Pharmaceutical Marketing Lecture Notes PDF

P M Pharmaceutical Marketing By Dr.Alaa Essmat Pharmaceutical Marketing  ECU-University P M Faculty of Pharmacy Principles of Ph. Marketing and Drug Promotion Dr. Alaa Essmat...

P M Pharmaceutical Marketing By Dr.Alaa Essmat Pharmaceutical Marketing  ECU-University P M Faculty of Pharmacy Principles of Ph. Marketing and Drug Promotion Dr. Alaa Essmat Lecture (5) Pharmaceutical Marketing  P M Lecture Outline General concepts of Pharmaceutical Marketing. Differences between Marketing and Sales. Types of competition in the Pharma Market. External forces affecting the marketing of products. Marketing mix principles (4Ps). Tools of Promotional Strategy. Medical promotion. Pharmaceutical Marketing  P M General Benefits of Pharmaceutical Marketing  Describe certain pharmaceutical products or services to potential buyers (doctors/patients) using various techniques.  Describe how this product/service differs from others in the market.  Establish its branding and any philosophy or values associated with it.  Develop long-term relationships with possible customers.  Gain maximum profit and achieve the planned goals professionally. Pharmaceutical Marketing  P M Simple Marketing System Pharmaceutical Marketing  P M Elements of Pharmaceutical Marketing System Ph. Company. The producer The intermediary Doctor (Physician / Pharmacist) The consumer Patient (End-User) Pharmaceutical Marketing  P M Buying function vs. selling function Buying function:  looking for and evaluating products or services. Selling function:  it involves promoting the product, and it includes the use of personal selling, advertising, or other direct and mass selling methods. Pharmaceutical Marketing  P M What are the differences between Marketing and Sales? Marketing Sales Customer orientation - Listens to and ensuing Result orientation - makes customer demand match Approach: accommodation of the target market and the products the company currently offers determine future needs Process: One to many Usually one to one Generate leads - fulfill customer's wants and Generate purchases/orders - fulfill sales volume Focus: needs thru products and/or services the objectives company can offer Horizon: Longer term Short term Identifying customer needs (research), creating Once a product has been created for a customer’s Scope: products to meet those needs, and promotions need, persuade the customer to purchase the to advertise products. product to fulfill their needs Strategy: Pull strategy Push strategy Concept: Marketing is a wider concept Sales is a narrower concept Marketing shows how to reach to the Sales is the ultimate result of marketing Priority: Customers Pharmaceutical Marketing  P M Aim of Promotion Promotion Aim: To encourage the existence or progress of a product, service, idea, or organization. Two major objectives of any promotion program: 1. Information. 2. Persuasion. Pharmaceutical Marketing  P M Marketing must focus on Customers!  Marketing means “the whole It works in this way: business seen from the point of view of the final result” (i.e. from the patient or the customer's point of view). (Patients) Pharmaceutical Marketing  P M *How do consumers choose among products or services? 1. Customer value:  Value gained from owning a product and costs of obtaining the product. (benefits/costs) or (what you get / what you give). 2. Customer satisfaction:  The product’s performance in delivering value relative to the buyer's expectations (Value delivered / Expectations). Pharmaceutical Marketing  P M * Marketing management philosophies 1-Consumers favor products that are: Available, highly affordable, and always in improved production and distribution forms. 2-Consumers favor products that offer the highest quality performance and innovative features. Pharmaceutical Marketing  P M * Marketing management philosophies (Cont.) 3- Consumers will select products that deliver superior value better than competitors. 4- Consumers will buy products only if the company promotes /sells the products focusing on the needs, and wants of target customers/markets and delivering satisfaction. Pharmaceutical Marketing  P M * Marketing management philosophies (Cont.) Needs Vs. Wants A need is something thought to be a necessity or A want is something unnecessary but desired or items essential item required for life. that increase the quality of living. * Examples of needs: Food, Water, Shelter *Examples of wants: Fancy, Luxury, Trend-based items Pharmaceutical Marketing  P M Connections with customers Most marketers are targeting the most potential and more profitable customers…. According to “Pareto principle”: The top 20% of customers generate 80% of profit. Pharmaceutical Marketing  Connections with customers (Cont.) P M Marketers have shifted ( in many companies) towards: a- keeping current customers. b- Building lasting relationships based on superior satisfaction and value. To make a new customer costs 5 times more than keeping an existing loyal customer. (Every year drug companies lose about 10% of their customers) due to the tough competition. Pharmaceutical Marketing  P M Marketing Channels 1. Communication channels: a. Dialogue channels (e.g. Personal selling) b. Monologue channels (e.g. Digital Marketing) 2. Distribution channels (e.g. Drug stores, Distribution companies( 3. Selling channels ( e.g. Pharmacies)  (Choosing the best Mix of the three is difficult but a must) Pharmaceutical Marketing  P M Competition in Pharma Market Pharmaceutical Marketing  P M Competition in Pharma Market (Includes all of the actual or potential rival offerings and substitutes that a buyer might consider).  Types of competition: 1-Brand competition. * A company sees its competitors as other companies that offer similar products or (services to the same customers at similar prices) e.g.( Diamicron vs. Amaryl ) Pharmaceutical Marketing  Competition in Pharma Market P M 2-Industry competition: - A company sees its competitors as all companies that make almost the same product quality or class of products. e.g.Pfizer vs. Novartis 3-Form competition: - A company sees its competitors as all companies that supply the same product form. (e.g. All Antibiotic vials ) Pharmaceutical Marketing  P M External forces affecting the marketing of products 1-Political: - Politics. - Decisions made by the government. - Policies. 2 -Economical: - Nationally and globally Pharmaceutical Marketing  P M External forces affecting the marketing of products 3- Society forces: - As family, friends, and media affect our attitudes, interests, opinions, what we buy, and how we behave. (If a change in the structure of a population happens, this will affect the supply and demand of goods and services). 4 -Technological: - Internet - As technology evolves quickly, R&D departments are pressured to develop up-to-date technology products to get a competitive edge Pharmaceutical Marketing  P M Marketing mix principles (4Ps) ( Used in marketing as tools to assist in achieving the predetermined objectives) The 4 p's are: Product, Price, Place, Promotion These are controllable variables that must be managed carefully to meet the needs of the target group/ Customers. Pharmaceutical Marketing  P M Marketing mix principles ( 4Ps) Marketing Mix Promotion Product Customer Customer Price Place Communication Solution Customer Customer Cost Convenience Pharmaceutical Marketing  P M Marketing mix principles ( 4Ps) Pharmaceutical Marketing  P M Tools of Promotional Strategy The promotional strategy tools of a company consist of: 1- Advertising: “Any form of communication using any form of mass media or a controlled message in purchased time or space”. -(It is non-personal and paid) Pharmaceutical Marketing  P M Tools of Promotional Strategy “Medical Advertising” The pharmaceutical companies argue that advertising helps to change the health habits of people  they consult their doctors more. And that advertising in medical journals/web- sites remains one of the primary sources of doctor’s up-to-date information. Pharmaceutical Marketing  P M Tools of Promotional Strategy  Forms of advertising include: Journals Direct mail & e-mail Bill boards Newspapers TV Salespeople Newsletters Directories & and reference books Electronics (video material, internet) Word of mouth. Pharmaceutical Marketing  P M Tools of Promotional Strategy  Driving forces for medical advertising are:- Market competition. Similarity of some products. Limitation of the pharmaceutical product “Patent period”. Pharmaceutical Marketing  P M Tools of Promotional Strategy Cont. Promotional strategy tools of a company: 2-Public relations: - Developing positive relationships with the public and target customers. 3-Sales promotion: - Special offers for a certain period of time 4-Direct mail: - To correspond or send newsletters by mail to a named person among the targeted segment. 5- Personal selling : - One-to-one selling – “word of mouth” ( Medical Promotion) Pharmaceutical Marketing  Medical Promotion P M “Medical promotion” WHO definition for medical promotion: “All informational and persuasive activities by manufacturers that help to induce the prescription, supply, purchase, and/or use of medicinal products”. *Promotion is usually performed by well- trained “Medical representatives Pharmaceutical Marketing  Medical Promotion P M  Who is a Medical Representative? A medical representative is a provider of information to make doctors, Pharmacists, and other medical professionals (e.g. Nurses) more knowledgeable. Medical reps promote new products, devices, and drugs designed to cure illnesses. Without medical reps, doctors and pharmacists would not become aware of new advancements in treatments, more effective drugs, and devices that provide enhanced treatment opportunities. Pharmaceutical Marketing  Medical Promotion P M Responsibilities of Medical Representative  Sales Achievement.  Customer Support and Customer Service.  Ethical Product Promotion.  Launching new products/markets.  Market Feedback.  Representing a good company Image.  Record Keeping and Reporting. Pharmaceutical Marketing  Medical Promotion P M Medical Promotion Activities must be: Credible Independent Objective Balanced With scientific bases. *(The FDA issued a paper regarding putting the patient value first. and doing promotion responsibility through truthful information is essential.) Pharmaceutical Marketing  P M Ethical promotion of prescription drugs Ethical promotion of prescription drugs - sets out the standards for ethical promotion of pharmaceutical products to healthcare professionals. Implementation of the “code of ethics” is a matter of self- regulation and self-discipline. Pharmaceutical Marketing  P M Misleading claims Promotional material should not mislead by distortion, exaggeration, emphasis, or omission, or in any other way. Absolute or all-embracing claims should be used with caution and only with adequate qualification and substantiation. Descriptions such as ‘completely safe’ and ‘no side effects’ should generally be avoided and should always be adequately qualified. Pharmaceutical Marketing  P M Example of misleading claim Wellbutrin (Antidepressant drug) was illegally marketed for a number of years. The drug is being marketed specifically for (enhancing libido), a use which had not been approved by the FDA. Clinical studies to prove this indication did not exist. Physicians still prescribe Wellbutrin, and some were paid to speak on the benefits of the drug as being libido-enhancing (Herper, 2012). Glaxo ph. Company was paid over 3 billion dollars in penalty fees for the illegal marketing of a number of drugs including Wellbutrin. Pharmaceutical Marketing  P M (STEPS ) Points to be considered in “drug promotion”: S Safety T Tolerability E Efficacy P Price S Simplicity Pharmaceutical Marketing  P M Example: (STEPS ) Points to be considered in “drug promotion”: Pharmaceutical Marketing  P M Pharmaceutical Marketing Faculty of Pharmacy -Student name: ………………..………… P M Pharmaceutical Marketing -Grade:………. -Number………….. Exercise *Design a “promotional message” for well-known (five) products available in the Egyptian pharmaceutical market including (STEPS) points. Refer to: the ‘literature evaluation”- exercise Pharmaceutical Marketing  P M (STEPS ) Points to be considered in “drug promotion” Pharmaceutical Tolerability Efficacy Safety Price Simplicity products 1) 2) 3) 4) 5) Pharmaceutical Marketing  P M Pharmaceutical Marketing  Questions P M  Q1: Complete the following: a) Types of pharmaceutical companies competition are brand competition,…………..,……………….,………………………………… b) The external factors affecting the marketing of products are: Political,…….,…….…,………. c) Product promotion is one of the medical representative’s responsibilities which includes also,…….,……….,……………,……………. ………………………… e) FDA issued instructions for the essential doing of medical promotion through truthful information and putting..………first Pharmaceutical Marketing  Questions P M  Q2: Compare between the following: Customer value Customer Satisfaction Customer Needs Customer Wants Buying function Selling function Pharmaceutical Marketing  P M Pharmaceutical Marketing Pharmaceutical Marketing