Advertising in Pharma Industry
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Transcript of Advertising in Pharma Industry
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Certificate
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Company profile
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1) Overview of pharma industry
2) Indian pharma industry
3) Marketing in pharma
4) Advertisement in pharma industry
a) Overview of advertisements
b) In pharma
5) Project on MSD elocon
6) Research work 20 mr
7) Conclusiomn
8) Brand medicine: the role of branding in the pharmaceutical
industry
9) By Tom Blackett, Rebecca Robins
10) http://www.scribd.com/doc/6917017/Tata100307
11) Devendra_Belani_2656
12) http://www.drugs.com/elocon.html
13) http://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?
drugid=4835&drugname=Elocon+Top
14) http://www.authorstream.com/Presentation/sourabh990-128805-ad-
agency-presentation-education-ppt-powerpoint/
15) http://www.docstoc.com/docs/22707907/MBA-Project-on-Advertising
16) http://www.ascionline.org/index.php/asci-industry
http://www.scribd.com/doc/6917017/Tata100307http://www.drugs.com/elocon.htmlhttp://www.drugs.com/elocon.htmlhttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.docstoc.com/docs/22707907/MBA-Project-on-Advertisinghttp://www.ascionline.org/index.php/asci-industryhttp://www.scribd.com/doc/6917017/Tata100307http://www.drugs.com/elocon.htmlhttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.docstoc.com/docs/22707907/MBA-Project-on-Advertisinghttp://www.ascionline.org/index.php/asci-industry -
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17) http://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-
AGENCIES
18) http://www.mbaknol.com/marketing-management/types-of-advertising-
agencies/
ABSTRACT
Pharmaceutical industry mechanics are changing at an incredible rate. Millions
of dollars are being spent in drug discovery, which is followed by a rigorous
clinical trial process leading up to the drug administration agencys approval to
allow the drug to hit the market. The drug development process thus has a typicalcycle time of 10-15 years. A great deal more is spent on marketing these drugs to
boost sales. The window of profitability lies only until the patent is alive after
which generic companies can manufacture and market the same drug. To
maximize revenue returns, drug-marketing cycle needs to be more efficient.
Over the years, revenue per sales person is falling and sales force effectiveness is
reducing. While sales representatives are being added, the increase in revenue is
not aligned to this cost. Companies are looking at initiatives to increase revenues
without increasing sales headcount, by reducing operational costs and other
downtime.
While most other sectors have taken up Business Intelligence and Performance
Management drives more easily, Pharmaceutical firms have been a little reluctant
http://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.mbaknol.com/marketing-management/types-of-advertising-agencies/http://www.mbaknol.com/marketing-management/types-of-advertising-agencies/http://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.mbaknol.com/marketing-management/types-of-advertising-agencies/http://www.mbaknol.com/marketing-management/types-of-advertising-agencies/ -
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to embracing this emerging technology. The current shift in the marketing
strategy is work by multinational pharmaceutical Companies .It is now high-end
(rather than adaptive) development that is being carried out by leading
companies. And, increasingly, other companies are finding themselves competing
against, or working with, new innovation-based companies.
INTRODUCTION
The pharmaceutical industry is the world's largest industry due to worldwide
revenues of approximately US$2.8 trillion. Pharma industry has seen major
changes in the recent years that place new demands on payers, providers and
manufacturers. Customers now demand the same choice and convenience from
pharma industry that they find in other segment
Revenue
Rank 2008
Company Country Total
Revenues(USD
millions)
1 Pfizer USA 67,809
2 Novartis Switzerlan
d
53,324
3 Merck & Co. USA 45,987
4 Bayer Germany 44,200
5 GlaxoSmithKli
ne
United
Kingdom
42,813
6 Johnson and USA 37,020
http://en.wikipedia.org/wiki/Pfizerhttp://en.wikipedia.org/wiki/Novartishttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Merck_%26_Co.http://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Pharmaceutical_industryhttp://en.wikipedia.org/wiki/Pfizerhttp://en.wikipedia.org/wiki/Novartishttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Merck_%26_Co.http://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/USA -
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Johnson
7 Sanofi-Aventis France 35,645
8 HoffmannLa
Roche
Switzerlan
d
33,547
9 AstraZeneca United
Kingdom
26,475
10 Abbott
Laboratories
USA 22,476
The Indian pharmaceutical industry today is in the forefront of nations science-
based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. A highly organized sector, the Indian
pharmaceutical industry is estimated to be worth $4.5 billion, growing at about
8-9% annually. The Indian pharmaceutical industry ranks very high in the third
world in terms of technology, quality and range of medicines manufactured.
From simple headache pills to sophisticated antibiotics and complex cardiac
compounds, almost every type of medicine is now made indigenously. Playing a
key role in promoting and sustaining development in the vital field of medicines,
the Indian pharmaceutical industry boasts of quality producers, and many unitsare approved by regulatory authorities of United States of America and United
Kingdom. Indian companies have stimulated, assisted and spearheaded this
dynamic development in the past 55 years and helped to put India on the
pharmaceutical map of the world.
The Indian Pharmaceutical sector is highly diversified with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading
250 pharmaceutical companies control 70% of the market, with market leader
holding nearly 7% of the market share. It is an extremely fragmented market with
severe price competition and government price control. The pharmaceutical
industry in India meets around 70% of the countrys demand for bulk drugs, drug
intermediates, pharmaceutical formulations, and chemicals. There are 250large
http://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/Sanofi-Aventishttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Abbott_Laboratorieshttp://en.wikipedia.org/wiki/Abbott_Laboratorieshttp://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/Sanofi-Aventishttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Abbott_Laboratorieshttp://en.wikipedia.org/wiki/Abbott_Laboratories -
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units and about 8,000 small-scale units that form the core of the pharmaceutical
industry in India (including 5 central public sector units).\
These units produce the complete range of pharmaceutical formulations, i.e.,
medicines ready for consumption by patients and about 350 bulk drugs, i.e.,
chemicals having therapeutic value and used for production of pharmaceutical
formulations.
Indian Pharmaceutical Industry is poised for high consistent growth over the
next few years, driven by a multitude of factors. Top Indian Companies like
Ranbaxy, DRL CIPLA and Dabur have already established their presence. The
pharmaceutical industry is a knowledge driven industry and is heavily dependent
on Research and Development for new products and growth. However, basic
research (discovering new molecules) is a time consuming and expensive process
and is thus, dominated by large global multinationals.
Indian companies have only recently entered the area. The Indian
pharmaceutical industry came into existence in 1901, when Bengal Chemical &
Pharmaceutical Company started its maiden operation in Calcutta. The next few
decades saw the pharmaceutical industry moving through several phases, largely
in accordance with government policies.
Ran
k
Company Revenue
2010(Rs cro
re)
1 Ranbaxy Laboratories 4,198.96
2 Dr. Reddy's
Laboratories
4,162.25
3 Cipla 3,763.72
http://en.wikipedia.org/wiki/Ranbaxy_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Ciplahttp://en.wikipedia.org/wiki/Ranbaxy_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Cipla -
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4 Sun Pharmaceutical 2,463.59
5 Lupin Ltd 2,215.52
6 Aurobindo Pharma 2,081.19
7 GlaxoSmithKline 1,773.41
8 Cadila Healthcare 1,613
9 Aventis Pharma 983.80
10 Ipca Laboratories 980.44
Commencing with repackaging and preparation of formulations from imported
bulk drugs, the Indian industry has moved on to become a net foreign exchange
earner, and has been able to underline its presence in the global pharmaceutical
arena as one of the top 35 drug producers worldwide. Currently, there are more
than 2,400 registered pharmaceutical producers in India.
There are 24,000 licensed pharmaceutical companies. Of the 465 bulk drugs used
in India, approximately 425 are manufactured here. India has more drug-
manufacturing facilities that have been approved by the U.S. Food and Drug
Administration than any country other than the US.
Indian generics companies supply 84% of the AIDS drugs that Doctors without
Borders uses to treat 60,000 patients in more than 30 countries.
http://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Lupin_Ltdhttp://en.wikipedia.org/w/index.php?title=Aurobindo_Pharma&action=edit&redlink=1http://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Aventis_Pharmahttp://en.wikipedia.org/wiki/Ipca_Laboratorieshttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Lupin_Ltdhttp://en.wikipedia.org/w/index.php?title=Aurobindo_Pharma&action=edit&redlink=1http://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Aventis_Pharmahttp://en.wikipedia.org/wiki/Ipca_Laboratories -
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\
However, total pharmaceutical market is as follows:
It is very much evident from above fig.1 that chronic therapy area (Gastro
Cardiac, Respiratory, Neuro Psychiatry and Ant diabetics) is dominating the
market in long run.
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The Changing Pharmaceutical Industry
Pharmaceutical firms often correlate their sales force size with the success of
sales and marketing drives. Over the years, it has been found that size of the sales
force alone cannot tackle competition. While the sales representatives are being
added, increase in revenue is not aligned to this cost and revenue per sales person
is falling. As is indicated in the graph (fig 1) (Source: Eye For Pharma) increase in
Sales Force Effort after a certain period only leads to marginal improvement in
sales response.
Figure 1 - Sales Response vs. Sales Force Effort (Source: Eye For Pharma)
The Pharmaceutical Industry spends more than $10 billion, largest amount spent
on sales force by any industry .Marketing spend is 2.5 times the R&D spend for
top 9 pharmaceutical firms. Adding to this are the increased regulatory issues
and faster patent expirations facing pharmaceutical firms, which lead to longer
review cycles followed by shorter periods to corner a market.
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As practitioners are becoming overwhelmed with the increasing
number of patients, they have very little time to spend with sales
representatives learning about new drugs. Apart from doctors,
hospitals, clinical administrators and patients make decisions
regarding new drugs as well who are becoming increasingly
participative about their treatments. Therefore, at a time when clinical
trials are already becoming more complex and data intensive sales
force optimization has become a big challenge
Advantage India
Competent workforce: India has a pool of personnel with high managerial and
technical competence as also skilled workforce. It has an educated work force and
English is commonly used. Professional services are easily available. Cost-
effective chemical synthesis: Its track record of development, particularly in the
area of improved cost-beneficial chemical synthesis for various drug molecules is
excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk
drugs.
Legal & Financial Framework: India has a 53-year-old democracy and hence hasa solid legal framework and strong financial markets. There is already an
established international industry and business community.
Information & Technology: It has a good network of excellent educational
institutions and established strengths in Information Technology.
Globalization: The country is committed to a free market economy and
globalization. Above all, it has a 70 million middle class market, which is
continuously growing.
Consolidation: For the first time in many years, the international pharmaceutical
industry is finding great opportunities in India. The process of consolidation,
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which has become a generalized phenomenon in the world pharmaceutical
industry, has started taking place in India.
Pharma Marketing Process And Its Challenges
While many pharmaceutical companies have successfully deployed a plethora of
strategies to target the various customer types, recent business and customer
trends are creating new challenges and opportunities for increasing profitability.
In the pharmaceutical and healthcare industries, a complex web of decision-
makers determines the nature of the transaction (prescription) for which direct
customer of pharma industry (doctor) is responsible. Use of medical
representatives for marketing products to physicians and to exert some influence
over others in the hierarchy of decision makers has been a time-tested tradition.
Typically, sales force expense comprises an estimated 15 percent to 20 percent of
annual product revenues, the largest line item on the balance sheet.
From organizational perspective the most prominent performance related issues
are
a) Increased competition and shortened window of opportunity.
b) Low level of customer knowledge (Doctors, Retailers, Wholesalers).
c) Poor customer acquisition, development and retention strategies
d) Varying customer perception.
e) The number and the quality of medical representatives
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f) High training and re-training costs of sales personnel.
g) Very high attrition rate of the sales personnel.
h) Busy doctors giving less time for sales calls.
i) Absence of analysis on the amount of time invested on profitable and not-so
profitable customers and lack of time-share planning towards developing
customer base for future
The Growth Scenario
The Indian growing and aged population is expected to reach more than 1.4
billion by 2020. The population in India is even forecast to become larger than
China (today 1.3 billion) after 2035, thus becoming the worlds most populous
country with 1.6 billion Indians. The percentage of people aged 65 and above will
increase from 4.3% to 6.3% till 2020.The healthcare expenditure in India is
expected to increase from approximately US$ 44 billion in 2009 to US$ 53 billion
by the end of 2010. Indias per capita spending a year on medicine is expected to
increase from US$ 15 in 2009 to US$ 31 in 2014.
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Direct And Indirect Marketing To Health Care Providers
Physicians are perhaps the most important component in pharmaceutical sales.
Influencing the physician is the key to pharmaceutical sales. Historically, a large
pharmaceutical sales force did this. A medium-sized pharmaceutical company
might have a sales force of 1000 representatives. The largest companies have tens
of thousands of representatives around the world. Sales representatives called
upon physicians regularly, providing information and free drug samples to the
physicians. This is still the approach today; however, economic pressures on the
industry are causing pharmaceutical companies to rethink the traditional sales
process to physicians.
There are several channels by which a physician may be influenced, including
self-influence through research, peer influence, direct interaction with
pharmaceutical companies, patients, and public or private insurance companies.
There are also web-based instruments that can be used to determine the
influencers and buying motives of physicians. There are a number of firms that
specialize in data and analytics for pharmaceutical marketing.
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THE PHARMACEUTICAL PRODUCT LIFECYCLE
Pharmaceutical marketing activities depend largely on the stage in which a
particular product is within the product lifecycle. Following represents a generic
pharmaceutical product lifecycle. (Products may vary greatly and the lifecycle
stages may not manifest uniformly for all products)
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Introduction Stage:
A new product is introduced to the physicians and either cures a disease in a
different manner than existing therapies or is a very new treatment in its own
right. At this stage, sales future is uncertain and direct competition is very low.
Growth Stage:
The new product receives widespread acceptance from the medical community
and number of competitors increase. Promotion activities at this stage focus on
advocating their own brands and sales volumes increase.
Maturity Stage:
The effectiveness of the product is well established at this stage and promotional
activities focus on selling the product to large volume buyers. Competition on the
product line reaches an all time high.
Saturation Stage:
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The product is typically used for all indications it is found useful for at this stage.
A number of product variants such as dermatological, tablets, capsules etc.
appear and promotional activities focus on adding extra value.
Decline:
Decline may or may not happen and is primarily caused by identification of
certain areas where the product was thought to be effective but is not. Some
competitors leave the market at this stage.
As indicated in figure (3) increase in sales volume is highest at the Growth stage
and becomes stable at the Maturity stage before falling gradually at saturation
stage when generic marketing takes hold. It is at this stage that new products
must be launched to sustain the organizations steady growth.
MARKETING MIX
Pricing:
The New Era Pharmacy's prices will be better than traditional pharmacies.
Distribution:
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The products should be distributed throughout the nation.
Advertising and Promotion:
The most successful advertising campaigns will be targeted advertisements.
Customer Service:
Obsessive customer service is the norm. All employees have to be trained to
ensure that all customer's expectations are exceeded. This will occur at any short
term expense, realizing that this is needed to build a successful business.
SWOT ANALYSIS
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SALES AND MARKETING OF PHARMA PRODUCTS
Pharmaceutical Sales and Marketing processes can be classified under three main
categories:
Business-to-Business
Marketing
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Sales
Figure 2 - Pharmaceutical Sales and Marketing Business Process Spectrum
B2B: The onus of winning large deals lies on B2B sales. B2B specialists
constantly work with large hospitals, clinics, managed care, and ILTC facilities to
build and sustain long-term relationships and negotiate multi-million dollarcontracts.
Sales: Pharmaceutical sales force is perhaps the most dynamic work force across
all verticals. Sales function today is not just about sampling and detailing the
drugs to the doctors. It has taken a completely new dimension in using the latest
technology and multimedia to target the most influential physicians and
converting them into high volume prescribers.
Marketing: Pharmaceutical marketing is a strategic function. The marketing
efforts vary from campaigning for a new product launch to conducting Direct-to-
Customer road shows promoting patient awareness. The organic growth of the
internet and google-ization (extensive internet searches using engines such as
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Google) of masses has made the consumer highly informative and curious about
patient treatment.
The traditional DTP route of marketing the drug to the doctors has gradually yet
significantly shifted to innovative DTC marketing. The pharmaceutical consumer
marketing in itself is more challenging than conventional DTC. As shown in
Figure (2) consumer marketing is any intervention that influences consumer
attitude/behavior towards an Rx product. This makes it more complex as
compared to marketing in other industry sectors. The subtle marketing channels
such as gaining interest of various thought leaders to generate favorable ideas on
a drug are being employed by almost all pharmaceutical majors.
Controversy
The mass marketing to consumers of pharmaceuticals is controversial. It is
banned in over 30 industrialized nations, but not in the US and New Zealand,
which is considering a ban. Some feel it is better to leave the decision wholly in
the hands of medical professionals; others feel that consumer education and
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participation in health is useful, but consumers need independent, comparative
information about drugs (not promotional information). For these reasons, most
countries impose limits on pharmaceutical mass marketing that are not placed on
the marketing of other products. In some areas it is required that ads for drugs
include a list of possible side effects, so that consumers are informed of both
facets of a medicine.
The number and persistence of pharmaceutical representatives has placed a
burden on the time of physicians. "As the number of reps went up, the amount of
time an average rep spent with doctors went downso far down, that tactical
scaling has spawned a strategic crisis. Physicians no longer spend much time with
sales reps, nor do they see this as a serious problem."
Marketing strategies
What is the secret behind these successes? For one, the company operates in
niche formulations (chronic) segments such as psychiatry, cardiovascular,
gastroentology and neurology. While most of the top Indian companies have
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Marketing Approaches Of Super Core Model
In pharmaceutical market, there has been a significant shift from Acute towardsChronic Therapy area. Chronic segments are driving the growth of the market as
leading prescribers in these segments are specialists as opposed to general
practioners. Medical representatives are rearranged throughout the new
companies. Some of the sales representatives are now afraid of losing their job,
due to the changing scenario and the possible layoffs. On the other hand, the
new, bigger, pharmaceutical companies are competing more and more with one
another, and, in order to stress their products, might adopt a more aggressive
sales strategy.
For example, sometimes in the same geographical area there are five
representatives for just one company, or different representatives for the same
drug in different settings. As a result of the new, aggressive strategy, the
aggressiveness of representatives has also been increasing, since the larger stress
exerted by their companies might affect their stay in the company.
Therefore, they tend to have more frequent visits to encourage doctors to
prescribe drugs and thus increase sales. In this model medical representatives arethe key actors for example in a small oncology unit almost 40 sales
representatives interacting with doctors, and most of them are coming for a visit
on a regular once-a-month basis as this is the restriction put by doctors of
meeting only once in a month that to on a fix time only, in order to stress the
usefulness of their products and push clinicians towards the use of their drugs.
This means that, basically, there are at least two representatives every day in busy
clinic asking for a short meeting to support their product.
Pharmaceutical marketing is a specialized field where medical representatives
form the backbone of entire marketing effort. Pharmaceutical companies also
appoints medical representatives and assign them defined territories. Medical
representatives meet doctors, chemists and stockiest as per company
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norms.Medical representatives try to influence prescription pattern of doctors in
favor of their brands.
Here patient is end customer and doctor is direct customer for any
pharmaceutical company. Nevertheless, for doctor customer is more important
so he wants an effective supply chain management from prescribed company. For
marketing of these type of products companies require more and more skilled
field force to develop good rapport with their direct customer (doctor). Moreover
field force should have good product knowledge and USP of their products over
other so as to convince doctors and PULL the demand for their products i.e. from
Doctor to Retailer to Stockist to CFA to company.
Pull System Working In Chronic Therapy Segment
CORE CUSTOMER
(Doctor)
END-CUSTOMER
(Patient)
NONCORE
CUSTOMER
(Retailer)
CUSTOMER
(Stockist)
CUSTOMER
In this system, doctors are the core customers and the major thrust is given to
build and retain these customer because they are pulling the demand for
products hence companies also give main emphasis in building and retaining
these customers. For retaining and developing customers, the companies
normally provide gifts like sponsorship for various conferences like RSSDI,
FOGSI, APICON, UPCON etc.
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Marketing Approaches Of Core Model
In present scenario companies are focusing more and more on the availability of
products so as to enjoy good image in their cutomers (doctors) chamber.For
marketing of these type of products companies require more and more field force
to remind their products on daily basis to their direct customer (doctor).
Moreover field force should have good knowledge of product schemes and offers.
Also field force is required to have a good rapport with retailers. Field force also
required to ensure good availability of their products to convince doctors and
PUSH their products i.e. from to Stockist to Retailer to Doctor.It has been
observed that sometimes there are more than fifteen or sixteen representatives in
a day are meeting with their customer and requesting for same type of products.
The doctors are, in general, sneaking away, trying to hide from sales
representatives, since there are too many, they are too pushy, and there is too
little time, and the representatives probably have noticed that the reluctant
doctors have always less time for short meetings and less interest and tend to
reduce the time of the visit .
The relationship between clinicians and representatives has always been good
and pharmaceutical companies have provided, and still provide, the major
economical support for customers' continuous medical education.
Something needs to be done to find a solution to this problem that takes into
account the needs of both pharmaceutical companies and their representatives
on one side and physicians on the other, for a better professional interaction.
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Push System Working In Acute Therapy Segment
In this system, doctors and retailers are the core customers and the major thrust
is given to build and retain these customers. Here retailers are also core customer
as most of the times they are substituting the products based on their own
discretion. For retaining and developing customers, the companies normally
provide gifts like sponsorship for various conferences like small gifts &
sponsorship to remind the products on daily basis.
CORE CUSTOMER
(Doctor)
END-CUSTOMER
(Patient)
CORE CUSTOMER
(Retailer)
CORE
CUSTOMER
(Stockist)
CUSTOMER
(C & FA)
Normally the chances of dumping of goods at stockist and retailer level are
reported also payment recovery of companies is also not very good. Supply Chain
Managers can provide considerable value to their companies by understanding
the customers' delivery
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requirements. A very powerful tool for understanding these requirements is
account segmentation. A company can use account segmentation to identify
market segments Such as Acute & Chronic therapy market. Which is well
positioned to serve and then organize its product range and even SKUs and
service in a superior way.
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ADVERTISING
Advertising is a form ofcommunicationused to persuade an audience (viewers,
readers or listeners) to take some action with respect to products, ideas, or
services. Most commonly, the desired result is to drive consumer behavior withrespect to a commercial offering, although political and ideological advertising is
also common.
Advertising messages are usually paid for by sponsorsand viewed via
various traditional media; including mass mediasuch as newspaper,
magazines, television commercial,radio advertisement, outdoor
advertisingordirect mail; ornew media such aswebsites andtext messages.
Commercial advertisers often seek to generate increased consumption of
their products or services through "Branding," which involves the repetition of an
image or product name in an effort to associate certain qualities with the brand in
the minds ofconsumers. commercial advertisers who spend money to advertise
items other than a consumer product or service include political parties, interest
groups, religious organizations and governmental agencies.Nonprofit
organizations may rely on free modes ofpersuasion, such as a public service
announcement.
http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Traditional_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Newspaperhttp://en.wikipedia.org/wiki/Magazineshttp://en.wikipedia.org/wiki/Television_commercialhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Direct_mailhttp://en.wikipedia.org/wiki/Direct_mailhttp://en.wikipedia.org/wiki/New_mediahttp://en.wikipedia.org/wiki/New_mediahttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Text_messageshttp://en.wikipedia.org/wiki/Text_messageshttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Consumershttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Persuasionhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Traditional_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Newspaperhttp://en.wikipedia.org/wiki/Magazineshttp://en.wikipedia.org/wiki/Television_commercialhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Direct_mailhttp://en.wikipedia.org/wiki/New_mediahttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Text_messageshttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Consumershttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Persuasionhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Public_service_announcement -
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Types of advertising
Advertising is the promotion of a companys products and services carried out
primarily to drive sales of the products and services but also to build a brand
identity and communicate changes or new product /services to the customers.
Advertising has become an essential element of the corporate world and hence
the companies allot a considerable amount of revenues as their advertising
budget. There are several reasons for advertising some of which are as follows:
Increasing the sales of the product/service
Creating and maintaining a brand identity or brand image.
Communicating a change in the existing product line.
Introduction of a new product or service.
Increasing the buzz-value of the brand or the company.
Thus, several reasons for advertising and similarly there exist various media
which can be effectively used for advertising? Based on these criteria there can be
several branches of advertising. Mentioned below are the various categories ortypes of advertising. Mainly advertisements fall into two main categories digital
and print advertisements which are further classified as follows:-
Digital advertising
Television advertising / Music in advertising
The TV commercial is generally considered the most effective mass-market
advertising format, as is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. Television advertisements have
been very popular ever since they have been introduced.
The cost of television advertising often depends on the duration of the
advertisement, the time of broadcast (prime time/peak time), and of course the
popularity of the television channel on which the advertisement is going to be
broadcasted. The majorities of television commercials feature a song
orjingle that listeners soon relate to the product
http://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Music_in_advertisinghttp://en.wikipedia.org/wiki/Broadcastinghttp://en.wikipedia.org/wiki/Jinglehttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Music_in_advertisinghttp://en.wikipedia.org/wiki/Broadcastinghttp://en.wikipedia.org/wiki/Jingle -
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Advertising on television usually means running a TV commercial, typically
between 15 and 60 seconds in length, but TV advertising can also include
sponsorships and product placement within television shows.
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Radio advertising
Radio advertising is a form of advertising via the medium ofradio. Radio
advertisements are broadcast as radio waves to the air from a transmitter to an
antenna and a thus to a receiving device. Airtime is purchased from
a station or networkin exchange for airing the commercials. While radio has thelimitation of being restricted to sound, proponents of radio advertising often cite
this as an advantage. Radio is an expanding medium that can be found not only
on air, but also online.
Some of the popular radio stations are as follows :-
Radio mirchi
Radio city
Red fm
Fm rainbow Radio one
Big 92.7
Online advertising
Online advertising is a form ofpromotion that uses the Internet andWorld Wide
Webto deliver marketing messages to attract customers. Examples of online
advertising include contextual ads on search,banner ads,Rich Media Ads, Social
network advertising, ads, online, advertising networks ande-mail marketing,
including e-mail spam.
http://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Radio_stationhttp://en.wikipedia.org/wiki/Radio_networkhttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Rich_Mediahttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Advertising_networkhttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/E-mail_spamhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Radio_stationhttp://en.wikipedia.org/wiki/Radio_networkhttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Rich_Mediahttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Advertising_networkhttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/E-mail_spam -
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Product placements
Covert Advertising Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a
particular brand is incorporated in some entertainment and media channels likemovies, television shows or even sports. There is no commercial in the
entertainment but the brand or the product is subtly showcased in the
entertainment show. Some of the famous examples for this sort of advertising
have to be the appearance of brand Nokia which is displayed on Tom Cruises
phone in the movie Minority Report, or the use of Cadillac cars in the movie
Matrix Reloaded.
Aston Martin cars are featured in recent James Bondfilms, most notablyCasino
Royale.
Hayabusa in Dhoom, John Abraham uses Hayabusa in the movie as a thief, fromthat time only many of Indians came to know about that bike.
http://en.wikipedia.org/wiki/Aston_Martinhttp://en.wikipedia.org/wiki/James_Bondhttp://en.wikipedia.org/wiki/James_Bondhttp://en.wikipedia.org/wiki/Casino_Royale_(2006_film)http://en.wikipedia.org/wiki/Casino_Royale_(2006_film)http://en.wikipedia.org/wiki/Aston_Martinhttp://en.wikipedia.org/wiki/James_Bondhttp://en.wikipedia.org/wiki/Casino_Royale_(2006_film)http://en.wikipedia.org/wiki/Casino_Royale_(2006_film) -
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Surrogate Advertising Advertising IndirectlySurrogate advertising is prominently seen in cases where advertising a particular
product is banned by law. Advertisement for products like cigarettes or alcohol
which are injurious to heath are prohibited by law in several countries and hence
these companies have to come up with several other products that might have the
same brand name and indirectly remind people of the cigarettes or beer bottles of
the same brand. Common examples include Fosters and Kingfisher beer brands,
which are often seen to promote their brand with the help of surrogate
advertising.
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Billboard advertising:
Billboards are large structures located in public places which display
advertisements to passing pedestrians and motorists. Most often, they are located
on main roads with a large amount of passing motor and pedestrian traffic;
however, they can be placed in any location with large amounts of viewers, such
as on mass transit vehicles and in stations, in shopping malls or office buildings,
and in stadiums.
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Mobile billboards
Mobile billboardsare generally vehicle mountedbillboards or digital screens.
These can be on dedicated vehicles built solely for carrying advertisements along
routes preselected by clients, they can also be specially equipped cargo trucks or,
in some cases, large banners strewn from planes. The billboards are often lighted;
some beingbacklit, and others employing spotlights. Some billboard displays are
static, while others change; for example, continuously or periodically rotatingamong a set of advertisements. Mobile displays are used for various situations in
metropolitan areas throughout the world, including: Target advertising, One-day,
and long-term campaigns, Conventions, Sporting events, Store openings and
similar promotional events, and Big advertisements from smaller companies
http://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Billboardhttp://en.wikipedia.org/wiki/Backlighthttp://en.wikipedia.org/wiki/Backlighthttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Billboardhttp://en.wikipedia.org/wiki/Backlight -
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In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes
placement of a product in visible locations in a store, such as at eye level, at the
ends of aisles and near checkout counters, eye-catching displays promoting a
specific product, and advertisements in such places as shopping carts and in-
store video displays.
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Coffee cup advertising
Coffee cup advertising is any advertisement placed upon a coffee cup that is
distributed out of an office, caf, or drive-through coffee shop. This form of
advertising was first popularized in Australia, and has begun growing in
popularity in the United States, India, and parts of the Middle Eas
Celebrity branding
Celebrity branding is a type ofbranding, or advertising, in which acelebrityuses
his or her status in society to promote a product, service or charity. Celebrity
branding can take several different forms, from a celebrity simply appearing inadvertisements for a product, service or charity, to a celebrity attending PR
events, creating his or her own line of products or services, and/or using his or
her name as a brand. The most popular forms of celebrity brand lines are for
clothing and fragrances. Many singers, models and film stars now have at least
one licensed product or service which bears their name.
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Celebrity -
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Public Service Advertising Advertising for Social Causes
Public service advertising is a technique that makes use of advertising as an
effective communication medium to convey socially relevant messaged about
important matters and social welfare causes like AIDS, energy conservation,
political integrity, deforestation, illiteracy, poverty and so on .Oglivy once said,
"Advertising justifies its existence when used in the public interest - it is much
too powerful a tool to use solely for commercial purposes.". Today public service
advertising has been increasingly used in a non-commercial fashion in several
countries across the world in order to promote various social causes
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Advertising Agency
Getting the best out of advertising is a highly skilled job. It requires the inputs
of experts in many different fields like writers, artists, photographers, designers,television production crews and many others. Even the biggest advertisers cannot
afford to employ all these experts. Almost all advertising is therefore arranged
through an advertising agency which provides the necessary skill to turn the
message into a memorable and effective advertisement. Advertising has not only
come to reflect pop culture but has also become an important element of
economic growth. Today, every person connected with the Indian economy or
public should be fully aware what advertising really is and why effective
advertising campaigns can be performed by full-service advertising agencies.
Advertising agency is one of the most important components of advertising
industry. It has played a significant role in the development of modern
advertising. The advertising agency has evolved to provide the specialized
knowledge, skills and experience needed to produce effective advertising
campaigns. It provides a quality range of service greater than any single
advertiser could afford or would need to employ. An advertising agency is a firmthat specializes in the creation, design and placement of advertisements, and in
the planning and execution of promotional campaigns for products and services
of their clients.
The Association of Advertising Agencies of America (AAAA) defines advertising
agency as An independent business organization composed of creative
and business people who develop, prepare and place advertising media for sellers
seeking to find customers for their goods and services.
The glamour, the unlimited expense accounts, and the exhilarating lifestyle -
all these popular portraits of life in the big-time advertising agency are
misleading. Advertising is demanding, challenging, hard work. It is also
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interesting and fulfilling. Advertising requires a mix of personal abilities,
considerable business skills, and an ability to work under pressure to meet
deadlines. Compared to larger industries, there are never many entry-level
positions open in advertising agencies (dozens rather than hundreds). And
competition is stiff. The industry, however, is constantly on the look 15 Project
Report on Advertising Agency out for skilled, bright, articulate, creative and
personable men and women with a wellrounded education and a good business
sense.
An advertising agency or ad agency is a service business dedicated to creating,
planning and handling advertising (and sometimes other forms of promotion) for
their clients. An ad agency is independent from the client and provides an outsidepoint of view to the effort of selling the client's products or services. An agency
can also handle overall marketing and branding strategies and sales promotions
for its clients. Typical ad agency clients include businesses and corporations, non-
profit organizations and government agencies. Agencies may be hired to produce
single ads or, more commonly, ongoing series of related ads, called an advertising
campaign.
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Advertising Process
The advertising process for professional staff and faculty positions
involves five basic steps:
1. Writing an Ad2. Getting Approval for the Text of the Ad
3. Estimating the Cost of the Ad
4. Placing Ads & Posting Announcements
5. Paying for Ads
STAGE WORK PERFORMED ATSTAGE
Briefing Stage Briefing from the client
Internal briefing to the creativeand media
Any research briefing if required
Creation Stage Ad campaign and media plandevelopment
Internal review and finalization Presentation to client andapprovals
Any pre-testing if required
Production Stage Budget and estimate approvals
Production of film, press ads,collaterals
Media Scheduling and mediabooking
All release approvals for creative& media
Post Production Stage Material dispatch to media
Media release monitoring
Any post-testing if required
Billing and collection
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Types of advertising agencies
Ad agencies come in all sizes, from small one- or two-person shops to largemulti-national, multi-agency conglomerates such as Omnicom Group, WPP
Group, Interpublic Group of Companies and Havas.
Some agencies specialize in particular types of advertising, such as print ads
or television commercials. Other agencies, especially larger ones, produce work
for many types of media. Lately, Search Engine Marketing (SEM) and Search
Engine Optimization (SEO) firms have been classified by some as 'agencies' due
to the fact that they are creating media and implementing media purchases of
text based (or image based in some instances of search marketing) ads. This
relatively young industry has been slow to adopt the term 'agency' however with
the creation of ads (either text or image) and media purchases they do qualify
technically as an 'advertising agency' as well as recent studies suggest that both
SEO and SEM are set to outpace magazine spending in the next 3-5 years.
Not all advertising is created by agencies. Companies that create and plan theirown advertising are said to do their work in house. Today selection of ad-agency
is very difficult. The advertiser should make list of all possible agencies that can
serve his purpose and the agency best qualified to provide required and effective
services are selected. Some advertiser may select more than one advertising
agency to handle effectively the various product lines.
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PHARMACEUTICAL ADVERTISING
NEED OF PHARMA ADVERTISING
During the 1980s and 1990s, the pharmaceutical industry developed and
launched products that provide the ability to treat people with many symptoms
associated with chronic diseases. For example, products known as beta-blockers
and ACE-inhibitors provided the first highly effective means to treat
hypertension. There is substantial evidence that over the past 15 years, products
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such as these have contributed significantly to a higher quality of life for millions
of people. However, taking medications for chronic disease for many people
requires a lifelong consumption of these products to maintain the improved
quality of life. Advertising of life-saving drugs and pharmaceuticals will help
millions of people throughout the world to lead a happy and healthy life.
ADVERTISING OF PHARMACEUTICALS IN
INDIA
The Indian market poses a challenging task to the advertising industry. The
advertising message has to reach a billion people, speaking more than 18
different languages and scattered all across the Indian subcontinent. The literacy
level also varies from above 90% in some states to below 40% in other states.
The per capita income varies from US$90 in poor states up to US$450 in some
rich North Indian states like Uttar Pradesh, Delhi, etc.
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Advertising of drugs and pharmaceuticals is really a big challenge. The current
Indian population has crossed the one billion mark. For public awareness,
providing the basic information about safety and efficacy of drugs is a very
difficult task. Currently, pharmaceutical companies, in their marketing strategy,
target physicians first. The medical representatives of different companies visit
practicing physicians personally and give them detailed information of drugs like
activity spectrum, strength, side effects, contraindications and mode of use. The
medical representatives do most of the advertising of the drugs. The other forms
of drug advertising include seminars and workshops organized by companies to
provide information about the drugs to the physicians and patients.
Nowadays, due to increase in literacy and health consciousness of people,
pharmaceutical companies feel the need to approach a large category of people to
inform them about their products and to earn more profits. In the Indian
population, advertisers can reach their audiences through television, radio, print
media, outdoor advertising, sales promotion and the Internet. As technology
changes, the advertising medium is also taking new dimensions. With the
advent of E-commerce and the Internet, today the Indian pharmaceutical
advertising industry is talking about netvertisement (advertising on the net) as
the newest medium for the marketers. If satellite channel brought in 50-plus
channels to Indian homes, direct to home (DTH) broadcast will probably bring in
500 channels. However, advertising on the net has an equivalent of 500,000
channels.
In terms of value, billings by industrial sectors are the largest market segment
ranked in decreasing order of size. Among the various advertising media,
Newspapers represent 40%, television (including satellite TV) 35%, magazines15%, radio 5%, and others 5% of the total expenditure in this industry.
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METHODOLOGY OF DRUG ADVERTISING
Advertising of pharmaceuticals includes different types like direct-to-consumer
advertising, prescription drug advertising, over-the-counter (OTC) drug
advertisingI. DIRECT-TO-CONSUMER DRUG ADVERTISING
Direct-to-consumer (DTC) advertising adds a new aspect to the doctor-patient
relationship. Many physicians and pharmacists now talk with patients about the
side effects, risks and costs of drugs as a result of advertising. Advertising
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prescription drugs to consumers benefits the public, improves their knowledge of
health, and may reduce health-care costs. People see advertisements for
stimulants, tranquillizers, antidepressants, antihypertensive drugs-all available
from foreign [Internet] sites. They self-diagnose, order the medication from an
Internet site, and take it.
Direct-to-consumer advertising helps people to be aware about their health; it
plays a vital role in lowering health-care costs and increasing success rates. The
earlier a condition is diagnosed, the greater the chances that it can be effectively
treated. In addition, early treatment options tend to be less expensive than later
and more invasive treatments. Consumers pay attention to both the risk and
benefit information in pharmaceutical advertisements. It is no surprise that an
earlier FDA study revealed that 87% of respondents heard claims about thebenefits of the advertised drug. DTC advertising may be particularly effective in
reaching the elderly and lower income consumers who have fewer information
sources than high-income consumers.
According to a survey, 62% of consumers in United States between the ages of 50
and 64 said DTC had made them more aware of medication options they had not
previously considered. Many critics of DTC advertising are concerned that
physicians will be pressurized into prescribing pharmaceuticals against their will.
However, according to the US FDA survey, only 50% of patients were given a
prescription for the drug that they asked about. It may in fact be surprising that
this figure is not higher, given the fact that the patients are visitingtheir physician
because of a condition similar to that described in the advertisement.
Increased spending on direct-to-consumer advertising and R and D indicates that
the pharmaceutical industry is becoming still more competitive as companies vie
for market share. If market forces are allowed to operate, that competition will
eventually lead to lower prices. Competition in a market free of excessive
regulation is the best way to keep drug prices low. Price controls almost
invariably inhibit research and development and result in shortages and
rationing as the experiences of Europe and Canada demonstrate. By contrast,
when drug companies face the need to compete more effectively, they voluntarily
reduce prices and seek new ways to get innovative products to market faster.
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II. PRESCRIPTION DRUG ADVERTISING
Prescription drug advertising to consumers is another area that may generate
challenges to the right to advertise and which will grow in importance as the
nation continues to grapple with the complexities of health-care costs. This is an
important legal basis for the activities of pharmacists, since the medicines
available without prescription can be supplied to pharmacy customers without a
medical prescription. At the same time, a legal framework for the advertising of
pharmaceuticals was set up, which clarifies that only medicines available without
prescription can be advertised to the public.
For the moment, the whole pharmaceutical legislation is in a process of
codification. This means that a single piece of legislation will be put together
without any change of contents. In the nearby future, this type of drug
advertisement in India will be possible.
III. OVER-THE-COUNTER DRUGS ADVERTISING
According to international norms, a drug is often moved from prescription to the
over-the-counter category, once its side effects are known. Currently in India,
there are no specifications as to which drugs can be sold over the counter.
Products on an over-the-counter (OTC) list can also be advertised through mass
media. However, no advertising is possible now as no over-the-counter list exists.
Advertising for 15-20 products in the home remedies categories does take place
on the basis of an unofficial over-the-counter list.
Once this list is formulated, any drug on this list can be sold through general
stores, cigarette stalls, etc., marginalizing the role played by chemists. Companies
will also be able to go in for aggressive advertising for the over-the-counter
products and extend their market reach through various types of retail outlets.
To formulate an over-the-counter list, the government needs to amend the drugs
and cosmetics act. A sub-committee set up by
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the drugs consultative committee is investigating the issue under the
chairmanship of the joint drugs controller of
India and is likely to submit a report within the next 6 months.
AAKANSHA PROFILE
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MSD PROFILE
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countries worldwide. The Merck Manufacturing Division employs more than 12,
000 people at locations in 25 countries.
Merck & Co. Inc., USA success has always been based on innovation and
scientific research. A commitment to excellence in research is at the heart of its
philosophy and strategy. Since the founding of its research laboratories over 70
years ago, Merck & Co. Inc. has developed more than 100 new medicines and
vaccines.
Currently Merck's priority areas of focus in therapeutic research include
Alzheimer's disease, atherosclerosis, cardiovascular disease, diabetes, novel
vaccines obesity, oncology, pain, and sleep disorders. These therapeutic areaswere carefully chosen based on a set of criteria including unmet medical needs,
scientific opportunity and commercial opportunity. Within these therapeutic
areas, Merck & Co. Inc. has committed resources to achieve research breadth and
depth and to develop best-in-class targeted and differentiated products that are
valued highly by patients, payers and physicians.
MSD INDIA
MSD was incorporated in India on 3rd December 2004. Since then the company
has moved quickly in laying the foundation for a successful business in India. A
business that is differentiated by its focus on putting patients first and launching
innovative products those are relevant to India.
MSD currently operates within three therapeutic areas, namely critical care,
metabolic and vaccines. The company initiatives and new drugs address unmet
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Elocon may also be used for other purposes not listed in this medication guide.