age | 1 CreaLed 8y Sadaf Masood Ahmed

Submitted to:
Dr.Iauzia Hasan

Subject:
Pharmaceutical Management and Marketing
PH1-704

Submitted by:
Sadaf Masood Ahmed

Roll no.:
LP-07S0068

Class:
S
th
proff. 2
nd
semester

Date:
29
th
Nov, 20JJ


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Acknowledgment

I would like to thank Almighty ALLAH
for this life and the opportunities He gave
us. 1hanks to University of Karachi,
faculty of Pharmacy for polishing us from
stones to Gems. I would like to thank my
teacher Dr. Iauzia Hasan for being so
nice to us and guided us at every step
because of which I was able to complete
this Assignment.

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Pharmacy
Layout
Design
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Objective of layout design
Areas that our pharmacy consultants ocus on include:
Adise on starting a pharmacy business
Attorney selection
Budget reiew
Pharmacy business plan reiew and assistance
Pharmacy business structure design
Cash low analysis
Competitor analysis
Disaster preention planning
Lmployee training and deelopment
lacility planning
Goal deelopment
Idea deelopment and ealuation
Location selection
Logistics planning
Marketing plans
Policy & procedure deelopment
Process design
Regulatory compliance
Risk assessment
Pharmacy staing requirements and modeling
1echnology ealuation
Vendor selection and relations

PHARMACY DLSIGN, LAYOU1, AND
MLRCHANDISING
Most consumer purchases in pharmacies are not planned ery ar in adance.
Pharmacy managers use pharmacy design, layout o ixtures, and merchandising o
products to aect the purchasing behaiors o their customers. Studies hae shown
that more than 80 percent o all purchases are made by people who less than a week
beore their purchases were not planning to buy these particular items ,Lisenpreis,
1983,. 1he primary reasons why consumers make unplanned purchases are
emergencies ,running out o a needed item,, latent buying interests brought on by a
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good price or a new product, and impulse purchases ,buying on a whim to try
something new or dierent,. An important contribution to sales success isthe store
design and layout o merchandise. Getting medical equipment, blood glucose
monitors, or natural products,. 1hese departments oten are placed near the
prescription department or the conenience o both the patient and the pharmacist.
1he Americans with Disabilities Act ,ADA, o 1990 has aected almost all
businesses, including pharmacies. 1his ederal mandate prohibits discrimination based
on any orm o disability. 1o comply with the ADA, pharmacies may be required to
adjust counter heights, aisle widths, telephone equipment, doorways, and almost any
other physical aspect o their operations. 1he act allows or reasonableness in
designing stores without undue hardship on daily operations. 1he design goal is to
hae a store that oers equal access to all products and serices or all customers
,Laskoski, 1992,.
1he leath Insurance Portability and Accountability Act ,lIPPA, is a ederal mandate
designed to protect the conidentiality o patient inormation. lIPPA considerations
in the design and layout o a pharmacy are to ensure that disclosure o protected
health inormation is minimized. Pharmacy managers are to make reasonable eorts
to protect the priacy o their patients. Some o the eorts made by pharmacy
managers include installation o a partition extending the height o the pharmacy
counter, redesigned storage areas or prescriptions that are waiting to be picked up by
customers, designated staging areas or patients waiting to be sered by pharmacy
sta, and priate patient consultation areas. Internal and external enironmental
actors play a major role in the design and layout o a pharmacy. 1he age, race, sex,
and income leels o consumers are important characteristics that should be
addressed. Addressing the needs o a predominant ethnic or age group is beneicial in
attracting these potential patrons to a pharmacy. lor example, elderly people may be
more likely to patronize a pharmacy that has a large section o durable medical
equipment.
Designing the exterior o a pharmacy is just as important as design and layout o the
interior. \hen designing the exterior o a pharmacy, one must consider legal
requirements, local codes or ordinances that goern materials, the number and sizes
o windows, external signage, and the number and placement o doorways. 1he
exterior design o a pharmacy may need to complement other stores in a shopping
center. Many shopping centers place restrictions on the exterior designs o their
stores. Pharmacies commonly will try to add deining eatures ,e.g., signage and
lighting, that allow their stores to be recognized easily. 1he placement o entrances
and exits to the shopping center is key to the ease o getting to the pharmacy. 1he
traic patterns and placement o traic signals on the roads adjacent to the shopping
center aect the conenience o shopping in the pharmacy. Pharmacy managers oten
negotiate with local oicials to hae traic signals at or near the entrance and exit o
the center.
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1he traic pattern o a shopping center will inluence the placement o entrances and
exits o the pharmacy. Pharmacy managers wish to maximize the number o patrons
that ind their store once they are in the shopping center. Pharmacies oten desire to
be located next to a grocery store or other high-traic stores to attract cross-shoppers.

Pharmacy Layout
A pharmacy`s layout contains numerous cues, messages, and suggestions that
communicate to shoppers. A pharmacy manager`s goal is to create a mood that
welcomes customer traic, increases time spent browsing ,yet not wasting time
searching or needed items,, encourages customers to make more purchases than
originally planned, and inites them to return to the pharmacy in the uture.
1he layout or arrangement o in-store ixtures should be designed to moe patrons
around the pharmacy to obtain the items they need or desire. Ideally, customers
should isit as many areas o the pharmacy as possible to increase the probability o
impulse purchases. Pharmacy layout should capitalize on the strengths o the
prescription department and pharmacist because they are what make pharmacies
unique rom other retail outlets. Pharmacy layout should hae the prescription
department ery prominent and isible topatrons in any part o the store ,lig. 23-1,.
Ideally, consumers should trael past a ariety o merchandise on their way to the
prescription department. 1his explains why many prescription departments are
located in the rear o a pharmacy. \hile this layout is popular with pharmacy
managers, it is not always popular with consumers. lor example, some elderly patrons
may ind it diicult to walk through the entire store to get to the prescription counter.
1hey may choose to use the drie-through window or requent a pharmacy that has
the prescription counter in the ront o the store. 1he demographics o the population
that shops the pharmacy will be ery inluential to the design o a pharmacy and
prescription counter ,\alker, 1996,. Gaedeke and1ootelian ,1993, discussed two
types o store layouts: grid and ree low. In a grid layout, all the counters and ixtures
are at right angles to one another. Merchandise is displayed in straight, parallel lines,
encouraging maximum trael time in the aisles and maximum product exposure. 1he
ree-low layout groups merchandise and ixtures into patterns that allow or an
unstructured low o customers. Many o the ixtures are irregularly shaped circles,
arches, and triangles. 1his design is used oten in git and specialty stores, mostly
encouraging browsing and impulse buying. Grid layouts are more common in
community pharmacies than ree-low layouts. Aisles are set in straight-line grid
arrangements with key departments or serice areas located to encourage shoppers to
isit the our corners o the store.Departments are arranged to place high-demand
items in the rear o the store, promoting traic past lower-demand and
impulsepurchase items. In grid layouts, the prescription department oten is located in
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the back o the store, adjacent to high-demand oer-the-counter ,O1C, items mand
other items that may sell better i accompanied by a recommendation rom a
pharmacist ,e.g., durable medical equipment or natural products,. Department
placement is done with the intent to entice customers to purchase more than they had
intended originally. Some locations in a pharmacy tendto attract more traic. ligh-
traic areas are a good place to generate additional sales with placement o new
product displays or impulse items. In pharmacies, placement o impulse items near or
on the prescription counter may increase sales o these items owing to the increased
traic in that area o the store. In almost any retail business, the risk o thet o
merchandise ,both by shoppers and by employees, is always present. Pharmacy
managers can use store design and layout to minimize losses rom thet. lighcost and
other items that may be liable to thet generally are placed in open areas where store
personnel can obsere both the items and shoppers easily. Pharmacies are increasingly
using locked cabinets to store items that are liable to thet ,e.g., smoking-cessation
products and weight-control products,. Most states also hae enacted laws that
require products containing psuedoepherine be kept behind the pharmacy counter
despite the act that it technically has O1C drug status. 1his has been done to
decrease the thet and inappropriate use o psuedoepherine, particularly in the
production o methamphetamine. Lorts should be taken not to place high-cost and
high-thet items in corners ,which are more diicult or personnel to see, or near exits
,where it would be easier or shoppers to steal an item leae without being noticed,.
Many pharmacies use store security personnel, ideo sureillance equipment, one-way
mirrors, and een sensors embedded in products to detect and preent losses o
merchandise.

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1ypes of community pharmacies
Community pharmacy practice
O lilling o prescription medications based on physicians` orders
O Compounding o prescription medications
O Oer-the-counter medications
O utritional supplements
O Oering and Ftting durable medical equipment
O Inormation about prescriptions medications
O Inormation about O1C medications
O Inormation about nutritional supplementation
O lealth and beauty aids
O Greeting cards
O Disease-state management
O Prospectie drug utilization reiew
O Counseling on prescription drug use
O Adjudication o claims with third-party payers
O Proision o medications to nursing home residents
O Special conenience packaging ,e.g., bubble packs,
O Screening or drug interactions
Institutional pharmacy practice
O lilling o prescription medications based on physicians` orders
O Compounding o prescription medications
O Preparation o intraenous medications and solutions
O Deliery o medications to noors
O Oersight and inentory o controlled substances
O Collection o orders rom hospital noors
O Drug eent monitoring
O lormulary management
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O 1herapeutic interchange
O Prescription medication counseling
O Medication use ealuation
O lilling o prescription medication carts
O Drug inormation to physicians and other health care proiders
O 1otal parenteral and enteral nutrition
O Stocking o emergency crash carts
O Pharmacokinetic dosing
O Clinical drug trials
Consumer Goods
Consumer goods are alternately called inal goods, and the second term makes more
sense in understanding the concept. Lssentially, consumer goods are things purchased
by aerage customers, and will be consumed or used right away. 1his is in contrast to
other types o goodscalled intermediate goods. Intermediate goods are products
produced or things sold that will be used in the making o something else by another
manuacturer or an assembler. lor instance, abric produced rom cotton might be an
intermediate good. 1he clothing made rom the abric would be consumer goods,
since it has reached its inal destination: the consumer.
1he issue o consumer goods is most important in assessment o Gross Domestic
Product ,GDP,, basically a yearly measurement o what is purchased ,consumed,,
made, inested, and what is spent by the goernment. Lconomic analysts can parse
out the dierent types o goodsthat are included in the GDP, and look at how each
area is perorming. So or instance, a decline in the sale o consumer goods would
indicate people aren`t spending as much on mostconsumer items, which can include
on ood, automobiles, clothing, electronics, and a host o other things.


1ypes of Consumer Purchase Decisions
Consumers are aced with purchase decisions nearly eery day. But not all decisions
are treated the same. Some decisions are more complex than others and thus require
more eort by the consumer. Other decisions are airly routine and require little
eort. In general, consumers ace our types o purchase decisions:
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O Minor ew Purchase - these purchases represent something new to a consumer
but in the customer`s mind is not a ery important purchase in terms o need,
money or other reason ,e.g., status within a group,.
O Minor Re-Purchase - these are the most routine o all purchases and oten the
consumer returns to purchase the same product without giing much thought
to other product options ,i.e., consumer is brand loyalty,.
O Major ew Purchase - these purchases are the most diicult o all purchases
because the product being purchased is important to the consumer but the
consumer has little or no preious experience making these decisions. 1he
consumer`s lack o conidence in making this type o decision oten ,but not
always, requires the consumer to engage in an extensie decision-making
process..
O Major Re-Purchase - these purchase decisions are also important to the
consumer but the consumer eels conident in making these decisions since they
hae preious experience purchasing the product.



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Sales
Management

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Sales management is a business discipline which is ocused on the practical application
o sales techniques and the management o a irm's sales operations. It is an important
business unction as net sales through the sale o products and sericess and
resulting proit drie most commercial business. 1hese are also typically the goals
and perormance indicators o sales management.Sales manager is the typical title o
someone whose role is sales management. 1he role typically inoles sales
planning, human resources, talent deelopment, leadership and control o resources
such as organisational assets.

Defining Personnel Management
1here are many deinitions o personnel management, but all basically say that it is:
attracting and deeloping competent employees and creating the organizational
conditions which result in their ull utilization and encourages them to put orth their
best eorts.
1wo major points about personnel management are implied in this deinition. lirst,
eectie personnel management must be uture oriented. Support or organizational
objecties now and or the oreseeable uture must be proided through a steady
supply o competent and capable employees. Second, eectie personnel management
is action oriented. 1he emphasis must be placed on solution o employment issues
and problems to support organizational objecties and acilitate employee
deelopment and satisaction
PLRSONAL SLLLING
According to the U.S. Department o Labor`s Bureau o Labor Statistics, people
working in sales number close to 12 million, or about 10 percent o the total
workorce in the United States. Personal selling is critical to the sale o many goods
and serices, especially major commercial and industrial products and consumer
durables, and can be deFned as: Direct communications between paid representaties
and prospects that lead to transactions, customer satisaction, account deelopment,
and proFtable relationships.
1he relationships between selling and other elements o the marketing mix are
highlighted in Marketing programs are designed around our elements o the
marketing mix: products to be sold, pricing, promotion, and distribution channels.
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1he promotion component includes adertising, public relations, personal selling, and
sales promotion ,point-o-purchase displays, coupons, and sweepstakes,. ote that
adertising and sales promotions are nonpersonal communications, whereas
salespeople talk directly to customers. 1hus, where adertising and sales promotion
pull` merchandise through the channel, personal selling proides the push` needed
to get orders signed. \ith public relations, the message is perceied as coming rom
the media rather than directly rom the organization. Personal selling inoles two-
way communication with prospects and customers that allows the salesperson to
address the special needs o the customer. It is oten the job o a salesperson to
uncoer the special needs o the customer. \hen customers hae questions or
concerns, the salesperson is there to proide appropriate explanations. lurthermore,
personal selling can be directed to qualiFed prospects, whereas a great deal o
adertising and sales promotions are wasted because many people in the audience
hae no use or the product. Perhaps the most important adantage o personal
selling is that it is considerably more eectie than adertising, public relations, and
sales promotion in identiying opportunities to create alue or the customer and
gaining customer commitment. 1he person responsible or management o the Feld
sales operation is the sales manager. le or she may be a Frst-line manager, directly
responsible or the day-to-day management o salespeople, or may be positioned at a
higher leel in the management hierarchy, responsible or directing the actiities o
other managers. In either case, sales management ocuses on the administration o the
personal selling unction in the marketing mix. 1his role includes the planning,
management, and control o sales programs, as well as the recruiting, training,
compensating, motiating, and ealuating o Feld sales personnel. Sales management
can thus be deFned as: 1he planning, organizing, leading, and controlling o personal
contact programs designed to achiee the sales and proFt objecties o the Frm. O
whether the sales manager directs salespeople or other sales managers, all managers
hae two types o responsibilities
Achieing or exceeding the goals established or perormance in the current period
Deeloping the people reporting to them
Lach o these responsibilities includes a number o more speciFc unctions and
actiities that will be discussed throughout this book. ow it is important that you
understand the context in which sales managers execute these two responsibilities. In
the next section we discuss some o the more consequential changes taking place in
the marketplace and in selling operations.


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Customer service
Customer serice is the proision o serice to customers beore, during and ater a
purchase.
According to 1urban et al. ,2002,,
|
Customer serice is a series o actiities designed
to enhance the leel o customer satisaction - that is, the eeling that a product or
serice has met the customer expectation."
Its importance aries by products, industry and customer, deectie or broken
merchandise can be exchanged, oten only with a receipt and within a speciied time
rame. Retail stores oten hae a desk or counter deoted to dealing with returns,
exchanges and complaints, or will perorm related unctions at the point o sale, the
perceied success o such interactions being dependent on employees "who can adjust
themseles to the personality o the guest,"according to Micah Solomon quoted
in Inc. Magazine.
lrom the point o iew o an oerall sales process engineering eort, customer
serice plays an important role in an organization's ability to generate income and
reenue. lrom that perspectie, customer serice should be included as part o an
oerall approach to systematic improement. A customer serice experience can
change the entire perception a customer has o the organization.
Some hae argued that the quality and leel o customer serice has decreased in
recent years, and that this can be attributed to a lack o support or understanding at
the executie and middle management leels o a corporation and,or a customer
serice policy. 1o address this argument, many organizations hae employed a ariety
o methods to improe their customer satisaction leels, and other KPIs


$,0857424943
Sales promotions are short-term incenties to encourage the purchase or sale o a
product or serice.
Sales promotion includes seeral communications actiities that attempt to proide
added alue or incenties to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. 1hese eorts can attempt to stimulate
product interest, trial, or purchase. Lxamples o deices used in sales promotion
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include coupons, samples, premiums, point-o-purchase ,POP, displays, contests,
rebates, and sweepstakes.
Sales Promotion Strategies
1here are three types o sales promotion strategies: Push, Pull, or a combination o
the two.
A push strategy inoles conincing trade intermediary channel members to "push"
the product through the distribution channels to the ultimate consumer ia
promotions and personal selling eorts. 1he company promotes the product through
a reseller who in turn promotes it to yet another reseller or the inal consumer. 1rade-
promotion objecties are to persuade retailers or wholesalers to carry a brand, gie a
brand shel space, promote a brand in adertising, and,or push a brand to inal
consumers. 1ypical tactics employed in push strategy are: allowances, buy-back
guarantees, ree trials, contests, specialty adertising items, discounts, displays, and
premiums.

A pull strategy attempts to get consumers to "pull" the product rom the
manuacturer through the marketing channel. 1he company ocuses its marketing
communications eorts on consumers in the hope that it stimulates interest and
demand or the product at the end-user leel. 1his strategy is oten employed i
distributors are reluctant to carry a product because it gets as many consumers as
possible to go to retail outlets and request the product, thus pulling it through the
channel. Consumer-promotion objecties are to entice consumers to try a new
product, lure customers away rom competitors` products, get consumers to "load up"
on a mature product, hold & reward loyal customers, and build consumer
relationships. 1ypical tactics employed in pull strategy are: samples, coupons, cash
reunds and rebates, premiums, adertising specialties, loyalty programs,patronage
rewards, contests, sweepstakes, games, and point-o-purchase ,POP, displays.
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,a, uy-One-Get-One-Iree (OGOI) - which is an example o a sel-liquidating
promotion. lor example i a loa o bread is priced at >1, and cost 10 cents to
manuacture, i you sell two or >1, you are still in proit - especially i there is a
corresponding increase in sales. 1his is known as a PRLMIUM sales promotion tactic.
,b, Customer Relationship Management (CRM) incenties such as bonus points
or money o coupons. 1here are many examples o CRM, rom banks to
supermarkets.
,c, New media - \ebsites and mobile phones that support a sales promotion. lor
example, in the United Kingdom, estle printed indiidual codes on KI1-KA1
packaging, whereby a consumer would enter the code into a dynamic website to see i
they had won a prize. Consumers could also text codes ia their mobile phones to the
same eect.
,d, Merchandising additions such as dump bins, point-o-sale materials and product
demonstrations.
,e, Iree gifts e.g. Subway gae away a card with six spaces or stickers with each
sandwich purchase. Once the card was ull the consumer was gien a ree sandwich.
,, Discounted prices e.g. Budget airline such as LasyJet and Ryanair, e-mail their
customers with the latest low-price deals once new lights are released, or additional
destinations are announced.
,g, Joint promotions between brands owned by a company, or with another
company's brands. lor example ast ood restaurants oten run sales promotions
where toys, relating to a speciic moie release, are gien away with promoted meals.
,h, Iree samples ,aka. sampling, e.g. tasting o ood and drink at sampling points in
supermarkets. lor example Red Bull ,a caeinated izzy drink, was gien away to
potential consumers at supermarkets, in high streets and at petrol stations ,by a
promotions team,.
,i, Vouchers and coupons, oten seen in newspapers and magazines, on packs.
,j, Competitions and prize draws, in newspapers, magazines, on the 1V and radio,
on 1he Internet, and on packs.
,k, Cause-related and fair-trade products that raise money or charities, and the less
well o armers and producers, are becoming more popular.
,l, Iinance deals - or example, 0 inance oer 3 years on selected ehicles.
Many o the examples aboe are ocused upon consumers. Don't orget that
promotions can be aimed at wholesales and distributors as well. 1hese are known
as 1rade Sales Promotions. Lxamples here might include joint promotions between
a manuacturer and a distributor, sales promotion lealets and other materials ,such as
1-shirts,, and incenties or distributor sales people and their retail clients.