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OTC & Consumer Behavior

Group-4 Surojit Saha

The Nature of Consumer Behavior


y External Influences y Internal Influences y Self-Concept y Situations y Experiences and

acquisitions

Why We Buy: Some Issues


y Questions academics relatively well: Whether, how,

why? y Questions academics answer less well:


  

How much? Which effect is stronger? What if?

Why We Buy Issues


y Conversion and interception rates y The Transition Zone y Thinking like a consumer who is in the shopping

setting! y A note on exam questions from the text: You need to have read the book to be able to answer! (The answers are not obvious.)

Self/Product Congruence
y Consumers demonstrate their values through their

purchase behavior y Self-image congruence models: we choose products when attributes matches the self

Product Usage

Self-Image

2/27/2012 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

5-5

Marketing Strategy and Consumer Behavior

MARKET ANALYSIS

MARKET SEGMENTATION

MARKETING STRATEGY

CONSUMER DECISION PROCESSES

OUTCOMES

Introduction OTC Drugs OTC Drugs means drugs legally allowed to be sold Over The Counter, i.e. without the prescription of a Registered Medical Practitioner. In India, though the phrase has no legal recognition, all the drugs that are not included in the list of prescription drugs are considered as non-prescription drugs (or OTC drugs). Prescription Drugs are those that fall under two schedules of the Drug and Cosmetics Rules, 1945: Schedule H and Schedule X. Drugs falling under Schedule G require the following mandatory text on the label: Caution: It is dangerous to take this preparation except under medical supervision and hence are not advertised to the public voluntarily by the industry. In India, the import, manufacture, distribution and sale of drugs and cosmetics are regulated by the Drugs and Cosmetics Act (DCA) and its subordinate legislation, the Drugs and Cosmetics Rules (DCR).

The following OTC medicines advertising can be seen on TV in India: Digestives Antacids Antiflatulents Cold rubs and analgesic balms/creams Vitamins/tonics/health supplements (especially herbals and Ayurvedicregistered) Medicated skin treatment Analgesic/cold tablets Antiseptic creams/liquids Glucose powders Cough liquids Throat lozenges Medicated dressing (band-aids) Baby gripe water.

Market data on OTC medicines India is currently ranked 11th in the global OTC market in size, with an estimate that it will reach 9th position within five years.(Source :Nicholas Hall & Company,India,DB6 2006) Currently the Indian OTC market (i.e. nonprescription advertised medicines) is estimated to represent approximately Rs.104 Billion growing at about 8-9% (Source :ORG-IMS)

Major source of information of OTC medicines

The changing consumer


The consumers are changing ,they are more informed, use more gadgets, lead a fast life. Stressful workplace environment and fast changing technology put continuous pressure to adapt and adjust Changing lifestyle with smaller living space, less exercise(sedentary jobs), taking junk food . Consuming addictive products to stay awake on the job for longer hours and eating on the run put more stress on the body which get expressed in the form of psychosomatic disorders like frequent headache, allergy, common cold, constipation, backache, acidity, chronic fatigue etc.

... which they are trying to manage with Over The Counter (OTC) drugs.

enfranchised customer of today feels more independent and self reliant and is hesitant to adopt the orthodox model of expert prescription, monitored medication and supervision throughout the treatment period to manage common ailments. With increasing medico legal cases, Doctors are also not ready to take any risk and insist on detailed investigation to diagnose even a common ailment. This adds to the already existing high cost of following an orthodox model. Most of the OTC drugs are safe, effective, economical and since it is available with out a prescription, the perceived value of OTC medication is higher compared to orthodox model for common ailments. Self-administration of treatment with over-the-counter drugs relies on the patient's judgment, supplemented by the information on the label, for correct diagnosis of the disorder or symptom. An incorrect diagnosis may lead to the use of an over-the-counter drug that has no efficacy in treating the actual condition present. In general, the dangers of misdiagnosis involve both the potential adverse effects of the drug when inappropriately used and the risks associated with lack of treatment for the actual cause of the symptoms.

In the OTC drug marketing, the Customer and Consumer being the same, companies have to immediately address the information needs more effectively and on a continuous basis. The acceptability of OTC drugs will improve once the awareness level is enhanced. When the knowledge of the traditional medicine is rooted in the culture, the knowledge about allopathic OTC drugs has to be disseminated by manufacturing company and ensure drastic reduction in the high information asymmetry existing today. The OTC drug offering is incomplete with out empowering the public on its rational use through well planed strategic marketing initiative revolving around the aliment, the knowledge to diagnose and manage the same. In this empowerment process which can be considered as CSR, the objective should be prevention and holistic awareness creation leading to health and wellbeing than just offering the minimum needed information to use ones products. Thus by educating public (consumer) on how to manage common ailments and finally how to prevent them, the pharma companies can achieve its real goal of health for all and improve the

The social benefit at a national level will be lesser work load on general practitioners, lesser crowding in primary health centers (PHCs), pharmacists who are more empowered to guide and counsel patients and more confident public who are in a better position to take more informed choice of the best available solution to treat their common ailments and prevent the frequent occurrence of the same. This will increase productivity at work and every one in society can make superior contribution towards nation building as it strives to be a developed one.

Benefits and risks of switching from prescription only to OTC Possible Benefits 1.Increased access 2.Decreased frequency of visits to physicians, leading to lower healthcare costs 3. Improved education of consumers 4. Increased autonomy of patients 5. Decreased cost to third party players Possible risks Inaccurate diagnosis 2. Delay in obtaining needed therapy 3. Use of suboptimal therapy 4. Drug resistance 5. Increased costs to patients 6. Failure to follow label instructions (Adverse effects, Drug interactions) 7. Perceived loss of control by physicians

Prescription & OTC Drugs


Prescription drugs are available only by recommendation of an authorized health professional, such as a physician. Nonprescription (over-the-counter, or OTC) drugs are available on request and do not require approval by a health professional. Prescription and OTC drugs have been viewed differently by the public sine the classifications were established by theDurham-Humphrey Amendment of 1951. In general, the public views OTC drugs as minimally effective and safe and prescription drugs as more potent and frequently dangerous However, these distinctions are not always accurate

OTC Drugs Interesting Facts


Each year the U.S. spends over $14 billion on OTC drugs More than 300,000 different OTC products are available on the market OTC expenditures comprise 60% of the annual drug purchase in the U.S. An estimated 3 out of 4 people routinely self-medicate with these drug products

Abuse of OTC products

OTC products generally have a greater margin of safety than their prescription counterparts, but issues of abuse need to be considered. Physical dependence Psychological dependence

OTC drugs and self-care

More than one-third of the time people treat their routine health problems with OTC medications to receive symptomatic relief from their ailments. If done correctly, self-care with OTC medications can provide significant relief from minor, self-limiting health problems at minimal cost.

Label information controlled by the FDA


When to use Product name Identity Active ingredients Quantity Manufacturer How to use What to watch for OTC Antacids Ingredients: 12 fl. oz. GOTCHA, INC. Indications Directions: Warnings: Precautions: Expiration date: Possible drug interactions When drug should no longer be used

Types of OTC drugs


Internal analgesics Analgesics Salicylates Therapeutic considerations Analgesic actions Anti-inflammatory effects Antipyretic effects Side effects Cold, allergy and cough remedies Decongestants Antitussives Expectorants Vitamin C Sleep aids Melatonin Stimulants Look-alike and act-alike drugs

Table 1-Everyday ailments for which people report treating themselves rather than seeking a consultation with a doctor Category Traditional medicines Cough and cold preparations Vitamins and minerals Analgesics Medicated skin products Other % share 27.30 19.80 11.60 11.40 2.60 27.30