Pharmaceutical Marketing

Introduction

What makes physicians and dentists prescribe

medicines in either branded or generic forms of a
particular drug company?
Why do pharmacists, pharmacy aides , and
salesclerks in drugstores recommend or endorse
pharmaceutical products of one company over those
of other brands with the same generic names of other
drug companies?
How do consumers or end users choose their
medicines for common ailments?
WHO
The global pharmaceuticals market is worth
US$300 billion a year, a figure expected to rise to
US$400 billion within three years. The 10 largest
drugs companies control over one-third of this
market, several with sales of more than US$10
billion a year and profit margins of about 30%.
Companies currently spend one-third of all sales
revenue on marketing their products - roughly
twice what they spend on research and
development.
Pharmaceuticals with new chemical entities cost
$465 each to register, and registration is valid for
three years. Generic pharmaceuticals cost $170
each to register, and registration is valid for five
years. After this time is up, products can be
renewed for two and five years, respectively. It
generally takes the FDA six months to review and
approve a pharmaceutical product.
PHARMACEUTICAL ADVERTISING
Direct-to-consumer ads are banned for
prescription drugs but are permitted for OTC
drugs in the Philippines. Advertisements do not
need to obtain prior approval from the FDA,
but samples of promotional materials have to be
filed with the FDA for reference
Pharmaceutical marketing
Is a unique bundle of management
decisions directed to satisfy, delight,
and surprise customers in the
pharmaceutical business, their needs
and wants through the exchange of
products and value with others, towards
early realization of desired goals.
Maslow’s Hierarchy of Needs
Sel
f
act
ual
iza
tio
Ego needs
n
Social needs
Security and safety
needs
Physiological or body needs
Pharmaceutical Markets
A. The Traditional Markets
B. The Non-traditional Markets

Traditional markets includes;

1. Community pharmacy/ drugstore
2. Hospitals
3. Industrial clinics
4. Medical clinics
Non-traditional markets includes;
1. Groceries and supermarkets
2. Trading stores and sari-sari stores
3. NGO’s and socio-civic charitable organizations
 Drugstores (Community Pharmacy)
These type of sales outlets operate either as wholesalers, retailers
or both and are estimated no less than 15,000 stores nationwide.
They carry in their establishments assorted merchandise form
ethical, OTC, or proprietary drug products to galenicals,
chemical reagents, toiletries and skin care lines.
The drugstores are manned by licensed pharmacists both in
wholesale and retail operations.
This is regulated and controlled by the Food and Drug
Administration.
Hospitals

Primary, Secondary and Tertiary hospitals

There are approximately 6,000 private and government
hospitals nationwide and dispensed to in-patients, out
patients and the general public.
Formulary , an official listing of medicines and supplies to
be carried by the hospital pharmacy
Industrial clinics
These are business establishments/ industrial companies that
maintain medical and dental services, purchase medicines
and supplies for employees’ use of free or discounted rates.

Medical Clinics/ Dispensing Physicians

These are compose of physicians maintaining Generic or
branded drug products in commercial supply in their private
clinics who purchased either directly from medical rep of
drug companies or from large wholesalers.
 The Marketing Management Process in the
Drug Industry

A. Analyzing Marketing Opportunities

B. Selecting Target Markets
C. Developing the Marketing Mix
D. Managing the Marketing Efforts to Meet the
Changing Conditions in the Healthcare Business
 Analyzing Marketing Opportunities

Factors to consider:
Attitudes
Perceptions
Feelings
Impressions
Buying motivations
External environment
Internal environment
 Selecting Target Markets
Four steps:
1. Demand measurement and forecasting
2. Market segmentation
3. Market targeting
4. Market positioning

Forecasting?
represents “”action Guides”
short term, budget forecast and long term
 Market segmentation
Process of classifying customers into groups with different
needs , characteristics or behaviour
Market Positioning

Is the place the product occupies in consumer’s minds

relative to competitors
Distinguish their products from competing products &
gives them the greatest advantage in their target markets.
Marketers can adopt various positioning strategies.

Products can be positioned on specific product attributes –

Sunsilk keeps hair soft and shining.
Products can be positioned on the needs they satisfy or the
benefits they give – Peps Flouride prevents tooth decay.
Another approach is to position the product away from
competing products. For many years, 7-up has positioned
itself as the “Un-cola,” the fresh and thirst-quenching
alternative to Coke and Pepsi.
Products are also positioned for different product classes.
For example, some hair creams are positioned against hair
oils. Marketers often use a combination of the strategies
discussed above.
Developing the Marketing Mix
Set of controllable marketing variables that the firm
blends to produce the response it wants in the target
market
4P’s (Product, Price, Promotion and Place)
 Product
refer to goods and services
Price
Stands for the amount of money customers have to pay
to obtain the product.
Place
It’s the company activities that make the product
available and visible to target consumers at the right
place, right time, right quantity, right cost, and right
condition.
Promotion
Stands for activities that communicate the merits of
the product and persuade target customers to buy it.
Thank you for listening!!!
 Product mix
Terminologies:
PRODUCT
 Product line
 Product mix
 Product life cycle
BRAND
 Brand name
 Brand mark
TRADEMARK
PRODUCT
is anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy and
delight a need or want of the target clientele.

Three levels of product

1. Core product answers the question , What is the buyer
really buying?
2. Features of the product including the packaging
3. After sales of product
Strategies for product decision
1. Establishing a product line
is a group of products that are closely related
2. Establishing a product mix
also called product assortment ( is the set of all
product lines and items that a particular seller offers for
sale to buyers)
Pharmaceutical product life cycle strategies
1. Introductory stage
a period of very low sales performance during the
first few months to one year or more after being formally
introduced into the market.
consignment or initial stocking-up to target outlets
are applied as part of company’s strategies

2. Growth stage
is a period of increasing sales and profit performance
because the new drug product has entered the growth
stage.
3. Maturity stage
is a period characterized by the slowing down of the
product’s sales volume reaching a plateau.

4. Decline stage
a period characterized by continuous drops in sales of most
product format and brands, at a low level for many years.
Brand?
Is a name, term, sign, symbol, design, or combination
of these, intended to identify the goods or services of
one seller or group of sellers and to differentiate them
from those of competitors.
Brand name
• is the part of a brand that can be vocalized- is utterable
Brand mark
Is that part of the brand which can be recognized but is
not utterable such as its symbol, design or distinctive
coloring or lettering
Trademark?
Is a brand or part of a brand that is given legal
protection. It protects the seller’s exclusive rights to
use the brand name or brand mark.