Pharmaceutical Marketing
M. BALASUNDARESAN
M.Pharm., 1
Global Pharmaceutical Market
The global continuous pharmaceutical manufacturing
market is expected to reach USD 650.4 Million by 2022
from USD 348.5 Million in 2017, at a CAGR
(compound annual growth rate) of 13.3%. The major
drivers for the market include the advantages of
continuous manufacturing in pharmaceutical processes
such as cost-effectiveness and improved efficiency of
manufacturing and support from regulatory authorities
for the implementation of continuous manufacturing.
2-Aug-17 SMBT COP, Nandi Hills 2
Revenue of the worldwide pharmaceutical
market from 2001 to 2015 (in billion U.S.
dollars)
2-Aug-17 SMBT COP, Nandi Hills 3
Revenue of the worldwide pharmaceutical
market (Continue…)
2-Aug-17 SMBT COP, Nandi Hills 4
# 2001 Share% 2006 Share% 2011 Share% 2016 Share%
1 Glaxo Smithkline 6.90 Pfizer 7.55 Pfizer 6.93 Pfizer 5.56
2 Pfizer 6.72 Glaxo Smithkline 6.30 Novartis 6.05 Novartis 5.25
3 Merck & Co 5.91 Sanofi-Aventis 6.15 Merck & Co 5.29 Roche 4.88
4 Asttrazeneca 4.47 Novartis 4.93 Sanofi-Aventis 5.11 Merck & Co 4.32
5 Aventis 4.40 Roche 4.59 Roche 4.73 Sanofi 4.14
6 Johnson & Johnson 4.14 AstraZeneca 4.45 GlaxoSmithKline 4.56 Johnson & Johnson 4.11
7 Novartis 3.73 Merck & Co 4.24 AstraZeneca 4.22 Gilead Sciences
8 Bristol-Myers
Squibb
3.67 Johnson &
Johnson
4.02 Johnson & Johnson 3.12 GlaxoSmithKline 3.42
9 Pharmacia 3.33 Lilly 2.56 Abbott Labs 2.87 AbbVie 3.15
10 Lilly 3.02 Wyeth 2.48 Lilly 2.81 Amgen 2.69
11 Roche 2.81 Abbott Labs 2.43 Bristol-Myers
Squibb
2.72 AstraZeneca 2.62
12 American Home
Prods.
2.74 Bristol-Myers
Squibb
2.39 Takeda 2.18 Teva 2.37
13 Schering-Plough 2.33 Amgen 2.39 Teva 2.04 Lilly 2.22
14 Takeda 2.29 Bayer 2.21 Amgen 1.96 Bristol-Myers
Squibb
2.17
15 Abbott Labs 2.28 Takeda 1.99 Boeh. Ingelheim 1.80 Novo Nordisk 2.04
58.7 58.7 56.4 52.6
Indian Pharmaceutical Market
● The Indian pharmaceuticals market is the third largest in
terms of volume and thirteenth largest in terms of value.
● India is the largest provider of generic drugs globally with the
Indian generics accounting for 20 per cent of global exports
in terms of volume.
● Presently over 80 per cent of the antiretroviral drugs used
globally to combat AIDS (Acquired Immuno Deficiency
Syndrome) are supplied by Indian pharmaceutical firms.
● The UN-backed Medicines Patent Pool has signed six sub-
licences with Aurobindo, Cipla, Desano, Emcure, Hetero
Labs and Laurus Labs,allowing them to make generic anti-
AIDS medicine TenofovirAlafenamide (TAF) for 112
developing countries.
2-Aug-17 SMBT COP, Nandi Hills 5
Indian Pharmaceutical Market: Size
● The Indian pharma industry, which is expected to grow over 15 percent
per annum between 2015 and 2020.
● The market is expected to grow to US$ 55 billion by 2020, thereby
emerging as the sixth largest pharmaceutical market globally by absolute
size.
● India has also maintained its lead over China in pharmaceutical exports
with a year-on-year growth of 11.44 per cent to US$ 12.91 billion in FY
2015-16.
● Overall drug approvals given by the US Food and Drug Administration
(USFDA) to Indian companies have nearly doubled to 201 in FY 2015-16
from 109 in FY 2014-15.
● The country accounts for around 30 per cent (by volume) and about 10
per cent (value) in the US$ 70-80 billion US generic market.
● India's biotechnology industry comprising bio-pharmaceuticals,bio-
services, bio-agriculture, bio-industry and bioinformatics is expected grow
at an average growth rate of around 30 per cent a year and reach US$
100 billion by 2025.
2-Aug-17 SMBT COP, Nandi Hills 6
Indian Pharmaceutical Market: Investments
● The Union Cabinet has given its nod for the
amendment of the existing Foreign Direct Investment
(FDI) policy in the pharmaceutical sector in order to
allow FDI up to 100 per cent under the automatic
route for manufacturing of medical devices subject to
certain conditions.
● The drugs and pharmaceuticals sector attracted
cumulative FDI inflows worth US$ 14.53 billion
between April 2000 and December 2016, according to
data released by the Department of Industrial Policy
and Promotion (DIPP).
2-Aug-17 SMBT COP, Nandi Hills 7
Some of the major investments in the Indian
pharmaceutical sector are as follows
●
●
●
●
●
●
●
●
●
Aurobindo Pharma has bought Portugal based Generis Farmaceutica SA, a generic drug company, for
EUR 135 million (US$ 144 million).
Sun Pharmaceuticals Industries Limited plans to acquire 85.1 per cent stake in Russian company
Biosintez for US$ 24 million for increasing its presence in Russia through local manufacturing capability
.
India’s third largest drug maker Lupin Limited plans to file its first biosimilar Etanercept for approval in
Japan,world’s second largest drug market, in 2017.
Cipla Limited plans to invest around Rs 600 crore (US$ 90 million) to set up a biosimilar manufacturing
facility in South Africa for making affordable cancer drugs and growing its presence in the market.
Rusan Pharma, a firm which specialises in de-addiction and pain management products, plans to invest
Rs 100 crore (US$ 15 million) in a R&D centre and a manufacturing unit in Kandla, located in Kutch
District in Gujarat.
Dr Reddy's Laboratories, one of the major pharmaceutical companies of India, has entered into a
strategic collaboration agreement with Turkey-based TR-Pharm, to register and subsequently
commercialise three biosimilar products in Turkey.
Emcure Pharmaceuticals has acquired Canada's International Pharmaceutical Generics Ltd and its
marketing arm Marcan Pharmaceuticals in order to boost its global expansion drive.
Glaxosmithkline Pharmaceuticals has started work on its largest greenfield tablet manufacturing facility
in Vemgal in Kolar district, Karnataka, with an estimated investment of Rs 1,000 crore (US$ 150
million).
Several online pharmacy retailers like PharmEasy, Netmeds, Orbimed, are attracting investments from
several investors, due to double digit growth in the Rs 97,000 crore ( US$ 14.55 billion) Indian
pharmacy market.
2-Aug-17 SMBT COP, Nandi Hills 8
I
ndian Pharmaceutical Market:
Government I
nitiatives
● The Government of India unveiled 'Pharma
Vision 2020' aimed at making India a global
leader in end-to-end drug manufacture.
● Approval time for new facilities has been
reduced to boost investments. Further, the
government introduced mechanisms such as
the Drug Price Control Order and the
National Pharmaceutical Pricing Authority to
deal with the issue of affordability and
availability of medicines.
● Mr . Ananth Kumar, Union Minister of
Chemicals and Petrochemicals,has announced
setting up ofchemical hubs across the
country, early environment clearances in
existing clusters,adequate infrastructure,and
establishment of a Central Institute of
Chemical Engineering and Technology.
2-Aug-17 SMBT COP, Nandi Hills 9
Some of the major initiatives taken by the government to
promote the pharmaceutical sector in India are as follows
2-Aug-17 SMBT COP, Nandi Hills 10
●
●
●
●
●
●
The Government of India plans to set up around eight mini drug-testing laboratories across
major ports and airports in the country, which is expected to improve the drug regulatory
system and infrastructure facilities by monitoring the standards of imported and exported
drugs and reduce the overall time spent on quality assessment.
India is expected to rank among the top five global pharmaceutical innovation hubs by 2020,
based on Government of India's decision to allow 50 per cent public funding in the
pharmaceuticals sector through its Public Private Partnership (PPP) model.
Indian Pharmaceutical Association (IPA), the professional association of pharmaceutical
companies in India, plans to prepare data integrity guidelines which will help to measure and
benchmark the quality of Indian companies with global peers.
The Government of India plans to incentivise bulk drug manufacturers, including both state-run
and private companies, to encourage ‘Make in India’ programme and reduce dependence on
imports of Active Pharmaceutical Ingredients (API), nearly 85 per cent of which come from
China.
The Department of Pharmaceuticals has set up an inter-ministerial co-ordination committee,
which would periodically review, coordinate and facilitate the resolution of the issues and
constraints faced by the Indian pharmaceutical companies.
The Department of Pharmaceuticals has planned to launch a venture capital fund of Rs 1,000
crore (US$ 149.11 million) to support start-ups in the research and development in the
pharmaceutical and biotech industry.
Marketing and Marketing Concept
● Marketing is defined in simple words as ‘the action or business of
promoting and selling products or services, including market research and
advertising.’
● This Marketing concept proposes that in order to satisfy the organizational
objectives, an organization should anticipate the needs and wants of
consumers and satisfy these more effectively than competitors.
● There are 6different conceptsof marketing-
◦ Production Concept
◦ Product Concept
◦ SellingConcept
◦ MarketingConcept
◦ Societal Marketing concept
◦ Holistic MarketingConcept
2-Aug-17 SMBT COP, Nandi Hills 11
The Scope of Marketing
● Study of Consumer Wants and Needs
● Study of Consumer behavior
● Product Planning and development
● Branding
● Packaging
● Channels of Distribution
● Pricing Policies
● Sales Management
● Promotion
● Finance
● After Sales services
2-Aug-17 SMBT COP, Nandi Hills 12
Difference between Marketing and
Selling
2-Aug-17 SMBT COP, Nandi Hills 13
MARKETING
Focuses n customer’s needs
SELLING
Focuses on Seller’s needs
Customer Enjoys Supreme importance Product enjoys supreme importance
match products with markets
Product Planning and development to High pressure selling to sell gods already
produced
Converts customer’s needs into products Converts products into cash
Profits through sales volume
Profits through customer satisfaction
Consumers determine the price; price
determines costs
Cost determines the price
It assumes: “Let the Caveat Vendor”
(seller beware)
It assumes: “Let the Caveat Emptor”
(buyer beware)
Marketing Mix
2-Aug-17 SMBT COP, Nandi Hills 14
● The early 1960s, Professor Neil Borden at Harvard
Business School identified anumber of company
performance actions that can influence the consumer
decision to purchase goods or services. Borden
suggested that all those actions of the company
represented a‘Marketing Mix’. Professor E.Jerome
McCarthy, at the Michigan State University in the early
1960s,suggested that the Marketing Mix contained 4
elements:
◦ product,
◦ price,
◦ Place,
◦ promotion
Distribution Channel
● A distributionchannelis achain of
businesses or intermediaries through which a
good or service passes until it reaches the end
consumer. It can include wholesalers, retailers,
distributors and even the internet itself.
2-Aug-17 SMBT COP, Nandi Hills 15
Horizontal Marketing System
2-Aug-17 SMBT COP, Nandi Hills 16
● A horizontal marketing system is a distribution
channel arrangement whereby two or more
organizations at the same level join together for
marketing purposes to capitalize on anew
opportunity.
● ITC Ltd’s partnership with the Khadi and
Village Industries Commission to source and
distribute the agarbatis (‘Mangaldeep’), safety
matches (‘AIM’) signifies a successful working of
a horizontal marketing system.
Vertical Marketing System
2-Aug-17 SMBT COP, Nandi Hills 17
● A vertical marketing system (VMS) is one in which the
main members of a distribution channel—producer,
wholesaler, and retailer—work together as a unified
group in order to meet consumer needs.
● There were two types of VMS
◦ Corporate Vertical Marketing System
◦ Contractual Vertical Marketing System
Wholesaler Sponsored Voluntary Chains
Retailer Co-operatives
Franchise Organization
◦ Administered Vertical Marketing System
Promotion
● Promotion is a term used frequently in marketing
and is one of the market mix elements.
● ‘Promotions refer to the entire set of activities,
which communicate the product,brand or
service to the user.’
● Promotion includes elements like: advertising,
public relations,social media marketing,email
marketing,search engine marketing,video
marketing and more.
2-Aug-17 SMBT COP, Nandi Hills 18
Objective of Promotion
● Promotion leads to behavior modification and
also modifies behavior and thought.e.g.
persuading to drink Slice rather than Maaza. It
reinforces existing behavior. e.g. persuading to
continue Slice once customer began to take.
Other Objectives are to inform customer
about product and specifically to remind
product.
2-Aug-17 SMBT COP, Nandi Hills 19
Role of Promotion
Promotion helps marketers to communicate information
potential customers. This information could be about the
product existence (awareness), value and benefits offered
by the product i.e. utility well design promotional strategy
is extremely crucial for brand building and positioning. In
fact communication or promotion is at the centre stage in
brand positioning and brand building activities. The
promotional elements help marketer to attract, persuade,
urge and remind customers of the companies’brand.
Effective promotions prove helpful in product
differentiation and also help counter competition.
2-Aug-17 SMBT COP, Nandi Hills 20
Techniques of Promotion
2-Aug-17 SMBT COP, Nandi Hills 21
● Dealer Promotion
◦ Advertising Material, Store demonstrations, Special displays and shows,
Dealer contests,Dealer reward.
● Consumer Promotion
◦ Coupons, Price - off offer
, Money refund offer
, Samplings, Trading
Stamps,Factory - in - pack- Premium.
● Sales-Force Promotion
◦ Sales meeting, Sales rally
, Sales letter
, Bonus, Gift.
● Internal organization Promotion
◦ Approval of promotional philosophy, Product development for
marketing,Co-operation with sales department
● Industrial Promotion
Promotion Mix
● Advertising
● Sales Promotion
◦ Consumer Sales Promotion Techniques
◦ Trade Sales Promotion Techniques
● Public Relations (PR)
● Personal Selling
● Publicity
● Direct Marketing
2-Aug-17 SMBT COP, Nandi Hills 22
Personal Selling
Steps in Personal Selling
2-Aug-17 SMBT COP, Nandi Hills 23
Professional Sales Representative
● Sales representatives are the persons who sell
retail products, goods and services to
customers.Sales representatives work with
customers to find what they want,create
solutions and ensure a smooth sales process.
● Moreover professional sales representatives
like Medical Representatives (MR) are the key
point of contact between pharmaceutical and
medical companies and healthcare
professionals.
2-Aug-17 SMBT COP, Nandi Hills 24
Professional Sales Representative Duties
2-Aug-17 SMBT COP, Nandi Hills 25
● Include:
◦ Presenting, promoting and selling products/services
using solid arguments to existing and prospective
customers
◦ Performing cost-benefit and needs analysis of
existing/
potential customers to meet their needs
◦ Establishing, developing and maintaining positive
business and customer relationships
Detailing
● Pharmaceutical detailing is a marketing
technique used by pharmaceutical companies to
educate a physician about a vendor's products
in hopes that the physician will prescribe the
company’
s products more often.
Qualities for Professional Sale
Representative:
•Medical Knowledge
•Sales Ability
•Autonomy (independent)
•Human Relations
2-Aug-17 SMBT COP, Nandi Hills 26
Criteriafor RecruitingaPharmaceutical
SalesRepresentative
2-Aug-17 SMBT COP, Nandi Hills 27
Check List
Age
Education
Experience
Criteria
Between 21 and 25 years.
Depending upon the level of technical knowledge required for
promoting products.
A fresh graduate with good scholastic record and extracurricular activities.
In the case of an experienced candidate look for his accomplishment, tract
record, etc.
Appearance
Manners
Voice and Expression
Reactions
Drive
Intelligence
Interest
A pleasing personality.
Good manners.
There should be clarity of voice, modulation and grammar.
Alertness, quickness of response.
Ability to stimulate, enthuse others and self-assurance.
Comprehension, reasoning ability, keenness and smartness.
Sincerity of ambitions and personal goals, interest in other people
Advertising
● Adverting is one element of the promotion mix, but it often
considered prominent in the overall marketing mix design. Its high
visibility and pervasiveness made it as an important social and
encomiatopic in Indian society.
● The purpose ofadvertising is to;make customers aware of your
product or service,convince customers that your company's
product or service is right for their needs, create a desire for your
product or service, enhance the image of your company, announce
new products or services, reinforce salespeople's messages, make
customers take the next step (ask for more information, request a
sample, place an order, and so on); and draw customers to your
business. Advertisers influence our emotions by techniques that
include stereotyping and targeting the audience according to who
we are. Emotions are influenced by things such as this our
occupation, beliefs, personality, self esteem, lifestyle, relationships,
friends, how we look and what we wear
.
2-Aug-17 SMBT COP, Nandi Hills 28
Advertisement Trade
● Advertising spends in India are expected to grow 15.5% year on
year to Rs 57,485 crore in 2016, according to estimates from
media buying agency GroupM (Medianama). Of this, Digital
Advertising spends will account for Rs 12.7% of total spends at
around Rs 7,300 crore. Digital is the third highest category of
advertising spends, albeit lagging far behind TV (Rs 27,074 crore,
47.1% of total) and Newspapers (Rs 17,099 crore, 29.9% of total).
Of all the segments, magazines are expected to decline for a third
consecutive year
, down by 14.8% year on year
, and to around 1%
of total advertising spend.
2-Aug-17 SMBT COP, Nandi Hills 29
The 5M’sof Advertisement
2-Aug-17 SMBT COP, Nandi Hills 30
● Deciding on a correct option calls for detailed
analysis aspects like objective behind advertising
(Mission), company’s earmarked budget
(Money),content of communication through
advertising (Message),advertising vehicle
(Media) and impact of advertising
(Measurement). These can be broadly classified
as the five M’
s of advertising.
Classification and Typesof
Advertising
2-Aug-17 SMBT COP, Nandi Hills 31
● Product –Related Advertising
● Public Service Advertising
● Functional Classification
● Advertisingbased on Product Life Cycle
● Trade Advertising
● Advertisingbased on Areaof Operation
● AdvertisingAccordingto Medium
Thank you
2-Aug-17 SMBT COP, Nandi Hills 32

3.1 PHARMACEUTICAL MARKETING & PROMOTION.pdf

  • 1.
  • 2.
    Global Pharmaceutical Market Theglobal continuous pharmaceutical manufacturing market is expected to reach USD 650.4 Million by 2022 from USD 348.5 Million in 2017, at a CAGR (compound annual growth rate) of 13.3%. The major drivers for the market include the advantages of continuous manufacturing in pharmaceutical processes such as cost-effectiveness and improved efficiency of manufacturing and support from regulatory authorities for the implementation of continuous manufacturing. 2-Aug-17 SMBT COP, Nandi Hills 2
  • 3.
    Revenue of theworldwide pharmaceutical market from 2001 to 2015 (in billion U.S. dollars) 2-Aug-17 SMBT COP, Nandi Hills 3
  • 4.
    Revenue of theworldwide pharmaceutical market (Continue…) 2-Aug-17 SMBT COP, Nandi Hills 4 # 2001 Share% 2006 Share% 2011 Share% 2016 Share% 1 Glaxo Smithkline 6.90 Pfizer 7.55 Pfizer 6.93 Pfizer 5.56 2 Pfizer 6.72 Glaxo Smithkline 6.30 Novartis 6.05 Novartis 5.25 3 Merck & Co 5.91 Sanofi-Aventis 6.15 Merck & Co 5.29 Roche 4.88 4 Asttrazeneca 4.47 Novartis 4.93 Sanofi-Aventis 5.11 Merck & Co 4.32 5 Aventis 4.40 Roche 4.59 Roche 4.73 Sanofi 4.14 6 Johnson & Johnson 4.14 AstraZeneca 4.45 GlaxoSmithKline 4.56 Johnson & Johnson 4.11 7 Novartis 3.73 Merck & Co 4.24 AstraZeneca 4.22 Gilead Sciences 8 Bristol-Myers Squibb 3.67 Johnson & Johnson 4.02 Johnson & Johnson 3.12 GlaxoSmithKline 3.42 9 Pharmacia 3.33 Lilly 2.56 Abbott Labs 2.87 AbbVie 3.15 10 Lilly 3.02 Wyeth 2.48 Lilly 2.81 Amgen 2.69 11 Roche 2.81 Abbott Labs 2.43 Bristol-Myers Squibb 2.72 AstraZeneca 2.62 12 American Home Prods. 2.74 Bristol-Myers Squibb 2.39 Takeda 2.18 Teva 2.37 13 Schering-Plough 2.33 Amgen 2.39 Teva 2.04 Lilly 2.22 14 Takeda 2.29 Bayer 2.21 Amgen 1.96 Bristol-Myers Squibb 2.17 15 Abbott Labs 2.28 Takeda 1.99 Boeh. Ingelheim 1.80 Novo Nordisk 2.04 58.7 58.7 56.4 52.6
  • 5.
    Indian Pharmaceutical Market ●The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value. ● India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global exports in terms of volume. ● Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms. ● The UN-backed Medicines Patent Pool has signed six sub- licences with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus Labs,allowing them to make generic anti- AIDS medicine TenofovirAlafenamide (TAF) for 112 developing countries. 2-Aug-17 SMBT COP, Nandi Hills 5
  • 6.
    Indian Pharmaceutical Market:Size ● The Indian pharma industry, which is expected to grow over 15 percent per annum between 2015 and 2020. ● The market is expected to grow to US$ 55 billion by 2020, thereby emerging as the sixth largest pharmaceutical market globally by absolute size. ● India has also maintained its lead over China in pharmaceutical exports with a year-on-year growth of 11.44 per cent to US$ 12.91 billion in FY 2015-16. ● Overall drug approvals given by the US Food and Drug Administration (USFDA) to Indian companies have nearly doubled to 201 in FY 2015-16 from 109 in FY 2014-15. ● The country accounts for around 30 per cent (by volume) and about 10 per cent (value) in the US$ 70-80 billion US generic market. ● India's biotechnology industry comprising bio-pharmaceuticals,bio- services, bio-agriculture, bio-industry and bioinformatics is expected grow at an average growth rate of around 30 per cent a year and reach US$ 100 billion by 2025. 2-Aug-17 SMBT COP, Nandi Hills 6
  • 7.
    Indian Pharmaceutical Market:Investments ● The Union Cabinet has given its nod for the amendment of the existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent under the automatic route for manufacturing of medical devices subject to certain conditions. ● The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 14.53 billion between April 2000 and December 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). 2-Aug-17 SMBT COP, Nandi Hills 7
  • 8.
    Some of themajor investments in the Indian pharmaceutical sector are as follows ● ● ● ● ● ● ● ● ● Aurobindo Pharma has bought Portugal based Generis Farmaceutica SA, a generic drug company, for EUR 135 million (US$ 144 million). Sun Pharmaceuticals Industries Limited plans to acquire 85.1 per cent stake in Russian company Biosintez for US$ 24 million for increasing its presence in Russia through local manufacturing capability . India’s third largest drug maker Lupin Limited plans to file its first biosimilar Etanercept for approval in Japan,world’s second largest drug market, in 2017. Cipla Limited plans to invest around Rs 600 crore (US$ 90 million) to set up a biosimilar manufacturing facility in South Africa for making affordable cancer drugs and growing its presence in the market. Rusan Pharma, a firm which specialises in de-addiction and pain management products, plans to invest Rs 100 crore (US$ 15 million) in a R&D centre and a manufacturing unit in Kandla, located in Kutch District in Gujarat. Dr Reddy's Laboratories, one of the major pharmaceutical companies of India, has entered into a strategic collaboration agreement with Turkey-based TR-Pharm, to register and subsequently commercialise three biosimilar products in Turkey. Emcure Pharmaceuticals has acquired Canada's International Pharmaceutical Generics Ltd and its marketing arm Marcan Pharmaceuticals in order to boost its global expansion drive. Glaxosmithkline Pharmaceuticals has started work on its largest greenfield tablet manufacturing facility in Vemgal in Kolar district, Karnataka, with an estimated investment of Rs 1,000 crore (US$ 150 million). Several online pharmacy retailers like PharmEasy, Netmeds, Orbimed, are attracting investments from several investors, due to double digit growth in the Rs 97,000 crore ( US$ 14.55 billion) Indian pharmacy market. 2-Aug-17 SMBT COP, Nandi Hills 8
  • 9.
    I ndian Pharmaceutical Market: GovernmentI nitiatives ● The Government of India unveiled 'Pharma Vision 2020' aimed at making India a global leader in end-to-end drug manufacture. ● Approval time for new facilities has been reduced to boost investments. Further, the government introduced mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines. ● Mr . Ananth Kumar, Union Minister of Chemicals and Petrochemicals,has announced setting up ofchemical hubs across the country, early environment clearances in existing clusters,adequate infrastructure,and establishment of a Central Institute of Chemical Engineering and Technology. 2-Aug-17 SMBT COP, Nandi Hills 9
  • 10.
    Some of themajor initiatives taken by the government to promote the pharmaceutical sector in India are as follows 2-Aug-17 SMBT COP, Nandi Hills 10 ● ● ● ● ● ● The Government of India plans to set up around eight mini drug-testing laboratories across major ports and airports in the country, which is expected to improve the drug regulatory system and infrastructure facilities by monitoring the standards of imported and exported drugs and reduce the overall time spent on quality assessment. India is expected to rank among the top five global pharmaceutical innovation hubs by 2020, based on Government of India's decision to allow 50 per cent public funding in the pharmaceuticals sector through its Public Private Partnership (PPP) model. Indian Pharmaceutical Association (IPA), the professional association of pharmaceutical companies in India, plans to prepare data integrity guidelines which will help to measure and benchmark the quality of Indian companies with global peers. The Government of India plans to incentivise bulk drug manufacturers, including both state-run and private companies, to encourage ‘Make in India’ programme and reduce dependence on imports of Active Pharmaceutical Ingredients (API), nearly 85 per cent of which come from China. The Department of Pharmaceuticals has set up an inter-ministerial co-ordination committee, which would periodically review, coordinate and facilitate the resolution of the issues and constraints faced by the Indian pharmaceutical companies. The Department of Pharmaceuticals has planned to launch a venture capital fund of Rs 1,000 crore (US$ 149.11 million) to support start-ups in the research and development in the pharmaceutical and biotech industry.
  • 11.
    Marketing and MarketingConcept ● Marketing is defined in simple words as ‘the action or business of promoting and selling products or services, including market research and advertising.’ ● This Marketing concept proposes that in order to satisfy the organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. ● There are 6different conceptsof marketing- ◦ Production Concept ◦ Product Concept ◦ SellingConcept ◦ MarketingConcept ◦ Societal Marketing concept ◦ Holistic MarketingConcept 2-Aug-17 SMBT COP, Nandi Hills 11
  • 12.
    The Scope ofMarketing ● Study of Consumer Wants and Needs ● Study of Consumer behavior ● Product Planning and development ● Branding ● Packaging ● Channels of Distribution ● Pricing Policies ● Sales Management ● Promotion ● Finance ● After Sales services 2-Aug-17 SMBT COP, Nandi Hills 12
  • 13.
    Difference between Marketingand Selling 2-Aug-17 SMBT COP, Nandi Hills 13 MARKETING Focuses n customer’s needs SELLING Focuses on Seller’s needs Customer Enjoys Supreme importance Product enjoys supreme importance match products with markets Product Planning and development to High pressure selling to sell gods already produced Converts customer’s needs into products Converts products into cash Profits through sales volume Profits through customer satisfaction Consumers determine the price; price determines costs Cost determines the price It assumes: “Let the Caveat Vendor” (seller beware) It assumes: “Let the Caveat Emptor” (buyer beware)
  • 14.
    Marketing Mix 2-Aug-17 SMBTCOP, Nandi Hills 14 ● The early 1960s, Professor Neil Borden at Harvard Business School identified anumber of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represented a‘Marketing Mix’. Professor E.Jerome McCarthy, at the Michigan State University in the early 1960s,suggested that the Marketing Mix contained 4 elements: ◦ product, ◦ price, ◦ Place, ◦ promotion
  • 15.
    Distribution Channel ● Adistributionchannelis achain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself. 2-Aug-17 SMBT COP, Nandi Hills 15
  • 16.
    Horizontal Marketing System 2-Aug-17SMBT COP, Nandi Hills 16 ● A horizontal marketing system is a distribution channel arrangement whereby two or more organizations at the same level join together for marketing purposes to capitalize on anew opportunity. ● ITC Ltd’s partnership with the Khadi and Village Industries Commission to source and distribute the agarbatis (‘Mangaldeep’), safety matches (‘AIM’) signifies a successful working of a horizontal marketing system.
  • 17.
    Vertical Marketing System 2-Aug-17SMBT COP, Nandi Hills 17 ● A vertical marketing system (VMS) is one in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a unified group in order to meet consumer needs. ● There were two types of VMS ◦ Corporate Vertical Marketing System ◦ Contractual Vertical Marketing System Wholesaler Sponsored Voluntary Chains Retailer Co-operatives Franchise Organization ◦ Administered Vertical Marketing System
  • 18.
    Promotion ● Promotion isa term used frequently in marketing and is one of the market mix elements. ● ‘Promotions refer to the entire set of activities, which communicate the product,brand or service to the user.’ ● Promotion includes elements like: advertising, public relations,social media marketing,email marketing,search engine marketing,video marketing and more. 2-Aug-17 SMBT COP, Nandi Hills 18
  • 19.
    Objective of Promotion ●Promotion leads to behavior modification and also modifies behavior and thought.e.g. persuading to drink Slice rather than Maaza. It reinforces existing behavior. e.g. persuading to continue Slice once customer began to take. Other Objectives are to inform customer about product and specifically to remind product. 2-Aug-17 SMBT COP, Nandi Hills 19
  • 20.
    Role of Promotion Promotionhelps marketers to communicate information potential customers. This information could be about the product existence (awareness), value and benefits offered by the product i.e. utility well design promotional strategy is extremely crucial for brand building and positioning. In fact communication or promotion is at the centre stage in brand positioning and brand building activities. The promotional elements help marketer to attract, persuade, urge and remind customers of the companies’brand. Effective promotions prove helpful in product differentiation and also help counter competition. 2-Aug-17 SMBT COP, Nandi Hills 20
  • 21.
    Techniques of Promotion 2-Aug-17SMBT COP, Nandi Hills 21 ● Dealer Promotion ◦ Advertising Material, Store demonstrations, Special displays and shows, Dealer contests,Dealer reward. ● Consumer Promotion ◦ Coupons, Price - off offer , Money refund offer , Samplings, Trading Stamps,Factory - in - pack- Premium. ● Sales-Force Promotion ◦ Sales meeting, Sales rally , Sales letter , Bonus, Gift. ● Internal organization Promotion ◦ Approval of promotional philosophy, Product development for marketing,Co-operation with sales department ● Industrial Promotion
  • 22.
    Promotion Mix ● Advertising ●Sales Promotion ◦ Consumer Sales Promotion Techniques ◦ Trade Sales Promotion Techniques ● Public Relations (PR) ● Personal Selling ● Publicity ● Direct Marketing 2-Aug-17 SMBT COP, Nandi Hills 22
  • 23.
    Personal Selling Steps inPersonal Selling 2-Aug-17 SMBT COP, Nandi Hills 23
  • 24.
    Professional Sales Representative ●Sales representatives are the persons who sell retail products, goods and services to customers.Sales representatives work with customers to find what they want,create solutions and ensure a smooth sales process. ● Moreover professional sales representatives like Medical Representatives (MR) are the key point of contact between pharmaceutical and medical companies and healthcare professionals. 2-Aug-17 SMBT COP, Nandi Hills 24
  • 25.
    Professional Sales RepresentativeDuties 2-Aug-17 SMBT COP, Nandi Hills 25 ● Include: ◦ Presenting, promoting and selling products/services using solid arguments to existing and prospective customers ◦ Performing cost-benefit and needs analysis of existing/ potential customers to meet their needs ◦ Establishing, developing and maintaining positive business and customer relationships
  • 26.
    Detailing ● Pharmaceutical detailingis a marketing technique used by pharmaceutical companies to educate a physician about a vendor's products in hopes that the physician will prescribe the company’ s products more often. Qualities for Professional Sale Representative: •Medical Knowledge •Sales Ability •Autonomy (independent) •Human Relations 2-Aug-17 SMBT COP, Nandi Hills 26
  • 27.
    Criteriafor RecruitingaPharmaceutical SalesRepresentative 2-Aug-17 SMBTCOP, Nandi Hills 27 Check List Age Education Experience Criteria Between 21 and 25 years. Depending upon the level of technical knowledge required for promoting products. A fresh graduate with good scholastic record and extracurricular activities. In the case of an experienced candidate look for his accomplishment, tract record, etc. Appearance Manners Voice and Expression Reactions Drive Intelligence Interest A pleasing personality. Good manners. There should be clarity of voice, modulation and grammar. Alertness, quickness of response. Ability to stimulate, enthuse others and self-assurance. Comprehension, reasoning ability, keenness and smartness. Sincerity of ambitions and personal goals, interest in other people
  • 28.
    Advertising ● Adverting isone element of the promotion mix, but it often considered prominent in the overall marketing mix design. Its high visibility and pervasiveness made it as an important social and encomiatopic in Indian society. ● The purpose ofadvertising is to;make customers aware of your product or service,convince customers that your company's product or service is right for their needs, create a desire for your product or service, enhance the image of your company, announce new products or services, reinforce salespeople's messages, make customers take the next step (ask for more information, request a sample, place an order, and so on); and draw customers to your business. Advertisers influence our emotions by techniques that include stereotyping and targeting the audience according to who we are. Emotions are influenced by things such as this our occupation, beliefs, personality, self esteem, lifestyle, relationships, friends, how we look and what we wear . 2-Aug-17 SMBT COP, Nandi Hills 28
  • 29.
    Advertisement Trade ● Advertisingspends in India are expected to grow 15.5% year on year to Rs 57,485 crore in 2016, according to estimates from media buying agency GroupM (Medianama). Of this, Digital Advertising spends will account for Rs 12.7% of total spends at around Rs 7,300 crore. Digital is the third highest category of advertising spends, albeit lagging far behind TV (Rs 27,074 crore, 47.1% of total) and Newspapers (Rs 17,099 crore, 29.9% of total). Of all the segments, magazines are expected to decline for a third consecutive year , down by 14.8% year on year , and to around 1% of total advertising spend. 2-Aug-17 SMBT COP, Nandi Hills 29
  • 30.
    The 5M’sof Advertisement 2-Aug-17SMBT COP, Nandi Hills 30 ● Deciding on a correct option calls for detailed analysis aspects like objective behind advertising (Mission), company’s earmarked budget (Money),content of communication through advertising (Message),advertising vehicle (Media) and impact of advertising (Measurement). These can be broadly classified as the five M’ s of advertising.
  • 31.
    Classification and Typesof Advertising 2-Aug-17SMBT COP, Nandi Hills 31 ● Product –Related Advertising ● Public Service Advertising ● Functional Classification ● Advertisingbased on Product Life Cycle ● Trade Advertising ● Advertisingbased on Areaof Operation ● AdvertisingAccordingto Medium
  • 32.
    Thank you 2-Aug-17 SMBTCOP, Nandi Hills 32