Professional Documents
Culture Documents
Received: May 2012 Shaheed Beheshti University of Medical Sciences and Health Services
Accepted: May 2012
Original Article
Abstract
an applicable model for export marketing and for the items “Orientation and Philosophy,
internationalization. Regulatory affairs skill, Recourses, Objectives
and Management commitment” in firm-side.
Experimental Items of “Healthcare system, Regulatory system,
Influencers, Accessibility, Competitors and
Methodology potential or Attractiveness of target market” in
The study was based on the development of market-side of the model have resulted values of
a self-administered survey. First, the Cavusgil 0.84, 0.85, 0.79 and 0.8, respectively.
and Zou (2) instrument was incorporated into
a preliminary questionnaire and was pretested Results
via a series of personal interviews with the
marketing managers of 7 Iranian pharmaceutical After evaluating the above-mentioned
firms involved in exporting. Following some theories and models, and analysis of data with
minor refinements, the questionnaire was sent to considering the pharmaceutical marketing
sample firms. context, the influential and relevant factors that
At least, ten experts in each of the firms have affect pharmaceutical export marketing were
been interviewed or filled the questionnaire and extracted and developed into a theoretical model
asked respondents to define effective factors in as presented in Figure 1.
aspects of firm and market that should consider After analyzing the experts’ responses
in pharmaceutical marketing. gathered from questionnaire and open-ended
The impervious and filling the questionnaire interviews, it was suggested that as the study
was done during the pre-appointed personal is pertained to the pharmaceutical field, the
meetings and explaining the questionnaire components are enough to establish a new model
before being filled. We used the questionnaire to based on the previously described Whitelock
gather the information from the key persons and model for Iran. Several aspects which are further
management teams of the firms and conducted explained were considered to be embedded in the
several interviews with some of them and also model as an alternative to some of the existing
some other opinion leaders in the healthcare parameters.
system. Based on the results, the internal properties
of the firm should be considered in light of
Sample and data collection the five dimensions as follows: orientation
The sample consisted of seven Top Iranian and philosophy, regulatory affairs skills,
Pharmaceutical firms has been selected for the resources, objectives and management
reason that they have the sum of 40% of the commitment. Meanwhile, the market-side of
domestic market share and sum of 70% of whole the model should incorporate the following
pharmaceutical exports (3). six dimensions: healthcare system, regulatory
system, influencers, accessibility, competition
Data analysis and potential or attractiveness of target market.
A Factor analysis using the principal
components method with Varimax rotation Discussion
was conducted to identify the salient factors
influencing the export marketing performance of Internationalization is a matter of committed
Iranian Pharmaceutical firms exporting affairs. decision-making, in which an organization
Six dimensions for market-side and five tries to diagnose and use opportunities in target
dimensions for firm-side of Whitelock model as markets on the basis of realistic evaluation
the conceptual model of this study were initially of internal strengths and weaknesses in order
identified. to gain presence in other countries (4). As
A test of reliability for the identified defined by Doole and Lowe, at its simplest
dimensions has resulted a Cronbach’s alpha of level, internationalization involves the firm
0.85, 0.83, 0.81, 0.76, and 0,86 respectively, making marketing mix decisions in one or
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An Export-Marketing Model for Pharmaceutical Firms (The Case of Iran)
Figure 1. The developed model for internationalization tailored for pharmaceutical firms.
more targets across national boundaries and at or geographical terms; 3) firms start their foreign
its most complex level, involves establishing, operations by using conventional exports and
manufacturing and processing the facilities gradually move towards using more intensive
worldwide and coordinating marketing strategies and demanding operation modes such as using
across the globe (5). their own sale organization, at the company and
Furthermore, Doole and Lowe addressed target country levels.
different levels of involvement in international The Uppsala model also shows that the
marketing as export marketing, providing goods internationalization is a gradual developing
or services across national and political borders, process through which every firm takes certain
International marketing, marketing activities, consecutive steps; these normally start with
interests, or operations in more than one country exporting and progress through licensing, joint
and Global marketing, focusing on selection and ventures, direct investment, and establishment
exploration of global marketing opportunities. of company owned sites across borders (6).
Internationalization has been explained in
many theories and models by earlier researchers. Eclectic paradigm and transaction cost
The well-known theories can be classified into analysis theory
the following major theoretical models. The eclectic paradigm tries to explain
the production on an international basis,
Uppsala Model of Internationalization which includes the ownership, location and
The Uppsala model seeks to explain how internalization advantages while maintaining
firms gradually intensify their activities in production abroad. This theory is a further
foreign markets. Based on this model, the main development of internalization theory which
features of the Uppsala model is as follows: 1) itself is based on the transaction cost theory.
firms begin with the domestic market before they The transaction cost theory tries to explain why
move to foreign markets; 2) firms start foreign companies exist, and why companies expand or
operations in culturally and/or geographically source out activities to the external environment.
close countries and eventually enter the other Regarding this theory, the decision to enter
markets that were further away in culture and/ international markets is made based on the firm’s
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Mohammadzadeh M and Aryanpour N / IJPR (2013), 12 (1): 249-255
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An Export-Marketing Model for Pharmaceutical Firms (The Case of Iran)
Market: Firm:
Interpretation by/perceptions of
Potential/
Decision makers
Attractiveness
(IMP)
(IMP/Business Strategy) Resources
Experiential
Experiential (Business Strategy/
Knowledge
Knowledge
Growth )Uppsala( Eclectic Paradigm)
Costs(Uppsala)
of transaction
Size
Costs of transaction
(Eclectic Paradigm)
)Eclectic Paradigm(
(IMP/Business Strategy) Orientation/Philosophy
Decision to enter market
(Business Strategy)
(Eclectic Paradigm)
Psychic Distance
(Uppsala)
it entails the two sections of the newly formed raise their performance, stimulate early demand
model. for advanced products, and focus on specialized
factor creation. Furthermore, they must stimulate
Export readiness models and theories local competition by limiting direct cooperation
Based on the theories discussed in the and enforcing anti-trust regulations.
previous section, the international business of the
domestic-born firms usually begins with export. Rahman Model
Different models and assessment methods have Rahman model focuses on an effective
been developed regarding export activities; international positioning process. It describes
those that have contributed to this study include four phases for international business as follows
Porter’s Diamond Model and Rahman Model. (14):
Phase one: Assesses the international business
Porter’s Diamond model capability of an organization.
To understand the competitive advantage of Phase two: Analyzing the external
nations, Porter offers the “Diamond Model”, environment to identify the potential international
which seeks to explain why particular industries markets.
become competitive (13). He introduced the Phase three: Making decisions about entry
concept of clusters or groups of interconnected mode choice.
firms, suppliers, related industries and institutions Phase four: Defining global competitive
that arrive in particular locations (14). advantages.
The diamond model consists of six factors This model specifically obtains the type of
including factor conditions, demand conditions, information that international business decision
related and supporting industries, firm strategy makers consider when appraising and tailoring
(structure and rivalry), government and chance. customized international positioning processes.
The concept of the model is to encourage or
even push companies to raise their aspirations Pharmaceutical marketing context
and move to higher levels of competitive As mentioned previously, the quality of
performance. They must encourage companies to pharmaceutical marketing is entirely different
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Mohammadzadeh M and Aryanpour N / IJPR (2013), 12 (1): 249-255
from that of other products. This difference or may impose trade restrictions across national
is dominated by the pharmaceutical market borders or place restrictions on marketing and
environment which is actually considered as prescription behavior (demand-side) (17).
health care environment (17).
Patients are the main customers in Whitelock modified model for Iran
pharmaceutical marketing, and health care is Whitelock model, which is basically an
provided to them through supplying medicine integration of four previously mentioned
(18). models, was found appropriate and considered
From the customer’s point of view, as a suitable base model for Iran. The favorable
pharmaceutical marketing is a multi-type position of Whitelock model over others is that
customer criterion. As the final consumers of the it discusses, compares and contrasts all four
products are individual people, it may be expected models and finally formulates them into one
to be very similar to consumer products and single model.
core marketing principals applicable to regular As the proposed model shows, the
consumer goods. However, it has specific unique pharmaceutical companies need to well
characteristics such as the fact that decision understand the international regulatory affair
makers for buying are not the consumers, but environment and to identify the effective factors
they are usually professionals or organizations of pharmaceutical business in target markets
such as physicians, hospitals, or governors who in order to involve in export marketing. The
are buying influencers (18). influencing factors or dimensions of target
Health care services are not limited to markets in pharmaceutical marketing according
supplying pharmaceutical products to patients. to our findings are: Health care system, regulatory
These services can also be prepared and delivered system, influencers, accessibility, competitors
by various centers such as: hospitals, ambulatory and potentials.
care centers, long-term care facilities, sub-acute On the other hand, the internal factors that are
care facilities, or in-home care. very effective in export readiness according to
The health care network consists of patients, the model include: orientation and philosophy,
professionals and other related centers which, regulatory affair skills, resources, objectives
as a whole, comprise the health care system. and management commitment. Consequently,
Its major components include hospitals, health the pharmaceutical companies are supposed to
maintenance organization (HMOs), insurance analyze the target markets, after assessment of
companies, pharmaceutical firms, government, internal factors and ensuring their adequacy,
physicians, pharmacists, charity organizations, considering essential factors and to investigate
etc. (17). them in order to select the best market(s) to start
To successfully launch pharmaceuticals in any export marketing.
market, it is necessary to determine and analyze Analysis of target market and matching it
the health care system of each market and design with company’s capabilities and conditions
an appropriate marketing plan according to the requires awareness of regulatory affair and
specifications of each market. export aspects. After this phase and selecting
The important differentiating factor in the target market(s), it can be supposed that the
this industry is the tough regulatory and company has acquired export readiness and can
control systems. This is due to the need for begin export marketing by choosing the best
pharmaceutical delivery to patients and its market entry mode.
association with human safety and life (19).
There are several national and international References
regulatory systems and control bodies which
(1) Anderson E and Coughlan AT. International market
control pharmaceutical activities on both the entry and expansion via independent or integrated
supply and demand side. They may focus on channels of distribution. J. Mark. (1987) 51:71-82.
patent protection, registration, pricing, and (2) Cavusgil TS and Zo S. Marketing Strategy-Performance
manufacturing of new products (the supply-side), relationship: An investigation of the empirical link in
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