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
Lyles, Adam. “Direct Marketing of Pharmaceuticals to Consumers.” Annual Review of Public Health, volume 23. 2002. Print.
The drug manufacturing industry is concerned with the development, production and marketing of drugs which are to be used as medication. This is one of the oldest industries in the world. The first drug stores date back to the middle Ages. Some of today’s pharmaceutical companies have been founded in the beginning of the previous century. Important discoveries have been made in the early 20th century such as insulin and penicillin who became mass produced. More drugs were developed during the 1950s-1960s such as contraceptives and heart drugs. During that time numerous organizations and declarations were established in order to regulate the industry. Until the 1970s the drug manufacturing industry remained relatively small, and then it began expanding quickly. With the development of technologies and the internet research, manufacturing, marketing and sales of drugs became a lot easier.
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.
Stan Frinkelstein and Peter Temin believes that one solution is to eliminate the link between drug prices and drug discovery. This will help ease the fear of losing research funding for new medicine and by doing so, drug prices should be a lot more reasonable. The next solution they have is to undo the blockbuster mentality and this is closely linked to eliminating the link between drug prices and drug discovery. Blockbuster refers to pharmaceutical companies that achieve an annual worldwide sale of $1 billion or more. They can achieve this because the drugs are used by many patients and/or used for a long period of time. This will solve the drug price crisis because by doing so, researchers can focus more on society’s needs instead of focusing on how to generate more revenue. Their solutions will help researchers develop drugs that society truly
The current Food and Drugs Regulations appear quite solid. Definitions are made for a variety of terms such as “daily value”, and rules are made with very specific scopes, breaking down stakeholders (consumers, producers/retailers) into groups so that there is s...
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.
According to Brand India Equity Foundation, the Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between...
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.
Through my case study analysis I recommend areas that are instrumental toward increasing market share in the pharmaceutical distribution sales industry here in the US and the globe. The areas of focus are in enlargement of Retail Clinics, pharmaceutical delivery, enlargement in store branding, urban focus with organic foods, pharmacist availability, international expansion, and meet competitor coupon offers to improved market penetration both nationally and international...
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...
There are media commercials that are aired on television that are directed to consumers and is also found on the drug company’s website (Pfizer, 2013). A woman who is diagnosed with fibromyalgia is the main character of the commercial. She portrays the pain she is having from the fibromyalgia and after talking to her doctor and taking Lyrica, her pain has gotten better and she then portrays herself in a social setting with friends and appears pain free (Pfizer, 2013). The print advertisements directed to the public can be found in consumer magazines and websites. An advertisement found on a website that is directed to the general portrays the same woman that was seen in the media advertisement with visible information about the drug (Drugs.com, 2012). In Consulta...
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.
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.
The main issues proponents of DTC ads strive to address are in relation to bettering the healthcare system and/or concerns from the opposing side. While the opposing side argues that this form of advertisement has turned the treatment of the healthcare system into a business, proponents focus their arguments on the benefits DTCPA have on the general public. Despite the lack of countries that participate in this type of drug marketing, proponents stand by the belief that DTCPA is a beneficial addition in healthcare. However, proponents fail to look at the logistics and long term effects this form of advertising could have.
3Walker, Hugh: Market Power and Price levels in the Ethical Drug Industry; Indiana University Press, 1971, P 25.