Role of Advertisement and Sales Promotion in Pharmaceutical Marketing

7/26/2019 Role of Advertisement and Sales Promotion in Pharmaceutical Marketing

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Role of Advertisement and Sales Promotion

in Pharmaceutical Marketing: A Review

Submitted by Anonymous on Mon, 08/14/2006 - 19:47

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0our rating: !one

S. J. Daharwal

Advertisement and sales promotion are basicall the two important features

used to promote the sale of the product. !ut the differ in their was. Advertising

on one hand is the form of mass media communication directed towards

influencing

the end consumer.

"#ereas sa$es, %romotion on t#e ot#er #and dea$s &it# t#e mass 'ommuni'ation

dire't$y to&ards in(orming and in($uen'ing t#e '#anne$s o( distribution) *ot#t#e sa$es %romotion and advertisement #e$% in %rodu't %romotion+ t#ey enab$e

a (irm to (a'e t#e 'om%etition in t#e maret (or its surviva$)

#ey %romote t#e brand and a$so are use(u$ in t#e $aun'# and introdu'tion o(

ne& %rodu'ts) #ey $ead to in'rease in %rodu'tion, i'# in turn redu'es t#e

over#ead e.%enses) en'e it #e$%s in bringing do&n t#e se$$ing %ri'e) *ut on

'ontrary t#ey a$so #ave 'ertain disadvantages as its very 'ost$y met#od o( %rodu't%romotion and do not ne'essari$y in'rease t#e demand and sa$es o( %rodu'tion)

t invo$ves a #uge &aste(u$ e.%enditure be'ause t#e maority o( advertisements

eit#er es'a%es t#e attention o( t#e %eo%$e or is ignored by t#em) t mu$ti%$ies

t#e need o( t#e %eo%$e by indu'ing t#em to buy t#e t#ings t#ey do not rea$$yneed or 'annot e((ort to buy)

#us it 'an be 'on'$uded (rom t#e (o$$o&ing study t#at %#arma'euti'a$ mareting is to be done&it# a $ot o( restri'tions, as t#e %rodu'ts s#ou$d not be misre%resented near t#e 'onsumer, i'#

may serious$y #arm t#em)


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"ntroduction

#ere is no universa$$y a''e%ted distin'tion bet&een t#ese t&o terms t#at is advertising and sa$es%romotion) o some advertising in'$udes a$$ (orms o( mass media 'ommuni'ation dire'ted

to&ards in($uen'ing t#e end 'onsumer) Sa$es %romotion on t#e ot#er #and, in'$udes t#e (orms o(

t#e mass 'ommuni'ation dire'ted to&ards in(orming and in($uen'ing t#e '#anne$s o( distributione)g) distributors, retai$ers et'3) #e term sa$es %romotion 'annot be taen to mean at is

'ommon$y does) Sa$es %romotion is on$y a %art o( t#e %romotion) *asi'a$$y %romotion is an

e.er'ise in in(ormation, %ersuasion and in($uen'e5) romotion #as 'ome to mean t#e over a$$'oordination o( advertising, se$$ing, %ub$i'ity and %ub$i' re$ations) romotion is #e$%ing (un'tion

designed to mae a$$ ot#er mareting a'tivities more e((e'tive and e((i'ient) *ut sa$es %romotion

as su'# #e$%s on$y t#e se$$ing a'tivity) Sti$$, t#ere e.ist some di((eren'es o( o%inion on t#e rea$

'onnotation o( t#e terms sa$es %romotion) en'e a %ri'e o( t#e %rodu't $iterature mai$ed dire't$yto a 'ustomer is advertising, $iterature distributed by retai$ers is sa$es %romotion) #us Sa$es

%romotion merges on one side into advertising and on t#e ot#er into %ersona$ sa$esmans#i%) t is

'on'erned &it# t#e dissemination o( in(ormation to o$esa$ers, retai$ers, 'ustomers bot# a'tua$

and %otentia$3 and to t#e sa$esman)

Advertising

Advertising is an art used to (ami$iarie %ub$i' &it# t#e %rodu't by in(orming o( its des'ri%tionuses, its su%eriority over ot#er brands, sour'es o( its avai$abi$ity and %ri'e et') advertising is not

on$y mere$y a %ro%aganda but it is a %aid (orm o( 'ommuni'ation) #e advertisers #ave to %ay (or

t#e s%a'e and time used to 'ommuni'ate t#e message to #is 'ustomers) A basi' res%onsibi$ity o( amareting manager is to ensure t#at t#e 'om%anys message rea'# its %otentia$ 'ustomers) A

main met#od by i'# 'om%anies de$iver t#eir message to grou% o( 'ustomers and, in (a't, mae

t#ere initia$ 'onta'ts &it# most %otentia$ 'ustomers is t#roug# advertising) Advertising is a

%o&er(u$ too$ i'# individua$s, business and non- business organiations use (or in(orming%ersuading and reminding t#eir target audien'es) arious aut#ors #ave de(ined advertising in t#e

(o$$o&ing &ays:

Advertising #as been de(ined as t#e dissemination o( in(ormation 'on'erningan idea, servi'es or %rodu'ts to 'om%e$ a'tion in a''ordan'e &it# t#e interest

o( advertisers5) *y, M) *aneree)

Advertising 'onsists o( a$$ t#e a'tivities invo$ved in %resenting to a grou%,a non-%ersona$, ora$ or visua$, o%en$y s%onsored message regarding a %rodu't

or servi'es, or idea5) *y, Stanton)

Main ob#ectives of advertisement:

o 'reate a demand (or ne& %rodu'ts by e.%$aining its uti$ity


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o announ'e a ne& %rodu't or servi'e

o in'rease its sa$es by attra'ting ne& 'ustomers

o 'reate brand %re(eren'es

o e.%and t#e maret (or ne& buyers

o assist t#e sa$esmen in t#eir se$$ing e((orts

o &arn t#e %ub$i' against imitation o( t#e %rodu't o( t#e (irm

o %re%are ground (or ne& %rodu'ts

*arring ne& entran'e

o mae s%e'ia$ o((ers t#roug# sa$es %romotion

o neutra$ie 'om%etitors advertising

o en#an'e good&i$$ o( t#e (irm


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;be'tive o( any advertising is to 'ommuni'ate about t#e %rodu't and servi'es

to t#e %ros%e'tive 'ustomers) ts $ong-term obe'tive is to generate%ro(it

to (irm)


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t %rovides revenue to ne&s%a%ers, magaines, te$evision and radio)

Disadvantages of advertising:

t mu$ti%$ies t#e needs o( t#e %eo%$e by indu'ing t#em to buy t#ings, i'# t#ey do not, rea$$yneed or 'annot e((ort)

t in'reases t#e 'ost o( %rodu'tion

t does not ne'essari$y in'reases t#e demand and sa$es o( t#e %rodu'tion)

t sim%$y s#i(ts (rom one se$$er to anot#er

t invo$ves a #uge &aste(u$ e.%enditure be'ause t#e maority o( advertisements

eit#er es'a%e t#e attention o( t#e %eo%$e or are ignored by t#em

Many a time, t#e (a'ts are misre%resented in t#e advertisement)

Advertisement and Pharmaceutical industr:

#e advertisement o( %#arma'euti'a$ %rodu'ts s#ou$d be trut#(u$) #ere s#ou$d not be any &rongstatement regarding its 'ontents and t#eir %er'entage) t s#ou$d %rovide (u$$ detai$s regarding t#e

a'tion and uses, %ro%rietary name as &e$$ as t#e geneti' name, dosage (orm, mode o(

administration, side e((e'ts, treatment o( to.i', e((e'ts, %re'autions and 'ontraindi'ations) #eabove statement s#ou$d be trut#(u$, s'ienti(i'a$$y 'orre't and %roved) ")); "or$d ea$t#

;rganiation3 #as %assed t#is reso$ution regarding advertising o( t#e %#arma'euti'a$ %rodu'ts)

#e %ur%ose o( advertising in t#e et#i'a$ %#arma'euti'a$ maret is t#e same as t#at (or any ot#er%rodu'ts t#ere are a $ot o( restri'tions on it)

A 'ustomer %atient3 'annot use a medi'ine &it#out %ro%er %res'ri%tion o( a %#ysi'ian) #e

maority o( %#arma'euti'a$ %rodu'ts and t#eir dire't advertisement are %ro#ibited a''ording to

t#e drug and magi' remedies obe'tionab$e advertisements3 a't) o&ever, genera$/#omeremedies, %rodu'ts, su'# as, %ain ba$m, in#a$ers, ode., antise%ti' 'reams and ot#er %rodu'ts,

i'# do not re=uire any %res'ri%tion (or t#eir %ur'#ase 'an be advertised by any o( t#e dire't

met#ods o( advertisement)
http://www.who.int/http://www.who.int/http://www.who.int/http://www.who.int/


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$here are following methods which are used for advertising pharmaceutical

products:

>ire't mai$ing

!e&s%a%er, %ro(essiona$ magaines and ourna$s

e$evision, radio and ot#er audio visua$ media

ersona$ 'onta't or detai$ing

Mis'e$$aneous met#ods

Direct mailing:

n t#is met#od a mai$ing $ist o( registered medi'a$ %ra'titioners, '#emists

and druggists is %re%ared) ?etter, $ea($ets, (o$ders and 'ata$ogues are sent

to t#em regu$ar$y t#roug# mai$ to in(orm t#em o( t#e detai$s o( t#e %rodu'tsmanu(a'tured by t#e (irm) Mai$ advertising #as a %ersona$ a%%ea$ be'ause it

is addressed to a %arti'u$ar %erson) t a$so maintains se're'y in advertising)#e main dra&ba' o( t#is te'#ni=ue is t#at it #as t#e $imited 'overage)

$elevision radio and other audiovisual media:

e$evision is t#e $atest and t#e (astest gro&ing medium o( advertising) t is very e((e'tivemedium be'ause it a%%ea$s to bot# t#e eye and ear) #e %rodu't 'an be demonstrated and

e.%$ained on t#e te$evision) o&ever, it is very 'ost$y met#od o( advertising) @adio advertising

is be'oming more %o%u$ar t#ese days and t#e advertisements are genera$$y transmitted t#roug#'ommer'ia$ servi'es o( A$$ ndia radio) @adio advertisements 'arry an e((e'tive a%%ea$ as t#ey

rea'# out to a$$ se'tions o( so'iety) eo%$e 'an $isten to t#em even en t#ey are busy &it# ot#er

a'tivities) #e big %#arma'euti'a$ 'om%anies genera$$y s%onsor entertaining %rograms on andradio to %o%u$arie t#emse$ves and t#eir %rodu'ts)

Personal contact or detailing:

t is a %ro'ess o( sa$es %romotion and advertisement by %ersona$ 'onta'ts) #e %#arma'euti'a$

manu(a'turers engage %ersons sa$es re%resentatives and medi'a$ re%resentatives3 (or maing

%ersona$ 'onta'ts &it# se$$ers or %res'ribes and in($uen'e t#em in (avor o( t#eir %rodu'ts) #is


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met#od o( advertisement is very 'ost$y) o&ever, t#e %#arma'euti'a$ manu(a'turing 'om%anies

(or t#e (o$$o&ing reasons %re(er it)

t %rovides an o%%ortunity to in(orm t#e %#ysi'ian about ne& %rodu'ts o( t#e(irm

t a$so #e$%s to re(res# t#e memory o( %#ysi'ians regarding t#e o$d %rodu'ts

o( t#e (irm

t '$ears doubts a %#ysi'ian may #ave regarding a %arti'u$ar %rodu't o( t#e

'om%any

t #e$%s to #ave a (eed ba' (rom %#ysi'ians regarding t#e %rodu'ts o( t#e

(irm

t %rovides t#e 'om%any &it# an o%%ortunity to demonstrate and e.%$ain its

%rodu'ts)

Miscellaneous methods:

osters, bi$$boards and e$e'tri'a$ dis%$ays are a$so used (or advertisements) #e %osters are %astedon &a$$s) *i$$boards are %art on e$e'tri'a$ %o$es and at 'rossings) o$or(u$ e$e'tri'a$ $ig#ts in

artisti' designs or neon signs are %ut u% at rai$&ay stations, bus sto%s and ot#er %ub$i' %$a'es)

;ut door advertising is #ig#$y ($e.ib$e and attra'ts immediate %ub$i' attention) Many

%#arma'euti'a$ (irms o((er gi(t items to t#e %#ysi'ians and retai$ers to %ass on to se$e'tive'ustomers) #ese items may be diaries, ba$$ %en, %en#o$ders, des trays, ey '#ains,

%a%er&eig#ts and 'a$endars) #ese arti'$es are o( t#e dai$y use and t#ere(ore t#ey 'ontinuous$y

remind t#eir uses o( t#e (irm and its %rodu'ts)


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t s#ou$d be made attra'tive by using %i'tures+ #ead$ine, attra'tive boards

et') so as to mae %eo%$e read, see or $isten to it)

t s#ou$d 'reate a %ermanent im%ression on t#e minds o( %eo%$e) @e%eated use

o( a brand name o( trademars is very #e$%(u$)

t s#ou$d give use(u$ suggestions to t#e %ub$i') Cor e.am%$e, t#e advertisement

o( i's D00 tab$et suggests its use (or 'o$d and 'oug#)

t s#ou$d edu'ate t#e %eo%$e about t#e use o( t#e %rodu't and its bene(its)

Cor e.am%$e, in t#e advertisement o( baby mi$ %o&der, t#e instru'tions (or

%re%aring mi$ are re=uired)

t must 'ontain so$id arrangement and %roo( to 'onvin'e t#e 'onsumers about

t#e su%erior =ua$ity o( t#e %rodu't) Cor e.am%$e, Ana'in tab$et re$ives %ain

(aster as it is mi'ro (ined)

t s#ou$d 'reate t#e need (or t#e %rodu't in t#e minds o( t#e %eo%$e) t s#ou$da%%ea$ to t#e various instin'ts o( t#e %eo%$e)

t s#ou$d indu'e %eo%$e to buy t#e advertised %rodu't)

&indow displa:

#is is one o( t#e mediums o( advertising and sa$es %romotion) #e goods are e.#ibited inartisti'a$$y $aid-out &indo& in (ront o( t#e s#o%s or at im%ortant business 'enters $ie rai$&ay

stations, bus sto%s) *ig business (irms set u% $arge s#o& rooms to dis%$ay t#eir %rodu'ts) #e

retai$ '#emists e.#ibit t#eir %rodu'ts in t#e s#o& &indo&s o( t#eir s#o%s)


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#e main aim o( &indo& dis%$ay is to attra't 'ustomers and t#us to %romote

sa$es) t 'reates a good im%ression about t#e retai$ %#arma'y) #e (o$$o&ing

%rin'i%$es o( &indo& dis%$ay s#ou$d be e%t in mind)

t s#ou$d re($e't t#e '#ara'ters o( %#arma'y) Cor t#is %ur%ose t#e insignia

o( %#arma'y green 'ross E3 s#ou$d be (i.ed)

t s#ou$d dis%$ay seasona$ items)

t s#ou$d s#o& t#e %ri'e o( items)

#e &indo& dis%$ay s#ou$d be &e$$ $it during nig#t)

#e items dis%$ayed in t#e &indo& s#ou$d be '#anged (re=uent$y gives (res#ness

and ne&ness to t#e dis%$ay)

t s#ou$d in'$ude 'ertain moving obe'ts i( it is 'om%atib$e &it# t#e dis%$ay)

#ere s#ou$d be de'orative ba'ground o( t#e dis%$ay, i'# 'an be made by

using 'o$ored &a$$%a%ers, t#ermo-'oo$, ($o&ers o( good =ua$ity stain '$ot# et')

#e 'o$or %$ays an im%ortant ro$e in &indo& dis%$ay) t #e$%s in arresting

t#e attention o( %asserby and 'reates a %$easing im%ression) #e 'o$ors #avet#e attention va$ue in t#e (o$$o&ing order B

@ed F orangeF ye$$o& F green

F b$ue


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>ar and $ig#t s#ades o( t#e same 'o$or 'an attra't t#e attention o( $arge

%eo%$e) t is better to use a dee% 'o$or in 'ontrast &it# or in #armony &it#ot#er 'o$ors) *ri$$iant $ig#ting in &indo& dis%$ay attra'ts %eo%$e) #e re($e'tor

'on'ea$ed at t#e to% and (ront t#e mer'#andise s#ou$d be used) o$ored $ig#tingo( t#e entire &indo& is not e((e'tive (or drug stores) ;n$y t#e non-et#i'a$

%rodu'ts s#ou$d be dis%$ayed in s#o& &indo&s) #e tab$e be$o& indi'ates bot#'ontrasting and #armoniing 'o$or 'ombinations &it# %rimary 'o$ors t#at mae

(or im%ressive &indo& dis%$ay)

Advantages of window displa:

"indo& dis%$ay a'ts as a si$ent sa$esman (or %romotion sa$es

t is a good met#ods o( advertising


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t maes a drug store move de'orative and attra'tive

t attra'ts t#e 'ustomers as t#e %asserbys

t 'reates good im%ression on t#e 'ustomers en #e enterd t#e drug store

Marker research:

Mareting o''u%ies an im%ortant %osition in t#e organiation o( a business in t#e organiation o(

t#e business unit) Mareting means t#e %er(orman'e o( business a'tivities t#at dire't t#e (o$$o&

o( goods and servi'es (rom %rodu'ers to 'onsumers) t 'onsists o( a'tivities t#at dire't t#e ($o& o(goods and servi'es (rom t#e %rodu'er to 'onsumers) t 'onsists o( t#e a'tivities, i'# invo$ves

t#e trans(er in o&ners#i% and re$ates to t#eir %#ysi'a$ distribution) #e modern 'on'e%t o(

mareting is 'onsumer oriented) rodu'tion under t#e modern setu% is 'arried out in anti'i%ationo( 'onsumers demand) *ut t#e su''ess o( an industria$ unit, de%ends on t#e (a'ts et#er t#e

%rodu'er is ab$e to gras% t#e %revai$ing 'onditions o( t#e %rodu'er maret and t#us (ore'ast its

demand)

!o& a days it is not %ossib$e to run a business su''ess(u$$y sim%$y by guessing

t#e demand o( t#e %rodu't in t#e maret) #ere #as to be a systemati' and s'ienti(i'attem%t to (ind out t#e 'a%a'ity o( t#e maret to absorb a %arti'u$ar ty%e o(

%rodu't) Su'# attem%ts to (ore'ast t#e (uture o( t#e maret in regard to a %rodu'tor servi'es are 'o$$e'tive$y 'a$$ed GMaret resear'#)

Maret resear'# is de(ined as systemati', obe'tive and e.#austive resear'#

and study o( t#e (a'ts re$evant to any %rob$em in t#e (ie$d o( mareting) Maretresear'# is di((erent (rom mareting resear'#) Mareting resear'# dea$s &it#

a$$ t#e %oints 'on'erning various (un'tions o( t#e maret) Maret resear'#,

#o&ever dea$s &it# t#e (a'ts and %rob$ems, re$ating to trans(er and sa$es o(%arti'u$ar %rodu'ts and servi'es (rom %rodu'er to 'onsumer)

Sources of marketing research:

Mareting resear'# invo$ves t#e 'o$$e'tion o( and ana$ysis o( data or in(ormation bearing on t#e

di((erent as%e'ts o( t#e mareting e((ort o( a (irm) #ere are t&o sour'es (rom i'# t#e re=uired

in(ormation o( maret trends 'an be #ad B nterna$ sour'es and e.terna$ sour'es)


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"nternal sources '

#e interna$ sour'es, su'# as, statisti's o( sa$es turnover, advertising e.%enditure, trans%ort 'ost

et') 'an be ana$yed to get t#e desired in(ormation regarding t#e maret trend)

%(ternal sources '

#ere are t&o e.terna$ sour'es (rom i'# in(ormation 'an be 'o$$e'ted) i) rimary sour'es

and se'ondary sour'es)

Primar sources

#e survey te'#ni=ue is used to 'o$$e't in(ormation (rom t#e %rimary sour'es) #e %rimary

sour'es o( maret in(ormation are BSa$esman, dea$ers and 'onsumers

SalesmanB i( a (irm em%$oys sa$esman to 'ondu't and %romote t#e sa$es

o( its %rodu'ts, t#ey 'an be ased to %rovide an assessment o( t#e 'onsumersand dea$s &it# t#e res%e't t#e (irm (irms %rodu'ts) #ey &i$$ %rovide (irst#and

no&$edge o( t#e maret 'ondition and distribution system &it#out any additiona$e.%enses) o&ever, t#e sa$esman are not trained (or maret resear'# and t#ere(ore

t#eir re%ort may not be unbiased and a''urate)

DealersB t#e dea$ers may be 'onta'ted to %rovide in(ormation regarding

t#e %er'entage o( t#e sa$es o( t#e (irms to t#e tota$ sa$e o( t#e ind o( t#e%rodu't o( ot#ers (irm over a 'ertain %eriod) #ey 'an a$so %rovide use(u$ (eedba'

about t#e 'onsumers rea'tion to t#e (irms %rodu'ts) o&ever, t#is sour'e may

not a$&ays %rovide re$iab$e in(ormation be'ause t#e retai$ers do not #ave t#e

&e$$-organied system o( re'ord ee%ing o( t#e (irm)

ConsumersB t#e o%inion and attitude o( t#e 'onsumer is t#e rig#t sour'e

(or getting a''urate in(ormation regarding t#e =ua$ity, %ri'e, %a'aging andavai$abi$ity o( t#e (irms %rodu'ts) t needs a (ie$d survey) Su'# resear'#

is a$so 'a$$ed G'onsumer resear'#)

Secondar sources '

#ere are 'ertain agen'ies, i'# gat#er t#e in(ormation a(ter doing t#e %ro%er survey o( t#emaret and %resent t#e data in a %rinted (orm) #e main sour'e o( se'ondary data (or maretresear'# is Brade %ress, trade asso'iation, %ub$is#ed survey and government and internationa$

%ub$i'ations)


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Trade pressB t#ese in'$ude trade ourna$s, e'onomi' and (inan'ia$ %eriodi'a$s,

annua$ re%orts %ub$is#ed by some business #ouses and baning 'om%anies et')

t#e data given in t#em %rovides use(u$ in(ormation regarding t#e $atest trendo( t#e maret in s%e'i(i' trade)

Published surveyB t#ere are many inde%endent resear'# organiations i'# %ub$is# t#e data

'ontained t#e re%orts o( t#e maret resear'# or survey (or s%e'i(i' %rodu't (rom time to time)#ese re%orts 'an be 'onsu$ted in $ibraries or %ro'ured dire't (rom t#e sour'e)

Government and international publicationsB t#e %ub$is#ed %eriodi'a$

re%orts, ourna$s and bu$$etins issued by %$anning 'ommission and various ministries

genera$$y 'ontain a $ot o( use(u$ in(ormation (or t#e resear'#) Simi$ar$y internationa$

%ub$i'ations issued by H! agen'ies and MC and t#e "or$d *an et') 'an %roveuse(u$ %arti'u$ar$y in resear'# in internationa$ mareting)

Methods of secondar research:

n order to get in(ormation re$ating to t#e mareting e((ort o( t#e (irm (rom t#e %rimary sour'e

stated above, inde%endent business (irms a$so 'ondu't survey) A survey may be des'ribed as an

en=uiry to 'o$$e't in(ormation (rom a number o( res%ondents) t is di((i'u$t to 'ondu't a survey'overing a$$ t#e 'on'erning %eo%$e in a (ie$d) So as a sam%$e survey is made 'overing a 'ertain

number o( in(ormants by %i'ing some out o( t#e tota$ $ot o( random)

#e (o$$o&ing as%e'ts are genera$$y 'overed during a maret resear'#)

>etermination o( sie and '#ara'teristi's o( t#e maret (or t#e %rodu't

Sa$es (ore'asting

Studies o( 'om%etitive %rodu't

S#ort range (ore'asting


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?ong range (ore'asting

Maret s#are ana$ysis

Measurement o( maret resear'#

#e (o$$o&ing survey met#ods are ado%ted to 'o$$e't t#e desired in(ormation

ersona$ intervie& met#od

e$e%#one intervie& met#od

osta$ survey met#od

ane$ met#od

Personal interview method '

t is =uite 'ost$y but at t#e same time it is t#e most a''urate met#od o( survey)

t is dire't (orm o( investigation in i'# si$$ed intervie&ers 'o$$e't in(ormation(rom se$e'ted individua$s) A %ersona$ intervie& 'an be 'ondu'ted in di((erent

&ays) Iuestions are ased and ans&ers are noted) A (orma$ =uestionnaire is usua$$y

used (or t#e intervie&)


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#e intervie&er gives t#eir (ran o%inion

t saves time and money s%ent on trave$ing

A $arge number o( %ersons 'an be 'onta'ted in a day

o&ever t#is met#od a$so #as 'ertain disadvantages:

#e met#od 'an be used on$y (or te$e%#one subs'ribers

e'#ni'a$ (au$ts in te$e%#one $ines

A $ong dis'ussion 'an not be done

Postal survey methodBin t#is met#od t#e res%ondents are a%%roa'#ed

t#roug# t#e medium o( %osta$ survey) ?etters are sent to a grou% o( individua$s

se$e'ted at random a$ong &it# a =uestionnaire to be 'om%$eted and returned)&o or t#ree (o$$o&-u% $etters may be sent a(ter &aiting (or sometime) ;(ten

a re%$y %aid enve$o%e is a$so sent &it# t#e =uestionnaire to get a =ui' res%onse)

Panel methodBin t#is met#od a 'onsumer %ane$ is se$e'ted (or getting

in(ormation on t#e %rodu't and a$so di((erent as%e'ts o( t#e (irms maretingstrategy) A 'onsumer %ane$ may be a grou% o( %ersons or (ami$ies) #ese %ane$s

may be intervie&ed %eriodi'a$$y regarding (a'ts re$evant to t#e survey and ne'essary

'on'$usion t#ere 'an be dra&n (rom t#e observation made by t#e %ane$)

Advantages of market research:

t su%%$ies in(ormation regarding t#e 'onsumers res%onse to t#e %arti'u$ar %rodu't introdu'ed by

t#e organiation in t#e maret)


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t #e$%s to introdu'e ne& %rodu'ts in t#e maret a(ter a %ro%er survey o(

t#e maret

t #e$%s t#e manu(a'turer to (ind out ot#er simi$ar %rodu'ts avai$ab$e int#e maret)

t gives an idea about (uture trends regarding t#e %arti'u$ar %rodu't

t #e$%s in in($uen'ing various %$ans to boost t#e sa$es

t #e$%s in t#e dis'overy o( %otentia$ maret

t reve$s de(e'ts and t#us maes a 'onne'tive a'tion %ossib$e on t#e %art

o( t#e manu(a'turer

t #e$%s to dis'over reason (or resistan'e on t#e %art o( t#e 'onsumer

t indi'ates et#er t#e %rodu't is in 'onstant demand t#roug# out t#e year

so as to adust its %rodu'tion a''ording$y

t #e$%s in earning #ig# %ro(its a(ter adusting t#e %ri'e stru'ture o( t#e

%rodu't

t gives an indi'ation about t#e $atest government %o$i'ies 'on'erning a %arti'u$ar

business)

Sales promotion:


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#e main aim o( any business is to earn ma.imum%ro(itand t#is is %ossib$e on$y t#roug#

ma.imum sa$es) #e ma.imum sa$es 'an be a'#ieved by using various te'#ni=ues o( sa$es

%romotion) Sa$es %romotion in'$udes t#ose mareting a'tivities, ot#er t#en %ersona$ se$$ing,advertising and %ub$i'ity, t#at stimu$ates 'onsumers %ur'#asing and dea$ers e((e'tiveness su'# as

&indo& dis%$ay, s#o&s and e.%ositions, demonstrations et') Sa$es %romotion is 'on'erned &it#

t#e 'reation, a%%$i'ation and dissemination o( materia$s and te'#ni=ues t#at su%%$ementadvertising and %ersona$ se$$ing) Sa$es %romotion maes use o( dire't mai$, 'ata$ogues, trade

s#o&s, sa$es 'ontents, %remiums, sam%$es, &indo& dis%$ay and ot#er aids) ts %ur%ose is to se$$ a

'ertain brands and to mae 'onsumers more eager to buy t#at brand) ersona$ se$$ing andadvertising do in'$ude %ros%e'ts to mae t#eir de'isions) GSa$es %romotion %rovides an e.tra

stimu$us)

A''ording to various aut#ors sa$es %romotion 'an be de(ined as: -

Sa$es %romotion means any ste% t#at are taen (or t#e %ur%ose o( obtaining an in'reased sa$es5*y, A) ) @) >e$ens

Sa$es %romotion as a too$ o( maret %romotion gives rise to in'rease in %rodu'tion usage as &e$$

as e.%ansion o( maret (or a %rodu't or introdu'tion o( a ne& %rodu't5 *y, Jo#n) ?) ?ui'andand "i$$iam ?ee Kieg$er)

)lassification of sales promotion:

#ere are t#ree ty%es o( sa$es %romotion B ustomer %romotion, trade %romotion and sa$es trade

%romotion

)ustomer promotion

#ere t#e target bene(i'iaries are t#e 'ustomers) ere t#e o((ers are o((ered

to t#e un$imited 'ustomers) Su'# an o((er is a$&ays (or a s#ort %eriod) ( t#e

%eriod in'reases, t#e va$idity o( t#e %romotiona$ measures de'reases)

$rade promotion:

#ere t#e target is t#e midd$eman) #ey are being o((ered t#e in'entives &it#t#e #o%e t#at t#ey &i$$ sto'more and %us# t#e %rodu't to t#e 'ustomers) #is

ty%e o( sa$es %romotion is very im%ortant e((ort to see t#e 'oo%eration o(

t#e midd$eman)

Sales trade promotion:
http://profit.ly/?aff=629http://profit.ly/?aff=629http://profit.ly/?aff=629http://profit.ly/?aff=629


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#is ty%e o( sa$es %romotion em%#asis to in'rease and boost u% t#e mora$e o(

t#e sa$es %eo%$e) #ey are being o((ered 'ommissions, bonus and ot#er in'entives

(or t#e in'rease o( sa$es so t#at t#ey &or dire't$y)

arget audien'es (or sa$es %romotion

*b#ectives of sales promotion:

o in($uen'e t#e 'ustomer (or %ur'#asing t#e %rodu't or servi'e instant$y be'ause t#e sa$es

%romotion time is very $imited and i( t#e 'ustomer does not res%ond to it =ui'$y, t#ey may $oset#e o((er) t in'reases t#e sa$es dire't$y by %ub$i'ity t#roug# media t#at are 'om%$ementary to t#e

%ress and %oster advertising)

o introdu'e ne& %rodu't

o attra't ne& 'ustomers

o (a'e t#e 'om%etition e((e'tive$y


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o maintain o$d 'ustomers

o im%rove %ub$i' image o( t#e (irm

o %o%u$arie t#e brand name o( t#e %rodu't

o indu'e 'ustomer to %ur'#ase more items

Principles of sales promotion:

#e %romotiona$ %rogram s#ou$d %ro'eed in t#e $ig#t o( t#e %retest e.%erien'es) #ere s#ou$d besome %re testing in order to '#e' t#at %ro%osed met#od is $ie$y to attain t#e desired resu$t)

$ear obe'ts must be as'ribed to t#e 'am%aign) @esu$t must be eva$uated at t#e end o( e.er'ise)

#e most e((e'tive$y o( attaining t#ese obe'tives must be t#roug#out and se$e'ted)

Sales promotion devices used are:

Money re(und o((er

ontests o( s&ee%staes

ri'e o(( or tem%orary %ri'e redu'tion

ou%ons

remium or bonus o((er

rading stam%s


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Cair and e.#ibition

Cree sam%$es

Money refund offer:

#is o((er is genera$$y stated in media advertising t#at t#e manu(a'turer&i$$ return t#e %ri'e i( t#e %rodu't is not to t#e satis(a'tion o( t#e 'onsumer

&it#in a stated %eriod) Cor e.am%$e B bu$$- &orer e.er'ise is %romoted t#e

&ay)

Contest or sweepstakes:

At times, 'ontests are arranged &it# a vie& to attra't ne& users to t#e 'om%anys

%rodu'ts) An o%%ortunity under t#is devi'e is given to 'onsumer to 'ontest &it#a '#an'e to &in a 'as# %ri'e, (ree air tri%s or goods) t is an indire't manner

o( introdu'ing ne& %rodu't)

Price off or temporary price reduction:

#is invo$ves an o((er to 'onsumer, a 'ertain amount o( money o(( over t#e

regu$ar %ri'e o( a %rodu't) #is is done to attra't 'onsumers to ot#er brands

to its %rodu't/brand)

Coupons:

A 'ou%on is a 'erti(i'ate t#at entit$es t#e 'onsumer to a s%e'i(ied saving

on t#e %ur'#ase o( a s%e'i(ied %rodu't) #e manu(a'turers t#roug# t#e retai$ers

usua$$y issue t#ese 'ou%ons) #e retai$ers are $ater or initia$$y reimbursedt#e va$ue o( 'ou%ons by t#e manu(a'turers)

Premium or bonus offers:

n t#is te'#ni=ue t#e (irm o((ers a 'ertain =uantity o( t#e %rodu't (ree o(

'ost on t#e %ur'#ase o( a s%e'i(ied =uantity o( t#e %rodu't) #e %remium o((ers

'an be o( t#ree ty%es: -

"it# %a' %remium B#e 'ustomer gives t#e (ree %rodu't a$ong &it# t#e %rodu't

%ur'#ase) Cor e.am%$e B one stain$ess stee$ teas%oon is inserted as (ree gi(t

inside t#e 240 m$ bott$e o( 'oug# syru%)


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A reusab$e 'ontainer: #e %rodu't is %a'ed in t#e 'ontainer t#at #as uti$ity

(or t#e 'ustomer a(ter it #as 'onsumed) Cor e.am%$e B #e 'ontainer o( ayurvedi'

%re%aration '#a&an%ras# is avai$ab$e in attra'tive 'ontainer, i'# 'an be reusedin it'#en)

Cree in t#e mai$ %remium: A (ree gi(t is given to t#e 'onsumer on sending a

%roo( o( %ur'#ase i)e) 'as# memo or &ra%%er o( t#e %rodu't)

Trading stamps:

rading stam%s are issued to 'ustomers t#roug# retai$ers in %ro%ortion to

t#e amount o( %ur'#ase) #e 'ustomer goes on 'o$$e'ting t#e stam%s on #is %ur'#ase)

;n'e #e #as 'o$$e'ted t#e stam%s o( an ade=uate amount, #e obtains a (ree %rodu't

in e.'#ange o( #is stam%s) #is te'#ni=ue indu'es 'ustomers to buy %rodu'ts

(rom t#ose retai$ers o o((er su'# stam%s)

Fair and exhibition:

Cair and e.#ibition are organied to dis%$ay and %o%u$arie %rodu'ts o( t#e

(irm) Cor e.am%$e B in various medi'a$ and %#arma'euti'a$ 'on(eren'es, seminars,a s'ienti(i' 'ongress, t#e %#arma'euti'a$ (irms and t#eir a$$ied industries

%arti'i%ate in t#e e.#ibition organied by t#eir organiing 'ommittee) ;n su'#

o''asions t#e (irms a$so distribute (ree $iterature to introdu'e itse$( andits %rodu'ts)

Free samples:

Many %#arma'euti'a$ (irms send t#eir medi'a$ re%resentatives to t#e %#ysi'ians

(or detai$ing and distributing o( (ree sam%$es o( t#eir manu(a'tured goods)

#e te'#ni=ue is very use(u$ &ay o( introdu'ing ne& %rodu'ts) o&ever it isvery e.%ensive met#od and used on$y by big 'on'erns)

+low chart for sales promotion:


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Salesman:

A %erson o is engaged in se$$ing o( goods to 'ustomer is no&n as a sa$esman5) t isgenera$$y said t#at sa$esman are born and not made) o&ever, it is not true t#ese days, be'ause

any %erson o &ants to ado%t a sa$es %ro(ession gets intensive 'oa'#ing and training) #e

su''ess o( a (irm main$y de%ends on t#e %er(orman'e o( t#eir sa$e (or'e) #ere(ore, it is essentia$to engage &e$$-=ua$i(ied trained, energeti' and young %ersons as t#e 'om%anys sa$es (or'e)

Qualities of a salesman: #e sa$es man #as %ersona$, menta$,

so'ia$ =ua$ities and vo'ationa$ si$$s

Personal ,ualities:

A good sa$esman must #ave an attra'tive %ersona$ity) e must %osses good #ea$t#and sound %#ysi=ue) A sa$esmans ob invo$ves a great %#ysi'a$ stain be'ause

o( its touring nature) So on$y t#e %erson &it# a good #ea$t# 'an &or e((e'tive$y)

e s#ou$d #ave a '$ear voi'e and #is tone o( s%eaing s#ou$d be natura$ so asto im%ress t#e %ersons dea$ing &it# #im) e s#ou$d a$so be &e$$ dressed be'ause

it adds to #is '#arming %ersona$ity a$&ays 'reates a goods im%ression on buyers)

Mental ,ualities:

A good sa$esman s#ou$d %osses a sound memory, %resen'e o( mind, imagination,

(oresig#tedness, sound udgment and initiative) e s#ou$d be inte$$igent enoug#to understand t#e nature and re=uirement o( %otentia$ buyers) e must #ave t#e

imagination to $oo at t#ings (rom t#e vie&%oint o( 'ustomers) A sa$esman 'an

&in regu$ar and %ermanent 'ustomers on$y t#roug# good menta$ =ua$ities)

Social ,ualities:


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A good sa$esman must #ave a $ining (or %eo%$e and t#e abi$ity to mi. &it#

t#em) e must not be s#y and #ave reserved nature) e s#ou$d be sin'ere, de%endab$e,

'oo%erative and #onest) A sa$esman #as to dea$ &it# di((erent ty%es o( 'ustomers)#ere(ore #o s#ou$d #ave %atien'e to $isten to t#em i)e) #is 'ustomers and remove

t#eir obe'tions) e s#ou$d a$&ays be %o$ite and 'ourteous i$e dea$ing &it#

#is 'ustomers) e must #e$% t#e 'ustomers in se$e'ting t#e rig#t ty%e o( goods)ourtesy 'osts not#ing but &ins (avor and %ermanent 'ustomers)

-ocational skills:

A good sa$esman must #ave s%e'ia$ied no&$edge o( se$$ing te'#ni=ues) Sa$esmans#i%

is a #ig#$y si$$ed vo'ation) t re=uires 'ertain training and a%titude to #avea t#roug# no&$edge o( t#e %rodu't, 'ustomers and 'om%etitive %rodu'ts a$ready

avai$ab$e in t#e maret) Su'# no&$edge is essentia$ to #and$e obe'tions o(

t#e 'ustomers and a$so (or 'onvin'ing t#em to buy t#e %rodu't) A %erson 'annot

be good sa$esman un$ess #e #as t#e re=uired ambition and ent#usiasm to be'ome

a su''ess(u$ sa$esman)

Steps in sales promotion process:

Ste%

>e(ining t#e sa$es %romotion target)

Ste%

Setting sa$es %romotion obe'tives)

Ste%


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Setting t#e sa$es %romotion budget)

Ste%

>eve$o%ing t#e sa$es %romotion strategy)

Ste%

Se$e'ting ty%e o( sa$es %romotion)

Ste%

oordinating t#e %$ans)


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Ste%

Lva$uating sa$es %romotion e((e'tiveness)

)onclusion:

#ere are (e& distin'tions bet&een advertising and sa$es, i'# 'an be, statedas:-

Advertising

Sales

A (irm as its basi' o((undamenta$ too$ %rodu'tion

uses it)

t norma$$y #as $ong-term

obe'tives $ie bui$ding brand

a&areness or bui$ding

'onsumers $oya$ty orre%ositioning a brand)

t is genera$$y designed to su%%$ement

advertising and (a'i$itates %ersona$se$$ing)

t %er(orms t#e immediate tas o(in'reasing 'urrent sa$es)

t aids se$$ing by tem%orari$y'#anging t#e e.isting %ri'e va$ue


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t #e$%s sa$es by adding some

durab$e and $ong-term va$ue to

t#e %rodu't)

Advertising is most$y an

indire't &ay (or 'onsumer to

buy a %rodu't)

re$ations#i% o( t#e %rodu't)

Sa$es %romotion is a dire't and a$mosto%en indu'ement to 'onsumers toimmediate$y try t#e %rodu't)

#us (rom a$$ t#e above studies it 'an be 'on'$uded t#at (or t#e %#arma'euti'a$

mareting o( any %rodu't, t#e best &ay to in'rease sa$es is t#roug# t#e Sa$es%romotion rat#er t#an advertising) t is so be'ause in advertising a %#arma'euti'a$

%rodu't t#ere is many 'riterias, i'# are to be, (u$(i$$ed i'# is not an

easy tas) #us it is easier to in'rease t#e sa$es t#roug# sa$es %romotion i)e)t#roug# %ersona$ se$$ing medi'a$ re%resentative and sa$es re%resentative3)

Role of Advertisement and Sales Promotion in Pharmaceutical Marketing

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Transcript of Role of Advertisement and Sales Promotion in Pharmaceutical Marketing