Unit 1 Pharma Marketing Management notes, books, PDF, Downloads
Marketing
Definition
Pharmaceutical Marketing Management is a specialization that combines both the study of basic and pharmaceutical science with the marketing and management skills of pharmaceutical products. It provides individuals with a bright career in pharmaceutical sales, management, marketing, and related fields within the health care industry.
General concepts
The Pharmaceutical Management course educates students about the industry that deals with the fitness and chemical sciences with a major focus on the uses of pharmaceutical drugs in all the possible and safe ways. It makes students understand the crucial aspects related to the Pharmaceutical industry such as the production management of pharmaceuticals, Brand management in pharma, pharmaceutical marketing, finance, and economics in the pharmaceutical field, etc. The course provides a combined prospectus of the technical knowledge of the pharmaceutical industry along with the management procedure of the industry rooting from economic planning to the marketing and sales in the pharmaceutical industry.
Scope
A further career in pharmaceutical management also gives you the opportunity to works in the field of drug development, research, discovery, pharmaceutical administration, etc along with advanced pharmaceutical management and business concepts in the pharmaceutical industry.
- The pharmaceutical industry has been increased rapidly over the past years. The total sales of pharmaceutical medicines have been reached 1.1 Trillion USD worldwide in 2019and are expected to reach about 1.6 trillion USD by the end of the year 2020. So it is clearly visible that there is an immense growing stage in the pharmaceutical industry. The major cause of the growth in the pharmaceutical industry is largely transforming global markets.
- This sector has also spread its wings in India. It is expected that in 2021, India will take the lead in the ranking index of the pharmaceutical innovation hub. The government of India has taken all the necessary decisions which catalysts the investment by the public sector through the partnership and it will create a lot of job opportunities for the students in the pharmaceutical sector.
- So from the above discussions, it is clear that the Indian pharmaceutical sector is becoming more feasible and attractive gradually to pursue a career in pharmaceutical management. Because the growth in any sector is directly proportional to the increasing demand for human resources and skilled employees.
Here is the list of courses at the UG & PG level to make a fulfilled career in the pharmaceutical management industry.
- Diploma in Pharmaceutical Management
- Post-Graduation in Pharmaceutical Management
- Advanced Diploma in Pharmaceutical Business Management
- BBA plus Diploma in Business Administration (Pharmaceutical)
- MBA in Pharmaceutical Industry Management
- Master of Business Administration in Pharmaceutical Management Executive
- Master of Business Administration in Pharmaceutical Management
- Post Graduate Diploma in Pharmaceutical Management
Distinction between marketing & selling
- Concept
Marketing: It is a strategy based on a mix of activities aimed at boosting sales.
Selling: It is the strategy of satisfying the needs in an opportunistic, individual method driven by human interaction. - Cost
Marketing: The consumers determine the price; the price determines the cost.
Selling: Cost defines the price. - Efforts
Marketing: It makes an effort such that the consumers want to purchase the products in their interest.
Selling: The company makes the product first and then figures a way to sell and make a profit. - Orientation
Marketing: It involves external market orientation.
Selling: It involves internal production orientation. - Motive
Marketing: Customer satisfaction is the basic motive.
Selling: Sales are the main motives. - Reach
Marketing: It is a comprehensive, composite, and worldwide scope
Selling: It is a narrow reach related to buyer, seller, and production - Beginning
Marketing: It starts much before the production of goods and services.
Selling: It comes after creation and ends with delivery and collection of payment. - Scope
Marketing: It has a broader connotation and covers many research activities.
Selling: It is a part of marketing. - Mindset
Marketing: The mindset is “Satisfy the customers.”
Selling: The mindset is “Hook the customers.” - Job
Marketing: The main function is to find the right products for the customers.
Selling: The main job is to discover the customers for the products.
Marketing environment
The marketing environment refers to all internal and external factors, which directly or indirectly influence the organization’s decisions related to marketing activities. Internal factors are within the control of an organization; whereas, external factors do not fall within its control. The external factors include government, technological, economical, social, and competitive forces; whereas, organization’s strengths, weaknesses, and competencies form the part of internal factors.
Marketers try to predict the changes, which might take place in future, by monitoring the marketing environment. These changes may create threats and opportunities for the business. With these changes, marketers continue to modify their strategies and plans
Types of Marketing Environment:
The sale of an organization depends on its marketing activities, which in turn depends on the marketing environment. The marketing environment consists of forces that are beyond the control of an organization but influences its marketing activities. The marketing environment is dynamic in nature.
Therefore, an organization needs to keep itself updated to modify its marketing activities as per the requirement of the marketing environment. Any change in the marketing environment brings threats and opportunities for the organization. An analysis of these changes is essential for the survival of the organization in the long run. A marketing environment mostly comprises of the following types of environment:
- Micro Environment
- Macro Environment
Importance of marketing environment
- Identification of Opportunities:
It helps an organization in exploiting the chances or prospects for its own benefit. For example, if an organization finds out that customers appreciate its products as compared to competitors’ products then it might encash this opportunity by giving discounts on its products to boost sales. - Identification of Threats:
It gives warning signals to organizations to take the required steps before it is too late. For example, if an organization comes to know that a foreign multinational is entering the industry then it can overcome this threat by adopting strategies, such as reducing the product’s prices or carrying out aggressive promotional
strategies. - Managing Changes:
It helps in coping with the dynamic marketing environment. If an organization wishes to survive in the long run then it has to adapt to the changes occurring in the
marketing environment
Industry and competitive analysis
What is Industry Analysis?
An industry is a group of firms producing a similar product or services like various dosage forms or medical devices. Industry Analysis is business research that focuses on the potential of an industry
Industry Analysis Importance
Once it is determined that a new venture is feasible in regard to the industry and market in which it will compete, a more in-depth analysis is needed to learn the ins and outs of the industry. The analysis helps a firm determine if the niche market it identified during feasibility analysis is favourable for a new firm
When studying an industry, an entrepreneur must answer three questions before pursuing the idea of starting a firm.
- Is the industry accessible—in other words, is it is the realistic place for a new venture to enter?
- Are there positions in the industry that avoid some of the negative attributes of the industry as a whole?
- Does the industry contain markets that are ripe for innovation or are underserved?
What is a Competitor Analysis?
Competitor analysis is a detailed analysis of a firm’s competition. It helps a firm understand the positions of its major competitors and the opportunities that are available. A competitive analysis grid is a tool for organizing the information a firm collects about its competitors
Sources of Competitive Intelligence
- Ethical ways to obtain information about competitors
- Attend conferences and trade shows.
- Purchase competitor’s products.
- Study competitors’ Web sites.
- Set up Google and Yahoo! e-mail alerts.
- Read industry-related books, magazines, and Web sites.
- Talk to customers about what motivated them to buy your product as opposed to your competitor’s product.
Analyzing consumer buying behaviour
What is Buying Behavior?
Buying Behavior is the decision processes and acts of people involved in buying and using products.
Need to understand:
- why do consumers make the purchases that they make?
- what factors influence consumer purchases?
- the changing factors in our society.
Consumer Buying Behavior refers to the buying behaviour of the ultimate consumer.
Types of consumer buying behaviour are determined by:
- Level of Involvement in a purchase decision. Importance and intensity of interest in a product in a particular situation.
- Buyers’ level of involvement determines why he/she is motivated to seek information about certain products and brands but virtually ignore others.
A consumer, making a purchase decision will be affected by the following three factors:
- Personal
- Psychological
- Social
Industrial buying behaviour.
In the marketing process, there is a need to understand why customer or buyer purchases goods and services. Though, limited research has been found on how the industrial buyer performs when faced with drastic product innovation. Buyer behaviour is associated with the operations and decision processes involved to select between alternatives, procuring and using products or services.
Industrial buyer behaviour is in the quintessence of understanding how industrial organizations purchase products and services. It is also identified as an organizational buying process or business buying process. This field is essential to comprehending customers’ needs.
It is imperative to be conscious of the differences between consumer buying and industrial buying because the industrial buyer behaviour varies from consumer buying in many facets such as using more variables and greater difficulty to identify process participants.
The Webster and Wind Model of organisational buying behaviour is quite a comprehensive model. It considers four sets of variables: environmental, organizational, buying centre, and individual, which, affect the buying-decision-making process in a firm.
In 1973, Professor Jagdish N Sheth developed the Sheth model of Organizational Buying. This model highlights the decision-making by two or more individuals jointly, and the psychological aspects of the decision-making individuals in the industrial buying behaviour It includes three components and situational factors, which determine the choice of a supplier or a brand in the buying decision-making process in an organization.
Pharmaceutical market
Quantitative and qualitative aspects
The process of conducting primary market research and collecting market research data and information can be broken down into two methods; quantitative and qualitative research. Each method involves a different process and reveals different information. However, it has been noted by business professionals and academic experts that in order to gain a full understanding of a business environment, the market place and the consumers within it, it is wise to conduct both quantitative and qualitative market research.
Quantitative Market Research
Quantitative market research is the collection of numerical data often resulting in statistical analysis to understand trends in the data. The main characteristic of quantitative market research is that it allows for comparisons and trends in the data to be easily found and understood. It should also be noted that as a result of the standardised questions, quantitative market research is a more structured market research process and can therefore involve a larger number of respondents to participate in the research.
There are several different types of data collection in quantitative market research;
- Face-to-face
- Telephone
- Online / web
It is important to carry out quantitative research before starting a new business or launching a new product, or service as it gives factual figures and data that highlight target market interest and can help secure investors, as the risk of their investment is reduced as future demand is shown. It also enables managers to compile sales forecasts and revenue. These can be done through the use of target market response rates and any pricing information or preferences that are revealed by respondents during the research.
Qualitative Market Research
Qualitative market research provides reasoning for consumer actions, opinions, wants and needs; it helps the marketer to understand why a consumer has acted and purchased in a certain way. This type of market research differs from quantitative market research as it does not follow a predetermined set of questions. Instead, the research sets out a topic, or discussion guide, to ensure that the research aims are still met and the appropriate questions are asked to the participant. During the research, the researcher is able to explore the discussion guide in great detail allowing for long discussions to develop; revealing a vast amount of information. Further to this, qualitative market research can be difficult for researchers to obtain all information discussed during the interview. As a result of this, qualitative market research is usually recorded to ensure all information is collected for analysis.
Qualitative market research, as with quantitative market research, has several different methods;
- Focus groups containing (6 – 8 participants)
- Mini-group discussion (4 – 5 participants)
- Triad (3 respondents)
- Paired (2 respondents)
- ‘One on one’ depth interview (1 respondent)
Above all, It is important to carry out qualitative market research as it highlights target market opinion on the business idea, product or service.
After all, By understanding these views it can allow a manager to alter and adapt their idea to ensure consumer satisfaction and competitiveness within the market; the product or service is needed for the customer’s needs and wants which will allow them to be competitive.
Size and composition of the market
Demographic descriptions and socio-psychological characteristics of the consumer
Market segmentation & targeting
Consumer profile
Motivation and prescribing habits of the physician
Patients’ choice of physician and retail pharmacist
Analyzing the Market
Role of market research
Final Year B Pharm Notes, Syllabus, Books, PDF Subjectwise/Topicwise
Suggested readings
Recommended readings:
Reference:
https://www.invitereferrals.com/
https://www1.udel.edu/alex/chapt6.html
