BASIC CONCEPTS OF MARKETING MANAGEMENT.ppt

MARKETTING Management

1. MARKETING MANAGEMENT

2. PHARMACEUTICAL MANAGEMENT
PROGRAMME
•Purpose:
For selling of product.
PHARMACEUITCAL MARKETING:
Subspecialty of marketing.
System of business activity to plan,
price, promote & distribute pharmaceutical
products to the target market in order to
achieve organizational objectives .

3. MARKETING
Marketing & selling two sides of a coin are
interrelated to each other but different meanings.
Marketing is wider in its scope than selling.
Starts with product idea & end with customer
satisfaction.
Marketing is a total system of interacting business
activities designed to plan ,price, promote &
distribute want satisfying products & services to
present & potential future customers.

4. SELLING
Important function of marketing
Concerned with the transfer of goods &
services to the customers for exchange of
money

5. DIFFERENCE BETWEEN SELLING &
MARKETING
FEATURES MARKETING SELLING
SCOPE
Muchwider.
Includes all activities starting
with an idea of producing a
product to satisfy customers
needs & ending with customer
satisfaction .
Limitedin scope.
Includes the activities
undertaken to secure or
distribution of products
already manufactured.
OBJECTIVES
Profitearning through
satisfaction of customer.
Concentration on sale volume
& profit earning by selling
more quantity of products.
MAINCONCERN
Customer’s satisfactionPhysical transferof goods
ORIENTATION
Consumer oriented. Production oriented.

6. Difference between general marketing
& pharmaceutical marketing
Pharmaceutical
marketing
General marketing
INVOLVEMENTOF THIRD PARTY. WITHOUT INVOLVEMENT OF THIRD
PARTY.
Patient has no role in selection of
drugs.
Physician influences drug selection
& utilization.
Physician regarded as third party.
Consumercan buy any product of his
own choice.
No involvement of third party.

7. Difference between general marketing
& pharmaceutical marketing(contt.)
Pharmaceutical marketingGeneral marketing
COEXISTANCEOF BENEFCIAL & SIDE
EFFECTS IN THE SAME PRODUCT.
RAREEXISTANCE OF SIDE EFFECTS.
Pharmaceuticalproduct has multiple
side effects.
All side effects must be disclosed to
prescriber.
A right dose & right drug can cure a
disease
Wrong dose or wrong drug may lead to
severe complications & unwanted side
effects.
Generalproduct seldom has side effects.
More beneficial effects.

8. Difference between general marketing
& pharmaceutical marketing(contt.)
Pharmaceutical marketingGeneral marketing
AFIELD DOMINANT IN DETAILING NOT DOMINANTIN DETAILING
Highlytechnical
Critical matter
Detailing-is a drug promotion achieved
by a personal contact with the medical
professional using face-to-face two way
communication .
Not a technicalmatter
Detailing is not dominant in this field

9. Difference between general marketing
& pharmaceutical marketing(contt.)
Pharmaceutical marketingGeneral marketing
CRITICALLYCINTROLLED MARKETING
ACTIVITIES
NO CRITICALCONTROL NEEDED
Allactivities require licenses
Self regulation & compliance with strict
internal & external standards &
specifications.
All activities don’t requirelicenses
No strict control

10. Difference between general marketing
& pharmaceutical marketing(contt.)
Pharmaceutical marketingGeneral marketing
RESTRICTIONON ADVERTISMENT NO RESTRICTION ON ADVERTISMENT
Selfmedication & misuse of drugs
harmful so direct advertisement of drug
products prohibited.
Sales of product is result of extensive
advertisementdirectly to ultimate
customers.
TECHNICAL MARKETING NO TECHNICAL MARKETING
Pharmaceuticalproduct is highly
technical in nature requires technical &
skilled person.
Provide full information to prescriber.
Notechnical as pharmaceutical product
marketing
Rare side effects so no need to provide
all information to customers.

11. BASIC FUNCTIONS OF MARKETING
EXCHANGE FUNCTION:
1-Buying :
Fundamental function of marketing.
Involve following steps:
Assessing total material requirement.
Deciding max.quantity to purchased
Finding out best supplier
Calling for quotations & tenders
Placing the order
Receiving the goods & inspection
Sending goods for storage
Checking bill & making payment.

12. BASIC FUNCTIONS OF MARKETING
(contt.)
2-selling:
ultimate Aim of a firm & vital part of a business.
If no sale > no profit> business can’t survive.
Important for future planning & provide basis for future
production strategies.
It is process of
Finding customer >creating demand > finally transferring goods
BUYING
MANUFACTURE
R,DITRIBUTOR,
WHOLESALER,
RETIALER
SELLING

13. BASIC FUNCTIONS OF
MARKETING(contt.)
PHYSICAL SUPPLY FUNCTION:
1-STORAGE:
Keeping, holding & preserving goods temporarily.
On large scale storage > warehousing
Ensures unrestricted material supply.
2-TRANSPORTATION:
Concerned with carrying goods from place from place of production to
place of their consumption.
Suitable transportation facilities are necessary for distribution of drugs.

14. BASIC FUNCTIONS OF
MARKETING(contt.)
ANCILLARY FUNCTIONS:
1-STANDARDIZATION:
Means products are identical in terms if quality &
description and to conform to predetermined standards.
All pharmaceutical products are standardized. E.g. tablets,
capsules etc
2-GRADING:
Classification of goods into well defined units possessing
similar characteristics of size,shape,colour etc.
Crude drugs grading >percentage of active ingredient.
Drug products > by mentioning name of official compendia.

15. BASIC FUNCTIONS OF
MARKETING(contt.)
3-BRANDING:
Act of giving a proprietary name ,a term, a symbol, or a
design to a product in order to distinguish it from others.
For Advertisement on large scale it is necessary.
4-FINANCING:
Finance or capital is backbone of any business.
Must have clear strategy of financing its operations.
Finance is required for every operation.

16. BASIC FUNCTIONS OF
MARKETING(contt.)
5-RISK BEARING:
More decision making condition is a state of risk.
Many risks are involved at every stage:
Accidental fire
Theft
Flood
Price reduction
Change in demand & supply etc
6-FEEDBACK INFORMATION:
Basic market function
After collection of the relevant information from market,
information feedback involves conveying it to the top
management.

17. MARKET MANAGEMENT
Required for success of firm
Concerned with the direction of all targeted activities to Attain
market objectives.
Management process consists of:
Planning of marketing program:
Setting of goals and selecting the marketing strategies to reach these
goals.
Its implementation:
Includes organizing, staffing, & directing the actual operation of
organization.
Evaluation of its performance:
Performance compared with goals.
Analysis of performance is used for setting of future goals & plans.

18. MARKET STRATGIES
1-MARKET SEGMENTATION & TARGETING:
Dividing the total marketing into small segments
Known as target segments.
Each segment has different needs
SEGMENTATION
COMPARTMENTALIZAT
ION.
On the basis of
physician specialties.
GEOGRAPHICAL
SEGMENTATION.
Market is divided into
diff. regions.

19. MARKET STRATGIES(contt.)
2-MARKET MIX:
Set of four elements.
4Ps > product,price,place,promotion
These are controllable factors.
Uncontrollable factors >external factors
e.g. compition,patent laws, political situation, rules
& regulation.

20. PHARMACEUTICAL MARKETING AS
CAREER
Broad field with variety of tasks
Job entry as a medical representative
Lack of job structure—girls unfit for them
Non technical detailers and managers
presence results in low regard for drug
detailers.
Current trend for joining this field has been
increased.
Manager think prestigious for a company to
be represented by qualified pharmacist.

21. PHARMACEUTICAL MARKET
OPENINGS
Medical representative:
Product specialist
Field manager/regional manager
Product manager
Country/national sale manager
Depot manager
Retail manager
Pharmaceutical advertising
New product planning or sales planning
Market research
Industrial research
Medical writing