The document outlines strategies and methodologies for effective product management, focusing on market segmentation, analysis, positioning, and product development. It highlights the importance of identifying customer needs, maintaining competitive edge, conducting SWOT analysis, and employing varied marketing strategies to optimize market penetration and development. Additionally, it details the promotional tactics and considerations necessary for successful sales presentations and market positioning.

1. Training on
Product Management

2. Market Segmentation
 Market Analysis
 Positioning
Outline
 Product Profile
 SWOT
 Strategy

3. What Is A Segment
A customer group having
Similar buying needs
And/or
Similar reactions to what product
offers

4. Useful Ways To Segment Markets
Geographically
Regions, cities, urban/rural
Demographically
Age, sex, income group, occupation, educational level
Disease
Type, severity, acute, chronic recurrent
Doctor
Specialty, place of practice, age group affiliation,
educational background

5. How To Segment
 Example
Patients of all ages suffering from acute URTI

6. Why Segment
Identifies target group, customer needs
Efficient way of using scarce resources
Creates strong product image to offset
competition

7. A Segment Must Be
Measurable: Potential + Results
Accessible: Via promotion resources, cost effective
Substantial: Large enough Financial Objectives)
Homogenous: Customers with sufficiently similar needs

8. Important Considerations In Segmentation
Trends of segment
Identification of existing unsatisfied needs

9. Potential Drawbacks Of Market Segmentation
Tunnel Vision - Losing track of overall market evolution
• Acceptance + Execution by sales force
• Requires market data

10. Market Analysis
Quantitative questions
The trend of the market
The historical sales trend of your
product/competitive products
The relative position of the competitors

11. Market Analysis
Qualitative questions
Structure of the market
Competitiveness (fragmented vs concentrated)
Price sensitivity
Market needs
Any unmet needs/opportunities
Competitors
Current/new
Opportunities & threats

12. Product Positioning
What are the
NEEDS of
my customer
WHAT
BENEFITS/COMPETITIVE
EDGE
Does my product have?
WHAT product
FEATURES
substantiate
these claims

13. Product Positioning Analysis
 Examples of product attributes for positioning and
mapping
Dosage versus convenience
Price versus severity of medical conditions
Price versus dosage regimen
Efficacy versus safety
Side-effect profile versus efficacy
Duration of action versus onset of action

14. Product Positioning Analysis
 Applications
New product launches
When market share is threatened
Changing population of market segment
Changing market needs

15. Product Positioning Analysis
Product positioning must be reviewed
periodically, at its different life cycle
Comparative positions of products
must be the result of MR findings, not
the perceptions of PMs

16. Product Profile Checklist
Target indicators
Target doctors
Dosage recommendation
Presentation, strengths and pack sizes
Key advantages & disadvantages
(Efficacy, contra-indicators, side
effects/safety, patient convenience, etc.)

17. Product Profile Checklist
Product profile
Main indications
Main side effects
Contra-Indications
Major Advantages
Major Disadvantages
Average Daily dose
Presentation
Target doctors

18. INFORMATION REGARDING THE MAIN COMPETING PRODUCTS
PRODUCT CHARACTERISTICS
Active ingredient(s)
Main Indications
Main Side Effects
Contra-Indications
Major Advantages
Major Disadvantages
Best Selling Pack Sizes
Average Daily Dose
Cost of Average Daily Dose
Sales in $ (’000)
Market Share
Sales Trend (3 yrs)
Product Profile Checklist

19. SWOT Analysis
A technique combining all elements to arrive at a
strategy, tactics and objectives
Strengths
Weakness
Of your company
(or product)
Opportunities
Threats
In the
market/
environment

20. SWOT Analysis
Strengths
Good side-effect profile
Good efficacy
Good local and international trail program
Support from HQ
New chemical entity
Variety of presentations

21. SWOT Analysis
Weakness
Company has limited experience here
Limited comparative data
Seen more as a tranquilizer than as antiemetic
Limited resources

22. SWOT Analysis
Opportunities
Medics aware of benzodiazepine problem
Market decline halted in tranq. Segment
Premium price acceptable in tranq. Market
Future product development
Vale growth

23. SWOT Analysis
Threats
Strong competition
Dominant brands in both segments
2 new competitor products soon

24. Opportunities & Threats
 From OUTSIDE
Market segment
Environment
Few competitors
From INSIDE
Company
Products

25. Opportunities & Threats
Market segment
High growth rate
High level of customer interest
Large segment size
High degree of acceptance
High-untapped patients
Low level of price sensitivity

26. Opportunities & Threats
Environment
Good economic growth
Few government regulations
Little adverse public opinion
Active consumer action

27. Opportunities & Threats
Few competitors
No new products
Weak sales team
Poor marketing skills
Little promotional activity
Poor promotional mix
Large product range
Poor company image

28. Opportunities & Threats
Company
Excellent image
Large size
Adequate promotion budgets
Good R & D products
Effective sales force
Well-trained sales force
Good management/employee rapport
Excellent customer service
Excellent distribution

29. Opportunities & Threats
Products
Very reliable
Highly efficacy
Highly acceptable by opinion leaders
Convenient packaging
Convenient dosaging
Acceptable taste
Minimal side effects
High market share
Acceptable pricing

30. Definitions Of Terms Used
Concepts Contents
What you need to be achieve, which must be:
- Timed
- Measurable
- Desirable
- Realistic
How you intended to achieve your objective:
- Target audience
- Key product features/ benefits you will stress
- The segment you will attack
Actions will take or the methods you will use to achieve the
strategy, i.e. promotion policy
Strategies
Road
Objectives
Destination
Tactics
Vehicle

31. Market Penetration Strategy
Increase sales & market share in existing segment with
existing product
Examples of tactics
 Doubling call frequency on A-class doctors
 More A.V. meetings with specialists
 Goods on consignment to pharmacies

32. Market Development Strategy
Increase sales in new markets with existing products
Examples of tactics
 Promote to another group (specialists to GPs)
 Promote new indications to reach different group of patients
 OTC to Rx Switch
 Rx to OTC Switch

33. Product Development Strategy
Introducing new or improved products, line extension to an
existing market segment.
Examples of tactics
 Develop new product features to offer new benefits or
minimize/ eradicate existing product problems
 Create high quality version of existing product
 Modifying pack sizes

34. Diversification
Entering new market with a completely new product
Examples of tactics
 New product in a new therapeutic class area
 New product line in a related or non-pharma industry

35. Strategy Approach
Undifferentiated Marketing
Going after large part of market to get at as many
prescribes for as many patients as possible
Concentrated Marketing
Going after one party of segment alone
Differentiated Marketing
Going after several defined markets, with tailored
versions for each segment

36. Product Strategy Statement
A product strategy statement gives a precise direction as to
how you will achieve your objectives
3 questions to ask
To concentrate on the URTI market
amongst patients of all ages
Market segment
Which segment?
Statement
Dosage convenience and efficacy
All general practitioners
Product position
Which product position?
Target market
Which target?

37. What Is The Objective Of Promotion
Objective 1
To change the attitudes of target
audience from non-usage to repeated
usage
Objective 2
To generate increased profitable sales

38. Promotion Methods
Sales presentation
Media mix
Journal advertising
Brochures
In-house journals
Direct mail
Symposia
Clinical trials
‘Seeding’ trials
Exhibition
Public/professional services
Others

39. Sales Presentation
Advantages
Allows complete sales story
Has the greatest impact
Great flexibility for sales person to react
accordingly
Generates vital ‘feedback’

40. Sales Presentation
Disadvantages
A high-cost element; fixed cost too
A limited resource
Not always readily available
Slow: Restricted access of targets and physical
ability to meet
‘Selling message’ may be inconsistent

41. Sales Presentation
Basic questions to ask before using the sales force
Is material supportive to the personal presentation
Is the message logical, manageable and suitable
Is sales technique well understood and used
Is product knowledge good

42. Sales Presentation
Comments
Concentrate on a message which meet objectives
Concentrate on neutralizing weakness, reinforcing
strengths
Sales force be trained in usage, objection handling
and closing
Material flexible to meet different situations

43. Promotion Material
Advantages
Adds ‘visual’ power to sales person’s words
Samples allow doctor to try product
Complements the sales visit

44. Promotion Material
Disadvantages
If not practical and well designed, it is very
costly
If it is not seen as practical, it will not be used
It has no effect without personal interpretation

45. Promotion Material
Basic questions to ask before using
Does the material support the promotion objective
It is absolutely necessary
Is it too much, too little, too many or too few
Will the sales person use it; does it help or hinder him
Will it have a positive impact on the target audience

46. The Buying Process
Unawareness
Existence of product
Awareness
Succinct summary
Interest
Phase of reasoning
Evaluation
Clinical Trails
Trial
Opportunities to use
Usage
Reminders
Repeat Usage

47. Promotion
SALES TO PHARMACY/HOSPITAL
Less wholesalers margin (@ 9%)
SALES TO WHOLESALERS
Less sales tax (@ 9% of 3)
NET SALES EX MANUFACTURER
Less production costs (@ 20%)
GROSS PROFIT
Less selling expenses (field force cost)
Less marketing expenses (field force cost)
Samples, Advertising, Mailings, Reps. Detailing aids/literature,
Gifts Congresses, exhibits, symposia, Doctor meetings,
Audio visual/films, Market research
Less administrative overheads (@ 16% of net sales ex manufacturer)
NET PROFIT (OR LOSS) BEFORE TAX % of net sales
CUMULATIVE PROFIT BEFORE TAX

48. Executive Summery
Key features
Environmental, Market Situation, Product review
Product objectives
Financial/Marketing, Short term/Long Term
Product strategy
Segment, Position, Target Market, Product Priorities, Tactics
Promotion
Strategy, Mix, Spending
Specific Market Opportunities, Threats and Trends
Overall Profits
Key Actions
Repackaging/Hire new team/Monitor generic law