Pharmaceutical Industry is regulated by the production, distribution, selling and the marketing of the products or services which directly or indirectly includes medical, diagnostic and healthcare.It is regulated by economical, political and administrative authority to manage at all levels. So, the industry is governed by both the public and private sector. Therefore innovation is done in various pharma stakeholder and is needed in chronic and acute therapeutic segment. For more details please visit www.iicecollege.com

1. Critical Analysis of Innovative Marketing Practices for
Optimization in Selected Pharmaceutical Industry
A THESIS
Submitted for the Award of Ph.D. degree of
PACIFIC ACADEMY OF HIGHER EDUCATION
AND RESEARCH UNIVERSITY
in the
Faculty of Management Studies
By
Ruchi Sharma
Under the Supervision of
Prof. Ashok Kumar Jetawat
FACULTY OF MANAGEMENT STUDIES
PAHER UNIVERSITY
UDAIPUR (Raj) – 313001
2014 1

2. Innovative Marketing Practices for
Pharmaceutical Industries
Pharmaceutical Industry is regulated by the production,
distribution, selling and the marketing of the products or services which
directly or indirectly includes medical, diagnostic and healthcare.
It is regulated by economical, political and administrative
authority to manage at all levels. So, the industry is governed by both the
public and private sector. Therefore innovation is done in various
pharma stakeholder and is needed in chronic and acute therapeutic
segment.
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3. Indian Pharmaceutical Industry
• The Indian Pharmaceutical industry is divided in the organized and
unorganized segments with more than 10,000 manufacturers.
• It manufactures 23% bulk drugs that are active pharmaceutical
ingredient and 77% formulations.
• Institutional clients include government hospitals, Indian defense
service and private hospital so the scope of strategies is not limited to
private companies but has been also done in the public pharmaceutical
sectors.
• Challenges which needs to be met are dual disease burden, lack of
infrastructure and manpower.
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4. Objectives
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5. Development in Public Healthcare
• The Government has launched the National Rural Health Mission in
2005 to provide healthcare services to people and has increased the
budget on healthcare to 2-3 per cent of GDP from 0.9 per cent of
GDP in 2012.
• Practices like setting feasible and Good Laboratory Practices,
Biological Laboratories in Public-Private Partnership Mode are
being planned by the government.
• Besides this Government has initiated various PPP projects like
Yashaswini Scheme, introduction of mobile health services in Tamil
Nadu etc.
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6. Development in Private Sector
• In private sector, too there has been vast improvement done to provide
the customer that is the patient with affordable, accessible and
economical quality services to rural and urban masses.
• Few actions have also been taken like training and educating the
healthcare staff which include nurses, physician and related person.
• Interventions like encouraging and extending CSR in cross functional
formats are exchange programs, short stay certifications in areas like
hospital administration, quality controls, specialized nursing care like
intensive care and operation theatre.
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7. Healthcare Industry Breakup
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50%
10%
15%
25%
Percentage of Various Sectors
Hospital
Pharma
Diagnostic
Insurance and Medical equipment

8. Research Design
• Our research was exploratory in nature. Both quantitative and
qualitative research was conducted.
• Analysis of responses of physician and medical representative was
a part of qualitative research which helped in collecting
quantitative data so structured questionnaire was prepared to
collect primary information.
• The data were collected from both primary and secondary
sources. During our primary research, two questionnaires were
prepared i.e. appendix 5 and appendix 6.
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9. Sampling Procedure and Size
A convenient sample of two different groups was selected from
Udaipur, Jaipur and NCR region as follows:
Sample Size
Medical Representative 369
Physician 100
The Sample Size of Physician is small due to few limitations.
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10. Medical Representative's Profile
Criteria Number
Age Group
0-30 70
30-40 82
40-50 127
More than 50 90
Total 369
Gender Group
Male 277
Female 92
Total 369
Qualification
B.A. 70
B. Com 82
B. Pharma 127
MBA 90
Total 369
Geographical Area
Bhiwadi 70
Gurgaon 82
Udaipur 127
Jaipur 90
Total 369 10

11. Physician Profile
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Criteria Number
Age Group
0-30 12
30-40 28
40-50 35
More than 50 25
Total 100
Gender Group
Male 60
Female 40
Total 100
Geographical Area
Gurgaon 60
Udaipur 40
Total 100

12. Respondent Sample Profile of Medical Rep.
Name of the Pharmaceutical
Company Respondent
BIOCON 86
PFIZER 98
IDPL 87
CIPLA 98
Total 369
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13. Respondent Sample Profile of Physician
Name of the Hospital Respondent
FORTIS 20
MEDANTA 15
MAA GAYATRI 15
OTHERS 50
Total 100
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14. Percentage of Total Responses Received from
Pharma Industry
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15. Percentage of Total Responses Received from
Hospitals
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16. Contributions of Individual Factors for
Pharmaceutical Marketing
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17. Contributions of Individual Factors for
Pharmaceutical Marketing
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18. Marks of Different Ranks
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Different Ranks Weightage Marks
Rank 4 Strongly Agree 4
Rank 3 Agree 3
Rank 2 Disagree 2
Rank 1 S. Disagree 1

19. List of Individual Factors for Pharmaceutical
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Marketing:
S. No. List of Individual Factors Total Score
1 Promotional Measures 330
2 Unethical Standard 327
3 Use of Technology 323
4 Fastest Growing 319
5 Different Marketing
Strategy
308
6 Non Conventional
Methods
263
7 Medical Ethics 259
8 MNC as Challenge 222

20. Chi Square Test for Awareness Level of Medical Rep.
20
S. No. Hypothesis
Result @ 5% level
Ho 1 Awareness of promotional tools in pharmaceutical
marketing is independent of gender Rejected
Ho 2 Level of implementation of pharmaceutical marketing
in private sector is independent of qualification Accepted
Ho 3 Level of positive attitude towards innovation in
private pharmaceutical sector is independent of age Accepted
Ho 4 Level of positive attitude towards innovation in public
pharmaceutical sector is independent of gender Accepted
Ho 5
Level of awareness of promotional strategy mitigating
corruption in pharmaceutical sector is independent of
geographical area.
Accepted
Ho 6
Level of employee improvement in performance
towards private pharmaceutical sector is independent
of geographical area.
Accepted
Ho 7
Level of employee improvement in performance
towards public pharmaceutical sector is independent
of age .
Rejected

21. Chi Square Test for Awareness Level of Physician
21
S. No. Hypothesis
Result @ 5% level
Ho 8
Extent of agree level that India’s pharmaceutical industry is one of
the fastest growing segments of the Indian economy is independent of
gender.
Accepted
Ho 9
Level of marketing strategy of the pharmaceutical industry should
be different from the marketing strategy in other industrial segments
is independent of age.
Accepted
Ho 10
Level of awareness of pharmaceutical companies resort to
promotional measures for selling their products is independent of
age.
Accepted
Ho 11 Unethical standards exist in the promotion of pharmaceutical
products in India is independent of gender. Accepted
Ho 12
Entry of multinationals is a major challenge to the domestic players
in the pharmaceutical market and are they ready to face the
challenges of the foreign players is independent of area.
Accepted
Ho 13 Medical ethics as a major factor in the new distribution channel of
marketing is independent of area. Accepted
Ho 14 Non-conventional marketing methods are effective methods of
pharmaceutical marketing in the present ages independent of area. Accepted
Ho 15
Technology utilization and innovative distribution channels will help
in marketing of pharmaceutical products in India is independent of
gender.
Rejected

22. Findings
• Various domestic companies are competing with the foreign
pharmaceutical firms.
• Pharmaceutical marketing is taught from grass root level to all
stakesholders so it shows uniformity in there implementation level.
• Males were more aware about the promotional strategies than
females.
• Price approval mechanism takes 6-8 weeks.
• People suggests that the public awareness should be enhanced.
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23. Related Issues
• Intense competition leads to unethical practices.
• Lack of knowledge affects the strategies.
• Varying customer perception leads to huge deviations.
• High attrition rate of the sales personnel occur.
• Cost affects the production and marketing strategy.
• Time affects business value at medical representative level.
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24. Conclusion
• We analyzed the performance of various pharmaceutical companies
working in few regions of Rajasthan and NCR on the basis of three
aspects viz. marketing, human resource and technology.
• Lack of general awareness among people regarding the healthcare
services. Very few people are aware of the services provided by
pharmaceutical firms. Thus, lack of marketing measures makes the
efforts inefficient.
• Various stakesholders are equally responsible for drug promotion.
Therefore proper regulations help in lowering cost and providing the
masses with best medications.
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25. Future Potential & Suggestive Framework
• Rational use of medicine can be done by pharmaceutical firms.
• Marketing of drugs should be done by providing the physician with
informative ideas about all drugs related to product.
• Proper control on promotion is required and planning to improve its
system so that all the documents can be registered and be returned
within time and thereby saving the time.
• Access to information by every stakesholder can play very important
role in processing, marketing and prescribing drugs.
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26. Future Potential & Suggestive Framework
• It is important to find the key stakesholders which will help in
better communication and can bring consistency in their services
thereby reducing loss and dissatisfaction among people.
• The internal, external and interactive dimensions should be
considered by the pharmaceutical firms.
• Companies can create differentiation by use of technology and
innovations. Senior manager should be more friendly with the
employees.
• Market should be analyzed so proper use of ICT is required. So
Pharmaceutical community should create online community so as
to get right feedback.
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27. Thank you!
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