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Dr. Nelson T.


Exercise 14

Selecting A Location And Positioning The Pharmacy

Key Terms

Convenience goods goods a customer usually purchases frequently, immediately, and with a minimum of efforts Examples: candy bars, cigarettes, and deodorants

Shopping goods usually means high unit price purchased infrequently, more intensive selling effort required on the part of the sales people, price and features compared, and sold in selective outlets. Examples:humidifiers, glucometer, and BP apparatus

Key Terms

Specialty goods usually means high unit price, purchased infrequently, requires a special effort on the customer to make the purchase, no substitutes considered, and sold in exclusive outlets. Are designed jewelry, name-brand time pieces, and certain imported goods Retail drugstore outlets selling pharmaceutical product in retail to consumers or end users

Key Terms

Independent drugstore It is defined broadly to include those establishments that are privately owned and whose function, in varying decrees, is to serve societys need for both product and pharmaceutical services. The owner or operator of a drugstore need not be a pharmacist although the license to operate requires a duly registered pharmacist per store outlet Competitive advantage strategies/tactics in order to keep competitors off-balance and to communicate effectively and delivers the chosen positioning in the target market

Key Terms

Positioning - refers to the attributes or characteristics and purchaser criteria which are perceived by the customers. Positioning means finding a market or submarket where your product can be leader or dominant player in the industry or market place. Also known as market niching or unique selling proposition Community shopping drugstore usually consists of 15 to 50 stores with an emphasis on both convenience and shopping goods, and trading area of about 10 to 20 minutes driving time from the center.

Possible competitive advantages for a pharmacy

A. Prescription drugs

Availability of medications to provide fast

dispensing Availability of generic drugs

B. Front-end merchandise
Assortment of merchandise stocked Selling a few grocery items

Novelty gift items not available elsewhere

Trendy merchandise

Seasonal merchandise

C. Prescription services

Speed dispensing Frequent filler program Offering trial doses Patient counseling Processing third-party claims Emergency prescription dispensing Information sheets on medication usage Records for tax purposes Maintenance of patient profile

D. Nonprescription services Speed of service Counseling of non prescription medications Relationships with care givers Money-back guarantee Return policies Special seminars

E. Prescription and nonprescription services Competitiveness Special discounts Cut rates on selective front-end merchandise Credit

F. Distribution Convenient location Pharmacy hours Delivery service Telephone and mail orders

G. Promotion Uniqueness of advertisements Big-prize giveaways Sidewalk sales Tie-ins with prescription drug purchase Contests Colorful shelf talkers Attention-grabbing point-of-purchase displays

H. Personnel Courtesy Friendliness Knowledgeable Helpfulness Accuracy Follow-up

1. Why is a location one of the most important decisions facing a pharmacy owner?

A good location is one of the most important factors for pharmacy success, partly due to its relatively lasting effect.

2. What are the alternative location choices within a community?

Major factors to consider in choosing a pharmacy location include selection of the community, choice of a location within the community, and selection of specific site.
Sources of information about locations include chambers of commerce, bankers, real estate brokers, and professional consultants. Key factors to consider in selecting a community include characteristics pertaining to population, competition, labor, transportation, economics, material availability, government, financing, location and media

3. What are the major questions to be answered regarding a pharmacys trading? a. What community has the greatest opportunity for the particular type of pharmacy under considerations? b. What area within a community indicates strong potential for growth? c. What specific site within the area of the community meets the requirements of the particular pharmacy?

4. What is retail compatibility?

Retail compatibility can be the most important factor in the survival of stores in a shopping center.

5. Why is it necessary for pharmacies to develop a positioning strategy? Pharmacy owners must recognize that people have different needs and are therefore attracted to different offers. In other words, a pharmacy has to have a positioning strategy. A position is the way the pharmacy is defined by patrons on important attributes the place the pharmacy occupies in patrons minds relative to competing pharmacies.

6. How do traffic counts contribute to the selection of pharmacies? And what are the advantages and disadvantages of a planned shopping centers? A pedestrian or automobile traffic count may be desirable in deciding on a specific site. Pedestrian traffic is closely related to whether the goods are convenience goods, shopping goods, or specialty goods. There are 3 types of planned shopping centers; neighborhood centers, community centers and regional centers The right tenant mix in a shopping center is essential to the individual retailers and centers success. Shopping centers rental and lease agreements should be reviewed with the advise of expert

Exercise 16

Organizing and Staffing of Pharmacy

1. Committees is another common organizational form used in situations where group participation and decision are required 2. Delegation of authority - the right to make decisions, carry out actions and direct others 3. Delegation of work The assignment of part of a managers work to others.

Line organization this is the simplest form of structure and refers to a straight-line responsibility and control from the top management to the middle management and to the lower level Line and staff This utilizes the assistance of experts or specialist. Organizational chart is a diagram or drawing showing the important aspects of an organizational structure. It shows the relationship among positions as to authority, responsibility and accountability, and the people who occupy them

Accountability This is the answerability of the obligation to perform the delegated responsibility and to exercise the authority for the proper performance of the work. Organization it is the framework or backbone by which the work of a business, managerial or otherwise, is performed, that it provides the required channels, points of origin, and flow of management direction and control

Departmentation - results from the grouping of work, the desire to obtain organization units of manageable size, and to utilize managerial ability.

Job description the specification of tasks activities associated with particular job Unity of command this refers to the arrangement in an organization where there is a chain of authority in which every member knows to whom he reports and who reports to him in turn

Span of control this refers to the number of people a manager can effectively control and manage.

Employee recruitment this is pooling of job candidates to match the human resources plan of the organization. Unity of command command must be established for every worker s. Unity of direction each employee should have a clear understanding of, and willingness to work for, the goals of the business

Scalar chain rests at the top and flows downward.


1. Discuss the importance of an organizational structure for a pharmacy.

A proper organizational structure will help a pharmacy survive by ensuring that tasks are completed and a foundation is laid for future growth

1. What relationship exists between authority and responsibility?

Responsibility this is the work or duty assigned to a particular position

Authority It refers to the power or right to be obeyed.

1. Name some common sources for potential employees

a. Employees of the pharmacy or parent company

b. Referrals c. Employees of other companies d. Employment agencies e. Educational institutions f. Labor unions g. Advertising

h. Drop-ins

1. What steps should be considered by the pharmacist/drugstore owner in selecting the most qualified applicant for the job? 1. 2. 3. Reception of applicants Preliminary interview Application form

5. 6. 7. 8.

Employment test
Final selection by immediate supervisor or department head Physical and Medical Examination Hiring Orientation/Induction/Indoctrination

1. A. Branch Pharmacist- all A. B. Assistant Pharmacist all Sales clerk all

The basic organizing process

1. Define the goals of the pharmacy

2. Identify and define each task to be completed 3. Group related tasks into jobs that can be assigned to an employee 4. Group the jobs into units that are related in some manner 5. Assign a manager to each unit and provide the manager with necessary authority and responsibility to complete the jobs within the unit 6. Arrange these units relative to one another, both horizontally and vertically (establish who reports to whom)

7. Establish a control system for measuring the progress and achievements of each group.

The Basic Staffing Process

1. Based on the objectives and level of business activity, forecast future personnel needs in terms of both numbers and type of position

2. Based on the pharmacy owners personal goals, determine how many management positions will be needed in the future and in what service areas. 3. 4. 5. Specify each type of job Assess the internal aspects of employment in terms of working conditions, policies Determine where the right kind of potential employees might be found

7. 8. 9.

Actively recruit good personnel by promoting job opportunities

Select persons for employment on the basis of a formalized screening process Actively orient employees to their new positions Train employees to do their jobs and develop them for any planned advancement

10. Develop wage and benefit programs that are fair to the employees and affordable for the pharmacy
11. Motivate employees and evaluate their activities