27 Questions
What does the WHO define as pharmaceutical promotion?
All activities that induce the prescription, supply, purchase, and/or use of medicinal drugs
According to Devlin and Hemsley, what percentage of pharmaceutical companies' revenues is allocated to marketing?
35%
What is considered the largest chunk of the allocations in pharmaceutical promotion?
Promotion
What does the 6 Ms model provide a cue for in planning communications strategy?
Tasks in planning communications strategy
What does promotion include according to the text?
Activities of medical representatives and all other aspects of sales promotion
According to WHO, what effect do pharmaceutical promotional activities have?
To induce the prescription, supply, purchase, and/or use of medicinal drugs
What are the three major types of sales promotion?
Consumer promotions, trade promotions, retail promotions
Which element of the promotional mix presents the advantage of permitting an interaction to take place between the firm and a potential customer?
Personal selling
What determines the proper allocation of budget across various media vehicles?
Market situation
Which non-personal element is particularly effective in creating or enhancing a brand image?
Advertising
What is the main purpose of sales promotion?
To generate short-term action
What is a marketing channel?
A set of independent organizations involved in the process of taking a product or service to market
What is the main goal of a marketing channel strategy?
To ensure that the overall channel system operates efficiently and effectively
What role do distributors, wholesalers, brokers, franchisees, and retailers play in a marketing channel system?
They collaborate with each other to make products and services available for use or consumption
How does an effective marketing channel strategy contribute to competitive advantage?
By delivering superior customer value and ensuring expected quality by consumers
What is the significance of an effective channel system?
It aims to make products and services available and easy for users to buy, in accordance with their preferences
What does a marketing channel system comprise?
Many organizations, each with specific strengths and weaknesses, including distributors, wholesalers, brokers, franchisees, and retailers
What is another term for marketing channels?
Sales channels
Which entities are involved in every marketing channel according to the text?
Manufacturers, intermediaries, and end-users
What type of channels does a seller use to deliver messages and receive messages from targeted consumers?
Communication channels
Who is often the channel captain in a marketing channel?
Manufacturers
What must manufacturers do until their products leave their manufacturing sites and travel to the next channel member?
Maintain ownership of the product
What type of entities facilitate transactions in marketing channels?
Commercial/service channels
What does the term 'distribution channels' refer to in marketing?
Channels for displaying products to buyers
Which type of marketing channels include newspapers, magazines, radio, television, and the Internet?
Communication channels
'Distribution channels' may include which of the following?
Warehouses and vehicles
What are the three key entities involved in every marketing channel?
Manufacturers, intermediaries (wholesale, retail, and specialized), and end-users (business customers or consumers)
Study Notes
Pharmaceutical Promotion
- The World Health Organization (WHO) defines pharmaceutical promotion as any activity undertaken by a pharmaceutical company to promote the sale or use of its products.
- According to Devlin and Hemsley, pharmaceutical companies allocate approximately 20-30% of their revenues to marketing.
- The largest chunk of the allocations in pharmaceutical promotion is spent on sales representatives and their training.
The 6 Ms Model
- The 6 Ms model provides a cue for planning communications strategy by focusing on Mission, Money, Message, Media, Measurement, and Management.
Promotion
- Promotion includes advertising, personal selling, sales promotion, public relations, and digital media.
Effects of Pharmaceutical Promotional Activities
- According to the WHO, pharmaceutical promotional activities can lead to inappropriate or over-prescription of medications.
Types of Sales Promotion
- There are three major types of sales promotion: consumer promotions, trade promotions, and sales force promotions.
Promotional Mix
- The personal selling element of the promotional mix presents the advantage of permitting an interaction to take place between the firm and a potential customer.
- The allocation of budget across various media vehicles is determined by the cost-effectiveness of each medium.
Marketing Channel
- A marketing channel is a system of organizations and individuals that work together to make a product or service available for use or consumption by the consumer or industrial user.
Marketing Channel Strategy
- The main goal of a marketing channel strategy is to create a system that can efficiently and effectively move goods from the manufacturer to the end customer.
- Distributors, wholesalers, brokers, franchisees, and retailers play a crucial role in a marketing channel system by facilitating the movement of goods from one stage to another.
- An effective marketing channel strategy contributes to competitive advantage by increasing efficiency, reducing costs, and improving customer satisfaction.
- A marketing channel system comprises multiple entities that work together to make a product or service available to the end customer.
- Another term for marketing channels is distribution channels.
- Every marketing channel involves producers, intermediaries, and customers.
- Manufacturers must manage their products until they leave their manufacturing sites and travel to the next channel member.
- Intermediaries, such as wholesalers and retailers, facilitate transactions in marketing channels.
Distribution Channels
- Distribution channels refer to the pathways through which products or services move from the producer to the end customer.
- Distribution channels may include intermediaries such as wholesalers, retailers, and distributors.
- The three key entities involved in every marketing channel are producers, intermediaries, and customers.
This quiz covers the content of Chapter 4 on pharmaceutical promotion and marketing, including the definition of pharmaceutical promotion by WHO, activities involved in promotional efforts, and the impact on prescription and use of medicinal drugs.
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