The very word pharmaceutical company means nothing more than developing and distributing drugs for consumption by patients. This job is mainly done through the help of well established research institutions that help in innovations. Now, it is for sure that the fundamental understanding of drug manufacturing has changed a lot now from what it was in the previous century. Internet has also become a medium where drugs are marketed and distributed. The concept of online shop has become very popular in the last few years.
Information technology has further helped the pharmaceuticals and patients to get data about the diseases and drugs repectively(Armstrong G. & Kotler P. 2007). Target market The company main aim is to respond quickly and deliver quality drugs for local and international markets who are looking for drugs that cures. The company introduces their new products and services by targeting all people who suffer severe anemia and willing to reduces its impact.
The drug that are offered by the company meets the patients’ needs by reducing the impacts of severe anemia, being delivered by the best pharmaceutical company in the world using the current modern technology innovations. The pharmaceutical company is working in collaboration with other international research
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The specific target markets initially is USA and her environment however due to internationalization and globalization the pharmaceutical company will evolved to include all continents and targeting all patients with severe anemia from other parts of the world with enough income to meet fee charged by the pharmaceutical company. Pharmaceutical company main aim is to respond quickly and deliver drugs to severe anemia patients and make anemia patients feel better and have hope.
Pharmaceutical company introduces a drug and methods of managing anemia thus improving the lives. (Winer, R. S. , 2007). Competition There are a number of well-known Pharmaceuticals in the USA. This pharmaceutical company finding itself pitched against competition at home, it is but natural for them to seek greener pastures elsewhere in the world (Winer, R. S. 2007). Other competitors who are in the USA include importers who offer a challenge to the home country pharmaceuticals in the market.
What they are trying to do in this is to enlarge their market into parts of the world (Armstrong G. & Kotler P. 2007). Current product development To begin with, pharmaceutical company is a success because various product development marketing communication mix elements used to push it through the market. Some of the major modes of communication that he used were advertising, sales promotion, public relation and personal selling.
Their products are well developed with all the characteristics of a good product, good branding and presenting. However, as marketers realized, just having a good product is not all because good marketing strategies have to be employed to ensure that the product beats competitor products in the market. Currently new product that satisfied the profitability requirements of the Pharmaceutical company is developed into a concrete prototype and in due course into a technically suitable and commercially acceptable drug.
This step in product development is extremely important especially because: it is the first effort to develop the product into a concrete physical object; this step requires relatively large amounts of money- much time and money is needed for the eventual development of a technically effective product; and with this step it can be determined whether the product concept can indeed be developed into a technically effective and need-satisfying product (Armstrong G. & Kotler P. , 2007).
Firstly, the technical research engineering and technical testing attached to establishing experimental models and the final product must be handles. Many variations of the product are often developed before the most suitable alternative is found. Secondly, consumer preference texting must take place and this issue is very closely related to the prototype development and the main objective is to determine which experimental model complies best with the requirements that consumers set for the product (Schaik J.
L. , 2002). In the third place, decisions must be made on the packaging of the new product. The objectives of effective presenting are to project the product physically to ensure convenient handling, to accomplish economic use and to help with the promotion of the product in the marketing situation. Brand must also be selected for the new product and the brand forms part of the product image and normally serves as a symbol and strengthener of the product concept (Schaik J. L. , 2002).
Test marketing is another step in taken by Pharmaceutical company and now for the first time, the entire product development and its marketing strategy are subjected under normal conditions to a relatively small number of well-chosen marketing situations. In test marketing pharmaceutical company considers whether to test marketing or not. This decision is mainly determined by the nature and extent of the risks and the size of investment involved in the manufacturing and marketing of the new product.
The commercialization process is undertaken by the marketing and promotional committee in conjunction with all the other committees and the faculty. Basically after the validation event, course code is assigned and then the promotional activities begin. The course is made available to the public through prospectus and other mediums like billboard and posters. Marketing objectives are made clear and the objectives of test marketing made in line.
Test marketing is normally done to gain more and better knowledge of expected sales; to test alternative marketing strategies, to locate possible product defects which slipped through during physical development; and to get a better idea of the reaction of the different market segments (Schaik J. L. , 2002). Innovation and brand diversification is the key to beating product challenges and once pharmaceutical company identified its major challenges it had to ascertain its characteristics and specify strategic, objectives look at its strengths and weaknesses, reaction patterns and ways to react to these challenges to overcome them.
To do this the pioneer of Pharmaceutical Company decided to take the bull by the horns. They have monitored the competitor’s expansion plans, size and other factors and decided to plan and game plan to counter the challenges. Pharmaceutical company continued to defend their market share by continuously expanding their total market size and defended their product against rival attacks (Armstrong G. & Kotler P. 2007). In launching new products, it is also necessary to take notice of the process through which potential customers become aware of new products, buy and try them for the first time and eventually accept or reject them.
This adoption process of new products is basic to the entire course of the product life-cycle and marketing management this be very well acquainted with it if they want to manage the life-cycle effectively (Schaik J. L. , 2002). The adoption by patients In the adoption of new drug, the potential consumer is made aware of the product. If patients hear about the new product but have no information about it, then he becomes aware and he creates Interest. The customer starts to seek information about the product and evaluates it. In the evaluation the patient the information and considers the utilities of the product then the product is adopted.
The adoption involves the use purchase proves to be successful the consumer decides to use the product regularly (Schaik J. L. , 2002). Only a few people are the innovators and the number of adopter’s increases rapidly as the benefit of the new product becomes known. The possibility of identifying the innovators is an extremely tempting idea for the marketer. Since the innovators are normally the opinion leaders from whom other potential consumers seek advice, their attitudes towards new products are often spread rapidly by means of word-of-mouth advertising (Schaik J.
L. , 2002). Product development objectives The main product development objective for the pharmaceutical company is to ensure the right product reaches the market at the right price, place and time. Another objective for product development by pharmaceutical company is to ensure the patients are satisfied with our drugs and will continue patronizing our pharmaceutical company and become the best drug in the world for severe anemia case. Pharmaceutical company shall be able to increase and maintain this market share by increasing product differentiation.
We shall also understand the customers’ needs and be able to satisfy them by preventing cheap and quality market (Winer, R. S. , 2007). Strategic product development at Pharmaceutical company The strategic product development can be stated to be the direction for a business to reach the targets set for that particular business for the next years. The strategic product development puts continuous emphasis to the on going changes in and around the core product and their potential effects on the future development of the business. Strategic product development mainly looks after the long term success of the organization.
A strategically made product development helps making the proper investments in proper product for successful business expansion and also helps facing the competition developing in any market by focusing on the customers’ needs and the supply and demand issues. The major steps involved in developing a strategic product development include the identification of the time to make such plan. A strategic product development can be developed anytime when the business expects any kind of restructuring or expansion and the future of the business comes to any questionable position.
The strategic product development also helps in analyzing the past and current operations of the business running successfully to determine the future improvements. The strategic product development is helpful to protect business from running into the phase of crisis from a successful state. After deciding the need for developing strategic product development the organization needs to analyze the situation outside the organization, i. e. , the background information of the business focusing on the market situation, available resources, management system and the existing centers of profit.
Marketing Strategies Therefore, in order for the drug to attract and maintain it’s customers, the Four Ps rule should be considerable looked into. These are items that either attract or discourage a consumer from buying certain goods and services. This is broadly known as the Marketing Mix. This is inclusive of the products/goods being sold, price of the commodity, promotion activities and place where buying and selling is to take place. Product Strategies:- According to Philip Kotler (2003), Product is the solution to customers’ wants or needs.
It refers to the characteristics of a product, service or brand. The Internet offers options for varying the core product, options for offering digital products, options for changing the extended products, conducting research online, velocity of new product development and velocity of new product diffusion (Chaffey et al. 2008, 281-286). For other products, instead of providing actual products to customers, many companies published the detailed product information with pictures or images. Thanks to this, consumers still have concepts about different kinds of product even when staying at home.
However, the product dimension may also face a challenge from a decreasing product-life span, due to rapid innovation process in technology. As technology evolves, product changes and adaptation may have to be executed with an increased momentum through which companies can encounter problems because of their dexterousness of applying innovative technologies to their business operations. Given the industry analysis, the company can implement three product strategies and these are: ? Differentiate the products by highlighting quality, reliability, durability, and ease of use as product features;
? Package the products in stylish designs in a variety of pleasant, eye-catching colors; ? Attach unbeatable warranties on the products Place Strategies:- This factor deals with how goods and services exchange hands. Factors attributed to the settings of where goods are going to reach the customers include geographical positioning of the customers, the age group, and the social class of the anticipated customers among others. Mainly, it deals with the selling process and how various factors affect it. Therefore, the Company should put into consideration all these factors so as to reach each and every person who is in need of their products.
In terms of distribution strategies, the following are the key initiatives: ? Secure lease space in high traffic, accessible retail outlets in department stores and malls; ? Distribute drugs to well-known specialty retail stores that focus primarily on consumer goods and small appliances; ? Support distribution locations with adequate, attractive, and highly visible marketing collaterals, signage, and product catalogs Pricing Strategies: The price of a given good should put in mind other factors that affect the market situation.
Due to competition, discounts can be adopted so as to attract more customers and maintaining the already existing customers. Again, the price put to place does not necessarily be in terms of money but it can also be in exchange of things like duration, amount of commitment or efforts utilized among others. The main pricing strategies are as follows: ? Pursue an “value for money” low cost strategy to gain rapid sales and market share; ? Provide discounts to volume purchases; ? Offer flexible, payment terms especially for price sensitive buyers
Promotions Strategies: – This puts into consideration activities directed towards making know a given company in the market or elevating the image of a certain company. A lot of emphasis should be put in place in this area because it is the backbone of marketing techniques. This should start from how the product is packaged to how the goods and service are delivered. Instruments like advertising, branding, promotion of sales, and direct delivery of goods to customer. For instance, branding is a process which is directed towards giving a special identity to a company. This is best on the activities the company is venturing in.
It reflects the culture adopted by a given company. The brand goes beyond a name and logo of a certain entity. For company to be known effectively in the market, it should embrace a brand that wholesomely defines its quality of products and services. This in the long run will positively affect its sales (Ries and Jack, 2000). The key promotions strategies are the following: ? Utilize various traditional media and new media channels to advertise the company’s products. Traditional media promotions include TV plugs, radio announcements; print advertising, while new media promotions include Web-marketing (i.
e. Internet marketing) and cell phone text marketing; ? Provide sustained marketing materials in designated store locations, booths, and lease spaces (i. e. flyers, brochures, catalogs, signage, etc. ); ? Harness well-trained, highly articulate sales representatives to demonstrate and explain the company’s product features to customers in malls, specialty appliance stores and other retail outlets It should be clear that depending on the kind of product and the target market segment the emphasis of specific instruments and elements in the marketing mix may vary.
The right choice emphasis and integration into a totally need satisfying market unique. The creation of a specific marketing mix into its four instrument mixes namely the product mix, secondly the formulation of each of the various elements for a specific marketing mix and thus a specific marketing strategy. From the afore going two basic principles emerge, namely that seen from the viewpoint marketing mixes and that seen from the viewpoint of the consumer different marketing mixes. These two viewpoints do no occur in isolation, but strongly affect each other. The Role of Sales Promotion in the Marketing Mix
Sale promotion involves of the use of incentives to complete the push-pull promotional strategy of motivating the sales force. The company will engage the use of:- Price-off offers: – This will especially used in the product introductory phase, so as to attract the customer. Quantity-off offers: – This will be used for parents who are purchasing more than two dolls. This is the offering more quantity of the same product at no extra cost. Use of coupons: – This will be used after 3months of the product introduction to the market. The customer will be entitled to redeem a specific standard certificate for the doll free or in part payments.
This will encourage purchase of the dolls, build loyalty. Discounts: – This will push for more sales to trade, especially when the dolls sales, start to decline especially in the months e. g. February, March etc. Point of purchase (pop):- The company will use special display racks, banners, exhibits that will be placed in the retail store to support the sale of the brand, so as to attract the traffic of young girls at the retail store, remind the customers, encourage impulse buying and ensure additional visibility to the advertising campaign(Kotler P.
1989).. Cultural/social/ geographical/political analysis of foreign country The cultures of people in different countries can affect the marketing strategies that a company will use as it enters new international markets. The company has to consider vary many factors of the new international, market place, some of these are political factors, social factors, economic and technological factors. Looking at the social cultural factors ethnocentricity is a major factor especially if the new marketplace is in a country with diverse cultures.
This is a major challenge because most of these people hold so much to these cultures that it is very difficult to make them adopt your product and your marketing strategies. Conclusion In conclusion,. Measures like advertising, branding, customer focus, product focus, and sales promotion among others are positive towards improving the participation of the company in the market (Thomson and Rampton, 2006). Before these approaches are implemented, a market survey has to be carried out to establish what the need of the customer is. Then implementation of the new acquired practices should be put into place.
This marketing process can only end well if the team of professionals is in leadership of the marketing department. REFERENCES Armstrong G. & Kotler P. (2007). Consumer Markets: Influences on consumer behavior, Principles of Marketing. Chisnall, P. (2001) Marketing Research. 6th ed. , London. McGraw Hill Cooper, R. G. (2001) Winning at New Products – Accelerating the Process from Idea to Launch, Third Edition, Product Development Institute, 2001. Crawford, M. (1977) Marketing research and the new product failure rate, Journal of Marketing, vol 41, April 1977, pp 51-61. Crawford C. M. and Benedetti A.
(2000) new product development. 6th edition International edition. mcgrill-hill . Johnson G, Scholes K and Whittington R. (2006); Exploring Corporate Strategy, 2006, Prentiance, Hall, 7 th Enhanced Media Edition, Ries, A. and Jack, T. (2000): Positioning- The Battle for Your Mind- 20th Anniversary Edition: McGraw-Hill Schaik J. L. , (2002); The Task of Marketing Management; J. L. van Schaik (Pity) ltd Thomson, C. and Rampton, L. (2006): Putting Your Customers First, Market Research. Melbourne press, New York Winer, R. S. (2007); Marketing Management, Prentice Hall, Upper Saddle River, NJ.