According to Moss (Schuiling and Moss, 2004), pharmaceutical companies have not worked proactively in identifying a brand identity for their products and in communicating this identity to consumers. They have not done market research to determine their brand identity and to verify if this is how consumers view them. Although brands exist in both the consumer goods and pharmaceutical industries, only the consumer goods industry is using brands as a competitive tool, managing its brands with care and investing resources in brand development. On the other hand, the pharmaceutical company has not understood and integrated the competitive advantage that brands could represent (Schuiling and Moss, 2004). The difference between the pharmaceutical and FMCG industries is also seen in the organisation of brand management. In the FMCG industry, branding is a strategic priority at every level of the organisation. Brands are created very early in the product development process and marketing people work in depth R&D at the beginning of the process. R&D for FMCG is relatively inexpensive and quick compared with R&D for pharmaceuticals. As a result, FMCG can focus on creating brands that will last decades, not 7-20 years. The marketing of these products is focused on maximizing the long-term brand growth rather than going after short-term return through a large sales force. In the pharmaceutical industry, it is often late in the development process when global marketing people become involved in the phase. Key decisions are taken at a much earlier phase of the product's development plan. Moreover, pharmaceutical marketing people are often more sales driven than marketing driven and therefore pay more attention to the elements during execution, r...
... middle of paper ...
... 2003). For decades, a pharmaceutical company's brand strategy was to discover a drug that was needed, introduce it to the doctor via a sales representative, and watch the prescriptions get filled. With several factors causing change in the pharmaceutical industry in the way in which medications are marketed and sold, it will be significantly important for these companies to brand their products. This will be important if more drugs are switched to over-the-counter (OTC), upon expiration by the FDA (Kapoor and Epstein, 2004) since many choices will be available on the shelf to choose from. As more drugs are switched to OTC in both pharmacies and supermarkets, healthcare is increasingly in the consumer's hands (Brand Strategy, 2004). The early years of the prescription lifecycle will be important for drug companies to establish brands that are ready to be switched.
In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the counter, or OTC, drugs. In order to take advantage of this demand, five billion dollars is spent by the pharmaceutical industry on marketing each year . This marketing, usually in the form of advert...
In 1982, Johnson & Johnson, the producer of Extra-Strength Tylenol capsules faced a major crisis when 7 deaths resulted from tampered bottles (Kaplan, n.d.). This crisis could have destroyed the company and their reputation if it wouldn’t have been for their quick response and concern for their public relations. It was crucial that they prepared a quick and clear response for their consumers to show their concern for their customers. Therefore, the worldwide recall of Tylenol capsules and the improved packaging accomplished their purposes of restoring the company’s reputation, as well as, protecting their public relations with their consumers. Johnson & Johnson had a few purposes when they implemented a worldwide recall, replaced the capsules,
Sarkar, A. N., & Singh, J. (2005). New paradigm in evolving brand management strategy. Journal of Management Research, 5(2), 80-90. Retrieved from http://search.proquest.com/docview/237238894?accountid=28644
Distinguishing one product from another depends on the target market’s ability and in turn the success of any business or consumer product (Lamb, Hair & McDaniel 2009). In the marketing industry and the business world, brand is defined as “a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of others.” (Bennett, P.D., 1995). Brands are a common part of marketing and they serve as value to consumers. Brands also give firms a competitive edge over another and a certain leverage over its customers.
Certain characteristics of a new product affect its rate of adoption. Relative advantage is the degree to which the new product appears better than an existing product (Kotler & Armstrong, 2013). Glaxowellcomes product only needs to be taken once per day and the fact that Zantac required a lower total dose made the product appear more potent and longer acting than competing medications. This added advantage created the perception that Zantac was vastly superior to Tagamet when in fact the differences are minimal in comparison. A customer will always buy from a company that offers the highest customer perceived value. Another key characteristic that influences the rate of spread or diffusion of a new product is complexity. This is the degree to which the new product is easy to understand or use. (Kotler & A...
There are many definitions of the term brand that are significantly different. Some definitions are based on the brand as a determinant of visual corporate identity of the company. Thus, the definition of the American Marketing Society perceives brand as “the name, term, design, symbol, or other feature that distinguishes one seller's product from those of others.” Visual identity is certainly important, but not the only aspect of the brand. It is a new dynamic experience of the product, which is created in the mind and emotions of consumers. In today's competitive environment, brand can be defined as “a set of expectations, memories, stories and relationships which, integrated, influence customers´
The mass production of consumer products has given rise to excessive use of branding. Due to increase in competition between companies that produce similar products, companies now aim to differentiate their product from others by solidifying their brand identity and creating awareness about their brands. The utilization of such branding strategies would not be much of a concern if they were only restricted to consumer products like food, clothing, beverages (Coke, Pepsi), etc. However, the influence of these strategies extends well beyond that. Even pharmaceutical companies have undertaken the approach of Direct-To-Consumer Marketing strategies where they target millions of healthy Americans by exposing them to persuasive commercials in the hope that they would buy the drugs sold by these pharmaceutical “brands”. This approach is very contrasting to the strategies used by pharmaceutical companies in the past. Previously, when patients needed medical attention, they would consult their doctors who would prescribe an appropriate medication for curing their illness. Due to this, pharmaceutical companies would target their marketing to medical professionals and doctors by promoting their drugs at conferences and in medical journals. However, today they have started using Direct-To-Consumer marketing strategies that entail consumer advertising, which directly target the consumers. The purpose of this research paper is to analyze the ways in which pharmaceutical companies use Direct-To-Consumer marketing for selling ailments to healthy customers and disillusion them into believing that they have a disease. To support this argument, the research paper will touch upon various marketing strategies that pharmaceutical companies use to creat...
For commodity generic drugs, Teva has an opportunity to expand its core business into emerging markets, but there it will have to face institutional voids because such markets are driven by physicians and both physician and other people are not aware about the effectiveness of generic drugs. To cope with the challenge of institutional voids Teva have to look for some competent small pharmaceutical firms for acquisition and some big firms for the joint venture. For changing the perceptions of people and physicians, Teva will require to run marketing campaigns and direct approaches to physicians to develop a market for their products.
Major escalation in the amount and kind of investments necessary to support a successful brand. Total brand management takes a variety of forms: Heavy investments in information systems, customer service which contribute to marketing of the core product, Leveraging innovations, marketing investments and trade promotions over a coherent brand port...
Branding is the talk of the town. Conglomerates spend millions on planning and implementing brand activities. New survey is published and contexts are developed on a daily basis in the effort to find the holy grail of brand management. Since the mid-80s, in general, researchers and specialists alike have explored the domain, scope and latent of the brand. Many different concepts, theoretical agendas and ideas have seen the light of day and, as a result, a wide band of different perspectives on how a brand ought to be conceptualized and managed is in play today
In the past decade companies are starting to see their brand assets, and with this branding has taken on a greater significance. So today brands are more than just marketing slogans and logos. All businesses are building their brands through certain actions and in their actual presence they find a 'position' in the mind of consumer and prospects. This is based on experience and exposure of the brand in the competitive marketplace. There are certain advantages to take into account in a Brand Strategy;
The second step deals in creation of proper brand meaning through powerful and unique brand connection with the customers. The third step involves invoking positive brand response while the fourth one involves engaging the customers so as to build a brand affiliation aimed at enhancing active brand loyalty. However, some building blocks are requisite in order to achieve these steps. These...
A brand identifies a seller’s product from a competitor’s product. There are three main purposes for branding product identification, which is the most important purpose, repeat sales, and new-product sales. Branding has a lot of terms that marketers use there is brand equity, global brand, and brand loyalty. Marketers also have different brand strategies that they use for different products or customers. It all depends on the consumer for them to decide which strategy they will use. The different strategies are generic products, manufacturer’s brands, private brands, individual brands, family brands, and co-branding. The branding purposes and the branding strategy make up the importance of branding.
Product is the core of marketing, which including tangible goods like food or drinks or intangible services, as it is the major way to embody customers requirements; and, branding is directly associated with it. In fact, branding is all about decisio ns of products, like brand names or trademarks. Stork (2007) asserted that a brand is a unique business identity which represents the personality, quality or origin of products. And, such a product which added value by branding would appear in every activity of marketing, namely, branding is actually react on the whole marketing system directly and indirectly.
Every company seeks to create its own brand - a unique and effective image. Purpose of brand is attracting and retaining customers in its market share. Branding in marketing is a complex technology, aimed at making advantageous position a brand from the competition. Facilitating the search for the necessary goods to the buyer, branding in marketing becomes more effective if the consumer product features meet market requirements. It is especially necessary to identify the goods, for a case of unprepared buyer which can not assess the competitive characteristics (for example, high-tech products). The development of technology has had a huge impact on human society. It is reflected in the fact that we are surrounded by complex technical devices that we use every day and sometimes we have no idea of how this thing is located within. Here the brand comes to help the consumer that stands out from all those product characteristics that are important to the consumer and facilitates the understanding of the product.