The pharmaceutical industry has become a chief player in the marketing of their products. As its leading companies have such a strong presence in Ireland, and the fact that its marketing policies are forced to vary from country to country, I found it to be a very appropriate topic. It is a highly regulated industry, governed by different global statutory bodies, each incorporating different laws, which marketers must be aware of. I discuss how different global legislation can affect marketing strategies, and ultimately sales.
I also thought this would be a fascinating area to study in terms of ethics. Pharmaceutical companies are seen to be generating huge revenue streams, while good health is not equally distributed. As I previously lived in Canada, I was able to receive insights from a sample of both Canadian and Irish residents to determine how pharmaceutical companies are viewed.
Finally culture affects all multinational companies, so I will discuss how it exclusively affects the marketing strategies and campaigns of these global pharmaceutical giants.
Evolution of marketing
The marketing of prescription drugs has always been a controversial topic due to the sensitive nature of the product; hence heavy legislation hugely affects the promotion of a drug. The major players of the industry are huge multinationals, so must be aware of the different requirements of each market, not just legislation but also the needs of customers and the social norms of the environment which they reside.
There are many trends that affect the market of pharmaceuticals including more knowledgeable consumers, the aging population, the impact of the financial crises, and rapid scientific advancements. Marketers need to consistently adapt their strate...
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...EM and pharmaceutical advertisements: it’s time for an end | Canadian Journal of Emergency Medicine. [ONLINE] Available at: http://www.cjem-online.ca/v11/n4/p375. [Accessed 09 December 2013]
R. Stephan Parker, Charles E.Pettijohn. (2003). Ethical Considerations in the Use of Direct-To_consumer Advertising and Pharmaceutical Promotions: The Impact on Pharmaceutical Sales and Physicians. Journal of Business Ethics. 48, 279-290.
Lidstone, J. MacLennan, J.. (1999), Marketing Planning for the Pharmaceutical Industry, England: Gower Publishing.
Anon, (February 26, 2013) Top 10 Pharma Advertising Budgets - 2012, http://www.fiercepharma.com/special-reports/top-10-pharma-advertising-budgets-2012, 10/12/2013
Summerfield, (September 2013) Bribery And Corruption In The Pharmaceutical Sector Financierworldwide, http://www.financierworldwide.com/article.php?id=11025, 28/11/2013
Kotler, P., & Keller, K. L. (2009). A framework for marketing management: Integrated with PharmaSim. Upper Saddle River, NJ: Pearson Prentice Hall.
Lyles, Adam. “Direct Marketing of Pharmaceuticals to Consumers.” Annual Review of Public Health, volume 23. 2002. Print.
Our original marketing plan was not a plan at all. We wanted to see success and focused on revenues, net sales, and stock price to gauge whether we were doing what was best for the company. We made sure to locate a target market and base our promotional tactics on what young and mature families want and need. We ensured that we did the right thing in the face of adversity, especially when concerning intercompany issues and product tampering. We wanted to make sure that we were selling great products that did their intended job at a fair price, and made sure our products were easily accessible to consumers.
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 advertisements, often distorts facts and makes the necessity for drug treatment seem greater.... ... middle of paper ... ... Washington, D.C.:
Direct-to-consumer (DTC) advertising refers to one of the marketing strategies in a pharmaceutical industry. As pharmaceutical products directly affect people's lives and health, many industrialized countries ban DTC advertisements; the United States and New Zealand are the only industrialized countries that allow DTC advertising of prescription medicines. However, there is a controversy over whether DTC advertising, as one of the most effective forms of mass communication, should be more regulated than it is now. This debate is ongoing. This research argument, however, contends that people need stronger regulations against many DTC advertisements in the pharmaceutical industry because they are usually manipulative and misleading to people.
Direct-to-consumer prescription drug ads are dangerous and can have serious effects on the health of the general public. In the article “Pros & Cons Arguments: ‘Should prescription drugs be advertised directly to consumers?’”, the pros and cons of the advertising of prescription drugs are compared. The negative aspects of these ads outweigh that of the positives. DTC prescription drug ads misinform patients, promote over-usage, and pressure medical providers. The counter side argues that these ads inform patients, create a positive impact on patient compliance with medication, and cause patients to confront their doctors.
...s: each was licensed to a much larger firm because the originator firm lacked the capability to market the drug. the larger analysis of blockbuster drugs showed that this thread is common across blockbusters that originated with smaller firms. The largest firms appear to hold a significant advantage in commercialization—they are highly effective at extracting the value of innovative drugs . The study suggests some qualified reasons for skepticism that the end of the blockbuster era will bring a major upheaval in the industry. Large firms’ advantage in commercialization suggests that they may maintain their dominant position. Marketing of pharmaceuticals may move from broad-based to targeted approaches, but a company with a broad reach may still have an advantage in identifying markets for niche drugs and commercializing the drugs within those more narrow market
Why do consumers purchase specific drugs for various ailments, sicknesses or diseases they might have? Why do physicians prescribe certain drugs over competitive drugs that may be available to the public? Why is it that most of us can easily name specific drugs that fit the many ailments of today’s society? On the surface the answer might be as simple as good TV advertising or radio commercials or even internet adds. The truth of matter is the major pharmaceutical manufacturers own the patents on these drugs and this gives them all of the marketing budget and muscle they need to promote the drug and control the pricing. The incentives for larger pharmaceutical companies are very enticing and as a result, they don’t mind spending the time in clinical trials and patent courts to get their drugs approved. Some will even get patents on the process by which the drug is manufactured, ensuring that no competitor can steal the drug or the process. This protects their large financial investment and nearly guarantees a large return for their investors. Many consumer rights groups claim this is nothing more than legalizing monopolies for the biggest manufacturers.
In America, it has become a battle to earn a high paying job to cope with the expenses of a typical American. It has become even more of a battle for some people to afford medical prescriptions to keep healthy. Health becomes a crucial issue when discussed among people. No matter what, at one point or another, everyone is going to stand as a victim of the pharmaceutical industry. The bottom line is Americans are paying excessive amounts of money for medical prescriptions. Health-Care spending in the U.S. rose a stunning 9.3% in 2002, which is the greatest increase for the past eleven years. (Steele 46) Many pharmaceutical companies are robbing their clients by charging extreme rates for their products.
3Walker, Hugh: Market Power and Price levels in the Ethical Drug Industry; Indiana University Press, 1971, P 25.
I have chosen to review an article from the Journal of Health Communication. The Journal of Health Communication reports studies both of qualitative and quantitative values for the scholarly and professional individual. It is designed to give concise and ethical reviews of academic research (Scott C. Ratzan). Furthermore, the Journal of Health Communication focuses on promoting the vital life of the individual and the good health of the world’s people with presentation of research for the purpose of better health (Scott C. Ratzan). I choose to review an article which focused on the increased volume of prescription drug advertising directed to consumer, as it has grown tremendously over the past few decades. It has been reported, drug advertisements have experienced a significant increase in the amount of money spent on advertising from $47 million dollars in 1990 to nearly $2.5 billion in 2000 (Frank, Berndt, Donohue, Epstein, & Rosenthal, 2002; M...
Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 US. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307). This fact validates the incentive pharmaceutical companies have to get a patent and acquire more power. Pfizer encourages R&D because of the incentives and a want to obtain patents to receive more profit. Pfizer has to promote itself to be successful, creating a good brand image that consumers will trust. If the company can advertise successfully, more consumers will purc...
Introduction In order to generate sales, marketers often promote aggressively and uniquely, unfortunately, not all marketing advertisements are done ethically. Companies around the globe spend billions of dollars to promote new products and services and advertising is one of the key tools to communicate with consumers. Conversely, some methods that marketers use to produce advertisements and to generate sales is deceptive and unethical. Ethical issues concern in marketing has always been noted in marketing practice.
Advertising for Pharmaceutical products in the United Kingdom and the United States triggered frequent examination included integrated marketing communication, How they affect the audience, Social Responsibilities influence by the Advertising Standard Authority, UK, Impact of the advertisement towards the cultural in Malaysia, Globalization and Ethical Issues.
With the advent of direct-to-customer (DTC) advertising, patients are becoming much more involved in the whole process and are certainly more educated than ever before. Today, even doctors have become more technologically savvy and it is important that sales representatives find what works best for physicians so that they can maximize their interactions. A lot of the changes to the sales model have certainly been for the good of the entire industry, as the days of the pharmaceutical “Wild West” are long gone and regulations have seen fit to coral in rogue sales