Presentation about Dentistry

1. Marketing
The challenge of your life

2. It’s all about creativity
So, think outside the box

3. Questions to be asked:
• Who are our existing / potential customers?
• What are their current / future needs?
• How can we satisfy these needs?
• Can we offer a service that the customer would value?
• Can we communicate with our customers?
• Can we deliver a competitive service?
• Why should customers buy from us?

4. Defining Marketing
Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating, offering,
and freely exchanging products and services
of value with others.
- Philip Kotler
What?

5. What is Marketing?
The bridge that
closes the gap
between
customers and
producers
Real Definition:Real Definition:
““The delivery of customer satisfaction at a profitThe delivery of customer satisfaction at a profit.”.”
““Develop and maintain profitable relationshipsDevelop and maintain profitable relationships””
What?

6. Marketing Management
• Marketing management is “the art and science
of choosing target markets and building
profitable relationships with them.”
– Creating, delivering and communicating superior
customer value is key.
What? Who?

7. What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
What?

8. How?

9. Maslow’s Hierarchy of Needs

10. Need, Wants, Demands
• Need. A human need is a state of felt deprivation.
Examples include the need for food, clothing,
warmth and safety.
• Wants. Wants are how people communicate their
needs. A hungry person may want a hamburger,
noodles, or cheese and bread.
• Demands. When backed by buying power, wants
become demands.

11. 11

12. SWOT Analysis
• SWOT analysis is a tool for auditing an
organization and its environment.
• It is the first stage of planning and
helps marketers to focus on key
issues.
12

13. In SWOT ….
strength could be:
• Your specialists’ expertise.
• Location of your business.
• Quality of processes and procedures.
• Equipment, pricing, customers..
• Any other aspect of your business that
adds value to your service.
13

14. weakness could be:
• Lack of expertise.
• Undifferentiated services (i.e. in relation to
your competitors).
• Location of your business.
• Poor quality services.
• Damaged reputation.
• Financial constrains
14

15. opportunity could be:
• A developing market or growing economy.
• Moving into new market segments that
offer improved profits.
• A new international market.
• A market vacated by an ineffective
competitor.
15

16. threat could be:
• A new competitor in your home market.
• Price wars with competitors.
• A competitor has a new, innovative
product or service.
• Taxation is introduced on your product
or service.
16

17. Simple rules for successful
SWOT analysis
I. Be realistic about the strengths and
weaknesses of your organization when
conducting SWOT analysis.
II. SWOT analysis should distinguish between
where your organization is today, and where it
could be in the future.
III. SWOT should always be specific. Avoid grey
areas.
IV. Always apply SWOT in relation to your
competition
V. Keep your SWOT short and simple. Avoid
complexity and over analysis
VI. SWOT is subjective.
17

18. The STP Process
Market Segmentation
The subdividing of a
market into distinct
subsets of customers. Market Targeting
The process of evaluating
segments and selecting those
that are the most attractive to
pursue.Market Positioning
Determining how a brand is to
be perceived to fit into the lives
of its target customers.

19. Segmentation Bases
• Geographic
• Demographics
• Psychographics
• Geodemographics

20. Bases for Market Segmentation
Potential
Markets
Demographic Segmentation
Gender
Age
Family life cycle
Race/Ethnic group
Education
Income
Occupation
Family size
Religion
Home ownership
Descriptive
Behavioural
Geographic SegmentationGeographic Segmentation
CountryCountry
RegionRegion
Urban/Suburban/RuralUrban/Suburban/Rural
Population densityPopulation density
City sizeCity size
ClimateClimate
Psychographics SegmentationPsychographics Segmentation
LifestylesLifestyles
Psychological variablesPsychological variables::
PersonalityPersonality
Self-imageSelf-image
Benefit SegmentationBenefit Segmentation
Expected benefits from productExpected benefits from product
useuse
Usage RateUsage Rate
Heavy usersHeavy users
Brand loyaltyBrand loyalty

21. Criteria for Effective Segmentation
• Measurable: Descriptors and outcomes
• Substantial: Adequate size and sales potential
• Accessible: Efficiently reached and served
• Differentiable: Respond and behave differently
• Actionable: Compatibility with clinic
capabilities for creating a
sustainable advantage.

22. The STP Process
Market Segmentation
• Identify relevant descriptor and outcome segmentation variables.
• Segment the market using the identified segmentation variables.
• Profile each segment by descriptor and outcome variables..
Market Targeting
• Assess the attractiveness and competitive strengths of each segment.
• Prioritize and select which segments to target.
Market Positioning
• Identify potential positioning concepts for each target segment.
• Select, develop, and communicate the chosen concept.

23. Why is Marketing Segmentation
Important?
• Strategy
(What/who to focus on and why).
• Resource allocation
(How much and where should we spend?).
• Feedback/performance measurement
(Focuses monitoring and evaluation efforts)
Improved Business Effectiveness

24. Target Marketing Strategies (continued)
• Target market:
– A set of buyers sharing common needs or characteristics that the
company decides to serve
• Undifferentiated (mass) marketing:
– Market coverage strategy that ignores market segment
differences and targets the whole market with one offer
• Differentiated (segmented) marketing:
– Market coverage strategy that targets several market segments
and designs separate offers for each

25. Target Marketing Strategies (continued)
• Concentrated (niche) marketing:
– Market coverage strategy in which a company pursues a large
share of one or a few sub markets
• Micro marketing:
– The practice of tailoring products and marketing programs to the
needs/wants of specific individuals and local customer groups
– Includes: local marketing and individual marketing

26. The “WHO” of the 6 O’s
. WHO is in the Market ? OCCUPANTS
for consumer markets = all individuals, groups, households who
buy or acquire goods & services
Variables = age, personal tastes, education, mobility patterns, income
. WHO is involved in the Buying? ORGANIZATION
initiator
influencer
decider
buyer
user

27. Brand Image
Brand image is the collective perceptions of customers
about an organization’s brand positioning efforts
An organization's positioning efforts create a brand’s
image by overcoming information clutter, in most
cases minimal interest, and limited mental capacity.
The goal is to produce a “road map” of how and where
the brand fits into a person’s cognitive framework.

28. Brand Loyalty
Brand loyalty is a function of attitudes
and behavior. It is an attitudinal
predisposition favoring a brand and a
pattern of purchasing that brand
regularly

29. Brand Positioning
How a brand is perceived
by a target audience so that it is
distinguished from competition
as being the best at satisfying a
particular need.
Volvo

30. Brand Positioning
What do we mean by positioning?
A couple of definitions:
• Creating distinct and valued physical and
perceptual differences between one’s product
and its competitors, as perceived by the target
customer.
• The act of designing the firm’s market offering
so that it occupies a distinct and valued place
in the minds of its target customers.

31. Brand Differentiation
Creating meaningful differences between a
brand and its competitors in the minds of
consumers for satisfying a particular need.

32. Once a positioning strategy has
been determined, marketing
managers seek to control the 4 basic
elements of the marketing mix.
Since they are controllable, thus you
need to determine the best mix to
reach the targeted market

33. The Four P’s:
Components of
the Marketing
Mix
P 93

34. The 4 P’s
• Product – Services, Ideas
• Price
• Place – Distribution
• Promotion – Communication
33More P’s for ServicesMore P’s for Services
PeoplePeople
ProcessesProcesses
Physical EvidencePhysical Evidence

35. Price
Price is influenced by 3 main factors:
A- Direct & Indirect costs
B- Competition
C- Demand

36. Pricing Objectives
• Competitive pricing(match a main competitor or leader and differentiate quality)
• Prestige pricing
• Profitability pricing (price = revenues – expenses)
• Volume pricing
• Psychological pricing (Odd pricing)

37. Pricing Strategies
• Penetration pricing strategy
• Skimming pricing strategy
• Competitive pricing strategy
• Price shadowing
• Price coverage
• Price increase

38. Setting Pricing Policy
1- Selecting the pricing objective
2- Determining demand
3- Estimating costs
4- Analyzing competitors’ costs, prices, and
offers
5- Selecting a pricing method
6- Selecting the final price

39. A) Selecting the pricing method
Decide where you want to position yourself, the
clearer your objectives, the easier to set
prices. Will you position yourself at the high
end of the dental market?

40. B) Determining demand
The relation between demand and pricing is an
inverse relation, the higher the price, the
lower the demand. Yet in the case of prestige
services or a prestigious dental center in
general, the demand curve slopes upward.
(Remember that expensive perfumes sell
more than cheap ones). See page 98

41. C) Estimating Costs
The fixed costs like rental, electricity,
communications, salaries and the like. And
there are variable costs like the materials
used, maintenance of equipment, lab costs
and the like. You need to estimate your cost
for different services, for example, estimate
the cost of an endodontic treatment of a
single rooted tooth, a multiple rooted one and
so on

42. D) Analyzing competitors’ costs, prices and
offers
This step is done as a part of the market
research that you should perform. If your
services are within the range and quality
offered by competitors (no specific
differentiation in quality or differences in skills
or reputation), then your prices have to be in
range with competitors whether slightly
higher or lower.

43. E) Selecting a pricing method:
1- Mark Up Pricing: A percentage or lump sum added
over cost
2- Perceived Value Pricing: Based on patients’
perceived value of the service
3- Value pricing: Low price for high quality
4- Going rate pricing: Based on competitors’ pricing

44. F) Selecting the final price:
1- Psychological Pricing: Many patients use price as an
indicator of quality. When purchasing a specific
service or selecting a service provider (you), patients
carry in their minds a reference price formed by
noticing current prices, past prices, or the buying
context.
2- The influence of other marketing mix elements: The
final price must take into consideration your
reputation or clinic familiarity (consider it like brand
name for products) and advertisement relative to
competition.

45. The influence of other marketing mix
elements
1- Dentists with average skills and service quality but high
relative advertising budgets were able to charge premium
prices and had higher demand, Patients are willing to pay
higher prices for known dentists or at known dental clinics
than for unknown –or unfamiliar- ones even if they were
more skilled, have more experience, higher degrees, and
provide higher quality.
2- Dentists with high relative skills and service quality and at the
same time, high relative advertising budgets obtained the
highest prices.
3- The positive relation between high prices and high advertising
budget held most strongly for market leading dentists.

46. Promotion

47. Developing and Managing the Advertising
Campaign
The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement
• Objectives can be
classified by aim:
– Inform
– Persuade
– Remind
– Reinforce

48. Developing and Managing the Advertising
Campaign
The Five Ms of
Advertising
• Mission
• Money
• Message
• Media
• Measurement
• Factors considered when
budget-setting:
– Stage of service life cycle
– Market share and consumer base
– Competition
– Advertising frequency
– Product/service substitutability

49. Developing and Managing the Advertising
Campaign
The Five Ms of Advertising
• Mission
• Money
• Message
• Media
• Measurement
• Factors considered when
choosing the advertising
message:
– Message generation
– Message evaluation and
selection
– Message execution
– Social responsibility review

50. Developing and Managing the Advertising
Campaign
The Five Ms of
Advertising
• Mission
• Money
• Message
• Media
• Measurement
• Developing media strategy
involves:
– Deciding on reach, frequency, and
impact
– Selecting media and vehicles
– Determining media timing
– Deciding on geographical media
allocation

51. Developing and Managing the Advertising
Campaign
The Five Ms of
Advertising
• Mission
• Money
• Message
• Media
• Measurement
• Evaluating advertising
effectiveness
– Communication-effect
research
– Sales-effect research

52. Forms of Advertising
1- Advocacy Advertisement
2- Comparative Advertisement
3- Cooperative advertisement
4- WOM
5- Direct Mail or email ad. SMS, Facebook 6-
Informational Advertising which is used when a new service
is first being introduced in your clinic, the emphasis is on promoting the service
name, features and benefits

53. Forms of Advertising
7- Persuasive Advertising Persuasive advertising is used
after a service has been introduced to customers. The
primary goal is for a clinic to build selective demand for its
service. For example, you can often produce special
advertisements promoting the safety features and
sterilization procedures in your clinic, or the quality of
equipment and materials used, or the skillfulness of the staff
in your clinic. This type of advertisement could allow you to
charge more for their services because of the perceived
higher quality the safety features afford or the skillfulness of
your staff.

54. Forms of Advertising
8- Product/Service Advertising Product
advertising pertains to non-personal selling of
a specific product. An example is a regular
television commercial promoting a soft drink.
The primary purpose of the advertisement is
to promote the specific soft drink, not the
entire soft-drink line of a company. You can
do the same by advertising only your
bleaching service not your entire dental
services.

55. Forms of Advertising
9- Reminder Advertising Reminder advertising is
used for services that have been available for
a considerable time. The advertisements are
simply designed to remind customers about
the service and to maintain awareness. For
example, you can remind your customers to
visit you on quarterly basis for regular check
ups and hygiene procedures

56. Forms of Advertising
10- Specialty Advertising Specialty advertising is a form
of sales promotion designed to increase public
recognition of a clinic's name. A clinic can have its
name put on a variety of items, such as caps,
glassware, gym bags, jackets, key chains, and pens.
The value of specialty advertising varies depending
on how long the items used in the effort last. Most
clinics are successful in achieving their goals for
increasing public recognition and sales through these
efforts