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 (6) Pharmaceutical Marketing  P M Lecture Outline Promotional message designing criteria. Promotion Mix Strategies. Setting the Total Promotion Budget. Strategic planning process in Ph. Marketing. Pharmaceutical market Analysis. Segmentation, Targeting & Positioning (STP). Product Life Cycle (PLC). Pharmaceutical Marketing  Promotional message designing criteria P M AIDA- Model Attention: Grab attention. Interest: Hold through promotional features. Desire: Make desirable needs. Action: Obtain purchase action Pharmaceutical Marketing  P M Promotion Mix Strategies *Strategy that Selection of *Strategy that Calls for The strategy Calls for using the Spending a Lot Depends on: Salesforce and on Advertising Trade Promotion and Consumer 1-Type of to (Push )the Promotion to Product- Product Through Build Up (Pull) Market & the different Consumer 2-Product Channels. Demand. Life-Cycle Stage Pharmaceutical Marketing  P M Promotion Mix Strategies Pharmaceutical Marketing  Promotion Strategies P M Promotion efforts Distribution Producer Channels Customer (Pharmacies) Demand Demand Pharmaceutical Marketing  Promotion Strategies P M Promotion efforts Distribution Producer Channels Customer (Pharmacies) Demand Pharmaceutical Marketing  P M Setting the Total Promotion Budget One of the hardest marketing decisions facing a company is how much to spend on promotion because there is no one best option to use from different options such as: Affordable Percentage of Sales Based on What the Based on a Certain Percentage Company Can Afford of Current or Forecasted Sales Objective-and-Task Competitive-similarity Based on Determining Based on the Competitor’s Objectives & Tasks, Then Promotion Budget Estimating Costs Pharmaceutical Marketing  P M Strategic planning in Pharmaceutical Marketing Pharmaceutical Marketing  The strategic planning process in pharmaceutical marketing P M Narrowing down to a focused strategy with quantitative and qualitative screening criteria Customers Needs and other Segmenting Dimensions Targeting & Product Price S. Segmentation W. Target Company O. Mission, Objectives, & T. Market Resources Positioning & Differentiation Promotion Place Competitors Current & Possible External Market Environment Technology , Political & Legal , Social & Cultural, Economic Pharmaceutical Marketing  P M Strategic planning in Pharmaceutical Marketing “The marketing process of developing and maintaining a Strategic fit – between the organization’s objectives, resources, and changing market opportunities”. Org. Objectives Strategic Fit Resources Changing Environment Pharmaceutical Marketing  P M General market Strategic planning steps Goals / Objectives SWOT Analysis Strategy Implementation Measurement and Evaluation Pharmaceutical Marketing  P M Issues to be determined in a pharmaceutical marketing plan 1-Determine the nature of the pharmaceutical product you want to plan for. 2-Determine the product design, quality, features, and packaging. 3-Determine the product selling outlets and distribution channels for best availability coverage, and transportation. Pharmaceutical Marketing  P M Cont. Issues to be determined in a pharmaceutical marketing plan 4-Determine the optimum price (profitable for the company or attractive to customers), discounts, payment period, and credit. 5-Determine promotion plan: (where or how to advertise, sales promotions, public relations, medical representatives, brochures, and printed material). Pharmaceutical Marketing  P M Pharmaceutical market Analysis SWOT analysis is: tool used by organizations to help the company determine its: Strengths, Weakness, Opportunities and Threats. Used as a framework to help companies develop their overall marketing or product strategies. Pharmaceutical Marketing  Pharmaceutical market Analysis P M SWOT Analysis method SW: Strengths and Weaknesses of a company or product (internal factors controllable by the company). OT: Opportunities & and threats ( in the market/environment) are external factors that are uncontrollable by the company /organization. Pharmaceutical Marketing  Pharmaceutical market Analysis P M Importance of the SWOT method The SWOT method is designed to help in producing the following: The optimum segment to attack. The positioning 'message" to communicate. The strategy that will bring success Tactical objectives and their priority A tactical plan. A final check. Pharmaceutical Marketing  P M Pharmaceutical market Analysis Example for questions to be answered in SWOT Analysis Pharmaceutical Marketing  P M Pharmaceutical market Analysis Example for SWOT Analysis General Internal Environment Strengths Weaknesses - Highly - efficient product - Great investing expenses. - Acceptable price - The sales force team is not well-trained - Availability of financial resources - Internal company problems. General External Environment Opportunities Threats - High Market growth rate. - Competition is very intense (expectation of - High level of customer interest. other new competitors to come). - High degree of acceptance. - Strict governmental regulations - Many new customers. - Continuous technology changes. Pharmaceutical Marketing  P M Segmentation, Targeting & Positioning (STP) Pharmaceutical Marketing  P M Market Segmentation Market Segmentation Is the process of dividing a market into smaller segments (groups) with common and distinct (needs, characteristics, and/or behaviors). That may be better served by a unique strategy and marketing mix. Pharmaceutical Marketing  P M Market Segmentation - Types Segmentation Types Geographic Demographic Psychographic Behavioral Other (anything!) No single best way to segment a market. Often, it is best to combine variables and identify smaller, better-defined target groups. Pharmaceutical Marketing  Market Segmentation - Types P M Geographic Demographic (Where they are?) (Who they are?) - Segmenting customers based on predefined - The process of dividing a market through variables geographic boundaries, can include climate, such as age, gender, education level, family size, seasons, language, time zone, and urbanicity. occupation, income, marital status, and more. - While differences in cultural preferences vary - This is one of the most widely used strategies among significantly throughout cities, states, regions, and marketers. countries. Psychographic Behavioral (Why do they do it?) (What do they do?) - Focus on the basic traits that the target - Break down the way customers go through their customers have. decision-making and purchasing habits. - Psychographic traits can range from personalities, - (Attitudes towards the brand, brand loyalty, the way opinions, values, beliefs, interests, activities, they use it, channel preference, and their knowledge conscious and subconscious motivators. base,……….) are all behavioral examples. Pharmaceutical Marketing  P M Targeting segments - Overview  It is based on evaluating the (target market segments) attractiveness with regard to its: ( size, growth, effects of competition, availability of substitute products (competition), power of buyers, also company objectives or resources).  Examples are market segments of:- (Antispasmodics for children, Non-sedating antihistamines, Antibiotics for upper respiratory infections……………..) Pharmaceutical Marketing  P M Targeting Segments - Overview Pharmaceutical Marketing  P M Narrowing down to focus on a Target market Broad generic market Broad product market Specific market segment(s) (Product’s target Segment) Pharmaceutical Marketing  P M Positioning- Overview “The place that a product occupies in consumers’ minds relative to competing products”. Pharmaceutical Marketing  P M Positioning- Strategy  Positioning must be consistent in communicating the chosen position to establish the difference in the minds of the target customers. Positioning Strategy depends on defining the following:  Competitive advantages.  Points of Equality.  Points of Difference => Differentiation. Positioning results from differentiation and competitive advantages. Positioning may change over time. Pharmaceutical Marketing  Positioning- Strategy P M  Choosing the Right Competitive Advantages: The best competitive advantages are… Important Distinctive Superior Communicable Affordable (to company and consumer) Profitable Ethical Positioning: Avoid meaningless differentiation. Pharmaceutical Marketing  P M Positioning Errors Under-positioning: Not positioning strongly enough. Over-positioning: Giving the target customers too narrow picture of the product. Confused Positioning: Leaving target customers with an unclear image of the product. Pharmaceutical Marketing  P M Positioning- Strategy Generic Product Positions & Value Propositions Pharmaceutical Marketing  P M Pharmaceutical Marketing  Product Life Cycle (PLC) P M Product Life Cycle: Shows the stages that products go through from development to withdrawal from the market. Each product may have a different life cycle. It contributes to strategic marketing planning.  May help the company to identify when a product needs support, redesign, refreshing, withdrawal, etc.  May help in new product development planning. 1 2 3 4  May help in forecasting and managing cash flow. Pharmaceutical Marketing  Product Life Cycle (PLC) P M 1 “Introduction Stage” features: Expenses are high, Slow sales volume to start, Little or no competition, Demand has to be created, Customers have to be triggered to try the product, Makes no or low profit at this stage. Pharmaceutical Marketing  Product Life Cycle (PLC) P M 2 “Growth Stage” features: Expenses are relatively reduced. Sales volume and profit increase significantly, Customer awareness increases, Competition begins to increase with a few new players in an establishing market, Proper positioning and delivering the benefits that customers truly desired. Creating entry barriers for the new competitors. Pharmaceutical Marketing  Product Life Cycle (PLC) P M 3 “Maturity Stage” features: Expenses are significantly lowered. Sales volume and profit attain the maximum peak, and market saturation is reached, Increase in competitors entering the market, Brand differentiation and feature diversification are emphasized to maintain or increase market share. Pharmaceutical Marketing  Product Life Cycle (PLC) P M 4 “Decline Stage” features: Expenses become very low, Sales volume and profit decrease or stabilize, Profit becomes more challenged by maintaining production/distribution efficiency than increasing sales. The decision to withdraw may be dependent on the availability of new products and whether trends will come around again or not. Pharmaceutical Marketing  P M Pharmaceutical Marketing  Questions P M  Q1: Define the following: a) SWOT analysis. b) Demographic market segmentation. c) Product positioning.  Q2: Give reason(s) for the following: a) Setting the total promotion budget is one of the hardest marketing decisions facing a company. b) The SWOT analysis is a helpful method in pharmaceutical marketing. c) Positioning must be consistent in communicating the chosen position. d) Identifying the product life cycle contributes to strategic marketing planning.  Q3: Give an example (s) for: a) Targeting a specific segment in the pharmaceutical market. b) Behavioral market segmentation. c) Characteristics of the best competitive advantage. d) Types of positioning errors. Pharmaceutical Marketing  Questions P M 4) Compare between: Market segmentation Market targeting Promotion pull strategy Promotion push strategy PLC- “Growth Stage” features PLC- “Maturity Stage” features Pharmaceutical Marketing  P M Pharmaceutical Marketing Pharmaceutical Marketing