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.