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Developing a pharmaceutical marketing plan

Dr. Taher Hamed

The Marketing plan


The Marketing plan is the written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals.

The Marketing plan


The marketing plan may be Product specific, market specific, or company-wide plan that describes activities involved in achieving specific marketing objectives within a set timeframe. A market plan begins with the identification (through market research) of specific customer needs and how the firm intends to fulfill them while generating an acceptable level of return. It generally includes analysis of the current market situation (opportunities and trends) and detailed action programs, budgets, sales forecasts, strategies, and projected financial statements.

Steps to be followed in a pharmaceutical marketing plan


Determine the nature of the pharmaceutical product you want to plan for. Determine the product design, quality, features and packaging. determine the product selling outlets and distribution channels for best availability coverage, transport, direct or indirect.

Steps to be followed in a pharmaceutical marketing plan


Determine price profitable for the company or attractive to customers, discounts, payment period, credit. Determine promotion plan: where or how to advertise, advertising, sales promotions, public relations, medical representatives, brochures and printed material.

Companies segment the market into groups


the choice of a successful segment is dependent on: 1-The marketing attractiveness of the target segment, its size, growth, price sensitivity and entry and existing costs. 2-The competitive dynamics in the proposed segment 3-the strength of the strategic advantage for the target segment.

Market targeting
Based on evaluating the segments with regard to its size, growth, effects of competitions, availability of substitute products, power of buyers or suppliers (competition) ,also company objectives or resources. (Antispasmodics, Non sedating antihistamines)

Competition
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 same customers at similar prices. (Voltaren vs. Feldene)

Competition
2-Industry competition: A company sees its competitors as all companies that make the same product or class of products. GSK vs. SANOFI AVENTIS 3-Form competition: A company sees its competitors as all companies that supply the same pharmaceutical form (All suspension antibiotics)

Competition
4-Generic competition: A company sees its competitors as all companies that compete for the same consumer either brands or scientific names

Preparing the pharmaceutical plan:


External forces affecting marketing of pharmaceutical products P.E.S.T Analysis Political, Economical, Social, Technological environments.

External forces affecting marketing of pharmaceutical products


Political analysis: -Politics -Decisions made by government -Occupation -Legislations -Policies

External forces affecting marketing of pharmaceutical products


Economical: nationally and globally Social: society forces as family, friends, media affect our attitudes, interests, opinions, what we buy, how we behave. If a change in structure of a population happens, this will affect the supply and demand of goods and services.

External forces affecting marketing of pharmaceutical products


Technological: -Internet -R&D departments are pressured to develop up to date products with the advancement of technology.

SWOT Analysis
A tool used by organizations to help the firm establish its strengths, weaknesses, opportunities and threats. Used as a framework to help firms develop their overall corporate, marketing or product strategies.

SWOT Analysis
A method for integrating and cross-analyzing data collected in the market audit, situation audit and product positioning to identify SWOT.

SWOT Analysis
SW: Strengths and Weaknesses of a company or product (internal factors controllable by the company). OT: Opportunities & threats ( in the market/environment) are external factors which are uncontrollable by the organization.

SWOT Analysis
The SWOT method is designed to help produce : The optimum segment to attack The positioning 'message" to communicate the strategy that will bring success . Tactical objectives and their priority . A tactical plan final check

Opportunities and threats


They come out of the following areas : Market segment Environment Competition

Strengths and weaknesses


Examples of strengths The product. - Highly - efficient product -Very reliable. -Convenient packaging -Acceptable pricing. -Excellent technical back-up -High versatility -High market segment share -Good pharmaceutical brand. -Excellent delivery

SWOT Analysis
Examples of strengths The Company: - Large size -Excellent reputation -Adequate promotion budgets --Productive R & D. -well-motivated sales force -Effective sales force -well-trained sales force -Excellent distribution -Excellent back-up information

SWOT Analysis
Example list of opportunities: In the market segment Large segment size. High growth rate. High level of customer interest. High degree of acceptance. Many new customers. Low level of price sensitivity

SWOT Analysis
List of opportunities: In the environment Not very complicated government regulations. Little negative public opinion. Growth economy. Competition: - few competitors - Weak selling power -no new products -little promotion activity

Marketing mix principles


used by business as tools to assist in pursuing their objectives The 4 p's are:

product, price, place, promotion


These are controllable variables which must be managed carefully to meet the needs of the target group.

Marketing mix principles



4 Ps Product Price Place Promotion vs. 4 Cs Customer solution Customer cost Customer convenience Customer communication

Product Strategies
who is the product aimed at ? what benefits will they expect ? how do they plan to position the product in market ? what differential advantages will the product offer compared to competitors ?

Product Life Cycles


Sales
Development Introduction Growth Maturity Saturation Decline

Time

Product Strategies
A product must be viewed in 3 levels: Level 1: Core product Level 2: Actual product: aim is to ensure that our potential buyers actually buy one from your company (i.e. add benefits to compete). Level 3: Augmented product: what additional non-tangible benefits can you offer ?, delivery, after sale support.

Product decisions
Design Quality Branding Vs. Copy cats (Generics)

Pricing
It costs to produce, design, distribute and promote a product, thus the price must support these elements. Pricing is difficult and must reflect the supply & demand relationship.

Pricing
Pricing must take into account: Fixed and variable costs. Competition. Company objectives. Proposed positioning strategies. Target group & willingness to pay.

Pricing Strategies
Depends on companys objectives Types of pricing: 1-Penetration pricing : is the pricing technique of

setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers 2-Skimming pricing: is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time
3-Competition pricing: Method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand

Place
Distribute product to user at the right place and at the right time. Efficient Distribution may be: 1-direct (manufacturer consumer) OR 2- indirect (manufacturer wholesaler retailer consumer

Distribution Strategies
Intensive distribution: Marketing strategy under which a firm sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go. Exclusive distribution: Retail selling strategy typically used by manufacturers of high-priced, generally upscale merchandise, whereby manufacturers grant certain dealers exclusive territorial rights to sell the product

Distribution Strategies
Selective distribution :Type of product distribution that lies between intensive distribution and exclusive distribution, and in which only a few retail outlets cover a specific geographical area. Considered more suitable for high-end items

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