Pharmaceutical Marketing: Strategy and Consumer Behavior

Posted on Dec 3, 2024 in Other subjects

Marketing Definition

Marketing is a set of activities designed to create exchanges that meet customer needs and generate business benefits through product and service sales.

There are 5 basic marketing concepts:

  • Need
  • Want: A desire conditioned by available resources and marketing encouragement.
  • Market: A group of people with the desire, resources, and needs to fulfill their wants.
  • Product: Physical goods, services, or ideas that satisfy consumer needs.

Strategic Marketing

Strategic Marketing guides a company towards attractive economic opportunities. It involves 3 types of actions:

  • Market research
  • Strategic decision-making
  • Analysis of consumer behavior

Operational Marketing

Operational Marketing implements strategic decisions through action plans in day-to-day operations.

Environmental Analysis

The environment encompasses external forces impacting the company. We can distinguish 6:

  • Natural/Physical Environment: Climatic or geographical conditions affecting health and product needs.
  • Demographic Environment: The population within a pharmacy’s area of influence.
  • Economic and Cultural Environment: Income levels determining purchasing power.
  • Competitive Environment: Ensuring trust through quality product selection.
  • Political-Legal Environment: Compliance with pharmaceutical management laws.
  • Internal Analysis: Studying internal information and resources for efficiency. Key sources include:
    • Business figures
    • Internal structure and operation
    • Strategic decisions

Formulated strategies comprise 3 phases:

  1. Market Segmentation: Identifying target market or population groups. The target group is often defined by age. For example, retirees are a key group with specific needs:
    • Medication and treatment for ailments
    • Health benefits
    • Limited purchasing power
    Other important segments include pregnant women and young families.
  2. Positioning: Creating the desired image or concept of the pharmacy within the target segment.
  3. Consumer Behavior Analysis: Understanding user activities from need recognition to product use. Purchase motives begin with need recognition and motivation, a general predisposition guiding behavior towards desired outcomes.

The Marketing Mix

The marketing mix involves strategies implemented through action plans to influence buying behavior. The components are:

  • Products: Anything of value to the user, tangible or intangible, for which they are willing to pay.
  • Price: Regulated prices for medications and some products; free pricing for others. Limited pricing strategy scope for prescription medications, but potential for 10% PVP on over-the-counter products.
  • Distribution: Limited to dispensing within the pharmacy; external sales are prohibited.
  • Communication: Actions aimed at informing the target audience about the pharmacy’s offerings. Techniques include advertising, promotions, and direct communication.

Relationship Marketing

Relationship Marketing focuses on building and maintaining customer relationships for loyalty and revenue maximization. Direct communication and staff interaction are key, fostering “word-of-mouth” marketing.

Sales Promotion

Sales Promotion encompasses actions to achieve short-term sales increases. Key differences from other techniques:

  • Pursues rapid results, unlike advertising.
  • Includes incentives that vary.
  • Temporary in nature; loses effectiveness if it becomes commonplace.