Pharmaceutical Marketing Chapter 3: Consumer-led Shifts

Pharmaceutical Industry Marketing

• Pharmaceutical companies must maximize the revenue of their patented products due to the enormous cost and time required to bring a drug to market.
• The most important element in the marketing mix for pharmaceuticals is the product.

Shift in Distribution Model

• The pharmaceutical industry has shifted from a push-based distribution model to a pull-based model.

Center of Marketing Universe

• The patient is now at the center of the marketing universe for pharmaceuticals.

Product Characteristics

• A branded product is characterized by unique characteristics and brand identification for which a significant group of buyers is willing to make a special purchase.
• A shopping product is a type of product category where the customer usually compares quality, price, and style during the selection and purchasing process.
• An unsought product is characterized by a lack of awareness or desire for the product.

Price Control

• In the pharmaceutical industry, the doctor is often in control of the price in most other categories.

Flow of Information

• The flow of information to the ultimate end-user of prescription medications has drastically changed, moving from a push-based model to a pull-based model.
• The flow of information to the ultimate end-user of prescription medications comes from the internet, search engines, social media, and other digital channels.

Data Mining Technique

• Neural networks is a technique used for data mining in predictive modeling.

New Marketing Paradigm

• The new marketing paradigm for pharmaceuticals includes predictive modeling, personalization, peer-to-peer, and participation.
• The rise of digital channels has seen the emergence of search engines, social media, video distribution, and blogging in the pharmaceutical industry.

Nonpersonal Selling Techniques

• Some techniques utilized for nonpersonal selling in the pharmaceutical industry include advertising, sales promotions, and public relations.

Product Comparison

• Convenience products are characterized by minimal comparison during purchase.

Revenue Recoupment

• Pharmaceutical companies have limited time to recoup development costs, emphasizing the need to maximize revenue during the patent period.

Explore the changing landscape of pharmaceutical marketing, focusing on the shift from a push-based distribution model to a consumer-pulled one. Learn how pharmaceutical firms are adapting their marketing mix to accommodate this customer-led shift.