helps in achieving economies
• Planning facilitates controlling
• Planning provides competitive edge
• Planning encourages innovations
 Limitations of Planning
• Costly process
Planning involves too much expenditure. Money and effort both are
required in planning. It requires salary and allowances to the experts in the
process of providing services
• Time consuming
Planning is the time consuming process. It delays the business activity to
come in action. In the process of planning following the procedures of
planning takes a lot of time.
• False sense of security
Planning encourages false sense of security against future risk and
uncertainty. As future is uncertain, it is unpredictable. Therefore, planning
cannot give accurate and reliable results.
• Rapid change
Rapid changes in technology ,consumer tastes and preferences are
further limitations to planning
 Receiving & Storing Pharmaceuticals

The Receiving Process:

By Receiving personnel, to verify the shipment is
complete & intact before putting items into
circulation or inventory.
• Check for missing or damaged items
• Some pharmacy follow the policy that requires the
person who receives pharmaceuticals be different
from the person ordering them
– Important for controlled substances
 The Receiving Process
1- Checking of damaged shipment or incorrect box
counts
– Receiving personnel play a critical role in protecting
the pharmacy from financial responsibility for
damaged products in the shipment, products not
ordered ,and products not received.
– Products with a cold storage requirement should be
processed first
– Performed in the presence of delivery person
– Any damage, should be documented when signing the
order
 The Receiving Process
2- Checking the delivered products against the
receiving copy
– Done after the delivery person has left
– Ensures that the products ordered have been
received
– The name, brand, dosage form, size of the
package, concentration strength, and quantity of
the product must match the purchase order
– Expiration date should be checked, minimum of 6
months is acceptable
 The Storing Process

• store properly at temperature & humidity levels recommended by

the manufacturers.
• Depending on size & type of the pharmacy operation, the product
may be placed in bulk, central storage area or into the active
dispensing areas of pharmacy.
• Expired products in stock should be removed.
• Products near expiry should be highlighted & placed in the front of
the shelf (stock rotation).
 The Storing Process
• All stocks should be stored at temperature and
humidity levels recommended by the
manufacturers and defined by the United
States Pharmacopoeia (USP)
Freezer -25 to -10°C
Cold (refrigerated) 2 to 8°C
Cool 8 to 15°C
Room temperature The temperature of working
area
Controlled room temperature 20 to 25°C
Warm 30 to 40°C
Excessive heat Above 40°C
Marketing
management
Market Analysis Techniques -3cs

Kenichi Ohmae (a Japanese researcher,

who proposed the 3Cs model

 Customer analysis
 Company analysis
 Competitors analysis
Introduction

 The 3 C concept of marketing strategy is a very

interesting concept for marketers as it explains
complete marketing strategy on the basis of 3
variables.
 These 3 variables are dynamic and inter dependent
on each other. If one changes, the other has to
change. The 3 C of marketing strategy are
 1) Customer
2) Company
3) Competitor
3Cs model

 The 3Cs Model is an industry model, which offers a

strategic look at the factors needed for success.
 The 3Cs model points out that a strategist should focus
on three key factors for success. In the construction of
a business strategy, three main elements must be
taken into account:
 The Customers
 The Company
 The Competitors
1. The Customer

 Clients are the base of any strategy according

to Kenichi Ohmae (a Japanese researcher, who
proposed the 3Cs model).
 Customers have wants and needs. The company
recognizes these and offers a basic product. To cater
to their expectations and also to differentiate from
competitors, companies try to offer differentiated
products. Similarly, competitors attempt to offer
differentiated products to generate profits and
growth.
Contd…

 Customers are the important part of any business. If

your company customers are loyal it will be difficult for
your competitors to penetrate. In case you don’t have
loyal customers, it will be difficult for you to penetrate.
Customer Use detailed interviews
analysis and questionnaires to
collect the relevant
data. We can create
charts, diagrams variety
for reports using the
Business Analytical
Data. By this way, you
can reach to the most
appropriate customers
and sever them for a
longer time.
 Therefore, the primary goal is supposed to
be the interest of the customer and not
those of the shareholders. In the long run, a
company that is genuinely interested in its
customers will be interesting for its investors
and take care of their interests
automatically.
 Segmentation is helping to understand the
customer.
1. Segmenting by objectives
2. Segmenting by customer coverage
3. Segmenting the market once more
2. The
Company

 You can stand

out of crowd
and reach your
target customer
if you have a
complete
advantage.
Your company
can achieve it
by cost
leadership
strategies and
product
differentiation
strategies.
The Corporation (The industry)

1. Selectivity and sequencing

The corporation does not have to
excel in every function to win. If it
can gain a decisive edge in one
key function, it will eventually be
able to improve its other functions
which are now average.
2. Make or buy

 In case of rapidly rising wage costs, it becomes a

critical decision for a company to subcontract a
major share of its assembly operations. If its
competitors are unable to shift production so
rapidly to subcontractors and vendors, the
resulting difference in cost structure and/ or in
the company's ability to cope with demand
fluctuations may have significant strategic
implications.
 In essence, the company should seek to stay
ahead of the competition by either outsourcing
some of its activities that are quite costly but do
not have direct value addition or it should apply
backward integration techniques for its core
business areas.
3. The Competitors

 Competitor based strategies can be constructed by

looking at possible sources of differentiation in
functions such as: purchasing, design, engineering,
sales and servicing. The following aspects show ways
in order to achieve this differentiation:
 Making it big in the industry
 Hito-Kane-Mono
Contd…

 Customer s has always a choice to buy from your

company or your competitors. it would help if you
always created a unique value proposition over your
competitors, for example, UPS , Lululemon, Nike and
Under Armour.
 Ask the questions when conducting a competitor
analysis.
Contd…

 You can collect competitor analysis

data by conducting research, gather
competitive information then analyze
competitive information and determine
what is your own competitive position.
You can use their website, newsletters
and annual reports and utilize your sales
force to access competitive information.
New 3Cs Model

There is also a new 3 Cs model emerging which centers

on sustainability. This model is:
 Capability
 Consistency
 Cultivation
 The idea behind the new 3 Cs model revolves around
the concept of shared value to the company, the
environment, and the community.
Evaluation of Marketing
Performance
Evaluation of Marketing
Performance

 Because of marketing’s day-to-day importance in

your business operations, it’s critical that you keep an
eye on the results of your marketing plans and
activities. Using a variety of simple review methods,
you can monitor, analyze and evaluate the steps you
took to sell your product or service and determine
which are working and which need to be
reconsidered.
7 Ways to Evaluate Your
Marketing Plan

1. Return on Investment
 Return on investment is always a major concern when
it comes to marketing or any other business expense.
The idea is to check whether the money you put into
your marketing plan has resulted in a profit. You can
calculate an overall measurement, but a more
specific breakdown by each marketing initiative will
tell you exactly which campaigns worked and which
fell short.
 2. Reviewing Sales Numbers

 Reading the numbers can be the fastest and most

basic way to determine whether your plan is working.
For example, if your overall sales for last year from
June 1 to September 1 totaled $100,000 and your total
sales for this year totaled $150,000, you can deduce
that your current marketing plan is having some sort of
positive effect.
3. Customer Response and Reactions
 Customer response in all its varied forms can help you
to determine what type of reactions your marketing
creates. Surveys online and in person, general
customer service feedback and online commentary
can all reveal what your customers think of your
marketing and which campaigns have the greatest
impact.
 Simple questions like "How did you find out about our
seasonal sale?" can reveal which initiatives are
reaching the customer and which market segments
are making purchases.
4. Marketing Reach Expansion

 If your marketing reach is expanding, the effectiveness

of your plan is the probable cause. Marketing that
makes its way into new regions either by customer
recommendation or natural growth indicates both a
successful and popular product or experience and an
effective marketing message.
5. Marketing Partner Response

 Your marketing partners will offer feedback about

whether your marketing plan is working. Partner
feedback reveals the effectiveness of your efforts in
relation to associated brands, suppliers and vendors.
These outside members of the team might feel the
effects of a successful campaign before you do
because they are often on the front lines and might
have more direct customer interaction.
6. Outside Salespeople Feedback

 Outside salespeople are a great barometer for the

measurement of marketing effectiveness. Ask for
feedback from your subordinates in the field to
determine whether the message you are providing
and the ways you are providing it are effective.
 You are sure to get advice in any case, but if the
feedback is overwhelmingly negative or customers
are completely unaware of your latest marketing
efforts, your plan should be revised to better address
existing clients and to suit the needs of your sales
team.
7. Actions of Competitors

 The actions of your competitors can often be very

telling when it comes to the success or failure of your
marketing plan. If competitors rush to copy what
you've done or try their best to one-up your initiatives,
the plan is working. If your campaigns go largely
ignored or there is an immediate negative response,
there may be an issue or at least a question about
what you've set in motion.
What is a Marketing Audit?

 An audit turns your marketing strategy inside out,

exposing all its strengths and weaknesses. It’s basically
a SWOT analysis of how you go to market. By
evaluating the objectives, tactics, processes, activities
and propositions that comprise your marketing
strategy, you gain newfound insight into the core
systems of your business and your brand.
8 STEPS FOR CONDUCTING A
MARKETING AUDIT

 The marketing audit process helps your company

analyze and evaluate your B2B marketing strategies,
activities, goals and results. While the process takes
time, the results can be enlightening and might:
 Focus your communication of a consistent message to
the right customers.
 Reveal new, unknown or neglected markets.
 Help fine-tune current strategies and plans to help
increase market share.
1. Assemble an Overview of
Your Company.
 Company location, date established, sales history,
number of employees, key personnel and chronology
of company events like mergers, acquisitions and
divestitures.
 An estimation of the current awareness level of the
company as well as perception of your company
among your buying influencers.
2. Describe Your Marketing
Goals and Objectives.
 They can be concepts like increase company visibility,
increase audience size, differentiate from
competition, increase or maintain market share,
generate qualified sales leads or increase usage
within existing customers. List your goals and objectives
as being:
 Long-term, with 6 to 8 goals listed a priority order to be
accomplished in the next two years.
 Short-term, with a narrowing to 1 to 2 goals to be
accomplished in the next 12 months.
3. Describe Your Current
Customers.
 Job titles or functions, industry or SIC codes,
geographic location, company size and other
demographic, ethnic or behavioral descriptions.
 Size of current customer audience.
4. Describe Customers You’d
Like to Target.

 If target customers are outside your usual industry,

geography or size of current customers.
 Any internal or external factors that have changed in
your business or industry causing you to target a
particular group.
 A behavior that needs to be present for retargeting to
occur.
 Size of target customer audience
5. Describe Your Product or
Service.
 Describe it in terms of its purpose, features, benefits,
pricing, sizing and distribution methods. Also include:
 Strength or weakness as compared to competition.
 Any economic, legal, social, technical, seasonal or
governmental factors that affect product/service.
 Current awareness level as well as perception of your
product/service.
 Sales or market share history and any changes over time.
6. Describe Your Past Business
or Marketing Encounters.

 Helped grow your business as well as what has not

helped grow business.
 Not been tried but might have helped.
 Your competition has been doing to grow their
business.
7. Identify Three to Six
Competitors.
 Include the company name and location as well as:
 Describe their products/services in terms of their features,
benefits, pricing, sizing and distribution methods.
 Sales or market share history.
 Competition’s strategy for the near future.
8. Begin to Outline a
Communication Plan.
 Begin to list current and future media sources as well if
costs are fixed annual costs, and what funds are
available for new efforts for:
 Advertising vehicles like broadcast, print, out-of-home
and online advertising.
 Promotional vehicles like website, collateral, direct
marketing, interactive and online marketing.
 Media relation vehicles like media contacts, public
relations and articles.
 Event vehicles like trade shows, special events, seminars
and webinars.
Some other types…
DESIGNING
SALES
Four phases of Effective
Sales
 EVALUATION
 IMPACT TRAINING
 REINFORCEMENT
 ACCOUNTIBILITY
EVALUATION
To design an effective sales training program, you
need to know three things:
where your team is now?
where you want it to be?
and how you are going to bridge the gap?
To obtain that knowledge, start with an accurate
assessment of your current reality.
The evaluation phase should include self-
assessment by the participants; a 360-
degree assessment by peers, managers,
subordinates and clients; and an objective
assessment by a third party or online
evaluation tool. Once you have an
accurate picture of your team, you can
begin to benchmark it against top
performers and ideal behaviors.
IMPACT TRAINING
The next phase is quick-hitting impact
training for immediate awareness and
baseline knowledge. Typically, this phase
is a boot camp-style training in which you
can bring everyone onto the same page
very quickly. Depending on your situation,
it can be a virtual; live, instructor-led; or
recorded online course.
The goals are the same regardless of format. You
need to make your team aware of what is expected
of them and to build the foundations of knowledge
that will help them to learn and execute the new
behavior. Impact training is great for short-term
motivation, building consensus, and communicating
best practices and processes. It normally takes place
during the first 60 to 90 days of the training program.
REINFORCEMENT
Impact training rarely creates lasting success without
reinforcement. It is now time for your participants to
apply the strategy and tactics discussed in the impact
phase and challenge their current status quo. This
phase is the most crucial; it’s where the participants
must reach outside of their comfort zones to try
something different and then apply it until it becomes
a new habit.
The reinforcement phase also usually
requires some live coaching, because
participants will have questions and
challenges as they implement skills for the
first time. Reinforcement is the key to any
training’s long-term impact. It is never-
ending, because lasting results require
lifelong learning, but a solid reinforcement
plan should have curricula spanning 18
months to three years.
ACCOUNTIBILITY

The final component involves more

coaching than training for
participants to move from application
to ownership and mastery. New sales
habits are not easy to maintain. Sales
managers, trainers and peer
accountability partners play a crucial
role in helping the participants to stay
on track.
MARKETING CHANNELS
MARKETING CHANNELS
A marketing channel is the people,
organizations, and activities necessary to
transfer the ownership of goods from the point
of production to the point of consumption. It is
the way products get to the end-user,
the consumer, and is also known as
a distribution channel.
A marketing channel is a useful tool for the
management, and is crucial for creating an
effective and well-planned marketing
strategy.
Roles of marketing channel
in marketing strategies
 Links producers to buyers
 Influences the firm's pricing strategy.
 Affecting product strategy through branding, policies, willingness to
stock.
 Customizes profits, install, maintain, offer credit, etc.
Types
There are four main types of marketing
channels.
 Producer → Customer (Zero-level Channel)
The producer sells the goods or provides the service directly to the
consumer with no involvement with a middle man such as
an intermediary, a wholesaler, a retailer, an agent, or a reseller. The
consumer goes directly to the producer to buy the product without
going through any other channel.
 Producer → Retailer → Consumer (One-level Channel)
 Retailers, buy the product directly from the manufacturer and sell
them directly to the consumer. This channel works best for
manufacturers that produce shopping goods
like, clothes, shoes, furniture, tableware, and toys.
 Since consumers need more time with these items before they
decide to purchase them, it is in the best interest of the manufacturer
to sell them to another user before it gets into the hand of the
consumers
 Producer → Wholesaler → Retailer → Customer (Two-level Channel)
 Wholesalers, buy the products from the manufacturer and sell them
to the consumer. In this channel, consumers can buy products
directly from the wholesaler in bulk. By buying the items in bulk from
the wholesaler the prices of the product are reduced. This is because
the wholesaler takes away extra costs, such as service costs or sales
force costs, that customers usually pay when buying from retail;
making the price much cheaper for the consumer
 Producer → Agent/Broker → Wholesaler or Retailer → Customer
(Three-level Channel)
 This distribution channel involves more than one intermediary before
the product gets into the hands of the consumer. This middleman,
known as the agent, assists with the negotiation between the
manufacturer and the seller. Agents come into play when the
producers need to get their product into the market as quickly as
possible. This happens mostly when the item is perishable and has to
get to the market fresh before it starts to rot.
ETHICAL CONSIDERATION OF
PHARMACEUTICAL MARKETING
 INTRODUCTION
 Moral principles that govern a person's Behaviour or
the conducting of an activity are called Ethics.

 Ethics is concerned with what is good for individuals

and society and is also described as moral philosophy.

 The term is derived from the Greek word ethos which

can mean custom, habit, character, or disposition.
 The consideration of ethics in research, and in
general business for that matter, is of growing
importance.

 This is especially important if your research

involves interaction with businesses or members
of the general community who serves as
participants (i.e., respondents) in your research.
ETHICAL PRACTICES
 DOS & DON’TS
ALLOWED

 Promotional Aids (strict provision)

 Items of Medical Utility (strict Provision)

 Hosting of Scientific Promotional Meeting

 Limited Sponsorship to genuine scientific event

 Cultural courtesy cards/gifts(i.e. inexpensive gifts not

related to items of medical utility and allowed by local Law)

 Meals/Dinners if in connection to an event and secondary

NOT ALLOWED

 Monetary Gifts

 Personal Gifts (i.e. flowers, jewelry, cars, etc.)

 Recreational Activities (i.e. golf, tickets to sporting events,

concert, vacations, etc.)

 Sponsoring of family events or paying for a

guest/companion

 Meals/Dinners if not in connection to an event

 Any form of entertainment (i.e. company paid for musical

performance during dinner
 It sets out the standards for ethical promotion of
pharmaceutical products to healthcare professionals.

 Implementation of the code is a matter of self

regulation and self discipline

Does NOT seek to regulate

 Promotion of prescription drugs to consumers (DTC

advertising).

 Promotion of self medication products (OTC

medications).

 Provision of non promotional information

 PRINTED PROMOTIONAL MATERIAL

All printed promotional materials other than reminder

advertisements must be legible and include :

• the name of the product (normally the brand name),

• the active ingredients,

• the name and address of the pharmaceutical company

or its marketing agent,

• date of production of the advertisement, the

abbreviated prescribing information.
DIFFERENCE BETWEEN PHARMACEUTICAL
AND CONSUMER MARKETING
PHARMACEUTICAL MARKETING

• The performance of Pharmaceutical

business activities that direct the flow of
Pharmaceutical goods and services from
producer to the consumer.
• Pharmaceutical marketing can also be
defined as a management process that
serves to identify and meet patients' needs
in a profitable way .
 FUNTIONS OF MARKETING
1. BUYING AND ASSEMBLING
 Buying is fundamental function of marketing
 Manufacturers Buy raw material and equipment to
manufacture its pharmaceutical product.
 Whole sellers and retailers buy goods from various
sources to sell at profit to consumer.
 economic and efficient buying Enables to earn
profit.
Methods of Buying
By Inspection
By Sample
By Description
By Grade

Assembling collection of commodities at central place.

It involves bringing together, collecting & concentrating goods
from various sources at central located places.
 2. SELLING

 The process where by goods and services finally

flow to the consumers who need them.
 Selling is heart of marketing.
 in pharmaceutical marketing the sale of
medicine depends on physician.
 Physician the decision maker in the drug.
 Selects the product for his client on the basis of
 Efficacy
 Safety
 Price
 Pharmaceutical manufactures approach the
physician through its medical representative and
try to convince the physician to prescribe his
medicine
3. TRANSPORTATION
 The movement of goods from the point of
production to the point of consumption
 4. STORAGE
 It is the process of making proper arrangements for
retaining goods in a perfect state till they are needed by
consumer and are to be taken to market place.
 Factors affecting storage
 Storages is governed by factors like
 Contamination by dust
 Microbes
 Deterioration by humidity, temperature
 Many times raw material are oxidize by oxygen.

Reasons for storage

 It helps to maintain the stability of prices.

 It helps to ensure the availability throughout the year.
 Finish products are stored till the time of their distribution
are sale on demand.
5. FINANCING
 The provision of funds is essential for marketing.
 It requires both

 Working capital

 Fixed capital

 Purposes

 To meet buying ,selling & transport expenses.

 To regulate storage & production of goods.

 To provide credit facility to consumer.

 To meet changes in style, fashion & competitive

products.
CONSUMER MARKETING
CONSUMER MARKETING
 Consumer marketing is defined as creating
and selling products, goods and services to
individual buyers.
 Examples of consumer markets include
financial services, consumer electronics,
food and beverages, accessories, leisure
and entertainment, and healthcare.
 These are markets in which buyers
purchase products or services for personal
consumption rather than resale
WHAT ARE THE CHARACTERISTICS OF
CONSUMER MARKET?

 Marketers usually define these consumer

characteristics through market segmentation, the
process of separating and identifying key customer
group.
 Demographic characteristics include
differences in gender, age, ethnic
background, income, occupation and
education. Others include size of household,
religious affiliation, nationality or social
class.

 Psychographic characteristics include

interests, activities, opinions, values and
attitudes. Such information helps
businesses better understand what might
appeal to their customers when designing
advertising and marketing campaigns.
 Behavioral characteristics include product
usage rates, brand loyalty and length of
patronage. By distinguishing between
heavy, medium and light users, marketing
departments can determine whom they
should target and with what type of
advertising.

 Geographic characteristics are often based

on market size, region, population density
and climate. This kind of information
clarifies preferences in taste and style
within different regions, and can help small
retailers find opportunities where larger
competitors have no interest
MAJOR STAKEHOLDER IN
PHARMACEUTICAL MARKETING
STAKEHOLDER

Definition:
groups or individuals that have an interest in
the well being of the company and they are
affected by the goals, operations or activities of
the organization or the behavior of its members.
OR
A person or organization who can be positively or
negatively impacted by or cause an impact on
actions of a company.
STAKEHOLDER CATEGORIES INTO
They are broadly classified into
 Internal Stakeholder

 External Stakeholder
WHO ARE STAKEHOLDERS
ADVANTAGES OF STAKEHOLDER ANALYSIS

 It puts more ideas on table.

 It includes various perspectives from all sectors
and the elements of community affected.
 It gains support for the effort from all
stakeholders by making them as integral part of
development, planning, implementation and
evaluation.
 It saves you from being blindsided by concerns
you did not know about
 It increases credibility of your organization.
MARKETING RESEARCH
DEFINITIONS
 Marketing research is the collection, summary and analysis of the
data regarding the goods and services so that the behavior of the
consumers may be understood and-maximum satisfaction may be
provided to them.

 Philip Kotler: 'Marketing research is the systematic problem

analysis, model building and fact finding for the purpose of
improved decision making and control in the marketing of goods
and services’.

 Luck, wales and Taylor: 'Marketing research may be defined as

the application of scientific method to the solution of marketing
problems'.
IMPORTANCE OF MARKETING
RESEARCH
 Production of New Products
Marketing research explores the possibility of selling a new product
into a market and, thus, provides an opportunity to the enterprise to
start the production of this product. Production of a new product
help the enterprise in capturing the market substantially.

 New Uses of Products

Marketing research explores the new uses of the products of the
enterprise. The enterprise can widely publicize these alternative
uses of its product among the customers and thus, can create a new
market and new demands for its products.
CONT.
 Important Information About Customers
The most important role of marketing research is the study of
habits, tastes, attitudes and behavior of consumers. This study
helps the enterprise in understanding its customers-
• who are the customers?
• Why do they purchase the products of the enterprise?
• When and where do they purchase the products?
• For what do they purchase the products?
These information helps the enterprise in deciding its marketing
policies, strategies and program.

 Selection of the Channels of Distribution

Marketing research makes a comparative study of the terms of
conditions, way of working, popularity among consumers and
effectiveness of different channels of distribution. It helps in the
selection of a particular channel of distribution for distributing
its products.
CONT.
 Existence in Competitive Situation
Marketing research collects and analyses the data in respect
to the products and services offered by the competitors to the
consumers. It also studies their marketing policies and
programs. It evaluate the effectiveness of their policies in the
market. It helps in deciding its marketing policies and
programs. It also helps in making the necessary changes from
time to time in these policies and programs. It evaluates the
es so that the enterprise may face the competition
successfully.

 Knowledge of Demand
Marketing research makes a thorough study of the demand of
products of the enterprise. It deciding the nature and trend of
demand. It also helps in deciding the elasticity of demand.
Such study helps an enterprise in planning for the
distribution of goods and services at the right time and at the
right place.
CONT.
 Planned Production
As marketing research helps in making sales forecasts, the
enterprise can establish harmonious adjustment between the
demand and supply of its products.

 Improvement in the Quality of Products

Change in the need and want of the consumers is a regular feature
of the market. The consumers may discard the product tomorrow
which they prefer today. Therefore, it is imperative to be in
continuous touch with the changes in the habits, tastes and
attitudes of consumers. It is also necessary to be in continuous
fashion. Marketing research helps in this target.
 Discovery of Potential Markets

Marketing research makes an intensive and extensive search for

new markets for the products of an enterprise. It helps the
enterprise in developing new markets in turn increasing the demand
for its products.
TYPES OF MARKETING RESEARCH
 Product Analysis
its a detailed and a thorough study of the popularity of products
among consumers of an enterprise. This analysis helps the
enterprise in the study of the extent to which the quality,
characteristics, utilities form, design, colour, packing and price, etc.,
of its products meet the expectations, habits, tastes, attitudes, and
the standard of living of its consumers.
 Market Analysis
Market analysis is the study of markets available for a particular
product of an enterprise. Market analysis determines the quantity
that can be sold of a product in a market. It helps in determining the
channels of distribution, selection of salesmen, and the
determination of their sales territories.
CONT.

 Distribution Analysis
Distribution analysis is related with the analysis of different problems
related to the physical distribution of goods and services, such as
storage, transportation, advertisement, sales promotion, pricing policy
etc. The main aim of distribution analysis is to control the costs of
distribution and to provide the goods and services to the consumers at
the right place and at the right time.
 Competition Analysis
Competition analysis is the analysis of the competitive situations
prevailing in the market. It makes an analytical study in respect to the
characteristics, qualities, form, design, uses, packing, labelling, etc., of
the products of competitors. It also makes a study of the policies of the
competitors in respect to the prices, physical distribution,
advertisement, sales promotion and after sale services, etc.
CONT.
 Consumer Research
Consumer research is the research on the present and the potential
consumer of the enterprise. It makes a study of the different aspects
of the consumers, such as who are the consumers? Where do they
live? Why do they purchase? Where do they purchase? When do they
purchase? In what quantity? In addition to this ,dividing them on
the basis of their age, education, sex, income, caste, etc.

 Sales Analysis
Sales analysis includes collection of actual sales performance of a
salesman, determination of sales territories, analysis of the trend of
sales, analysis of the uses of products, analysis of the cost of sales,
etc.
CONT.
 Motivational Research
Motivational research is the study of the reaction of consumers or
society towards the products of an enterprise or the enterprise itself.
It is a difficult task in itself because sometimes the consumers are
not in a position to express their wants or feelings or why they feel.

 Advertisement Research
The importance of advertisements is increasing day-by-day. No
business and industrial enterprise can of success in its marketing
efforts without advertisement It is not enough to advertise, even
through the best available media. The evaluation of the effectiveness
of advertising programs and sales promotion is very important.
PROCEDURES OF MARKETING
RESEARCH
 Defining the Problem
The very first step of marketing research is to define the problem. It
is not possible to take a right decision unless and until the problem
is specifically identified and properly defined. While defining a
problem, a careful study of all the internal and external factors must
be made. After this, the problem must be analyzed.
 Situation Analysis
The second step in the process of marketing research after the
problem has been defined is the study of the relevant factors
affecting the problem. It includes the analysis of the situation
prevailing in the enterprise, markets and the whole industry. The
competitive situations are also analyzed.
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 Checking the Available Sources of Information
After this, attempts are made to know the sources of
information that may be used to solve the problem. These
sources must be thoroughly checked so that the right
information can be made available for the solution of the
problem.

 Collection of Data
After preparing a plan of marketing research, a collection of
the required data is a very important step. The sources of
collection of data can be divided into two parts as follows:
1. Internal sources : include the records of the company,
reports of the salesmen, correspondence with customers, etc.
2. External sources : include the data collected by one
enterprise and published by another enterprise.
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 Tabulation of Data
After collecting the data, these are tabulated so that a comparative
and an analytical study of the data can be made.

 Analysis and Interpretation of Data

After collecting and tabulating the data, they are analyzed and
interpreted. Such analysis and interpretation leads to important
decisions. After this, the decisions are arrived at in the light of the
problem. This is a very important step in marketing research
because a marketing manager gets relevant information for the
solution of a problem only through such analysis and interpretation.
CONT.
 Preparation of Research Report

After arriving at the conclusions, a research report must be

prepared by the research scholar. This report should neither be very
lengthy nor very short. This report must contain all the facts and
conclusions of the research undertaken the research scholar should
consult the marketing manager before preparing such a report so
that the report may contribute in the process of decision-making
This report must clearly specify the objectives and the scope of
research so that no doubt may arise at any stage.
 Follow up of the Report

Though the process of marketing research is completed with the

preparation of the research report but produce the best results for
the enterprise. it is also important that an effective implementation
of the decisions arrived at during the course of the marketing
research must be ensured and chased by the marketing manager so
that the research may produce the best results.