Pharma promotion strategies and budgeting

Chapter 4: Promotion
By Ankita S. Burande
Assistant Professor,
Nagpur College of Pharmacy, Nagpur

Introduction
• WHO defines pharmaceutical promotion as, ―all informational and persuasive
activities by manufacturers and distributors, the effect of which is to induce the
prescription, supply, purchase and/or use of medicinal drugs.
• Promotion includes the activities of medical representatives and all other aspects of
sales promotion such as journal and direct mail, advertising, participation in
conferences & exhibitions, the use of audio-visual materials, the provision of drug
samples, gifts, hospitality for medical profession and seminars, etc.
• Pharmaceutical promotion is a costly affair. In an article, published in Scrip
magazine in 1997, the authors Devlin and Hemsley estimated that pharmaceutical
companies allocated 35% of their revenues to marketing. Promotion takes away the
largest chunk of these allocations.
• Nevertheless, promotion is the most important factor group, which affects the
prescribing behavior of the physicians.

Importance of Promotions
• 1. Increased the Awareness:
• 2. Increases the knowledge and Preference: Customer does not buy the product only by
knowing it is existed in market, promotion has responsibility to further communicate
usefulness of product by assuring product is required by them.
• 3. Increasing the retailers: due to promotions, consumers seek the promoted product(s) in
the retail stores. prompts the retailers to offer the promoted product in their stores.
Therefore, promotion helps in increasing the number of retailers.
• 4. Increases the sales and Establishing the brand: Increase in sales is the final measures
of successful promotional strategy. Three basic objectives of promotion is to inform, to
persuade and to remind, results of an effective promotion is to the sales increment of a
particular product or product-mix.
• 5. Maintaining the public profile: A sound public profile of the organisation and is
products is developed through the effective use of promotion. It helps in its communicating
the capabilities and importance of the organizational products to target customers. Thus, it
enables the customers to buy more.

Strategies of Marketing Communication/Promotions
• Following are the two main marketing promotion strategies:
• 1. Push Strategy: When market intermediaries of the distribution channel are targeted to
design the promotional program, it is called push strategy. In this strategy, market
intermediaries are encouraged to buy or stock the organisational products, promote them
and ultimately sell them to target customers.
• In push strategy, promotional techniques like sales promotions, personal selling, trade show
for sales personal are used
• Push strategy are applied under below conditions
• 1)The brand clutter or brand identity is weak, 2) Product differentiation is not available,
• 3) Access to advertising media is not possible, 4)The budget for promotion is low

Strategies of Marketing Communication
• Pull Strategy: In the pull strategy customers are encouraged to purchases product from the
retailers through promotional programmes,
• Due to this strategy, customers demand the promoted product from retailers. Consequently,
retailers demand the given product from wholesalers, who, in turn, demand the product
from distributors, and final distributors order the product from organisations.
• Pull strategy is best applied under the conditions, when:
• i) Brand identity is strong, ii) Category of the product is high-involvement product,
• iii) There is perceived product differentiation, iv) Brand loyalty is high,
• v) Promotional budgets are high, and vi) Retail includes self-service, i.e., supermarket
culture.

Determinants of promotional mix
• Planning communications strategy is the 6 Ms model
• 1. Market – to whom is the communication to be addressed?
• 2. Mission – what is the objective of the communication?
• 3. Message – what are the specific points to be communicated?
• 4. Media – which vehicles will be used to convey the message?
• 5. Money – how much will be spent in the effort?
• 6. Measurement – how will impact be assessed after the campaign?

Determinants of promotional mix
• Factor that influence the promotional mix
• 1. Nature of Product: pharma product are not advertise in newspapers and
journals. It is promoted by pharmacist or MR and Advertised in medical journal.
• 2. Stage in product life cycle: In early phase needs to create awareness among
costumers and promotion includes advertising. Sales promotion, trade promotion,
spreading the information. In later stage, marketers need to maintain the loyalty of
product.
• 3. Budget availability:
• 4. Company Policy: before deciding promotional strategy, company must ensure
that they are in line with company policies.

Promotional mix
• Promotion /communication is one of component of marketing mix. Traditionally
promotion involve advertising, Sales promotions and personal selling techniques.
• Promotions mix is potentially extensive including non- personal elements as well as
personal selling. The popular non-personal vehicles are advertising, sales promotion
and public relations. Advertising in media is particularly effective in
• Creating awareness of a new product
• Describing features of the product
• Suggesting usage situations
• Distinguishing the product from competitors
• Directing buyers to the point-of-purchase
• Creating or enhancing a brand image

Promotional mix: Methods of Promotions
• The following promotion mix elements in the order of importance for
consumer marketing and industrial marketing.
• It is non-paid communication efforts; such as press releases, exhibition,
seminars. These efforts do entail a cost to the firm, but generally are
distinguished from advertising by virtue of the fact that the firm does not
pay for space in the media vehicle itself.
Public relations
• Advantage of permitting an interaction to take place between the firm and a
potential customer rather than just the broadcast of information.
Personal selling
• Trade offer, special discount, special offering for bulk purchase etc. in
pharma sector sales promotion create networking channel for health
professional and provide opportunity to established strong relation with
patients.
Sales Promotion
• It is non personal promotion. In pharma sector advertisement has
direct impact on patient health, it is process of increasing awareness
and interest among patient to buy the product.
Advertising

Promotional Budget
• Promotional budget is a blueprint for spending the money to promote a
product and to grab the attention for the customer towards that product.
• It is specified amount of money which is allocated to promote the product
or belief of a business.
• The budget is often set on the basis of percentage of sales or profits.
• The part of total marketing expenditure or budget assigned for advertising in
order to attain objectives set up for advertising within a definite time period
is called “Advertising promotional appropriation” or “budget”.
• It is also known as marketing communication (Marcom).

Objectives of Promotional Budget
1. To Communicate: The process of budgeting involves justifying the resources required
for the achievement of organisational objectives. The scope and scale of tasks as well as
the methods of carrying them out are communicated by the managers to their superiors.
2. To Coordinate: There must be coordination among the various task performed by the
various departments of an organisation. E.g. Coordination between manufacturing and
purchase department is necessary to make the proper availability of goods in market.
There must be proper planning and execution of promotional activities.
3. To Plan: Generally, budget refers to the plan for carrying out the organizational
operations over an extended time period.
• Planning involves answering the questions and making decisions. Traditional processes
and plans are also compared with the new ones.
• The process of planning also involves decisions regarding effective performance of
activities and availability of resources.

Objectives of Promotional Budget
4. To Control:
• After the finalisation of the budget, the organisational activities and operations
are to be carried out.
• Regular monitoring is necessary to know if there are any deviations and
variations between the actual and the budgeted expenses and revenue.
• Corrective measures should be taken in case of any variation from the planned
budget. In the absence of regular monitoring, the organisation cannot keep
track of its activities and cannot take any timely remedial measures.
5. To evaluate:
• Comparing the budgeted and the actual performance is one of the ways to
assess a manager.
• The manager should try to generate profits within the budgeted expenses.
However, the performance of managers is also affected by factors like economic
conditions, market conditions, etc.

Factors Influencing Promotional Budget
1. Objectives to be Achieved:
• The objectives which are to be achieved by the organisation determine its extent of
expenditure. Objectives serve as standards for the performance of promotion
activity.
• The various objectives can be:
• i) New product introduction ii) Building of goodwill iii) Increasing sales
• iv) Supporting sales team v) Managing the competition vi) Building brand
preference vii) Reaching inaccessible customers viii) New market entry
• ix) Improvement relationships with dealers x) Increasing the industry's sales
• Thus, the promotion budget is prepared keeping in mind the various objectives.

2. Fund Available: Important factor while preparing budget. No matter how the manager attempt to increase
the sale or profit, those can not be achieved if there is unavailability of fund.
3. Coverage expectation: the number of people who are to be reached is determined by promotional coverage.
It refers to reaching the target costumer with the help of various media.
4. Class of the product: Consumers goods mainly divided into three category i.e. Convenience goods,
shopping goods and speciality goods. Convenience goods are depends heavily on mass promotion and required
extensive distribution. As they demand heavy promotion outlay. Conversely less promotion outley is required by
fashion goods. This is because buyers of such product can assess the quality themselves by going from one shop
to another.
5. Stages in product life cycle:
• All products go through four phases of their life cycle viz., introduction phase, growth phase, maturity phase
and decline phase. In the introduction phase of the product, the need for promotion is supreme. so the
promotion budget increases.
• Whereas in the growth phase of product there is also substantial amount of promotion expenses. On the
other hand, when the product is in the stage of maturity or decline sales are generally revived through price
appeal rather than the strategy of promotion. Thus, the promotion expenditure lowers

6. Competitive activities:
• The success of an organisation depends upon identifying its competitors and their activities instead
of its spending ability.
• As a result, the promoter should have an idea about its competitors. Their strategy and their amount
and pattern of spending.
• It has also been observed that many organisations use the budget pattern of their competitors for
preparing their own promotion budget.
7. Approach to Advertising: The approach adopted towards the concept of advertising is also a
factor to be considered while preparing the advertising budget.
8. Size of company: Size of the company also influences the promotion budget.
• Bigger organisations having enormous amount of financial resources would be liberal in preparing
their promotion budget. For such organisations,. even a small percentage of sales (set aside for
advertising) is enough to bring about the desired outcomes.
• On the contrary, smaller organisations with less financial resources have to spend relatively more in
order to bring about the same desired outcome.

9. Age of company: A well-established and familiar business firm is likely have
an edge during the introduction of new goods or services.
• Since an established company is known to the people and is also dependable,
any new product of company will be radialy acceptable by people.
• On the contrary, it would not be easy for new business firm to introduce
products in the market since it is not much known to be people.
10. Prevailing Economic Condition: There is a dynamism in the economic
activities. Just like the business cycle goes through boom and slump phase,
similarly economic system goes through the brisk and slack phase in economic
cycle.
• Many company cut down their promotion budget in the slump phase and
increase their advertising budget in boom phase.

Methods of Promotional Budgeting in Pharmaceutical Company
• Some of important methods of promotional budgeting are below:
• 1. Percentage of sale method: In this method, the budget is determined by product of value of
previous years sales or estimated sale for specific budget period and pre-determined percentage.
Advertising Budget Amount = Past Year's Sales or Anticipated Sales x Pre-determined
Percentage
• 2. Competitive Parity Method: Some companies set their promotion budget to achieve share-of-
voice parity with competitors.
• Proponents of this method argue that competitors' expenditures represent the collective wisdom of
the industry and that maintaining competitive parity prevents promotion wars.
• Neither argument is valid. Company reputations, resources, opportunities and objectives differ so
much that comparing promotion budgets is not appropriate guide.
• Furthermore, there is no evidence that budgets based competitive parity discourage promotional
wars.
• By the use of this method, a company is able to beat competition by analysing the spending of the
competitors.

• Some of important methods of promotional budgeting are below:
• 3. Fix amount allocation method: In this method, a company allocate a fix
amount on a particular product on the basis of past sale records. A allocating
the amount strategies are prepared accordingly.
• 4. Economy of Scale Method: Many firms use this method because the
management wants to avoid promotional costs that define the promo budget at
the minimum level in order to achieve the maximum output.
• 5. Strategic Objective and Scheduling Method: In this method, past record
is very important. In pharmaceutical marketing, this is one of the method from
strategic point of view. The promotional budget is distributed according to the
target and is prepared in accordance with product sale plan.

• 6. Push Led Strategy of Product Promotion: Every local company use this
strategy because their product promotion is solely based on the trade margins
provided to the retailers. However, generic product are being pushed into the
market on wide scale. This strategy is extensively used in the marketing of
generic drugs.

Personal selling
• Personal selling can be defined as a direct and face-to-face communication between
seller and buyer, in which the seller provides information about the firm and its
products to the buyer so that he or she can make the decision about purchase.
• It is a two-way communication, allowing the buyers to actively participate in the
communication process.
• Personal selling builds the relationship between sellers and the customers, while in
turn makes it a unique form of selling. It is an only method of direct sale
promotion. Although, it is a flexible and efficient method of sales promotion, also
incurs a huge cost.
• Medical Representatives (MRs) are the focal resource in personal selling.
Pharmaceutical companies sell the same or identical products so personal selling is
used as a method which makes the difference between the products.
• Brochures, information of drug, drug samples, personalized gifts giveaways, etc., are
the tools used in the process of personal selling

Features of Personal Selling
• Features of personal selling are as follows:
• 1. Face-to-Face Communication: Personal selling involves developing a
relationship between buyer and seller through a face-to-face communication.
• 2) Oral Communication: Personal selling takes place through an oral
communication regarding the firm's products and their features such as, colour,
shape, design, etc.
• 3) Quick Handling of Queries: In the process of personal selling buyers enquire
about the product and the seller tries to solve the problems quickly by providing
relevant information.
• 4) Costly Method: Sales personnel are able to contact with few buyers only in a
day. If the firms employ few personnel to minimize the expenditure, the firms will
not be able to achieve the predetermined targets. On the other hand, employing a
large number of sales personnel can incur a huge cost.

Features of Personal Selling
• 5. Flexible Method of Selling: Personal selling is a flexible method of selling,
since the salesperson can act and communicate according to the responses of
customers to persuade them for purchase. The salesperson can read the mind of
customers and can change his approach accordingly.
• 6) Slow Process: It is a very slow process, as the sales personnel go from door to-
door multiple times for selling. It can be successful, only when the buyer agrees to
purchase, which consumes their time. This in turn, slows down the speed of sales.
• 7) Knowledge about Customers: Although the sales personnel target the
customers after gathering information about them, but after contacting them
directly, they get to know more about their tastes and preferences.
• 8) Maintenance of Records: Sales personnel maintain records regarding products
sold and the orders received from each customer.

Process of Personal Selling in Pharmaceutical Industry
• The steps in the personal selling process are described below:
1. Pre-sale Preparation: It is the first step in personal selling process.
• Here, the sales personnel try to acquire the background knowledge about customers, their wants,
needs. Also gain the knowledge about market, product, its features, product of competitors and
method of selling.
• The sales personnel should know the benefits and disadvantages of their own product as well as
the product of competitors.
• 2. Prospecting: The next step in personal selling is prospecting. it is concerned with
identification of potential costumers, vendors, formation of portfolio sales. Portfolio sale is a lit
of pharmaceuticals pharmacies, wholesalers, etc.
• 3. Conquest of Arrangement the Client : This step is based on the first impression of the
customer towards seller's attitude, his behavior and appearance. Presentation is one of the most
important stages of personal selling.

• It aims to create a personal contact between the buyer and seller which provided some
relevant information to the buyer about the new medicine. This helps in convincing the
buyer so that they can purchase that medicine.
• 4. Presentation: Attention, Interest, Desire and Action (AIDA) is the function of any
presentation.
• Mechanical approach and targeted approach are the two methods of presentation.
• Targeted approach is used by the sales representatives and other health professionals to
identify the specific needs of the potential buyer.
• On the other hand, mechanical approach is used by the beginners in which memorised
information regarding drugs are repeated.

• 5. Overcoming Objections: Overcoming personal sales objections is the next step of
personal selling. Usually, indication of consumer's interest is considered as objection. It
provides an opportunity to develop new ideas.
• Approaches to overcoming objections are as follows:
• i) Asking counter-questions to the sales representatives.
• i) Providing responses to the objections of the customers.
• i) Resolving the issues by careful consideration.
• 6. Completion of the Sale: Whenever a customer takes decision to buy a product then it is
called as stage of completion of sale. After the completion of the sale, it is important for
the seller to contact with the customer and collect feedback from the customer regarding the
product.

Importance of Personal Selling
• Following points highlight the importance of personal selling:
• 1) Allows Mutual Communication: Personal selling allows the seller to communicate with
the customers and therefore helps in resolving the objections. It also allows the seller to
discuss the selling points with the customers instantaneously.
• 2) Allows Modifying the Message: The direct communication allows the to modify the
message for better understanding by the buyer. It help seller to understand the specific
problems and needs of customers.
• 3) Less Distraction: Due to direct communication, the chances of distraction are reduced
as the buyer pays more attention to information provided by the seller. It is less distracting
even when there are more than one sales people involved in the presentation or more than
one buyer is involved.
• 4) Provides Information: For an organization, where the marketing and sales departments
are well-structured, the sales force can play an active part in gathering updated information
about the competitors and their strategies such as their products, pricing, promotion, etc.,
that will help the marketing department in formulating competitive strategies.

ADVERTISING
• A promotional tool, which stimulates the prospective customers to take or continue a
particular decision, with the help of a commercial offering, is called Advertising.
• The title 'advertising' is taken from a Latin word 'advertere meaning 'to turn toward‘.
• The advertisements are capable of diverting the attention of the viewers, listeners,
readers or the onlookers towards a particular brand, product, service or an idea. Thus,
any piece of information that diverts the attention of the target customers
towards a brand/product/service idea, can be called 'advertising'.
• According to American Marketing Association, "Advertising is any paid form of
non-personal presentation of ideas, goods or services by an identified sponsor".
• According to Wheeler, "Advertising is any form of paid non-personal presentation
of ideas, goods or services for the purpose of inducing people to buy".

Advertising Objectives
• Following are the main objectives of advertising
• 1) To Inform: Providing product information is the key purpose of advertising.
The organizations may broadcast existing or new products and services offered to
the public through advertisements. The advertisements strategically focus on
drawing the attention of potential customers, through utilizing effective verbal and
communication techniques that become highly appealing.
• 2) To Influence: Sometimes, informing target customers about products and
services does not generate required results. So, organisations start using advertising
to influence the consumers to buy their offerings. For this purpose, suitable
languages and pictures/images are utilised by organisations in their advertisement
programs to influence the customers.

Advertising Objectives
• Following are the main objectives of advertising
• 3) To Remind: Reminding the customers about offered products and services, is
also an objective of advertising. As numerous brands exist in a single product
category, it may make the customers forget about some brands. The advertisements,
thus, remind the customers about the brand/organisation and position its offerings
in the minds of the customers.
• 4) Add Value: Advertising aims at presenting the product or service to the audience
in a positive light, so as to add value to the organisation's brand. While preparing an
advertisement, an advertiser focuses on increasing brand value by emphasising on
the product's strengths. As the basic characters of advertising is to persuade, a
brand's value can be increase by using advertising elements like pictures/images and
texts.

Principles of Advertisement
• A decent advertising message can be formulated with the help of principles of
advertisements. These are described below:
• 1) Attract People: Advertisements should have the potential of instantly
attracting the people. An advertisement can be called effective if it attracts a
person for only a mere second and compels him/her to take a second look.
• 2) Be Clever and Creative: A smart advertisement signifies a smart company.
Therefore, having a creative and advertisement campaign becomes very crucial.
It must reinforce the image of the brand and grab the attention of the people.
People would like to know more about the products and services of a firm
whose advertisements are perceived to be smart and creative.

• 3)Speak Loudly: An advertisement can be heard more if it speaks loudly. "The louder
it talks, the more people hear to it". Although, an advertisement which is "loud" may
not necessarily mean a big advertisement. But this can be attained in various different
manners.
• 4) Do not Make People Think: Advertisements should not stimulate overthinking
among the people. Therefore, advertisers must smartly apply their mind while creating
an advertising message. It should be created in way that a person instantly understands
what the ad wants to communicate.
• 5) Use Colours That Make Sense: Choosing a colour scheme is also a crucial part in
advertising. Since the actual feeling of a brand works parallel to colour scheme
therefore the colours must be selected keeping in mind audience and the environment
which the advertisement caters to.

• 6) Be informative: An advertisement is a pictorial representation of message.
• 7) Be memorable: two important element of effective advertising message is
memorable and uniqueness. Therefore good advertisement should be unique
and entirely different so that it become memorable.
• 8) Show not tell: An advertisement can be effective if it demonstrate but not
tells. Using pictures/skit is advised to demonstrate a concept rather than using
simple text.
• 9) Use Humour: Adding humour to ad is also way of attracting audience.
Humour is not applicable all the time. Sometimes it does not even match with
company or brand. Therefore, they should be used judicialy.

Advertising techniques in Pharmaceutical
Companies
• 1. Direct Mailing
• 2. Printed Advertisement (Newspapers, Professional Magazines, Journals)
• 3. Television, Radio or other Audio-visual Media
• 4. Personal Contact and detailing
• 5. Outdoor Advertisement.

Direct Mail
• One of the oldest means of approaching the target audience is direct mail advertising
media.
• Direct advertising is most common and widespread form of media. instead of using indirect
medium like magazimes or newspaper to delivered message, uses all types of printed
advertising which directly connects with target audience.
• The printed form of material can be distributed door-to door, distributed to people who are
passing along road sides, fixed under wind screen of automobiles, sent through posts or
distributed through retailers.
• When all these information written on printed matter is sent directly through mail, then it is
termed as direct mail advertising.
• It is an important method of communication for the doctors and other healthcare
professionals.
• A direct mail displays the brand name of the company and provides detailed information
about the product. It also enables companies to interact with customers directly.

Types of direct mail marketing
• 1. Post card: Post card is the most widely used form of direct advertising because of its
high attention value and economy. It is designed to get direct and immediate attention of
the recipient. Post cards are used to carry brief messages, to acknowledge the orders, to
announce the next mailing, to check the address, to rescind, to make an offer, to answer an
enquiry and to bring the mailing list up-to-date.
• 2. Envelope closure: By 'enclosure' normally we mean a paper enclosed or attached or
agged to the main letter. Here, it stands for the bunch of papers itself, which posted
separately. It may be a circular, or a stuffer or a folder.
• 3. Broad Slide: Broad-side is a large size advertising folder. The striking features are its
superior or jumbo size, typographical and illustrative display
• 4. Book let: Book-let is a very small book consisting of not more than 8 to 10 pages.
fastened with staples or glue to allow it to open as a book. A book-let is usually mailed in an
envelope.
• 5. Catalogues: it is quit similar to book let in physical make up except it is much larger and
present wide range of product of the business house.

Types of direct mail marketing
• 6. Store publication: A store publication is a house organ or bulletin. It is a magazine or a
missilery publish by the company mainly for the purpose of promoting goodwill and moulding
the public opinion, though it has the tinge of sales expansion. These house organs are freely
distributed to the dealers, customers and the employees.
• 7. Package insert: Better results, the advertising message on the package must be short and
illustrative, giving product features and its uses. the phrase 'package inserts' is used in a broad
sense and includes packages, labels and inserts. Though a package is a container protecting the
contents and facilitating easy handling, storage and transportation, it is also a very effective means
of carrying message about the product. Thus, it acts as a medium of advertising.
• 8. Sampling: Sampling is that method of direct advertising where the advertisers distribute
samples of the product to prospective customers free of cost. This sampling works on the theory
that a product once tested by the use will sell itself.
• 9. Leaflet: A leaflet is a single printed sheet. It is used to explain the message fully. The printed
leaflet running into a few pages may be inserted in an envelope bearing the requisite postal stamp.

Importance of Direct Advertising
• 1. Flexibility: Out of all the media, direct advertising is the most adaptable and flexible.
• It can adjust into any form, shape or size. It may remove or add some name as per its wish,
choose among the various direct advertising media, focus on a few or large number of prospects
depending upon the cost involved, etc.
• 2. Highly selective: It offers the cope to the advertiser to choose prospect as per his/her
confidence and choice and direct the advertising efforts to them only.
• 3. Deeper Impact: Direct advertising focuses on a limited set of prospects. Therefore, the
advertising messages are directed towards the individual prospects. Messages reach the home of
the prospects and have their names on it. It provides the freedom to the prospect to read the
communication or the advertising message when they are at leisure and relaxed. This leaves a
deeper impact on the minds of the prospects which in tum results in increased amount of sales
and satisfaction.
• 4. Personal Touch: Direct advertising is specific and personal, unlike newspapers or magazines
which are impersonal and generic. Every advertising message can be personalised and customised
according to the individual prospect. This has a huge psychological impact on the prospect.

Trade Journal
• A periodical that comprises discussions, new developments, articles and many more, in respect to the specific
profession or trade is defined as trade journal.
• In other words, it is an electronic publication or magazine focused on a particular company. For example, a
publication "Advertising Age" targets the advertising companies and publishes news and other related
matters for specific industry or trade.
• Articles published in medical journals can be considered as an effective information source for physicians or
doctors. The basic aim of publishing the medical journals is to educate the physicians, researchers, scientists
and other healthcare workers regarding the new researches.
• These journals are served as a basic method for primary care physician or doctors through which they get
information and practice.
• E.g. telephone survey was conducted of stratified sample of over 600 physician in order to evaluate the
benefits of certain research program designed for education of primary care physician treating diabetic
patients.
• Here, articles published in Journal were recognized a the potential information source in comparison to other
sources of continuing medical education that affects practice behavior related to diabetes.

Trade Journal
• E.g. telephone survey was conducted of stratified sample of over 600 physician in
order to evaluate the benefits of certain research program designed for education
of primary care physician treating diabetic patients.
• Here, articles published in Journal were recognized a the potential information
source in comparison to other sources of continuing medical education that affects
practice behavior related to diabetes.
• Alimentary Pharmacology & Therapeutics, The Angle Orthodontist, Annals of
Emergency Medicine, Biological Research for Nursmg, Indian Joumal of
Gastroenterology, Indian Pacing and Electrophysiology Journal, Indian Journal of
Pharmacology, International Journal of Psychoanalysis, Investigative
Ophthalmology and Visual Science, etc., are some of the examples of medical
Journals.

Advantages of Trade Journals
• Following are the advantages of trade journals:
• Hits Target Audiences: Advertisers have assured of reaching out the target
• audiences when they advertise in trade journals. Thus indicates the effective and efficient use
of the advertising budget.
• Meet New Suppliers: Advertisers are able to get both new customers and wholesalers and
pharmacists who are ready to sell advertiser's product at reasonable rates by advertising in
trade journals.
• Cost Effective: In order to have an effective and sustained campaign, ads in newspaper or
on TV need a lot of money. While, advertising budget gets more mileage of longer time
period with just a couple of ads in the reputable trade journals.
• Builds Market Image: The business of advertiser gets more respect and importance by
advertising in trade journals than advertising in newspapers or TV.

Disadvantages of Trade Journals
• The disadvantages of trade journals are as follows:
• l) Since, trade journals are used by the various competitors, the physician's attention
gets divided among various ads.
• 2) Journals which have wide circulation are distributed cost-free and that is why
these journals are casually read by the audiences.
• 3) There have been different perceptions regarding the trade journals related to
same trade. Because of the closely similar trade journals, there are varied buying
influences experienced in potential customer organizations.
• 4) Limited to particular content and are less comprehensive.

Exhibitions
• Many company exhibit their products in international trade fairs and exhibitions.
This serves as a platform for direct negotiations between the sellers and the buyers.
• The buyers from various countries visit major international trade fairs.
• Though people do use these two terms namely, exhibition and trade fair
interchangeably, there is difference between the two. Exhibition is in effect, a
congregation of showrooms of different manufacturers under single roof top. It is
a huge gathering of manufacturers for the purpose of displaying, demonstrating
and booking order for their latest products.
• Exhibitions are non conventional in the sense that they do not provide
entertainment.

Types of exhibitions
• 1. Association Sponsored versus for profit : Association-sponsored shows are
exhibitions that occur as a sideline to a convention and conference of a trader or
professional association.
• For eg. Califormia dental association has an annual convention that includes
seminars on the latest dental practices plus an exhibition of dental equipment.
• 2. Regional versus National Global: regional shows attract both regional and
exhibitor and regional attendees. Regional shows are usually the least expensive to
participate in because of smaller show. Regional shows doesn’t mean domestic some
regional shows are international. Choosing regional, national or global show
depend on one market and marketing strategy.
• 3. Vertical versus Horizontal: A vertical show is one that focused on one industry
or profession. Horizontal shows that includes many industry and profession.

Medical Exhibition
• Medical exhibition presents a great place for the physicians or doctors to find
best medical equipment's/products at reasonable prices. It is a one-stop place
for many visitors to purchase clinical equipment's for their clinics, hospitals
and also allows them to get international dealership.
• The participants of medical exhibition include decision makers or
professionals from reputed medical organisations, physicians, hospital
owners, and doctors.

Following are the tips to exhibit effectively among the competitors:
• 1. Know Product like the Back of Hand: The company is required to know each and everything
regarding the product in terms of its benefits, uses, side effects, and various other features as the visitors in
the exhibition are doctors. physicians and other medical professionals.
• 2. Make a Lively Presentation: There are only two possibilities in the medical exhibition. Either there are
few visitors or number of visitors. In any of the above two conditions, one should not lose his confidence
as enthusiasm and excitement, he presents at the presentation time sets the tone for sale.
• 3. Reach Out to the Attendees: Sometimes, one is required to reach out the Attendees to draw them
towards his stall in a medical expo where world-class medical equipment's are in large numbers. This will
also be successful as the participants will be confused to choose their stalls to know more about their
preferred medical equipment.
• 4. Know more about competitive product: One is required to know all about his competitor's product
regardless of that his product might be one of the most trusted and preferred product in the market.
• 5. Do strategic marketing: there are very rare chances of sale in medical expo. Therefore the marketer are
required to smart enough so that their product boom in the mind of attendees even after they left the
exhibitions.

Sampling/ Samples Distribution
• Sampling/ sample distribution refers to free distribution of samples to the
customers. This can be done as door-to-door distribution or distribution
through retail stores or along with the purchase of a particular product.
• The customers get a chance to verify the product quality before they actually
start using it. For example pharmaceutical companies give away free samples
of medicines to doctors, who if find these suitable, may also prescribe to
patients.

Appropriate methods of sampling distribution.
• 1. Door-to-Door Sampling: This refers to the approach in which the products are delivered to
the residence of the prospect customer directly. Door-to-door sampling is quite an expensive
method as it consists of labour costs
• 2. Sampling through the Mail: This includes targeting specific market areas as where the
sample has to be delivered. Usually the lightweight, small in size and samples used here are non-
perishable. Here the marketer has control over the location and timing of sample delivery.
• 3. In-Store Sampling: This method is extremely popular, particularly when talking about food
products. Temporary demonstrators are hired who meet the customers and passers-by in small
booths and handover small sample product packets to them.
• 4. On package sampling: In this method samples were attach with another product. It is cost
effective method. Useful in multiproduct brand where they can attach new product with existing
one.
• 4. Event Sampling: This method emerge as a fastest growing method. Sampling are used as part
of integrated marketing programs that feature events.
• These event takes place in concerts, sporting event and other relevant venues.

Retailing
• The original word ‘retail’ is related to French word ‘retaillier’ which means to
break the bulk or "to cut a piece off".
• In the process of distribution, the product move from manufacturer to the
final customers. Several middleman's are involved in this process and the
retailers are the last one. Retailers directly can offer the firm's product to the
customers, and thus links the customers with the manufacturers.
• They collect feedback from the customers directly and convey it to the
manufacturers. The comprehensive combination of different activities or
steps which are used to sell a product or a service to the consumer for self or
family consumption is termed as retailing

Functions of Retailing
• Following are the main functions of retailing:
• 1. Sorting: Sorting is one of the main functions in retailing. Producers generally offer large quantities of
similar or different products and expect it to be sold in lots to concerned buyers to reduce the cost
costumers require variety of products to choose from and buy only small qty. Therefore, in order to fulfil the
demand of both parties retailer perform the function of sorting
• 2. Breaking Bulk: Another function of retailing is breaking bulk. Big lots of the products are transported
by the producers and wholesalers in order to reduce the costs which are then devided into smaller quantities
by the retailer. so that these products can match with the consumption needs.
• 3) Holding Stock: In order to support the producers in inventory control and production, retailers provide
stock holding facility to them. In this, they maintain a significant level of inventory of products to be
supplied instantly to the ultimate consumers when they need it.
• 4) Supplementary Services: Through variety of buying process services, retailers make the simple and
convenient. In order to add value to the products, retailer are engage after-sales services, product guarantees
and entertaing complaints.
• 5) Channel of Communication: Acting as a channel of communication between producers/wholesalers
and the customers.

Difference between wholesaler and retailer

Importance of a Retailer in Pharmaceutical
Industry
• 1. The one who distributes the medical practitioner's prescription and sells medicines to the
patients is retailers.
• It is important that the product is accessible at the retail level. The doctor changes the
prescription and suggests an alternative if the prescription is returned because of lack of
stock. Moreover, the retailers sometimes have a strong impact on his customer that he
himself suggests an alternative brand to his customer.
• Retailers are considered as an essential information source for the company regarding the
circulation of competitor's product and doctor's prescribing behavior.
• The importance of retailers has been realized by the medical representatives as they spend
significant amount of time with the retailers to get useful information.
• Once the retailer is convinced about the company and its products, it facilitates to increase
the prescription drugs with OTC profile and sale OTC formulations.

OTC PRODUCTS
• Drugs that are legally allowed to be sold over the counter without the prescription of any medical practitioner are called as
OTC drugs or over the counter drugs. In India, drugs which are not in the list of prescription drugs are referred to as
non-prescription drugs or OTC drugs.
• Many countries select OTC drugs by regulatory agency. This agencies ensures that the ingredients of drugs are safe for
consumer even without any valid prescription. The OTC drugs are regulated by APIs (Active Pharmaceutical ingredients)
rather than end products.
• There are following Indian OTC drugs which promote brand on television:
• 1) Analgesic or Cold Tablet i) D'cold iv) Vaporub vii) Vicks
• 2) Antiseptic Cream or Liquids i) Boroplus
• 3) Balm or Rubs i) Amrutanjan Joint Ache Cream ii) Emami Mentho Plus iii) Himani Fast Relief iv) Iodex v) Moov
• 4) Cough Lozenges i) Halls Ci) Strepsils 5 Digestives i) Vicks Cough Drops
• 5 Digestives i) Dabur Hingoli i) Eno i) Hajmola iv) Pudin Hara
• 6) Heath Supplements (Tonic and Vitamin) Boost iü) Calcium Sandoz ii) Complan v) Himalaya ii) Stopache v)
Triaminic iv) Dabur Chawanprash
• 7) Skin Treatment (Medicated) i) Itch Guard ii) Krack heals

Marketing Strategies for OTC product
• A pharmaceutical company depends on its novel research molecule. When this research molecule loses its
market due to the expiry of Patent then these prescription products are shifted towards the OTC drug product
with the help of OTC drug marketing.
• Pharmaceutical company may use following marketing strategies for the marketing of OTC products:
• 1. Divest Strategy: Pharmaceutical industry uses divest strategy to cut the advertising and promotional expense.
As well as redirect their saving towards those companies are trying to brands that are still enjoying the patent
protection.
• 2. Value for the Money: Introducing new flavour, delivery system, or packaging in OTC products may lead to
an additional, functional and emotional consumer benefits. Thus, this strategy is one step ahead towards price
competition.
• 3. Invest in Generics: Pharmaceutical industry launches its own generic for capturing both ends of the market.
This will reduce the efficiency of generic manufacturer and may discourage them from entering in this category.
• 4. Research Molecule Strategy: Pharmaceutical companies can renovate themselves by launching new
formula, dosages and by demonstrating usefulness of new indication. Although conducting research is a time
consuming process and requires money and resources but it will create brand value of the company

Promotions of OTC product
• 1. Advertisement: According to Drug and Magic Remedies (Objectionable
Advertisement) Act and Rules, advertisements which show a slope of illness de not
allowed to be shown on public.
• The manufacturer must follow certain standards for the Advertisement of OTC drugs.
The advertisement should not be biased and support the rights the consumers
• 2. Sale Promotion: Sale promotions is used to increased the short term sale. it includes
offers and discounts coupons.
• 3. Direct Mail: A pharmaceutical company use direct mail publicity for the OTC drugs.
It increase the rate of response and improves sale of the company.
• 4. Personal selling: it involve selling of product directly to costumers, doctors or
physicians through sales force.
• 4. Push Pull Strategies:

Online Promotional Techniques for OTC
products
• Promotion on internet is more interactive because it creates a direct contact
between manufacturer and customers. This may give immediate result
• Promotion means introducing organization, product, or services to the customer.
This helps in increasing the demand for the products or services.
• Digital marketing is a new concept. The popularity of over-the-counter drugs leads
to the expansion of OTC sales on online platforms.
• In U.S., approx 25 per cent OTC sales currently occur via online platforms.
• Amazon, an online retail giant has recently launched a private label line known as
Basic Care which contributes the trend.

Digital Marketing Strategies
• 1. Launching a Content Marketing Portal [Rx & OTC]: Nowadays informative and helpful content is one of
the strongest tools for pharmaceutical marketing.
• Doctors are spending their times in analysing the information deeply marketing. This will help in making better
decisions regarding drugs or treatments. A content marketing portal proves beneficial for the promotion of of Rx
drugs. Consumers spent most of their time on online for searching symptoms, medicines and off-the-shelf
products that help them in treatment and prevention.
• 2.Leveraging Offline Recall for Online Conversions:
• 3. Leverage Digital Media: Those online media which are trusted by the doctors can easily bridge the
communication gap between the pharmacies and the physicians.
• Marketer should tap on neutral online medium where doctors can discuss about the OTC drugs and get detailed
information from other healthcare professionals.
• This online connection can be valuable for building relationship with doctors and getting the latest information in
about the drugs.
• 4. Tap into Social Media: Many big pharma companies have social media accounts. OTC brands can promote
their product by using online media such as, facebook live, infographics, educational videos or by twitter posts. This
• help marketer for interacting with the customers and answering their queries.

PUBLIC RELATIONS
• A group of individuals having a definite impact or likely interest in organization's
capability, to attain its targets, is termed as public.
• "Public relation is an extensive process of communication to establish or
continue the constructive relations between the organization and its stakeholders
or society.
• According to Public Relations Society of America (PRSA): public relation is
help the organization and its publics to relate each other to the benefits of both.
• According to Indian Institute of Public Relations, "Public relations practice is the
planned and sustained effort to establish and maintain good will and mutual
understanding between organization and its public.

Types of Public Relations
• The principal tools used by public relation campaign are as follows:
• 1. Press., Radio the and job of TV/Media Relations: PR and media relations principally
undertake the job of communicating or declaring about an organization and its product
through various media like radio, TV, newsletters, newspapers, magazines and internet.
• To generate and gather media coverage, PR executives present particular stories about
organizations, their goods and services and the concerned spokesperson/authority, with the
help of media.
• 2. Media Tour: Media tour helps in advertising and promotion of new and innovative
products. It is a process where a spokesperson of an organisaton visits all major cities to
launch a new product. The spokesperson participates in radio and television talk shows and
organizes interview sessions with different media (print as well as internet) reporter. Public
influencer like bloggers are also invited in interview sessions.
• 3. Newsletters:

• 5. Sponsorships: Association with a specific group or activity enables the
organization to build a positive image and brand acceptance. The sponsor, who
helps the marketer to accomplish its goals, reaches target audience and is in
accordance with the financial budgets of organisation, should be selected by the
marketer.
• Starting from the local institution level (like theatre or art centre) to the level of
Olympics, various local, regional, national and international sponsorship options are
available. Many organisations striving for sponsorships, furnish data on various
levels, comprising of details about the audience which is part of the event, level of
exposure, signage, printed T shirts. public declarations, other occasions, etc.
• 6. Employee Communications and Relation: Several organisations exchange
information on a uniform basis with their employees. Several ways are Used to be in
contact with the employees like printed and online newsletters, emails, intranet, etc.
Large scale organisations have the public relations department functioning
simultaneously with human resource department to establish better communication
system with the employees.

• 7. Website Development: Website has been a useful tool for marketers to build
relationship with the target consumers. Website development has been an area,
which consumes lot of time and requires technical expertise.
• 8. Market Monitoring: Organisations should keep a close watch on conversations
taking place on various blogs, social media, chat corners, public messaging sites,
forums, etc., and also on content or conventional print and broadcast media. In case
of any negative remarks and wrong information being propagating about products,
the marketers should be quick in replying to such issues before they get
unmanageable due to latest technology avenues.
• 9. Customer Service: An organization's customer service department provides
customers the necessary assistance or service before, throughout as well as alter a
purchase.
• According to Jamier L. Scott, "Customer service is a Series of activities designed to
enhance the level of customer satisfaction, i.e., the feeling that a product or service
has meet the customer expectation".

Public Relation Strategies in Pharmaceutical
• A well-defined public relation strategy is beneficial for every company. Pharmaceutical industry may
use following public relation strategies:
• 1) Offer Free or Discounted Vaccinations: : A pharmaceutical provide free vaccination for elderly
people and families who can not afford vaccination fees. The company must plan the event in advance
and spread the information about the event by the use of advance and press and newspaper.
• 2. Donate Time and Resources: : Pharmaceutical company should donate non-prescription
medicines to healthcare provider and clinics. On hand, a the other firm should maintain donation
records, time spent by staff in health care services, and the amount of money contributed as donation.
• 3. Inform the Public: A pharma company should share some healthcare information with the general
public. They may use social media to provide some healthcare tips to customers and other public.
• 4. Keep an Open Line to the Press: Pharmacy industries should interact press in order to inform
about new product, new services, any changes or renovations in stores. Pharma company should hire
formal representatives who write articles on local publications.

Limitations of Public Relations
• Few limitations of public relations are as follows:
• 1 May not Appear in Media: The different communication vehicles of public relations
may not be featured in media, particularly those which are to be scrutinized by media
personnel.
• 2) Incapable to Link Messages: The messages given by PR communication mechanisms
are not linked with the organisation even if those being heard, or read by the public.
• 3) Fail to Achieve the Objectives: These tools can fail short of the expectations or goals
set, for which they were formulated by the organization.
• 4) Brief Life: These tools have a brief life, as for having desired impact on the target
audience, frequent changes are made though providing new and better information.
• 5) Incapable of Changing Perception: Altering the perception of potential customers
about a particular product or service or any other business dealt by he organisation is quite
complicated. Number of communication tools need to be used for a considerable amount
of time in order to change the perceptions of consumers.

Pharma promotion strategies and budgeting

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Pharma promotion strategies and budgeting

Similar to Pharma promotion strategies and budgeting (20)

Recently uploaded

Recently uploaded (20)

Pharma promotion strategies and budgeting