Pharmaceutical Marketing - Philadelphia · 2021. 3. 1. · •Portfolio planning is done using the...
Transcript of Pharmaceutical Marketing - Philadelphia · 2021. 3. 1. · •Portfolio planning is done using the...
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Pharmaceutical Marketing Product part 2
Lecturer: Enas Abu-Qudais
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Product portfolio
• A product portfolio is the collection of all the products or services offered by a company
• Many companies are multi products and serving multiple markets segments
• Portfolio planning: Managing group of brands and products
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Portfolio Planning(analysis) • Involves decisions on the choice of which brands/product lines
to build, hold, harvest or divest.
• Companies must decide how to distribute their limited resources among the competing needs of products to achieve the best performance for the company as a whole.
• Portfolio planning is done using the BCG matrix.
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BCG growth-share matrix
Boston Consulting Group Growth-share matrix
Ma
rk
et
Gr
ow
th
Relative Market share
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BCG Elements
• Stars • The market leaders in high growth markets.
• Already successful products.
• Have the Highest Profitability
• Objective is to build sales and/ or Market share
Question Marks
o They are cash drains. o They have low profitability o Needs investment to keep up with the Market growth o The company has to choose(Objective): Build to turn into stars
Harvest( raise prices) or Divest (dropping or selling it)
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• Cash Cows • High profitability in low growth markets
• Objective: Hold sales and market share
• Excess cash is used to fund stars and
the selected question marks
Dogs o Weak products that compete in low growth
markets o Failed to achieve market dominance o Objective: Harvest or divest
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Build, harvest or divest
Hold
Build
Harvest or divest
Question marks
Question marks
Growth Strategies
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Product life cycle (PLC)
Conceptualizing the changes that may take place during the time that the product is in the market
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Stages
• Introduction : Product’s sales growth is typically low and losses happen due to heavy development and promotional costs and no profit.
• Growth: faster sales and profit growth.
• Maturity : peak of sales as saturation occurs
• Decline: sales and profit fall. For example due to a new technology or change in consumer taste or demand
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Stages objectives
Introduction Growth Maturity Decline
Strategic marketing objective
Build Build Hold Harvest/manage for cash/ divest
Strategic focus Expand Market Penetration Protect share/ innovation
Productivity
Brand objective Product awareness/Trial
Brand preference Brand Loyalty Brand exploitation
Product Basic Differentiated Differentiated Rationalized
Promotion Creating awareness / Trial
Creating awareness/ Repeat purchase
Maintaining awareness/Repeat purchase
Cut/eliminated
Price High Lower Lowest Rising
Distribution Patchy Wider Intensive Selective
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Product strategies for growth
(Ansoff matrix) A matrix the determines how growth can be achieved through product
strategy to look for growth opportunities.
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Ansoff matrix
Market penetration: growing existing products in existing markets(Growing sales).
Product development: Developing new products for existing markets.
Market development: taking existing products and marketing them in new
markets.
Diversification: developing new products for new markets.
Most risky strategy