Pharmaceutical VS.
Consumer 1
Markets
Suppose you were a successful
consumer goods marketer that, after
a proven track record, was hired by a
pharmaceutical multinational to
market its new line of antibiotic
products.
2
Withthe didactic content of your
MBA studies fresh in your mind and
the successes of your marketing
career fresh in your heart, you would
go about creating new product
development plans, advertising
campaigns, and unique selling
points.
3
Clearly,
however, after talking to
prescribers, regulators, and your own
medical sales representatives, you
would discover that pharmaceutical
markets bear distinct differences
from your prior battlefields.
4
Peculiarly enough, the patient
consuming your product is neither
the decision maker, nor the buyer.
Additionally, ethical, regulatory, and
liability considerations would be
much higher in the case of antibiotics
than electric home appliances.
5
And finally, brand loyalty and price
sensitivity would be less of a problem
than the fierce competition seen in
the computer or travel industries. An
overview of the main differences
between consumer and
pharmaceutical markets is presented
in Table 1.2.
Table 1.2 Comparison of Pharmaceutical to 6
Consumer Markets
Pharmaceutica Consumer
l
The consumer is the decision maker Not true True
The consumer is directly targeted Not true True
Product brand loyalty Higher Lower
Importance of ethics Higher Lower
Degree of government regulation Higher Lower
Liability considerations Higher Lower
R&D complexity Higher Lower
R&D on humans necessary Yes No
R&D costs Higher Lower
Promotion can be done on social media False True
7
What, then, are some of the
particular aspects of pharmaceutical
marketing? They are:
(a) more stringent regulation of the
industry as opposed to consumer
markets-- a level of regulation
matched by very few other sectors
(for example, airline travel);
8
(b) the necessity for huge R&D
investments, often surpassing 20
percent of annual revenues;
(c) the sensitive issue of patient
rights; and
(d) a variety of other ethical issues,
such as animal welfare and
environmental protection.
