Pharmaceutical marketing

A program that combines the study of basic and pharmaceutical sciences with marketing and management studies; and that prepares individuals for careers in pharmaceutical sales, marketing, management, and related fields within the health care industry.

1. Pharmaceutical Marketing Anand Gond B.Pharm , M.Pharm (Pharmacology), DIPSAR

2. Market Market is a place where business is conducted. Marketing consists of those efforts which effect transfer in ownership of goods and care of their physical distribution. It is the process by which products are made available to the ultimate consumers from their point of origin. In short marketing means the performance of business activities that direct the flow of good s and services from producer to the consumer. Pharmaceutical marketing is defined as “the performance of pharmaceutical business activities that direct the flow of the pharmaceutical goods and services from producer to consumers”

3. Difference between Pharmaceutical marketing and General marketing 1. Consumer does not have the choice to buy the pharmaceutical product. He has to purchase the drug prescribed by the physician. Similarly, seller is also bound to sell the drug which is prescribed by the physician. 2.Proper drug license is required to deal in the pharmaceutical marketing. 3. The person dealing in pharmaceutical marketing must be qualified in pharmacy profession because he has to deal with potent drugs. Little carelessness can prove to be harmful for the consumer .

4. Functions of marketing 1. Buying and assembling 2. Selling 3. Transportation 4.Storage 5. Grading 6. Packing and Packaging 7.Finencing 8. Risk bearing 9. Feed back information

5. Buying and Assembling Buying is one of the fundamental function of marketing. It can be considered as the first step in the process of marketing. The manufacturer buy raw materials and equipment's to manufacture its pharmaceutical products. Merchants or middleman have to buy the goods or products from various sources of supply to sell it at profit to consumers. On receiving the supply order by the supplier the goods are supplied .

6. There are four methods of buying: By inspection: In this method the buyer or his agent visit the premises of the seller for the inspection of the goods which is proposed to be purchased. By Sample: It is very common method of purchase of goods. The sample of goods is supplied by the supplier for its approval from the buyer. By description: It refers to the purchases of goods made on the basis of description of goods in the catalogue or price list of the supplier. By grade: The goods which are standardized and graded are purchased in the required quantity simply by mentioning their grades ISI, Agmark , I.P., B.P., U.S.P., etc.

7. selling Selling is another important function of marketing. Selling and buying are interlinked with each other. In pharmaceutical marketing the sale of a particular brand of the medicine depends on the Physicians. So pharmaceutical manufacturers approach the physicians through its medical representatives. They try to convince the physicians to prescribe theb medicines manufactured by its firm.

8. Transportation It means the movement of goods and people from one place to another by systematic conveyance. Transportation perform the essential function of marketing. Mass selling and mass production are impossible without efficient economical transport. Effective transport facility has made possible trade within and between countries. It helps in stabilization of prices of commodities by movement of supplies from surplus to deficient areas.

9. Storage Storage is another essential function of the marketing process. It involves the making of proper arrangement for retaining of goods in a perfect state till they are needed by the consumers and are to be taken to the market place. Modern production is carried out in anticipation of demand rather than in response to specific order of consumers. So manufacturers need proper storage of their products to ensure continuous availability to the market. It helps to maintain stability of prices. It helps to ensure the availability of the goods throughout the year in spite of the fact that the same grows or is produced only during the particular season.

10. Storage facilities: Storage facilities are provided by three types of warehouses: Private warehouses: These are owned by big business concerns or whole sellers who use them for storage of their own stocks. Public warehouse: These warehouses are operated by public firms which provide storage facilities to the general public for a certain charge. It may be owned and operated by an individual, a cooperative society , a dock authority , they required a license from the government. Bonded Warehouse: These warehouse are licensed to accept imported goods for storage until the payment of custom duties are made. These are situated at ports.

11. Grading Grading is an important process in the function of standardization. Standard is measure or designation of a particular quality which is decided on the basis of size, color, shape, strength, chemical content etc. In case of pharmaceutical products, grading is done as I.P., B.P., U.S.P, depending upon the standards maintained as per the pharmacopoeia. Sorting out the different types of commodities in accordance with the particular established standards and then classifying them into different group.

12. Advantages of Grading 1. It assures goods of standard quality to the consumers. 2. It enables the manufacturer to produce standardized goods. 3. It enables the seller to sell by sample and description. 4. It facilitate hedging and future trading because price quotations and market reports accurately conveys the demand and the supply. 5. It facilitates distribution of goods at every stage. 6. The standard goods eliminates uncertainty in purchasing and enables the seller to get better price for the product.

13. Packing and Packaging: The products after their manufacture, are required to be packed properly It protects the products from deterioration, exposure, pilferage It facilitates handling and use of products It ensure the supply of product of right quality, quantity and weight It reduces the cost of transportation and storage It can be easily stocked in retail drug store which have not any space.

14. Financing The provisions of funds are essential for the meeting of various requirement of marketing. The marketing concerns require both fixed and working capital. The wholeseller , retailer, commission agent, broker, cooperative undertakings of sales department of a manufacturer need relatively large amount of capital for the purchase of goods, resale,paying of wages, salaries. The capital required for this purpose called working capital. Similarly fixed capital required for the purchase of land, building, machinery, furniture and other office appliances.

15. Sources of Finance Owned Capital: Its contribution by owner, sole proprietor, partners, shareholders. Loan Capital: raised from individual banks and financial institutions. 1. Long term finance: fixed asset such as land, building, machinery. 2. Medium term finance: raised through shares and debentures. 3. Short term finance: Raised by trade credit, bank credit, installment.

16. Risk Risk means possibility of loss likely to occur due to some unforeseen events such as theft, fire, flood, cyclones, earthquakes, the loss arises due to risks can be protected through insurance contracts. Marketing risks are of four types: 1. Economic Risks: arise due to changes in market economic conditions. A) Time risk: arise due to time gap between purchase and sell commodity. B) Place risk: difference in price of same commodity at different place

17. C) Risk of changes in demand: These days goods are produced in anticipation of demand. If the demand does not come up to expectation of the producer at the time of the marketing of the product the profit of the producer may be reduced. D) Risk of competition: A producer and a merchant have both to face risk of losing a demand of its product due to activities of its competitors. Natural Risk: Arise due to natural forces fire, flood, storm, earthquake, lightening. Human risk: risk arise due to social hazard, pilferage, manmade factors, change in protocol of company.

18. Political Risk: These risk arise by changes in government and its policies, the change made by government in taxation, licensing, labor laws, industrial policies, The above risk can be reduced by The business can be insured against natural calamities risks and human risks. The industrial machinery can be thoroughly examined before operation in order to prevent the accident. The labor problems can be solved immediately on priority to avoid any loss in future Market research should be done carefully.

19. Feed back information Feedback information needed for proper running of business. The management collects information regarding demand supply, latest trend of market , package size There are two sources from which the information can be collected. Internal Sources: Statistics of sales turnover, advertising expenditure, transport cost External Sources: these may be primary sources such as market information by salesmen , dealers , consumer. The secondary sources trade press, trade association, published surveys.