Internal and External Influence on Consumers of General Anesthesia Products - Case Study Example

Marketing Criteria Name: Tutor: Course: Date: Table of Contents Marketing Criteria 1 Name: 1 Tutor: 1 Course: 1 Date: 1 Table of Contents 2 1.0 Introduction 3 2.0 Internal and External influence on consumers 3 2.1 External Influences 3 2.2 Internal influences 4 3.0 Selection of a target market 4 3.1 Situational Influences 4 3.2 Decision process influences 4 4.0 Product Positioning 6 4.1 Internal Influences 6 4.2 Decision-Process Influences 6 5.0 Marketing Mix 7 5.1 Product 7 5.2 Customer Satisfaction and Commitment 8 5.3 Pricing 8 5.3 Distribution Strategy 9 5.5 Promotional Strategy 10 References 12 1.0 Introduction Consumers tend to purchase a brand that is familiar irrespective of a safe or effective alternative. Culture of the people involves their set of beliefs and values which shape their perception of anesthesia product. Perceptions are based on familiarity, motivations, previous experience and values. The consumer expected and perceived service quality differ among consumers. Anesthesia products are mainly used in hospitals to induce sick patients to sleep prior to operations (Kotler, 2000). The situation is specific to place and time of application. 2.0 Internal and External influence on consumers 2.1 External Influences Consumer behavior’s external influence constantly revolves on name recognition and marketing. The external factors that influence consumer behavior are values, culture, income, demographics, social class, households, reference groups and marketing activities (Dibb & Simkin, 2013). For example, the ingredients in generic healthcare products are virtually indistinguishable from the ingredients in name-brand products. All over the counter pharmaceuticals must meet legal requirements but people tend to buy a product with familiar brand names. For example, the religious belief among some religious sects not to consume pharmaceutical products influences their behavior towards medicinal products in general (Schiffman, 2010). Demographics including age, gender, income, residence, and psychographic factors influence how people express their needs and make purchase decisions. Ultimately, the medium used for marketing matters since Television, radio, social media and word of mouth has implications on the target group (Kotler, 2000). Social media appeals to the youth of years 18-30 years while Television is preferred by children below 10 years and parents of over 35 years. Values affect judgments, behavior, actions and emotions. For example consumer values in medicine are influenced by terminal (internal) and instrumental (external) values. 2.2 Internal influences Internal influences influence consumer behavior. This category has consumer behavior revolving around self-image, attitudes, personality, lifestyle, need, desire and perception. It is based holistic economic perception and not individual financial assets (Hawkins et al. 2006). Ethnic and regional differences also define internal influences. For example, in bad time people tend to save but will express a tendency to spend in good times. To a majority of individuals in a neighborhood or region known to purchasing a certain brand of anesthesia drugs will have the sales of the product remaining constant. This does not arise from better, healthier or cheaper products but buying a similar product to that of his or her peers makes the individual feel part of the social or cultural fabric. The feeling of belonging emanate from issues ranging from the simplest actions to security of a group (Weinstein, 2013). A favorable perception of a product such as Amphetamines in the US will makes its sales improve compared to Oral drugs because of attitude and high regard of Amphetamines products. 3.0 Selection of a target market The target markets are pharmacies, individuals, government and private hospitals. In the chemists or pharmacies, it intends to sell to government hospitals while hospitals are the ultimate users as they cannot sell directly to individual consumers (Walters, Glenn & Bergiel, 2009). 3.1 Situational Influences This includes factors such as time, antecedent, social and task. Anesthesia products are recommended for patients requiring minor or major surgeries. It works in any group irrespective of age, gender and other affiliations (Schiffman, 2010). The task is specifically medical and is not used for home or other uses except with directions from a qualified physician or a doctor. 3.2 Decision process influences Needs analysis or problem recognition: Pharmaceutical products such as anesthesia drugs became popular due to the need to conduct painless surgical operations in hospitals. The drugs became necessary in surgical rooms to induce sleep and allow for seamless operations. Information search: This involves searching for information from various sources such as electronic, print, word of mouth, family, friends, testimonials, referrals and social media. These medium provides information regarding the effectiveness of the drugs (Kotler, 2002). Medical practitioners evaluate the effectiveness through samples from various suppliers from a medical directory. Alternative solution: The alternative solutions to conducting a painless surgical operation are use of tranquilizers, painkillers, and herbs. These alternatives are evaluated in terms of effectiveness and efficiency. The options are assigned weights and assessed in terms of cost and benefits. A type of drug with more benefits as opposed to costs is chosen. Anesthesia has limited side effects and is more effective. Some religious groups use herbs which they perceive as conforming to their faith (Huitt, 2011). Outlet selection: The best selection for outlets is standalone chemists, hospital pharmacy and stores. The outlets define B2B or B2C distribution which is effective and efficient in delivery of pharmaceutical products before their expiry dates. Most outlets in B2C are accessible 24 hours a day. Purchase decision: This is making the actual decision to buy the product. Anesthesia products are bought under strict instructions from government bodies and medical regulators. The decision aspects are when, where and what kind of drugs to buy (Schiffman, 2010). A common and familiar brand is an easier option for procurement officer at the medical facility. Post-purchase processes: Evaluating and assessing the effectiveness of the sales process and the performance of the anesthesia rugs. When the products have been found to be effective, the company will have more testimonials and referrals (Schiffman et al.2013). The behavior of sales staff will also influence the attitude and behavior of the buyer to continue buying from the pharmaceutical company. 4.0 Product Positioning 4.1 Internal Influences Anesthesia product is a niche market product used mainly for sedative purposes in medical facilities and administered by a qualified physician or a doctor. The patient has all the trust and confidence laid on the practitioner and not the product. In fact, few patients know about the product but it is largely understood by the practitioners. To those in the know, the product is effective and convenient (Schiffman, 2010). It is also cheap and has no side effects on the patient. The brand matters when selling to government or private pharmacies and hospitals. The perception of patients in private hospitals is that the drug is highly effective than in public hospitals. 4.2 Decision-Process Influences This identifies the need to position the product as sedative and effective in hospital setting. It is positioned as responsive within a few minutes with no side effects. The criteria used in the purchase decision are; reliability, responsiveness, minimal side effects, high performance and gentle to the patient. The decision rules now depend on the place of sale, price and presence of prescription labels showing the contents of individual chemicals. The product is procured depending on the type of surgical operation and length of time taken for the operation (Samli, 2012). Other factors are attention of staff, packaging, mode of delivery and customer service. Once the buyer obtains that the staff, product packaging, after sale services are adequate, they will position the product as effective and convenient. The product is positioned as general anesthesia products and differentiated from local anesthetics, muscle relaxants and the intravenous opioid analgesics. Customers who are mainly individuals buy the latter three but registered medical units use the former (Dibb & Simkin, 2013). The motives driving buyers to buy general anesthesia drugs is performance and effectiveness since they are no end organ toxicity and irritation to respiratory pathways. The product carries with it some emotional element since it is specific to each and every patient (Parsons & Maclaran, 2009). The buyers who happen to be the procurement officials from the private or public hospitals have perceptions on the performance of each drug hence adopting a negotiated and probing personality. Hospitals have developed a positive attitude for the general anesthetics given their tranquilizing nature with minimal side effects (Hawkins et al. 2006). General anesthesia products are differentiated from the competitors like muscle relaxants, local anesthetics and intravenous opioid analgesics products due to their lower blood solubility and rapidity in titrating anesthesia depth, and faster emergence of a patient from anesthesia. The product is positioned as harmless and considered for short surgical operations (Myers, 2006). The buyer attitude towards general anesthesia is positive as the patients takes less time to recover from the sedative state. 5.0 Marketing Mix 5.1 Product General anesthesia products are designed for all age and gender groups but administered depending on the concentration and quantity. The point of divergence is when applying the product based on age. Children take lesser of the chemical than the youthful or aged people. The product is an innovation which has made a turnaround in the healthcare industry (Martins & Terblanche, 2003). There are also the local anesthetics used to reverse the effects of general anesthesia. The product has the relative advantage of diffusion given that it falls under physiological needs as healthcare. Matters healthcare are of primary concern hence any innovation is a likely to trigger a rapid diffusion. The product is designed to meet the needs of various conditions such as epilepsy, surgical operations and blood transfusion. The product is used at varying degrees for children, adults and women (Parsons & Maclaran, 2009). General anesthesia is perceived as cool, responsive and reliable anesthetic product. For any complications in children and adults, the buyers who are hospitals will procure quantities depending on the demand of the product. The motives and needs will be addressed once they are found effective and show minimal side effects (Dibb & Simkin, 2013). Hospitals have a strong positive attitude towards the product hence recommends for hospital use only. The self-concept of the buyer (hospital) is closer to the actual self-concept of the product (general anesthesia). The product is appropriate to be used in hospital circumstances only directed by a doctor or qualified physician. The product is only used when putting the patient to sleep before an operation is undertaken. The common segments are Hospital (maternity and general medicine) and individuals (recreational use) (Weinstein, 2013). General anesthesia product is effective when used for short timed operations compared to muscle relaxants, local anesthetics and intravenous opioid analgesics products for both children and adults. Customized quantities may be required for the patients with some other chronic illnesses like recreational use, treatment of anaemia, asthma and epilepsy. As it gains more uses, the product will see increased role in the treatment of more serious rapid ailments such as brain and heart surgeries (Hawkins et al. 2006). The product is on high demand as more patients require surgeries on maternity and general medicine. 5.2 Customer Satisfaction and Commitment The factors are reliability, responsiveness, faster relieve from pain, minimal side effects and low toxicity levels. These are circumstances that will render the medical practitioners to choose a certain general product for a child, adult, pregnant woman, and person with a conditional disease. The hospitals will be committed to certain general anesthesia brands that they find convenient, emphatic, responsive and favorably priced (Parsons & Maclaran, 2009). The commitment is likely to be a long term relationships given the number limited presence of suppliers in the healthcare sector. 5.3 Pricing Pricing is a key determinant to price sensitive customers (Huitt, 2011). The common brands are Diprivan, Antiq, Durogesic and Sublimaze. These brands allow for supplies on credit as they arrange to make payments at the end of each month. Hospitals especially private wings have adequate income to sustain purchase of general anesthesia products after other deductions have been made. Individuals using the product for recreational use will afford only during surplus income. The product is highly inelastic hence will not change its demand when supply is increased and vice versa. It means that a consistent supply will keep the price levels affordable to all the segments (Hawkins, 2007). Temporary price reductions will increase purchases from hospitals for who will find it affordable for referral cases. The recreational segment will tremendously increase since their buying pattern is sensitive to pricing. Price is perceived as an indicator of status given that the segment which affords to purchase in larger quantities are treated are special customers will possibilities of customer loyalty cards, after sale services and awards. Economy is a determinant of pharmaceutical manufacture since higher interest rates and inflation rates will increase the prices of the product (Huitt, 2011). Places experiencing rapid economic growth have many of basic products such as medicine subsidized. Price determines the attitude towards the brand. A brand that is highly priced in the healthcare sector is perceived as good quality and effective. For the recreational segment, the elder member of the household offers an informed opinion on the product price while in the hospital segment; the procurement officer provides the solution to product pricing. A reasonable price to the individual user is much lower than institutional consumers like hospitals. Prices vary depending on the type of operation and use of the product (Hawkins et al. 2006). Greater quantities will be used for adults requiring surgical treatment. Price is not a major trigger but product mix has greater influence on problem recognition. Lowering the price to an inelastic product like medicine may refer low quality or inadequate chemical composition. Price remains a strong criterion in general aesthetic product. The decision rule is based on the brand name that delivers the best product. Here, price serves as a surrogate indicator of quality. Since general anesthesia is not a mass consumption it falls under the category of low volume low consumer product. The application in medical field limits its use by normal health people (Huitt, 2011). They also cannot administer to themselves or administered by unqualified person. Consumers like hospitals and individuals will likely buy more when prices are reduced. 5.3 Distribution Strategy The mode of distribution is both B2B and B2C. Companies may choose to supply to pharmacies which later sells to hospitals and individuals. They can also choose to supply directly to the hospitals. Supply to individuals means immediate gratification but to the hospitals, it means continued relationships with customer focus, integrity and honesty being cherished (Weinstein, 2013). The males and females have no different requirements of the distribution system since the hospital remains a common buyer to both male and female. For recreational use, individual buyers include couples and families who oversee each other’s activities. It is difficult to find single individuals consuming the product. B2C distribution capitalizes on reference groups since they are able to obtain adequate product information and pricing (Hawkins, 2007). Individuals meet to purchase the product. The product is sophisticated and requirements strict instructions hence prescribed and used under directions of qualified physicians. The outlets mainly chemists and pharmacies enhance the desired product position as they stand as avenues of legalized human medicine. For hospitals, B2C is convenient, individuals prefer B2C while chemists and pharmacies are for B2B. The distribution system is highly regulated and influenced by the government. Consumers are cautious in seeking this product and will take time to check on the product ingredients (Loudon et al. 2004). Evaluation of outlets is based on location, price and brand availability. The outlet is selected simultaneously with the product. 5.5 Promotional Strategy The values in communicating the general anesthetic product are customer focus, qualified use and conditional application. Communicating the product takes into consideration the gender roles for example choosing a sedative for a sick woman. Hospitals use doctors’ facial directions while individuals use facial impressions to show change of mood. Reference groups are not appropriate to be used on adverts since their condition is discouraging (Lamb et al. 2011). The ads will not make the product a part of role-related cluster. The product is innovative and has specialized usage which does not require much publicity. The elders in a family should receive information about general aesthetic as well as hospital practitioners. The promotional campaign is available on Television and health magazines exposed mainly to the health personnel. Individual segment is less exposed to the product. Messages are more inclined to product development and ingredients than the price. Listing all the ingredients in a label creates emotional satisfaction to users. The lifestyle in the TV ads depicts a hospital environment that requires empathy and respect. Attitudes towards the product are directed to practitioners more than individuals (Martins & Terblanche, 2003). The campaign exhausts the basics of advertising but lacks a competitive dimension. Problem recognition in this case happens naturally since it is a basic need. The segments will have to seek information about the product since it comes under different packaging for various applications. High-involvement learning is required since it is a delicate product and is provided in magazines and medical books. The brand will again matter after seeking the information. The information needed is product specification, composition of chemicals, preferable usage and time, caution and directions of use. The point of purchase requires establishing price, chemical content and brand (Myers, 2006). Post-purchase dissonance is unlikely since the product is anticipated to have minimal failure rate. Product manuals are supplied alongside the product to guide the user. The product fulfils the expectations of the marketing campaign. The messages are unwritten but naturally known to brand users who are delighted by its effectiveness. References Dibb, S. & Simkin, L 2013, Market Segmentation Success: Making It Happen!. Routledge. 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