Pharmaceutical market: Quantitative and qualitative aspects; size and composition of the market; demographic descriptions and socio-psychological characteristics of the consumer; market segmentation & targeting. Consumer profile; Motivation and prescribing habits of the physician; patient's choice of physician and retail pharmacist. Analysing the Market; Role of market research.

1. Chapter II
Pharmaceutical Marketing
B. Pharm 8th Semester
Presented By
Roshan Kumar Dubey
Assistant Professor, Department of Pharmaceutics
Unit 1

2. Pharmaceutical Market
• When it comes to marketing, one must have
thorough knowledge about marketing and
market.
• Marketing Research is critical for the
successful sustenance of any product or
industry and Pharmaceuticals are no exception.
• Marketing occupies an important position in
the organization, which is in today's
competition scenario, more consumer-oriented.

3. • Marketing Research is the careful and objective
study of product design, markets and such transfer
activities and physical distribution and
warehousing, advertising and sales management.
- Harry L. Hansen
• Gathering, recording and analyzing of all facts
about problems relating to the transfer and sale
of good and services from producer to
consumer.
- American Marketing Association

4. • Marketing research deals with all the points
concerning various functions of the market like
systematic investigation on products and
services, research on new markets, sales
methods, marketing policies etc.
• This activity of determining and satisfying the
wants in a systematic manner is called as
'marketing research‘.

5. Functions of Marketing Research:
• It helps in exploring new markets and their
demands for the products.
• It helps in estimation of potential demand for a
new product.
• It helps in production planning activity.
• It is useful in improving the effectiveness of
the channels and methods of distribution.
• It helps in getting customer feedbacks for the
products and to do necessary improvements.

6. Qualitative and Quantitative Market
Research
• In today‘s competitive environment, in order
to survive in market, it is very important to
create and maintain image of product in mind
of population.
• Process of market research and method of data
collection is broadly classified into two types
viz. quantitative and qualitative research.

7. • Main objective behind market research is to
obtain information in context with marketing of
product or services and further analysis of same
which will help any company to understand the
market conditions and future of proposed product
or service.
• Market research includes following testing;
Positioning research,
Messaging research
Brand name testing
Concept testing
Ad testing

8. Quantitative research
• Quantitative research is widely used in
pharmaceutical marketing to gather numerical
data and analyze patterns and trends in consumer
behavior, product usage, and market trends.
• It is used to answer questions such as:
How many people are using a particular drug or
product?
What are the demographics of the people using a
particular drug or product?
What is the market share of a particular drug or
product?
What is the effectiveness of a particular marketing
campaign?

9. • There are several different types of data collection
in quantitative market research;
Mail
Face-to-face
Telephone
Online / web
• It is important to carry out quantitative research
before starting a new business, launching a new
product, or service.
• It gives factual figures and data that highlights
target market interest and can help secure
investors, as the risk of their investment is
reduced as future demand is shown.

10. Qualitative market research
• Qualitative market research is a methodology
used to gather data about people's opinions,
behaviors, motivations, and experiences.
• Unlike quantitative research, which focuses on
numerical data, qualitative research involves
collecting non-numerical data, such as text,
audio, or video recordings.

11. • Qualitative market research is often used to
gain a deeper understanding of consumer
behavior, attitudes, and preferences.
• It is especially useful when exploring complex
topics or when little is known about a
particular market or consumer group.
• Examples of qualitative research methods
include focus groups, in-depth interviews,
observation, and ethnographic research.

12. Size and Composition of
Pharmaceutical Market
• The size and composition of the
pharmaceutical market vary by country and
region.
• However, the global pharmaceutical market is
one of the largest and most important
industries in the world, valued at over $1.3
trillion in 2020.

13. • The market is composed of prescription drugs,
over-the-counter drugs, and other healthcare
products and services, such as medical devices
and diagnostic tests.
• The prescription drugs segment is the largest
and most lucrative (beneficial), accounting for
over 80% of the total market share.
• The pharmaceutical industry is also
characterized by a high level of research and
development (R&D) activity, with companies
investing significant resources in developing
new drugs and therapies.

14. • The pharmaceutical market is heavily
regulated, with government agencies such as
the US Food and Drug Administration (FDA)
and the European Medicines Agency (EMA)
overseeing drug safety and efficacy.
• Overall, the pharmaceutical market is an
important driver of global healthcare,
providing patients with access to life-saving
medications and driving innovation in the
development of new therapies.

15. Demographic Descriptions
• Demographic descriptions refer to the characteristics of
a population or group of people, which can be used to
segment markets or understand consumer behavior.
• Common demographic characteristics include:
1. Age:
This refers to the age range of a population or group, such
as children, teenagers, adults, or seniors.
2. Gender:
This refers to the biological sex of a population or group,
such as male, female, or non-binary.

16. 3. Income:
This refers to the amount of money earned by a
population or group, which can be used to segment
markets or understand purchasing power.
4. Education:
This refers to the level of education attained by a
population or group, such as high school diploma,
college degree, or postgraduate degree.
5. Ethnicity or Religion:
This refers to the cultural or racial identity of a
population or group, such as Asian, Black, Hispanic,
or White.

17. 6. Geographic location:
This refers to the geographic region or location
of a population or group, such as city, state, or
country.
7. Marital status:
This refers to the legal status of a population or
group, such as single, married, divorced, or
widowed.

18. Socio-psychological characteristics
1. Personality:
This refers to a person's individual traits, such as
openness (simplicity), extroversion (versatile), or
honesty, which can influence their behavior and
decision-making.
2. Attitudes:
This refers to a person's positive or negative
evaluation of a particular topic, product, or service,
which can influence their behavior and decision-
making.

19. 3. Values:
This refers to a person's beliefs and principles,
which can influence their behavior and decision-
making.
4. Motivations:
This refers to the driving forces behind a person's
behavior, such as achievement, power, or affiliation,
which can influence their decision-making.
5. Lifestyle:
This refers to a person's patterns of behavior,
activities, and interests, which can influence their
purchasing behavior and product preferences.

20. 6. Social class:
This refers to a person's position within a social
hierarchy (sequences) based on factors such as
income, education, and occupation, which can
influence their purchasing behavior and lifestyle
choices.
7. Culture:
This refers to a person's shared beliefs, customs,
and traditions, which can influence their
behavior and decision-making.

21. Segmentation
• Segmentation is the process of dividing a
market or population into smaller subgroups
based on shared characteristics or needs.
• The purpose of segmentation is to better
understand and target specific groups of
consumers with products, services, and
marketing messages that are tailored to their
unique needs and preferences.

22. • There are various methods of segmentation,
including:
1. Demographic segmentation:
This involves dividing a market based on
demographic characteristics, such as age, gender,
income, education, ethnicity, and geographic
location.
2. Psychographic segmentation:
This involves dividing a market based on
lifestyle, personality, values, attitudes, and
motivations.

23. 3. Behavioral segmentation:
This involves dividing a market based on consumer
behavior, such as purchase history, usage rate,
loyalty, and buying occasion.
4. Geographic segmentation:
This involves dividing a market based on
geographic location, such as region, city, or climate.
5. Benefit segmentation:
This involves dividing a market based on the
benefits that consumers seek from a product or
service, such as convenience, quality, price, or
safety.

24. Benefits of segmentation
• Segmentation offers several benefits to companies
seeking to understand their target market and
develop effective marketing strategies.
• Some of the key benefits of segmentation include:
• 1. Better understanding of customer needs:
Segmentation helps companies to better
understand the unique needs, preferences, and
behaviors of different consumer groups, allowing
them to develop products, services, and marketing
messages that are tailored to these specific needs.

25. 2. Increased customer satisfaction:
By developing products and services that meet
the unique needs of different consumer groups,
companies can improve customer satisfaction,
leading to increased loyalty and repeat business.
3. Improved targeting and positioning:
Segmentation allows companies to identify and
target specific consumer groups with relevant
and targeted marketing messages, leading to
more effective marketing campaigns and better
positioning in the market place.

26. 4. Increased profitability:
By targeting specific consumer groups with
products, services, and marketing messages that
are tailored to their unique needs and
preferences, companies can increase sales,
reduce competition, and improve profitability.
5. Greater market share:
By identifying and targeting underserved or
overlooked consumer groups, companies can
increase their market share and gain a
competitive advantage in the marketplace.

27. Targeting
• Targeting is the process of selecting a specific
group of consumers or market segment to
focus on with a company's products, services,
and marketing efforts.
• The purpose of targeting is to identify the most
profitable and attractive consumer groups and
to tailor products, services, and marketing
messages to their specific needs and
preferences.

28. • There are several factors that companies
consider when targeting specific consumer
groups, including:
1. Market size:
Companies consider the size of the target market
segment, including its potential for growth and
profitability.
2. Consumer needs and preferences:
Companies evaluate the needs and preferences of
the target market segment to ensure that their
products, services, and marketing messages are
relevant and appealing to them.

29. 3. Competition:
Companies evaluate the level of competition
within the target market segment and determine
whether there is room for them to enter and
succeed in the market.
4. Resources:
Companies consider their resources, including
financial, human, and technical resources, to
determine whether they have the capability to
effectively target and serve the chosen consumer
group.

30. 5. Marketing objectives:
Companies evaluate their marketing objectives
and determine whether targeting a specific
market segment will help them to achieve their
goals.