QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 1

1: THE PHARMACEUTICAL HEALTH CARE • Abilify, Atripla

INDUSTRY • 2009 Revenue = $ 18.8 Billion
• 2007 Ad Spending = $ 796.3 Million
KEY TERMS − $ 201.4 Million on TV
− $ 158.3 Million on magazines
ETHICAL PRODUCT
• Products that can be sold/availed on the pharmaceutical outlet that needs ASTRAZENECA
prescription • Merger between Astra (founded 1913) and British ICI
• Cannot be availed/dispensed without prescription (founded 1993) in 1999
• Seroquel, Arimidex, Crestor
PROPRIETARY/OTC
• Drug products that can be availed over the counter with/ without a doctor’s
• 2011 Revenue = $ 33.59 Billion
or physician’s prescription • 2017 Ad Spending = $ 697.4 Million
• Advertised in various types of advertisement or media (e.g., social media, − Spends more on Magazines than TV
television, newspaper) − $ 55.6 Million on TV
In the Philippines, there is a law stating that we cannot advertise prescription
− $ 196.9 Million on magazines
products; only over-the-counter products are allowed. In other countries both
prescription and OTC products are not allowed to be advertised/marketed. TOP TEN COMPANIES
In Terms of Market Capitalization
BRANDED 1 Pfizer $ 182.15 B
• Brand name is given by the manufacturer or producer of the product 2 Johnson & Johnson $ 180.88 B
3 GlaxoSmithKline $ 141.87 B
UNBRANDED 4 Roche Holding $ 135.28 B
• Sometimes pertaining to generic terminology or name
5 Novartis $ 128.65 B
• Pure generic molecule or product sold by its molecule name
− Generic: the internationally accepted name for specific molecule 6 Sanofi-Aventis $ 122.80 B
7 AstraZeneca $ 75.70 B
THERAPEUTIC CLASSIFICATION 8 Merck $ 72.71 B
• Examples are antibiotic, antidiabetic, cardiovascular, electrolytes, 9 Eli Lilly & Co. $ 64.67 B
minerals, etc. 10 Wyeth $ 62.78 B

DRUGSTORE SALES TOP SELLING DRUGS 2004

• Includes sales either in (U.S. only)
− chain or single (independent) drugstore,
1 Lipitor (Pfizer) $ 7.7 B
− dispensing physicians and clinics with drugstores
− industrial clinics
2 Zocor (Merck) $ 4.6 B
− institutional outlets like traders and sub-distributors 3 Prevacid (Abbott Laboratories) $ 3.8 B
• what we call the end-users or different types of customers 3 Nexium (AstraZeneca, for ulcer) $ 3.8 B
5 Procit (Ortho Biotech) $ 3.2 B
HOSPITAL SALES 6 Zoloft (Pfizer) $ 3.1 B
• Includes 7 Epogen (Amgen) $ 3.0 B
− government or private hospitals, 7 Plavix (Bristol-Myers Squibb) $ 3.0 B
− industrial and clinics with bed capacities, 9 Advair (Glaxo Smith Klein) $ 2.9 B
− primary, secondary, and tertiary hospitals
− government agencies
10 Zyprexa (Eli Lilly) $ 2.8 B
− industrial clinics with hospitals
− traders and sub-distributors selling to hospitals TOP SELLING DRUGS 2004
(Global)
PHARMACEUTICAL INDUSTRY 1 Lipitor (Pfizer) $ 12.0 B
2 Zocor (Merck) $ 5.9 B
PFIZER 3 Plavix (Bristol-Myers Squibb) $ 5.0 B
• founded in 1849 4 Nexium (AstraZeneca) $ 4.8 B
• Lipitor, Viagra, Caduet, Chantix, Advil, Robitussin 4 Zyprexa (Eli Lilly) $ 4.8 B
• 2011 Revenue = $ 67.425 Billion 4 Norvasc (Pfizer) $ 4.8 B
• 2007 Ad Spending = $ 1.253 Billion 7 Advair (Glaxo Smith Klein) $ 4.7 B
− Ad Spending: One of the expenses of a producer, industry, or 8 Erypo (Ortho Biotech) $ 4.0 B
company. Dito gumagastos halos ang company marketing next to 9 Prevacid (Abbott Laboratories) $ 3.8 B
research and development since this is the blood of the company. 10 Effexor (Wyeth) $ 3.7 B
“Business without sign is a sign of no business” so we need to market
our pharmaceutical products to reach and get the attention of the
end-users. THERAPEUTIC CLASS BREAKDOWN
− $ 456.6 Million on TV (Cholesterol: Sales in the U.S. in $ thousands)
− $ 225.2 Million on magazines
• Atorvastatin calcium (Lipitor)
− Pfizer is usually concentrated in heart medication (like Lipitor)
− $ 12.7 Billion in sales (cardiovascular products)
− $ 220 Million spent on advertising

BRISTOL-MYERS SQUIBB Drugs: Lipitor, Zocor, Pravachol, Crestor, Lovastatin

• founded in 1887
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 2

(Proton Pump Inhibitors/Stomach Acid: US sales, $ SELF-MEDICATION MARKET IN IRELAND 2010

thousands)

Drugs: Nexium, Prevacid, Protonix, Aciphex, Omeprazole

(Antidepressants: US sales only, $ thousands)

Drugs: Zoloft, Effexor XR, Lexapro, Wellbutrin XL, Cymbalta

MAIN CAUSES OF DEATH IN IRELAND 2010
SALES DATA
• Sales in prescription drugs increasing
− Up 6.4% in 2010 from 2009
− Sales of $ 261.8 Billion
• Generic Growth up 24.6% during 2010 because generic is
now recognized by the end-users

2019 PHARMACEUTICAL SALES BY REGION

% of
World Audited 2009 Sales % Growth
Global
Market ($ billion) (constant $)
sales ($)
North America 229.5 49% 11%
European Union 115.4 25% 8%
Rest of Europe 14.3 3% 14%
Japan 52.4 11% 3%
Asia, Africa and
37.3 8% 12%
Australasia
Latin America 17.4 4% 6%
TOTAL $466.3 100% 9%
This is the same with the Philippines; cardiovascular diseases are one of the
STOCK MARKET PERFORMANCE IN ASIA IN 2015 main causes of death or Filipino mortality and morbidity.
1 India + 84%
2 Pakistan + 75% 5 OF THE WORLD’S TOP 12 MEDICINES ARE PRODUCED
3 Korea + 54%
IN IRELAND
4 Philippines + 39%
5 China + 34% Rank Medicines Company
Drugs in the Philippines has the most expensive pharmaceutical products in Asia 1 Lipitor Pfizer
because in some countries, it is shouldered or supported by their government. 7 Enbrel Pfizer
8 Remicade Centocor (J&J)
10 Zyprexa Eli Lilly
12 Singulair Merck Sharp and Dohme
(Montelukast)

PHILIPPINES
• 2021 projected population: 110 million
0 to 14 years old
34.6% people • 17,999,279 males
• 17,285,040 females
15-64 years old
61.1% people • 31,103,967 males
• 31,097,203 females
65 years old and over
4.3% people • 1,876,805 males
• 2,471,644 females
• Population growth rate is 1.873% (2012 estimate)
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 3

• Manila is the most populated city in the PH with 11.449 * Distribution of sales to other trade outlets is assumed to follow the pattern
of Distributors and Manufacturers who Self-Distribute
Million people
These channels will be further discussed in Chapter 9.
• Place mix: we’re going to distribute our products up to the end-users

Ways of distributing pharmaceutical products from producer to the end-users

• The distributors or manufacturers, either local or multinational companies,
will distribute their products in the different traditional and non-traditional
market. You have the drugstore market, hospital market, and other retail
market.
• 80.1% are sold through drugstores. 9.7% are through hospital and
another 10.2% in non-traditional markets such as supermarket, sari-sari
store, convenience stores, etc.
• Examples of chain drugstores are Mercury drugstore, Rose pharmacy,
Watsons.
• Examples of non-traditional markets are industrials, clinics, and
government agencies like rural health units, municipalities, barangays, etc.

80% are sold through DRUGSTORES

10% are distributed to end-users HOSPITALS
10% are distributed to end-users DOCTOR’S CLINICS

MARKET TRENDS – ENTRY OF BRANDED GENERICS

TOTAL GENERIC PHARMACEUTICAL MARKET:

Market Age by Country Asia
Country Market Age CAGR (2011-2017)
Malaysia Growth 12.5
Philippines Growth 19.7
Singapore Growth 10.6
You need to have an idea of your population in different regions or your own Taiwan Mature 4.0
municipality so that if you have a drugstore or if you’re going to put up your CAGR: Compound Annual Growth Rate
business in your own location, you have the number of end-users/
customers/population in that specific area. The generic market in the Philippines grew 19.7%. If you noticed, Filipino market
use now the generic market/drugs because pharmacists are teaching them that
generically equivalent drugs with the same dose and dosage form have the same
PHARMACEUTICAL INDUSTRY STRUCTURE effect. Pharmacists know every product have different bioequivalence and
bioavailability, but we believe that generically equivalent drugs with the same
dose and dosage form are the same. This is how we teach our customers.
Manufacturers
In Taiwan, they’re still using branded pharmaceutical products since they are
already matured. While Singapore & Malaysia, when compared to Philippines,
Philippine Subsidiaries of Philippine Pharmaceutical Philippines lead the CAGR in terms of using pharmaceutical products.
Multinational Pharmaceutical Companies
Companies PHARMACEUTICAL PRODUCT CATEGORIES
64% 36%

Third-Party Distributors Self-Distribution

65% 35%

Manufacturers will distribute their products with these Philippine Subsidiaries of

Multinational Pharmaceutical Companies (64%, majority/monopolize the whole
country) and Philippine Pharmaceutical Companies (36%, less/local
companies). 65% are Third-party distributors and 35% for Self-distributors

CHANNELS OF DISTRIBUTION

Distributors or Manufacturers
who Self-Distribute Pharmaceutical Product Categories % Share to Total
Ethical (Rx) products 69
Drugstores Hospitals Trader or Sub- Over-the-counter (OTC) products 24
80.1% 9.7% Distributor * Nutritionals 7
Total Philippine Pharmaceutical Market 100
Independent Chain Private Gov't Other Retail OTC products are increasing because of self-medication.
17.4% 62.7% 7.4% 2.3% 10.2%

Consumers Consumers Consumers Consumers Industrials,

About 90% of ALL medicines are off-patent in the PH
Clinics Gov't
Agencies
w/o beds 0.3%
9.9%

Consumers Consumers

Covered by IMS’s PPI

Covered by IMS’s PHPA
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 4

PRICE COMPARISON TOP 10 OTC BRANDS IN THE PHILIPPINES

Branded Vs. Generics Rank OTC Brand Manufacturer Indication
1 Ceelin Pediatrica Vitamin supplement
2 Solmux Westmont Cough
3 Neozep Myra Cold
4 Biogesic Biomedis Pain relief
5 Enervon C United American Vitamin supplement
6 Alaxan Therapharma Pain relief
7 Myra E Myra Vitamin supplement
8 Xenical Roche Weight management
9 Centrum Wyeth Vitamin supplement
10 Cherifer Gx Pharma Vitamin supplement

PHILIPPINE EXPENDITURE 2018

As of 2018, prices of generics medicines decreased of the years. We hope
that our products will be less expensive.
Other Countries Philippines
Very Cheap 2% 10%
Somewhat Cheap 9% 33%
Somewhat Expensive 30% 37%
Very Expensive 58% 20%

TOP 10 BEST PHARMACEUTICAL COMPANIES IN THE

PHILIPPINES – 2012 Pharmaceuticals: Php 129.33 Billion
Rank Companies Healthcare: Php 407.67 Billion
1 Pfizer Pharma Medical devices: Php 14.99 Billion
2 Novartis Pharma
3 Merck Pharma DEMAND OF MEDICINES IN THE PHILIPPINES
4 Sanofi Aventis
5 GlaxoSmithKline
6 AstraZeneca
7 Johnson & Johnson
8 Abbott Laboratories
9 Eli-Lilly
10 Bristol-Myers

TOP 10 LEADING PHILIPPINE PHARMACEUTICAL

COMPANIES
Rank Companies % CAGR 4-years
1 United Lab 5.40
2 Pfizer Inc. -3.21 2011: Php 111.15 Billion
3 GlaxoSmithKline -2.41 2015: Php 222 Billion
4 Novartis 11.18
5 MSD 6.33 PHARMACEUTICAL HEALTHCARE – PHARMACEUTICAL
6 Sanofi-Aventis -4.25 MEDICINES
7 AstraZeneca -1.07
8 Boehringer Ingelheim 2.30 • Social insurance – 11%
9 Johnson & Johnson 3.08 • 11th most attractive pharmaceutical market in the Asia
10 Pascual Labs 8.92 Pacific Region (according to Business Environment
Rankings)
TOP 10 THERAPEUTIC CLASSES IN THE PHILIPPINES o Doing pharmaceutical business in the Philippines has potential or
Rank Therapeutic Classes Indication lucrative. Magandang mag-business in our country because, if you
1 Calcium antagonists Hypertension notice, the mode of payment is Out-of-Pocket or cash-basis.
2 Non-narcotic analgesic Pain relief o This is unlike most countries, which have third-party payers or the
3 Infant formulas Nutrition supplement Health Maintenance Organizations (HMOs). It’s very difficult to
4 Cephalosporins and combination Infection collect fees. Examples are PAGIBIG, PhilHealth, etc.
5 Broad spectrum penicillin Infection
6 Anti-rheumatic non-steroidal analgesics Pain relief
7 Oral anti-diabetics Diabetes
8 Multivitamins and minerals Vitamin supplement
9 Expectorants Cough
10 Cholesterol and triglyceride regulator Hypercholesterolemia
Calcium antagonists: cardiovascular drugs intended for hypertension

TOP 10 PRESCRIPTION BRANDS IN THE PHILIPPINES

Rank Rx Brand Manufacturer Indication
1 Norvasc Pfizer Hypertension
2 Ventolin GSK Asthma
3 Plavix Sanofi-Aventis Thrombosis
4 Augmentin GSK Infection Government funded: Php 1.77 Billion
5 Neobloc Gx International Hypertension Out-of-Pocket: Php 109.38 Billion
6 Lipitor Pfizer Hypercholesterolemia
7 Tazocin Wyeth Infection
8 Zegen United American-Unilab Infection
9 Plendil ER AstraZeneca Hypertension
10 Seretide GSK Asthma
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 5

SHARE OF MAJOR PRODUCT CATEGORIES ON SALES Reputation is extremely important for pharmaceutical companies. Like every
year, Fortune collaborated with Korn Ferry Hay Group (group of scientists) on
the survey of corporate reputations (Philippines counterpart: SWS Survey). To
determine the best-regarded companies in 51 industries, Korn Ferry Hay Group
evaluated 680 companies in 28 countries. Executives, directors, and analysts
have been asked to rate enterprises in their own industry. The list of
Pharmaceutical Companies that made it to the top is here.

Top 10 Pharmaceutical Companies 2017

Rx products: 69%
OTC: 24% (In the Philippines, we have self-diagnosis, self-treatment, or self-
medication)
Nutritionals: 7%

DIFFERENT TYPES OF MARKET

The global pharmaceutical market was estimated in USD 1.1 trillion in 2016.
The global market is highly mature and consolidated. The top 10 pharmaceutical
companies in this market had share of around 40% in 2016 and approximately
50% considering the top 15. A comparative analysis of the top 15
organizations was used to develop a ranking for these companies.

Top 10 Pharma Companies 1997-2017 (Revenue 1997)

AB (0.8% Affluent) C (8.1% Middle Income) D(54.7% Have less)
E (36.4% Have not): below the poverty line; have not yet accessed
healthcare/pharmaceutical products

THOSE WHO INNOVATE SURVIVE

Top 20 Pharma Companies Based on Investment 2017

Some of the Pharmaceutical companies of the 90s are no longer in the space
today. Those who survived had to innovate, develop, alter their way out of
crisis. Right now (pandemic), we will be needing vaccines so these companies
compete to produce the first vaccines in order to survive because that is the
demand of the market. Pfizer, AstraZeneca, Merck are doing their best to
innovate and come up with specific vaccine

GLOBAL PHARMACEUTICAL INDUSTRY

WORLD’S MOST ADMIRED PHARMACEUTICAL
COMPANIES 2017

Prominent pharmaceutical companies are renowned for their commitment toward

innovation, and they spend heavily on R&D. A list of top 20 pharmaceutical
companies in the world is given here that invest the largest sums in R&D in the
fiscal year 2015-16.

Novartis. The Swiss multinational company is based in Basel, Switzerland. It is

one of the largest pharma companies in terms of market sales and spent $ 11.2
billion in R&D in 2015-16 fiscal year.
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 6

Top 10 CROs 2016

Roche. Roche is a Swiss multinational healthcare company that has two divisions:
pharmaceuticals and diagnostics. The company invested $10.7 billion in R&D in
2015-16.

Johnson & Johnson. Johnson & Johnson is an American multinational

pharmaceutical, medical devices, and consumer packaged goods manufacturer.
It spent $10.3 billion last fiscal year in R&D.

Pfizer. This international American pharmaceutical company is headquartered in

New York. Its R&D spending reached $8.78 billion in 2015-16.

Merck. Merck is one of the largest pharmaceutical companies in the world, which
is currently operating in more than 140 countries. Its headquarter is in New
Jersey, United States. In fiscal year 2015-16, the company spent $8.03 billion
in R&D.

Bristol-Myers Squibb. This American pharmaceutical company spent $6.59 billion

in R&D in the last fiscal year. The company is headquartered in New York.

Sanofi. This French multinational pharmaceutical company is headquartered in

Gentilly, France. The company spent $6.54 billion in R&D in the fiscal year The global contract research market is growing at a strong rate owing to
2015-16. increasing patent expiration and declining R&D productivity. Furthermore,
increasing costs of new product development and revenue loss due to generics
AstraZeneca. AstraZeneca is a global biopharmaceutical company have resulted in high demand for contract researching of new biologics and
headquartered in London, United Kingdom. Its R&D spending reached $6.50 compounds. The global CRO market is highly consolidated with the combined
billion in 2015-16. market share of the top-10 companies in this market estimated to be around
80% in 2016. This consolidation can be attributed to the highly stringent nature
Bayer. Bayer is a German pharmaceutical and life science company which is of the market with requirements of high capital investment. The leaders in this
headquartered in the city of Leverkusen. It spent $5.53 billion in R&D in the last market include a mix of public-listed and privately held organizations.
fiscal year.
Top 20 Drugs in the World 2017
GlaxoSmithKline. GlaxoSmithKline is a British pharmaceutical company with a
mission to help people feel better and live longer. The company’s R&D spending
reached $5.25 billion in 2015-16 fiscal year.

In addition to these, here is the list of next top pharmaceutical companies that
invested heavily in the last fiscal year:
Abbvie ($4.86 billion)
Eli Lilly ($4.56 billion)
Amgen ($4.51 billion)
Celgene ($4.23 billion)
Boehringer Ingelheim ($3.74 billion)
Gilead Science ($2.77 billion)
Takeda ($3.29 billion)
Allergan ($3.06 billion)
Biogen ($2.30 billion)
Novo Nordisk ($2.17 billion)

The Most Innovative Biotech Companies of 2017

The global prescription drug market is expected to grow by 6% from 2016 to

2022 to reach nearly USD 1.05 trillion by 2022. The top 20 drugs are
manufactured by 14 companies and account for a total 10% of global
prescription drug market in 2016. The total revenue generated by top 20
products was estimated to be USD 0.128 trillion. A large number of the drugs
in the list are primarily for the treatment and management of cancer, diabetes,
inflammatory disorders, and HIV or HCV infections.
Humira’s (Adalimumab), annual sales exceed $16 billion. But few drug-makers
are willing to challenge the more than 100 patents maker AbbVie has
constructed around the medicine.

Top 10 Pharmaceutical Therapy Areas in 2017

Innovation is the key for the success of the Biotech industry. Hence, the innovation
strategy of a biotech company must evolve constantly if it wants to remain
competitive in the local and international market. Necessity is the mother of
innovation, and so the successful biotech companies are always focused on their
innovation initiatives in order to bring new products in the market for the benefit
of people. For this reason, the scientists and entrepreneurs working in this industry
are imaginative, revolutionary, inventive, and ingenious, as well as industrious.

Many new medications and treatments have emerged this year for improving the
management and prognoses of patients suffering from serious diseases. Driven
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 7

growing therapy areas such as oncology, anti-rheumatics, and anti-virals, the DRUG DEVELOPMENT PROCESS
prescription drug sales are increasing significantly.

Top 10 Pharmaceutical Companies in Oncology

Cancer Drugs: R&D Spending Vs Revenues

The market for oncology medication is booming, aiding the overall

pharmaceutical industry growth. The oncology drug market is estimated to be
almost USD 94 billion. Most of the top pharmaceutical players are either
currently manufacturing oncology drugs or have oncology medications in their
R&D pipelines.

Top 10 Oncology Drugs 1997-2017 (1997)

Cost of drugs has been matter of debate in recent years. It is often said that
R&D costs to develop new medications are extremely high and this is one of the
common arguments used to justify increasing drug prices. According to the
estimate by the Tufts Center for the Study of Drug Development, it takes $2.7
billion for a company to bring a single drug to the U.S. market, which is much
higher than the previous estimates. The perception of unjustified high costs,
especially of anti-cancer drugs has a significant negative impact on research,
manufacturers, insurances, and health authorities. Furthermore, groups of
Major pharmaceutical companies have invested immense resources into patients, regulatory bodies, and policymakers have started raising their voices
developing innovative treatments for cancer. Since 1997 the list of the best- opposing these high prices.
selling oncology drugs has evolved significantly. The high pace in drug
development is set to continue and in 2017 the whole oncology pipeline has over UPDATED VALUE CHAIN
600 molecules in late development stage.

Cancer Medication Market: A Blockbuster for Investment

END

Cancer is one of the leading causes of morbidity and mortality worldwide, but
therapeutic innovation has changed the treatment paradigm drastically. Cancer
medication demand is increasing due to high unmet medical need and incidence
rate. This reflects in growing revenues for pharmaceutical companies operating
in this space and increasing investments in oncology R&D. The key factors driving
the growth of this pharmaceutical segment are the large number of new
compounds with new mechanisms of action and the high cost of these medications.
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 8

2: THE PHARMACEUTICAL HEALTH CARE

CONCEPTUAL FRAMEWORK
BUSINESS IN THE PHILIPPINES
Effect of Self-medication and Self- Reason for
diagnosis
KEY TERMS
Over-the-Counter drugs

ADVERTISE PRODUCT
Socio-economic Status
Filipino Consumers
DRUG DEPARTMENT Educational Attainment Attitudes towards Self-
medication
• Establishments, part of the organization, or part of the establishment/
industry where drugs, medicines, pharmaceutical specialties, and chemical
drugs are imported for its sell or for the wholesale distribution or retail Promotion of Health Self-care
distribution
Reduction of Undesired Overall Health Status
DRUG Risks
• Agents or substances that are used to treat, mitigate, cure, or prevent Diagnosis and Treatment
diseases of man and animal Economics of Health Care
of Disease

ETHICAL DRUG PRESCRIPTION Effective Use of Professional

Health Resources Health Care System
• Ethical means drugs that need prescription issued by physician, dentist,
veterinarian, etc. before dispensed
Self-initiated and Self-controlled
Application of Skills for Health
HEALTH SERVICES Promotion

• Part of the hospital management that has been established for the In promotion of health, there will be a reduction of undesired risks, diagnosis
supervision and protection of the health of the public and treatment od disease, and effective use of professional health resources. All
• Administered by physician, dentist, nurses, veterinarian, etc. of these will be additional responsibility of pharmacists. The drugstore counter is
• While those services are effective means of ensuring a healthy, vigorous, a day-to-day reality for most pharmacists. You can encounter there a lot of
and well-rounded life for the members of its community or to the society, questions being asked by the end-users or customers. In certain aspects, self-
it develops, at the same time, large measures of goodwill on the part of medicating patient can represent the most challenging and most demanding part
public towards the hospital of pharmacist’s professional responsibilities. The self-medicating patient is most
frequently a self-diagnosing patient.

HOUSEHOLD REMEDY THEORETICAL FRAMEWORK

• Drug, mixtures of drugs or galenical, or official preparations for common
or ordinary use sold without medical prescription in original packages,
bottles, or packaging materials; the nomenclature of which has been duly Health Care
established
• Gamit sa bahay Medical Care Self-Care

MEDICAL STAFF Physicians | Nurses | Dentists | Pharmacists | Hospitals | Self-diagnosis | Self-medication

Clinics | Self-care
• Workers that are usually engaged in carrying a program for health
promotion or health protection specifically in school, college, Newer Trends
organization, university, or location (barangay, municipality)
Self-care Patients Self-medication Increased Professional
• Divided into honorary staff, consulting staff, active, associate staff, and Responsibility on Pharmacists
courtesy group
Self-initiated Knowledge of Illness

MEDICINE
Self-controlled Knowledge of Patients
• Mixture of drugs, chemicals, or pharmaceutical products;
• Preparations, mixtures, or combination of drugs that are intended for
current use in man and animal Knowledge of Drugs

Self
MEDICAL SERVICES medicating OTC Drugs Pharmacists
Patients
• Program providing services by physician, nurses, sometimes medical staff, Role

or other health workers to care for the health of the people in a community
or some other group of persons Knows nature of problem Helps patient retrace steps to
arrive at self-diagnosis

Probable resolution with non-

PROPRIETARY MEDICINE prescription Answers specific patient
questions
• Any drugs, preparation, or mixture of drugs, chemicals, or product
marketed under the trade name Present product or product If appropriate, recommends a
type product and provides adequate
instructions and warning
PRIMARY HEALTH CARE
• Lowest level of healthcare within a care delivery system (primary, Total healthcare can be divided into 2 general categories:
secondary, tertiary) • Medical care – provided by healthcare professionals like physicians,
• Available to the population/group of people within your location or nurses, dentists, and pharmacists in hospital, industrial, and medical clinics
community o Example: human resource in the clinic
• It is usually the first entry of population to community health services • Self-care – patient caring for themselves;
o self-care at least from money for OTC drug;
o many ranked low on a monetary basis like medical care, indicating
OTC that self-medication constitutes a significant and important
• Over-the-Counter component of self-care
• Similar to household remedies, specifically products that is used for self- o TYPES: self-diagnosis, self-medication, and self-care
treatment or self-care
Self-medication precludes guidance from licensed pharmacists and physicians.
WHO The trend towards self-medication places an increased professional responsibility
specifically on pharmacists, one of which requires a pharmacist to analyze each
• World Health Organization; an agency of United Nations patient condition and this decision on minor illnesses referred to for appropriate
medication. Divisions of pharmacists based on knowledge of illness, patients, or
drugs comprises the essence of professional services.
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 9

The new trend right now as additional responsibility of pharmacists includes self- • Knowledge of drugs and challenges to improve the
medication made by the self-care patients, self-initiated, or self-controlled. Since
this is now the trend of doing self-medication, it is now an increased professional consumers’ knowledge
responsibility of pharmacists. Therefore, if this is an increased professional • The role of self-care adviser
responsibility, we will be considering your expertise or knowledge of illness, • Counseling patients on selection and use of drugs
patients, and drugs. There is no doubt on knowledge of drugs but it is now an
additional responsibility for us, specifically when doing patient profile or
documenting patient history. Correlation of the Filipino Consumers’ Attitude Towards
Common Ailments and Self- Medication
The self-medicating patient is most frequently a self-diagnosing patient. Such
patient enters in the community pharmacy or they will come to our drugstore
1. On the attitude towards the choice of OTC drugs on the
having already determined their nature of problem, probable resolution with different services of information.
non-prescription (OTC), and the product type he intends to use or buy. The RANK SERVICES OF INFORMATION
pharmacist must not only answer specific patient questions but also must help the 1 Doctor’s advice
patient retrace the steps taken to arrive in self-diagnosing. If appropriate, you’re
going to recommend a product and provide adequate instruction and warning. 2 Advice of a Parent
Supposedly, it is unethical for us to recommend a product, specifically the 3 Knowledge of OTC drugs
prescription products, but we cannot avoid because of the situation right now 4 Proximity of Drugstore
(pandemic). We cannot even go to the hospital to consult a physician. So,
majority of what we’re doing now is self-medicating or you will be asking the 5 Advice of a Friend
first person to can be accessed specifically in community like the pharmacists. 6 Advice of Drugstore Personnel
7 Television Advertisement
We are now the front-liners customers consider, specifically self-care, self-
medicating patients, and those who cannot afford to consult a physician because
8 Radio Advertisement
of their consultation fee (350 is the cheapest). The method of payment in the 9 Outdoor Advertisement
Philippines for healthcare services is out-of-pocket always. We don’t have the 10 Print Advertisement
HMO (Health Maintenance Organization; third-party payer) and you’re lucky if 11 Social Media/Online Advertisement
you have an insurance to pay for the service, unlike others who don’t have
savings or extra money for their health (for example those in below the poverty 12 Drugstore Display
line).
2. On the attitude towards Self-medication practices
Therefore, we cannot avoid the self-diagnosing and self-treatment practice in
the Philippines. This includes patients below the poverty line and those who RANK SELF-MEDICATION PRACTICES
doesn’t have the same status as us in terms of education, the rich/elite market, 1 Necessary Remedy
and middle-income market. You also need to consider your market, which is 2 Temporary Remedy
health-related professionals (they have an idea regarding the disease, drug).
Sometimes, health-related professionals self-medicate/self-treatment too since
3 Safe and Convenient
we have knowledge on disease and drugs. Thus, we should know the nature of 4 Illegal
the problem as pharmacists if we will be doing a self-medication and the 5 Dangerous
probable resolution of the non-prescription. Supposedly, we are not
recommending pharmaceutical product, especially prescription. But since it’s
OTC, it is now acceptable to our system that the pharmacist can recommend 3. Intention of buying
OTC. However, Mr. Tubon believes it is unethical for us to recommend a drug to INTENTIONS/PURPOSES OF BUYING OTC
a patient who’s seeing a physician. It is against our Code of Ethics and the RANK
DRUGS
practice of pharmacy.
1 To seek immediate relief of minor ailment
Under product type, there should be a prescription coming from the physician. 2 To save time and efforts going to a doctor’s clinic
But since it’s a self-medicating patient, you must interview a little bit about the 3 To save money on prescription drugs
probable cause of this self-limiting diseases (cough, colds, headache). Maybe
self-medication is already accepted in our country, but other countries really
4 To avoid cost of consultation of doctors
advise their patient to consult first the prescriber/physician.
4. Frequency in buying OTC drugs.
SELF CARE RANK FREQUENCY IN BUYING OTC DRUGS
1 Only when necessary
• Self- Medication is more readily available, more 2 Twice a month
convenient, and in some countries still cheaper than 3 Once a month
professional help in relieving minor symptoms and 4 Three times a week
ailments 5 Two times a week
• Self-medication keeps individual functioning in times when 6 Once a week
he would otherwise be quite unnecessarily indisposed by
ingestion, headache, or constipation 5. Percentage in buying OTC drugs
RANK PERCENTAGE IN BUYING OTC DRUGS
PHARMACIST TODAY 1 Small Percentage
2 Five Percent
• First person to be contacted by a person with minor 3 Ten Percent
ailments 4 Fifteen percent
o The pharmacist has a distinct contribution to make in assuring that 5 Over twenty percent
self-medication achieves its greatest good and at the least possible How much in percent are they willing to spend in buying OTC drugs with
harm through his/her explanation, advice, warning, expertise, or their salary of income?
knowledge about drug information to be given to the end-users or
customers.
o Considerable attention is given to remedy inefficiencies in the 6. Places which are considered convenient or advantageous
delivery and quality of healthcare in our country. We have seen the in buying OTC drugs
advent of extended health facilities, physician and pharmacy Places considered convenient or advantageous
assistants, increased emphasis on health group practices (HMOs) or RANK
insurances, and many funded studies or programs for delivery of in buying OTC drugs
healthcare. 1 Drugstores
o Currently, many people have fit OTC drug advertising into an 2 Sari-sari Store/Convenient Store
approved healthcare delivery system
o The evaluation of advertising OTC drugs carries with it the 3 Grocery/Supermarket
assumption that OTC drugs under home remedy category should be 4 Gasoline Stations
available to the public. 5 Rural Health Units
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO 10

Rural health units or botika in barangays or sometimes, they can avail in

their municipality?

7. Primary basis in buying OTC drugs

RANK Primary basis in buying OTC drugs
1 Effectiveness of the product
2 Safety of the product
3 Price of the product
4 Popularity of the product
5 Presentation of the product
6 Manufacturer of the product

8. Self-medication practices on common ailments

RANK COMMON AILMENTS
1 Headache
2 Fever
3 Cough and Colds
4 Flu
5 Sore Throat
6 Itchiness
7 Skin Rashes
8 Diarrhea
9 Sore Eyes
10 Muscle Pain
11 Pimples
12 Minor Burns
13 Abdominal Pains
14 Dysmenorrhea
15 Athlete’s Foot
16 Poor Appetite
17 Measles
18 Chest/Back Pains
19 Hemorrhoids
20 Ulcers
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO, NJTAMAYO
3

3: The Pharmaceutical Marketing System MARKETING CREDO

There is only one valid definition of Business purpose: To
CUSTOMER create customer (According to Peter Drucker)
• we the end users, one who buy something especially one who deals regularly
at the given establishment either this is informal one or formal to dealt with. MARKETING
The one who will buy pharmaceutical products or goods, services in our
establishment.
• A total system of business related activities designed to plan
DEMAND (the 4Ps of marketing), price, promote and distributive want
• the desire to possess, combine with the ability to purchase a potential amount satisfying products, goods, and services to target markets
of certain good or services in our establishment. Amount of certain goods to achieve organizational objectives.
that will be purchased at a given time for a given purchase. o This will be design not “to plan” the product, distributive means this
EXCHANGE will be your “place”. We have 4Ps of marketing.
• to give and received reciprocally. Meaning to say if the product and money o The purpose of marketing is to satisfy, delight, and surprise your
exchange together, it is now a business. To give up for something taken as customer. If you say pharmaceutical manufacturing then it is a unique
replacement or to transfer to another in return for the equivalent in goods or bundle of management, decisions to satisfy, delight and surprise your
money. You need to offer something and ang kapalit non ay money. If the customer based on their needs and wants.
money and the product exchange together, that will be a business.
HUMAN NEEDS PHARMACEUTICAL MARKETING
• in layman’s term ay pangangailangan. This is the quality or condition of • A unique bundle of management decisions directed to
lacking or feeling the lack of something necessary or desirable. It is a Desire satisfy, delight, surprise customers in the pharmaceutical
or longing something wanted or required or state of felt deprivation in
person. business, their NEEDs and WANTS through exchange of
HUMAN WANTS products and value with others, towards early realization
• to fill a desire or wish for to deficient in be without; or to be lacking to the of desired goals.
extent of; or expression of desire, human wants, nais, gusto, ibig, a form that o Satisfying is by giving quality
the human needs take a shape by ones culture and individual personality. o If you say satisfying your customer, this will need their needs or want
Depende yung preference. for high quality products or services. Lahat ng company, they are
HOSPITAL MARKET saying they have high quality product or high quality services even the
producers of pen. No one is telling na walang quality ang product or
• refers to institution either private or government hospital, industrial clinic or services nila, always satisfy your customer with your high quality
otherwise that maintain self-care facilities and services to both inpatient and services and product because this will be the reputation of your
outpatient. Inpatient or outpatient here pertaining to our customers or market. company or business. Your customer will not come back if they are not
IN-PATIENT DEPARTMENT satisfied based on their needs or wants.
• the IPD, provides services to the medical needs of patient required to recover o Delighting your customers is after sale services that you can offer
in the hospital. Normally IPD patients understand the direct management of your customers or services beyond the product features. Ex., once you
medical specialist or in some cases the resident physicians who will issue dispense antibiotic in product form, you can delight your customer by
prescription to be given to patient or customer again specific to the inpatient saying kung rereconstiutute na ba yon or prepare na yung medicine,
or confined patient or patient brought to the hospital pharmacy. after reconstituting you’re delighting your customer. This is services
MARKET beyond the product features like warranty guarantee, these are free
• very broad definition of market, a trade or commerce in specific service or delivery services that are beyond your product feature.
commodity, depends ang market natin that’s why we have different dosage o Surprising is usually done by direct competitors like freebies, discount,
form or style of infant products. Like for ex. Infant market, that will be drops and additional products like for example additional volume in
or solutions. If you say capsules of tablets, that will be adult market or elderly shampoo, adding more pieces. It will goes normal expectation like
market. We have the female, male market, we have based on income market buy 1 take 1, bargain, discounts.
which are the elite, middle income, lower income or below poverty line. It o These are the three objectives of pharmaceutical marketing: satisfying,
depends on the specific service or commodity that you are selling or offering delighting and surprising your customers.
to your market. A region where one can sell a category of persons, institutions
and others considered as buyers, end-users, consumers, patient, client, these 3 KEY ELEMENTS OF MARKETING
are all considered as market.
MARKETPLACE
• a place where something is offer for sale, offer wherein a customer can buy, 1) Satisfying Customers
a set of actual and potential buyers of a product. A margin place where ideas, 2) Delighting Customers
opinions, and works are tested and traded.
MARKET VALUE 3) Surprising Customer
• amount that can be obtained for goods on the open market and it is also - As an entrepreneur, don’t forget these 3. These are the 3
known as market price. most important goals or objective of marketing
MARKETING CONCEPT
• management philosophy that holds the achieving organizational goals
depends on determining the needs and wants of your target market. 5 WAYS TO DIFFERENTIATE SELLING AND MARKETING
NON-TRADITIONAL MARKET
• includes sari-sari store, gasoline station, and convenient store. Drugs outlet SELLING
wherein the patient can buy such as groceries, supermarkets, trading store,
sari-sari store, di mo akalain na may mga OTC or pharmaceutical products • Emphasis on the product (goods and services)
that they are selling. • Company first makes the product and then figures out how
OUT-PATIENT DEPARTMENT to sell it
• the OPD, services that medical needs of patient that are not confined inside • Management is sales-volume oriented
the hospital. o padamihan lang, kung ilang volume ibebenta
TRADITIONAL MARKET • Planning is short run oriented
• drug outlet or outlet of pharmaceutical products such as drugstore, hospital o mga products na di nagtatagal sa merkado, seasonal
pharmacy, industrial clinics, private and medical clinics, dispensing physician
clinic. • Stresses needs of sellers
o yung pangangailangan

Selling emphasize your goods and services. In selling you are after only your
product, you don’t care if your products will not satisfy your customer but in
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO, NJTAMAYO
4

marketing more on needs and wants. In selling, first the company made the product OBJECTIVES OF 3Cs OF MARKETING
and that’s the time you’re going to figure out how to sell it, that is only selling, it
is objective. While in marketing the company first determines the customers need CUSTOMER
and wants then figure out how to make the product or deliver these products based • To competently satisfy the needs, wants and expectations
on needs and wants of their target. Bago gumawa, planuhin muna maigi because
based on needs and wants. In selling, usually seasonal products like Christmas
of target customers.
decors. COMPETITION
• To outperform them all the time.
MARKETING COMPANY
In marketing, we have customer needs and wants. Planado because this will be • To ensure corporate health and profit
based on needs and want of your target client o Main objective is profit
o Remember that company is equal to profit, without profit, company
• Emphasis is on customers’ wants will not exist, and business will not exist. Objective of the company is
it should be corporate health specifically your assets, liabilities etc.
• Company first determines customers’ wants then figures out and the profit.
how to make and deliver a product to satisfy those needs
and wants INPUT AND OUTPUT OF MARKETING
• Management is profit oriented 1) Customer-Sales
• Planning is long run oriented 2) Company- Profit
o Examples are appliances in pharmaceutical products. Ex., Coca-cola,
long generation na 3) Competition- Market share, your contribution.
• Stresses wants of buyers- based on needs and wants of
buyers o Ex. This is a pie and your competitor has 95% share (almost
monopolizing the market) and you have 5% share, that will be your
market share. Your objective is to outperform them all the time, meron
FUNCTIONS OF MARKETING kayong inaasahan like for next year we will be having 50% or tayo
yung 95% next year and sila yung 5%. That’s your market share, in
• Market research order to know your performance in the market
o Ex. Avon Company, the company before are only catering female
market because their products are intended for female only. But
because of their marketing research, they are now creating product MARKETING EFFECTIVENESS
for male market, as well as all ages (children, elderly). This is the • Better than before
purpose of market research. Another example is PWU, catering
o measure through sales and ofcourse your market share compared to
exclusively for women. San Beda, their market is male so they include
your competitor (that will be your basis or indication of your
now the female market because they have different course offerings
performance). Ex. Ang performance mo ngayon based on drugstore
now intended for female market. CEU before are exclusive for female
market, example kayo ang pinakamababa ang sales. You should
before, now for male also.
improve your sales better than last month or year.
• Product planning • Better than others
o - Discuss here the cycle of a product, how to innovate, plan, develop,
o specifically your competitor, if your competitor is doing well edi pag-
modify or alter your product. Wala pang product na nakagisnan na
igihan mo. It should be better than your competitor especially your
di nagbabago in terms of packaging, label, features, style. They
services offered to your customer.
always innovate, change and improve their product.
• Pricing • Better than expected
o Ex. Your sale last year is 1M and you are expecting 2M this year
• Distribution pero naka-3M ka so better than expected.
• Promotions
• Customer Service 9 CORE CONCEPTS
o most important is to handle difficult customers 1) Needs
2) Wants
Product, Price, Promotion and Distribution are your 4Ps
3) Demands
MARKETING STRATEGIES DEPENDENT ON 7 FACTORS 4) Value & Cost
1) Product’s life cycle stage- 5) Exchange
6) Transaction
o We have different types of this including introductory stage, growth 7) Relationship Marketing
stage, majority stage, decline stage and obsolescent or death stage 8) Products
of the product from alpha omega, introduction down to death of
product 9) Markets
2) Competitor’s strategy
3) Economic condition NEEDS
4) Product portfolio To be in want of; requirement; the lack of useful or desired thing
5) Company resources
6) Market research MASLOW’S HIERARCHY OF NEEDS
7) Market intelligence • Physiological or body needs
o (ex. Food, clothing, medicine, shelter)

We have 2 interacting componenst of maketing: Company or market. Market here

• Security and safety needs
palitan natin ng customer para maging 3Cs so Company or Customers. This o (ex. PPEs, bioavailability, potency, expiry date, job security – tenure
if you will be permanent or probationary warranty guaranty)
equation, the interacting, it should be equal because without customers, company
will not exist. Remember you are doing business because of them, without • Social needs
customer/market, the business will not exist. The market composed of two o (ex. Belonging to pharmaceutical organization or related fields,
interacting components: customer and competition. Therefore, we have 3C’s of barkada, etc)
marketing: customer, company and competition/competitor. • Ego needs
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO, NJTAMAYO
5

o (ex. Your knowledge on pharmaceutical marketing, self-expressions, dealers, and suppliers, accomplished by promising and
certifications, knowledge on your different subject courses, knowledge delivering high quality products, goods, services, and fair
on drugs)
prices to the other parties over time.
• Self-actualization
o (ex. Achievement, fulfillment in pharmaceutical business, carer in
pharmacy like example who knows you will be the next president, who PRODUCTS
knows you will be the next dean, who know you will be the next board
examiner, who know you will be the next owner of drug store chain – • Anything that can be offered to target clientele to satisfy
fulfillment with regard to your different area) a need and want.
• Kotler….
Figure 1. Maslow’s Hierarchy of Needs o offerings
o satisfiers
o resources
▪ that are capable of delivering
satisfaction of a want or need
8 TYPES OF PRODUCTS
1. Physical Objects
2. Places
3. Activities
4. Persons
5. Organizations
6. Idea
7. Service
8. Information

5 LEVELS OF A PRODUCT
1. The Core Benefit
2. Generic Product
3. Expected Product
DISCUSSION TO BE CONTINUED… 4. Augmented Product
5. The Potential Product
WANTS
• To require; wish for; something desired 3 GROUPS ACCORDING TO THEIR DURABILITY OR
• Examples TANGIBILITY
o Products 1. Non-Durable Goods
o Pricing Schemes 2. Durable Goods
o Promotions 3. Services
o Place
o Warehousing 4 TYPES OF GOODS ACCORDING TO CONSUMER
SHOPPING HABITS
DEMANDS 1. Convenience Goods
2. Shopping Goods
• To ask for as a right; to ask for with authority; a claim
3. Specialty Goods
VALUE 4. Unsought Goods

• Worth; utility; precise significance; to rate at certain point; 3 TYPES OF SERVICES

to regard; to estimate 1. Rented Goods Services
COST 2. Owned – Goods Services
• The price paid; amount demanded; a charge; a price;
equivalent amount to obtain the product 3. Non Goods Services

EXCHANGE RENTED GOODS SERVICES

• Is the act of obtaining a desired product for • Involves the leasing of a goods for a specified period of
someone by offering something in return time
• 3 Types of Exchange • Examples: car, hotel rooms
1. Self Sufficiency
2. Centralized OWNED GOODS SERVICES
3. Decentralized • Involves the attraction or repair of a good owned by the
consumer
RELATIONSHIP MARKETING • Example: repair services
• Smart marketers try to build up long term, trusting, “WIN- NON – GOODS SERVICES
WIN” relationship with valued customers, distributors,
 QJCABIGAS, AJCHU, JJBUENAFE, MGAUDARIO, MLLUGO, NJTAMAYO
6

• Provides personal services on the pan of the seller, it does Figure 3. Flow of Rx in Hospital OPD
not involve a goods
• Examples: accounting, legal, consultation

MARKET
Consists of all potential customers sharing a particular need
and wants who might be willing and able to engage in
exchange to satisfy that need or wants

3 TYPES OF PHARMACEUTICAL MARKET

1. Traditional
2. Non Traditional
3. DOH or NGOs

THE PHARMACEUTICAL MARKETS

• Traditional Markets
Figure 4. Flow of Rx in Hospital IPD
o Drugstores
o Hospitals
o Industrial clinics
o Medical Clinics
o Dispensing Physicians
• Non-Traditional Market
o Groceries and supermarkets
o Trading stores and
o Sari-sari stores
• DOH/NGO’s
o Municipalities
o Regional Health Office
o Rural Health centers
o Barangays & sitios
o Botica sa bayan

THE TARGET CONSUMERS FOR DRUG PRODUCTS Figure 5. Flow of Rx in Hospital ERs

1. Income Level

2. Age Classification

3. Gender

4. Educational Attainment
END OF PPT
5. Geographic locations
 ANG, TAMAYO, TRISTE, VIÑAS 1

4: THE MARKETING MANAGEMENT PACKAGING

• The preparation of goods for distribution and sale in bottles, boxes, cans, or
PROCESS AND STRATEGIES other containers. This includes the design and the testing of containers and
Successful drug companies, trade outlets and allied health institutions to a large container materials.
extent depend on marketing as the main system for monitoring and adapting to the PERCEPTION
increasingly changing pharmaceutical marketplace. • This is insight, apprehension, discernment, or comprehension. The study of the
complex process by which patterns of the environmental energies become
As we all know, marketing practice is perceived by most people as mostly known as objects, events, people, and other aspects of the world.
advertising and selling of products. But more importantly is a whole process of QUALITY
matching the company into its best opportunities. Selling with all its complexities is • Something special about an object that makes it what it is. An essential
only a phase of the total marketing effort. It represents one of the so-called attribute and characteristics about the object being sold.
marketing functions defined as one of the activities which help facilitate the flow of
goods from the producer to the consumer. All marketing activities are claimed at QUALITY CONTROL
fostering increase sales at some time and some way. In fact, some activities are • Inspection of manufacturing products from the raw materials that go into their
done purposely to win a large secure share of the reputable markets. Markets are finished form to ensure that it would meet the quality standard set by the
convenient places where buyers and sellers could meet face-to-face, exchange manufacturer.
goods and services. TECHNOLOGY
• The body of tools, machines, materials, techniques, and processes used to
OBJECTIVES produce goods and services that satisfy human needs.
• Understand and discuss the Marketing Management process
in the Drug Industry. MARKETING MANAGEMENT PROCESS
o Analyze Market Opportunities
o Select Target Markets 4 KEY ELEMENTS
o Develop Marketing Mix
o Manage the marketing effort ANALYZING MARKETING OPPORTUNITIES
• Explain the three types of forecasting • Drugstore owners like community pharmacists, hospital chief pharmacist,
• Differentiating between market targeting, market hospital administrators, and marketers in the drug industry throughout the
marketing management process are the needed resources to be able to make
positioning, and product positioning a databank of drug industry information. This is to be able to appropriately
• Describe the four P’s of the marketing mix. analyze pharmaceutical marketing opportunities such as the attitude,
o Product, Price, Promotion and Place perceptions, feelings, impressions or buying motivations of consumers or users
from drug products. Likewise, the need for up-to-date information pertaining
to the internal and external environment that would most likely affect the
KEY TERMS pharmaceutical business.
• Analyzing marketing opportunities include the sociopolitical, economic,
ADVERTISING cultural, and technological forces, competitors, buyers, suppliers, resellers,
• Bringing to a public notice by radio or television announcements, public and publics in the drug industry.
notices, posters, or other means • The internal and external environmental sources refer to the companies
• The business of preparing, publishing, or circulating advertisements records such as the pharmaceutical marketing research, marketing intelligence
ADVERTISEMENT and management information system in the total delivery of the health care
system. In a way, all of these affect the company and its consumers, either
• A public announcement or printed notice, recommending some product or favorable or not.
service or informing of some need
• We cannot afford to be complacent in our expectations, attitudes, and
• Usually published in a newspaper or magazine, displayed by posters, overall performance, particularly in our current products and in the current
streamers, billboards, or others. drug market industry performance. The market is very volatile, especially the
• May be distributed by circulars or broadcasted over the radio, television, or environment, as it is constantly bombarded with threats and countless
social media. problems from within and from the outside. In this regard, we are constantly
COMPETITOR finding ways to minimize the threats and turning them into opportunities and
• A person who tries to win or gain something that is wanted by others. strengths – optimizing available resources for research and offering better
COST values and maximum satisfaction to the target market.
• The act or process of predicting on the business of present trends of probable
conditions or events to come.
• Forthcoming business activity.
IMPRESSION
• An effect produced by any operation or activity
• An effect produced by a person
MARKETER
• A person who buys or sells in the market
MARKET PRICE
• The price that an article brings when sold or known as the CURRENT PRICE.
MARKET SEGMENTATION
• The grouping of consumers by demographic factors, psychographic factors,
and geographic factors.
• The process of classifying customers into groups with different needs,
characteristics, and behavior.
MARKET RESEARCH
Company = Customer, so the main concern is in the middle surrounded by the 4
• An organized effort to gather information about the target market and P’s. There are some internal factors to be considered that may include in the
customers. This starts with their behavior, preferences, and who the customers marketing process: suppliers, marketing channels, publics (customers), and
are. competitors. You would also need to consider the external factors such as the:
• An important component of business strategy and a major factor in demographic economic environment, technological natural environment,
maintaining competitiveness. sociocultural environment, and political legal environment. Always use the SWOT
analysis, specifically the strength and weaknesses as they pertain to the internal
factors that may affect the business. While the opportunities and threats would refer
to the external environment that may affect the business.
 ANG, TAMAYO, TRISTE, VIÑAS 2

• Internal environment • Market Segmentation

o Management information system o It is the process of classifying customers into groups with different
▪ Recall your PHA617, in which the management and the strategies needs, characteristics, and behaviors. A market segment consists of
of a manager: Planning, Organizing, Stopping, Directing and consumers who would respond in a similar way to a given set of
Controlling. marketing stimuli.
▪ Includes technology o An example would be anti-infective market where consumers would use
the more expensive antibiotic brands or products from multi-national
o Marketing Plan companies, these would be from the non-price conscious buyers. Another
o 4 P’s of Marketing segment would include buyers whose primary considerations in purchase
• External environment decision is mainly price and may or may not buy generic drug products
o Competitors or lower price brands from local companies. Other market segments
are those who would prioritize either efficacy, safety, better taste, and
o Suppliers flavor or would desire another dosage form (blisters or foil packaging)
o Publics for purposes of convenience, attractive packaging designs and colors,
o Marketing Channels smaller or bigger sizes, utility containers, or bottles for other uses of
the product formats that are widely used and accepted.
• External Variables
o Demographic/Economic Environment • Market Targeting
o Most drug companies and trade outlets would participate actively in
o Political/Legal Environment several related or non-related market segments and would offer a
o Technological/Natural Environment complete range of product market lines. An example of this would-be
o Social/Cultural Environment drug products that may be found in different formats, such as drops
that are intended for the pediatric market for those 1 – 9 months old.
Liquid or suspension forms would be intended for the pediatric market
SELECTING TARGET MARKETS for those 1-12 months old. Tablet or capsule market would be intended
Many drug companies and outlets service different kinds of pharmaceutical for the adults for those 13 years old and above.
consumers with different needs and wants. While it may not be possible to o If your product is a health food product, your target market would be
successfully satisfy all consumers, it is fitting that we would specify and choose a all age groups from the male and female market plus the upper class
specific segment that the company would be able to directly serve better. income brackets. Another example is cosmetics products so this will be
female market young and adult 18 years old and above target
market. Specific example of target market - Biogesic tablet, target
4 steps to address the issue of selecting a target market: market would be upper class market. Medical tablets – target market
1. Demand, Measurement, and Forecasting would be the C, D, E market. United paracetamol tablet – target
2. Market Segmentation market would be generic conscious market.
3. Market Targeting • Market Positioning
4. Market Positioning o This is a product positioned is the place – the market occupied in
Author: Philip Kotler consumers' minds relative to competitors. If a product is for sale to
be exactly like another product on the market like those copy-cats,
me too, look a like imitations so those are the reasons why some
• Demand, Measurement, and Forecasting consumers do not want to buy. Market positioning is arranging for a
o Example, the drug companies can make an estimate of the current size product to occupy a clear distinctive and desirable place relative to
of the drug industry, its various marketing segments, subsegments, the competing products in the minds of target consumers. Marketers
competing product, the current sales. You would need to consider the therefore plan positions that distinguish their product from
market potential, as we discussed in module 1, the top 10 competing product and that gives them a greater advantage in
pharmaceutical companies and the top 10 products not only here in our their target market. Ex. Mercury drug – nakaksigurado gamot ay
country but in Asia and the whole world. The future of the market laging bago, United generics – doctors prescribe with confidence,
growth for over the counter or proprietary drug products may be Medicol – safe given pregnant women, Biogesic - safest pain
related for the continuing tendencies of people to become health reliever, enervon tablet- antistress formula, neozep tablet is
conscious, such as in module 2, self-medicating and self-diagnosing positioned to be as cold specialist, UST is the royal pontifical
practices. catholic university, SM –we got it all for you
o It is highly imperative that in today’s computer-based marketing
environment that we would be able to measure and forecast the
immediate impact of these practices into quantifiable terms with respect DEVELOPING MARKETING MIX
to market demands, market growth, potential for over-the-counter • This pertains to the 4 P’s of Marketing: Product, Price, Promotion, and Place.
drugs so that timely and appropriate marketing decisions would be
implemented in full force. MANAGING THE MARKETING EFFORT
o Drug companies would periodically prepare a product forecast in units
• This will further be discussed in the following sections (yan lang yung sabi ni
and in absolute amounts. They are annually broken down into semestral sir)
or quarter or monthly targets based on several factors in the external
and internal environment. These targets are further divided into
subsegments and sometimes would group into regions, area, territory MARKET SEGMENTATION
and by type of outlet or customer segments. Drug outlets do the same • is the process of classifying customers into groups with
in forecasting demand, example: fast-moving items, slow-moving, and different needs, characteristics, or behavior
non-salable lines. Marketing approaches are implemented to
significantly meet the forecasted demands. • is the process of identifying more homogenous sub-markets
o There are many sequences that goes into this and examples of some or segments within the market. In order to select target
companies that have this are United Laboratory. Example of one of the markets and develop suitable marketing mixes.
steps in the sequences are the ones that determine the purposes for which
forecast to be used, such as production and marketing requirement and
budgeting. Some companies would divide the product into homogenous Market segment
groups (therapeutic subsegments and segments), either ethical drugs/
OTC or a proprietary drug or by product division. Determine the factors
The division of a market into different homogenous groups of
that would affect the sales of each product category, such as demand, consumers. This should be:
competition, or other environmental factors and their relatively • Measurable
importance. Another one is to choose the best forecasting method best
suited for the job, such as percent to net sales and many others, and • Accessible by communication and distribution channels
crosschecking the deductions resulting from the market analysis, such as • Different in its response to a marketing mix
assumptions and hypothesis. Also analyze the pharmaceutical market
data both from internal and external factors. • Durable (mot changing to quickly)
• Substantial enough to be profitable
 ANG, TAMAYO, TRISTE, VIÑAS 3

o 3 examples would be Biogesic tablet – upper class market, Medicol

4 DIFFERENCES IN MARKET SEGMENT IN IDENTIFYING tablet –C,D,E income brackets. (kulang isa, 2 lang sinabi ni sir)
CHARACTERISTICS OF BUYERS 2. Market segment expansion
o Target one product to several segments. Market base for one
1. The reasons for buying or using certain products product is expanded – specific segments have well defined needs
2. Buyer's preferences for certain brands of products for the sum product and appeals directed to one segment will not
3. In segments of industrial product-markets affect another segment.
o Ex. Johnson’s baby powder – target market infants and adult
4. Factors such as age, income, and lifestyle market and if you are going to position Johnsons makes you smell
like a baby and Johnson’s baby shampoo – target market infant
3 Major Factors in Market Segmentation and adult market so its in the position of making your hair soft and
gentle like a baby
3. Product-line
o Directing several products to one segment
o Is usually part of a single line.
▪ Ex. Neozep cold tablet, Neozep syrup, Neozep nasal spray and
Neozep cold drops
▪ Target is anticold in the market
4. Differentiated
o The firm differentiates its product offerings to meet the needs of
particular segments.
o The firm appeals to more segments, fragments, efforts and
increases its cost.
o Ex. Nescafe - different offerings targeted to the taste,
decaffeinated, for example, and convenience segment of the
coffee market either milder or stronger blends)
5. Benefit
o Identifies segment of what consumers want by the need for
performance durability or economy by buyers’ emphasis on delivery
or reputation or convenience.
o Ex. Diet coke – for customers who are in a strict diet, Zesto with beta-
• Demographic factors carotine, Colgate with germicidal against swollen gums and Hapee
o Segments based on consumers income, educational attainment, toothpaste make your teeth sparkling white from their tagline “ngiting
gender, etc. kumukutikutitap”, Revicon Forte to reserve energy.
• Geographical factors 6. Behavioral
o Segment customers by region o Focuses on what consumers do by the types of products and what they
• Psychographic factors frequently buy.
o Attitudes and behavior o Ex. Softdrinks for heavy drinkers, brand loyalty – users of Alaxan
tablet or users of Medicol and Biogesic, Hemox for amoxicillin
• Companies/Businesses 7. Demographic
o Products o Which includes income, age, gender, race, occupation, religion,
o Pricing decisions family size, stage in family life cycle, education, nationality, social
o Promotion's decisions class.
o Place decisions 8. Lifestyle
▪ consider again the 4 P’s of marketing o Achievement oriented, health conscious, sociable, family oriented,
o Marketing objectives innovative, outdoor time, introvert time.
o Product positioning strategies 9. Personality
o Aggressive, dominant, compulsive, authoritarian, agrarian, ambitious,
compliant.
10 Market Segmentations Strategies o For demographic segment ex.
▪ Manila hotel for those affluent market,
▪ Enervon C drops – infant market,
▪ Enervon liquid – children market,
▪ Enervon tablet – adult tablet,
▪ Enervon HP – children and adult.
o For lifestyle segmentation ex.
▪ Alaxan for brand conscious buyers, herbal life, yogurt, for
weight-watchers market.
o Personality ex.
▪ Milo for sports enthusiast market, wine –whisky for heavy drinkers
market.
10. Organization
o Segment market into organization characteristics.
o Ex. Unilab generic that would be pharmaceutical Generics, Mercury
drug that would be chain in store operations, Southstar pharmacy,
Watsons, SM, Puregold - whole sale operation

We have 2 criteria in selecting segments for targeting:

• Opportunities for revenue in marketing to the drug segment based on
different factors like extent of similarity in the needs of customer within a
segment. The existence of unmet needs within the segment or
1. Concentrated • Firms competency to pursue opportunities based on a functioning of its
o Involves targeting one product to one segment tends to appeal to marketing and manufacturing know-how in targeting a particular segment as
smaller firms with limited resources. well as its resources.
o This firms become profitable by gaining a strong market position in
one segment.
NEW MARKET SEGMENTATION
 ANG, TAMAYO, TRISTE, VIÑAS 4

• By geographical location o Product differentiation

• According to age o Purchaser's criteria
• According to sex and status o Copy claim
o Market niching
• According to income o Distinct concept
• By psycho-social-cultural factors
• By degree of specialization & therapeutics categories BATTLE IN CONSUMERS MIND
• According to product formats, size, and supply • Advance engineering
• According to ownership or type of organization o Innovating the product
o (ex. United Generic, McDonalds, Jollibee) • best products in the market
• According to types of business or classification • Economy
• Superior performance
7 ADVANTAGES OF MARKET SEGMENTATION STRATEGIES o Of the company or product
1. Greater profitability in satisfying diverse demands of the • Top of the line
marketplace o Is it the number one product?
2. Increase sales by addressing the needs of target customers • Technology advantage
3. Helps business identify new opportunities • Best service
4. Helps firms develop new products to meet the needs of • Best profit
particular target markets
5. Assists markets in developing strategies for brands BRAND AWARENESS LEVEL
6. Useful in providing guidelines for product positioning in • We have a lot of brands available in the market, either Biogesic, Pyregesic,
Tylenol, Tempra, Rexidol, and Afebrin. Because of a lot of brands available
advertising to reach target market in the market, ofcourse, you must be aware kung brand-aware ka, therefore,
7. Focuses on consumer needs to maintain competitive you have the, shall I say, basis or guidelines of buying or purchasing to that
advantage specific paracetamol.

3 APPROACHES TO TARGET MARKETING DRUGSTORE WAR IN CONSUMER’S MIND

• So example, another one would be drugstore war in consumer’s mind. What
• The single market approach will be you preferred pharmaceutical outlet? Is it the Mercury, South Star,
o Ex. Only catering one type of customer - producing specific product Watson, Generic’s Pharmacy, or Med Express?
only for this specific single market.
• The multiple target market approach PURCHASING CRITERIA
o Ex. One product and you will be catering multiple market. Ex. Coca
cola children and adult, male and female can drink this. • Next, of course, how about, example, toothpaste. So marami po tayo niyan.
Family toothpaste, Hapee, Gleam, Pepsodent, Colgate, Close Up, or Crest.
• The combined market approach Though, your product available in the market, they have similar benefits.
o One or more product that are being produced by a company and this Example, double fluoride, maximum cavity protection, freshens mint, anti-
product will be catering different or combination of different market germicidal, etc. So, you have your criteria in choosing what is the specific
approach) brand available in the market.

CURRENT TARGET MARKETS Positioning Strategies

You should maintain these customers or you can add:
• Current loyal customers
• Current authority endorsers
• Current influencers
• Current terminal decision-makers
• Current consumers

MARKETING POSITIONING

Market Positioning
• It is the place the product occupies in consumers’ minds
relative to competitors.
o Means creating a competitive edge
o Is “market-niching”
o Is the “unique selling proposition”
o Is the battle in consumers mins
o Is target marketing
o Refers to the “attributes”, “characteristics”, or • One specific product attribute
“purchaser criteria” o On one specific product attribute, class, example again is Revicon
forte tablet, you have there, 21 multivitamins and minerals
preparations for reserved energy.
PRODUCT POSITIONING IN CONSUMERS MIND • On the needs they fill or benefits they offer
• Competition - “copy-cats”, “imitation”, “look alike”, “me- o Example for this is Alaxan tablet. This is your muscle relaxant for
too” body pain, and then Enervon HP powder, example, as body resistance
builders.
• Product Positioning
o Unique selling proposition • According to usage occasion
 ANG, TAMAYO, TRISTE, VIÑAS 5

o So this will be, example, Neozep tablet. Can be taken as the onset of • Represent action guides, the “Magic number” that will show
colds for stuffy or runny nose and for cold specialists.
probable results of various sales and marketing plans and
• Certain classes or users programs.
o Example is your Nutroplex syrup for growing children who want to
grow tall, healthy, and strong. • Means predicting future market levels
o Another example again will be your J&J baby shampoo. This will be • The act or process of predicting, on the basis of
for adults, of course this will be to wash their hair more often and
need a gentle shampoo so it is positioned as “makes your hair soft present trends, of probable conditions or events to come, as
and gentle like a baby”. forthcoming business activity.
• Directly against competitor
o Example is Biogesic against leading analgesic. They position their 3 DIMENSIONS OF FORECASTING
product as world’s safest pain reliever. 1. Time
o And then Cetrin drinks fortified with vitamin C, better than ordinary
juice drinks. 2. Direction
• Different product class 3. Magnitude
o If you say for different product class, example is Aspirin United Home
products. For those with heart ailments, fever, and headaches. Another 4 PURPOSES OF SALES FORECASTING
example is Myracof tablet, the effect and convenient cough tablet 1. The basis of a well-balanced budgeting for a given period
against cough syrups that are messy and inconvenient.
2. Scheduling of all production resources and facilities
• Combination of positioning strategies.
o Again, Cetrin drinks, example, for all age groups, for body 3. To plan current policy and assess current developments
resistance, or this is a family juice drink. 4. To firm up marketing plans
• Product class and situations.
o Aspirin, to keep flowers and vases last longer(?), or UL penicillin G SEQUENCE OF STEPS IN FORECASTING
tablet for respiratory infection and open wounds.
1. Determine primary purpose of forecasting
So those are the positioning strategies, so that this product is to be registered in 2. Group related products
target consumer’s mind. 3. Identify factors affecting the sales
4. Choose the forecasting methods
Ways of Gaining Competitive Advantage 5. Gather available marketing data
• Best technology 6. Validate all assumption and hypothesis
o Technology example is your United Laboratories, the largest 7. Come out with specific forecast by product area
pharmaceutical firm in the Philippines ensures the availability of high- 8. Apply to company’s sales and marketing operation
quality medicines anytime and all the time through state-of-the-art
technology, equipment and facilities and cGMP or QC standards 9. Raise forecast periodically
comparable to international standards, bioavailability, and
bioequivalence tests. SALES FORECASTING TECHNIQUES
• Continuous Innovations 1. The data question
• High Quality Products 2. The special forecast committee
o Next will be your quality products. So high quality products, example, 3. The management estimate
yung mga iPhone. These are priced higher than other competitors of
cellphones. Their top-of-the-line products’ features are highly or have 4. The panel method
a high degree of sophistication or ease or convenience and have a 5. The experts’ opinions
slim probability of cloning or getting a virus. Their unique selling
proposition is high quality features rather than the price. So yung mga
6. The market research method
Samsung, etc, these are cellphones that attract buyers for reasons of 7. The buyer survey method
economy. 8. The cycle and the seasonal analysis
• Continuous Modifications 9. The Random factor analysis
• Cost/Price/Best Profit 10. Ask the veteran techniques
o Example is Philippine Airlines. Directly competes with the market
leader with the other airlines like Cebu Pacific in terms of travel costs,
for example, their plane fares are lower or vice versa. They serve all Forecasting Objectives
out meals, offer incentives, and other amenities to frequent fliers.
Their dominant talking point in savings in total costs of plane fares,
compared to other airlines. What do I mean here? The market leader
and the other airlines inevitably reduce their plane fares to be
competitive in the industry. So same thing with the pharmaceutical
industry, they try their best to reduce their price of their products so
that there will be healthy competition, compared to their competitors.
• Being First In Introductions
• Best Service
o Next is best service. St. Luke’s, for example, stresses its superb value,
service. UST stresses its superb value, service – specifically the needs
and the wants of its valued clients or patients. The establishment offers
patient care availability at all times, highly trained consultants in
various fields of medicines, and related sciences, modern equipment,
facilities that are world-class. The marketing department ensures that
the total customer satisfaction of patients.
• 1% Better than Competition
• Short-term Forecast
o What will be the purpose of this? The objectives, if we are going to
MARKET FORECASTING predict specifically your sales or how to increase your customers, you
have to do different types of forecasting, specifically those products
Forecasting that are short run/short-term, mga seasonal products. Therefore, it is
 ANG, TAMAYO, TRISTE, VIÑAS 6

very important for you to determine the macro-economic factor and 1. Availability of data
micro economic factors and other factors that will affect your
forecasting strategies. 2. Structure of the market
• Long-term Forecast 3. Other non-economic forces
o Or you can do long-term forecasting. For example, the long-term 4. Various Demand Elasticities
plan or long run products like products that will last long. Like Coca
Cola. It is already available in the market up to now for how many
years.
2 Methods of Forecasting Demand
• Budget Forecast TOP-DOWN APPROACH BOTTOM APPROACH
o Consider your expenses, specifically, your research and development Forecast of economic Generate estimates of future
of your products, specifically if you are going to innovate your conditions demand in market segments
products, develop your product, etc. Consider all these factors.
Product market potential
Determine market share Adds the individual
Relevant Factors to the Business Prospects of an Individual
Forecast product sales estimates to arrive at overall
Firm
forecast

TOP-DOWN APPROACH
• Forecast of economic conditions
o Ibig sabihin, you’re going to forecast economic conditions from the
very start of doing business.
• Product market potential
o What will be you present market? Are there still markets to be
considered?
• Determine your market share
o You should know the total market share. Specifically, if you belong to
a drugstore, what will be the market share out of 100%? For
example, is you market share 5%? If you belong to a drugstore, iba
ang market share of a pharmaceutical industry. Determine all of
those.
• Interest Rates • Forecast product Sales
o Specifically, during inflation o How much you want, for example, this month or next month or next
• Total Industry Demand Expansion year.
• Money Supply
o Kung saan manggagaling mga resources natin BOTTOM APPROACH
• Probably Tax Policies • Generate estimates of future demand on the market
o Specifically, the rules and regulations of that specific government or segments
territorial location o You should know your market segment at present, and then in the
• Consumer Price Index future you are going to estimate if you are going to cater or include
• Export Vs. Import another market.
• Add the individual estimates to arrive at overall forecast.
o In the future, are you going to cater to different market segments? At
Industry Analysis in Forecasting present, example, you are catering for babies/infant/children. Do
you have a plan in the future to cater adults/elderly/other market
segments? Another example, you are catering to the female group
market. Do you have a plan in the future? Estimate what will be your
market in the future. Are you going to include the male market
because you are now catering at present, the female market?

Economic Factors Influencing Demand for the Product

Again, you will be using the SWOT analysis. What will be the outlook of your
business? Specifically:
• Substitute Product
o If there will be presence of a substitute product or alternative product
• Total Industry Demand Expansion
o Total outlook or demand or opportunities, or if there are opportunities
for expansion for your company
• New Firms during Forecast Period
o Another new competitor
• Extent of Competition
o Competitor at present These are the three indicators. We have:

4 FACTORS THAT SHAPE A FORECAST POPULATION TRENDS

 ANG, TAMAYO, TRISTE, VIÑAS 7

• Birth date • This will be your marketing activities

• Distribution specifically to the different channels or markets that you have
• Death rate
o Dumadami ba ang population natin? Nagiincrease ba ang customer? • Establishment of channels, selections, physical distribution,
• Change in marital status inventory management, warehousing, transportation,
• Age pattern allocation of goods and wholesaling
• Migration movement
o Example, pumupunta or balak niyong mag-migrate sa ibang place. PROMOTION PLANNING
Maybe because the economy of that region ay gumaganda or • Combination of advertising, publicity personal selling, and
maganda yung lugar na yon. So, you have plan to migrate in that sales promotion to drive sales revenue
specific area.

CONSTRUCTION TRENDS MARKETING MIX

• Mushrooming of private/government building • The set of controllable marketing variables that the firm
blends to produce the response it wants in the target market
• Increase Infrastructure projects • Practically, everything that we do in business or marketing as individuals or
o Gumaganda na yung infrastructure natin, gumaganda po ang mga groups or as a firm to introduce or influence the demand for our drug
daanan po nantin, and then it will facilitate distribution of products – products and services revolves around around the four groups of variables
mabilis na po hindi na traffic, etc. popularly known as the 4P's of Marketing (Product, Price, Promotion, and
Place), the fifth P will be the People.
FOREIGN TRADE DEVELOPMENTS
• Intense import and export 5P'S OF MARKETING
o If you are not contented distributing your product locally, you can
consider the foreign market.
PRODUCT
THE MARKETING MIX: THE 5P’S OF MARKETING • Physical objects
• It is the set of controllable marketing variables. • Persons
• These will be your product, price, promotion, and place. We have only 4P’s • Places
but I placed there the other one, which we will be discussing.
• The fifth P is people or customer, kasi palagi kong sinasabi:
• Services
• Ideas
Without people, without customers, business will not exist. • Organizations
Key Marketing Activities • Activities
• Information
• Product stands for good and services or combination of the company offers
to the target market
o Example: Revicon forte - a tablet, a nutritional supplement, a product
for the active people who are always on the go all day; contains 21
vitamins and minerals for reserved energy
• Product is anything that can be offered for sale or marketed for attention,
use, and consumption or acquisition by individuals or groups for the purpose
of obtaining the value or benefits to satisfy and delight needs and wants of
target customers in pharmaceutical arena

PRICE
• Trusts
• Securities
• Fares/Rents
CONSUMER ANALYSIS • Quotations
• Examination and evaluation of consumer characteristics, • Fees/Bonds
needs, and purchase processes
• Costs
• Bids
PRODUCT PLANNING
• Development and maintenance of products, products • Charges
• Price stands for the amount of money that customers have to pay to obtain
assortment, brands, packaging, options, deletion of old the product, thus the retail prices of the following ampicillin capsules, for
products example, 500 mg, to be sold in a chain drugstore like Mercury is Php 7.00,
Penbritin is Php 10.75, Pentrexyl is Php 11.00. Those are examples of
pricing.
PRICE PLANNING
• Outline price ranges and levels, pricing techniques, PROMOTION
purchase terms, price adjustments
• Publicity
• Use of price as an active or passive factor
• Billboards
PROMOTION PLANNING • Trimedia Advertising
• Development and maintenance of products, product • Sampling
assortment, brands, packaging, options • Personal Selling
• Deletion of old products • Merchandising
• Public Relation
DISTRIBUTION PLANNING • Product Display
 ANG, TAMAYO, TRISTE, VIÑAS 8

• A piece of marketing mix that stands for activities that communicate the merits
of the product and persuade target customers to buy it, thus many drug
companies spend millions of pesos each year to tell end-users about their drug
products, their company, and their product lines
• Medical representatives or professional sales representatives promote
respectively drug product to physicians, dentists, and allied professionals by
way of giving samples or physician's samples, detailing products during
symposia, scientific fora, and seminars or the like
• The sales men, in addition to their sales and collection functions, conducts
merchandising, product displays, and store promotions for the company
products in assigned sales outlets

PLACE
• Right condition
• Right time
• Right customers
• Right place
• Right cost
• Transportation
• Right Quantity
• Inventory Warehousing
• Place means you're going to distribute your product at the right condition,
right time, right customers, right place, right cost, right transportation, any
time and all the time
• Place stands for company activities that make the product available and
visible to target consumers
• Inventory warehousing, transportation, utilization, and
communication are essential elements of place

PEOPLE
• The heart of products of any firm, institution or organization
• The heart of a product
• The heart of marketing mix
• The heart of all major undertakings
• The key factor to the company's success
• The human asset as the greatest asset
• The essential ingredient in the marketing menu

END