Course Title: Pharmaceutical marketing and promotion Course Code: 102316 Course coordinator: Abeer Abu Ghosh Semester: second 2008 Marketing and promotion of pharmaceuticals Drug companies spend enormous sums of money to promote their products. In the year 2000, it was estimated in a study that over 13.2 billion USD was spent in the USA over promotion of pharmaceuticals. This is more than what is spent on R&D in those companies collectively. Promotion increases sales: This is an evidence based truth and it also affects doctors' prescribing habits in so many ways, sometimes even in writing a drug that they know is not the best choice for a patient. Marketing definition: creating customer value and satisfaction. Or a process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. i.e: It is simply the delivery of customer satisfaction at a profit. Market Definition: It is all actual and potential buyers. What are consumer's needs, wants and demands? Needs: A state of felt deprivation for basic items such as food and clothing and complex needs such as the need for belonging e.g I am hungry. Wants: A form that a human need takes as shaped by culture and individual personality e.g I want a hamburger and a soft drink. Demands: Human wants backed by buying power .i.e. I have money to buy this meal. Promotion definition: to encourage the existence or progress of an object, including a product, service, an idea or an organization. Two major objectives of any promotion program: 1. Information. 2. Persuasion. How do consumers choose among products or services? We have two issues that will make a product or service a successful one: 1. Customer value: value gained from owning a product and costs of obtaining the product. (benefits/costs) or (what you get / what you give). Marketers can increase this value by increase benefits and decrease costs or increase benefits more than the increase in costs or decrease benefits less than the reduction in costs. 2. Customer satisfaction: the products performance in delivery value relative to the buyer's expectations (value delivered/expectations). Buying function: looking for and evaluating goods or services. Selling function: it involves promoting the product, and it includes the use of personal selling, advertising or other direct and mass selling methods. Marketing management philosophies: -consumers favor products that are available and highly affordable. -always improve production and distribution. -consumers favor products that offer the most quality performance and innovative features. -consumers will buy products only if the company promotes /sells the products. -focuses on needs, wants of target markets and delivering satisfaction better than competitors. -focuses on needs, wants of target markets and delivering superior value. Steps to be followed in a marketing plan: 1- Determine the nature of product or service you want to sell. Its design, quality, features and packaging. 2- determine its place, distribution, channels for best availability coverage, transport, direct or indirect. 3- determine price profitable for the company or attractive to customers, discounts, payment period, credit. 4- promotion: planning, where or how to advertise, advertising, sales ale, public relations. Connections with customers: Most marketers are targeting fewer, potentially more profitable customer while asking themselves: -what value does the customer bring to the organization? -are they worth pursuing? Focus has shifted in many companies towards: -keeping current customers. -building lasting relationships based on superior satisfaction and value. Direct connections with customers: Companies use technologies today.i.e telephone-available products, mail-order catalogues, and e-commerce such as www.amazon.com. Companies segment the market into groups and then they have to decide on how to target these particular groups, the choice of a viable segment is dependent on the following three key issues: 1-The marketing attractiveness of the target segment, its size, growth, price sensitivity and entry and existing costs. 2-The competitive dynamics in the proposed segment. How tough in the competition? How strongly do the competitions react to anew entrants? Is it feasible to carve out a niche in the market without strong retaliation from existing competitiors? Availability of substitute drugs? 3-the strength of the strategic advantage for the target segment. In the drug industry, one of ten starts out with a product with given strengths and weaknesses. The task of the target –market selection consists of searching for groups of customers for whom the product strength can form the basis for a strategic competitive edge. *market targeting: based on evaluating the segments with regard to its size, growth, effects of competitions, availability of substitute products, power of buyers or suppliers(competition),also company objectives or resources. 1-undifferentiated marketing: mass marketing such as coca cola. 2-differetiated marketing: targeted-segments such as hypertensive patients in a population. 3-concentrated marketing: one segment is stressed on. Rolls Royce car manufacturers concentrate their marketing efforts on potential buyers only. Product life cycle (PLC): This concept suggests that a product passes through four stages: 1-introduction. 2-growth. 3-maturity. 4-decline But it is not easy to identify the specific stage a product is in at certain points. It is difficult to forecast the sales level, length of each stage, the shape of the PLC. 1. Introduction phase: the company spends time to create awareness of its presence and here the profits are usually in the negative. 2. Growth phase: the customer accepts the product and an increase in sales is achieved here_ rapid growth. 3. Maturity phase : Rapid sales growth cannot go on forever. Slow down. 4. Decline phase: Change strategies. Re-place the product if possible. See handouts Stages of marketing: 1. Entrepreneurial marketing: Most companies are started by individuals who visualize an opportunity and knock on every door to gain attention. They are characterized by high levels of creativity. 2. formulated marketing: As small companies become successful, they will start hiring salespeople, establishing a marketing department that carries out marketing research, studies…etc. i.e the company is now more professional. 3. Interpreneurial marketing: This stage takes place when many large companies get stuck in stage two and so become non-creative and loose passion. Marketing channels: To reach a target market, marketers use three types of channels: 1. Communication channels: deliver and receive messages to and from buyers or targets. Examples: newspapers, radio, TV, posters, CD s, internet. These can be classified into: A. dialogue channels 2 way channels such as e-mail, toll-free numbers. B. monologue channels or one way channels such as advertisements. 2. Distribution channels: To display or deliver the physical product or service to the buyer or users. Distribution, wholesales, retailers are usually involved in the process. 3. Selling channels: To effect transactions with potential buyers….. i.e. Not only distributions, wholesales, but also banks, insurance companies that facilitate transactions. CHOOSING THE BEST MIX OF THE THREE IS DIFFICULT BUT A MUST! Competition: A critical factor in marketing management which includes all of the actual or potential rival offerings and substitutes that a buyer might consider. Types of competition: -Brand competition: A company sees its competitors as other companies that offer similar products or services to same customers at similar prices. Toyota and Honda. -Industry competition: A company sees its competitors as all companies that make the same product or class of products. (Honda vs. all car manufactures). -Form competition: A company sees its competitors as all companies that supply the same service Honda vs. all manufactures of all vehicles motor cycles, towers. -Generic competition: A company sees its competitors as all companies that compete for the same consumer dollars. HondaVS. All companies selling major consumer durables, foreign vacations, new homes ….etc. External forces affecting marketing of products: P.E.S.T: political, Economical, Social, Technological environments. Political: politics affect how a business is operated, decisions made by government or the presence of occupation affect our every day lives. (Legislations, policies). Economical: nationally and globally. Economy dictates how consumer behaves in society. Social: society forces as family, friends, media affect our attitudes, interests, opinions, what we buy, how we behave. If a change in structure of a population happens, this will affect the supply and demand of goods and services. Technological: The changes in technology are changing the way businesses are operated. Internet has a high effect. R&D departments are pressured to develop up to date technology products in order to survive the fierce competition in the markets. *Marketing mix principles: These are used by business as tools to assist in pursuing their objectives. The 4 p's are: the product, price, place, promotion These are controllable variables which must be managed carefully to meet the needs of the target group. Marketing Mix: 4 P‟s vs. 4 C‟s Product Customer solution Price Customer cost Place Customer convenience Promotion Customer communication 1) Product Strategies: When an organization introduces a product into a market, they must ask themselves a number of questions: - who is the product aimed at ? - what benefits will they expect ? - how do they plan to position the product in market ? - what differential advantages will the product offer compared to competitors ? A product must be viewed in 3 levels: Level 1: Core product: core benefit of our product. Level 2: Actual product: aim is to ensure that our potential buyers actually buy one from your company (i.e. add benefits to compete). Level 3: Augmented product: what additional non-tangible benefits can you offer ? warranties, delivery, after sale services. Product decisions Design (will it be the selling point for organization), Quality (consistent with the rest of marketing mix features: what features will you add that may increase benefits?) Branding: these have power of instant sales as they convey a message of confidence, quality and reliability. A company differentiates itself from competitors by branding. (Copy cats). 2) Pricing: It costs to produce, design, distribute and promote a product, thus the price must support these elements. Pricing is difficult and must reflect the supply & demand relationship. If too high or too low loss of sales. Pricing must take into account: 1- Fixed and variable costs. 2- Competition. 3- Company objectives. 4- Proposed positioning strategies. 5- Target group & willingness to pay. Pricing Strategies (Types of pricing): Depends on company‟s objectives: 1- Penetration pricing: low price to increase sales and market share. 2- Skimming pricing: initial high price, then slowly lowers it to make it available to a wider market. Objective: skim profits of the market layer by layer. 3- Competition pricing: set a price in comparison with competitors. 4- Product line pricing: pricing different products within the same product range at different price points. 5- Bundle pricing: to bundle a group of products at a reduced price. 6- Psychological pricing: consider psychology of price, i.e. 199 USD instead of 200 USD. 7- Premium pricing: price set is high to reflect exclusiveness of product. 8- Optional pricing: to sell optional extras along with the product to maximize its turnover, ex: in car industry. 3) Place: Distribute product to user at the right place and at the right time. Distribution must be efficient and is either direct (manufacturer consumer) or indirect (manufacturer wholesaler retailer consumer). Distribution Strategies: depends on the type of product. 1- Intensive distribution: to distribute low priced or impulse purchase products, e.g.: chocolates, soft drinks. 2- Exclusive distribution: limit distribution to a single outlet, highly priced items, as selling cars through exclusive dealers. 3- Selective distribution: a small number of retail outlets, e.g.: computers and TV‟s. 4) Promotion Strategies: Promotion definition: to encourage existence or progress of an object, including a product, service, an idea or an organization. WHO defines promotion of medicines as: All informational and persuasive activities by manufacturers the effect of which is to induce the prescription, supply, purchase and/or use of medicinal products. 2 major objectives of any promotional program: 1- to inform These conflict sometimes as the manufacturer is interested in selling and 2- to persuade persuading at the end of the day. The end point of any pharmaceutical information is to facilitate rational decision making of all parties involved in delivery and consumption of pharmaceutical care. But, unfortunately this end point conflicts usually with the second objective (to persuade). And the first objective (to inform) is being questioned because of the commercial interests of a major source of the information i.e. the manufacturer: he is interested in selling as much as possible. Promotional programs that convey information are very useful in assisting efficient market functioning and they usually provide decision makers and/or consumers that a certain product is available and other important information needed, so they can make their choices easily according to their preferences. Promotion is usually performed by well-trained “Medical representatives” or “Detail-men”. Economic theories believe that generation & dissemination of information is not free – it is costly. Thus it must not be excessive in such a way it may lead to raise the prices of products. Sometimes, it is used to reduce competition by creating barriers to new companies from entering the market. There must be regulations in countries to control proliferation of misleading messages and to restrict persuasive powers of promotion people. In 1992, FDA‟s commissioner (Kessler) declared that he is concerned with the statements made by researchers and medical experts at industry-sponsored activities i.e. they are indirectly under control of industry or the company- sponsoring that seminar or activity. So, in order for a statement to be considered credible, the activity must be: - Independent - Objective - Balanced - With scientific rigor. The FDA issued a paper regarding this to guide people on separating promotion programs from educational programs. A fundamental question in terms of pharmaceutical promotion is: - What are the implications for the public health and social welfare of the strict interpretations of the laws regarding the dissemination of information about pharmaceuticals? Federal trade commission (FTC) tries to evaluate misleading and/or deceptive advertising. Putting the patient first and doing promotion responsibility through truthful information is essential if we want promotional and education at same time. You gather information or something either by hearing or seeing it Promotional strategy of a company consists of: 1- Advertising: Any form of communication using any form of mass media or a controlled message in purchased time or space. It is non-personal and paid. Gathering information through advertising is either by hearing it or seeing it. Usually advertisers use both approaches to convey messages. Forms of advertising include: - Journals - Direct mail & e-mail - Bill boards - Newspapers - TV - Radio - Salespeople (dealers and wholesalers) - Newsletters - Directories & reference books (PDR) - Electronics (video material, internet) - Word of mouth. Journal advertising is designed to create awareness of a product while direct mail is designed to result in an immediate response such as calling an 0800 no. or completing a coupon and mailing it to a company. Alternatively this can be done via e-mail (cheaper). Driving forces for advertising are:- a. Competition b. short patent period c. generic companies are strong so you need maximum sales and profits within the shortest time possible. 2- public relations : Developing positive relationships with the public - develop and obtain favorable publicity and also being able to handle successfully any negative attention drawn to the company or product. 3- sales promotion : Used to obtain an increase in sales within a short term period e.g. money - off coupons, special offers for a day. 4- personal selling : One to one selling – word of mouth. 5- direct mail: To correspond or send News letters by mail to a named person among the targeted segment. This increases response and will increase the sales. Promotional strategies: Push and pull strategies: a. Push strategies: whereby the manufacturer concentrates some of its marketing efforts on promoting their products to retailers to convince them to stock the product .A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling and direct mail. b. Pull strategies: The manufacturer promotes their product among the target market to create increased demand. Consumers pull the product through distribution channels forcing the wholesalers and retailers to stock it . AIDA: Attention: grab attention Interest: hold through promotional features Desire: make desirable Action: purchase action SWOT Analysis: A tool used by organizations to help the firm establish its strengths, weaknesses, opportunities and threats. Used as a framework to help firms develop their overall corporate, marketing or product strategies. SW: of a company or product (internal factors _controllable by the company). OT: in the market (environmental _external factors-uncontrollable by the company). See handouts Is a method for integrating and cross-analyzing all of the data you Have collected in the market audit, situation audit and product positioning and identifying those opportunities which prove to be the best because your company and your product have the strengths To take advantage of them. A tool used by organizations to help the firm establish its Strengths Weaknesses, Opportunities and Threats (SWOT). A SWOT analysis is used as a framework to help the firm develop its overall Corporate, marketing, or product strategies Strengths and Weaknesses ( of the company or product), they are also known as internal factors which are controllable by the Organization on Opportunities & threats ( in the market/environment) are external Factors which are uncontrollable by the organization Who do a SWOT analysis From the situation audit, you know the major strengths and weaknesses of the company. In your market audit, you will have identified several market segments which are potentially viable for your product In your product positioning, you have established the actual position of your product in each segment. SWOT analysis is a technique that combines all of these things and will help you arrive at a strategy, tactics and objectives for a product The SWOT method is designed to help produce The optimum segment to attack and the reasons why The positioning 'message" to communicate and the reasons why. As a combination of above, the strategy that will bring success Tactical objectives and their priority A tactical plan that will meet corporate and product goals and objectives. A final check that you have carried out a complete market and product review Opportunities and threats They come out of the following areas Market segment Environment Competition Examples of the types of factors that have proved useful: Example list of opportunities: In the market segment Large segment size. High growth rate. High level of customer interest. High degree of acceptance. Many new customers. Low level of price sensitivity List of opportunities: In the environment Few government regulations Little negative public opinion. Growth economy. Competition: - few competitors - Weak selling power -no new products -little promotion activity Strengths and weaknesses These always come from within; that is, from the product itself or from The company. Examples of strengths (product). - Highly - efficient product -Very reliable. -Convenient packaging -Acceptable pricing. -Excellent technical back-up -High versatility -High market segment share -Good trade mark. -Excellent delivery Examples of strengths ( Company) - Large size -Excellent reputation -Adequate promotion budgets -- Productive R & D. -well-motivated sales force -Effective sales force -well-trained sales force -Excellent distribution -Excellent back-up information Consumer buying behavior: What influences consumers to purchase products or services? The Process of buying: 1- problem / need recognition 2- information search: start asking what is the solution? which brand ? ask friends…..etc. 3- evaluation of different options 4- purchase decision After evaluation, buying takes place . Post purchase behavior: 1. Doubts after purchasing sometimes takes place. How to make customers feel proud of their purchase? by advertising : he will feel comfortable that they bought it from a reputable and strong organization owns the latest advertised product. 2. Customer behavior decision making in health care: the decision here differs as he is not choosing. He is buying and payment is different too. In non- prescription drugs and herbal medicines, it is similar. 3. Consumer buying behavior – frameworks : The Economic man: Rational in their behavior, they like to maximize personal satisfaction through exchange, have complete information on alternatives, use information to make a choice . Socially- influenced people: Pressures, interactions with others, family, friends, social class. Personal influences: Personality, value beliefs, attitudes…… introverts (keep to themselves and buy via online or e- mail). Extroverts (outgoing, spend on entertainment) See Buying motivations handouts Promotion is sometimes used (when it is excessive ) to create a barrier to new companies from entering the markets . Sources of information for doctors and pharmacists include : - medical representatives - continuing medical education courses - conferences and conventions: some are sponsored by pharmaceutical companies . - colleagues - videos and electronics - discussion groups - newsletters and e-mails . ……….toll-free numbers to get a gift… - Medical journals designed to create awareness of a product. Targets of pharmaceuticals promotion : - pharmacists - doctors - nurses - dentists - insurance companies - hospital managers - company managers Some manufacturers see doctors as "learned intermediaries" and pharmacists as "Gate- keepers". FDA focuses on 6 terms in assessing pharmaceutical communications: - Content: truthful, balanced, does it match the approved labeling? - Context: what is the setting? How was faculty selected? - Audience: appropriate or not. - Medium of communication: appropriate for the audience? - Rationale of communication: does it have genuine educational merit? - Intent: does pattern of conduct demonstrate commitment to objective communication? Case I: It is OK to discuss an unapproved indication of an approved drug in a small group of experts or publish data in a journal but not a press conference! Case II: A company published results of an open uncontrolled study of a product saying it is superior to another product even though they have done a well-controlled study on the older one showing opposite results! Industry says that advertisements today help them to develop the drugs of tomorrow! The pharmaceutical industry argue that advertising helps to change the health habits of people they consult their doctors more and that advertising in journals remains the primary source of doctor‟s up-to-date information. They say that even breakthrough drugs without advertising may fail! Example: Orinase® was the first oral hypoglycemic agent by Upjohn instead of insulin, but was not promoted well and was thus not so successful due to lack of awareness of doctors about its obvious advantages. A new product is new only once! The first 6 months of a product‟s life are very determining to its success. Critics: Promotion is sales Scientific symposia are marketing conventions. Free samples are educational materials. TV commercials are public service announcements. Direct to consumer advertising (DTCA) Used mainly for a group of drugs called: Life style drugs as those used for insomnia, arthritis, heartburn, allergy, impotence some may be OTC and some may be Prescription-only drugs. “Care for the patient is best served by care for the patient” i.e. patient received the best care when doctor, pharmacist are truly concerned about his well – being. “Educate and sell at the same time” "A new product is new only once". Disease awareness campaigns educate patients about a disease will increase visits to doctors and eventually increase sales, other wise, many patients will continue using wrong medications, high expenses, risk of trauma of surgeries – days missed of work – increase health care on country. “Responsible promotion is valuable to society” Information in advertising must be true. Knowledgeable patients are usually treated better by doctors and pharmacists which results in a better care outcome. In newspapers or TV costly FDA says that if a company wants to do a DTCA it must be for an ethical drug and include all information that is on the package insert for the drug i.e C.I, dose, S.E …. A whole page in a newspaper, 5 minutes on TV !! costly!! Due to these ads, doctors are more willing to prescribe drugs that patients request and on the other hand, patients are more aware of their problems and treatments, and thus more encouraged to see their doctors. In addition, better-educated patients usually receive better care from their doctors. But, millions of TV advertisements can‟t do what a pharmacist (gate-keeper of pharmaceutical industry) or a doctor can do in one day he can just simply wipe out a product with one statement to the patient or the opposite! Two types of ads: 1. General health message (no mention of drug's name). 2. Product - specific ads. There are a number of elements of a pharmaceutical product that contribute to its advertising profile: - The name – how it sounds and how easily the name can be recalled and written? - The image – what differentiating features of the product are remembered by way of promotional message, including efficacy and safety? - The price – is this an identifying feature that overwhelms the image? - The presentation – how it cooks, feels, what comes with it? - The acceptance – how it is accepted by customer i.e. doctor or consumer? - The support – who are, what are the backers of the product? Types of DTC ads: See handout - Help seeking: alert ads. About disease and symptoms Company is identified but not the drug's brand name. patients are instructed to see their doctor. - Reminder ads: only mention drug's name. - Product claim ads. Mention the name of the drug, use – urge people with a certain disease to see their doctor. Issues raised by DTC advertisements involve questions of: - Public health. - Corporate responsibility. - Advertising ethics. - Consumer capacity to understand complex medical info. DTC ads are allowed in US and New Zealand only. DTC ads concentrate on powerful emotional factors such as: - Value of one‟s health or loved ones. - Fear of death. - Fear of disability. - Responsibility of taking care of one‟s health and that of loved ones. - Self consciousness and vanity. - Shame. - Vulnerability of people who are aging, ailing. No mention of non-pharmacological alternatives to treatment in these ads. DTC ads are claimed to increase patient compliance. DTC ads are claimed not to interfere with doctor / patient relationship and to enhance there communication with them – e.g ask better questions. It may however pressure some weak doctors to prescribe advertised medicines without giving it deep thoughts of whether this is the best choice for the patient in front of him. Statistics: 1\4 people who visited doctors after a DTC received a new diagnosis of a condition. Regulations on Marketing and Promotion: FDA_DDMAC (Division of drug marketing advertisement and communication) commented on statements made during activities. In order for these statements to be credible, the activity must be: Independent Objective Balanced With scientific rigor Federal trade commission (FTC) tries to evaluate misleading or deceptive advertising. FTC Requirements: Advertising must be truthful and non-deceptive Back up claims with competent and reliable scientific evidence, including tests, studies or other objective data 1973: National Association of Broadcasters and the Consumer Healthcare Products guidelines for TV advertising- updated periodically TV advertising guidelines for OTC products 1 Advertisement should: Comply with all relevant applicable laws and regulation Urge the consumer to read and follow label directions Contain no claims of product effectiveness unsupported by clinical or other scientific evidence, responsible medical opinion or experience through use TV advertising guidelines for OTC products 2 Present no information in a manner that suggests the product prevents or cures a-serious condition that must be treated by a licensed practitioner Emphasize the uses, results and advantages of the particular product Reference no doctors, hospitals, or nurses unless such representations can be supported by independent evidence TV advertising guidelines for OTC products 3 Present no negative or unfair reflections about competing nonprescription drug products, unless those reflections can be supported scientifically, and presented in a manner so consumers can perceive differences in the uses. Dietary Supplements Are not regulated as "drugs" under the FD& C Act cause they are not intended to diagnose, cure or treat a medical disease or condition; Consequently, they do not follow the Drug Facts format They are not regulated by the FDA or any other state or federal governmental agency, a s stringently as prescription or GTC drugs Dietary supplements are regulated under the federal Dietary Supplement Health and Education Act of 1994 (DSHEA) American medical association (AMA), Pharmaceutical manufacturing association set up guidelines on gifts that are acceptable to doctors from pharmaceutical industry: Acceptable Of modest value Related to doctor's work (pens, note pads…) Social events, modest meals as part of an overall program. Unacceptable Cash payments Extravagant gifts Reimbursement for travels, hotels, personal expenses, time FDA regulations are usually concerned with: 1. False or misleading statements made by manufacturers 2. Unapproved new drug claims 3. Improper promotion especially if investigational drugs and nature of promotion. The FDA regulates prescription drug promotion The Division of Drug Marketing, Advertising, and Communications (DDMAC) within the Center for Drug Evaluation and Research regulates prescription drug promotion at the FDA. It protects the public health by helping to ensure that prescription drug information is truthful, balanced, and accurately communicated. This is accomplished through a comprehensive surveillance, enforcement and education program, and by fostering optimal communication of labeling and promotional information to both health care professionals and consumers. For all ads and promotional materials, sponsors (companies) submit voluntarily their drafts materials for comments before use to the DDMAC and if it is not according to regulations, they will send letters of warning or suggest alterations. Also DDMAC tries to increase compliance of industry through educational programs as advisory comments, guide lines, websites, postings i.e. discussions, presentations or by publishing all warning letters on the internet and advisory comments. Heavy advertising can have dangerous effects on prescribing habits of doctors, and this is especially true in developing countries e.g 41 % of Pakistani doctors prescribed a drug with well known dangers to treat diarrhea in children and 14% of doctors prescribed anabolic steroids as appetite stimulants. 95% said that medical reps. and sales people were their main source of information. Data base being launched by WHO/ NGO on drug promotion www.drugpromotion.info The purpose is: - To document volume of inappropriate drug promotion in developing and developed countries. -Document the impact of inappropriate promotion on health. -Formulate recommendations. -Provide tools to monitor drug promotion, and provide tools on how to teach health-care professionals about drug promotion. Selling Skills: Types of selling: Emotionally motivated selling. Catalog selling Mail order Selling of services (as lawyers, doctors..etc.) Statistics: -One sales man keeps 19 employees in the company -It takes 20 times the effort to satisfy an unsatisfied customer as compared to the effort needed to gain a new customer. -To make anew customer costs 5 times more than keeping an existing customer. -Every year drug companies lose about 10% of their customers. How to be professional in selling: Education „updating your information‟ You must be convinced that there is no alternative to your current job “working is working” Learn to respect yourself and others. Medical rep: “Before any visit” 1. One should have knowledge about: Drug information. Updated info. Competing products. Personality of the customers. The key to convince the doctor with our product. Selling skills. To make sure that you know your company well and also that the company is well known to the doctor. Must have detailed information about how your drug can be helpful and how it differs from other drugs.” Should know details about the disease It is helpful to take advantage of certain events such as knowing the doctor birthday and to time your visit at that day bringing a small gift with you.” Must have a data base of: -Customer profile -Product profile: all studies done, all information collected. -Doctor‟s card: personal information, writing habits, class. This information should be easy to retrieve whenever needed, can be classified easily, must give clear analysis and comparison with other competing products. This would be helpful for any other new medical representative to make use of previously available information. It is important for any new medical representative to take care of the following issues: The appearance of a medical representative. “the bag, clothing, nails, hair style…etc…” Ability to convince/persistent/credibility. The frequency of visits,” to set a programe for visits”. planning: Yearly, every 16 months, every 2 weeks, daily “A plan is set by medical rep., then approved by regional managers, then by the promotion department. What doctors expect to get from medical representatives? -An effective drug. -Information concerning the drug. -An idea concerning drug price. -Available dosage forms. -Free samples. -Brochures -Conferences -Services -Frequent visits. What does a medical representative expect from a doctor? -To prescribe his products -To greet him upon his visit. -To understand the properties of his product over competitors' ones. -Feedback It is important to know that doctors can remember only few numbers of products for example some doctors may only know 15 products. Why doctors may not prescribe your specific product?? -No frequent visits. -If he is not convinced with your product. -Previous trial failure of the drug. -Simply because he does not like you. -Negative opinion or bad relations with your company -There is no product in your company that matches his needs. -His loyalty to other company -Not enough information concerning the drug. -He is used to other specific drugs. Key Element For Successful Communication question allow and encourage questions to make clear what your message is understood well feedback ask for confirmation but also check and reconfirm visual aids visualize instead of only using words visualization can be manifold,also use gestures ,analogies ,symbols clear assumptions verify what your way of communicating is understood well(also see next two points) don‟t assume what others don‟t assume what your know knowledge is familiar to the"receiver". This refers to technical terms ,background principles language _your "encoding" in general. set frame then details give an overview ,familiarize with the topic in general,the proceed to detail communication keep it simple don‟t try to impress by complication; reduce to the maximum give/get sufficient info find the right balance (check out by feedback) don‟t overdo nor "underdo". Definitions - Market انسٕق عبارة عٍ يجًٕعت انًشخزٍٚ ٔانبائعٍٛ انذٍٚ ٚزغبٌٕ فٙ شزاء ٔبٛع سهعت - Customer انشبٌٕ ْٕ انفزد انذ٘ ٚكٌٕ نذّٚ انحاجت ٔانزغبت ٔانمذرة نشزاء سهعت - Salesperson يُذٔب انًبٛعاث ْٕ انشخص انًُخذب يٍ انشزكت نٛمٕو ببٛع ٔحسٕٚك سهع أ خذياث انشزكت نذٖ انشبائٍ - Product انًُخج ْٕ انسهعت أ انخذيت انذ٘ حٕفزِ انشزكت ٔٚهبٙ حاجت انشبٌٕ - Manufacturer انًصُع ْٙ انجٓت انخٙ حجًع ٔححٕل انًٕاد انخاو انٗ يُخٕجاث نٛخى بٛعٓا يُذٔب حٕسٚع - انًٕسع ْٕ انشخص انذ٘ ٚمٕو بإٚصال انسهع ٔانخذياث يٍ انشزكت انٗ انشبٌٕ - Wholesaler حاجز انجًهت ْٕ انٕسٛط بٍٛ انشزكت انًصُعت أ انٕكٛم ٔحجار انًفزق - Retailer حاجز انًفزق ْٕ انٕسٛط بٍٛ حاجز انجًهت أ انٕكٛم أ انشزكت انًصُعت ٔانشبٌٕ انُٓائٙ - Agent انٕكٛم ْٕ انشزكت انخٙ حًهك حمٕق حصزٚت فٙ بٛع سهعت يا - Competitor انًُافس ْٕ انجٓت انذ٘ نذّٚ انمذرة عهٗ حٕفٛز سهعت أ خذيت حهبٙ َفس انحاجت -Promotion انذعاٚت ْٙ انٕسٛهت انفعانت نهٕصٕل نهًسخٓهك انُٓائٙ عبز اعالَاث َٔشزاث ٔغٛزْا - Marketing انخسٕٚك ْٕ عًهٛت فٓى انسٕق ٔحٕفٛز انسهع ٔانخذياث انخٙ حهبٙ االحخٛاجاث عٍ طزٚك انذعاٚت ٔاالعالٌ - Selling انبٛع ْٕ اَخمال سهعت أ خذيت يٍ بائع انٗ يشخز٘ نخهبٛت يُفعت يشخزكت يع حٕفز االٚجاب ٔانمبٕل - Sample انعُٛت ْٙ يُخٕج ٚسخخذو كجشء يٍ انذعاٚت نخعزٚف انشبٌٕ بًٛشاث ٔصفاث انصُف - Leaflet انُشزة ْٙ يهخص نخٕظٛح يشاٚا ٔفٕائذ انصُف - Billboard ْٙ نٕحت اعالَٛت خارجٛت - Mobiler ْٕ يجسى عٍ انصُف الغزاض دعائٛت - Dangler يخذنٛاث دعائٛت سُذ لبط - ْٙ ٔثٛمت رسًٛت ٔلإََٛت الثباث دفعت لبعج يٍ انشبٌٕ سُذ صزف- ْٙ ٔثٛمت رسًٛت ٔلإََٛت الثباث يبهغ حى دفعّ نشخص يا فاحٕرة - ْٙ ٔثٛمت رسًٛت ٚسجم فٛٓا كًٛت ٔسعز انسهع انخٙ خزجج يٍ انشزكت ٔٔصهج انٗ انشبٌٕ دفخز يزحجعاث - ْٙ ٔثٛمت رسًٛت حسخخذو السخالو كًٛت َٕٔع انبعاعت انخٙ رجعج يٍ انشبٌٕ سُذ ارجاع - ْٙ ٔثٛمت رسًٛت حبٍٛ انكًٛت ٔانمًٛت انًانٛت نهبعاعت انخٙ رجعج يٍ انشبٌٕ دفخز طهبٛاث- Customer request Marketing Plan Budget Target SMART Distributor Merchandizer Product Life Cycle Quality Customer Service ISO 9000 Inflation Purchase Market Share Customs VAT Supply and Demand Policy Procedure Strategy Plan FORM Smart: specific, measurable, ambition, realistic, time measured. The six buying motivations .Making a gain : Buying to increase yield or money return ( profit ) , being economical , saving money . Also , gaining time . .A cattle farmer is treating his herds regularly to assure their health to increase meat and milk production to make more money . .A dealer or distributor includes a new public hygiene insecticide in his product range in order to expand business and improve profits . .fear of loss : buying to protect an investment from damage or loss . The loss may be real or perceived . Could be loss of life , yield , profit , money , property or anything of value . Protect health , guarantees long life . .Most people buy household insurances because they are afraid of losses through burglaries . .pleasure : Buying because of enjoyment.Close to the gain motivation ,but prospect is not primarily concerned with gain. Here we may identify comfort , convenience,enjoyment,beauty,luxury,good health ,food. .A distributor takes a buying decision for a given product because he knows that after reaching a certain volume he gets a free weekend to spend in a holiday resort . .Somebody buys a tennis racket ( sports equipment ) because he enjoys playing tennis . Avoidance of pain Buying because it will remove physical or mental pain. Close to fear of loss. Most people do not like discomfort. Drugs / Pharmaceuticals are an obvious example. Also less work, safety, freedom from worry, security protection. * A housewife buys a dish washing machine because she doesn't like to Wash dishes by hand. * Drugs bought for motion sickness to avoid vomiting during a trip. Pride Buying because of inner feelings of wanting the best. Pride is when someone makes a decision resulting in a good inner feeling. They don't care what others know, think and say. (Could be self improvement, style, high quality, etc.) * A cattle farmer wants good ecto parasite control in all this herds even They are hardly ever seen by anyone but the farmer himself * A dealer paints all 4 sides of his warehouse even though nobody ever sees the backside of the building. Social approval Buying because of the influences or reactions of others. Where decision is made to cause prospect to appear to be a good farmer, businessman, grower Or pillar of society. Also for prestige purposes. Prospect cares what others know, think or says. * A cattle breeder buys a product, because his neighbour, who has a big farm, bought it. * Somebody buys a fancy car because he wants to impress his friends, neighbour, etc. FEATURES AND BENEFITS BINACA GOLD MOUTH WASH FEATURES BENEFITS FOR CONSUMERS - Has a disinfectant effect - Reduce the germ count in the mouth - Eliminate up to 50% of the bacterial - Good preventive measure flora against plaque - Reduces the formation of plaque and - Fights tooth damage acid build-up - Removes bad breath - Gives the mouth a lasting freshness - Concentrated - Long usage – ECONOMICAL FOR THE PHARMACY - 30% trade discount - SR 4.00 per pack sold - Bonus - Additional profit - Prescribed by Dentists - More sales - Product information, How to use it? - No waste of pharmacist's time are printed in Arabic on each pack to explain it to his customer SPASMO-CIBALGIN FEATURE BENEFITS FOR PATIENTS - Analgesic, antispasmodic - Effective against spasm/ pain. - Two in one - Controls both spasm and pain. - Available in tablets and - Both adults and children Suppositories (adults and can use Spasmo-Cibalgin children) - Free from barbiturate - Patients can drive and perform their work without drowsiness. - Small pack size - Economical FOR THE PHARMACY - Relatively high priced item - Good margin per pack solid - Bonus up to 25% - Additional profit SALES PRESENTATION WORKSHEET Features Benefits BUYING MOTIVATION EXERCISE In the following statements, what motives are In1icated? A) Ali was telling me about your special offer of the month B) Are you taking back the unsold damaged goods at the end of the end of the next month? C) "It is important to De that people can see that my son is Free from lice" D) If I use Voltaren table will I have to worry about Stomach troubles? E)"Sure I would like to have undamaged fruits in my farm? F) I will pay cash in order to get the 10% discount" G) I will not, take such a big order of NEOCID shampoo, I don't believe that, we have much lice infestation in this area" H) "Plant care products are so low I can't afford your GESAL Prices". I) "A customer buys a toothpaste, because he doe not want to loose his teeth due to tooth decay" G) Haj season is coming, do you have excess sock of this product? Stages of PLC Introduction Stage of the PLC Summary of Characteristics, Objectives, & Strategies Low sales Sales Costs High cost per customer Profits Negative or low Marketing Objectives Create product awareness and trial Offer a basic product Product Price Usually is high, use cost-plus formula Distribution High distribution expenses Advertising Build product awareness among early adopters Growth Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing Objectives Maximize market share Offer new product features, Product extensions Price Price to penetrate market Distribution Increase number of distribution outlets Advertising Build awareness and interest in the mass Maturity Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Peak sales Costs lowcost per customer Profits High profits,then lower profits Marketing Objectives Maximize profits while defending market share Diversify brand and models Product Price Price to match competitor Distribution Build more intensive distribution Advertising Reduce to level needed to retain product Maturity Stage of the PLC Company tries to increase consumption of the current product. Changing characteristics such as quality, features, or styles to attract new users. Company tries to improve sales by changing one or more marketing mix elements. Decline Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Declining sales Costs Low cost per customer Profits declining profits Marketing Objectives Reduce expenditure and maintain, reposition Phase out weak items Product Price Cut price Distribution Go selective, phase out unprofitable outlets Reduce to level needed to retain Advertising product 11 1,1 1811 111 > Agencies Team Up in War against Internet Health Fraud By Linda Bren ... Cures Alzheimer's and HIV/AIDS ... Proven effective in treating over 650 infectious diseases ... Recognized in scientific journals to be a revolutionary breakthrough in treating arthritis These health product claims found on the Internet can provide hope for those suffering from painful or debilitating diseases. But they are false claims, leading to false hopes. They are also fraudulent, illegal, and the cause of recent government enforcement actions against the companies that made them. In the ongoing war against Internet health fraud, federal and state government organizations have united, in an effort dubbed Operation Cure.AII, to crack down on unscrupulous marketers who use the Internet to prey on the sickest and most vulnerable consumers. Operation Cure. AII, a partnership of the Federal Trade Commission, the Food and Drug Administration, Health Canada (the Canadian federal health department), and various state attorneys general and state health departments, combines a law enforcement effort with a consumer education campaign. Almost 100 million adults in the United States use the Internet to find health related information, according to i3 poll conducted by the market research firm Harris Interactive. "The Internet provides many benefits. But, its unique qualities--including its broad reach, relative anonymity, and ease of creating new Web sites or removing old ones--pose new enforcement challenges," says Bernard A. Schwetz, D.v.M., Ph.D., acting principal deputy commissioner of the FDA. "FDA and the FTC are working together to protect the public from those who try to take advantage of consumers through this new technology." In June, the FTC, which developed and leads Operation Cure. AII, announced enforcement actions against six companies that fraudulently marketed health product on the Internet. These actions mark Operation Cure. AII's fourth group of targeted enforcement efforts to address marketing of unproven health products on the Internet. Five of the companies have agreed to settle the charges. Settlements included such actions as removal of ~II unsubstantiated claims for products, warnings about potential dangerous interactions with some prescription drugs, a notice to purchasers with an offer for a full refund, and agreement to pay fines for consumer redress. The FTC has filed a complaint in federal district court against the sixth company. Among the many false and unsubstantiated claims challenged in these recent cases were promises that: People could cancel their surgery, radiation or chemotherapy in favor of herbal cures that cost hundreds of dollars; A device that delivered mild electric current would kill the parasites that cause such serious diseases as cancer and Alzheimer's; and Those with HIV or AIDS could use S1. John's wort as a safe treatment for the disease. (The FDA and FTC warn that S1. John's wort may have potentially dangerous interactions with other medications,including· someprovenHIV I AID Smed ications.j "It's bad enough when someone, with little or no evidence, touts unproven remedies to vulnerable populations such as people infected with HIV or AIDS," says Walter H. Carr, part,ners,hip council chairman of the National AIDS Health Fraud Task Force Network, "It's even more frightening when they do so despite--and without so much as a mention of--emerging risks that those remedies pose to the very people to whom they are pitching their sale. St. John's wort and protease inhibitors: They don't mix," Since the launch of Operation Cure.AII in 1999, the FDA and FTC have won a number of battles against Internet health fraud. The FDA's efforts to curtail online marketing of unapproved drugs have resulted in at least 12 product seizures, 11 product recalls, 43 arrests, and 22 convictions. The FDA continues to investigate more than 80 incidences- of -Internet health fraud and unapproved drug products. Since 1999, the FTC has brought 13 law enforcement actions against Internet marketers for unsubstantiated health claims, One case resulted in a $1 million settlement with the maker of a shark cartilage product promoted as a cure for cancer, Another settlem"ent required consumer refunds for electronic devices and herbal remedies that were sold as cures for cancer, AIDS, Gulf War syndrome, and many other diseases. All were required to remove their bogus claims from the Web. In addition, the FTC estimates that more than 100 other Web sites have taken down their sites or removed their claims after the FTC contacted them. "Consumers should avoid Web sites that promise quick and dramatic cures for serious diseases," says Howard Beales, director of the FTC's Bureau of Consumer Protection. "And they should always consult a physician or other health-care professional before using any product or treatment." DTC ads What are the rules? Confusion exists about the different types of prescription drug ads and FDA regulation of DTC ads. The full set of regulation covering DTC ads is quite specific. What follows is a brief synopsis of the most important rules. The three types of DTC ads Help seeking: these ads aim to alert consumers about a disease or condition and its symptoms and let them know that treatment is available. A drug's brand name can not be used, but the company sponsoring the ad is identified. People are exhorted to see their doctor. Reminder: these ads give the name of a drug but do not mention any disease or condition to be treated. They are designed to build brand recognition and prompt people to ask their doctors about the drug. Product claim: these ads mention both a drug's brand name and its intended use. They aim explicitly to prompt people with a specific disease or condition to go to the doctor to inquire about the drug. Such ads must meet more exacting requirements. Most DTC drug ads today are product claim ads. The requirements All types of DTC drug ads: Must comply with FDA and other federal rules regarding advertising fairness and accuracy and "false advertising". In addition, no drug ad can (a) falsely report scientific data, (b) declare clinical superiority for a drug without scientific data to back it up, or (c) represent a drug as a treatment for a disease for which it has not been FDA approved. Help seeking and reminder ads: Do not have to contain detailed information – or give a source where consumers can get such information – on a drug's effectiveness or potential side effects. Product claims ads: Must present a "fair balance" of benefit and risk information. This means, for example, that a print ad is not supposed to have huge type touting a drug's benefits and small type listing major side effect. Likewise, a 60 second TV ad can't spend 50 second on benefits and 10 second on potential problems. Must, if they are in print (newspapers, magazines, internet), contain a "brief summary" of a drug's side effect, indications and effectiveness as well as any precautions and warnings about its use. This information must be consistent with and derive from a drug's official product labeling. The FDA in consultation with manufacturers dictates such labeling. In practice, this summary information is not brief at all. It can run to 1,000 words or more and usually takes up a sizeable chunk of space even when small print is used (which is almost always it is). However, this information may be, and usually is, printed on an adjacent page. In practice then, it is usually far less visible. Must, if they are broadcast (TV and radio); include prominent mention of a drug's "major" side effects or limitations and any important contraindications. In addition, such ads must give a toll free telephone number, a web site or internet address, and reference to print ads or available written material on a drug that can be obtained in a public place. Information sought from these sources must be sent out within two business days. Thus, DTC drug ads in broadcast media are exempted from airing the detailed "brief summary" information that is required in print ads. .................................................................................. ......................................... How to Report Suspicious Claims The FTC and FDA encourage people to report suspicious health claims. Since January 2000, the FDA has checked out more than 3,000 tips submitted by consumers about suspicious online prescription Web sites, according to Tom McGinnis, R.Ph., the FDA's director of pharmacy affairs. To file a complaint regarding a possible fraudulent, deceptive, or unfair business practice, call toll-free, 1-877 -FTC-HELP (1-877-382-4357), or use the complaint form at www.ftc.qov. If you find a Web site you think is illegally selling human drugs, animal drugs, medical devices, biological products, foods, dietary supplements, or cosmetics over the Internet, use the complaint form at www.fda.qov/oc/buyonline/buyonlineform.htm . - --L. B. Be Suspicious Promoters of fraudulent health-care products often use similar claims and practices to lure consumers into buying their goods. The FTC and FDA advise consumers to be suspicious of: Claims that the product is "natural" or "non-toxic," suggesting it does not have side effects. "Natural" or "non-toxic" does not necessarily mean safe. Some "natural" supplements contain potent stimulants; others can result in negative interactions with medicines. Testimonials from people who claim amazing results. Testimonials often are undocumented and are not a substitute for scientific proof. Claims that a product is a "scientific breakthro~h," "miraculous cure," "secret Ingredient" or "ancient remedy." Claims that the product is an effective cure fdr a wide range of ailments. Claims that use Impressive-sounding medical terms. Claims that the pro¢uct is available from only one source, and payment is required in advance. Claims of a "money-back" guarantee. Web sites that fail to list the company's name, physical address, phone number or other contact information.
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