THE MARKETING

MANAGEMENT
PROCESS IN THE DRUG
INDUSTRY
Pharmaceutical Marketing and Entrepreneurship

Abril, Marianne Leighn T.

Benaso, Mary Angelique M.
1. Marketing Management Process
1.1 Market Opportunities Analysis
1.2 Target Markets
1.3 Marketing Mix
1.4 Marketing Effort
1.5 Market Segmentation
1.6 Market Analysis
1.7 Forecasting
1.8 Consumer Profiling
Marketing Management Process
1.1 Market Opportunities/Market Opportunity Analysis
Guide businesses better understand the most important market segments,
what are the key sustainable differentiation, how fast the opportunity is
growing, and why are these important
Understand the potential impact that new disruptive technology might have
on the market
Marketing Management Process
1.2 Target Markets
A target market is the segment of consumers most likely to want or need a
business’ products or services
The target market can be a type of person for a business-to-consumers (B2C)
company or a type of business for business-to-business (B2B) company
Marketing Management Process
1.3 Marketing Mix
The 4 P’s of Marketing

Product
> Stands for the “goods and services"
> Is anything that can be offered for sale; that can be marketed for attention, use,
consumption, or acquisition by individuals or group for the purpose of obtaining
value or benefits to satisfy and delight needs and wants of target customers

Price
> Stands for the amount of money customers have to pay to obtain the product
Marketing Management Process
1.3 Marketing Mix
The 4 P’s of Marketing

Promotion
> Stands for activities that communicate the merits of the product and persuade
target customers to buy it

Place
> Stands for company activities that make the product available and visible to
target consumers at the right place, right time, right quantity, right cost and right
condition
Marketing Management Process
1.4 Managing The Market Effort
Market Leader Strategies
a. Expand the total market by looking for a new user and more use from
current customers
b. Pursue heavy investment spending to defend or strengthen its current
business and eventually dislodge competitors by getting their customers and
market
c. Lead an industry-wide innovation, competitive effectiveness, and value to
consumers
d. Carefully assess potential threats, counter attacking when necessary
e. The market leader may launch new products or a marketing program to
strike down competitors because they become necessary
Marketing Management Process
1.4 Managing The Marketing Effort
Market Challengers
a. Match its resources against the competitor’s weaknesses
b. Bypass the competitor and develop new products, new markets, or new
technologies
Market Followers
a. Runner-up companies who choose to follow rather than challenge the
market leader
Market Nicher
a. Smaller firms in the market or even larger firms that lack established
positions and specializes in serving market niches that major competitors
overlook or ignore.
Marketing Management Process
1.5 Market Segmentation
Demographic factors: age, sex, income, education
Psychographic factors: usage rates, frequency and motivation for buying
Geographic factors: cities, towns, municipalities, barangays, sitios

1.6 Market Analysis

The best options for your marketing campaign, and to ensure that your
marketing money are spent in the most effective way possible
The goal of market analysis is to determine the attractiveness of a market
and to understand its evolving opportunities and threat as they relate to the
strength and weakness of the firm
Marketing Management Process
1.7 Forecasting
Sequence of Steps in Forecasting
i. Determine the purpose for which forecasts are to be used, such as for: production and
marketing requirements, budgeting, etc.
ii. Divide the company’s products into homogenous groups such as by therapeutic segments
and sub-segments, ethical drugs, ethical-OTC, OTC and proprietary drugs or by product
divisions.
iii. Determine the factors affecting the sales of each product category such as: demand,
competition other environmental factors, and their relative importance
iv. Choose the forecasting method best suited to the job, such as: percent to net sales and
many others
v. Gather all the available marketing data such as: sales history, marketing trends, consumer
attitudes and awareness level, for the last three years
Marketing Management Process
1.7 Forecasting
Sequence of Steps in Forecasting
vi. Analyze the pharmaceutical marketing data, both form internal and external sources
vii. Check and cross-check the deductions resulting form the market analysis:
assumptions and hypothesis
viii. Make assumptions regarding the effect of factors that cannot be measured or
forecasted: governmental restrictions: environmental and other health related issues
ix. Covert the deductions and assumptions into specific product and territorial, area,
regional forecast and quota: that are realistic and achievable for the period
x. Apply these to the company’s sales and marketing operations: by quarter/semester
in measurable terms
xi. Review actual performance against targets and revise forecasts periodically
Marketing Management Process
1.7 Forecasting
Types of Forecasting Objectives
i. Short-term Forecast
a. Planned/modified production schedules for OTC/proprietary and ethical drug products
b. Pre-determined levels of raw materials and finished goods inventory per product format and size
c. Complete or partial shutdown of R&D facilities for expansion purposes: health foods fluids, and
related products
d. Temporary use of outside facilities to meet temporary rise in demand in selected drug product
categories.
e. Hiring of new workers due to upsurge in demand, say for vitamins, dietetics, and nutritional lines
f. Laying-off casuals/contractual workers due to expected downtrends in the proprietary or ethical
drug business
Marketing Management Process
1.7 Forecasting
Types of Forecasting Objectives
ii. Budget Forecast
a. Working capital requirements
b. Cash flow and funds flow statements
c. Quotas for the sales force
d. Advertising sales promo, and other promotions budget
iii. Long-term forecast
a. Planned capacity expansion of a dynamic business
b. Diversification, product lines and business
c. The need to replace obsolete equipment
d. Capital budgeting decisions
Marketing Management Process
1.8 Consumer Profiling
Is an approach of describing a category of consumers so that they can be
grouped for advertising and marketing purposes. By target advertising to a
specific group, the sales of a product will increase and thereby increasing the
profit
 2. MOTIVATION AND
PRESCRIBING HABITS OF
THE PHYSICIAN
Motivation and Prescribing Habits
of the Physician
Prescribing Habit
Behind a physician's choice of drug therapy must be rational
Physician's decision on drug therapy is not what to buy but rather what to
prescribed.
It is a crucial task for a physician to write a proper prescription according
health status of patient.
Motivation and Prescribing Habits
of the Physician
Prescribing Habit
A proper and perfect prescription for the patient depends upon various
factors which act upon the medicine’s prescription decision: the medicine
feature (quality-price, availability) the prescriber, the patient situation.
The final aim of any given medical treatment is to get certain required result
from the patient.
Patient should also follow the treatment properly for the better result.
Motivation and Prescribing Habits
of the Physician
Motivation regarding the prescription habit of the Physician
The low purchasing capacities of the patient - affect the behaviour of the
physician to suggest a certain medicine.
Promotion for the pharmaceutical companies is produced by the regular visit
of the medical representative to the physician.
The presentation of articles in the literature journals and participation in
different conferences or seminars motivates a physician to advocate a certain
pharmaceutical product.
3. Patients' Choice of
Physician and Retail
Pharmacist
Patients' Choice of Physician and
Retail Pharmacist
Patients’ choice of physician
Demonstrates that doctors treat our patients with dignity and respect, as
adults, capable and willing to be involved in decisions made about their
medical care.
Involves exploring patient's stories, their ideas and values, hopes, fear and
expectations, not only about what they want to do, but what they understand
of their symptoms, and their illness
Two-way process
Patients' Choice of Physician and
Retail Pharmacist
Patients’ choice of Retail Pharmacy
Patient satisfaction is an important measure of how well the services are
provided
4. Role of Market
Research
Role of Market Research
Connects the organization with consumers through the information.
Received information is used for revealing and definition of possibilities and
problems of marketing; workings out, specifications, an estimation, and the
control of execution of marketing actions;
Perfection of understanding of marketing as process.
Role of Market Research
Objects of market research are tendencies and processes on the market including
the economic changes analysis, scientific and technical, demographic, ecological,
legislative and other factors.
Structure and market geography, its capacity, dynamics of sale, a competition
condition, market conjecture, opportunities and risks are investigated also.
Role of Market Research
The basic results of market research are forecasts of its development, an
estimation of conjecture tendencies, definition of key success factors. The market
segmentation, choice of the target markets and market niches is carried out.
END OF REPORTING

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