Developing a pharmaceutical marketing plan

Dr. Taher Hamed

 The Marketing plan
The Marketing plan is the written document
that describes your advertising and marketing
efforts for the coming year; it includes a
statement of the marketing situation, a
discussion of target markets and company
positioning and a description of the marketing
mix you intend to use to reach your marketing
goals.
 The Marketing plan
The marketing plan may be Product specific, market
specific, or company-wide plan that describes
activities involved in achieving specific marketing
objectives within a set timeframe. A market plan
begins with the identification (through market
research) of specific customer needs and how the
firm intends to fulfill them while generating an
acceptable level of return. It generally includes
analysis of the current market situation
(opportunities and trends) and detailed action
programs, budgets, sales forecasts, strategies, and
projected financial statements.
Steps to be followed in a pharmaceutical
marketing plan

Determine the nature of the pharmaceutical

product you want to plan for.
Determine the product design, quality,
features and packaging.
determine the product selling outlets and
distribution channels for best availability
coverage, transport, direct or indirect.
 Steps to be followed in a
pharmaceutical marketing plan
Determine price profitable for the company or
attractive to customers, discounts, payment
period, credit.
Determine promotion plan: where or how to
advertise, advertising, sales promotions,
public relations, medical representatives,
brochures and printed material.
 Companies segment the market into
groups
the choice of a successful segment is
dependent on:
1-The marketing attractiveness of the target
segment, its size, growth, price sensitivity and
entry and existing costs.
2-The competitive dynamics in the proposed
segment
3-the strength of the strategic advantage for the
target segment.
 Market targeting
Based on evaluating the segments with regard
to its size, growth, effects of competitions,
availability of substitute products, power of
buyers or suppliers (competition) ,also
company objectives or resources.
(Antispasmodics, Non sedating
antihistamines)
 Competition
Includes all of the actual or potential rival
offerings and substitutes that a buyer might
consider.
Types of competition:
1-Brand competition:
A company sees its competitors as other
companies that offer similar products or
services to same customers at similar prices.
(Voltaren vs. Feldene)
 Competition
2-Industry competition:
A company sees its competitors as all
companies that make the same product or
class of products. GSK vs. SANOFI AVENTIS
3-Form competition:
A company sees its competitors as all
companies that supply the same
pharmaceutical form (All suspension
antibiotics)
 Competition
4-Generic competition:
A company sees its competitors as all
companies that compete for the same
consumer either brands or scientific names
Preparing the pharmaceutical plan:
External forces affecting marketing of
pharmaceutical products

P.E.S.T Analysis
Political, Economical, Social, Technological
environments.
 External forces affecting marketing of
pharmaceutical products
Political analysis:
-Politics
-Decisions made by government
-Occupation
-Legislations
-Policies
 External forces affecting marketing of
pharmaceutical products
Economical: nationally and globally
Social: society forces as family, friends, media
affect our attitudes, interests, opinions, what
we buy, how we behave.
If a change in structure of a population
happens, this will affect the supply and
demand of goods and services.
 External forces affecting marketing of
pharmaceutical products
Technological:
-Internet
-R&D departments are pressured to develop
up to date products with the advancement of
technology.
 SWOT Analysis
A tool used by organizations to help the firm
establish its strengths, weaknesses,
opportunities and threats.
Used as a framework to help firms develop
their overall corporate, marketing or product
strategies.
 SWOT Analysis
A method for integrating and cross-analyzing
data collected in the market audit, situation
audit and product positioning to identify SWOT.
 SWOT Analysis
SW: Strengths and Weaknesses of a company
or product (internal factors controllable by the
company).
OT: Opportunities & threats ( in the
market/environment) are external factors
which are uncontrollable by the organization.
 SWOT Analysis
The SWOT method is designed to help produce :
The optimum segment to attack
The positioning 'message" to communicate
the strategy that will bring success .
Tactical objectives and their priority .
A tactical plan
final check
 Opportunities and threats

They come out of the following areas :

Market segment
Environment
Competition
 Strengths and weaknesses

Examples of strengths The product.

- Highly - efficient product

-Very reliable.
-Convenient packaging
-Acceptable pricing.
-Excellent technical back-up
-High versatility
-High market segment share
-Good pharmaceutical brand.
-Excellent delivery
 SWOT Analysis
Examples of strengths The Company:
- Large size
-Excellent reputation
-Adequate promotion budgets --Productive R & D.
-well-motivated sales force
-Effective sales force
-well-trained sales force
-Excellent distribution
-Excellent back-up information
 SWOT Analysis
Example list of opportunities: In the market
segment
Large segment size.
High growth rate.
High level of customer interest.
High degree of acceptance.
Many new customers.
Low level of price sensitivity
 SWOT Analysis
List of opportunities: In the environment
Not very complicated government regulations.
Little negative public opinion.
Growth economy.
Competition:
- few competitors
- Weak selling power
-no new products
-little promotion activity
 Marketing mix principles
used by business as tools to assist in pursuing
their objectives
The 4 p's are:

product, price, place, promotion

These are controllable variables which must be

managed carefully to meet the needs of the
target group.
 Marketing mix principles
4 Ps vs. 4 Cs
Product Customer solution
Price Customer cost
Place Customer convenience
Promotion Customer communication
 Product Strategies
who is the product aimed at ?
what benefits will they expect ?
how do they plan to position the product in
market ?
what differential advantages will the product
offer compared to competitors ?
 Product Life Cycles
Sales
Development Introduction Growth Maturity Saturation Decline

Time
 Product Strategies
A product must be viewed in 3 levels:
Level 1: Core product
Level 2: Actual product: aim is to ensure that
our potential buyers actually buy one from
your company (i.e. add benefits to compete).
Level 3: Augmented product: what additional
non-tangible benefits can you offer ?, delivery,
after sale support.
 Product decisions

Design
Quality
Branding Vs. Copy cats (Generics)
 Pricing
It costs to produce, design, distribute and

promote a product, thus the price must support

these elements. Pricing is difficult and must

reflect the supply & demand relationship.

 Pricing
Pricing must take into account:
Fixed and variable costs.
Competition.
Company objectives.
Proposed positioning strategies.
Target group & willingness to pay.
 Pricing Strategies
Depends on companys objectives
Types of pricing:
1-Penetration pricing : is the pricing technique of
setting a relatively low initial entry price, often
lower than the eventual market price, to
attract new customers
2-Skimming pricing: is a pricing strategy in which
a marketer sets a relatively high price for a
product or service at first, then lowers the
price over time
3-Competition pricing: Method in which a seller
uses prices of competing products as a benchmark
instead of considering own costs or the customer
demand
 Place
Distribute product to user at the right place
and at the right time.
Efficient Distribution may be:
1-direct (manufacturer consumer) OR
2- indirect (manufacturer wholesaler
retailer consumer
 Distribution Strategies
Intensive distribution: Marketing strategy under
which a firm sells through as many outlets as
possible, so that the consumers encounter the
product virtually everywhere they go.
Exclusive distribution: Retail selling strategy typically
used by manufacturers of high-priced, generally
upscale merchandise, whereby manufacturers grant
certain dealers exclusive territorial rights to sell the
product
 Distribution Strategies
Selective distribution :Type of product
distribution that lies between intensive
distribution and exclusive distribution, and in
which only a few retail outlets cover a specific
geographical area. Considered more suitable
for high-end items