The trajectory of pharmaceutical marketing has evolved significantly over the past three decades, marked by several distinct phases. This evolution reflects the industry’s adaptation to changing market dynamics, regulatory landscapes, and competitive pressures.
1. Mastery of Product Knowledge
In the early eighties, multinational corporations held a significant edge over domestic competitors due to their superior product knowledge. These companies invested heavily in research and development, resulting in a deeper understanding of their products mechanisms, benefits, and applications. This expertise allowed them to effectively communicate the value of their products to healthcare professionals and gain their trust.
2. Trade Offer Era
Following this period, the industry experienced a surge in brand substitution at the pharmacy level, driven by domestic competitors. Organizations leveraged lucrative bonus offers to entice chemists into substituting multinational brands with their own. This strategy focused on immediate financial incentives rather than long-term value creation, leading to a highly competitive and transactional market environment.
3. Price War Phase
The industry then entered a phase characterized by aggressive price wars. Companies reduced the prices of prescription medicines, sometimes even advertising these changes in lay media. While this strategy aimed to increase market share, it often resulted in reduced profitability and diminished perceived value of pharmaceutical products. Regulatory interventions eventually curbed these practices, restoring some level of price stability.
4. First Mover Advantage
With the expiration of product patents, many local companies capitalized on the opportunity to launch branded generics. These companies leveraged the brand equity of innovator brands while adopting a strategic first mover low pricing approach. This phase highlighted the importance of timing and market positioning in gaining competitive advantage.
5. Gratification Strategy
The gratification strategy era saw companies resorting to unethical practices to influence prescription behaviors. This included offering incentives to healthcare professionals. Increased regulatory scrutiny and stricter enforcement measures have since curtailed such practices, promoting a more ethical marketing environment.
6. Professional Marketing Excellence
As the pharmaceutical industry continues to evolve, there is a growing emphasis on professional marketing. The evolving marketing dynamics is forcing organisations to move from Business driven Business to Product driven Business
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