(principles) PHCL-43..

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Transcript (principles) PHCL-43..

Pharmaceuticals Marketing
PHCL-438
Professor
Tawfeeg Alnajjar
1433-1434
Objectives
 To expose students to the:
1. Principles of pharmaceuticals
marketing
2. Effect of environment (P.I/H.C)
3. Practice of marketing
Topics
1. Principles
2. Environment
• Pharmaceuticals Industry
• Health Care
1. Marketing strategies
2. Practice
• Marketing research & analysis
• Segmentation
• Targeting, positioning and profiling
1. Handouts
2. Internet
http://books.google.co.in/books/about/P
harmaceutical_Marketing.html?id=_wkq3
i2gcLEC
Free
Evaluation
Points
1
Two midterm
50
2
Assignment
10
3
Final
40
4
Total
100
POINTS
Distribution
Marketing
Marketing
1. Is the process
2. Of planning & executing
3. The conception, pricing, promotion,
distribution
4. Of Ideas, goods, and services
5. To create exchanges
6. That satisfy individual and
organizational goals.
(American Marketing Association, 1985)
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Is a process
• Marketing activities
• M. management
Inputs into outputs until known goals
reached.
1. Need study (M. research / situational
analysis) to create M. opportunity
2. Market study (M. segmentation)...
Segments
3. S. design …. (targeting, positioning,
profiling)
4. Execution: org., implement (dir.), control
• Different titles
2. a) Planning
– M is all about preparing M plan
– The plan covers subjects (4Ps)
– The purpose is (4Ws ... satisfy, exchange)
– Planning steps
1. Standards (objectives)
2. Data collection and analysis
3. Executable strategy (actions)
1) Standards
VISION
MISSION
VALUES
OBJECTIVES
3) Analysis
1. SWOT
2. PEST
3. Scorecards
4. P. analysis
5. GRID
6. 5FC
2) D. Collection
5Cs (company,
customer,
collaborators,
competitors, climate)
4) KSFs
5) strategy
b) Execution
• Planning .... What to do?
• The rest of M. functions
1. Org......how to do it
2. Direct ....facilitate
3. Control ....make sure
3. M. Mix
Conception, pricing, promotion,
and distribution of
Establish strategies for each of
the followings...
Promotion
Product
Distribution
Price
1.
2.
3.
4.
5.
Borden in 1964
Most popular term
Mixer
4Ps
M. offers to
customers...
6. Guide:
– Good customer
service
– 4 Rights
Conception
(Pharmaceuticals)
Could be:
(Product)Pharmaceuticals
(Service) Patient counseling
(Idea) Timer to improve compliance
• Product:
– Any thing that can be offered for:
attention, AC, use, or consumption …
that may satisfy a want or need.
– Foremost Element?
A good product might sell even if the
promotion is mediocre (bad rarely obtain
repeat sales, no matter how brilliant)
– Part of M mix …
– Pharmaceuticals are consumer products
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• Product
1. Quality
2. Features & Options
•
•
3.
4.
5.
6.
7.
Antidote
Efficacy, etc.
Brand name
Packaging
Product line
Warranty
Service level
• Quality
• Features:
– Tangible or non
– Physical or emotional
– P.I Offering (tangible & intangible)
– Features (multiple)
• Core (generic, inherited)
• Augmented (more appealing to the
customer)
• Benefits (not characteristics): hole / drill
•
•
•
•
Benefits (characteristics)
Rx (patient) buy benefit instead of
characteristics
Rapid effect ... Rapidly absorbed …
Extrapyramidial S.E .... Don’t cross BBB
Explain why Pat. develop product
loyalty and Physician Rx non
competitive.
Essential prerequisite to a successful
marketing campaign.
P.I make sure benefit obtained
(compliance, …)
Features
• Core
1.
2.
3.
4.
5.
6.
Efficacy
Safety
Tolerability
Speed of action
Quality
Cost
Augmented
•
•
•
•
•
•
•
•
•
Ease of use
Temperature stability
Shelf life
Patient education
Physician information
Patient support
Mail delivery
Company Web site
Branding
• Product ..
– Fingerprint
• Nomenclature
• Labeling
• Documents
–Leaflet
–Brochure
–Summary of Product
Characteristics
– Are essential
• Product (pharmaceuticals):
Chemical agent that affects the
processes of living....
• Line: similar nature + similar
segment
• Portfolio
– P.L depth
– P.L Width
• Similar
– Features and
– Marketing needs
NSAID
Oncology
Antimicrobial Hematology
Aspirin
5-Fluorouracil
Gentamicin
Paracetamol Cyclophosphamide Ciprofloxacin
..
.
P.L Width
Erythropoiten
Cynanocobolamin
Amikacin
Ibuprofen
Methotrexate
.....
......
......
........
P.L Depth
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• Increased requirements
• Blood cholesterol-reducing pill
– Efficacious, safe, and easy to use medication,
accompanied by disease treatment.
1. P. Empowerment
2. Increase G measures to reduce
healthcare costs
3. Prescriber needs
4. Increased globalization & communication
between S.H
FDA Review Priorities
1. Chemical type
2. Potential benefit
Pharmaceuticals
• Status
– Brand (New):
•
•
•
•
•
•
Molecular (Chemical) entity .. Growth driving
Derivative:
Formulation Fosamax® (alendronate sodium)
Combination (Caduet = Norvasc + Lipitor )
Manufacturer
Use. Tasigna (nilotinib) Philadelphia CML
– Generic (post patency)
•
Type
– Rx …. NDA
– OTC …. .. D monographs
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•
Two stages
1. Premarketing (R&D)
•
•
•
•
Preclinical
IND Application (Regulations)
Clinical (I,II, and III)
NDA (Regulations)
2. Marketing (PLC)
•
•
•
•
Introduction
Growth
Maturity
Decline
Exceptions (PLC)
• Lengthy
STAGES
FDA
1. ~1906
2. ~1932
D
M
M. cycles
M. profit
G
IV
I
3 = P.C
NDA
New Drug
Approval
2
BA: Sales – Costs - Risks, and - Profit forecasts to corporate objectives
1
Investigational New Drug
BA
IND
Basic research
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D. cycles
D&D
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PLC
Rise – plateau - eventually fall
Maturity - (extend
that)
Introductor
Growth
Decline
Similar to consumers
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X-PLC
Lipitor Sales
Year
Sales
1997
0.9
1998
2.2
1999
3.4
2000
4.6
2001
5.6
2002
6.7
2003
7.7
2004
8.0
2005
8.5
2006
9
2007
9.5
2008
10
2009
11
2010
11.8
2011
~ 8 (patency
expired)
1. Introductory
•
•
•
•
•
•
•
•
Sales - growth ()
Gain P acceptance
M.S .....O.L .. (communicate B to
pyramid)..... distribution
Limited dosage & strength
P (H and stable.. innovative)
M data that help targeting,
positioning, and profiling
To inc awareness: clinical trial
experience, develop O.L, ....
Premarketing
2. Growth
•
•
•
•
•
•
•
Moderate sale (rapid G)
Inc. profitability
More competitors ... P down
Expand distribution (offer new P
benefit and forms)
Message persuasive and
comparative to competitors
Expand sale forces to GPs, ...
At peak sales plateau, imminent
entrance to maturity,
3. Maturity
•
•
•
•
•
•
•
Stabilize sales
Low cost- profit
Fighting competitors: maintain P
advantage, new features &
benefit
A full product line, dosages, ..
P and D stable
Shifting to key Rx
..
4. Decline
•
•
•
•
•
•
Decreasing sale, rising cost,
eroding profitability
Advertising reminder
Sales force effort and time
reduced
Harvest
Prolong its sale as possible
Terminating /with replacement
LC Management
Mastered in order to maximize
1. PLC, and
2. Profits.
Causes
Different Customers
Competition
Portfolio priorities
Product changes
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• Exception
• Aspirin, penicillin, cisplatin.
– Launched several decades ago
– Reach immortality.
– Reasons:
•
•
•
•
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Significant T. Breakthroughs
Reference drugs.
No any significant innovations
Remain valid.
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• L.C.M
– 0 ……. NDA (2)
• Long and risky period
• (Profitability period).
1. Minimized
2. B. Analysis
Sale-cost-profit, and risk
– Introductory period (3)
• Lengthy
• Months - years
• Premarketing
– Shorten
– Begin at least (2 y prior or at phase III)
– Product or specialized M manager
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• Patency
– Grant of a property right by government
– U.S. Patent and Trademark Office, KACST,.....
– Term of patent (20 years): start date on which the
application for the
patent was filed
– Country specific (only USA)
– Patent agreements
– Innovator …left with limited period?.
1. Validity (certain geographically regions)
2. Enforcement
M.S
3. Extension
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Time -To-Market
1. Shorten the time-to-market (a strategic
objectives of R&D)
2. Arriving first is necessary for maximum
commercial success
3. Figure: A is able to maximize commercial
returns, whereas the second entrant (B)
finds steep competition at the time of launch
and takes years to reach its maximum
potential (its patency is quickly expiring).
4. Solutions:
1. Concurrent drug development phases
and
2. Other industry initiatives.
1. Pharm. Market
1. Not like C.M
1.
2.
3.
4.
5.
6.
7.
8.
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Patient neither decision maker nor buyer
Higher ethics
Intense regulation
Sever liabilities
Less B. loyalty and P. sensitivity
Huge R&D > 20% of revenue
Patient right
Also animal and environment
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Requirements
• Changed
– Pills to reduce cholesterol
• efficacious, safe , easy use, medication with guidelines ,
quality of life and environment, and affordable price.
– Reasons:
1.
2.
3.
4.
Pt. empowerment
Gov. measures to red. H.C cost
Rx needs change, and
Inc communication between stakeholders
Arises
• Ethics
• All about idiosyncrasies
– Revered and admired
– But also criticized …
– Politician and regulators:
• Excessive high profit margins
• Mediocre innovation (Me to)
• Not true
– Social goods (lay) .. reimbursed or sold at cost
– Advertising … prices up …. Injustice
– Common (criticism/ misunderstanding) .. Next
slides
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• Criticized
1.
2.
3.
4.
5.
6.
(P:48)
Wasteful of money
Intrusive hard selling
Manipulative
Lowers quality
Create social inequality
Create Unnecessary Demand
(2) Distribution
•
•
•
•
•
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2nd element: right (place , time, condition)
Methods used to get product through various D
channels to ultimate user or purchaser.
Include: placement (warehouse, retailers, rack
jobbers)/ transportation/ materials handling,
packaging and so on
Channel management: facilitate transfer from
manufacturer to final consumers in effective
manner
1. Individuals
2. Process and
3. Systems
Distribution strategy
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(3) Price
•
•
•
3rd element = right price
Includes: level, discounts, allowances, payment
terms, volume rebates, and bidding
Based on:
•
•
•
Cost – ROI – Value - Psychology
Factors:
•
Demand curve - Cost (fixed, variable) –
Environmental - P objectives
Strategy
•
New:
•
•
skimming, penetrating to either maximize (profit
margin or quantity) respectively
Existing:
•
status que, quality leader, survival, partial cost
recovery)
(4) Promotion
•
•
•
•
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Fourth
Present advantage to the public
(communicate benefit)
PLC: Inform (I), loyalty (G)persuade
(M), remind, influence, push and pull
(D) …target audience .. product
characteristics.
Promotional mix
1.
2.
3.
4.
Advertising
Public relations
Sales promotion
Personal selling
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4) Introduction
5) Growth





Establish branding – patent –
trademark.
Penetration pricing to create
share
Selective Dis. until
acceptance
Awareness/ educate future
customers ( innovators and
early adopters)



Quality , add feature , and
supported services
Maintained – increase
demand – little competition
Add channels as demand
increase
Broader audience
6) Maturity
7) Decline





Differentiate from that of
competitors
Lower because new
competitors
Intensive and incentives
Emphasizes product
differentiation
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
Maintain (changed) Harvest
– discontinue (unchanged)
Harvested (maintained) ,
discontinued (reduced
drastically)
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Create Exchange
• Create exchange
– Essence of marketing
1. Two or more parties
2. Interested in satisfying their
unfulfilled desire
3. Have something of value to over
4. Capable of communication and
delivery
– Prerequisites for exchange
– To satisfy
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Satisfy
To be satisfied ..
A) Satisfy
– A core elements
– All about identifying customer N & W and building
products that will satisfy them
– P.I do every thing possible:
• New product ...to ... product decline or withdrawal
B) Impress … beyond expectation
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Study..
Majority satisfy
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Precisely
Satisfy
Customer
s
Retain
Relationsh
ip
Needs
Needs
• Problem that the customer intended to solve
with product, service or idea = basic items
required for human survival.
• In general:
– Not all N satisfied (new products)
– Not a ware of their N (marketing)
– Real or perceived deprivation
• Transferable
– Transferred (need/want/demand)
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Transferable
Demand (sponsor)
Want (personal, cultural)
Need (human)
• Wants:
– N shaped by cultural influence and individual
preference .
– Goods, ….. That fulfill N of individual customers
– Purpose .. Convert to wants
• Demand:
– Created ..
– W …supported by ability to purchase
• Wants versus Needs goods
Maslow's Hierarchy of Needs
Growth
Personal growth, fulfillment
Achievement, status, respect
Deprivation
responsibility, reputation,.
Family, affection, relationship,
work group,..
Protection, security, order,
law, limits, stability,..
•Air, foods, drink, shelter, sleep,…
•Drain psychic a way from others
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Theory
•
•
•
•
Psychology (motivation)
Abraham M, 1943
Expressed 1954 book M& personality
Understand human motivation …M.
–
–
–
–
–
–
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Five (physical - social – individual)
Updated >5
Deprivation (1-4)/ growing (5)
Lowest is the largest and most important
Motivated by unfulfilled needs
More effective when for lowest levels
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• Order is required - once fulfilled
move to the next
• For examples:
– Self esteem is useless for unmet
safety
– Case (oxygen, nutrition,
incontinence, rest-sleep-pain,
depend on himself)
– District club (social) in area
people feel unsecure
– B blocker (psychological) despite
S. effect (social) / V (social) high
risk for H attack (psychological)
• P.I: identify effects of
pharmaceutical products and use
that (profiling)
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•
1.
2.
3.
4.
5.
6.
Professor T Najjar - PHCL-438
(Pharmaceuticals Marketing)
Maslow
No 1:
1. To all
2. Emphasize
services,
warranty,..
Before the
previous
Insurance
company
recommend this
product (safety)
Stress the need
that your product
fulfill
“Be all that you
can be” for No 5
Drug fulfill No 3
but S.E NO 1
61
Customers
Needs (wants)
1. Individuals (stakeholders)
a)
b)
c)
d)
e)
f)
g)
Rx
Pharmacists
Professionals (others)
Patients (1ry in OTC)
Regulators
Financers
Administrators
2. Organization (mix of all)
3. Needs varies
Study Need
• SH: …P.I has or want to develop relationship
• Internal = employees
Education , training, motivation and sharing
• External
1. Inputting:
Suppliers, regulators, politicians
2. Mediators / influencers
Rx, Professors, other professional
3. Consumers:
Patients, media, general public, competitors
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SH
• Based
Right people (influenc, . ) in the right way (what,
who, where,)in your project, you can make a big
difference to its success... and to your career
– Type
Influencer, supporter, and conflicting,.. etc.
– Role
– Importance
– Prevailing trends
– Anticipated future importance
• G. analysis (subjects versus characters)
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SH
• Rx
– Influencers
– Professional rank (pyramid of influence)
Resident ……(professional or academic titles)
– For example specialties
• Work settings
• Type of patients
• Therapeutic class
– Primary provider (N)
•
• Pursue M knowledge
• Maintain patient base (private)
• Some degree of cost to benefit
O.L (Rx)
1. Early approval
2. Clinical trial
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Med Rx decision
• Attention of marketers , psychologist and
others).
– Problem recognition
– Search
– Evaluation
– Rx decision
– Post Rx evaluation
• Two steps: (therapeutic class .. Then ..
brand)
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Rx
Pyramid of influence
Begin with
End with
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S.H
• Other influencers
– Many:
– OL – pharmacists – professionals - supply chain
intermediaries – administrators - external consultants
– MSR – and others
• O.L (Non Rx):
– May not be active Rx but academic or administrative
position
– Product launch
– Professional visibility and recognition:
1. Educate and influence
2. Policy makers
3. Contribute to guidelines
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SH
Professionals
• Pharmacists
– Becoming increasingly important
•
•
•
•
Substitution rights
Cost containment right (less expensive , pharmacoeconomic)
Product requirement (package, expire date, light sensitive)
Promotional (display, campaigns)
• Others
– Link to HC delivery
– Chronic patients may see nurses or physiotherapist
– May select brand (Rx class)
• Needs to evaluate the contribution of each and
proceed in educate and inform
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SH
Non Professionals
1. Adm.
– Mandate budget
– Either influencer or customers
2. MSR
3. Regulators
– Multiple levels: institutional – local – national –
international and global
– Restrictive and inhibiting but also can be promoters and
rewarding
– Collaboration, compliance, harmonization, negotiation,
lobbying
– Direct confrontation …
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SH
• Financers
– Input : provide resources : reimbursement
fund – insurance – employers
– Motives; accessibility – fairness –
transparency – accountability and cost
containment
– Directly negotiate service level and cost
(reform)
– Industries become Pharmacoeconomic
minders
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Consumers
• Also media, community and competitors
• Patients compliance
– Most H.C issues that has direct implication on industries
– Statistics:
Not filled (20%), mistakes (50%), incomplete life style
change (90%), weigh loss fail (90%)
– Includes:
Adherence to Rx , undergo L tests, follow-up – life style
change
– Doubts associated with suboptimal treatment
– Factors (non compliance):
Complexity, D. perception, family input, elderly, inf. Quality,
and poor communication.
– Disease management initiatives (H.C and Industry).
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D.M
•
Behavior
1. Needs, wants … recognize a problem or need
2. Inf. Search
3. Evaluation of alternatives
cost/risk/rank (no of
Low/High
times)
4. Purchase decision
5. Post purchase evaluation … satisfaction
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Classified
1. Complexity
1. Routine
2. Extended
2. Involvement
1. Low
2. High
Add values
Attract clients
Stay in touch
Get proactive about generating
referrals
Marketing schedule (Sat. of every
week)











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D.M
R/L
DM =inertia
OTC - minor ailment-cold
Minor - previous experience
- does not cost.
Involvement is low / D is
routine
Purchase: inertia / point of
purchase / display, messages
E/L
DM= variety seeking
New but not serious
E data search but because
not serious, less cost more Routine
Limited (varieties purchase)







R/H
DM= brand loyalty
Asthma, ulcers
Had for years
Little information (high
involvement for routine D)
Routine D - get used to it
Brand effect / brand
marketing .
Issues: efficacy-safety-cost




DM = complex
Serious disease (new
neoplasm)
High involvement + extended
D …. complicated purchase
Information search, brand
alternatives, protocols
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Inertia
1.
2.
3.
4.
5.
Add values
Attract clients
Stay in touch
Get proactive about generating referrals
Marketing schedule (Sat. of every week)
Organization
• Large difference
• Team (professionals and adm.)
Users, influencers, buyers, deciders, and
gatekeepers
• More complex and through several steps (list)
– Marketer pay attention to D.M process
– Be a ware of various needs:
P&T committee, formulary – disease management
programs, ambulatory and so on …
– Identify the players
– Adapted for each (modified in case of competitive)
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In general
•
•
•
•
•
Diverse
Large group
Individuals and organizations.
Needs conflict (fully insured/ insurer)
Various needs
–
–
–
–
–
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OL: maintain leadership … promoters
Rx …scientific rational and cost containment
Financers … balance benefit and cost
Regulators ..efficacy and safety
Patients ..optimal care, informed decision and less
cost and hence patient advocate groups confront
regulators
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Require
Strategy
1. Individualized
2. Nonbiased
3. Balance way
Adoption Path
Awareness
Diffusion/Adoption
Interest
Evaluation
Trial
Adoption.
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Adoption Distribution
Innovators
(2.5)
Early Adopters
(13.5)
Early Majorities
(34)
Late majorities
(34)
Laggards (16%)
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Marketing (Rx)
Target ?: innovators
and early adopters
2.Product: establish
branding – patent –
trademark.
3. Price ?: penetrating
to create share
4. Distribution:
selective until
acceptance
5.Promotion: to create
awareness (educate
future customers)
In general
• Art of blending all the required marketing activities into a
coherent strategic framework.
• Planning, implementation, and control of programs
designed to bring desired exchange with target markets
for the purpose of achieving O obj.
• In particular:
– Find opportunities (Unmet..)
– To be ……. market segment (s)
– Based on …. design M strategy
– Followed by … organize, implement, evaluate, and
control.
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- PHCL-438 (Pharmaceuticals Marketing)
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Other definitions
Marketing
1. Is the management process responsible
for anticipating and satisfying customer
requirements profitably.
2. Is a social and managerial process by
which individuals and groups obtain
what they need and want through
creating, offering, and exchanging
products of value with others.
3. Is the entirety of the business from the
perspective of the customer.
• Marketing
– Managed by:
• Variety of M managers
• Different titles and levels
– Product, sale, medical affairs
– Combined both:
1. Science (study) and
2. Creative (charisma, enthusiasm)
– Because:
Sound academic base bring charisma to the
surface
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Professor T Najjar - PHCL-438
(Pharmaceuticals Marketing)
86
• M. Features
1. All around
2. Can be invisible
3. Not strictly for profit.
4. Not only for goods (products)
5. 4 Ps
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Professor T Najjar - PHCL-438
(Pharmaceuticals Marketing)
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• M. Mix
– Result of marketing activities
– Mix of product characteristics and benefit
• Rapidly absorbed (quick relieve of pain)
• 1st choice anticancer (prolong survival)
– Controllable variables
– Must be managed carefully to meet the needs of the
target group
– Not like:
1.
2.
3.
4.
5.
Depressed economy
Cultural preference
Government
Environmental, and
Competition.
– 4Ps basic components (product, price, place, promotion)
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Professor T Najjar - PHCL-438
(Pharmaceuticals Marketing)
88
M mix (strategies for each):
Example
Product X as NSAID tablets (50 & 100 mg) will
be marketed in to the following segments (GPs,
Specialists) as drug of choice for the treatment
of disease RA , on the bases that it will suppress
inflammation and hence improve the quality of
life of patients, with the following price (SR 25),
distributed by our agent or allies, using internet
web , relationship as a promotional.
• Monitor (ready to modify mix as it is required)
•
•
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Professor T Najjar - PHCL-438
(Pharmaceuticals Marketing)
89
Marketing
M .Activities
M. Mix
G.C.S
Satisfy Need
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Professor T Najjar - PHCL-438
(Pharmaceuticals Marketing)
90