Podcast
Questions and Answers
What are the four key components of the AIDA model in promotional message design?
What are the four key components of the AIDA model in promotional message design?
Which promotional strategy is primarily focused on gaining consumer attention through extensive advertising?
Which promotional strategy is primarily focused on gaining consumer attention through extensive advertising?
Which of the following factors does not influence the selection of a promotion mix strategy?
Which of the following factors does not influence the selection of a promotion mix strategy?
What is the main purpose of the segmentation, targeting, and positioning (STP) strategy in pharmaceutical marketing?
What is the main purpose of the segmentation, targeting, and positioning (STP) strategy in pharmaceutical marketing?
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In the context of pharmaceutical marketing, what does the strategic planning process primarily aim to achieve?
In the context of pharmaceutical marketing, what does the strategic planning process primarily aim to achieve?
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What is a likely impact of pharmaceutical market trends on the decision to withdraw a product?
What is a likely impact of pharmaceutical market trends on the decision to withdraw a product?
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Why is setting the total promotion budget a challenging decision for pharmaceutical companies?
Why is setting the total promotion budget a challenging decision for pharmaceutical companies?
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What is the primary reason why consistent positioning is crucial for a pharmaceutical product?
What is the primary reason why consistent positioning is crucial for a pharmaceutical product?
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How does identifying the product life cycle (PLC) assist in strategic marketing planning?
How does identifying the product life cycle (PLC) assist in strategic marketing planning?
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Which of the following describes a characteristic of market segmentation?
Which of the following describes a characteristic of market segmentation?
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What does the 'SW' in SWOT analysis represent?
What does the 'SW' in SWOT analysis represent?
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Which of the following is considered a threat in the pharmaceutical market?
Which of the following is considered a threat in the pharmaceutical market?
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What is the primary purpose of using SWOT analysis in pharmaceutical marketing?
What is the primary purpose of using SWOT analysis in pharmaceutical marketing?
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Which of the following is an example of a weakness in a SWOT analysis?
Which of the following is an example of a weakness in a SWOT analysis?
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In SWOT analysis, opportunities are typically associated with which type of factors?
In SWOT analysis, opportunities are typically associated with which type of factors?
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Which of the following statements about the SWOT analysis method is true?
Which of the following statements about the SWOT analysis method is true?
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Which characteristic is an example of a strength in a company's SWOT analysis?
Which characteristic is an example of a strength in a company's SWOT analysis?
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What tactical output can be expected from a thorough SWOT analysis?
What tactical output can be expected from a thorough SWOT analysis?
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What is the primary purpose of market segmentation in pharmaceutical marketing?
What is the primary purpose of market segmentation in pharmaceutical marketing?
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Which of the following is NOT considered a type of market segmentation?
Which of the following is NOT considered a type of market segmentation?
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Which segmentation type focuses on the location and geographical characteristics of the target market?
Which segmentation type focuses on the location and geographical characteristics of the target market?
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What type of segmentation considers customers' personalities, opinions, and values?
What type of segmentation considers customers' personalities, opinions, and values?
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Which segmentation method looks into customer behaviors such as brand loyalty and purchase habits?
Which segmentation method looks into customer behaviors such as brand loyalty and purchase habits?
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Which variable is frequently used in demographic segmentation?
Which variable is frequently used in demographic segmentation?
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What advantage does combining different segmentation variables provide?
What advantage does combining different segmentation variables provide?
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Which of the following statements about market segmentation is most accurate?
Which of the following statements about market segmentation is most accurate?
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What is one of the primary challenges companies face regarding promotion budgets?
What is one of the primary challenges companies face regarding promotion budgets?
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Which approach to setting the promotion budget is based on determining objectives and estimating costs?
Which approach to setting the promotion budget is based on determining objectives and estimating costs?
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Which budget setting method relies on a certain percentage of current or forecasted sales?
Which budget setting method relies on a certain percentage of current or forecasted sales?
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What is a key component in the strategic planning process of pharmaceutical marketing?
What is a key component in the strategic planning process of pharmaceutical marketing?
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Which method of setting the total promotion budget is based on competitors’ budgets?
Which method of setting the total promotion budget is based on competitors’ budgets?
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Which aspect does the Objective-and-Task method emphasize in determining the promotion budget?
Which aspect does the Objective-and-Task method emphasize in determining the promotion budget?
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In the context of pharmaceutical marketing, what is the purpose of segmenting dimensions?
In the context of pharmaceutical marketing, what is the purpose of segmenting dimensions?
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What is a common limitation of the affordable method for setting the promotion budget?
What is a common limitation of the affordable method for setting the promotion budget?
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Which of the following factors is NOT considered when evaluating the attractiveness of target market segments?
Which of the following factors is NOT considered when evaluating the attractiveness of target market segments?
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What does positioning refer to in pharmaceutical marketing?
What does positioning refer to in pharmaceutical marketing?
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Which characteristic is NOT considered a good competitive advantage in positioning?
Which characteristic is NOT considered a good competitive advantage in positioning?
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What may happen if a product is over-positioned?
What may happen if a product is over-positioned?
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What is the primary focus when narrowing down to target market segments?
What is the primary focus when narrowing down to target market segments?
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Which of the following is an example of a market segment in pharmaceutical marketing?
Which of the following is an example of a market segment in pharmaceutical marketing?
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Which point is critical when developing a positioning strategy?
Which point is critical when developing a positioning strategy?
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What is meant by ethical positioning in pharmaceutical marketing?
What is meant by ethical positioning in pharmaceutical marketing?
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Study Notes
Pharmaceutical Marketing
- This is a lecture on pharmaceutical marketing
- It covers principles of pharmaceutical marketing and drug promotion
- The lecture includes topics like promotional message design, promotion mix strategies, setting the total promotion budget, strategic planning, and pharmaceutical market analysis
- It also covers segmentation, targeting, positioning (STP), and product life cycle (PLC)
- The AIDA model is a key element in promotional message design (Attention, Interest, Desire, Action)
Promotional Message Designing Criteria
- Attention: Grab attention
- Interest: Hold attention through promotional features
- Desire: Make desirable needs
- Action: Obtain purchase action
Promotion Mix Strategies
-
Pull Strategy: Focuses on consumer demand; substantial advertising and consumer promotion to drive demand
- The strategy selection depends on product type and market, life-cycle stage
-
Push Strategy: Focuses on using salesforce and trade promotion to push product through channels
- The strategy selection depends on product type and market, life-cycle stage
Promotion Mix Strategies - Stages
-
Pull Strategy:
- Stage 1: Awareness (disease awareness)
- Stage 2: Evaluation (identify problem through questionnaires, solution aware, treatment options)
-
Push Strategy:
- Stage 3: Conversion (Brand Awareness)
Promotion Strategies
- Pull strategy: Shows promotion efforts from producer to distribution channels (pharmacies) to customer, with demand in the middle
- Push strategy: Shows promotion efforts from producer to distribution channels (pharmacies) to customer, with demand in the middle
Setting the Total Promotion Budget
- One of the hardest marketing decisions
- Methods include:
- Affordable (based on what the company can afford)
- Objective-and-task (based on determining objectives & tasks, then estimating costs)
- Percentage of sales (based on a certain percentage of current or forecasted sales)
- Competitive-similarity (based on competitor's promotion budget)
Strategic Planning in Pharmaceutical Marketing
- The strategic planning process involves narrowing down to a focused strategy using quantitative and qualitative screening criteria
- Factors include:
- Customers (needs and segmenting dimensions)
- Company (mission, objectives, & resources)
- Competitors (current and possible)
- External Market Environment (technology, political, legal, social, cultural, economic)
Strategic Planning in Pharmaceutical Marketing (Steps)
- Goals/Objectives
- SWOT Analysis
- Strategy
- Implementation
- Measurement and Evaluation
Issues to Be Determined in a Pharmaceutical Marketing Plan
- Nature of the pharmaceutical product
- Product design, quality, features, and packaging
- Product selling outlets and distribution channels for availability and transportation
- Optimum price, discounts, payment period, and credit
- Promotion plan (advertising, sales promotions, public relations, medical representatives, brochures, printed material)
Pharmaceutical Market Analysis
- SWOT analysis: A tool used by organizations to help determine strengths, weaknesses, opportunities, and threats
- Used as a framework to develop overall marketing or product strategies
Pharmaceutical Market Analysis - SWOT Method
- Strengths & Weaknesses (SW): Internal factors controllable by the company/product
- Opportunities & Threats (OT): External factors in the market/environment (uncontrollable)
Pharmaceutical Market Analysis - Importance of SWOT
- Optimizes segment selection for attack
- Communicates positioning message
- Defines bringing-success strategy
- Establish priorities for tactical objectives
- Developing a tactical plan
- Checking final details
Example for Questions to be Answered in SWOT Analysis
- Strengths: What resources, advantages, and working aspects can be deployed?
- Weaknesses: What capabilities are lacking? Areas where challenges are encountered? How to overcome?
- Opportunities: Which groups value company strengths? Favorable trends in the situation? Reachable goals?
- Threats: Challenges, potential rivals, possibilities that could adversely impact the company
Segmentation, Targeting, & Positioning (STP)
- Segmentation: Dividing the market into distinct customer groups using segmentation practices
- Targeting: Determining the customer group to focus marketing efforts on
- Positioning: Creating a product positioning and marketing mix to appeal to selected target
Market Segmentation- Types
- Geographic
- Demographic
- Psychographic
- Behavioral
Targeting Segments - Overview
- Based on attractiveness evaluation of target market segments
- Factors include:
- Size
- Growth
- Competition effects
- Availability of substitutes
- Buyer power
- Company objectives
- Resources
Positioning - Overview
- The place a product occupies in consumer minds relative to competing products
Positioning - Strategy
- Consistent communication of the chosen position to establish difference in target customers' minds
- Factors include:
- Competitive advantages
- Points of equality
- Points of difference (differentiation)
Positioning - Strategy
- Choosing right competitive advantages (important, distinctive, superior, communicable, affordable, profitable)
Positioning Errors
- Under-positioning
- Over-positioning
- Confused positioning
Positioning - Strategy - Models
- Generic product position and value propositions - a two-by-two matrix examining the position based on benefits and price
Product Life Cycle (PLC)
- The stages a product goes through from development to withdrawal from the market
- Each product has a different life cycle
- Helps in strategic marketing planning when a product needs support, redesign, refreshing, or withdrawal
Product Life Cycle - Stages
- Introduction
- Growth
- Maturity
- Decline
Introduction Stage Features
- High expenses
- Slow sales volume
- Little to no competition
- Creating demand needed
- Trigger customers to try the product
Growth Stage Features
- Expenses relatively reduced
- Sales volume and profit increase significantly
- Increased customer awareness
- Growing competition with new players
- Proper positioning and delivering desired benefits
- Creating new entry barriers for competitors
Maturity Stage Features
- Expenses significantly lowered
- Maximum sales volume and profit, market saturation reached
- Increased competitors entering
- Emphasized brand differentiation and feature diversification to maintain/promote market share
Decline Stage Features
- Expenses very low
- Sales volume and profit decrease or stabilize
- Maintaining production/distribution efficiency more crucial than increased sales
- Decision to withdraw determined by new product availability and trends
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Description
This quiz explores the principles of pharmaceutical marketing, drug promotion strategies, and promotional message design. Key concepts such as the AIDA model, market analysis, and the STP framework are included to enhance understanding. Test your knowledge on various promotion mix strategies and the product life cycle.
