MARKETING AND PHARMACEUTICAL MARKET Unit 1 Notes DEFINITION:- 1. Marketing word is derived from Market. 2. Marketing is an identification of requirements of the society and fulfill these needs. 3. Marketing may be defined as identifying and reunion of human and social needs. 4. American Marketing Association defined marketing as "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large".CONCEPTS OF MARKETING:- 1. Marketing and marketing concepts are directly associated. 2. The marketing concept term is related to the basic principle of modern marketing. 3. The marketing concept is to search a better way by which services and goods can sell to targeted consumers. SCOPE OF MARKETING:- * The most important scope of marketing is as follows: (a) Goods : Physical goods contain a large share of a country's production and marketing effort. + In order to increase sale companies, advertise their food products, cars, television, refrigerators, machines, etc. (b) Services : As competition and advance in economies, more activities are focused on the production of better and quality services.* Services consist of the work related to hotels, airlines, car, beauticians, rental firms, softwares, etc. * Many markets offer both services and goods together. (c) Events : Marketers promote different events such as company anniversaries, award shows, local festivals, trade shows, social activities, health camps, etc. (d) Persons : Companies tie up with popular personality like sportspersons, TV artists and film stars for branding their services and products. (e) Properties : Properties can be financial or real. * Marketing enhance the sale of properties. (f) Organizations : Organizations actively work to make image and goodwill in the minds of their gode consumer and this goodwill spread trust among the people.Distinction between marketing and selling :- Marketing :- 1. A Comprehensive Term in terms of Meaning. 2. Profit through customer Satisfaction. 3. Begins before production. 4. Continuous after sales. 5. Long term prospective. Selling :- 1. A narrow term in term of Meaning. 2. Profit through sales volumes. 3. Begins after Production. 4. Comes to end with sales. 5. Short term prospective.MARKETING ENVIRONMENT:- 1. The marketing environment includes a mix up between the internal and external forces. 2. It makes the relationship with the customer. 3. The internal factors are employees, shareholders, customers, retailers and distributors, etc. 4. The external factors are political, legal, technological, social and economic. Marketing environment The marketing environment can be divided into three parts as below:- 1. Internal Environment 2. Micro Environment 3. Macro Environment 1. Internal Environment :- + It includes all the factors that are inside the organization and affects the overall business operations.* These factors are labour, inventory, company policy, budget, logistics, capital assets, etc. * It affect the decision of marketing and its association with the customers. 2. Micro Environment :- + It includes all factors related with the operations of the business and influences its functioning. * These factors are further elaborated:- a) Customers:- Basis of every business is customer's needs and wants. * Thus, each marketing strategy focuses on understanding the need of the customers and offering the best product that fulfils their requirements. b) Employees:- Employees are the main component behind the success of business. The quality of employees depends on the training and motivation provide to them. c) Suppliers:- Suppliers provide material to make a finished good and are very important for the organization.d) Retailers and Distributors:- + These are important partners play a vital role in determining the success of marketing operations. e) Competitors:- A close watch is required on competitors for planning of marketing strategy. f) Shareholders:- These are the owners of the company, and every firm has an aim of maximizing wealth of its shareholders. g) Government:- Marketing strategies reflect the Government policies such as, pricing policy, credit policy, education policy, housing policy, etc. * They can give exact information and suggestion regarding product. h) General public:- Marketing activities should also work for welfare of the society. 3. Macro Environment:- + It includes all those factors that are related to outside the organization and cannot be controlled.* These factors majorly include Social, Economic, Technological Forces, Political and Legal Influences. * These are also known as Pestle Framework. The detailed description of Macro factors is given below:- a) Political and Legal Factors:- With the change in political parties, several changes are seen in the market in terms of taxes, trade, duties and market regulations, etc. b) Social Factors:- The business operates in a society. * It must follow the marketing practices that do not harm the sentiments of people. c) Economic Factors:- Every business operates in the economy and is affected by the different up and down phases. d) Technological Factors:- As technology is advancing day by day, the organizations should be updated for better approach of the customers.Industry Analysis:- « An industry is a group of firms producing a similar or product service such as fitness drinks, electronic games or music. * Itis business research that focuses on the potential of an industry. «It is key strategies for development of industry or organisation. Competitor Analysis:- + Acompetitive analysis grid is an instrument for organizing the information a firm collects about its primary competitors. « Itis key strategies for development of industry or organisation. Current Competitors can be summarized as: Current Competitors - full analysis of top competitors including: 1. Products and Services (e.g., description, uniqueness, pricing, etc.). 2. Market share3. Current segments and target customers. 4. Positioning and promotion strategies. SWOT Analysis - Strengths, Weaknesses, Opportunities and Threats. 1. Strengths:- + Internal attributes that are favorable to the organization or project. * Characteristics that give the organization or project an advantage over others. Example:- Strong brand recognition, Experienced and skilled team 2. Weaknesses:- + Internal attributes that are unfavorable to the organization or project. * Characteristics that put the organization or project at a disadvantage. Examples:- Limited resources (financial, human, etc.)3. Opportunities:- External factors that can be leveraged to benefit the organization or project. * Favorable trends, changes, or developments in the market or industry. Examples:- Growing demand for a product or service. 4. Threats:- + External factors that can harm the organization or project. * Unfavorable trends, changes, or developments in the market or industry. Examples:- Increasing competition from other organizations. 5. BUYER BEHAVIOUR:- * Each successful organisation for developing the marketing network use buyer behaviour. + Itis also helpful for marketrs to know how to manage price according to market.Analyzing Consumer Buying Behaviour:- « The study of why and how people purchase services and goods is known as Consumer Buying. * Models of Consumer Buying Behaviour illustrate together the several influences on the process of the buying decision. Consumer Buying Process: * Consumer Buying Behaviour related to the buying behaviour of the ultimate consumer. Stages of the Consumer Buying Process: « Stages of the Consumer Buying Decision Process as follows:- 1. Problem Recognition (Awareness of need):- Difference between the desired and actual condition. 2. Information Search:- Internal search and external search (if you need more information). 3. Evaluation of Alternatives:- Require establishing criteria for evaluation.Difference Between Consumer Buying and Industrial Buying:- Consumer Buying:- 1.Buying is done as required. 2.Product specification takes place. 3.Time buying of products. 4. Purchase volume is small. 5. Repeat sale is allowed. Industrial Buying:- 1. It is to be done in largeness or in large prospective. 2. It does not take place. 3. It can never be done. 4. Purchase volume is large. 5. Repeat sale is not allowedFACTORS INFLUENCING CONSUMER BEHAVIOUR :- * Consumer behaviour is said to be the study of when, why, how and where people do or do not buy a product. + It also includes the study of individual consumers such as demographics & behavioural aspects for understanding the people's wants and needs. * So, consumer behaviour is all about learning how an individual selects and uses particular products and services. There are four main factors influencing consumer behaviour:- 1.Cultural factors:- * Cultural factors come from different components related to culture or cultural environment of the consumer. + Culture can play an important role when it comes to understanding the needs of your customer.2. Social factors:- * Social factors are defined as the type of factors that influence consumer behaviour significantly. * The membership groups and reference groups influence an individual's social life. + An individual easily gets attracted and influenced by the people in their social circle and s something that definitely matters. 3. Personal factors: + This is yet the most important factor. « Your personal needs and desires matter the most. * Decision and buying behaviour of each individual definitely decides their consumer behaviour. * The factors that influence the buying decision of an individual can change with the duration of time.4. Psychological factors:- * Psychological factors are the most hidden and the most important ones that define an individual's buying decisions. ¢ An individual's perception decides what matters the most and it can directly affect the consumer's buying decisions.PHARMA MARKETING MANAGEMENT Unit 1 Notes Part 2 Notes PHARMACEUTICAL MARKET Market Research:- * Aresearch that engages collection, analyzing and dissemination of data pertaining to a target market is termed as market research. + It helps businesses understand their market and customers, make important decisions related to their products and services. + It connect better market with their target market market. Functions of Marketing Research:- * It helps in exploring new markets and their demands for the products. * It helps in estimation of potential demand for a new product.«It helps in production planning activity. + Itis useful in improving the effectiveness of the channels and methods of distribution. «It helps in getting customer feedbacks for the products and to do necessary improvements. Method of Marketing Research:- * Qualitative and Quantitative are the two methods of marketing research:- * Quantitative market research related to surveys, and questionnaires. * It can be performed over the telephonically, via internet or directly face-to-face. + Statistics makes easy to report data. * The disadvantage that the quantitative research is based on mostly pre-coded pre-decided questions. * Qualitative market research is planned to examine and discover topics using open-ended questions.* This research can help to discover a new market, understand about customer perceptions, in addition to generate or monitor ideas. Size and composition of market:- + India is the largest provider of generic drug globally. + Indian p'ceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. * For the development, production and marketing of medication, the P’ceutical industry has the big role. «In 2014, total P’ceutical revenues world wide has reached one trillion Us dollars for the first time. ¢ The chinese P'centical sector achived the higest growth rates in previous years.* The pharmaceutical market is heavily regulated, with government agencies such as the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA) overseeing drug safety and efficacy. Demographic Descriptions:- * Demographic descriptions refer to the characteristics of a population or group of people. + It is used to segment markets or understand consumer behavior. * Common demographic characteristics include: 1. Age:- * This refers to the age range of a population or group, such as children, teenagers, adults, or seniors. 2. Gender:- « This refers to the biological sex of a population or group, such as male, female, or non-binary.3. Income:- « This refers to the amount of money earned by a population or group, which can be used to segment markets or understand purchasing power. 4. Education:- + This refers to the level of education attained by a population or group, such as high school diploma, college degree, or postgraduate degree. 5. Ethnicity or Religion:- + This refers to the cultural or racial identity of a population or group, such as Asian, Black, Hispanic, or White. 6. Geographic location:- * This refers to the geographic region or location of a population or group, such as city, state, or country.7. Marital status:- + This refers to the legal status of a population or group, such as single, married, divorced, or widowed. Socio-psychological Characteristics: 1. Personality:- + This refers to a person's individual traits, suc openness (simplicity), extroversion (versatile), or honesty, which can influence their behavior and decision-making. 2. Attitudes:- + This refers to a person's positive or negative evaluation of a particular topic, product, or service, which can influence their behavior and decision-making. 3. Values: * This refers to a person's beliefs and princ which can influence their behavior and decision-making.4. Motivations:- + This refers to the driving forces behind a person's behavior, such as achievement, power, or affiliation, which can influence their decision-making. 5. Lifestyle:- * This refers to a person's patterns of behavior, activities, and interests, which can influence their purchasing behavior and product preferences. Market Segmentation:- * Segmentation is the process of dividing a market or population into smaller subgroups based on shared characteristics or needs. * The purpose of segmentation is to better understand and target specific groups of consumers with products, services, and marketing messages. There are various methods of segmentation, including:1. Demographic segmentation:- + This involves dividing a market based on demographic characteristics, such as age, gender, income, education, ethnicity, and geographic location. 2. Psychographic segmentation:- + This involves dividing a market based on lifestyle, personality, values, attitudes, and motivations. 3. Behavioral segmentation:- + This involves dividing a market based on consumer behavior, such as purchase history, usage rate, loyalty, and buying occasion. 4. Geographic segmentation:- * This involves dividing a market based on geographic location, such as region, city, or climate.5. Benefit Segmentation:- + This involves dividing a market based on the benefits that consumers seek from a product or service, such as convenience, quality, price, or safety. Benefits of segmentation:- 1. Better understanding of customer needs. 2. Increased customer satisfaction. 3. Improved targeting and positioning. 4. Increased profitability of market. Targeting:- « Targeting is the process of selecting a specific group of consumers or market segment to focus on with a company's products, services, and marketing efforts. + It identify the most profitable and attractive consumer groups and to tailor products, services, and marketing messages to their specific needs and preferences.There are several factors that companies consider when targeting specific consumer groups, including:- 1. Market size:- * Companies consider the size of the target market segment, including its potential for growth and profitability. 2. Consumer needs and preferences:- * Companies evaluate the needs and preferences of the target market segment. + It ensure that their products, services, and marketing messages are relevant and appealing to them. 3. Competition:- * Companies evaluate the level of competition within the target market segment. * [t determine whether there is room for them to enter and succeed in the market.4. Resources:- * Companies consider their resources, including financial, human, and technical resources. 5. Marketing objectives:- * Companies evaluate their marketing objectives. + It determine whether targeting a specific market segment will help them to achieve their goals. MARKET ANALYSIS : DIMENSIONS According to David A. Aaker dimensions of a market analysis are as follows:- Market size (current and future) Market trends Market growth rate Market profitability Cost structure of IndustryKey success factors Market Size:- + The market size is defined through the market volume and its potential. + The market volume is related to all sales volume of a particular market. * It is dependent on the consumer's quantity and their regular demand. Market Trends:- * Market trends are the downward or upward market movement, during a time period. . Market Growth Rate:- * Prediction of the market growth rate means that it uses historical data into the future. Market Opportunity: * A market opportunity of any service or product is based on either one or more technology.* It should fulfil the requirements of a market better than competitors. Market Profitability: * Several levels of profitability are there in various organizations in a market. Industry Cost Structure:- « The success is based upon the proper identification of cost structure. Success Factors:- + The important success factors are necessary for a company to get its marketing. ROLE OF MARKET RESEARCH:- + Marketing research provides data on the efficacy of the current marketing mix to decision makers. «It is the primary instrument for exploring new opportunities in the market place. « It does not make decisions and it does not provide the guarantee of success.* Marketing research links the consumer and public to the marketer via information. + It identifies opportunities and problems and monitors performance of marketing and improves understanding of marketing. + It specifies the information related to designs, the process of collecting information, result analysis and communicates the findings. Thank You Written by - Mithlesh Kumar YouTube Channel B.PHARM HANDWRITTEN NOTES