Marketing Techniques of Pharmaceutical Companies The marketing practices followed pharmaceutical companies attempt to sway consumers as well as healthcare providers to use their products. From misleading direct-to-consumer advertising, to gift giving, the industry has often been accused of pushing the envelope. Marketing representatives from pharmaceutical companies, or "Drug reps" as they have become known in the industry, solicit medical providers in many ways to entice them into using their products. With changing guidelines established by the FDA, inappropriate marketing practices can become costly to a pharmaceutical company, as well as to a provider. In a review of several of the different strategies used by these companies, I will analysis the techniques most frequently used, and how they influence consumers and providers. BACKGROUND AND SIGNIGICANCE I have chosen this topic, as I am currently employed as the Office Manager of a 9-physician primary care group. I have seen thousands of these "drug reps" come in and out of the practice. Patient confidentiality is a serious issue. These individuals often stand around patient care areas waiting to pounce on a provider the minute he/she walks out of a room. They show little or no respect for the patients' right to confidentiality, nor to the provider's time. They plaster notices offering dinners, tickets to football games, free movie passes, and even bring in lunches for the providers and staff. Many offer to help with practice events such as the company Christmas party. Some pay for physicians' conference fees in which the physician is able to travel to exotic locations for seminars and educational meetings. Although some of these perks seem wonder... ... middle of paper ... ...0/m0EJJ/2_19/58744155/. Wechsler, Jill. "A Conversation with FDA Commissioner Jane Henney on Marketing and Risk Management," Pharmaceutical Executive, Dec 1999. http://www.findarticals.com/cf_0/m0EJJ/12_19/58089491/. Wechsler, Jill. "The DTC Dilemma: As pharmaceutical companies promote Products directly to consumers, patients are demanding mediations that may Be inappropriate or overly expensive," Pharmaceutical Executive. Nov 1999. http://www.findarticals.com/cf_0/m0EJJ/11_19/58126187/. "Direct to You: TV Drug Ads that Make Sense. "Code of Conduct," IPCAA Web site. http://www/ipcaa.org/ "Ethics." American Medical Association Web Site http//www.ama-assn.org/ama/pub/category/3052.html "Direct to You: TV Drug Ads that Make Sense," FDA Consumer Magazine. Jan-Feb 1998. http://www.fda.gov/cder/.
In Melody Peterson’s “Our Daily Meds” , the history of marketing and advertising in the pharmaceutical industry is explored. The first chapter of the book, entitled “Creating disease”, focuses on how major pharmaceutical companies successfully create new ailments that members of the public believe exist. According to Peterson, the success that these drug manufacturers have experienced can be attributed to the malleability of disease, the use of influencial people to promote new drugs, the marketing behind pills, and the use of media outlets.
Lyles, Adam. “Direct Marketing of Pharmaceuticals to Consumers.” Annual Review of Public Health, volume 23. 2002. Print.
The pharmaceutical industry develops, produces, and markets drugs or pharmaceuticals compounds for medical purpose. Pharmaceutical companies produce generic, brand medications and medical devices. The industry is subject to a complex regulatory environment regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs.
"In the past two decades or so, health care has been commercialized as never before, and professionalism in medicine seems to be giving way to entrepreneurialism," commented Arnold S. Relman, professor of medicine and social medicine at Harvard Medical School (Wekesser 66). This statement may have a great deal of bearing on reality. The tangled knot of insurers, physicians, drug companies, and hospitals that we call our health system are not as unselfish and focused on the patients' needs as people would like to think. Pharmaceutical companies are particularly ruthless, many of them spending millions of dollars per year to convince doctors to prescribe their drugs and to convince consumers that their specific brand of drug is needed in order to cure their ailments. For instance, they may present symptoms that are perfectly harmless, and lead potential citizens to believe that, because of these symptoms, they are "sick" and in need of medication. In some instances, the pharmaceutical industry in the United States misleads both the public and medical professionals by participating in acts of both deceptive marketing practices and bribery, and therefore does not act within the best interests of the consumers.
DTC advertisements aim to persuade that their possibly less effective drugs work better than other drugs rather than to inform consumers of correct information about drugs. The reason that pharmaceutical companies abuse the power of DTC advertising is because the pharmaceutical industry does not have a strong ethical code for advertising; their sales are so obsessed with profits. To solve this problem, policy makers should prohibit indiscreet DTC advertisements on air and fund more informative services about new drugs so that patients could make clever
There is a debate on whether direct-to-consumer advertising of pharmaceutical drugs is moral. These drug companies believe they are providing consumer awareness for patients potentially suffering illnesses, while critics argue that patients demand particular drugs from their doctor while there might be
The use of DTC marketing by pharmaceutical companies has both positive and negative consequences for the parties concerned in this issues.
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.
Marketers operating in the drug industry have to push their products which then raises the ethical questions that surround the profession of medical delivery. Pharmaceutical companies disburse billions of dollars annually to research, develop, and market drugs. Every pharmacy company needs the endorsement of their drugs from physicians and doctors, so they have to ensure that the doctors are well treated. According to the Pew Charitable Trust, the pharmaceutical corporation spent over $27 billion on advertising alone in 2012, with $24 billion of that dedicated to marketing to physicians. (Kessel, 2014) A further survey conducted by Deloitte shows that 35% of the doctors accept some gratuity payment from the pharmacy companies and 16% of the doctors take money to represent the pharmacy company in conferences and health camps. (Kessel, 2014) The Accreditation Council for Continuing Medical Education declares that pharmaceutical and medical equipment companies funded almost one-third of continuing medical education (CME) opportunities for doctors in 2011.( (Barnett, 1989)
Office, U. A. (2002). Prescription drugs: FDA oversight of direct-to-consumeradvertising has limitations (GAO-3-177). Washington, D.C.
Drug advertising for prescription medications comes in many forms including ads in magazines or newspaper, TV commercials, radio broadcasts, brochures, etc. It was in the mid 80s when drug companies started to direct information on prescription drugs to consumers instead of only focusing information on the physicians or pharmacists (FDA, 2012). The change seen in prescription drug promotion towards the public is known as direct-to-consumer advertising. This type of advertising is completely directed to a general audience rather than healthcare providers.
Prescription drug advertising is a normal part of living in the United States. Considering what people can learn through advertising in society is almost unreal. The US population have encountered drug advertisements dating back to the early 1900’s. From heroin to aspirin and everything in between were at once listed to be advertised. Fast forward to today, and pharmaceutical companies continue to use high amounts of prescription drugs advertisements. People right now are seeing the effects that these advertisements have in negative ways, but also at the same time creating benefits in society.
There are so many marketing techniques that companies use in today’s world. There are also many competitions that companies face because of the advancement of marketing and different kind of brands. Old spice does a great job advertising and campaigning by using classical conditioning. Old Spice is an American brand that males use for grooming, they do a great job marketing the product and presenting them to consumers. Classical conditioning is when theorists teach either animal or human certain behaviors passively through repetition. After the theorist teach the animals, the theorist measure and see what the response. One of the most important thing about classical conditioning is to see something repetitively, and learning how to behave. Old Spice uses classical conditioning to influence consumers’ attitude because it shows the commercials repetitively. Classical conditioning also involves unconditioned stimulus, conditioned stimulus, conditioned and unconditioned response. Old spice’s commercials have everything included. Response campaign was a huge success because it involved everyone; it included mass media such as TV, print and digital ads.
Market opportunities for breakfast cereals is vast, some segments of the market have been neglected, most notably that of the over-50’s. Insightful presentations were given at the “Older, Richer, Wiser” Conference that would suggest the over 50’s market segment is targetable.