PHARMACEUTICAL MARKETING

Product

Lecturer: Ms. Enas Abu-Qudais

Product

◦ Anything that is made to satisfy customer need.

◦ It could be tangible or intangible.

Products of the pharmaceutical Industry

◦ The Primary product is the medication.

◦ Prescription only medicines (POM)

◦ Over the counter medicines (OTC)

Prescription Medicine OTC Medicine

A doctor’s prescription is required Does NOT require a prescription to purchase

Can only be dispensed from a pharmacy by

a licensed pharmacist

Available for purchase on store shelves in a pharmacy and in stores such as

supermarkets or small convenience stores

Prescribed for and intended for use by one

person only

OTC medicines can be used by more than one person; however, because of the risk of

contamination, some OTC medicines are NOT recommended for sharing (e.g., eye drops, ointments)

Requires a medical diagnosis and decision

by a licensed healthcare professional as to which medicine is used

Relies on self-diagnosis; product is chosen based on self-care decision

Usually more powerful than OTC medications OTC medicines have a wider margin of safety than prescription medicines

Can be used to treat both minor ailments

and more serious diseases and illness Used to treat minor ailments

Can be harmful if misused Also can be harmful if misused

Branding ◦ The process by which companies distinguish their products from

the competitors by developing distinctive names, packaging and

design to create a brand.

◦ It allows customers to develop association with the product and

ease of the purchase decision.

Importance of branding

◦ Company value

◦ Consumer perceptions and references

◦ Barrier to competition

◦ High profits

◦ Base for brand extension (ex. Panadol extra, Panadol night, Panadol joints)

◦ Trust

Brand awareness

◦ Brand awareness is the likelihood that consumers recognize the

existence and availability of a company's product or service

◦ It’s a pre-condition before evaluating the brand by the customer.

◦ Leads to higher sales and profits.

It Influences the purchasing by:-

-Entering the customer’s evoked set.

-In cases of low involvement.

Brand image

◦ The general impression of the brand.

◦ It is created through the use of the elements of the marketing mix.

◦ Positive image

Generated by strong, favorable and

unique association to the brand in the

memory.

◦ Negative image

Low association with the brand and bad

reputation or bad experience

Drug nomenclature

◦ The systematic naming of drugs.

◦ Three types :-

◦ Chemical names (IUPAC system): the scientific names, based on

the molecular structure of the drug.

◦ Generic non-proprietary name: The common name of the drug.

◦ Brand name (proprietary name) : created and owned by the firm

that markets a specific product.

Systematic IUPAC :

N-(4-hydroxyphenyl)acetamide

Generic : Paracetamol

Brand: Panadol

Example:-

How drugs get their names

◦ In the US a group called the United States Adopted Name (USAN) initiates generic/Chemical name for the new drug and there can only be one name used around the globe for the generic or active ingredient.

◦ They consider three primary issues in the naming process (generics):-

- If it reflects the medication mechanism

- The name’s ability to be translated to other languages

- General ease of pronunciation.

◦ To create a brand name, the pharmaceutical company

conducts and extensive research to identify the most beneficial

name.

◦ The marketing department tests a dozen of names for consumer

response.

◦ The First Letter of the brand name is

always capital.

◦ Generics may have more than one

brand name.

◦ The name is often chosen to be memorable for advertising, or to

be easier to say or spell than the generic name.

◦ Example:

-Ambien (A sedative drug for insomnia)

Am : From morning

Bien: good (in French)

Ambien: to have a good morning after a good night’s sleep.

Product Positioning

◦ Positioning: Placing a brand in that part of the market where it will

have a favorable acceptance compared to competing

products.

◦ The objective is to create

and maintain a distinctive

place in the market.

Key tasks in positioning is the choice of the following :-

-Market segmentation: Who we want to target

-Target market : where we want to compete

-Differential advantage: how we want to compete

Keys for successful positioning

The message must

be clear in terms of

target market and

differential

advantage

It must offer a

value to the

customer over

competition

It must be truthful

and trustworthy

It must be simple

and doesn’t

change regularly

Positioning Example (Gaviscon)