Developing a pharmaceutical marketing plan

Dr. Taher Hamed

The Marketing plan

The Marketing plan is the written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals.

The Marketing plan• The marketing plan may be Product specific, market

specific, or company-wide plan that describes activities involved in achieving specific marketing objectives within a set timeframe. A market plan begins with the identification (through market research) of specific customer needs and how the firm intends to fulfill them while generating an acceptable level of return. It generally includes analysis of the current market situation (opportunities and trends) and detailed action programs, budgets, sales forecasts, strategies, and projected financial statements.

Steps to be followed in a pharmaceutical marketing plan

• Determine the nature of the pharmaceutical product you want to plan for.

• Determine the product design, quality, features and packaging.

• determine the product selling outlets and distribution channels for best availability coverage, transport, direct or indirect.

Steps to be followed in a pharmaceutical marketing plan

• Determine price profitable for the company or attractive to customers, discounts, payment period, credit.

• Determine promotion plan: where or how to advertise, advertising, sales promotions, public relations, medical representatives, brochures and printed material.

Companies segment the market into groups

the choice of a successful segment is dependent on:

1-The marketing attractiveness of the target segment, its size, growth, price sensitivity and entry and existing costs.

2-The competitive dynamics in the proposed segment

3-the strength of the strategic advantage for the target segment.

Market targeting

Based on evaluating the segments with regard to its size, growth, effects of competitions, availability of substitute products, power of buyers or suppliers (competition) ,also company objectives or resources.

(Antispasmodics, Non sedating antihistamines)

Competition

Includes all of the actual or potential rival offerings and substitutes that a buyer might consider.

Types of competition: 1-Brand competition: A company sees its competitors as other

companies that offer similar products or services to same customers at similar prices.

(Voltaren vs. Feldene)

Competition

2-Industry competition: A company sees its competitors as all companies

that make the same product or class of products. GSK vs. SANOFI AVENTIS

3-Form competition: A company sees its competitors as all companies

that supply the same pharmaceutical form (All suspension antibiotics)

Competition

4-Generic competition: A company sees its competitors as all

companies that compete for the same consumer either brands or scientific names

Preparing the pharmaceutical plan:External forces affecting marketing of

pharmaceutical products

P.E.S.T Analysis Political, Economical, Social, Technological

environments.

External forces affecting marketing of pharmaceutical products

• Political analysis:-Politics-Decisions made by government-Occupation-Legislations-Policies

External forces affecting marketing of pharmaceutical products

• Economical: nationally and globally• Social: society forces as family, friends, media

affect our attitudes, interests, opinions, what we buy, how we behave.

If a change in structure of a population happens, this will affect the supply and demand of goods and services.

External forces affecting marketing of pharmaceutical products

Technological: -Internet -R&D departments are pressured to develop

up to date products with the advancement of technology.

SWOT Analysis

• A tool used by organizations to help the firm establish its strengths, weaknesses, opportunities and threats.

• Used as a framework to help firms develop their overall corporate, marketing or product strategies.

SWOT Analysis

A method for integrating and cross-analyzingdata collected in the market audit, situationaudit and product positioning to identify SWOT.

SWOT Analysis

• SW: Strengths and Weaknesses of a company or product (internal factors controllable by the company).

• OT: Opportunities & threats ( in the market/environment) are external factors which are uncontrollable by the organization.

SWOT Analysis

The SWOT method is designed to help produce: • The optimum segment to attack • The positioning 'message" to communicate • the strategy that will bring success. • Tactical objectives and their priority. • A tactical plan • final check

Opportunities and threats

• They come out of the following areas: • Market segment • Environment • Competition

Strengths and weaknesses

• Examples of strengths –The product. • - Highly - efficient product • -Very reliable. • -Convenient packaging • -Acceptable pricing. • -Excellent technical back-up • -High versatility • -High market segment share • -Good pharmaceutical brand. • -Excellent delivery

SWOT Analysis• Examples of strengths –The Company:• - Large size • -Excellent reputation • -Adequate promotion budgets --Productive R &

D. • -well-motivated sales force • -Effective sales force • -well-trained sales force • -Excellent distribution • -Excellent back-up information

SWOT Analysis

Example list of opportunities: In the market segment

• Large segment size. • High growth rate. • High level of customer interest. • High degree of acceptance. • Many new customers. • Low level of price sensitivity

SWOT Analysis• List of opportunities: In the environment • Not very complicated government regulations. • Little negative public opinion. • Growth economy. • Competition: • - few competitors • - Weak selling power • -no new products • -little promotion activity

Marketing mix principles• used by business as tools to assist in pursuing

their objectives• The 4 p's are:

product, price, place, promotion

• These are controllable variables which must be managed carefully to meet the needs of the target group.

Marketing mix principles

4 P’s vs. 4 C’s• Product Customer solution• Price Customer cost • Place Customer convenience • Promotion Customer

communication

Product Strategies

• who is the product aimed at ?• what benefits will they expect ?• how do they plan to position the product in

market ?• what differential advantages will the product

offer compared to competitors ?

Product Life CyclesSales

Time

Development Introduction Growth Maturity Saturation Decline

Product Strategies

A product must be viewed in 3 levels:Level 1: Core productLevel 2: Actual product: aim is to ensure that

our potential buyers actually buy one from your company (i.e. add benefits to compete).

Level 3: Augmented product: what additional non-tangible benefits can you offer ?, delivery, after sale support.

Product decisions

• Design• Quality• Branding Vs. Copy cats (Generics)

Pricing

It costs to produce, design, distribute and

promote a product, thus the price must support

these elements. Pricing is difficult and must

reflect the supply & demand relationship.

Pricing

Pricing must take into account:• Fixed and variable costs.• Competition.• Company objectives.• Proposed positioning strategies.• Target group & willingness to pay.

Pricing Strategies Depends on company’s objectivesTypes of pricing:1-Penetration pricing : is the pricing technique of setting

a relatively low initial entry price, often lower than the eventual market price, to attract new customers

2-Skimming pricing: is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time 3-Competition pricing: Method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand

Place

• Distribute product to user at the right place and at the right time.

• Efficient Distribution may be:1-direct (manufacturer consumer) OR2- indirect (manufacturer wholesaler

retailer consumer

Distribution Strategies

• Intensive distribution: Marketing strategy under which a firm sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go.

• Exclusive distribution: Retail selling strategy typically used by manufacturers of high-priced, generally upscale merchandise, whereby manufacturers grant certain dealers exclusive territorial rights to sell the product

Distribution Strategies

• Selective distribution :Type of product distribution that lies between intensive distribution and exclusive distribution, and in which only a few retail outlets cover a specific geographical area. Considered more suitable for high-end items