PHARMACEUTICAL MARKETTING

CHAPTER 1: THE PHARMACEUTICAL HEALTHCARE INDUSTRY Company Brand Indication $B Growth

THE WORLD DRUG MARKET Lipitor Cholesterol 6.449 28%
13 Key World Markets Drug Sales (US$ billion) Growth Rate 1. Pfizer, Inc.
Norvasc Anti-hypertensive 3.582 7%
United States 189.81 10% Zocor Cholesterol 6.700 26%
Canada 9.41 10% 2. Merck & Co.
Cozaar/Hyzaar Hypertension 1.700 12%
Australia and New Zealand 4.94 10% Zektril Hypertension 1.097 -8%
United Kingdom 14.58 9% 3. Astra Zeneca
Seloken Hypertension 0.722 25%
Spain 9.68 9% 4. Bristol-Myers Squibb Pravachol Cholesterol 2.173 20%
5 Leading European Markets 82.42 6% Co. Avapro hypertension 0.510 34%
France 20.17 6%
Italy 13.98 5% TOP 10 DRUGSTORE AND HOSPITAL TOP 15 THERAPEUTIC TOP 20 BRANDS HOSPITALS AND
Germany 23.99 4% SALES, COMPANIES ON MARKET CLASSIFICATION DRUGSTORE SALES
Japan 55.69 3% SHARES, ETHICAL AND PROPRIETARY 1. ANTI-INFECTIVES 1. VENTOLIN
Mexico 6.28 11% MARKETS 2. CARDIOVASCULAR 2. BIOGESIC
1. UNITED LABORATORES 3. VITAMINS- 3. ENERVON C
Brazil 4.71 29%
2. GLAXO SMITH KLINE MINERALS 4. CEELIN PEDIATRICA
Argentina 1.72 33%
3. PFIZER, INC. 4. SOMATICS 5. SOLMUX
4. WYETH 5. COUGH-COLDS 6. AUGMENTIN
15 Therapeutic Categories Drug Sales (US$ billion) Growth Rate 5. ASTRA-ZENECA 6. ENDOCRINE / 7. NORVASC
Musculoskeletal 21.6 14% 6. ABBOTT LABORATORIES METABOLIC 8. ALAXAN
Blood Agents 11.91 14% 7. BRISTOL-MYERS SQUIBB 7. GIT 9. NEOZEP
Central Nervous System 62.08 13% 8. B. INGELHEIM 8. DIETICS 10. PLENDIL ER
Parasitologicals 14.9M 12% 9. NOVARTIS 9. ANTI-ASTHMA 11. PLAVIX SSY
Cytostatics 15.1 11% 10. ROCHE PHILS 10. DERMATOLOGICALS 12. ZINNAT
Hormones 5.17 10% 11. CNS 13. CLUSIVOL
TOP 10 ETHICAL PRODUCTS
Cardiovascular 65.59 8% 1. VENTOOLIN 12. WOMENS HEALTH 14. REVICON FTE
Sensory Organs 6.27 8% 2. NORVASC 13. ANTI-TB 15. CIPROBAY
Diagnostic Agents 6.12 8% 3. AUGMENTIN 14. ANTI-CANCER 16. DIAMICRON
Alimentary / Metabolism 48.28 5% 4. PLENDIL ER 15. EYE AND EAR 17. PROMIL
Genitourinary 18.06 5% 5. LIPITOR 18. NEOBLOC
Anti-infectives 27.6 4% 6. ZINNAT TOP 10 LEADING CAUSESOF 19. CENTRUM
Dermatologicals 9.92 4% 7. PLAVIX MORBIDITY IN 1997 20. UNASYN
Respiratory 29.11 3% 8. RM-AMOXICILLIN 1. DIARRHEA
Hospital Solutions 1.98 2% 2. BRONCHITIS TOP 10 OVER-THE-COUNTER BRANDS
9. NEOBLOC
3. PNEUMONIA 1. CEELIN
10. DIAMICRON
4. INFLUENZA 2. ENERVON C
World’s Top Selling drug 3. ALAXAN
5. HYPERTENSION
 Pfizer’s Lipitor (Atorvastatin) 6. TB, RESPIRATORY 4. SOLMUX
 Merck & CO’s Zocor (Simvastatin) SYSTEM 5. BIOGESIC
 Pfizer’s Norvasc (Amlodipine) 7. MALARIA 6. NEOZEP
 Astra Zeneca’s Nexium (Esomeprazole) 8. DSE OF THE HEART 7. CLUSIVOL
 Sanofi-Avenus Plavix (Clopidogrel) 9. CHICKEN POX 8. PONSTAN
10. TYPHOID, 9. TUSERAN
PARATYPHOID 10. REVICON FTE
 DISTRIBUTION CHANNELS ACCORDING TO SALES
Self-medicating patients
 A self-diagnosing patient
 They enter a community pharmacy already determined
DISTRIBUTORS/COMPANIES DOING OWN DISTRIBUTION
a) The nature of their problem
b) Its probable resolution with non-prescription or over-the-counter (OTC) drugs
TRADERS OR SUB-DISTRIBUTORS
c) Perhaps, the product type he intends to use
 Then the pharmacist must not only answer patient-specific questions but also must help the
DRUGSTORE 85.6% HOSPITAL 11.0% OTHER RETAIL 3.4% patient retrace the steps taken to arrive at the “self-diagnosing” and if appropriate,
CHAIN
recommend a product and provide adequate instructions and warning.
INDEPENDENT CLINICS W/ INDUSTRIAL GOVERNMEN
27.9% 57.7% PRIVATE
BEDS, GOVERNMENT
T AGENCIES CONCEPTUAL FRAMEWORK
8.1% 2.9% CLINICS W/O
INDUCTRIAL BED 3.0% 0.4%
CONSUMER HOSPITAL Self-medication and
CONSUMER CONSUMER self-diagnosing
CONSUMER CONSUMER

Distribution of sales to other trade outlets assumed to follow pattern of distributors and Over-the-counter
manufacturers handling own distribution. drugs
Definition of Terms
 Ethical Drugs products that can be bought only with the prescription of doctors.
 Proprietary / over-the-counter (OTC) drugs products that can be bought over the counter or Socio-economic
without prescription of doctors; products that are advertised in various media channels FilipinoStatus
Consumers
 Ethical prescription-bound products
Educational Attitudes toward
 OTC products registered as over-the-counter.
attainment self-medication
 Branded patented-branded products and branded generics
 Unbranded or “Pure Generics” products sold by its molecular name
 Therapeutic Class product groups, classification of products Promotion of health Self-care
 Drugstore Sales includes sales to chain and single drugstores, dispensing physicians and clinics
with drugstores, industrial clinics, traders and sub-distributors.
 Hospital Sales, includes sales to private government hospitals, industrials and clinics with beds,
government agencies, industrial clinics with a hospital, traders and sub-distributors selling to Reduction of Overall health status
hospitals. undesired risks
CHAPTER 2: THE HEALTH CARE BUSINESS IN THE PHILIPPINES
MEDICAL CARE – provided by physicians and dentists, also by pharmacists in hospitals, industrial, and
medical clinics. Diagnosis and Economics of health
MEDICAL care
treatment of disease
TOTAL CARE SELF-CARE – patients caring for themselves. May rank low
HEALTH on monetary basis.
CARE
SELF CARE Effective use of professional Health care system
Self-medication-precludes guidance by a licensed
health resources
pharmacists or physician.
 It requires increased professional responsibility on the pharmacist
 It requires the pharmacists to analyze each patient’s condition and make a decision on minor
illness, referred to, for appropriate medication. Self-Initiated and Self- Controlled Application of
Skills for Health Promotion
 THEORETICAL FRAMEWORK
SELF-CARE
 The Decision or Professional Judgement- the key factor in the Pharmacist-patient
HEALTH CARE interaction.
 The main arguments on the existence of self-medication
1. Self-medication is more readily available, more convenient and in some countries still
cheaper than professional help in relieving certain minor symptoms and ailments.
SELF-CARE 2. Self-medication keeps the individual functioning in times when he would otherwise be
HEALTH CARE
quite unnecessarily indisposed by indigestion, headache, or constipation.
3. Self-medication relieves an unnecessarily heavy load on the medical services.
The need for auto-therapy appears to be so great that when simple home remedies are not
available, the laymen will find other ways of treating himself which may be less reliable and less
PHYSICIANS NURSES DENTISTS RPhS HOSPITAL CLINICS Self- Self- Self- simple to control and direct.
diagnosis medication care
Drug and Cosmetics Industry answers the following questions:
Increased professional a) What role does advertising OTC drug play in health care?
Self-care patients Self-medication responsibility on RPhs b) What are the economic costs and social costs of OTC advertising?
c) How can advertising contribute to improvement in the delivery of health care?
Self-initiated Knowledge of illness
Advertising provides two basic functions:
1. Helping the consumers utilize the product by educating them on minor conditions
Knowledge of patients 2. Helping the consumers utilize the products available for such conditions
Self-controlled
The Pharmacist Today
Knowledge of drugs  The pharmacist is often the first person to be contacted by a person with minor ailment
Self-  Assures that self-medication achieves its greatest good and the least possible harm through
medicatin OTC drugs Pharmacist’s his/her explanation, advice and warning.
g patients role

Helps patient retrace to

Knows nature of problem arrive at self-diagnosis

Probable resolution with Answer patient specific

non-prescription questions

If appropriate, recommends
Present product or a product and provides
product type adequate instruction and
warning
Consumer’s Attitude towards Common Ailments and Self  Places which are considered convenient or advantageous specialties and chemical drugs are imported for itself or for
Medication in buying OTC drugs wholesale distribution.
 On the attitude towards the choice of OTC drugs on the 1. Drugstore  Drug- articles intended for use in the diagnosis, cure,
different services of information 2. Sari-sari store mitigation, treatment, or prevention of disease in man or
1. Doctor’s advice 3. Grocery/supermarket animals.
2. Advice of a parent 4. Kadiwa centers  Ethical Drug Or Prescription – any drug that can be dispensed
3. Knowledge of OTC drugs 5. Shell shops only on prescription of a licensed practitioner
4. Proximity of drugstore  Primary basis in buying OTC drugs (MD,DMD,VMD)
5. Advice of a friend 1. Effectiveness of the product  Health Services-the phase of the hospital management that
6. Advice of a drugstore personnel 2. Safety of the product has been established for the supervision and protection of
7. Television advertisement 3. Price of the product the health of the public and is administered by physicians,
8. Radio advertisement 4. Popularity of the product dentists, and nurses. While those services are ineffective
9. Newspaper advertisement 5. Presentation of the product means of ensuring a healthy, vigorous and well-rounded life
10. Outdoor advertisement 6. Manufacturer of the product for the members of each community, it develops at the same
11. Comics advertisement  Self-medication practices on common ailments time a large measure of goodwill on the part of the public
12. Drugstore displays 1. Headache towards the hospitals.
 On the attitudes towards self-medication practices 2. Fever  Household Remedy- any drug or mixture of drug, galenic or
1. Necessary remedy 3. Colds official preparation of common or ordinary use, sold without
2. Temporary remedy 4. Flu medical prescription in original packages, bottles, or
Safe and convenient 5. Sore throat containers, the nomenclature of which has been duly
3. Illegal 6. Itchiness established.
4. Dangerous 7. Skin rashes  Medical Staff-the corps of corkers engaged in carrying a
 Intention of buying 8. Diarrhea program for health promotion or health protection in school,
1. To seek immediate relief of minor ailment 9. Sore eyes college, or organization. A medical staff is divided into
2. To save time and efforts going to a doctor’s clinic 10. muscle pains honorary, consulting, active associate, and courtesy group.
3. To save money on prescription drugs 11. pimples
 Medicine-a mixture of drugs, chemical products,
4. To avoid cost of consultation of doctors 12. minor burns
preparations, mixtures, or combinations of drugs intended
 Frequency in buying OTC drugs 13. abdominal pains
for current use in man and animals.
1. Only when necessary 14. dysmenorrhea
2. Twice a month 15. athlete’s foot  Medial Services-a program providing services of physicians,
3. Once a month 16. poor appetite nurses, and sometimes other health workers to care for the
4. Three times a week 17. measles health of the people in a community or some other group of
5. Two times a week 18. chest/back pains persons.
6. Once a week 19. hemorrhoids  Proprietary Medicine-any drug preparation or mixture of
 Percentage in buying OTC drugs 20. ulcers drugs, chemical products marketed under a trade name.
1. Small percentage  Primary Health Care-the lowest level of health care within a
2. 5% Definition of Terms care delivery system, available to the population. It is usually
3. 10%  Advertised Products-products promoted through the various the first entry of population to community health services.
4. 15% media; radio, television and print.  OTC- the acronym for the over-the-counter drug similar to
5. Over 20%  Drug Department- an establishment or part of an household remedies
establishment where drugs, medicines, pharmaceutical  WHO- world health organization
CHAPTER 3: PHARMACEUTICAL MARKETING: THE Marketing System, Markets, and Products 4. STOREFRONT Neon signboard or acrylic plastic or wooden signboard;
 TRADITIONAL MARKETS LAYOUTS Vertically or horizontally placed signboards; with adequate path
o Drugstores walks or with wide door entrance
o Hospital pharmacies 5. DRUGSTORE CHAIN Franchised or own stores;
o Industrial OPERATION Own land and building or rented;
o Medical clinics w/in Metro Manila and nearby Luzon area or nationwide
TQM- Total Quality Management with satellite bodega or warehouse or with sleeping quarters for
TQL- Total Quality Measurement personnel
6. WAREHOUSING Single or multiple story building
PHARMACEUTICAL MARKETING- is a unique bundle of management decisions directed to satisfy, Automated or manual operations
delight, and surprise customers in the pharmaceutical business, their needs and wants through the Owned, rented or leased
exchange of products and value others, towards early realization of desired goals. 7. INVENTORY Computerized or manual through stock control cards
MANAGEMENT Two months stock supply or higher
We need to deliver sincerely and devotedly as ever and always, the following: AND CONTROL Dependent on sales deal offered
1. SATISFY OUR CUSTOMERS with his needs and wants for our high-quality drug products and its 8. PRICING SCHEMES One price formula for all branches or higher pricing for distant
superb value over other products with the same generic equivalent from a reputable drug branches;
company Special discounts or deals for wholesale or institutional purchase
2. DELIGHT OUR CUSTOMERS with after sales services beyond product features and superb-value 9. PRODUCT DISPLAYS Alphabetically arranged or by therapeutic categories or by drug
of product offerings. companies;
3. SURPRISE CUSTOMERS with related or non-related pharmaceutical activities that goes beyond Floor or shelf-space displays or simply glass cabinets;
normal expectations and which are not usually done by direct competitors Provision for window displays or glass counter displays
Needs and Wants 10. STORE HOURS 24 hours or daytime service only or 2 shifts;
Human need is a state of felt deprivation in a person. According to Maslow’s Hierarchy of Open everyday or except Sunday
Needs, they include the following 11. PROMOTIONS Tri-media advertising or simply in-store sales promotions;
1. Physiological or body needs such as food, medicines, clothing, and shelter PR and publicity, also, sampling, merchandising, personal selling
2. Security and safety needs such as high quality medicines that are bioavailable, safe and potent; 12. MERCHANDISE AND Purely pharmaceutical products or inclusive of cosmetics, toiletries,
job security and tenure. SERVICES medical supplies and grocery items.
3. Social needs such as affection and belonging in the pharmaceutical and related fields. Free home deliveries and free medical/dental consultation services.
4. Ego needs such as knowledge on pharmaceutical marketing and self-expression
5. Self-actualization such as achievement and fulfillment in the pharmaceutical business or career
PRESCRIPTION FLOW IN HOSPITALS
in pharmacy, either industrial or community pharmacy or hospital pharmacy practice.
NEEDS WANTS
1. MEDICINES Generic or branded drug products; OUT-PATIENT DEPARTMENT
Higher or lower priced drug products; (OPD) Hospitals
Specific local or multinational drug company; Rx generated from
Tablet, liquid, capsule, or suspension, or injectable format Resident MDs/
2. DRUGSTORE Air-conditioned or non-air-conditioned consultants
Glass doors or steel bard OUT-PATIENTS
Purely wholesale, retail operations or both
With self-service areas inclusive of grocery and food items
Buys Rx
3. PERSONNEL Licensed pharmacist or college undergraduates CPA or non0CPA;
cashiers; pharmacy aide graduates or secondary level salesclerks;
Graduates of reputable schools or any school as long as qualified
DRUGSTORES
 TARGET CONSUMERS

IN-PATIENT DEPARTMENT
(IPD) Hospitals  These are end-users of drug products for all age groups, sexes income levels
Upper Class and psycho-social characteristics.
Rx generated from
Resident MDs/  The end-users might be hospital in-patients or out-patients, or
Middle Class ordinary people with or without ailments who take drugs and
consultants
medicines.
IN-PATIENTS Lower Class

Rx in Patient’s A. Income level consumers

Chart B. Age Classification
Served by nurses
1) Infants drops, injectables, ointments
HOSPITAL PHARMACY 2) Children liquids, suspensions, injectables, ointments
3) Teenagers tablets, capsules, injectables, cream/ointments
4) Adults tablets, capsules, injectables, cream/ointments
PRESCRIPTION FLOW IN HOSPITAL ERs 5) Middle age tablets, capsules, injectables, cream/ointments
6) Golden age tablets, capsules, injectables, cream/ointments
Emergency Rooms (ER) 7) Retirement age tablets, capsules, injectables, cream/ointments
Hospitals 8) Diamond age tablets, capsules, injectables, cream/ointments
Rx Generated from C. Sex
Resident MDs/Consultants  Male or Female
D. Educational attainment, Social status, Profession, Career, etc.
OUT-PATIENTs IN-PATIENTs E. Geographical Locations
PRODUCT CATEGORIES BY THERAPEUTIC SEGMENTS
Rx Bought/Served Rx Served A. ANTI-INFECTIVES E. RESPIRATORY
a. Aminoglycosides a. Anti-asthma
b. Cephalosporins b. Cough-colds
Emergency rooms Emergency rooms c. Chloramphenicols F. CARDIOVASCULAR
Drugstores
(ER) Hospitals (ER) Hospitals d. Amixicillins G. ANTACIDS/GASTRIC ULCERS
e. Ampicillins H. ANALGESICS-ANTIPYRETICS
f. Quinolones I. DERMATOLOGICALS
TYPES OF PHARMACEUTICAL PRODUCTS
g. Tetracyclines J. OTHERS
 Pharmaceutical products – are either ethical, OTC, or proprietary, branded or generic drugs h. Antibacterial combinations
that can be offered to a pharmaceutical market for attention, acquisition, use or consumption, a. Anti-diarrheal
i. others b. Anti-amoebic
to satisfy, delight and surprise a need or want of the target market consumers or end-users. B. ANTI-TUBERCULOSIS AGENTS
 Proprietary drug products- are heavily advertised in radio and TV programs whose target c. Anti-helmintic
a. Single ingredient
audience are mostly the middle and lower income brackets. b. combinations
 Over-the-counter OTC) drug products- are those that do not require a prescription from a duly C. VITAMINS AND MINERALS
licensed physician or dentist and are readily available. a. Single ingredient
 Ethical-OTC drugs- they continue to be prescribed by physicians and dentists despite of its b. Vit.c and b-complex
popularity and the patient’s familiarity of the brand name. D. NEURO-MASCULAR SYSTEM
a. Somaics
b. Anti-rheumatics
c. tranquilizers
 DEFINITION OF TERMS CHAPTER 4: THE MARKETING MANAGEMENT PROCESS IN THE DRUG INDUSTRY
 Customer-the one who buys something especially one who deals regularly at a given
establishment; informal one to be dealt with MARKETING MANAGEMENT PROCESS
 Demand-the desire to possess combined with the ability to purchase a potential amount of 1. Analyzing marketing opportunities
certain goods that will be purchased at a given time for a given purchase “human want are 2. Selecting target markets
backed by buying power” a. Demand measurement and forecasting
 Exchange-to give and receive reciprocally, to give up for something taken as replacement; to Types of forecasting objectives
transfer to another in return for the equivalent in goods or money; that which is given or 1. Short-term forecast-planning of the overall current policy and assessing current
received in trade or substitution; “the act of obtaining a desired object from someone offering developments
something in return” 2. Budget forecast- consist of preparing an annual budget at the corporate or division
 Drug-any chemical biological substance other than food intended for use in the treatment, or developmental level.
prevention or diagnosis of disease. 3. Long-term forecast-cover relatively long period in the future, practically from three
 Human need- the fact, quality, or condition of lacking or feeling the lack of something to thirty years
necessary or desirable; a desire or longing; something wanted or required; a state of felt b. Market segmentation
deprivation in personality c. Market targeting
 Human want- to feel a desire or wish for; to be deficient in; be without; to be lacking to the d. Market positioning
extent of; the expression of desire, the form that a human need takes as shaped by one’s 3. Developing the market mix
culture and individual personality. The four P’s of marketing
 Hospital market-refers to any institution, private or government, industrial or otherwise, that  Product
maintains health care facilities and services to both in-patients and out-patients.  Price
 In-patient department- provides services to the medical needs of patients that are required to  Promotion
recover in the hospital. Normally IPD patients are under the direct management of medical  Place
specialists or in some cases, the resident physician. Prescriptions given to these patients are 4. Managing the market effort
mostly bought at the hospital pharmacy.  Market leader strategies
 Market- trade or commerce in a specific service or commodity; a region where one can buy or 1. Expand the total market by looking for new users and more use from current
sell; a category of persons, institutions, etc. considered as buyers; customers
 Marketplace- the imagined place where ideas, opinions, works, etc. are tested and traded. 2. Pursue heavy investment spending to defend or strengthen its current business and
 Market value-the amount that can be obtained for goods on the open market eventually dislodge competitors by getting their customers and market
 Marketing concept- the marketing management philosophy that holds that achieving 3. Lead an industry-wide innovation, competitive effectiveness and value to consumers
organizational goals depends on determining the needs and wants of target markets 4. The market leader may launch new products or marketing program to strike down
 Marketing- a social and managerial process by w/c individuals and groups obtain what they competitors because they become major threats
need and want through creating and exchanging products and values with others  Market challengers
 Non-traditional pharmaceutical markets- these drug outlets such as groceries, supermarkets, 1. Match its resources against the competitor’s weaknesses
trading stores and sari-sari stores. 2. Bypass the competitor and develop new products, new markets or new
 Out-patient department-services and medical needs of patients that do not recover inside the technologies.
hospital. Prescriptions given to them are generally bought from outside the hospital pharmacy.  Market followers
 Product-anything that can be offered to a market for attention acquisition, use or consumption  Market nicher
that might satisfy a need or want
 Process- a series of continuous actions that bring about a particular result, end, or condition DEFINITION OF TERMS
 Transaction- a trade between parties that involve at least two things things of value, agreed  Advertising-bringing to public notice by radio, television announcements, published notices,
upon condition, a time of agreement, and a place of agreement posters or other means; the business of preparing publishing, or circulating advertisements.
 Traditional pharmaceutical markets- these are the drug outlets such as drugstores, hospital  Advertisements-a public announcement or printed notice, recommending some product or
pharmacy, industrial clinics, private medical clinics, or dispensing physician’s clinics. service or informing of some need.
 Competitor- a person who tries hard to win or gain something wanted by others; rival.
 Cost- the price paid of other amount demanded. Syn: price, charge, outlay, expense,
expenditure
 Forecasting-the act or process of predicting, on the basis of present trends of probable
conditions or events to come, forthcoming business activity.
 Feelings-the tender or sensitive side of one’s nature; sensitivity to the higher or more refined
emotions
 Impression- effect produced by or to any operation or activity or person.
 Marketer-a person who buys or sells in a market
 Market price-price that an article brings when sold; current price
 Market research-study of what makes people buy or not buy a product, when they do it, how
long they may continue and other similar buying habits
 Market segmentation- the grouping of consumers by specific factors.
 Packaging-the preparation of goods for distribution and sale in bottles, boxes, cans, and other
containers including the design and testing of containers and materials
 Perception-insight, apprehension, discernment, or comprehension; the study of complex
process by which patterns of environmental energies become known as objects, events, people
and other aspects of the world.
 Quality-something special about an object that makes it what it is; essential attribute;
characteristics.
 Quality control- the inspection of manufactured products from the raw materials that go in to
them to their finished form to ensure that they meet the standards of quality set by the
manufacturer
 Technology-the body of tools, machines, materials, techniques, and processes used to produce
goods and services and satisfy human needs.