Marketing

and
Pharmaceutical
Market

Subject: PHARMA MARKETING

MANAGEMENT

Class: FINAL Y. B. Pharm (SEM-VIII)

Presented By
Mr. H. v. Patil
Assistant Professor
SOPS, SGU
 INTRODUCTION
The term ‘market’ may be defined in terms of
gaps that separate parties to an exchange.
SPATIAL

TIME

PERCEPTION

QUALITY

VALUE

OWNERSHIP
Marketing is perhaps the most important
aspect of modern business management.
A market analysis and research are vital for
modern business.
 Pharmaceutical marketing do not differ
from general marketing and both are based
on the same principle.
However, in case of pharmaceutical products
consumer is left with little or no choice of
his own in the selection of any drug product.
 The decision is made by physician.
 Definition-:Marketing
An American Marketing association as defined,
“Marketing is the process of planning and
executing the conception, pricing, promotion and
distribution of ideas, goods and services to create
exchanges that satisfy individual and
organizational goals”

Philip Kotler father of modern marketing says

“Social and managerial process which individual and
groups obtain what they need and what through creating
and exchanging product and value with others”
 Definition-:Marketing
The action or business of promoting and selling
products or services including the market research
and advertising.

Marketing is a process or a set of processes used to

understand the target audience better, develop a
valuable offering, communicate and deliver value to
satisfy the needs, wants, and desires of the target
audience at a profit.
 Objective of marketing
To analyze marketing problem and suggest
suitable solution.
To develop policies and their
implementation for good results
To derive intelligent appreciation of modern
marketing practice.
To develop successful distribution.
To analyze existing marketing function and
remove unnecessary procedures.
 The marketing management process has six
distinct components:
1) Analysis of the environment, competition, and the
organization, which leads to identification of marketing
opportunities;
2) Study of the market and identification of distinct
market segments;
3) Marketing strategies specifically designed for the
chosen market segments;
4) Detailed planning of marketing programs and activities
created to achieve the previously set strategic
objectives;
5) Organization and implementation of a network of
In simple terms, marketing is an umbrella that
includes:-

Identifying the unfulfilled needs, wants, and

desires of the target market,
Developing a valuable offering that satisfies
the unmet needs,
Communicating the value to the target
audience,
Delivering value to meet the needs, wants,
and desires of the customers, and
Earning a profit.
 Market
According to Clark,
"A market is a center about which or an area in which the
forces leading to exchange or title to a particular product
operates and towards which the actual goods tend to
travel".

According to Mitchell,
"Market for most commodities may be thought of not as a
geographical meeting place but as getting together of
buyers and sellers in person, by mail, telephone, telegraph
or other means of communications
What is science?
What is Art?
Marketing is both science as well as an art.
It a based upon certain laws and principles which can be used in the best
possible way to solve the problem but it is not like a pure science. So, it
can be said that marketing s a science but not pure science.
Marketing is also an art which covers human activities of a wide scope.
As an art, if creates profits to firm, creates interest in the mind of users and
develops the standard of living.
General concept:- Traditional concept

Exchange
Concept

Societal Production
concept Concept

Marketing Product
concept concept

Sales
Concept
 General concept:- Modern concept
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What Is The Purpose Of Marketing?
1. Identification of the goals and needs
of the customers,

2. Development of offerings that provide

value to the customers, and

3. Communication and sale of the

product to earn profit
 Importance of marketing
 It enquires: 
It is through market research that business understands the
actual needs, wants, and desires of the customers. 

 It builds: 
Marketing helps the business produce what is actually
needed in the market.

 It informs and engages:

Communicating about the brand and the offering is a huge
role that marketing plays.
 It sells: 
It helps the company to make money by attracting
customers, making them buy the offering, and reaching the
set end goals.
 It sustains:
Marketing makes sure the company and its offering
sustain for the long run by adapting to the changes in
the business environment.

 It
builds identity: 
Marketing builds identity.

 It grows:
Marketing is an essential function to ensure the smooth
growth of the business. It helps the business expand its
customer base, increase sales, and build a brand.
Scope Of Marketing

The Knowledge and skill of marketing management

groom the people for taking a challenging role in
Sales and Product management.

Market offering is a combination of goods, services,

ideas, persons, places, information, etc.

Offered to a market to satisfy specific needs and

wants of people.

Market offerings are not limited to physical goods

Market Research: 
Researching consumer demands and consumer behavior.

Product Planning and Development: 

Planning and developing the offering according to what’s
needed in the market.

Product Pricing: 
Pricing the offering according to the product value and the
buyer’s paying capacity to maximize profits.

Distribution: 
Distributing the offering, so it is available wherever and
whenever the customer demands it.
Promotion: 
Communicating the right message that results in
demand creation.

Sales:
 Offering incentives that increase sales.

After-Sales:
 Providing after-sales support to the customer to
maintain a good brand image in the market.
 Marketing Vs Sales
• While sales and marketing have the same goal –
generate revenue and increase the profits of the company,
there’s a big difference between them.

• Marketing is an umbrella that includes all the activities

that result in meeting the needs, wants, or demands of the
customers at a profit. 

• Sales, on the other hand, is a process that results in a

transaction between two or more parties in which the
buyer(s) receive the offering and seller(s) get something of
value in return which is usually money.

In simple terms, sales is a subset of marketing. 

 Marketing Sales

A transaction between two or

Systematic planning,
more parties where the buyer
implementation, and control of
Definition receives the offering and the
business activities to fulfill the
seller gets something of value in
needs of the customer at a profit.
return

Broader approach that involves

identifying, anticipating, and Narrow approach to make the
Approach satisfying customers’ customer’s demand match what
requirements with the purpose to the company offers.
make profits.

On fulfilling the customers’

Focus Fulfill sales volume goals.
need and making profit out of it.

Strategy Used Pull Push

Horizon Long Term Short Term

 Marketing Sales

Customer satisfaction Profit making

It emphasizes on customers need It emphasizes on product and

Emphasis
and production is done after production is done is done
knowing customers need and without knowing customers
requirement. need.

Conversion of consumer needs Conversion goods into each is

Activity
into goods is the major activity the major activity

Price determined by consumes

Price determined on the basis of
Price and then basis of price. Cost is
cost incurred.
determined.

Narrow scope-covers planning,

Wider scope-transfer of goods
Scope pricing, advertising and
from seller to buyer
marketing research.
 Marketing environment

External
Internal Factors
Factors
Employees,
Customers,
Shareholder Political, Legal,
Social, Technological,
s, Retailers Economical

and
Distributors
 Marketing Environment encompasses the
marketing team within an organization and
includes all the outside factors of marketing
that affect the team's ability to develop and
maintain successful customer relationships
with their targeted customer group.
 g
environm
Types of marketing environment
ent

Macro
Environ
ment
Internal Environment

• The Internal Marketing Environment includes all the

factors within the organization and affects the overall
business operations.
• These factors include labor, inventory, company
policy, logistics, budget, capital assets, etc.
• These factors can be controlled.
Microenvironment-
• The Micro Marketing Environment consist of all those
factors that are closely associated with the operations
of the business and influences its functioning.
Customers
• Customer's needs and wants is main priority of every
business.
• Each marketing strategy is customer oriented that
focuses on understanding the need of the customers
•Offering the best product that fulfills their needs.
Employees
• Employees are the main component of a business who
contributes significantly to its success.
• The quality of employees depends on the training and
motivation sessions given to them.
• Thus, Training & Development is crucial to impart
marketing skills in an individual.
Supplier
• It is crucial to identify the suppliers existing in the
market and choose the best that fulfills the firm's
requirement.
Retailer & Distributors
• Being in direct touch with customers they can give
suggestions about customer's desires regarding a product
and its services.
Shareholders
• Shareholders are the owners of the company, and every firm
has an objective of maximizing its shareholders' wealth.
• Thus, marketing activities should be undertaken keeping in
mind the returns to shareholders.

Government
• The Government departments make several policies viz.
Pricing policy. credit policy, education policy, housing policy,
etc. that do have an influence on the marketing strategies
• A company has to keep track on these policies and make the
marketing programs accordingly.
General public
• The business has some social responsibility
towards the society in which it is operating.
• Thus, all the marketing activities should be
designed that result in increased welfare of the
society as a whole.

Competitors-
• Details of competitors enables a company to
design its marketing strategy according to the
trend prevailing in the market.
Macro Environment
The Macro Marketing Environment consist of all
those factors that exist outside the organization
and cannot be controlled.
These are also called as PESTLE framework.

Macro Environment

Techn
Politi Econo
Legal Social ologie
cal mic
s
Political & Legal Factor
• The political-legal environment consists of
laws and policies of a country.
• With the change in political parties,
several changes are seen in the market in
term of trade, taxes, and duties, codes and
practices, market regulations, etc.
• So the firm has to comply with all these
changes and the violation of which could
penalize its business operations.
Economic Factor
• The economic environment affects the
purchasing power and spending patterns of the
buyers.
• In the case of recession, the marketing practices
should be different as what are followed during
the inflation period.
• The following are the different factors that form
an economic environment like Interest Rete,
Gross Domestic Products (GDP), Gross
National Product (GNP), Inflation, income
distribution, Government funding, Other
significant economic variables.
Social Factor
• The social-cultural component of a macro
environment is formed using values, lifestyle,
culture, beliefs, of the target audience of a
business.
• The social-cultural environment varies from one
region to another region. since business operates
in a society and has some responsibility towards
it
• Also, the companies are required to invest in the
welfare of general people by constructing public
conveniences, parks, sponsoring education, etc.
Technological Factor
• The firms have to keep themselves updated as
technology is advancing day by day, so that
customers needs can be met with more
precision.
• The technological environment consists of
research and development in technology,
innovation, inducement of technology, and
technical alternatives, etc.
 Industry and Competitive analysis
(ICA)
Industry:- (set of seller) derived from Latin Word

“INDUSRIA” means diligence, hard work

Industry is a group of similar firms who's products have

similar/same attributes so that they compute for same buyer.
e.g.
Paper industry
Bank industry
Steel industry

Set of buyer?
Aim of ICA:-
To known the factors that affects the
performance of the industry , and as well
the performance of the firm within the
industry.

Competition:-
It is market structure which provide fair
price and value for money to customer.
Industry Analysis
Industry Analysis is business research that
focuses on the potential of an industry
It is significant business function
performed by proprietors and other
management experts to evaluate present
business environment.
It is effective market assessment tools
designed to provide a business with an idea
of particular industry.
 Power
manipulated
Economic
by Supplier
and buyer

Condition of
Political competitors

Possibilities
market of new
market
entrants
Importance of Industry analysis
IA gives an impartial view of the primary
forces, attractiveness, and success factors
that define the structure of the industry.
Firm must comprehend its operating
environment to formulate an effective
strategy, position the company for success
and make effective use of limited sources of
the small business.
Identify the strength and weakness relative to
the industry.
 Success factors for IA
Ability to appeal new customer.
Successful advertising campaigns
(success is measured on the
increase in sales)
Managing cash flow
Strong distribution channel
Strong technology capability
Sustainability of the business
Managing human resources
Ability to hold existing customers
Managing service or product
Managing revenue growth and
profit
Low cost production structure
Location to customers
Ability to attract and retain good
employees
Utilization of operating capacity
Collect basic data :- Annual sale
in the value for 3 yrs

Annual unit or volume sale for last 3 yrs

Trend in the price for last 3 yrs

Measure of capacity and

possibly capacity utilization

Competitors by name, by website and their

market share
Industry analysis provides a basis upon which
analyst evaluate and decide about their corporate
goals and it helps them develop insight into
developing appropriate strategy.

Two Aspect should be considered

a) Type of industry and position of new venture will
fill in the industry
b) Aspect deals with industry trends and the
environmental, economic, social, technological,
political, regulatory forces and trends.
Industry life cycle
Introduction
Maturity Decline
Growth
Industry
Sale

Time
Emerging Industries-
Industries that are reasonably new.
These are often due to advances in technologies
Example: Social media, ecommerce,

Fragmented Industries
Industries that have no dominant competitors that
have significant market share.
Example. Fast food, Fast casual food, Groceries,

Mature –
Industries that have been around for along time and
in which consolidation has led to only a few firms
with significant market share.
Examples: Automotive Airlines, Computer manufacturing.
Office productivity software
Declining
Declining industries are mature industries that
have passed their peak and are seeing regular
declines in revenues that have been going on for
a long time and which do not appear reversible.
Examples Newspapers, tobacco products, circuses,
photographic film, shopping centers, etc

Global
Industries that have a global presence and
must execute a global strategy.
Example Automotive, McDonalds, Steel, OL Shipping,
Industry life cycle relates to the five
competitive forces
New Entrant
Buyer
Supplier
Substitutes
Rivalry among firms
 ANALYSING THE INDUSTRY
Michael Porter, created powerful tool to analyze these
five forces known as Porter Five force Analysis

Bargaini
Threat ng
of power of
substitut Industry
es Rivalry Supplier
Bargain s
ing Threat
power of new
of entrants
Bargaining power of Suppliers
An industry with many small suppliers and few
large buyers, the bargaining power of suppliers
will be weak and vice versa.
Certain strategy such just in time manufacturing,
even just holding low stocks increases
dependency on suppliers.
To reduce the bargaining power of suppliers,
strategies are to maintain a diverse base of
suppliers or to make a few suppliers dependent on
your business.
The relationship between the industry and its
suppliers is symbiotic, it must work for both sides.
 Bargaining power of buyer
In most cases, buyers shop around for best prices
and thus exert downward pressure on prices.
Factors affecting buyer power switching costs
are low, which is generally the case with
commodity products.
Buyers are large compared with the supplying
industry.
Knowledge of suppliers costs considerably
increases the bargaining position of buyers.
Threat of Potential entrants:
New entrants to an industry add capacity,
and if the capacity added is greater than
growth in demand, this will reduce
profitability.
The threat of new entrants is low in cases
where
◦ industries are capital intensive
◦ economies of scale are a key factor
◦ access to resources is limited
◦ buyers switching cost are high
Threat of substitution of an alternate product
or service

• Substitute products are products that perform the

same function or satisfy the same need as an
existing product.
• The threat from substitute products is particularly
severe if the substitute product is cheaper or
more cost effective.
• A strategy to deal with competition from
substitutes is to start making or supplying the
substitute.
Rivalry among the firms in an industry:
 The intensity of competition, or rivalry, will have a
significant impact on the ability to obtain adequate
margin.
 A Industries with one dominant firm are generally more
stable than fragmented industries where one competitor
may try to achieve dominance.
 The degree of concentration or the extent to which the
industry is monopolistic has an important effect on the
behavior of competitors.
 If an industry stops growing. the only way any
competitor can grow is by taking market share; in other
words, competition will intensify until some competitors
exit
Competitive Analysis
Definition:
Identifying company's competitors and
evaluating their strategies to determine the
strengths and weaknesses relative to those of
company's own product or service. A
competitive analysis is a critical part of
company's marketing plan
Direct, Indirect and Future competitors
Component of Competitive analysis
 Purpose
 To determine the strengths and weaknesses
of the competitors within market,
Strategies that will provide company with a
distinct advantage,
The barriers that can be developed in order
to prevent competition from entering into
market
Any weaknesses that can be exploited
 Competitive Analysis should include
Identifying company's competitors.
Obtaining information about company's
competitors Brand awareness-the
percentages of target market that are aware
of company's competitors
Evaluating their strategies Determine their
strengths and weaknesses relative to
company's brands
Analysis of Competitive Environment
Description of key competitors and their
market positioning.
Size of key competitors in units.
Market shares of key competitors.
Sales trends of key competitors.
Strengths and weaknesses of key
competitors compared to company's
organization's goods or services.
Consumer Buying Behavior

Consumers from similar background,

occupation and income levels may show a
different lifestyle pattern.
An individual buying behavior is influenced
by motivation, perception, learning, beliefs'
and attitude.
Consumer behavior analysis is the study of
how people make purchase decisions with
regard to a product, service or organization.
Attitude

Preferenc
es

Consumer
Buying
Behavior

Intention
s

Decision
s
It involves understanding a set of decisions
(what, why, when, how much and how often)
that the consumer makes over the time.
In general terms “Consumer is a person
who consume” especially an individual
belonging to a gender, age, sex, religion etc.
and who take product for own use and not
for sale to other.
Consumer incentives are known as 4 P‘s
Consumer incentives are known as 4 P‘s

Promotio
n
Product
4 P’s

Place Price
Allow you to answer several questions?
How consumes feel about alterative to their
preferred brands?
How consumers choose between the
alternatives?
How consumers behave while shopping?
How consumer behavior is swayed by their
surrounding environment?
How marketing campaigns can be improved to
more effectively influence customer behavior?
 Factors affecting
Psychological:
This is considered to be the most important
factor that affects consumer behavior.
Traits like: perception, motivation,
personality, beliefs and attitude are important
to decide why a consumer would buy a
product.
Personal
These are characteristics that are applicable to
individuals and may not relate to other people
in a group. These factors can include, age,
occupation financial situation and lifestyle.

Social
Social characteristics play an important role in
consumer behavior and it can include, family,
communities and social interaction, These
factors are difficult to assess while preparing
marketing plans
Geographical
The location of consumers also plays a role in
how they purchase products.

Process to carry Customer behavior Analysis

Segment your audience
Identify the key benefit for each group
Allocate quantitative data
Compare your quantitative and qualitative
data.
Apply your analysis to a campaign
 Industrial Buying Behaviour
The decision making process by which
normal organization establish the need for
purchase product and services and identify,
evaluate and choose among alternative brands
and suppliers.
Purchase decisions generally take a longer
time and involve many individuals from
technical, commercial, materials and finance
departments.
Factors affecting industrial buying behavior
Demand: Driver of industrial buying
Price:
Economy:
If economy is trending upward the company
may purchase more on expectation of a future
rise in sale and vice versa.
• Technological Changes
Changes in the technology that affect both
provision of goods and their own requirement.
Steps Involved
 1. Recognition of a need
The purchasing/buying process begins when
someone in the company recognizes a need that
can be met by acquiring goods or services

The company decides to develop a new product

and needs new equipment and materials to
produce this product.
2. Determining product specification and
quality characteristics
What performance specifications need to be
met?
 What types of goods and services should be
considered?
What are the application requirements?
What quantities would be needed?
3. Search for Supplier:
In this phase, qualified suppliers among the
potential sources is searched.
Periodic Supplier visits to all potential
company and create awareness.
This phase only involves making a list of
qualified suppliers.
4. Analysis of Proposal:
The lists of qualified suppliers are scrutinized based
on some critical factors.

Then the purchasing departments ask for proposals

to be sent by each supplier.

After evaluations, based on the specified criteria,

some firms are asked to come over for formal
presentations
 5. Selection of supplier
Each of the supplier's presentations are
ranked as per certain evaluation models.

The buying organization may also attempt

to negotiate preferred suppliers for better
prices and terms before making a final
decision
6. Selection of an order routine:
After the suppliers have been selected, the
buyer negotiates the final order, listing the
technical specifications, the quantity
needed, the expected time of delivery,
return policies, warranties etc.
 7. Post purchase review:
The final phase in the purchasing process
consists of a formal or informal review and
feedback regarding product performance as
well as vendor performance.

The buyer may contact the end user and ask

for their evaluations which are in tum given
to the supplier or he may rate the supplier on
several criteria.