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A Thesis on THE COMPARETIVE STUDY ON PROMOTION STRATEGY AND TOOLS USED IN PHARMA COMPANY WITH REFERECNE TO TROIKAA PHARMACTICALS

AND RANBAXY LAB Ltd. IN AHMEDABAD.

Enr. No: 8NBAM141 Div: A

Submitted To: Prof. Devangi

Prepared By:Dinesh Sharma

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ACKNOWLEDGEMENT
Without a proper combination of inspection and perspiration, it¶s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. I would like to thank my Principal Mr.Jagdish Patel (ASIM) Ahmedabad & also I would like to thank my Faculty Guide Prof. Devangi, who is always help and guide to me when I needed help. Her perceptive criticism kept me working to make this thesis more full proof. I am thankful to him for her encouraging and valuable support. Working under him was an extremely knowledgeable and enriching experience for me. I am very thankful to him for all the value addition and enhancement done to me.

No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work successfully. Dinesh Sharma. MBA (2008-10)

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PREFACE
A project report on promotional strategy and tools used in pharmaceutical company is being prepared in attempts to interpret in-depth study. This report helps us to understand various terminologies in Marketing. This report gave me opportunity to have complete idea about Promotional strategy and tools. This project report helps in following aspects, Build understanding of central ideas and theories of Promotional strategies. Develop familiarity with the analysis of tools and strategies.

This project will guide to marketer of Pharmaceutical industry. This project deployed a lot time for collections of information from various sources. This project will be very helpful to know the promotional tools and strategy used and the personal selling involved in it.

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INTRODUCTION
The Indian Pharmaceutical Industry today is in the front rank of India¶s sciencebased industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with.
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supported by Intellectual Property Protection regime is well set to take on the international market. The process of consolidation. Legal & Financial Framework: India has a 53 year old democracyand hence has a solid legal framework and strong financial markets.Manufacturers are free to produce any drug duly approved by the Drug Control Authority. THE GROWTH SCENARIO India's US$ 3. with its rich scientific talents and research capabilities. which has become a generalized phenomenon in the world pharmaceutical industry. innovative scientific manpower. Above all.1 billion pharmaceutical industry is growing at the rate of 14 percent per year. it has a 70 million middle class market. Professional services are easily available. 5 . particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. Technologically strong and totally self-reliant. The Pharmaceutical Industry. Information & Technology: It has a good network of world-class educational institutions and established strengths in Information Technology. Consolidation: For the first time in many years. Cost-effective chemical synthesis: Its track record of development. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs. It is one of the largest and most advanced among the developing countries. There is already an established international industry and business community. the international pharmaceutical industry is finding great opportunities in India. has started taking place in India. Globalisation: The country is committed to a free market economy and globalization. low R&D costs. which is continuously growing. It has an educated work force and English is commonly used. ADVANTAGE INDIA Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. the pharmaceutical industry in India has low costs of production. strength of national laboratories and an increasing balance of trade.

this was done by a large pharmaceutical sales force. has always been common. The largest companies have tens of thousands of representatives around the world. however. such as pain relievers or allergy medicine. which accounts for merely 1. Of this. will have to increasingly look at merger and acquisition options of either companies or products. improve their R&D efforts and improve distribution to penetrate markets. They write the prescriptions that determine which drugs will be used by the patient. bulk drugs will account for Rs 54 bn (21%) and formulations. Sales representatives called upon physicians regularly. providing information and 6 . imports were Rs 20 bn while exports were Rs87 bn. STEPS TO STRENGTHEN THE INDUSTRY Indian companies need to attain the right product-mix for sustained future growth. has also long been practiced. Mass marketing of prescription medications was rare until recently. It was long believed that since doctors made the selection of drugs. Marketing of legitimate nonprescription medications.000 registered pharmaceutical manufacturers exist in the country. A medium-sized pharmaceutical company might have a sales force of 1000 representatives. in an effort to consolidate their position. many with little real potency.3% of the global pharmaceutical sector. In financial year 2001. Historically. mass marketing was a waste of resources. Direct and indirect marketing to health care providers Physicians are perhaps the most important component in pharmaceutical sales. Indian companies. specific ads targeting the medical profession were thought to be cheaper and just as effective. This would help them to offset loss of new product options. the remaining Rs 210 bn (79%).Over 20. An important part of these efforts was marketing to medical students. Influencing the physician is the key to pharmaceutical sales. The domestic pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year 2002. Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product-patent regime after 2005. The sale of miracle cures. The marketing of medication has a long history. This would involve ads in professional journals and visits by sales staff to doctor¶s offices and hospitals.

Individual research Physicians discover pharmaceutical information from such sources as the Physician's Desk Reference and online sources such as PDR. There are a number of firms that specialize in data and analytics for pharmaceutical marketing. and also drug samples left by companies will be distributed through a centralized system. Scholarly literature can be in the form of medical journal article reprints. including self-influence through research. direct interaction with pharmaceutical companies. patients. while educational programs and fellowships will also be required to be centrally reviewed and approved Pharmaceutical companies are developing processes to influence the people who influence the physicians. There are also web based instruments that can be used to determine the influencers and buying motives of physicians. and scholarly literature.net. They also rely upon pharmaceutical-branded e-detailing sites. There are several channels by which a physician may be influenced.free drug samples to the physicians. This will include meals or individual drug samples. often delivered by sales representatives at their place of employment or at conference exhibitions. This is still the approach today. pharmaceutical sales and non-sales representatives. as well as via PDAs with applications. however. Massachusetts' largest hospital and physician network. and public or private insurance companies. peer influence. will adopt new guidelines prohibiting physicians and researchers from accepting gifts from pharmaceutical manufacturers. economic pressures on the industry are causing pharmaceutical companies to rethink the traditional sales process to physicians. the Partners Healthcare. 7 . More recently.

Some pharmaceutical companies identify key opinion leaders through direct inquiry of physicians (primary research). These meetings are sponsored by some pharmaceutical companies. common hospital affiliations. Public relations: Involves developing positive relationships with the organisation media public. Pharmaceutical companies generally engage key opinion leaders early in the drug development process to provide advocacy and key marketing feedback. are respected individuals.Peer influence  Key opinion leaders Key opinion leaders (KOL). including social events.  Colleagues Physicians acquire information through informal contacts with their colleagues. but it is also involves being able to handle successfully negative attention. Some pharmaceutical companies identify influential colleagues through commercially available prescription writing and patient level data. The art of good public relations is not only to obtain favorable publicity within the media. professional affiliations. An organisations promotional strategy can consist of: Advertising: Is any non personal paid form of communication using any form of mass media. Personal selling: Selling a product service one to one. 8 . Doctor dinner meetings are an effective way for physicians to acquire educational information from respected peers. who influence physicians through their professional status. such as prominent medical school faculty. and common medical school affiliations. A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. or "thought leaders". Could involve using money off coupons or special offers. Sales promotion: Commonly used to obtain an increase in sales short term.

uk www.8% of advertising expenditure ( Source: Royal Mail 2000).co.co.uk 9 . which contain names and addresses of potential customers. response rates increase thus increasing the chance of improving sales. Organisations can pay thousands of pounds for databases.uk www.Direct Mail: Is the sending of publicity material to a named person within an organisation.dmconcepts.dmis. Listed below are links to organisation who's business involves direct mail.co. By personalising advertising. www.royalmail.uk/atwork www. There has been a massive growth in direct mail campaigns over the last 5 years. Direct mail allows an organisation to use their resources more effectively by allowing them to send publicity material to a named person within their target segment.marketline. Spending on direct mail now amounts to £18 bn a year representing 11.co.

lots of Costly . newspaper) product Cheap way of reaching many customers .g.Mix Element Advantages Advertising Good for building awareness Disadvantages Impersonal .cannot since the message seems to be always control what other coming from a third party (e.cannot answer all a customer's questions Personal Selling Effective at reaching a wide Not good at getting customers audience to make a final purchasing Repetition of main brand and decision product positioning helps build customer trust Highly interactive .Risk of losing control . sales by targeting promotional customers may get used to the incentives on particular products effect Good short term tactical tool Too much promotion may damage the brand image Often seen as more "credible" .employing a sales communication between the buyer force has many hidden costs in and seller addition to wages Excellent for communicating Not suitable if there are complex / detailed product thousands of important buyers information and features Relationships can be built up important if closing the sale make take a long time Can stimulate quick increases in If used over the long-term.if the publicity is achieved through the right media Sales Promotion Public Relations 10 . people write or say about your magazine.

g. magazines. encourage customers to switch to a different brand (c) To remind . A product that is highly differentiated may also need more advertising to help set it apart from the competition . tell customers about a new product (b) To persuade . goods and services through mass media such as newspapers. in turn will reflect the characteristics of the product being advertised. defines advertising as: "The means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost". Setting the advertising budget is not easy .g.advertising: introduction The Institute of Practitioners in Advertising (IPA). Advertising objectives fall into three main categories: (a) To inform .how can a business predict the right amount to spend. There are five main stages in a well-managed advertising campaign: Stage 1: Set Advertising Objectives An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. new products tend to need a larger advertising budget to help build awareness and to encourage consumers to trial the product. For example. Kotler and Armstrong provide an alternative definition: "Advertising is any paid form of non-personal presentation and promotion of ideas. remind buyers where to find a product Stage 2: Set the Advertising Budget Marketers should remember that the role of advertising is to create demand for a product.emphasising the points of difference.g. Which parts of the advertising campaign will work best and 11 . the body which represents advertising agencies.promotion . This.e.e.e. television or radio by an identified sponsor". The amount spent on advertising should be relevant to the potential sales impact of the campaign.

Some products are particularly suited to seasonal campaigns on television (e. advertising/sales ratio) as a guide to set the budget. A campaign may use one or more of the media alternatives. Stage 3: Determine the key Advertising Messages Spending a lot on advertising does not guarantee success (witness the infamous John Cleese campaign for Sainsbury).which will have relatively little effect? Often businesses use "rules-of-thumb" (e.where.what proportion of the target customers will be exposed to the advertising? (b) Frequency . A successful advertising message should have the following characteristics: (a) Meaningful . The key factors in choosing the right media include: (a) Reach . Christmas hampers) whereas for other products.capture the customer's attention (c) Believable . when and which channels) or in a national newspaper or perhaps a magazine focused on this segment of the population? Another key decision in relation to advertising media relates to the timing of the campaign. The advertising message must be carefully targeted to impact the target customer audience. Research suggests that the clarity of the advertising message is often more important than the amount spent.g.customers should find the message relevant (b) Distinctive .will it have most impact? For example does an advert promoting holidays for elderly people have more impact on Television (if so. since research suggests most consumers doubt the truth of advertising in general Stage 4: Decide which Advertising Media to Use There are a variety of advertising media from which to chose. a regular advertising campaign throughout the year in media such as newspapers and 12 .g.a difficult task. if the target customer sees the message .how many times will the target customer be exposed to the advertising message? (c) Media Impact .

has the campaign generated the intended sales growth. consider the relevant ³publics´ for a publicly-quoted business engaged in medical research: ‡ Employees ‡ Shareholders ‡ Trade unions ‡ Members of the ³general public´ ‡ Customers (past and present) ‡ Pressure groups ‡ The medical profession ‡ Charities funding medical research ‡ Professional research bodies and policy-forming organisations ‡ The media ‡ Government and politicians The role of public relations is to: 13 . cottage holidays in the Lake District) is more appropriate. For example.public relations Introduction The Institute of Public Relations defines public relations as follows: ³The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics´ What is meant by the term ³publics´ in the above definition? A business may have many ³publics´ with which it needs to maintain good relations and build goodwill. This second area is much more difficult to measure.g. promotion .is the intended message being communicated effectively and to the intended audience? (2) The Sales Effects .specialist magazines (e. Stage 5: Evaluate the results of the Advertising Campaign The evaluation of an advertising campaign should focus on two key areas: (1) The Communication Effects .

some of which are more appropriate in certain circumstances than others: Consumer communication Customer press releases Trade press releases Promotional videos Consumer exhibitions Competitions and prizes Product launch events Celebrity endorsements Web sites Business communication Corporate identity design Company and product videos Direct mailings Web site Trade exhibitions Internal / employee communication In-house newsletters and magazines Intranet Notice boards Employee conferences Email 14 .‡ Identify the relevant publics ‡ Influence the opinions of those publics by: o Reinforcing favourable opinions o Transforming perhaps neutral opinions into positive ones o Changing or neutralising hostile opinions Public relations techniques There are many techniques available to influence public opinion.

) Community involvement programmes Trade. this could be quite costly since it would involve a large amount of regular research.External corporate communication Company literature (brochures. Instead. 15 . and include: ‡ Monitoring the amount of media coverage obtained (press cuttings agencies play a role in keeping businesses informed of this) ‡ Measuring attendance at meetings. national and international media relations Financial communication Financial media relations Annual report and accounts Meetings with stock market analysts. In any event. videos etc. conferences ‡ Measuring the number of enquiries or orders received in response to specific public relations efforts. local. how is it possible to measure the effectiveness of public relations? It is actually quite difficult to measure whether the key messages have been communicated to the target public. the main measures of effectiveness concentrate on the process of public relations. fund managers etc Shareholder meetings (including the annual general meeting Given the wide range of techniques used in public relations.

sales promotion is about ³action´. It is about stimulating customers to buy a product. Sales promotion is commonly referred to as ³Below the Line´ promotion. personal letters on other methods´. It is not designed to be informative ± a role which advertising is much better suited to. setting up competitions with attractive prizes.sales promotion Introduction A good definition of sales promotion would be as follows: ³An activity designed to boost the sales of a product or service. offering free gifts or trading stamps. a free-sample campaign. More than any other element of the promotional mix. arranging demonstrations or exhibitions. Sales promotion can be directed at: ‡ The ultimate consumer (a ³pull strategy´ encouraging purchase) ‡ The distribution channel (a ³push strategy´ encouraging the channels to stock the product). telemarketing. This is usually known as ³selling into the trade´ 16 . It may include an advertising campaign. door-to-door calling. increased PR activity.promotion . temporary price reductions.

very versatile. Consider the following examples of the use of coupons: .In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer . often best for new products or perhaps to encourage sales of existing products that are slowing down. therefore. Increased sales gained from price promotions are at the expense of a loss in profit ± so these promotions must be used with care. One problem with coupons is that they may simply encourage customers to buy what they would have bought anyway. 17 . summarised in the table below: Price promotions Price promotions are also commonly known as´ price discounting´ These offer either (1) a discount to the normal selling price of a product. Another problem occurs when retailers do not hold sufficient stocks of the promoted product ± causing customer disappointment.Methods of sales promotion There are many consumer sales promotional techniques available.On the back of till receipts The key objective with a coupon promotion is to maximise the redemption rate ± this is the proportion of customers actually using the coupon. way of offering a discount. Use of coupon promotions is.On a pack to encourage repeat purchase . or (2) more of the product at the normal price. A producer must also guard against the possible negative effect of discounting on a brand¶s reputation Coupons Coupons are another.A cut-out coupon as part of an advert .

Consumer luxuries (e. car hire companies etc. It is also known as a ³premium promotion´ in that the customer gets something in addition to the main purchase. Attractive.Gift with purchase The ³gift with purchase´ is a very common promotional technique. therefore. a customer receives a money refund after submitting a proof of purchase to the manufacturer. This type of promotion is widely used for: .g. Point-of-sale displays Research into customer buying behaviour in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store. Most competition and prize promotions are subject to legal restrictions. very important part of the sales promotional activity in retail outlets.g. 18 . informative and well-positioned point-of-sale displays are.Subscription-based products (e. These schemes are often viewed with some suspicion by customers ± particularly if the method of obtaining a refund looks unusual or onerous. train companies. perfumes) Competitions and prizes Another popular promotion tool with many variants. Money refunds Here. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines. magazines) . Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives.

trying to find new customers (2) Communicating . customers therefore obtain a relatively high degree of personal attention 19 .in times of product shortage.obtaining information about the market to feedback into the marketing planning process (6) Allocating . answering questions and trying to close the sale (4) Servicing . What are the main roles of the sales force? Kotler describes six main activities of a sales force: (1) Prospecting . It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service).personal selling Introduction Personal selling can be defined as follows: Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer.promotion . the sales force may have the power to decide how available stocks are allocated What are the advantages of using personal selling as a means of promotion? ‡ Personal selling is a face-to-face activity. but will always ultimately end with an attempt to "close the sale" Personal selling is one of the oldest forms of promotion.contact with the customer.providing support and service to the customer in the period up to delivery and also post-sale (5) Information gathering .with existing and potential customers about the product range (3) Selling .

why do more businesses not maintain a direct sales force? Main disadvantages of using personal selling The main disadvantage of personal selling is the cost of employing a sales force. In addition. travel and subsistence costs. the wholesalers promote it to retailers. Push A ³push´ promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. a sales person can only call on one customer at a time. In addition to the basic pay package.‡ The sales message can be customised to meet the needs of the customer ‡ The two-way nature of the sales process allows the sales team to respond directly and promptly to customer questions and concerns ‡ Personal selling is a good way of getting across large amounts of technical or other complex product information ‡ The face-to-face sales meeting gives the sales force chance to demonstrate the product ‡ Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships Given that there are many advantages to personal selling. Sales people are expensive. and the retailers promote it to consumers. 20 .push and pull strategies "Push or Pull"? Marketing theory distinguishes between two main kinds of promotional strategy "push" and "pull". a business needs to provide incentives to achieve sales (typically this is based on commission and/or bonus arrangements) and the equipment to make sales calls (car. promotion. This is not a cost-effective way of reaching a large audience. mobile phone etc). The producer promotes the product to wholesalers.

consumers will ask their retailers for the product.A good example of "push" selling is mobile phones. A "push" strategy tries to sell directly to the consumer. If the strategy is successful. bypassing other distribution channels (e. Aimed at two to four-year-olds. Pull A ³pull´ selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. With this type of strategy.for example offering subsidies on the handsets to encourage retailers to sell higher volumes. Fisher-Price will develop. 130 episodes of Fimbles have been made and are featured everyday on digital children's channel CBeebies and BBC2.g. The demand created from broadcasting of the Fimbles and a major advertising campaign is likely to ³pull´ demand from children and encourage retailers to stock Fimbles toys in the stores for Christmas 2002. 21 . and the wholesalers will ask the producers. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia . plastic and electronic learning toys for the UK and Ireland. selling insurance or holidays directly). In 2001. As part of the promotional campaign. consumer promotions and advertising are the most likely promotional tools. the retailers will ask the wholesalers. where the major handset manufacturers such as Nokia promote their products via retailers such as Carphone Warehouse. BBC Worldwide (the commercial division of the BBC) achieved sales of £90m from its children's brands and properties last year. Consider the recent BBC promotional campaign for its new pre-school programme ± the Fimbles. manufacture and distribute a range of Fimbles products including soft. the BBC has agreed a deal with toy maker Fisher-Price to market products based on the show. which it hopes will emulate the popularity of the Tweenies. A good example of a pull is the heavy advertising and promotion of children's¶ toys ± mainly on television. Under the terms of the deal.

In an un diversified business. it may not be necessary to formalise the marketing planning process.marketing planning . By contrast.strategic marketing process Macdonald (1995) suggests that several stages have to be completed in order to arrive at a strategic marketing plan. where senior management have a strong knowledge and detailed understanding of the overall business. These are summarised in the diagram below: The extent to which each part of the above process needs to be carried out depends on the size and complexity of the business. In this situation. top level management will not have knowledge and expertise that matches subordinate management. it makes sense to put formal marketing planning procedures in place throughout the organisation. in a highly diversified business. 22 .

Mintzberg defines a mission as follows: ³A mission describes the organisation¶s basic function in society.marketing planning . and society at large?) 23 . what should a good mission contain? (1) A Purpose Why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the needs of all stakeholders (including employees. in terms of the products and services it produces for its customers´.mission Mission A strategic marketing plan starts with a clearly defined business mission. A clear business mission should have each of the following elements: Taking each element of the above diagram in turn.

or the extent of positive customer feedback via questionnaires. often un-stated.The products or services it offers (and therefore its competitive position) . then policies and standards should be created and monitored that test delivery. product etc. business method.g. For example.(2) A Strategy and Strategic Scope A mission statement provides the commercial logic for the business and so defines two things: . if the business mission includes delivering ³outstanding customer service´. commitments to customers) ‡ Loyalty and commitment (e. (3) Policies and Standards of Behaviour A mission needs to be translated into everyday actions. For example. These would include: ‡ Business principles (e.g. beliefs of the people who work in the business. are employees inspired to sacrifice their personal goals for the good of the business as a whole? And does the business demonstrate a high level of commitment and loyalty to its staff?) ‡ Guidance on expected behaviour ± a strong sense of mission helps create a work environment where there is a common purpose What role does the mission statement play in marketing planning? In practice. (4) Values and Culture The values of a business are the basic. these boundaries may be set in terms of geography. These are set by management. social policy. These might include monitoring the speed with which telephone calls are answered in the sales call centre. market. The decisions management make about strategic scope define the nature of the business. a strong mission statement can help in three main ways: ‡ It provides an outline of how the marketing plan should seek to fulfil the mission 24 .The competences through which it tries to succeed and its method of competing A business¶ strategic scope defines the boundaries of its operations. the number of complaints received from customers.

the objective should state exactly what is to be achieved. The SMART criteria (an important concept which you should try to remember and apply in exams) are summarised below: Specific . 25 .‡ It provides a means of evaluating and screening the marketing plan.g. Objectives can be set at two levels: (1) Corporate level These are objectives that concern the business or organisation as a whole Examples of ³corporate objectives might include: ‡ We aim for a return on investment of at least 15% ‡ We aim to achieve an operating profit of over £10 million on sales of at least £100 million ‡ We aim to increase earnings per share by at least 10% every year for the foreseeable future (2) Functional level e. are marketing decisions consistent with the mission? ‡ It provides an incentive to implement the marketing plan marketing planning . specific objectives for marketing activities Examples of functional marketing objectives´ might include: ‡ We aim to build customer database of at least 250.setting marketing objectives Introduction Objectives set out what the business is trying to achieve.000 households within the next 12 months ‡ We aim to achieve a market share of 10% ‡ We aim to achieve 75% customer awareness of our brand in our target markets Both corporate and functional objectives need to conform to the commonly used SMART criteria.

This process of adapting and decision-making is known as marketing planning. The main problem with this process is that the ³environment´ in which businesses operate is constantly changing. They do this by providing better value for the customer than the competition. marketing planning . These deadlines also need to be realistic. Marketing management constantly have to assess which customers they are trying to reach and how they can design products and services that provide better value (³competitive advantage´). human resource management and other business issues. of course.the objective should be realistic given the circumstances in which it is set and the resources available to the business. 26 . It is concerned with marketing.objectives should be set with a time-frame in mind.Measurable .the link with strategic planning Introduction Businesses that succeed do so by creating and keeping customers. So a business must adapt to reflect changes in the environment and make decisions about how to change the marketing mix in order to succeed. Relevant . The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives.an objective should be capable of measurement ± so that it is possible to determine whether (or how far) it has been achieved Achievable .objectives should be relevant to the people responsible for achieving them Time Bound . Where does marketing planning fit in with the overall strategic planning of a business? Strategic planning (which you will cover in your studies of ³strategy´ is concerned about the overall direction of the business. But it also involves decision-making about production and operations. finance.

consider the challenge faced by marketing management in a multinational business. For example. The ability of a business to achieve profitable sales is impacted by dozens of environmental factors. producing a wide range of products. It makes sense to try to bring some order to this chaos by understanding the commercial environment and bringing some strategic sense to the process of marketing products and services. However. in many small businesses there is only one geographical market and a limited number of products (perhaps only one product!). because it is the job of marketing management to understand and manage the links between the business and the ³environment´. Sometimes this is quite a straightforward task. What are the key issues that should be addressed in marketing planning? The following questions lie at the heart of any marketing (or indeed strategic) planning process: ‡Where are we now? ‡How did we get there? ‡ Where are we heading? ‡ Where would we like to be? ‡ How do we get there? ‡ Are we on course? Why is marketing planning essential? Businesses operate in hostile and increasingly complex environment. with hundreds of business units located around the globe.Marketing has a key role to play in strategic planning. A marketing plan is useful to many people in a business. It can help to: ‡ Identify sources of competitive advantage ‡ Gain commitment to a strategy ‡ Get resources needed to invest in and build the business ‡ Inform stakeholders in the business 27 . How can such management keep control of marketing decision-making in such a complex situation? This calls for wellorganised marketing planning. many of which are inter-connected.

occupation and other variables 28 .‡ Set objectives and strategies ‡ Measure performance promotion .direct marketing Introduction Direct marketing is concerned with establishing an individual relationship between the business offering a product or service and the final customer. and where possible personalise the message. There are a large number of mailing databases available that allow businesses to send direct mailing to potential customers based on household income. the one in most widespread use is direct mail. analysis and tracking of customer behaviour to develop a relational marketing strategies The process of direct marketing covers a wide range of promotional activities you may be familiar with. Direct marketing has been defined by the Institute of Direct Marketing as: The planned recording. These include: ‡ Direct-response adverts on television and radio ‡ Mail order catalogues ‡ E-commerce (you bought this marketing companion following tutor2u¶s direct marketing campaign!) ‡ Magazine inserts ‡ Direct mail (sometimes also referred to as ³junk mail´) ‡ Telemarketing Direct mail Of the above direct marketing techniques. Why? ‡ The advertiser can target a promotional message down to an individual level. interests. Direct mail is widely thought of as the most effective medium to achieve a customer sales response.

The mailing list is a database which collects together details of past.‡ Businesses can first test the responsiveness of direct mailing (by sending out a test mailing to a small. A properly managed mailing database enables a business to: ‡ Focus on the best prospective customers ‡ Cross-sell related products ‡ Launch new products to existing customers How is the mailing database compiled? The starting point is the existing information the business keeps on its customers. although creative packaging can still stimulate customer response ‡ Lead times to produce direct mailing campaigns can be quite long ‡ There is increasing customer concern with ³junk mail´ ± the receipt of unsolicited mail which often suggests that the right to individual privacy has been breached. direct mail has several weaknesses: ‡ A piece of direct mail is less ³interactive´ than a television or radio advert. for longer However. It is also possible to ³buy´ mailing lists from elsewhere 29 . representative sample) before committing to the more significant cost of a larger campaign ‡ Direct mailing campaigns are less visible to competitors ± it is therefore possible to be more creative. All forms of communication between a customer and the business need to be recorded so that a detailed. up-to-date profile can be maintained. The Direct marketing database Direct mailing is based on the ³mailing list´ ± a critical part in the direct marketing process. current and potential customers.

we learned that which one you focus on will depend on the product you are trying to sell. We defined promotion strategy as figuring out how to advertise and sell your product. As a scientist. you might be interested in personal selling as a career choice: What kinds of things do you need to know in order to become an effective salesperson? We're going to tackle both in this series: This month. next month. It's so complex and technical you need a trained. from the salesperson's. you may be interested in the personal selling part of promotion strategy for two reasons. As the entrepreneur who has invented this multimilliondollar electronic imaging product. We used the example of a multimillion-dollar electronic imaging product as the perfect product for a personal selling strategy. customized product with a poorly informed client. and its client doesn't have the time to read up on all the different ones on the market and why yours is better (and is thus uninformed). Although people usually want to do both. We learned that the first choice you must make in defining your promotion strategy is whether to concentrate on "personal selling" (selling your product door-to-door) or on "mass marketing" (announcing your product to the world). technical. we learned that it could be divided up into two large sections: mass marketing strategy and personal selling strategy. When we discussed promotion strategy in more detail. informed person to explain it to its highly specialized customer. we'll discuss it from the entrepreneur's point of view. unique. 30 . you might be interested in figuring out exactly how you would sell it using a personal selling strategy. That's why our multimilliondollar electronic imaging product is perfect. It's likely to have to be customized for each individual sale. As the scientist who has worked in the field of electronic imaging and is sick of "the bench" because you want more personal interaction in your job. Designing an Effective Personal Selling Strategy A personal selling strategy works best for a complex.LITERATURE REVIEWS OF PROMOTION STRATEGY By Charles Boulakia Promotion strategy as one of the four major facets of marketing.

you might think about hiring someone with sales experience instead. Remember. An electronic imaging product is likely to be pretty technical. So when you're recruiting salespeople.To address all of these unique needs. so that when the customer has a question or an issue with the product. They also need to know the competitors' products. Power to make a deal. you need to give them lots of information. This means that they need to know the product inside and out. and your customer will likely be a doctor or a scientist. it can be addressed immediately and not shuffled off to another staffperson. Usually. So to allow the salesperson to do their job well. and why) as well as a way of making your own product more customer-oriented. and a sales structure designed to give the salesperson enough power to make an irregular sale but still get rewarded for it. If the person buying your product is a hospital administrator. And. the power to say "no" to a deal that won't make the company money. also. an understanding of your client. There are two routes you can follow: You can hire someone with a good sales background and teach them about the science (or product). They're market intelligence (because they know what other products are being sold. You also need to give your sales force considerable power. so you'll want a scientist to be your salesperson. you have to design your personal selling strategy to have three key elements: a knowledgeable salesperson or sales team. or you can hire someone with a good scientific background and teach them about sales. the choice you make will depend on how complicated your product is and who your customers are. both for credibility reasons and to give the customer what they're looking for. of course. The Salesperson The salesperson is the key to your personal sales strategy. The salesperson is your only link to the client. Power to say "yes" to needed product customizations. Their interactions with customers give you more information about what modifications need to be done to your product than any other source. so they can give accurate representations of why your imaging technology is better. because the administrator will be used to buying from nontechnical people and will likely be more bottom-line oriented. 31 . that the salesperson is more than just a sales agent: They're a research and development tool. you should be willing to recruit the best and expect to pay them a premium.

You can reward the sales team based on short-term sales goals. but chances are. to emphasize what you want your sales force to do. number of new prospects. Determining an appropriate incentive system for a sales force can be the most difficult job you'll have as a business person. affecting your company's profits. repeat sales. By understanding what a customer wants in a salesperson. remember that your sales force isn't stupid and that they spend about as much time thinking about their paycheck as they do trying to sell your product. you'll have to finetune this structure as your business evolves. that person can also be your worst enemy. 32 . so the incentive structure you design will determine the behavior your customer sees. Do they want a half-hour presentation or just a 12-second pitch? A customized product they help design (and maybe write a paper on) or a ready-to-use product. they'll be discounted quite significantly. who's not authorized to buy it anyway. But. underbudgeted expense reports. you can tune your sales team to be just that. you're going to get a lot of sales late in the quarter (as the salesperson desperately tries to make their quota). The Sales Structure Remember: In a personal selling strategy. But you'll also see a cost to those sales: Chances are. Understanding this will help keep you from wasting salesperson time on selling the machine to the doctor. depending on the system you've set up for them. The key is to keep your sales force motivated. and a doctor uses the machine. chances are. or a whole lot of other things. Determining a good incentive system for your sales force is very difficult and depends very much on what you're trying to do and the product you're trying to sell. customer support. without any loopholes that they can use to take advantage of the system. long-term sales. in their lab. Above all else. you can better give the salesperson the tools they can use to fulfill that need. For example: By giving quarterly sales quota-based bonuses but also giving the salesperson the authority to make big discounts." It's just as important here as anywhere else.The Client Throughout the marketing section. your salesperson is your best friend. tomorrow? Or maybe the purchaser isn't the user at all: A hospital administrator makes the purchase decision. we've used the phrase "Know your client. By understanding what your client needs in a product.

33 . languages. Success in Asia will depend upon the ability of marketers to navigate the local environment with globally developed products. Asia¶s market potential has been widely discussed. is not without challenges. Asia. Meanwhile regional and local market strategies are needed in an increasingly complex and ever changing marketplace to achieve results. Multinational pharmaceutical companies are increasingly looking to Asia to drive sales growth. after which country-specific approaches are needed. Even within some countries disparities of affluence and education can be associated with different healthcare expectations. Multiple countries with different cultures. increasing affluence and a projected increase in chronic diseases offer an opportunity to boost revenues at a time when blockbuster drugs are nearing the end of their product lifecycle in the US and Europe. Public Worldwide Development of meaningful and cohesive marketing strategies in Asia is one of the hottest topics in the pharmaceutical industry today. Nearly 4 billion people. mean strategies can only be regionalised to a certain extent. socio-economic groups and regulatory/legal systems. Marketing is simultaneously recognized by the industry as vital for product success and derided by the media as the main reason for high drug prices. coupled with economic growth.As per looking all the aspect which are discussed above I have got view of all the promotional strategy and the can be used how these strategy useful of the marketing the product of the company Joanne Asia Relations Hong Kong FensomeRegional Pacific Director Ogilvy of Healthcare. however.

Global marketing teams are also tasked with developing the business plans and strategies that include marketing elements such as product proposition. Prescription-products promotion Promotional marketing strategies are impacted by factors such as product lifecycle stage. price. The changing environment impacting treatment decisions Payers. Physicians have therefore been the focus of most marketing campaigns. Professional organisations developing treatment guidelines can influence best practice. although it should be noted that clinical trials are being carried out and the drugs themselves being manufactured in the region. But. place and promotion). Nurses. Of the four marketing P¶s (product. pharmacists and other healthcare professionals can influence physician perceptions. market position. branding and pricing parameters. disease area and competitive activity. the environment in which physicians are operating is changing and they are increasingly influenced by many different groups and individuals with a stake in the choice of treatment. reimbursement decision-makers and governments can all impact treatment availability and patient access.From global to regional to local The pharmaceutical industry is globally driven. Diseases and epidemics are global and prescription products designed to treat them are necessarily researched and developed by central teams. today. this essentially leaves local marketers with µPlace and Promotion¶ to strategise. The one constant factor is that physicians will ultimately have to write the prescription. But. Patient organisations 34 . pharmaceutical product distribution channels are generally consistent for all companies within each market so promotion is the avenue where marketers can truly have an impact in the local market setting.

their families and caregivers. but to most influencers who are not medically trained high blood pressure may be more relevant. understand and target them effectively: Who are the influencers. This changing environment means that marketing strategies cannot just focus on physicians rather they need to address the broader group now influencing treatment decisions. patients. Marketing strategies for influencers Effectively navigating the influencer group needs in-depth. Lipitor. an essence. what is their role and at what stage of the treatment decision process are they involved? What motivates each group? Which information channels do they routinely use? How do they like to be talked to? For example hypertension. are becoming pro-actively involved in researching disease areas. morbidity and mortality may mean a lot to physicians. Viagra. And. Retailers can interpret generic prescriptions and influence customers. Brands. branding builds loyalty. learning about treatments and discussing options with their physicians. But research in the following areas will help to define. governments and physicians. Prozac are all widely recognized pharmaceutical products that demonstrate the effectiveness of branding.can influence patients. 35 . Finally. culture and socio-economic differences will impact the influencer group. in-country market research. Through a brand it is possible to communicate a promise. not just drugs Pharmaceutical products are no longer just drugs ² they are brands. legal and regulatory environment. and aspiration. Each country¶s healthcare system.

however.In most cases brands are created by the global team. we can¶t turn the lock back. The power of the media Consumer media. there are fewer healthcare-specific journalists. Prescription products in the consumer world Prescription products are no longer the domain of physicians and healthcare professionals. The challenge is that prescription product information is already available to the general public in the majority of countries. Pharmaceutical companies can particularly play a role in educating journalists about diseases and treatment options. drug developments and pharmaceutical company activities. In Asia. but local market strategies must continue to build upon this promise by carrying the brand through all elements of the marketing mix. at odds with the legal restrictions around the promotion of products as consumer marketing and direct to consumer activities are still prohibited in much of the world ± the US being the obvious exception. but pharmaceutical companies can develop strategies that support educational initiatives by other organisations and ensure accurate information is in the public domain. This is. it is necessary to develop both proactive and reactive media strategies to ensure that accurate information is reaching the right people at the right time. such as newspapers. magazines. This is mainly due to globalisation of the world¶s media and accessibility of the Internet through which information from the US is shared. Many who influence treatment decisions are not medically trained and prescription products must now be positioned within a wider consumer environment. radio and television. With the increasing level of media interest. but this 36 . reach millions of people throughout Asia on a daily basis and the media is increasingly interested in reporting on disease trends. Availability of this information is not going to change.

however. The Internet explosion One billion people use the Internet and Asia accounts for the largest percentage of these users . Patients sitting anywhere in the world can find out about their disease and treatment options. the prescription they write is their decision and unless that situation changes. the Internet is readily available. Patient empowerment Patient organisations are growing in number across Asia in many disease areas. more effective partnerships can be developed when common areas of focus between company and organisation marketing strategies can be identified and cosponsored programs conducted. Without a doubt. 37 . is equal. Back to the industry-physician relationships Against this backdrop of increasing influence. These groups. Many sites are inaccurate and it is prudent for companies to develop Internet strategies and alliances that direct patients and physicians to credible websites with accurate information. however. But. Not all information. As a minimum.does not make the media any less influential. including the pharmaceutical industry.product marketing. interference and awareness physicians still need to be in a position to treat patients with the best available medical care. much used and a major source of healthcare information. as if websites weren¶t enough. This knowledge gap provides a real opportunity. Ultimately. with governments or physicians.36 percent. need funding and this comes from a variety of sources. physicians must remain at the heart of prescription. These groups represent patients¶ interests in many ways. blogging now adds another dimension to the online patient experience. be it providing disease and treatment information to individuals or representing patient perspectives in the media. And. companies should work with third party organisations to ensure that the information they are providing patients about treatment options is accurate.

they will need to encompass not only the physician audience but also increasingly the influencers who have the power to make or break a product. In summary Marketing strategies will play an important role if Asia is to realise its potential. medical conference attendance. the two groups will need to interact. beliefs. motivators. however. however. research funding. prescribing habits and preferred information channels through research. Pharmaceutical companies and physicians do interact frequently and in a number of ways ± sales representative visits.but marketing teams can support their representatives by implementing strategies that create an environment that removes potential prescribing barriers and surrounds physicians with positive product reinforcement. Finally. needs. need to be part of an overall strategic approach that can be determined by gaining a greater understanding of physician attitudes. but the interaction and co-dependent relationship between industry and physicians is complicated. Moreover. pharmaceutical companies will need to become experienced in navigating the consumer space with prescription products and ultimately turning pharmaceutical marketing into brand marketing. But while physicians need new products to treat their patients and pharmaceutical companies are able to develop such products. often criticised and has raised ethical concerns within the profession. to name a few. Sales representatives will remain the most important vehicle for communicating with physicians . 38 .Marketing to physicians is not new. These strategies.they are the face of the company and are able to provide individualised information that drives prescriptions. speaker engagements and continued medical education (CME) funding.too much to cover here . should be tailored to the region and its countries. These tactics. Much has been written about sales force effectiveness .

Revital. While chericof is a cough syrup which can be consume directly without consulting doctor and advertising is making a good money for company. In this research process information is collected from available source of information. Finding The research say that in the promotional strategy used by the companies is almost same the Medical representative who visit to doctor and explain the dose and the benefit of the drugs and try to increase sales by increasing the prescription give by the doctor. Taking the example of the advertising were Ranbaxy is using it for its product like Chericof . They also make meet chemist and the distributor who are directly indirectly the power of increasing the sales of the company. Ranbaxy have used its wish and right way of promotion through advertising which Troikaa is using its resources to reach doctors as well as consumer. Revital which is vitamin mix capsules providing energy this direct that the people suffering from the weakness can consume it without consulting doctor and Volini is the ointment which is also a pain killer which is also promoted in the market through advertising the this product while Troikaa also have the product like Dynaper which is also a pain killer and have effective business against volini and also have its ointment though the product is not been promoted through advertising. and Volini. This involves collection and analysis of any published data for a purpose other than the current one.Methodology The methodology used while preparing the report is exploratory. Interview are also conducted in this methodology the interviewee were the employee of the company so the data collected in the research was secondary data. 39 . The other form of promotional strategy which are explained above are also used by the companies here they used push and pull strategy the medical representative use this promotional strategy at the end of the month when it is the time of closing as they have to complete the target they force to the stockiest to give order so that the sale can increased as well the target are also achieved.

They decorate the front desk which the brand name and give a case to put them in an attractive way which help both the company and the chemist to increase the sales. personal selling and advertisement can definitely can make company profile. The strategy like push and pull. Many companies at small scale industry are in the business of drugs manufacturing a single product which can easy get vanished from the market by any new entrant. The small company can also increase its own business by providing product to consumer or can increase its sales by supplying is best quality product to some good company which already have good market share. business and goodwill in the market. They provide facility to the chemist to display their product which will give rise and awareness in the consumer. Both the company use the point of purchase strategy. Increasing the promotional tools like advertising can give rise to their product as well the awareness in the market. This also increases the goodwill of the doctor and the company. goodwill in the market. So increasing the product line or length accordingly can sustain them in the market as well as the promotional strategy which are terms above can be beneficial to business as these strategy can also prove themselves in small scale industry. 40 . This increases the public relation of doctor as well as of company as company provide costly medicine at free of cost at such camps.Both the companies are also doing there promotional activities by doing free check up camps and providing drugs of their own company this spreads awareness in the consumer while doctor gets benefited by new patients as well company provide instrument to doctor which are further beneficial to the doctor. Implementation These strategies are the best of the market which can provide a high return to company.

Mr. PMID 19129523. Steinman MA (January 2009). 41 . 360 (2): 103±6. "The Neurontin legacy-marketing through misinformation and manipulation".org 1. 7.com".com http://sciencecareers. Pratish.com".Henney 145 (4): 305 . Jitendra an employee of Ranbaxy Lab in Ahmedabad. 6. ^ "www. BIBLIOGRAPHY:www. 4. Engl.nz". doi:10. edition May 2005. His contact number is 9374610968. 2. 5. 145 (4): 284 -. ^ "www.Steinman et al. Having work experience of three year.pharmafocusasia. J.pharmexec. N. ^ "Narrative Review: The Promotion of Gabapentin: An Analysis of Internal Industry Documents -. ^ "Teradata Magazine | Special Section: Pharmaceutical". 10.pharmexec.sciencemag.Annals of Internal Medicine".Reference Mr. 8.1056/NEJMp0808659. ^ "www.ac. Med.chmeds.Annals of Internal Medicine". 9. ^ "Glossary Term: Key Opinion Leader". employee of Troikaa Pharmaceuticals in Ahmedabad. His contact number is 982522139. 3.chmeds.ac. Having work experience of eight year in the pharma industry. ^ "Safeguarding Patient Welfare: Who's In Charge? -.nz". ^ "www. ^ Landefeld CS. Consumer behavior text book of Icfai university.