Strategic Pharmaceutical Marketing Management in Growth Markets [1 ed.] 9781032289427, 9781032321646, 9781003313168

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STRATEGIC PHARMACEUTICAL MARKETING MANAGEMENT IN GROWTH MARKETS

India is the largest provider of generic drugs globally. The Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines and, as a result, holds an important position in the global pharmaceutical sector. This book is a comprehensive study of pharmaceutical marketing management in the Indian context and similar growth markets. The book introduces the fast-paced and multi-faceted discipline of pharmaceutical marketing management through an in-depth discussion on the genesis and evolution of its marketing concept. Combining theory and practice, it ofers a strategic approach to pharmaceutical marketing from an organizational and business perspective and explicates the practical applications of it. Richly supported by case studies, the book brings together fresh perspectives and approaches equally useful for students and professionals. This book will be of interest to academicians, advanced students, and practitioners of pharmaceutical marketing and pharmaceutical management. It will also be benefcial to those interested in business strategy, decision-making, and international marketing. Mithun Nandy holds a PhD in Management from Vidyasagar University, India. His doctoral thesis was awarded the “Best Doctoral Thesis Award” at an international management conference. He serves as Editor (Management) for Cogent Business and Management journal and Editorial Review Board Member in International Journal of Patient-Centered Healthcare. Currently, he is the Assistant General Sales Manager at Hegde & Hegde Pharmaceutica LLP, Mumbai, India, where he has over 18 years of pharmaceutical sales experience. He is a life member of the Calcutta Management Association.

STRATEGIC PHARMACEUTICAL MARKETING MANAGEMENT IN GROWTH MARKETS

Mithun Nandy

First published 2023 by Routledge 4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 605 Third Avenue, New York, NY 10158 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2023 Mithun Nandy The right of Mithun Nandy to be identifed as author of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identifcation and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record has been requested for this book ISBN: 978-1-032-28942-7 (hbk) ISBN: 978-1-032-32164-6 (pbk) ISBN: 978-1-003-31316-8 (ebk) DOI: 10.4324/9781003313168 Typeset in Bembo by Deanta Global Publishing Services, Chennai, India

I dedicate this book to my Maa (Mother) Smt Ila Nandy and Baba (Father) Shri Swapan Kumar Nandy, who have sacrifced their entire lives for my upbringing. As a result of their sacrifces, I have been able to pursue my corporate career goals while simultaneously producing highquality and impactful research works and contributing to society.

CONTENTS

List of illustrations Preface Acknowledgements Author’s Note 1 Introduction to Pharmaceutical Marketing Management 2 Dynamics of Pharmaceutical Marketing

viii xii xvii xx 1 48

3 Strategic Advantages in Pharmaceutical Marketing

104

4 Important Aspects of Pharmaceutical Pricing

141

5 Distribution Function in Pharmaceutical Marketing

156

6 Pharmaceutical Product Promotion

182

7 Marketing Research Interface in Pharmaceutical Product Promotion

217

8 Technological Aspects in International Pharmaceutical Marketing

227

Index

259

ILLUSTRATIONS

Figures

1.1 Country-wise market share for pharmaceuticals 1.2 Global pharmaceutical market (GPM) for the period of 2001–2020 2.1 Structure of global pharmaceutical industry (GPI) 2.2 Evolution of the Indian pharmaceutical industry 2.3 Factors afect physicians prescribing (Rx) pattern 2.4 Framework for patient motivation (FPM) 2.5 Pharmaceutical segmentation, targeting, and positioning framework (PSTPF) 2.6 Pharmaceutical brand elements framework (PBEF) 2.7 Training of medical representatives framework (TMRF) 2.8 Performance evaluation of medical representatives framework (PEMRF) 2.9 Sales force efectiveness metrics framework (SFEMF) 2.10 CRM in international pharmaceutical industry framework (CRMIPIF) 3.1 Insights of Pharmaceutical Marketing Framework (IoPMF) 3.2 Product Life Cycle (PLC): IGMD Phases 3.3 Fishbone Diagram 3.4 Root Cause in Fishbone Diagram 3.5 Porter’s fve forces analysis 3.6 Ansof Matrix 3.7 PESTEL Framework

23 24 49 52 74 75 78 81 86 88 92 95 105 111 116 116 120 124 129

illustrations

5.1 Supply chain ecosystem of international pharmaceutical marketing 5.2 Types of channel conficts 5.3 Factory-to-pharmacy (F2P) framework 6.1 Pharmaceutical product management 7.1 Diferent areas of pharmaceutical market research 7.2 Prescription decision of the healthcare providers framework (PDHCPF)

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159 164 176 191 219 223

Images

1.1 1.2

1.3

1.4 and 1.5 1.6 1.7 1.8 1.9 1.10

A chemist is dispensing medicine to a patient outside a medical college in Kolkata City, Country: India Pharmaceutical consignment was booked from Mumbai, India to Port Blair, Andaman & Nicobar Islands, India. The online tracking system of a transporter is connecting all the dots from consignment booking stage to consignment delivery stage The employees of a reputed pharmaceutical company are performing inventory related activities in a clearing and forwarding agent’s (C&F’s) warehouse situated in Dhulagarh (Howrah District) of West Bengal State, Country India Diferent types of packaging techniques used in pharmaceutical marketing The patient had been advised to purchase the medicines as prescribed (Rx) by the healthcare provider (doctor) of Asian region (India) Drug license (DL) copies of an Asian (Indian) stockiest for procuring medicines; manufactured and marketed by diferent pharmaceutical companies Augmentin 625 DUO Tablet 10’S The sales professionals of an Asian (Indian) pharmaceutical company are performing some administrative works at the stockist point Pharmaceutical product detailing of pharmaceutical company’s sales professionals to a healthcare provider (doctor) in Asian region (Kolkata City, Country: India)

5

6

7 8 10 11 14 17

17

x

illustrations

1.11 and 1.12 1.13 1.14 1.15

1.16

Paracetamol Tablets and Oral Suspension marketed by GlaxoSmithKline Pharmaceuticals Limited (GSK) under the brand name of Calpol 650 mg Medical representatives (MRs) in Asian region (Nepal country) are performing some activities in a wholesale’s ofce premise Visual aid of Ketakonazole soap, Brand Name: KZ Soap Torrent Pharma has participated in Dermacon 2020 (National Conference of Indian Association of Dermatologists, Venereologists and Leprologists) and has arranged a panel discussion on the topic entitled “Medico Legal Mistakes by Doctors” during the conference Eminent dermatologist of India Dr Koushik Lahiri is expressing his opinion during the panel discussion

19 20 40

41 41

Tables

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 2.1 2.2 2.3 2.4 2.5 2.6

Authorization Power of Prescription (Rx) Diferences between Marketing and Pharmaceutical Marketing Diference between Pharmaceutical Marketing and Selling Wide Range of Pharmaceutical Professionals Profle of Reputed Global Pharmaceutical Companies by Revenue FY 2020–2021 Pharmaceutical Brands of Hofmann-La Roche Pharmaceutical Brands of Pfzer Pharmaceutical brands of Novartis Pharmaceutical brands of Merck & Co Pharmaceutical brands of AbbVie Diferent Parts of Visual Aid Elements of Global Pharmaceutical Industry (GPI) Profle of Indian Pharmaceutical Companies of Repute Examples of Over-the-Counter (OTC) Drugs Possible Benefts and Possible Risks of Over-theCounter (OTC) Drugs Segmentation, Targeting and Positioning Distinction between Pharmaceutical Branding and Packaging

10 13 14 20 24 26 26 28 29 30 39 50 54 71 71 79 83

illustrations

2.7 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 4.1 8.1

Performance Evaluation of Medical Representatives Product Life Cycle (PLC) Strategy in Pharmaceutical Marketing SWOT Analysis Examples of SWOT Analysis Internal Analysis (IA) and External Analysis (EA) Examples of Porter’s Five Forces Analysis PESTEL Analysis Advantages and Disadvantages of PESTEL Analysis VRIO Model Diferent Pricing Methods and Strategies Most Used Pharmacological Equipment

xi

89 115 118 119 120 121 128 129 133 146 252

PREFACE

|| Strategic Pharmaceutical Marketing Management in Growth Markets || Prelude The greatest danger in times of turbulence is not turbulence itself but rather acting on strategies and logic from yesterday’s time. We are currently experiencing intense competition and an equally uncertain business environment, which require pharmaceutical companies that desire success to identify and explore strategic alternatives as well as align resources and ensure implementation. It’s challenging for pharmaceutical business leaders to balance daily life, internal and external challenges, and everyday demands while understanding what strategic pharmaceutical marketing management entails. Strategic Pharmaceutical Marketing Management in Growth Markets will provide both the pharmaceutical industry and academic fraternities with a standardized, precisely defned idea that can be applied in a measurable way. In this book, structured concepts, methodologies, skills, tools, and techniques are presented, which, when applied efectively and efciently, can ensure that such initiatives achieve the signifcant desired results. The world is experiencing the 4th Industrial Revolution (4IR). Meanwhile, the COVID-19 pandemic has proven to be a critical tipping point for pharmaceutical marketers. As a result of the digital revolution, new pharmaceutical business models have emerged that threaten the well-established strategic business orientations in the pharmaceutical industry. Pharmaceutical companies worldwide have been forced to make signifcant changes along multiple strategic dimensions to survive in the post-Covid world due to the digital disruptions afecting the industry. It is essential for pharmaceutical marketers to succeed in today’s fast-paced, complex world that they understand global strategic trends afecting

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pharmaceutical companies and develop a leadership style that inspires them to take risks, be bold, and lead complex change.

About the Book As a result of reading this book, students will be able to identify marketing as a process, marketing strategies within a pharmaceutical environment in a global context, and advertising and sales promotion strategies related to marketing branded and generic drugs in global markets. Using a direct, straightforward, and reader-friendly approach, the author combines marketing concepts with the unique characteristics of strategic pharmaceutical marketing in growth markets. The book covers a wide range of contemporary topics, providing a global perspective on the pharmaceutical industry. Applications, practice, and hands-on learning are emphasized in this book. Through relevant examples, this book explores one of today’s most dynamic and complex industries. The pharmaceutical industry is characterized by cutting-edge scientifc research, a multitude of stakeholders (from investors to doctors), a complex supply chain, ferce competition in the race to market, and a challenging regulatory environment. Stakes are high when it comes to new products, which can succeed or fail spectacularly. This book covers a wide range of topics such as R&D, promotion, pricing, branding, competitive strategy, and portfolio management, which are multibillion-dollar industries in the United States. In the book, graduates learn about pharmaceutical marketing, sales, and other healthcare-related felds. Pharmaceutical marketing and sales are highly rewarding felds. The marketing of pharmaceuticals is experiencing a dynamism that is changing rapidly, especially in terms of the four P’s of marketing management. Considering current developments in pharmaceutical marketing management, this book has been conceptualized to serve the contemporary needs of students, academicians, and industry professionals. We occasionally see the pharmaceutical industry change its product policies, sometimes its pricing structure, or sometimes its supply chain, in reaction to sudden changes in the market landscape. The pharmaceutical marketing patterns intended for healthcare providers have also been altered by regulations and compliances in growth markets. The book is designed for both industry professionals and aspiring pharmaceutical marketing professionals. In this book, students will learn about modern pharmaceutical management, including marketing, selling, and production skills, as well as the technical aspects of pharmaceutical portfolios.

Chapters The book is divided into eight chapters, each of which contains a thorough literature review, including research from relevant areas related to strategic pharmaceutical marketing in growth markets, a look at what practitioners have done,

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Preface

as well as introductions to relevant analytical tools, such as statistics and ethnographic studies, and recommendations for academics and industry professionals. This comprehensive, state-of-the-art resource will be valuable to researchers, policymakers, and practitioners alike. From the perspectives of strategic contexts in growth markets, the book combines pharmaceutical sciences with management and marketing studies. There are two distinct chapters in this book: Chapter 3“Strategic Advantages in Pharmaceutical Marketing”, discusses different strategies that are used by pharmaceutical marketers in growth markets; how are they applied in the pharmaceutical industry?; and Chapter 7,“Marketing Research Interface in Pharmaceutical Product Promotion”, explains how marketing research interface contributes to product promotion in a global context? In this book, a variety of perspectives are discussed in relation to the current pharmaceutical marketing environment, including those of industry, community pharmacy, institutional pharmacy, and practising pharmacists. The chapters included in the book are listed below. Chapter 1: Pharmaceutical Marketing: Fundamentals & Global Perspectives Chapter 2: Dynamics of Pharmaceutical Marketing in Global Context Chapter 3: Strategic Advantages in Pharmaceutical Marketing Chapter 4: Important Aspects of Pharmaceutical Pricing Chapter 5: Distribution Function in Pharmaceutical Marketing Chapter 6: Pharmaceutical Product Promotion Chapter 7: Marketing Research Interface in Pharmaceutical Product Promotion Chapter 8: Technological Aspects in International Pharmaceutical Marketing

Purpose It is intended to provide academic fraternities and professional practitioners with conceptual insights into emerging strategic paradigms to help students and pharmaceutical marketers succeed in the dynamic world of Industry 4.0 and digital disruption. There have been multiple perspectives presented to provide key insights. Having completed this book, students will be equipped with the strategic mindset that permeates the pharmaceutical marketer’s culture and mission to navigate the post-pandemic global economy. In the pharmaceutical sector, develop winning strategies focused on outpacing competitors in growth markets and leading strategic initiatives. In a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) world, addressing societal needs (ESGs: environmental, social, and governance) while addressing pharmaceutical business challenges in growth markets. The utilization of strategic digital transformation and innovation by pharmaceutical marketers in various business operations within the pharmaceutical industry, along with the rationale for them and the challenges associated with their implementation. Developing a customer-relevant digital transformation strategy and disruptive innovation strategy that leverages data and changes customer expectations is the only way to succeed. Pharmaceutical companies

Preface

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in the growth market will achieve greater agility and execution excellence by aligning Purpose, People, and Strategy. Students of Undergraduate (UG) and Postgraduate (PG) courses such as the following ones will fnd this book useful as a textbook: a) b) c) d) e)

Bachelor’s Degree in Pharmaceutical Management (BBA) Master’s Degree in Pharmaceutical Management (MBA) Bachelor’s Degree in Pharmacy (B.Pharm) Master’s Degree in Pharmacy (M.Pharm) Post-Graduate Diploma in Pharmaceutical Management (PG Diploma)

In this book, the undersigned author developed the content based on the above professional courses using current syllabuses of prestigious universities around the world. Therefore, this book serves as a fundamental subject paper for academic fraternities in the area of pharmaceutical marketing and management. In addition to including all the up-to-date topics, this book will be of considerable value to student fraternities as well since it contains a lot of current information.

Key Features The book is structured in such a way that students are able to learn as efciently as possible about pharmaceutical marketing management. Despite its complexity, it simplifes the subject and makes it understandable for any student. Important theoretical points are briefy discussed in plain language. For students to confrm their mastery of the subject, relevant examples have been provided. The classic and wholesome approach to covering all the important concepts has been explained in a simple and lucid style which facilitates the reader’s understanding of the subject. A number of important features have been incorporated into the book to make it more userfriendly. Highlights of the book include: a) Theoretical diagrams, tables, and fgures are provided. b) Students intending to pursue professional courses like BBA, MBA, B.Pharm, M.Pharm, and PG Diploma in Pharmaceutical Marketing Management will fnd this book helpful as a reference. c) A detailed description of the contents of the book can be found at the beginning of the book. d) In order to explain as simply as possible the abstract ideas and theories of pharmaceutical marketing management which students do not comprehend easily, great eforts have been made to simplify them. e) The content has been organized in such a way that it corresponds to the syllabus/curriculum requirements. f ) Various topics are discussed in an attempt to have a contemporary viewpoint. g) Each chapter includes updated facts, fgures, diagrams, and tables to support the theory and discussion.

xvi Preface

h) i) j) k)

Facts and fgures are presented in a clear, concise, and lucid manner. The subjective content has been developed, refned, and reorganized. The entire book has been read very carefully in order to improve its quality. Each chapter includes examples that illustrate key concepts in a real-life or hypothetical situation. Mithun Nandy

ACKNOWLEDGEMENTS

In the beginning, I would like to express my sincere thanks and gratitude to my PhD. Supervisor, Dr Brajaballav Pal, Associate Professor and Head of the Department, Department of Commerce, Vidyasagar University, Midnapore, India, for his tremendous support and encouragement throughout my doctoral study. In addition, I would like to thank and express my sincere thanks to Dr Debasish Biswas, Assistant Professor, Department of Business Administration, Vidyasagar University, Midnapore, India for providing his continuous encouragement in performing impactful research works. My sincere and heartfelt thanks go to  Dr Tarak Nath Sahu, Associate Professor and Head of the Department, Department of Business Administration, Vidyasagar University for providing his motivational support and encouragement in all my academic eforts. In addition, I would like to express my sincere thanks and would like to convey my deep sense of gratitude to Professor Kamal K. Kar, Department of Mechanical Engineering and Materials Science Programme, Indian Institute of Technology (IIT), Kanpur, who has provided his continuous motivation to travel in the path of innovation and creativity.  I am grateful  to Professor (Dr) P.S. Das, retired professor of Vinod Gupta School of Management (VGSOM), IIT-Kharagpur for providing his blessings and best wishes to me. Furthermore, I wish to express my gratitude to Swami Satyashibananda (Ashu Maharajji), Hon’ble Secretary of Sree Sree Ramkrishna Ashram, Dubrajpur, Birbhum, West Bengal, India, for providing his immense spiritual and emotional support throughout all my academic and research endeavours.  I wish to express my deep respect and gratitude to late Dr B.V. Hegde (Designated Partner-Hon’ble Chairman) and Dr Hemanth Hegde (Designated Partner-Hon’ble Managing Director), Hegde & Hegde Pharmaceutica LLP, Mumbai, India for providing their immense support and encouragement for

xviii Acknowledgements

having excellence in the academics and performing research works in the pharmaceutical sector. I am extremely thankful to my respected mother late Mrs Ila Nandy as well as my father Mr Swapan Kumar Nandy for giving me the inspiration for higher studies. From the bottom of my heart, I would like to thank Anindita Maiti Nandy, MSc in Chemistry and MBA in HRM, whose tremendous sacrifces allowed me to complete this book. I sincerely thank Master Archisman Nandy, my sweet son, for all his help and cooperation during the writing and publishing of my book. Additionally, I would like to thank my mother-in-law Mrs Lakshmi Maiti and father-in-law Mr Bankim Behari Maiti, an alumnus of the Indian Institute of Technology (IIT), Kharagpur, for their constant support and encouragement in my academic and research activities. I am truly grateful for the immense support that I receive from my sister-in-law and brother-in-law in all of my personal and professional pursuits. During my professional journey with Hegde & Hegde Pharmaceutica LLP, Mumbai, India, I was also provided with immense support and encouragement by the entire Hegde & Hegde Pharmaceutica LLP, Mumbai, India family. Throughout the writing of this book, I am deeply indebted to my learned colleagues for providing the necessary stimulus, motivation, and encouragement. The preparation of this book would not have been possible without the writings and works of many individuals. The undersigned author is honoured to refer to and cite their works in the book. It is also my pleasure to acknowledge the contributions of senior academicians who made highly valuable suggestions to enhance the book’s standard. I am grateful for their assistance. I would like to sincerely thank everyone who has helped me in the process of writing and publishing this book. It is my sincere pleasure to extend my warmest regards and thanks to Ms Shoma Choudhury, the Commissioning Manager at Routledge India, Taylor & Francis Group, who put in a lot of efort during the review process, including communicating with the undersigned author and the distinguished reviewers. I would also like to thank Ms Shloka Chauhan, Editorial Assistant, Routledge India, Taylor & Francis Group, Taylor & Francis Books India Pvt. Ltd. to facilitate the administrative process and contract signing. I would also like to thank Mr Robert Langham, Senior Publisher, Taylor & Francis Group, for countersigning the agreement and facilitating all administrative procedures.  The esteemed Management of Informa UK Limited Trading As Taylor & Francis Group has also been of great assistance to me during the publication of this book, and I would like to extend my sincere gratitude and warm regards to them. In my most sincere gratitude, I wish to thank the distinguished and respected reviewers for their insightful comments, suggestions, and recommendations from time to time for enhancing the book.

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xix

The book will certainly be of great beneft to the readers, I hope. Some errors may occur, despite the best eforts. I will, however, be grateful if these errors are brought to my attention so that they can be corrected in subsequent editions. The author will gratefully acknowledge any suggestions for improving the book from the readers.  Mithun Nandy

AUTHOR’S NOTE

The book is intended as an aid to understand the subject matter (Strategic Pharmaceutical Marketing Management in Growth Markets) in Business/Commerce/ Economics/Management area for readers/students/practitioners and is not intended as a substitute for professional medical advice, diagnosis, or treatment.The readers of this book should always seek the advice of a physician or other qualifed healthcare provider (HCP) regarding any medical/health concerns they may have. As always, it is recommended not to disregard or delay seeking professional medical advice because of what they have read in this book. Moreover, this book will not be categorized or claimed as a medical or healthcare-related book under any circumstances. The book entitled Strategic Pharmaceutical Marketing Management in Growth Markets has been written and categorized under Business/Commerce/Economics/ Management subject area. Mithun Nandy

1 INTRODUCTION TO PHARMACEUTICAL MARKETING MANAGEMENT

1.1 Brief History of Pharmaceutical Marketing It is often said that leading drug companies now spend more on marketing than on research and development (R&D). While such contemporary pharmaceutical marketing practices are sometimes believed to be a modern phenomenon, they are in fact a direct continuation of 19th-century patent medicine advertising. “Nostrum-mongers,” as the novelist Henry James dubbed them, are noted in the history of advertising as having been the leading spenders on, and foremost originators of advertising technique (Applbaum, K., 2006; Devaney, E., 2021). Nostrum sellers pioneered print advertising, use of trademarks and distinctive packaging, “pull” or demand stimulation strategies, and even the design and commissioning of medical almanacs that functioned as vehicles for promotion of disease awareness (Applbaum, K., 2006; Devaney, E., 2021). Henry James’s psychologist brother, William James, was so exasperated by “the medical advertisement abomination” that in 1894 he declared that “the authors of these advertisements should be treated as public enemies and have no mercy shown” (Applbaum, K., 2006; Devaney, E., 2021). There is no doubt that drug company discoveries have profoundly improved upon our capacity to treat illness. But pharmaceutical marketing is more closely aligned with consumer marketing in other industries than with medicine, for which the consequences are not trivial (Applbaum, K., 2006; Devaney, E., 2021). Once we view pharmaceutical industry activities in this light, we can disentangle industry’s infuence on contemporary medicine. Because we believe that we owe corporations our wealth and well-being, we tend not to question corporations’ fundamental practices, and they become invisible to us. What follows is an attempt to demystify some of the assumptions at work in the “culture of marketing”, toward the goal of explaining contemporary disease mongering. DOI: 10.4324/9781003313168-1

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Introduction to Pharmaceutical Marketing Management

It was common for drug companies (and individuals) to come up with crazy formulas, patent them, and market them in the early 1900s (Applbaum, K., 2006; Devaney, E., 2021). In those days, there were no regulations. The drug product, like a magic tonic, was advertised in the local newspaper or on a billboard, claiming it could cure cholera, diphtheria, dysentery, measles, and rattlesnake bites (Applbaum, K., 2006; Devaney, E., 2021). Before 1906, it was totally possible. All ailments found along the Oregon Trail were treated with this method. Since 1900, pharmaceutical marketing has undergone many changes and developments. The United States Food and Drug Administration (USFDA) has also actively come into force, a federal agency within the Department of Health and Human Services that administers pharmaceutical marketing regulations. From 2011 onwards, pharmaceutical marketing has emphasized direct-to-consumer marketing (D2C) techniques that deliver a return on investment, which is better than traditional channels (such as TV and print) (Applbaum, K., 2006; Devaney, E., 2021).

1.2 Evolution of Pharmaceutical Marketing Pharmaceutical marketing can be summed up as the act of identifying a patient’s needs and wants, creating a drug or healthcare product/service to satisfy those needs and wants, and developing a method for bringing the drug product to market, as well as determining how to communicate about the drug product with physicians and patients. In pharmaceutical marketing, the value of a drug product is determined, the target groups are identifed (segmentation), and then a transaction is established to exchange the product for its value, thus satisfying the buyer’s healthcare needs and wants. This method of retaining customers and increasing sales has been developed by pharmaceutical businesses by complying with international standards and regulations (Levy, R., 1994). In the pharmaceutical marketing evolution process, there are three stages: production, sales, and marketing. The production concept dominated between the industrial revolution and the early 1920s. During the early days of industrialization, output was limited, the competition was non-existent, and demand was high. Neither consumer preferences nor demands were taken into account by companies. In the end, they were only concerned with two questions: could the product be manufactured? Can it be produced in sufcient quantities? Since the goods produced were essential, the production concept worked well since there was a high level of unfulflled demand. Almost everything that could be produced was priced by the producer. The production concept dominated until the late 1920s (Levy, R., 1994). As mass production became commonplace, competition increased, and demand declined by the early 1930s. To convince customers to buy their products, the frms began using the sales concept (or selling concept) through advertising and personal sales. In order to sell our product, we must determine where

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it can be sold. Is it possible to charge a reasonable price for it? Sales concepts did not take into account whether the product was actually needed; they were merely concerned with beating competitors to the sale (Levy, R., 1994). A product was traditionally marketed after it was produced, and many people associated marketing with hard selling. “Marketing” is often used to refer to sales today. Sales generated by hard selling no longer worked after World War II because of the proliferation of products. Customers had more discretionary income and were able to buy only products that met their changing needs precisely because of the increase in discretionary income. The challenge became understanding what customers wanted, developing it at the right time, and maintaining their satisfaction. In order to satisfy these discerning customers, companies adopted the marketing concept that focuses on customer needs before developing products, aligns the company’s functions with the needs of customers, and achieves long-term profts by satisfying these needs (Levy, R., 1994). With the advent of new technologies and media in recent years, the pharmaceutical marketing landscape is rapidly changing in the United States. Due to the increasing availability of health and medical information online, pharmaceutical marketers are searching for new ways to reach their target audiences through digital channels. Internet and other technologies were used by a signifcant percentage of US physicians in 2008 to access pharmaceutical, biotech, and medical device information. Meetings with medical representatives in person were harder to schedule for the physicians (Levy, R., 1994). The use of online marketing by drug companies to reach physicians is becoming more popular. Among the emerging electronic promotional (e-promotional) activities are: ● ● ● ●

Live video detailing. Online events. Electronic sampling. Physician customer service portals such as MDLinx, PV Updates, Aptus Health (former Physicians Interactive) and Epocrates.

Direct-to-user marketers are turning to digital channels due to fragmented audiences and the increasing number of access points for news, entertainment, and information. Direct-to-user (DTC) advertisements on television, radio, and print have become less relevant in recent years, and companies are increasingly using digital marketing methods to reach a wide range of clienteles looking for health information online which include (Levy, R., 1994): ● ● ● ● ● ●

Product websites. Online display advertising. Search engine marketing. Social media campaigns. Place-based media. Mobile advertising.

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Introduction to Pharmaceutical Marketing Management

1.3 Objectives, Functions and Importance of Pharmaceutical Marketing In broader perspectives pharmaceutical marketing consists of promotional activities carried out by a pharmaceutical manufacturing and marketing organization to manufacture pharmaceutical products and available to customers (patients) by connecting with the doctor fraternities who are being considered as the primary customer of any pharmaceutical marketing or manufacturing organization. Pharmaceutical marketing is the last element of an information range, where research and development (R&D) knowledge and concepts are transformed and disseminated into practical therapeutic tools for clinical evaluation to the needy patient fraternities and where the appropriate clinical proceedings relation information are gradually transmitted ensure sustainable development, information should be transferred and made more useful to the healthcare system. Sometimes, R&D is part of a company’s corporate social responsibility (CSR). By engaging in both R&D and CSR activities, pharmaceutical companies can gain a competitive advantage in the global marketplace. The existing available studies also validate that R&D intensity positively afects CSR and that this relationship is signifcant in capital-intensive manufacturing industries like the pharmaceutical industry (Nandy, M. & Biswas, D., 2015). To combat climate change, multinational pharmaceutical companies are investing a signifcant amount into the R&D space to develop cosmetic or skincare products which can provide enormous protection to patients from ultraviolet A and ultraviolet B (UV-A and UV-B) radiations. Dissemination of information to the physicians or healthcare providers (HCPs) through marketing is an important element of pharmaceutical marketing management while dealing with an innovative healthcare solution. By providing research-centric authentic information, pharmaceutical marketing assists physicians in prescribing (Rx) drug therapy or health care solution to needy patient fraternities for treating diferent diseases and disorders. In today’s context, pharmaceutical marketing is the most systematic and comprehensive information system for updating physicians about the availability, safety and side efects, efcacy, and procedures of using medicines. The costs connected to pharmaceutical marketing and product promotion are substantial. The capital-intensive pharmaceutical industry is highly technology driven which tries to communicate the research-driven contemporary information about a particular drug to the healthcare providers (HCPs).

1.3.1 Objectives of Pharmaceutical Marketing “Market” terminology has been originated from the Latin word “marcatus” which means a “place where commercial activities are carried out” (Shanmugapriya, G. & Sethuraman R., 2014). The modern concept of marketing is consumer oriented and involves the design of products acceptable to the consumer and the

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conduct of those activities which facilitate the transfer of ownership between seller and buyer. The performance of pharmaceutical business activities that direct the fow of pharmaceutical services and goods from the producer to the end user (patient) is known as “Pharmaceutical Marketing”.

1.3.2 Functions of Pharmaceutical Marketing Important functions of pharmaceutical marketing are discussed below. i) Buying and assembling Buying is one of the fundamental functions of marketing. The manufacturers buy raw materials and equipment to manufacture their pharmaceutical products. Similarly, middlemen such as wholesalers and retailers have to buy the goods or products from various sources of supply to sell them at a proft to consumers. There are four methods of buying: a) By inspection: In this method, the buyer or his agent visits the premises of the seller for inspection of the goods which are proposed to be purchased. b) By sample: It is a very common method of purchase of goods. The sample of goods is supplied by the supplier for approval from the end of the buyer. c) By description: It deals with purchases of goods made based on the description of goods in the catalogue or price list of the supplier. d) By grades: The goods which are graded and standardized as procured in estimated quantity by indicating their relevant grade e.g. ISI (“Important

IMAGE 1.1

A chemist is dispensing medicine to a patient outside a medical college in Kolkata City, Country: India. Source: Photograph by the author

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Introduction to Pharmaceutical Marketing Management

IMAGE 1.2

Pharmaceutical consignment was booked from Mumbai, India to Port Blair, Andaman & Nicobar Islands, India.The online tracking system of a transporter is connecting all the dots from consignment booking stage to consignment delivery stage. Source: Screenshot captured by the author based on online tracking at: https://www.tciexpress.in/trackingdocket.aspx

Safety Information”, IP (“International Pharmacopoeia”), BP (“British Pharmacopoeia”), and USP (“United States Pharmacopeia”) etc. ii) Selling In marketing, management selling is one of the crucial functions. Through the “selling process”, goods and services fnally reach the end users for fulflling their needs, and the companies perform the important function of product distribution among the consumer fraternities. In business process, buying and selling are inter-connected with each other. iii) Transportation Transportation means the movement of goods and people from one place to another by systematic conveyance. Mass production and mass selling are impossible without efcient and economical transport. a) It assists in stabilizing prices of commodities by the movement of supplies from surplus to defcient areas.

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7

b) It provides support for the promotion of several industries which produce diferent perishable and consumable items. c) It is indispensable for assembling and dispersal of raw materials and goods. It also provides immense support for the production of goods without any interruption (Sharma, U.R., 2012). iv) Storage It involves necessary arrangements for retaining the goods in a perfect state till they are taken to the marketplace when needed by the consumers (Ghodke, K., 2016 & Nandini, G., 2021). a) It helps to maintain the stability of prices. b) It supports the availability of goods. c) Certain goods such as “active pharmaceutical ingredients” (API), drugs and chemicals are needed to be properly stored to prevent damages. v) Grading a) It ensures goods of standard quality to the consumers. b) It enables the seller to sell by sample and description. This helps in broadening the market for a particular commodity (Nandini, G., 2021). c) It facilitates the distribution of goods at every stage. d) It enables the seller to get a better price for the product. e) It reduces the cost of advertisement and sales promotion.

IMAGE 1.3

The employees of a reputed pharmaceutical company are performing inventory related activities in a clearing and forwarding agent’s (C&F’s) warehouse situated in Dhulagarh (Howrah District) of West Bengal State, Country India. Source: Photograph by the author.

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Introduction to Pharmaceutical Marketing Management

vi) Packing and Packaging Pharmaceutical packaging (or drug packaging) refers to the packages and packaging methods used for pharmaceutical preparations. It includes all of the operations that take place from production to distribution and fnally to the end user. In pharmaceuticals, the packaging is often involved in dispensing, dosing, and using the pharmaceutical product. Pharmaceutical packaging includes activities such as wrapping, crating, flling, and compression. In contrast, packaging refers to the process of designing and creating packages for diferent products. The features of packaging are mentioned below. a) It facilitates handling and use of the product. b) It ensures the supply of products of the right quality, quantity, and weight to the consumer without any spoilage, breakage, or leakage during transportation. c) It promotes sales as aesthetic packaging attracts the attention of consumers. d) It helps in branding and advertising of the product. e) It has a repack and resale value for the consumer after the use of the product. vii) Financing The marketing concerns require both fxed and working capital. The wholesaler, retailer, commission agent, broker, cooperative undertakings or sales department of a manufacturer need a relatively large amount of capital for the purchase of goods for resale and paying of wages and salaries. The capital required for these purposes is called working capital. Fixed capital is required for the purchase of land, building, machinery, and furniture. Finance is needed for the following purposes:

IMAGE 1.4 AND 1.5

Diferent types of packaging techniques used in pharmaceutical marketing. Source: Photograph by the author in a Chemists shop in Kolkata City, India.

Introduction to Pharmaceutical Marketing Management

a) b) c) d) e)

9

To maintain a minimum level of inventories in anticipation of demand. To meet the buying, selling, and transport expenses. To provide credit facility to the consumer. To meet changes in style, fashion, and competitive products. To regulate the production and storage of goods which is in demand during a particular season.

viii) Feedback Information Feedback information is needed for the proper running of business. The management collects information regarding the demand, supply, latest trends of the market, and future demand of their items through proper market research. a) It helps to introduce new products in the market after the proper survey of the market. b) It helps the manufacturer to fnd out other similar products available in the market.

1.3.3 Importance of Pharmaceutical Marketing Pharmaceutical marketing impacts the lives of patient fraternities or end users in many ways. From the following discussion, we will come to know how the marketing of pharmaceutical products infuences consumers. The importance of pharmaceutical marketing is explained below through a diagram. a) Authorization power: A prescription, abbreviated as ℞ or Rx, refers to a formal communication from a licensed physician to a licensed pharmacist, giving them permission to dispense a particular prescription for a specifc patient (Wikipedia, 2022). For pharmaceutical companies, doctors or healthcare providers are considered the primary customers and hence patient fraternities need an authorized document in the form of a prescription (Rx) from the doctors to purchase a prescription drug. As far as the protocol of prescription writing is concerned, the use of block letters (for the names of the drugs), symbols (for the frequency of dosing), and generic names wherever possible (brand names only for combinations) should sufce (Medical Dialogues, 2022) (Table 1.1). b) Purchasing habit: Transforming non-purchasers of medicines to the purchasing habits of the consumer for getting treated for diferent diseases and disorders. Besides ensuring that the prescription is not misread, the doctors will also provide guidance on how to administer the medicine, such as frequency, precautions, and side efects. Furthermore, the dispensaries of doctors or pharmacists’ counters connected to the doctor’s chamber can save a patient’s time and efort when it comes to purchasing medications. The freedom of choice

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Introduction to Pharmaceutical Marketing Management

TABLE 1.1 Authorization Power of Prescription (Rx) •

• •

Name of the medicine: Write the Generic Name in Capital Letters, with the brand name/company name in brackets by meeting the regulatory guidelines of the apex body/parent authority of the government of the particular country. Strength or potency of the medicine. Dosage Form: For example, tablet or syrup etc.

Source: Author’s Own.

IMAGE 1.6

The patient had been advised to purchase the medicines as prescribed (Rx) by the healthcare provider (doctor) of Asian region (India). Source: Photograph by the author.

of patients when purchasing medicines may, however, be restricted in a number of ways by doctors. The patient is obligated to buy the medicines ofered by the doctor during the consultation even when alternative medicines and brands are available elsewhere for a lower price (Math SB, Manjunatha N, Kumar CN, Gowda GS, Philip S, Enara A, Gowda M., 2019). c) Spreading awareness of disease: Spreading awareness of a particular disease for identifying and classifying markets. For prevention, early detection, and targeted therapy to be efective, awareness is crucial. It is more likely that people will seek preventative measures such as screenings, tests, and checkups when they are aware of a disease and its symptoms. In the absence of knowledge about diseases and options for screening and treatment, there is a serious barrier to good health. The diference between life and death can

Introduction to Pharmaceutical Marketing Management

11

often be the diference between cancer and other diseases (Roche, 2022). As part of preventive healthcare management, pharmaceutical marketers utilize diferent marketing campaigns to spread awareness of diferent diseases and disorders as well as make people aware of certain drugs indicated for specifc treatments. d) Supply chain management (SCM): To procure drugs and medicines, legitimate professional licensing is required like a drug license (DL) to stock and sell pharmaceutical products. Basically, to ensure that patients receive their medications on time, the pharmaceutical supply chain faces a number of challenges. A pharmaceutical supply chain is responsible for manufacturing and delivering prescription medicines to patients. Medication accessibility and availability are actually made possible through a complex supply chain network. Pharmaceutical supply chains involve a variety of stakeholders, from manufacturers to wholesale distributors to pharmacy beneft managers (PBMs). Such a complex process carries high stakes for pharmaceutical companies. Incorrectly distributed drugs have a negative impact on the company’s reputation, customer satisfaction, and profts. Patients’ out-of-pocket expenses can increase signifcantly as a result of supply chain visibility challenges, drug counterfeiting, and cold-chain shipping (Pharma News Intelligence, 2022).

IMAGE 1.7

Drug license (DL) copies of an Asian (Indian) stockiest for procuring medicines; manufactured and marketed by diferent pharmaceutical companies. Source: Photograph by the author.

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Introduction to Pharmaceutical Marketing Management

e) Transfer of information: Through the pharmaceutical marketing process, new research concepts are transformed into practical therapeutic tools, which are increasingly useful to healthcare systems. It is essential for marketing to provide doctors with information about pharmaceutical innovations so that they can make informed decisions. In order to match each patient’s therapy to their specifc needs, physicians can choose from carefully characterized drug selections. Currently, pharmaceutical marketing programmes are the most comprehensive and organized source of information on available medicines, their safety, efectiveness, risks, and techniques. Due to the complexity and importance of information, high-tech users must receive; high-tech industries typically have substantial marketing costs. The cost of medicines can be ofset if drug costs are lowered and medicines are used properly (Levy R., 1994).

1.4 Marketing vs. Pharmaceutical Marketing A brief discussion about marketing and pharmaceutical marketing has been provided herewith. There are certain distinctions which are presented in Table 1.2.

1.5 Difference between Pharmaceutical Marketing and Selling A brief discussion between pharmaceutical marketing and selling is presented in Table 1.3.

1.6 Concept of 7P’s in Pharmaceutical Marketing Once the pharmaceutical product is developed, then pharmaceutical marketers adopt the correct marketing strategy as well. There is a “Seven (7) P Formula” that is used widely to connect end users for continuously evaluating and re-evaluating business activities of pharmaceutical companies (Sharma, U.R., 2012). These seven P’s are product, price, place, promotion, packaging, positioning, and people. As pharmaceutical products, markets, customers and needs change at rocket speed, in most recent times, pharmaceutical marketers continuously re-examine these seven 7Ps to make sure their pharmaceutical business progress is running on track and try to achieve the maximum outcomes in order to gain a competitive advantage over other competitors operating in the same market place (Sharma, U.R., 2012).

1.6.1 Product (P1) To begin with, pharmaceutical marketers develop the practice of looking at the proposed product as. In this regard, some critical questions are being asked such as:

Marketing is the study and management of exchange relationships. It is the business process of creating relationships with and satisfying customers. Because marketing is used to attract customers, it is one of the primary components of business management and commerce. According to the Western arts of marketing and distribution Marketing is def ned as the action or business of promoting and selling products or services, including market research and advertising. No licence as such is required to market fast moving consumer goods (FMCG) or over-the-counter (OTC) products. With basic sales knowledge a person can start his marketing career.

The person in general marketing can meet every person in society for selling certain products or services.

Stringent regulation is not applicable in case of marketing non-pharmaceutical products like FMCG, OTC etc. In general marketing practices there is no competent authority which controls the price of a product or commodities.

1

4

5

Source: Author.

6

3

2

Marketing

Sl.No.

The person in pharmaceutical marketing is a knowledge based person who has the required knowledge about drugs or molecules. The person who promotes the drug to the healthcare provider (HCP) is known as the Medical Representative (MR) who is also accustomed with the knowledge of human anatomy and physiology. Basically the person dealing in pharmaceutical marketing must be qualifed, because he has to deal with drugs, little carelessness can be harmful for the consumers or patient fraternities. But in case of pharmaceutical marketing the sales professionals generally meet the focussed customer group who are none other than the doctors, clinical experts, consultants, healthcare providers (doctors). Pharmaceutical marketing activities have to undergo with diferent regulations, norms and compliances. In pharmaceutical marketing there are competent authorities which closely monitor the price of pharmaceutical products. For example in emerging economies like India, “National Pharmaceutical Pricing Authority (NPPA)” and “Drug Price Control Orders (DPCO)” are very much active and vigilant in monitoring the price of pharmaceutical products being marketed by diferent pharmaceutical companies.

Proper drug licence (DL) is required to deal in pharmaceutical marketing. All drugs should be marketed with necessary legitimate licences and required regulatory approvals.

Pharmaceutical Marketing deals with the marketing of drugs and medical devices by the diferent private and public organizations to the doctors (healthcare providers), clinicians and consumers (Healthcare Weekly, 2021). Pharmaceutical manufacturing and marketing companies allocates a signifcant amount of their budget for selling & distribution expenses for conducting the marketing activities in an efcient manner.

Pharmaceutical Marketing

TABLE 1.2 Diferences between Marketing and Pharmaceutical Marketing

Introduction to Pharmaceutical Marketing Management 13

14

Introduction to Pharmaceutical Marketing Management

TABLE 1.3 Diference between Pharmaceutical Marketing and Selling

Sl. No.

Pharmaceutical Marketing

Selling

1.

The end user, patient is not the target customer. The direct customer, doctor, makes the purchase decision by prescribing brand. Demand created by Medical Representative (MR) through prescription, creating “PULL”. Distribution service is controlled by medical representatives (MR).

The end user/patient, the buyer is the target customer. The end user/patient, the buyer makes the purchase decision.

2. 3. 4. 5. 6.

Main source of feedback on market trend to company is medical representatives (MR). The customer, doctor is well qualifed and knows the product better than the salesman or MR.

Demand created by advertisements and point of purchase (PoP) or ‘PUSH’. Distribution network, many times works independent of company sales representative. Company depends on marketing professionals/research agencies for the updated market information. The customer/patient/end user may or may not be well qualifed and the salesman (MR) knows better than the customer/patient/end user.

Source: Author.

IMAGE 1.8

Augmentin 625 DUO Tablet 10’S. Source: Photograph by the author.

a) Is the proposed pharmaceutical product appropriate and suitable for the market and for which diseases is it indicated? (Sharma, U.R., 2012) b) How will the proposed/designed pharmaceutical product be diferent from the other pharmaceutical companies? (Sharma, U.R., 2012) Example: Details retrieved from an online pharmacy store (Netmeds, 2021) Best Price* ₹ 161.37 | MRP (Maximum Retail Price) ₹201.71 (Price inclusive of all taxes)

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15

* Get the best price on this product on orders above INR 750 (Netmeds, 2021) *10 Tablet(s) in a Strip * Marketed by: Glaxosmithkline Pharmaceuticals Ltd (GSK) * Country of Origin: India i) Product Detailing: What is Augmentin? Augmentin is an antibiotic which works by killing bacteria that cause infections. It contains a combination of medicines called amoxicillin and clavulanic acid (Netmeds, 2021). ii) What is Augmentin used for? Augmentin is used in adults and children to treat the following infections such as (Netmeds, 2021): a) b) c) d)

Sinus infections Urinary tract infections Skin infections Dental infections

1.6.2 Price (P2) The second P in the formula is price. Pharmaceutical marketers develop the tendency of continually examining and re-examining the prices of the pharmaceutical products and services being sold in the marketplace and would like to make sure that they’re still appropriate to the realities of the current market. Sometimes pharmaceutical companies need to lower the prices of pharmaceutical products. At other times, it may be appropriate to raise the prices of innovative pharmaceutical products designed to treat diferent diseases and disorders. Example: Please refer to the following example for clarity Many pharmaceutical companies have witnessed that the proftability of certain drug products doesn’t rationalize the amount of resources and endeavours that are extremely essential into manufacturing them. By increasing their prices, they may lose a percentage of their customers, but the remaining percentage generates a proft on every sale (Sharma, U.R., 2012). A product is only worth what customers are prepared to pay for it. The price needs to be competitive, but this does not mean low price or cheapest price; the small pharmaceutical companies may be able to compete with larger competitors by providing extra services that will recommend customer better value for money (Chartered Institute of Marketing, 2021). The pricing of pharmaceutical companies must ensure a proft. It is one of the important elements of the marketing mix that generates revenue and ensures business sustainability of the pharmaceutical company; everything else represents a cost (Sharma, U.R., 2012; Chartered Institute of Marketing, 2021).

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Introduction to Pharmaceutical Marketing Management

Thinking of pharmaceutical price as “cost” to the customer or patients helps to understand why it is so important. Positioning of the price is also equally important for pharmaceutical marketers. The more pharmaceutical companies charge for their products, the more value or quality customers will expect for their money (Sharma, U.R., 2012). There are some pricing methods which are adopted while designing the fnal price of the pharmaceutical product by the pharmaceutical companies. A brief discussion of pricing methods is discussed in the following. Price Skimming: In this system, the producer sets an exorbitant price for a novel high-end or an innovative pharmaceutical product or a technical medicinal product which is uniquely diferentiated owing to R&D and innovation. Penetration Pricing: This pricing strategy is used by pharmaceutical marketers to attract customers to a new pharmaceutical product or service. Penetration pricing is the practice of ofering a low price for a new pharmaceutical product or service during its initial ofering in order to attract customers away from its competitors operating in the same marketplace. Psychological Pricing: It deals with the price according to the psychographics of the consumers who are aimed at a specifc market segment. Cost-plus Pricing: This price method is adopted by the pharmaceutical marketers to decide the pharmaceutical product as “cost-plus pricing”. Cost-plus pricing is a pricing method in which the selling price of a pharmaceutical product is generally fxed by adding a specifc amount of markup to that particular drug product’s unit cost.

1.6.3 Place (P3) In the pharmaceutical marketing mix, the third P is the “place” where the pharmaceutical products or services are actually sold. The place basically connects the consumer with the company. Sometimes a change in place results sales increase. Pharmaceutical companies can sell their product portfolio in many diferent places. Some pharmaceutical companies use direct selling (example: through online pharmacy or electronic pharmacy (e-pharmacy), sending their salespeople or medical representatives (MRs) out to personally meet and talk with the prospective clients who are the healthcare providers (HCPs) or doctors or clinical experts or consultants). Some sell by telemarketing (some pharmaceutical companies hire experts to provide details about the pharmaceutical product to the doctors over the telephone. Some sell through catalogues or email content. Some sell at trade shows or in retail establishments (example: during doctors’ conferences, the pharmaceutical exhibitors keep their stall for promoting or showcasing their pharmaceutical product portfolio. Some sell in joint ventures with other similar pharmaceutical products or pharmaceutical services. Some pharmaceutical companies use manufacturers’ representatives or distributors. Many pharmaceutical companies use a combination of these methods, sometimes one or more methods. The pharmaceutical marketer in each case

Introduction to Pharmaceutical Marketing Management

IMAGE 1.9

IMAGE 1.10

17

The sales professionals of an Asian (Indian) pharmaceutical company are performing some administrative works at the stockist point. Source: Photograph by the author.

Pharmaceutical product detailing of pharmaceutical company’s sales professionals to a healthcare provider (doctor) in Asian region (Kolkata City, Country: India). Source: Photograph by the author.

must make the right choice about the very best location or place for the customer or patients to receive essential buying/decision-making information on the pharmaceutical product or pharmaceutical service needed to make a buying decision. A brief discussion about diferent places which pharmaceutical companies adopt is discussed below.

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Introduction to Pharmaceutical Marketing Management

Retailer – In a pharmaceutical supply chain, a person who sells medicines directly to the consumer or patients is known as a retailer or chemist. This pharmaceutical supply chain component is as opposed to a wholesaler or stockist, who normally sells the pharmaceutical goods directly to the patients and end users. Wholesaler – A person or frm who deals with pharmaceutical products that buys large quantity of pharmaceutical products from various producers or vendors, warehouses them and resells to retailers. Direct Selling – Face-to-face presentation (example: during demonstration and detailing of a pharmaceutical product by a medical representative or MR to the doctors.

1.6.4 Promotion (P4) The fourth P of the pharmaceutical marketing mix is promotion. Pharmaceutical promotion includes all the ways pharmaceutical marketers tell their customers about the drug products or services portfolio and fnally ensures sales to the end users. Large-, medium-, and small-sized pharmaceutical companies continuously experiment with diferent ways of advertising, promoting, and selling their drug products and services to end users. Pharmaceutical product promotion includes activities such as: a) b) c) d) e) f) g)

Branding Advertising Personal relations (PR) Corporate identity Sales management Special ofers Exhibition

In pharmaceutical marketing, a good promotion technique provides a platform for exchanging the dialogues with both existing and prospective customers. Pharmaceutical promotion should communicate the benefts that patient fraternities obtain from a product and not just the feature of that product. Some promotional strategies which are being adopted by pharmaceutical marketing companies are: Branding – This particular technique basically distinguishes a pharmaceutical product or company from its rivalries or competitors through its symbol, words or marks. Most pharmaceutical marketers incur a substantial amount to ensure successful brand building exercise to establish the company’s brand in the pharmaceutical marketplace. Example: Brand name “Calpol” containing “paracetamol” molecule is the brand of Glaxo Smith Kline (GSK). “Calpol 500 MG” tablet is indicated for the

Introduction to Pharmaceutical Marketing Management

IMAGE 1.11 AND 1.12

19

Paracetamol Tablets and Oral Suspension marketed by GlaxoSmithKline Pharmaceuticals Limited (GSK) under the brand name of Calpol 650 mg. Source: Photograph captured by the author in a medicine shop in India.

treatment of temporary relief from fever, mild to moderate pain such as muscle ache, headache, toothache, arthritis, and backache. Endorsement – An endorsement is a written statement or a public statement which is being endorsed by a celebrity, business, or professional group praise enthusiastically the feature or unique selling proposition (USP) of a product and recommending the company as well as the quality of pharmaceutical products being marketed by that pharmaceutical company. For example: Amitabh Bachchan joins Mankind Pharma as its brand ambassador/endorser to “Serving life” Mankind Pharma, a quality-driven Indian pharmaceutical company announces Amitabh Bachchan as its brand ambassador. Through this partnership, Mankind Pharma has emphasized the signifcance of good health and afordable treatment for all through promotional content designed for television (TV) telecast.

1.6.5 People (P5) People or the human assets are one of the most important P’s of “pharmaceutical marketing mix”. There are wide ranges of professionals who dedicate their lives to the pharmaceutical industry. Some of the professionals who are associated with the pharmaceutical industry include (Table 1.4): Most of the pharmaceutical companies spend quality time to select, recruit, hire, and retain the right people, with the required skill-sets and abilities to

20 Introduction to Pharmaceutical Marketing Management TABLE 1.4 Wide Range of Pharmaceutical Professionals • • • • • • •

Drug Distribution Manager Market Researcher and Drug Developer Pharmaceutical Purchase Manager Formulation Scientist Technology Scientist Quality Control (QC) Manager Business Development Manager

• • • • • • • •

Professional Sales Executive Area Sales Manager (RSM) Regional/ Zonal Sales Manager Product Executive Training and Development Human Resource Manager National Sales Manager (NSM) R&D Expert

Source: Author’s own.

IMAGE 1.13

Medical representatives (MRs) in Asian region (Nepal country) are performing some activities in a wholesale’s ofce premise. Source: Photograph by the author.

perform the desired job. Pharmaceutical companies should also take into account for putting the right person into the right position for transmitting company’s vision into ground reality.

1.6.6 Process (P6) Process is another element of the pharmaceutical marketing mix or 7Ps. At each stage of the process, the pharmaceutical marketers try to accomplish the following:

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21

a) Deliver value through all elements of the marketing mix. Process, physical evidence, and people enhance services. b) Feedback can be taken and the mix can be altered. c) Customers are retained, and other services or pharmaceutical products are extended and marked to them. d) The process itself can be customized as per the needs of diferent individuals, who are experiencing a similar service at the same time. Marketing adds value to each of the stages of processes which are having two important components, viz. inputs and outputs (or outcomes). In case of value chain analysis, the integration of a series of processes takes place with respect to pharmaceutical marketing. There are a number of types of processes; for example, during manufacturing pharmaceutical products, the drug products have to undergo multiple processes followed by in-depth quality control and checking. In the following, some processes which are connected to pharmaceutical marketing are listed below. a) Technological processes: Include the process of manufacturing pharmaceutical products and delivering them to cater to the needs of the patients. b) Electronic Processes: Once the manufacturing of the pharmaceutical product is completed, the packaging takes place followed by the barcodes which are displayed on the cover of the drug products which are then scanned for all ofcial records and reference. c) Customer/patient interface: Some direct activities and indirect activities are involved in pharmaceutical marketing as important business processes. Direct activities add value at the customer/patient interface as the consumer/ patient experiences the drug product/service. Many processes are supported by indirect activities as well, often termed as back ofce activities, which support the service before, during and after it has been consumed. d) Telemarketing and internet marketing: In pharmaceutical marketing there are some processes that integrate with overall marketing process, for example – “telemarketing” and “internet marketing”. In the current context, electronic detailing (e-detailing) has also been incorporated as an efective promotional tool in pharmaceutical marketing. More specifcally, in pharmaceutical marketing, processes are used to control the overall marketing mix meaning that processes measure the achievement of marketing objectives or missions set by the pharmaceutical companies.

1.6.7 Physical Evidence (P7) The physical evidence/environment is the space by which pharmaceutical companies are surrounded in the pharmaceutical marketing mix. Globally, most reputed pharmaceutical companies ensure their ofces and manufacturing facilities are extremely environmentally friendly to create a favourable working

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Introduction to Pharmaceutical Marketing Management

environment. There are various factors that contribute to work-friendly conditions, including colour, temperature, smell, sound, music, and noise. The working atmosphere or ambience is a package consisting of all these elements which enable the internal customers (stafs/employees serving the organization) to experience the service consciously or subconsciously towards providing best performance for accomplishing the business objectives of the pharmaceutical company.

1.7 Facts about Worldwide Revenue from Pharmaceutical Sector As discussed before, owing to the emergence of diferent diseases and disorders, the global pharmaceutical market has experienced signifcant growth in recent years. The international pharmaceutical market (IPM) plays a crucial role to understand consumer insight into how patient fraternities avail medications and what patients pay for those medications (Statista, 2021). In international context, some pharmaceutical markets are better for pharmaceutical companies than others in terms of revenue generation and these markets are mainly developed nations (Statista, 2021). In spite of the impact of several emerging countries, the US has captured a signifcant share of the international pharmaceutical market (IPM) worldwide. The US is home to some of the biggest pharmaceutical companies across the world. The end users of America are having the access to one of the most advanced pharmaceutical systems in the world; even though at a high medicine cost (Statista, 2021). Internationally, it is observed that the US has come out as the leading market for pharmaceuticals, followed by the group of emerging markets. Middleand low-income countries such as India, Colombia, Brazil, Russia, and Egypt to name a few (Statista, 2022) come under the purview of emerging market economies. The Latin American region accounts for the lowest market share of the international pharmaceutical market’s revenues (Statista, 2022) in spite of increasing revenues globally. From the above fgure we can visualize that at the end of 2020; the total global pharmaceutical market was valued at about 1.27 trillion US dollars by the international pharmaceutical experts. We can also observe that there was a signifcant rise in revenue from the year 2001 when the international pharmaceutical market (IPM) was valued at just 390 billion US dollars.

1.8 Profle of Reputed Global Pharmaceutical Companies A signifcant positive growth had been observed in the global pharmaceutical industry as the top global pharmaceutical companies were at the forefront of the fght against COVID-19 originated due to the novel coronavirus (Nandy, A., 2021). The COVID-19 pandemic had an unprecedented impact on the world in

Introduction to Pharmaceutical Marketing Management

23

2020. People at large across the globe came together and looked eagerly to the pharmaceutical industry to create immediate healthcare solutions to get recovered from the deadly novel disease COVID-19 owing to the emergence of novel coronavirus. Even with signifcant disruption and reprioritization of clinical trial activity, R&D activity levels remained at historically high levels for the pharma industry in 2020, driven by new funding and strategic business transactions. This led to many global pharmaceutical companies successfully developing drugs and vaccines to combat COVID-19 and rolled these out across the world. Many global pharmaceutical companies were able to meet their fnancial expectations last year as medicines kept reaching to the patients or end users, despite lockdowns social distancing and other restrictions imposed to stop the spread of COVID-19 infection (Nandy, M. & Pal, B., 2015a; Nandy, M. & Pal, B., 2015b; Pal, B. & Nandy, M., 2015a; Nandy, M. & Biswas, D.2015; Nandy, M. & Pal, B., 2016c; Nandy, M. & Pal, B., 2016d; Nandy, M. & Pal, B., 2016e; Nandy, M. & Pal, B., 2017f; Nandy, M. 2018a; Pal, B. & Nandy, M., 2019b; Nandy, M. 2020b; Nandy, M. 2020c; Nandy, M. 2020d; Nandy, M. 2020e; Nandy, M. 2020f; Nandy, M. 2020g; Nandy, M. 2020h; Nandy, M. 2020i; Nandy, M. 2020j; Nandy, M. 2020k; Nandy, M., 2021l; Nandy, M., 2022m; Nandy, M., 2022n; Nandy, M., 2022o; Nandy, M., 2022p; Nandy, M., 2022q; Nandy, M., 2022r; Nandy, M., 2022s; Nandy, M., 2022t; Nandy, M., 2022u; Nandy, M., 2022v). Because of several factors, it had been observed that global pharmaceutical industry (GPI) had continued to grow in a signifcant manner and the growth was up by an impressive US$1.27 trillion in FY 2020–2021 and the important factors according to the international pharmaceutical marketing experts were “new product launches” and “aging population”. In spite of the disruptions caused by the pandemic, the USFDA had approved 53 new drugs and biologics United States

533.5

China

93

Japan

79.2

Germany

56.6

France

37.8

Italy

33.4

United Kingdom

28.7

Spain

26.3

Canada

23.9

Brazil

21 0

100

200

300

400

500

600

Revenue in Billion U.S. Dollars (US $) FIGURE 1.1

Country-wise market share for pharmaceuticals. Source: Author’s own based on data collected from https://www.statista.com/

24  Introduction to Pharmaceutical Marketing Management

1400

Revenue in billion U.S. Dollar (US $)

1200 1000 800 600

427.6 390.2

400

498

726.4 601.2 648.7 559.9

799

1250.6 1265.2 1204.8 1073.4 1135.2 1115.1 964.4 1063.1 993.8 963.2 888.2 830.6

200 0 Year

FIGURE 1.2

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Global pharmaceutical market (GPM) for the period of 2001–2020. Data Source: Author’s own based on data collected from https://www.statista .com/

TABLE 1.5 Profile of Reputed Global Pharmaceutical Companies by

Revenue FY 2020–2021 Rank Company

Revenue (US $ billions) Country of Origin

1 2 3 4 5 6 7 8 9 10

82.06 63.85 51.75 48.02 47.45 46.84 43.92 39.28 33.27 31.9

Johnson & Johnson Hoffmann-La Roche Pfizer Bayer Novartis Merck & Co. GlaxoSmithKline Sanofi AbbVie Abbott Laboratories

USA Switzerland USA Germany Switzerland USA United Kingdom France USA USA

Source: Author’s own based on data collected from https://www.statista.com/, https://blog.bizvibe.com/, https://pharmastate.blog/ and company-wise annual report extract

in FY 2020–2021 which had surpassed the 48 new entities that were approved in FY 2019–2020 and was the second-highest level of approvals in the last decade. The following is a list of the largest pharmaceutical companies ranked by their revenue figures in USD billion by revenue as of FY 2020–2021 (period: 1 April 2020 to 31 March 2021) (Table 1.5). The above ranking of the leading global pharmaceutical companies (top-10) has been performed after extrapolating their FY 2020-2021 pharmaceutical product segment revenue and the revenue for the device segment has not been taken into the consideration for rank calculation. A brief description of the top

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25

10 biggest pharma companies of the world in 2021 is made in the following as per ascending order (smallest to largest), i.e. from Rank 1 to Rank 10 based on the pharmaceutical product segment revenue.

1.8.1 Johnson & Johnson (J&J) Johnson & Johnson is an American multinational corporation. The company was founded in the year 1886. Right now the company ranked number one as a global pharmaceutical company by its revenue. The product portfolio of J&J include: a) b) c) d) e) f)

Medical devices. Cardiovascular and metabolic disease products. Immunology products. Pulmonary hypertension. Manufacturing of pharmaceuticals. Consumer packaged goods.

The company has current headquarters in New Brunswick, New Jersey, USA, and it operates through 250 subsidiaries in over 60 countries. Across the globe, currently, the company employs around 1,25,000 employees. Some of the most wellregarded consumer brands under J&J are “Tylenol”, “Band-Aid”, “Neutrogena”, “Ibuprofen”, “Abciximab”, “Dapoxetine”, “Galantamine” and “Sinutab”.

1.8.2 Hoffmann-La Roche Roche was founded in 1896 and the company has its current headquarters in Basel, Switzerland. At present Roche has a workforce of over 95,000 across the world. Roche is at the front of “oncology”, “immunology”, “infectious diseases”, “ophthalmology”, and “neuroscience”. To take care of the future personalized healthcare need, Roche is developing its capabilities and building partnerships for ready to deliver on the next stage. The company presently has two divisions, viz. “Pharmaceuticals” and “Diagnostics” for managing its business operations across the world. The company is well regarded among the medical fraternities for controlling many reputed pharmaceutical companies of the world which includes “Genentech”, an American biotechnology company; and “Chugai Pharmaceuticals”, a Japanese Biotechnology Company; as well as “Ventana”, a pharmaceutical company based in the US. The important products and brands of Hofmann-La Roche’s Pharmaceutical are listed in Table 1.6.

1.8.3 Pfzer Pfzer is headquartered in New York City and it’s an American multinational pharmaceutical corporation. In the year 1949, the company was founded. The

26 Introduction to Pharmaceutical Marketing Management TABLE 1.6 Pharmaceutical Brands of Hofmann-La Roche

Brand Name Molecule Name

Indications

“Avastin” “Bactrim”

For certain “malignant tumours” For “sulphonamide antibacterial”

“Fuzeon”

“Bevacizumab” “Trimethoprim” / “Sulfamethoxazole” “Enfuvirtide”

For “salvage therapy of HIV-1 infection”

Source: Author’s own. TABLE 1.7 Pharmaceutical Brands of Pfzer

Brand Name Molecule Name “Lipitor” “Difucan”

“Flagyl”

Indications

“Atorvastatin”

For the prevention of cardiovascular disease in those at high risk and to treat abnormal lipid levels. “Fluconazole” For the treatment of antifungal medication used for a number of fungal infections such as: “candidiasis”, “blastomycosis”, “coccidiodomycosis”, and “cryptococcosis”. “Metronidazole” It is used either alone or with other antibiotics to treat pelvic “infammatory disease”, “endocarditis”, and “bacterial vaginosis”.

Source: Author’s own.

company is having a current employee base of around 88,500. Pfzer specializes in the development of medicines and vaccines across a wide range of medical disciplines such as: a) b) c) d) e)

Oncology Immunology Endocrinology Cardiology Neurology

In the current context, the company is working on the development, discovery, manufacturing, sales, marketing and distribution of bio-pharmaceutical products worldwide and gradually moving forward as a single focused innovative biopharmaceutical company. Pfzer became the frst pharmaceutical company in the world to successfully develop a vaccine against COVID-19 with the partnership with BioNTech. Across the world millions of people had been given the vaccine, which made a signifcant impact on the company’s fnancial performance in the FY 2020–2021. Presently the company is working through two operating divisions: “Pfzer Innovative Health (IH)” and “Pfzer Essential Health (EH)” business segments. Some of the well-regarded products and brands of Pfzer are shown in Table 1.7.

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1.8.4 Bayer In the world, Bayer ranks fourth on the list of the largest pharmaceutical companies. The company was founded in the year 1863 having headquartered in Leverkusen, Germany. At present the company is having the employee base of around 1,11,000. The company is well regarded as a developer and manufacturer of diferent products which consist of: a) b) c) d) e) f) g) h) i) j)

Consumer healthcare products. Human and veterinary pharmaceuticals. Agricultural chemicals. Seeds. Plant biotechnology products. Diagnostic imaging. General and specialty medicines. Women’s health products. Over-the-counter (OTC) drugs. Diabetes care and pesticides.

1.8.5 Novartis Novartis is a Swiss multinational pharmaceutical company founded in the year 1996. The company is headquartered in Basel, Switzerland. In the current context, the company employs around 1,26,000 people around the world. Novartis has developed, manufactured, and marketed breakthrough medicines for over 250 years and served mankind. At present the company is having vibrant presence in 155 countries across the world. Novartis mainly focuses on innovative medicines as well as generics and biosimilars. The company always remain focused in the progress it has made with its strategic priorities as an innovative pharmaceutical company. Novartis is also one of the largest pharmaceutical companies in the world ranked by its market capitalization in addition to its sales fgures. Novartis is known for manufacturing many well-known drugs which account for a good chunk of its pharmaceutical sales which are listed in Table 1.8.

1.8.6 Merck & Co. “Our scientists continue to advance our internal pipeline of promising medicines and vaccines, including in oncology, HIV, and pneumococcal disease, and, more recently, therapeutics for Covid-19. These pipeline developments provide us with increasing line-of-sight to signifcant potential growth drivers later this decade and into the next.” [MSD, 2020] Kenneth C. Frazier, Chairman and CEO of Merck

28 Introduction to Pharmaceutical Marketing Management TABLE 1.8 Pharmaceutical brands of Novartis

Brand Name Molecule Name “Clozaril”

“Voltaren”

“Tegretol”

Indications

“Clozapine”

“Clozapine” is a psychiatric medication and is the frst atypical antipsychotic. It is primarily used to treat people with “schizophrenia” and schizoafective disorders who have had an inadequate response to other antipsychotics or who have been unable to tolerate other drugs due to extrapyramidal side efects. “Diclofenac” Diclofenac, sold under the brand name “Voltaren”, is a nonsteroidal anti-infammatory drug which is used to treat pain and infammatory diseases such as gout. It is taken by mouth, rectally in a suppository, used by injection, or applied to the skin. “Carbamazepine” “Carbamazepine”, sold under the trade name “Tegretol” among others, is an anticonvulsant medication which is used primarily in the treatment of epilepsy and neuropathic pain.

Source: Author’s own

Merck & Co. is an American multinational company and it was founded in 1891. The company is headquartered in New Jersey. The company focuses on pharmaceuticals, vaccines, and animal health. Currently, Merck & Co. has around 74,000 employees worldwide. The company is well known for its contributions to diabetes and cancer care. The revenue growth of Merck & Co. is driven by a strong performance for oncology which was refecting strong growth for melanoma prescription medicine: “Keytruda”. Some of the leading pharmaceutical brands marketed by Merck & Co. are listed in Table 1.9.

1.8.7 Glaxo Smith Kline (GSK) Glaxo SmithKline is a British multinational pharmaceutical company. The company is headquartered in Brentford, London. The company was founded on 27 December 2000. Merger had taken place between Glaxo Wellcome and SmithKline Beecham. The company is often referred to as GSK. It is considered to be one of the most innovative pharmaceutical companies among the top pharmaceutical companies in the world. At present, GlaxoSmithKline employs around 1,00,000 employees across the globe. GSK mainly concentrates on the areas of pharmaceuticals, vaccines, oral healthcare, nutritional products and over-the-counter (OTC) medicines.

1.8.8 Sanof Sanof is a French multinational pharmaceutical giant and is the eighth-largest pharmaceutical company in the world with respect to its current revenue. Sanof

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TABLE 1.9 Pharmaceutical brands of Merck & Co

Brand Name

Molecule Name

“Keytruda”

“Pembrolizumab”

Indications

“Pembrolizumab sold under the brand name Keytruda, is a humanized antibody which is used in cancer immunotherapy that treats melanoma, lung cancer, head and neck cancer, Hodgkin lymphoma, stomach cancer, cervical cancer, and certain types of breast cancer. It is given by slow injection into a vein.” “Pneumovax “Pneumococcal “Pneumococcal polysaccharide vaccine known 23” polysaccharide as Pneumovax 23 is the frst pneumococcal vaccine” vaccine derived from a capsular polysaccharide, and an important landmark in medical history.” “Gardasil” “Human “Human papillomavirus vaccines (HPV) are papillomavirus vaccines that prevent infection by certain types vaccines (HPV)” of human papillomavirus.” Source: Author’s own

provides healthcare solutions to 170 countries worldwide and has three core focuses which are: a) Speciality care. b) Vaccines. c) General medicines. Looking at the future, the company has aggressive plans to strengthen its solid foundations, and continues to prioritize key growth drivers, accelerate R&D eforts, and improve operational efciencies. Sanof’s “Dupixen” brand which is indicated for the treatment of eczema is always remained as a key driver of growth. The company formulated a new business strategy which has set of a new growth phase for the existing business, with strong growth for innovative medicine and a strengthened R&D pipeline particularly for oncology, infammation, and immunology.

1.8.9 AbbVie AbbVie is a US-based publicly traded biopharmaceutical company. The company was founded in 2013. The company is headquartered in Lake Bluf, Illinois, USA. AbbVie was created in 2013, when the company separated from Abbott. Currently, the company is employing 48,000 employees worldwide in 70+ countries. AbbVie tends to drive its R&D eforts towards difcult-to-cure or non-curable diseases and disorders. AbbVie successfully acquired Allergan and the acquisition process had completed in May 2020. The main objective of the acquisition process was to strengthen the company’s position in a number of

30 Introduction to Pharmaceutical Marketing Management TABLE 1.10 Pharmaceutical brands of AbbVie

Brand Name

Molecule Name

Indications

“AndroGel”

“Testosterone gel for “Testosterone is a medication and naturally occurring steroid hormone. It is used to treat topical use” male hypogonadism, gender dysphoria, and certain types of breast cancer. It may also be used to increase athletic ability in the form of doping.” “Pancreatic enzymes, also known as pancreases “Creon” “Pancrelipase or pancrelipase and pancreatin, are Delayed-Release Capsules” commercial mixtures of amylase, lipase, and protease. They are used to treat malabsorption syndrome due to certain pancreatic problems.” “Gengraf Capsules (cyclosporine capsules, “Gengraf “Cyclosporine Capsules” capsules, USP” USP is indicated for the prophylaxis of organ rejection in kidney, liver, and heart allogeneic transplants. Cyclosporine has been used in combination with azathioprine and corticosteroids.” Source: Author’s own.

therapeutic areas including immunology, oncology and neuroscience. Based on the company’s current product portfolio and diversifed growth assets, AbbVie expects to keep up the momentum and expects further impressive growth in the coming years. The company is known for its R&D, developing and manufacturing some of the top pharmaceutical products which are listed in Table 1.10.

1.8.10 Abbott Laboratories Abbott Laboratories was established in the year 1888. The company is headquartered at Abbott Park, Illinois, USA. The key growth engine drivers of Abbot Laboratories are: a) b) c) d)

Medical devices. Diagnostics. Branded generic medicines. Nutritional products.

In the current context, around 1,07,000 are being employed by Abbott Laboratories.

1.9 Impact of CSR Activity in Pharmaceutical Sector with an Emphasis on R&D According to the International Organization for Standardization (ISO), corporate social responsibility is the management of social, economic, and/or

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environmental issues for the beneft of society. This includes human rights, environmental concerns, social inclusion, and other issues of concern. The concept of corporate social responsibility holds corporations accountable for all parties associated with their economic activities. Through ethically oriented practices, CSR should also contribute to societal goals, such as philanthropic or charitable objectives, although the efectiveness of this can be debated (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022; Nandy, M. & Pal, B., 2015a; Nandy, M. & Pal, B., 2015b; Pal, B. & Nandy, M., 2015a; Nandy, M. & Biswas, D.2015; Nandy, M. & Pal, B., 2016c; Nandy, M. & Pal, B., 2016d; Nandy, M. & Pal, B., 2016e; Nandy, M. & Pal, B., 2017f; Nandy, M. 2018a; Pal, B. & Nandy, M., 2019b; Nandy, M. 2020b; Nandy, M. 2020c; Nandy, M. 2020d; Nandy, M. 2020e; Nandy, M. 2020f; Nandy, M. 2020g; Nandy, M. 2020h; Nandy, M. 2020i; Nandy, M. 2020j; Nandy, M. 2020k; Nandy, M., 2021l; Nandy, M., 2022m; Nandy, M., 2022n; Nandy, M., 2022o; Nandy, M., 2022p; Nandy, M., 2022q; Nandy, M., 2022r; Nandy, M., 2022s; Nandy, M., 2022t; Nandy, M., 2022u; Nandy, M., 2022v). We face a number of serious problems in our society, such as poverty, disease, and environmental destruction. Public health can be adversely afected by certain economic systems. There has been extensive research on the behaviour of large corporations when it comes to solving social issues. The resources of such corporations provide them with a unique opportunity to address social issues despite the fact that they are not legally obligated to do so. Achieving CSR requires stakeholders and civil society organizations to be sensitive and cooperative. Pharmaceutical companies are responsible for making their products (medicines) available to the general public. These products have the potential to make a real diference in a person's life or death (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022). The pharmaceutical industry has adopted CSR practices that leverage social welfare for proft through CSR-specifc actions. The issue of inclusive development is common in many industries in developing countries. As part of corporate governance quality assurance, corporate social responsibility has become an integral part of the pharmaceutical industry. In the past few decades, corporate social responsibility instruments have become a signifcant infuence on corporate governance. CSR will be more efective as a governance tool if there are more CSR practices. It is essential to have a strong governance structure in order to conduct professional CSR activities. CSR activities are undertaken by pharmaceutical companies over a long period of time, not on a temporary basis (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022; Nandy, M. & Pal, B., 2015a; Nandy, M. & Pal, B., 2015b; Pal, B. & Nandy, M., 2015a; Nandy, M. & Biswas, D.2015; Nandy, M. & Pal, B., 2016c; Nandy, M. & Pal, B., 2016d; Nandy, M. & Pal, B., 2016e; Nandy, M. & Pal, B., 2017f; Nandy, M. 2018a; Pal, B. & Nandy, M., 2019b; Nandy, M. 2020b; Nandy, M. 2020c; Nandy, M. 2020d; Nandy, M. 2020e; Nandy, M. 2020f; Nandy, M. 2020g; Nandy, M. 2020h; Nandy, M. 2020i; Nandy, M. 2020j; Nandy, M. 2020k;

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Nandy, M., 2021l; Nandy, M., 2022m; Nandy, M., 2022n; Nandy, M., 2022o; Nandy, M., 2022p; Nandy, M., 2022q; Nandy, M., 2022r; Nandy, M., 2022s; Nandy, M., 2022t; Nandy, M., 2022u; Nandy, M., 2022v). In academic literature and in practice, corporate social responsibility has become an established business strategy. Therefore, it is necessary to examine CSR practices in light of their motivations. The pharmaceutical industry can gain fnancial benefts or enhance its reputation under various circumstances. It has been demonstrated in numerous studies that shareholder wealth and corporate philanthropy are closely related. In these studies, pharmaceutical companies are found to beneft their shareholders by participating in philanthropic activities (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022). Pharmaceutical companies must have good corporate governance in order to engage in such responsible behaviour. When it comes to pharmaceutical companies, CSR has also been found to be important to stakeholders. Pharmaceutical companies submit information on CSR as part of their corporate governance statements together with their fnancial reports and, in this regard, declare a positive relationship between their success and their contributions to society. The adoption of responsible social behaviour positively infuences the proftability of pharmaceutical companies in the growth markets (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022). In the growth markets, pharmaceutical companies invest substantially in research and development (R&D). In addition to enhancing new product development (NPD), this helps increase competitiveness. Pharmaceutical research and development (R&D) is an essential part of business operations that helps to improve competitiveness. However, it is also an integral part of corporate social responsibility (CSR). Research and development (R&D) not only develops newer drug products but also improves product design to improve environmental compliance (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022). Safety and environmental aspects of the new design ft well with CSR requirements upon product expiration. Pharmaceutical companies are particularly concerned with safety and environmental compliance as part of their CSR eforts and ideal operations. Assuring that products meet stringent quality standards is part of R&D's role in CSR. By making their products safer, companies can also increase their consumer base. A pharmaceutical company with a social conscience should invest in research and development to reduce toxic emissions (UKEssays, 2015; Christ, S., 2017;Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022). Pharmaceutical companies may invest in environmental research and development depending on the market structure and public policy. Research and development activities and corporate social responsibility can provide pharmaceutical companies with a competitive advantage in growth markets. In addition, these activities can beneft communities, though stakeholder expectations may difer according to the situation. Because pharmaceutical R&D is capital-intensive, it

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afects CSR in several ways. Research and development intensity generally has a positive impact on corporate social responsibility in the pharmaceutical industry (UKEssays, 2015; Christ, S., 2017; Within3, 2021; Corporatefnanceinstitute, 2022; Forbes, 2022).

1.10 Overview of the Global Pharmaceutical Industry (GPI) The market size of global pharmaceutical manufacturing was valued at USD 405.52 billion in 2020 by the reputed international market research frm and is expected to grow at a compound annual growth rate (CAGR) of 11.34% in the period 2021–2028. Recently the global pharmaceutical industry has undergone a massive transformation due to various reasons which are listed below (Grand View Research, 2022). a) b) c) d)

Emergence of new technologies. Cost-efective business process. Manufacturing approaches with high efciency. Continuous investment fow.

“Robotic technology” and “artifcial intelligence” (AI) have been incorporated for the purpose of “waste management” in the pharmaceutical manufacturing plants. Now a day “conventional open transfer manufacturing techniques” is not visible at all; this traditional manufacturing technique has been replaced by the “single-use disposable solutions” and its gaining momentum in a gradual manner (Nandy, M. 2018a; Nandy, M. 2020b; Nandy, M. 2020c; Nandy, M. 2020d; Nandy, M. 2020e; Nandy, M. 2020f; Nandy, M. 2020g; Nandy, M. 2020h; Nandy, M. 2020i; Nandy, M. 2020j; Nandy, M. 2020k; Nandy, M., 2021l; Nandy, M., 2022m; Nandy, M., 2022n; Nandy, M., 2022o; Nandy, M., 2022p; Nandy, M., 2022q; Nandy, M., 2022r; Nandy, M., 2022s; Nandy, M., 2022t; Nandy, M., 2022u; Nandy, M., 2022v). Furthermore, the paradigm shift towards state-of-the-art, smart, integrated and data-driven and paperless operations have resulted in error-free and robust production. Such ongoing developments have impacted drug manufacturing landscape in a signifcant manner and hence the global pharmaceutical market is growing exponentially (Grand View Research, 2022). Research & development (R&D), production, and distribution of medications through the robust supply chain process taking place in the International pharmaceutical industry (IPI). The international pharmaceutical industry mainly engage with discovering and developing novel drug products and healthcare solution, produces, and markets pharmaceutical products for usage as medications which needs to be administered to the patient fraternities to cure them and to ensure speedy recovery from diferent diseases and disorders from which patient fraternities have been sufering from. The main motto for providing quality healthcare delivery to people around the world is to ensure happier, healthier, and longer lives so that they

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can be included in the economic system and play a signifcant role to make this planet better (Nandy, M. 2018a; Nandy, M. 2020b; Nandy, M. 2020c; Nandy, M. 2020d; Nandy, M. 2020e; Nandy, M. 2020f; Nandy, M. 2020g; Nandy, M. 2020h; Nandy, M. 2020i; Nandy, M. 2020j; Nandy, M. 2020k; Nandy, M., 2021l; Nandy, M., 2022m; Nandy, M., 2022n; Nandy, M., 2022o; Nandy, M., 2022p; Nandy, M., 2022q; Nandy, M., 2022r; Nandy, M., 2022s; Nandy, M., 2022t; Nandy, M., 2022u; Nandy, M., 2022v). To provide quality healthcare solutions, international pharmaceutical companies try to vaccinate them or alleviate a symptom. Multinational (MNCs) pharmaceutical companies deal with both generic or brand medications and medical devices (SBS and Company LLP., 2021) and market the same across the globe. Marketing drugs in an international context comes under the purview of laws and regulations that govern the patenting, testing, safety, efcacy, and marketing of drugs as per the applicable laws which are country specifc and difers from country to country. To satisfy the worldwide healthcare need, foreign pharmaceutical companies provide lots of emphasis on the following areas: a) b) c) d) e)

Research & Development (R&D). Innovation. Zero Defect Manufacturing. Faster delivery of drugs or healthcare solutions. Patient delight by taking away the pain of sufering.

Pharmaceutical companies operating globally also perform certain endeavours for the beneft of people at large. a) Dealing in generic as well as branded formulations. b) With the help R&D they try to synthesize new molecules, i.e. “New Molecular Entities (NMEs)” and “New Chemical Entities (NCEs)”. c) Developing systematic and scientifc approach in production function. d) Trying to accomplish manufacturing process in a sophisticated and state-ofthe-art manner to bring innovation in business process. So from the above discussion, we can understand that the international pharmaceutical industry mainly concentrates more on the R&D and innovation of drugs, production, and marketing of novel healthcare solutions for treating different unknown diseases and disorders. Sometimes the investment in the pharmaceutical R&D space takes place through the route of foreign direct investment (FDI) also, and the money fows from the home country (country of origin) to the country of destination where the R&D activities are carried out for example the US to India. Thus, the crucial role of international pharmaceutical industry is indeed inarguable. North America in the global context is mainly considered the largest revenue generator by marketing drugs globally. It’s because

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of the leading role of the US pharmaceutical industry which always takes care of proactive and preventive measures for providing quality healthcare solutions to the needy patient fraternities through the route of R&D and innovation in pharmaceutical space. However, like many other industries, the Chinese pharmaceutical sector has also shown the signifcant growth in last decade (Bartleby Research, 2021; Nandy, M. 2018a; Nandy, M. 2020b; Nandy, M. 2020c; Nandy, M. 2020d; Nandy, M. 2020e; Nandy, M. 2020f; Nandy, M. 2020g; Nandy, M. 2020h; Nandy, M. 2020i; Nandy, M. 2020j; Nandy, M. 2020k; Nandy, M., 2021l; Nandy, M., 2022m; Nandy, M., 2022n; Nandy, M., 2022o; Nandy, M., 2022p; Nandy, M., 2022q; Nandy, M., 2022r; Nandy, M., 2022s; Nandy, M., 2022t; Nandy, M., 2022u; Nandy, M., 2022v).

1.11 Contemporary Pharmaceutical Marketing Practices in Growth Markets Marketing pharmaceutical products is one of the most challenging tasks faced by most global pharmaceutical companies. As a result of the highly regulated nature of the pharmaceutical industry, litigation attorneys are known to seek out false claims. In growth markets, pharmaceutical marketers have the fexibility to choose from a number of pharmaceutical marketing strategies to encourage physicians to prescribe medicines. There are 11 strategies that pharmaceutical marketers can use in growth markets (Linchpinseo, 2022).

1.11.1 Presence of Social Media In order to attract prospects’ attention, pharmaceutical marketers need to provide relevant content. Engaging content is what drives engagement, so don’t over promote and deliver content that viewers will want to watch. In the newer marketing strategies for pharmaceutical companies in the growth markets, social media platforms are often used to attract attention online. It is likely that physicians will check it out since they use social media as a marketing tool. It is important that patients also receive information about treatments online, so pharmaceutical marketers should target both groups (doctors as well as patients) with their social media campaigns (Linchpinseo, 2022) Example: Pharmaceutical companies are no longer just playing the numbers game on social media. Followers, likes, and shares are good starting points, but numbers alone cannot determine whether business goals have been met. Pharmaceutical companies such as Boehringer Ingelheim, AbbVie, GlaxoSmithKline, Pfzer, and Novo Nordisk constantly fgure out how social media can help them reach the right infuencers and key opinion leaders (KOLs), drive trafc to their websites, or change perceptions (Bulik, B.S., 2020).

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1.11.2 Building Relationships Good relationships with physicians are essential for a pharmaceutical marketer to be successful. Prescribing pharmaceutical products is more likely to occur when sales representatives are known and trusted by physicians. Physicians are also responsible for taking care of their patients (Linchpinseo, 2022) Example: Following the outbreak of the COVID-19 pandemic, Beximco Pharmaceuticals, a Bangladeshi generic pharmaceutical and Active Pharmaceutical Ingredient (API) manufacturer, donated personal protective equipment (PPE) to healthcare professionals across the country. By 27 March 2020, 48 cases of COVID-19 had been reported in Bangladesh, and fve people had died from the disease. It is also a good opportunity to build relationships with healthcare professionals during the crisis period (Manufacturingchemist, 2020).

1.11.3 Free Samples Distribution Physicians are more likely to prescribe a product if they receive free samples. Patients can receive these directly from the pharmaceutical company, allowing them to try the product for free without risking anything. Traditional pharmaceutical marketing campaigns are an efective way to reach a large audience. In many healthcare networks, taking samples is not permitted, so this strategy may be ethically questionable. The pharmaceutical company's goodwill should not be compromised by doing this irresponsibly despite its efectiveness (Linchpinseo, 2022). Example: A medical representative (MR) represents the company and its products, which is one of the key components of pharmaceutical sales. The sale of a product can be negatively impacted by any problems a medical representative faces. Pharmaceutical companies and the market rely heavily on medical representatives. In the growth market economy, pharmaceutical companies are giving away free physician samples by marking them “Not For Sale” on the sample packaging. These companies include Sun, Abbott, Cipla, Mankind, Alkem, Lupin, Intas, Torrent, Macleods, and Dr Reddy’s Laboratories. Distributing free samples is one of the most efective methods of promoting new drug products by these pharmaceutical companies.

1.11.4 Utilization of Technology Early adoption of new technologies is common among physicians. Healthcare requires constant updates in the way people do business and how they use technology. Several years ago, physicians were the frst to use personal digital

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assistants (PDAs), then smartphones and tablets. As technology advances, many pharmaceutical representatives have decided there are other ways to interact with doctors besides visiting them in person (Linchpinseo, 2022). Example: As evidenced by new launches, the Indian pharmaceutical industry has begun to switch to new technology. Sun Pharma launched RespiTrack in the year 2022 to help patients stay informed about asthma and adhere to treatment regimens. In India, several companies, including Abbott Healthcare, want to introduce tech innovations that can be replicated globally. A new app called Knowledge Genie ofers heart and liver health information, as well as exercises for vertigo. Augmented and virtual reality can be used by doctors and patients to interact with them (Mopharma, 2022).

1.11.5 Presence of Quality Website Content The pharmaceutical marketer’s website should provide all the information patients and prescribers need. The drug should be described in detail about its benefts, dosages, clinical trials, safety, risks, and other relevant information. Pharmaceutical companies should also design their websites so that visitors can easily enter their email addresses as part of their customer database management. User-friendly websites are primarily used to communicate with customers. Having high-quality and enriched content on pharmaceutical company websites can provide immense benefts, not only to users but also to Google rankings on a global scale (Linchpinseo, 2022). Example: Name of the pharmaceutical company: Bristol-Myers Squibb Website: BMS.com The stories are what make the show. BMS’ Life & Science magazine publishing model is combined with a user experience that ofers something for everyone with edge-to-edge patient imagery and left-rail navigation for desktop. Using role-based information architecture, users can easily fnd the information they need (MMM Online, 2022).

1.11.6 Guerrilla Marketing: Breaks the Rules It is always a good idea to think creatively about pharmaceutical marketing tactics. Guerrilla marketing uses unconventional methods. Pharmaceutical marketers can target their competitors in unexpected ways. Thus, many pharmaceutical companies see this as a great way to diferentiate themselves from their competitors. Moreover, it is a riskier form of pharmaceutical marketing since it challenges existing norms (Linchpinseo, 2022).

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1.11.7 Emotional Connect with the Consumers A pharmaceutical marketing company can reach new clients by creating an emotional connection with them. In antidepressant drug campaigns, pharmaceutical companies might consider using mobile applications. In spite of the fact that pharmaceutical companies might have to do some business-to-consumer (B2C) outreach, this will allow them to reach a wider audience. In order to create experiences that connect with customers emotionally, it is important to adhere to an ethical marketing baseline (Linchpinseo, 2022). Example: Amag Pharmaceuticals Sexual Health Chatbot Campaign Women were invited to learn about Intrarosa – a product designed to treat pain during intercourse – through this initiative aimed at easing the conversation about women's sexual health. In order to facilitate women's access to useful information, they wanted to create a safe space where they could remain anonymous while getting information. To begin learning about their condition, women can choose from three diferent characters they identify with, as it's a "choose your own path" system (Mediatoolkit, 2022).

1.11.8 Engage Physicians through Online Communities One of the most overlooked strategies for reaching physicians is through online communities. Technology makes it easier for physicians to connect with other professionals because they are early adopters. Through these communities, physicians can be contacted directly. Educating physicians and patients about what they need to hear is a one-way pharmaceutical marketer can become more aware of their needs (Linchpinseo, 2022). Example: Emcure Pharmaceutical’s existing digital foundation has played a signifcant role in this disruptive transition. After experiencing the scale and reach of digital technology during the pandemic, the company believes doctors' mindsets have changed. There used to be a limit of 1,000 attendees at most conferences and events. The digital revolution has enabled events to attract more than 10,000 attendees, some from outside the country. In order to address the shift towards digitization, Emcure’s sales representatives were trained to use virtual tools in creative and unique ways. Furthermore, Emcure has established a platform on which younger doctors can showcase recent case studies and receive advice from stalwarts in the doctor community. As part of the “EmGurukul Program”, Emcure provides mentorship to younger doctors by experienced doctors. Throughout the country, Emcure trains nurses and paramedics through its “Emvidya Program”. In addition, the company launched a series of online chat shows called “Uncondition Yourself ” to educate doctors and patients about critical conditions. This show features doctors and patients discussing diseases,

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patient journeys, stigmas, and taboos related to these conditions (Nautiyal, S., 2021).

1.11.9 Detailing through Visual Aids for Physicians The visual aid presentation would be benefcial to physicians in a clinical setting. In order to beneft pharmaceutical companies, pharmaceutical companies should present educational posters to physicians’ chambers where patients are treated. When doctor fraternities see how pharmaceutical companies can provide therapeutic beneft to them with drugs to treat particular diseases or disorders, they would like to connect with the pharmaceutical companies (Linchpinseo, 2022). The following are the parts of the visual aid in detail. i. ii. iii. iv. v.

Tag line. Brand name. Composition or molecules with dosage form. Description of molecules. Indication.

A brief description of the above-mentioned visual-aid parts is discussed in Table 1.11. TABLE 1.11 Diferent Parts of Visual Aid

Sl.No. Visual Aid Part 1 2 3

4

5

Tag Line

Description

The pharmaceutical marketer can select a tagline that indicates the best possible uses for the company’s products. It should be simple and easy to pronounce. Brand Name The brand name of the pharmaceutical company’s product should be in a suitable font and size. The text should be highly highlighted, but not overly large. Composition or Under the brand name of the company, the pharmaceutical molecules with marketer should add company’s product's accurate dosage form composition. It is also possible to choose the purpose of research and development (R&D) based products if their composition is lengthy and long. Description of Each molecule is described in a useful manner. The molecules length is not too long, nor is it too short. However, each molecule should be described separately and in a chronological order one after another. Descriptions of molecules may use pharmacology, pharmacokinetics, pharmacodynamics and pharmacostatics, etc. Indication At least fve to six indications should be included in your brand or composition.

Source: Author’s own.

40 Introduction to Pharmaceutical Marketing Management

Example:

IMAGE 1.14

Visual aid of Ketakonazole soap, Brand Name: KZ Soap. Source: Author’s own.

Information about KZ Soap as per the detailing story in the visual aid. ●

●

●

Kz soap is an anti-fungal soap which is used to treat a variety of infections caused by fungi. Key Ingredients: Ketoconazole Key Benefts: i. Ketoconazole inhibits the synthesis of ergosterol in fungal cells, a compound that forms the membranes of fungal cells. Its structure is similar to imidazole. ii. Infections of the skin caused by fungi can be treated with it. Infections such as athlete’s foot, thrush, and ringworm are treated by killing the fungus that causes them.

1.11.10 Participation in Conferences and Academic Events It is always a desire for physicians to learn more about their felds and domains of expertise. Attending a professional conference is one way to reach these individuals. Getting direct feedback and insight from physicians is an excellent opportunity for pharmaceutical marketers. Pharmaceutical companies can tailor their marketing messages to appeal to a wide audience of physicians with valuable feedback, comments, and suggestions about a particular molecule or drug. When physicians don’t pay enough attention to a drug, pharmaceutical marketing strategies may be useful. Pharmaceutical companies might be using the wrong marketing techniques and therefore aren't successful because of their use of the wrong marketing techniques. It is a good idea to switch

Introduction to Pharmaceutical Marketing Management

41

up pharmaceutical marketing tactics periodically. If pharmaceutical companies rely too much on meeting with doctors, doctors may not have enough time to speak with their sales representatives. Social media or email newsletters might be a better way for pharmaceutical marketing companies to reach out to them (Linchpinseo, 2022). Example:

IMAGE 1.15

Torrent Pharma has participated in Dermacon 2020 (National Conference of Indian Association of Dermatologists,Venereologists and Leprologists) and has arranged a panel discussion on the topic entitled “Medico Legal Mistakes by Doctors” during the conference. Image Source: Author’s own.

IMAGE 1.16

Eminent dermatologist of India Dr Koushik Lahiri is expressing his opinion during the panel discussion. Image Source: Author’s own.

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Introduction to Pharmaceutical Marketing Management

1.11.11 Search Engine Optimization (SEO) The pharmaceutical industry may be limiting its reach in the virtual world if it does not use search engine optimization (SEO) in growth markets, allowing its direct core competitors to expand their customer base by using Google to search for answers to their various queries. In search engine optimization, the goal is to provide quality, useful content to help customers fnd a company’s specifc drug product or healthcare service, solve their problems, or answer their questions (Linchpinseo, 2022). Example: Search engines are used by health-conscious patient fraternities. Potential patients often search online for pharmaceuticals and non-pharmaceuticals related to their health conditions (e.g., symptoms and diagnoses). A well-optimized website can reach these potential patients with content that answers their questions before they consider contacting a doctor. Pharmaceutical companies like Pfzer, GSK, Sun, Alkem, Cipla, and Novartis use search engine optimization (SEO) as a part of their digital marketing strategy (Financial Express, 2021; Grady Matter, 2019; Pharmadigicoach, 2020).

References Applbaum, K. (2006). “Pharmaceutical Marketing and the Invention of the Medical Consumer”, Plos Medicine. https://doi.org/10.1371/journal.pmed.0030189. Bartleby Research. (2021). “The-Pharmaceutical and Medicine Manufacturing Industry”, available at: https://www.bartleby.com/essay/The-Pharmaceutical-And -Medicine-Manufacturing-Industry-FKFLSCA4JP9LX. Bulik, B.S. (2020). “The Top Pharma Companies in Social Media”, available at: https:// www.f iercepharma.com /special-report/top -pharma-companies -social-media (accessed 27th August 2022). Chartered Institute of Marketing. (2021). “Marketing and the 7Ps”, available at: https:// www.thensmc.com/sites/default/fles/CIM%207Ps%20Resource.PDF. Christ, S. (2017). “The Benefts of the Pharmaceutical Industry”, available at: https:// bizfuent.com/list-6710523-benefts-pharmaceutical-industry.html (accessed 31st August 2022). Corporate Finance Institute. (2022). “Corporate Social Responsibility (CSR)”, available at: https://corporatefnanceinstitute.com/resources/knowledge/other/corporate-social -responsibility-csr/ (accessed 31st August 2022). Devaney, E. (2021). “Say ‘Yes’ to Drugs? The History of Pharmaceutical Marketing”, available at: https://blog.hubspot.com/marketing/pharmaceutical-marketing-history (accessed 31st August 2022). Financial Express. (2021). “Pharma Cos, Doctors Embrace Digital Transformation to Reconnect With Each Other Virtually during Pandemic”, available at: https://www .fnancialexpress.com/healthcare/pharma-healthcare/pharma-cos-doctors-embrace -digital-transformation-to-reconnect-with-each-other-virtually-during-pandemic /2350480/ (accessed 31st August 2022). Forbes. (2022). “The Business Benefts of Corporate Social Responsibility Impact Assessments”, available at: https://www.forbes.com/sites/forbestechcouncil/2022/01

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/24/the-business-benefts-of-corporate-social-responsibility-impact-assessments/?sh =605719933209 (accessed 31st August 2022). Ghodke, K. (2016). “Pharma Marketing”, available at: https://www.slideshare.net/ ZakiSuddle/pharmaceutical-marketing-management. Grady Matter. (2019). “The Questionable Marketing Practices of Pharmaceutical Companies”, available at: https://medium.com/@14ideas/the-questionable -marketing-practices-of-pharmaceutical-companies-5524fdbcad9b. Grandview Research. (2022). “Pharmaceutical Manufacturing Market Size, Share & Trends Analysis Report by Molecule Type, by Drug Development Type, by Formulation, by Routes of Administration, by Sales Channel, by Age Group, and Segment Forecasts, 2021–2028”, available at: https://www.grandviewresearch.com/industry-analysis/ pharmaceutical-manufacturing-market#:~:text=The%20global%20pharmaceutical %20manufacturing%20market%20size%20was%20estimated%20at%20USD,USD %20486.62%20billion%20in%202021 (accessed 28th January 2022). Healthcare Weekly. (2021).“Pharma Marketing: How to Successfully Market in the Pharma Industry?”, available at: https://healthcareweekly.com/pharma-marketing/. Levy, R. (1994). “The Role and Value of Pharmaceutical Marketing”, Archives of Family Medicine, Vol. 3, No. 4, pp. 327–332. https://doi.org/10.1001/archfami.3.4.327. Linchpinseo. (2022). “Guide to Pharmaceutical Marketing and Tactics”, available at: https://linchpinseo.com/pharmaceutical-marketing-strategies-and-tactics/ (accessed 28th August 2022). Manufacturingchemist. (2020).“Beximco Pharma Donates PPE for the COVID-19 Fight”, available at: https://www.manufacturingchemist.com/news/article_page/Beximco_ Pharma_donates_PPE_for_the_COVID-19_fght/163677 (accessed 29th August 2022). Math, S.B., Manjunatha, N., Kumar, C.N., Gowda, G.S., Philip, S., Enara, A., Gowda, M. (2019). “Sale of Medicines by Registered Medical Practitioners at their Clinics: Legal and Ethical Issues”, Indian Journal of Psychiatry, Vol. 61, No. Suppl 4, pp. S786– S790. https://doi.org/10.4103/psychiatry.IndianJPsychiatry_89_19. Mediatoolkit. (2022). “10 Campaigns that Reinvented Pharma Marketing”, available at: https://www.mediatoolkit.com/blog/pharma-marketing-campaigns/ (accessed 31st August 2022). Medical Dialogues. (2022). “Writing Prescription Guidelines”, available at: https:// medicaldialogues.in/news/education/neet-pg-2022-counselling-rescheduled-98238 ?infnitescroll=1. MMM Online. (2022). “6 Corporate Pharma Sites that Ofer Strong User Experiences”, available at: https://www.mmm-online.com/home/channel/campaigns/6-corporate -pharma-sites-that-ofer-strong-user-experiences/ (accessed 31st August 2022). Mopharma. (2022). “Digital Age – A Boon for Pharma Digital Marketing in Mumbai, 2022”, available at: https://mopharma.com/blogs/pharma-digital-marketing-12 .html (accessed 31st August 2022). MSD. (2020). “4Q and Full-Year 2020 Financial Results”, available at: https://www.msd .com/wp-content/uploads/sites/9/2021/02/Sales-Earnings-4Q-2020-Infographic -Key-Growth-MSD.pdf (accessed 1st November 2022). Nandini, G. (2021). “Functions of Marketing”, available at: https://www .economicsdiscussion.net/marketing-2/functions-of-marketing/31596. Nandy, A. (2021). “World’s Five Most Afected Countries by COVID-19: A Comparative Study”, International Journal of Management, Sciences, Innovation, and Technology, Vol. 2, No. 2, pp. 10–15, available at: https://ijmsit.com/volume-2-issue-2. Nandy, M. & Biswas, D. (2015). “CSR and Sustainable Development: Indian Context”, in Financial Sector Reforms in Developing Economies UGC Sponsored International Conference,

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Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 613–618. Rohini Nandan, Kolkata, West Bengal. ISBN: 978-81-928721-1-7. Nandy, M. & Pal, B. (2015a). “Pharmaceutical Marketing & Product Promotion: A Paradigm Shift in Indian Pharmaceutical Industry (IPI)”, Adhyan - A Journal of Management Science, Vol. 5 No. 2, pp. 27–40. https://doi.org/10.21567/adhyayan.v5i2 .8817. Nandy, M. & Pal, B. (2015b). “Foreign Direct Investment (FDI) in Indian Pharmaceutical Industries : An Overview”, in Impact of Foreign Direct Investment on Indian Economy UGC Sponsored National Seminar, Department of Commerce, Vivekananda Satavarshiki Mahavidyalaya, Paschim Medinipur, Vivekananda Satavarshiki Mahavidyalaya, West Bengal, pp. 145–158. ISBN: 978-81931-497-1-3. Nandy, M. & Pal, B. (2016c). “Are Research & Development (R&D) Activities Dynamic in Indian Pharmaceutical Industry?: An Empirical Study, in Dynamic Evolution of Management Paradigm UGC Sponsored International Seminar, pp.  250–269. Publisher: Department of Business Administration, Vidyasagar University, Midnapore, West Bengal, India [ISBN: 978-93-5265-325-6]. Nandy, M. & Pal, B. (2016d). “Trade Openness, FDI in Pharmaceutical Industry and Economic Growth: A Time Series Analysis”, Presidency Journal of Management Thought & Research, Vol. VI, No. 1, pp. 26–33. Nandy, M. & Pal, B. (2016e). “Role of Digital Banking in India’s Financial Inclusion: An Empirical Study”, in Financial Inclusion and Inclusive Growth UGC Sponsored International Conference, Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 247–263. ISBN: 978-93-5258-522-9. Nandy, M. & Pal, B. (2017f ). “Does Research & Development (R&D) Activities Impact Financial Performance? An Empirical Study Based on Selected Multinational (MNC) Pharmaceutical Companies Operating in India”, Presidency Journal of Management Thought & Research, Vol. VII, No. 2, pp. 39–63. Nandy, M. (2018a). “Impact of Research & Development (R&D) Activities of Listed Indian Pharmaceutical Companies on Their Financial Performance: An Empirical Study”, available at: https://shodhganga.infibnet.ac.in/handle/10603/302397 (accessed 9th December 2022). Nandy, M. (2020b). “Clinical Trials to Combat Covid-19: Case Based Approach of a NSE Listed Indian Pharmaceutical Company”, Adhyan - A Journal of Management Science, Vol. 10, No. 1, pp. 1–7. Nandy, M. (2020c). “Do R&D and Marketing Infuence Return on Equity in the Indian Pharmaceutical Industry? An Empirical Study Based on DuPont Analysis”, Presidency Journal of Management Thought & Research, Vol. 10, No. 2, pp. 1–19. Nandy, M. (2020d). “R&D Trend Analysis through ARIMA Model to Combat Covid-19: Empirical Evidence from NSE Listed Pharmaceutical Company”, SUMEDHA-Journal of Management,Vol. 9 No. 1, pp 1–19. https://doi.org/10.46454/sumedha/9.1.2020.1. Nandy, M. (2020e). Pharmaceutical Marketing – An Applied Approach. Pacifc Books International, New Delhi, First Edition 2020, pp. 1–203. ISBN: 978-93-8853655-4, available at: https://www.amazon.in/Pharmaceutical-Marketing-Applied -Approach - Crown /dp/938853655X /ref =sr _1 _ 2 ?cr id =M A Z2HFQM9XVS &keywords=mithun+nandy&qid=1643701964&s=books&sprefx=mithun+nandy %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders in Indian Context, Sustainable Development and Informatics. Lincoln Research and

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Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3 ?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/dp /9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid =1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on ‘Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)’, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2 Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020-0067.

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Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9 December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1 Netmets. (2021). “Augmentin 625 DUO Tablet 10’S”, available at: https://www.netmeds .com/prescriptions/augmentin-duo-625mg-tablet-10-s. Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Pharma News Intelligence. (2022). “Fundamentals of the Pharmaceutical Supply Chain”, available at: https://pharmanewsintel.com/news/fundamentals-of-the -pharmaceutical-supply-chain (accessed 25th August 2022). Pharmadigicoach. (2020). “Best of Pharmaceutical Marketing in 2020”, available at: https://www.pharmadigicoach.com/pharmaceutical-marketing/. Roche. (2022). “Increasing Disease Awareness to Improve Access to Healthcare”, available at: https://www.roche.com/about/strategy/access-to-healthcare/awareness (accessed 30th August 2022). SBS and Company LLP. (2021). “Pharmaceutical Industry - For the Journey that is Life”, available at: https://www.sbsandco.com/images/documents/PHARMACEUTICAL -INDUSTRY-Audit-Sandeep-Das.pdf. Seminar, pp. 250–269. Department of Business Administration, Vidyasagar University, Midnapore, West Bengal, India. ISBN: 978-93-5265-325-6. Shanmugapriya, G. & Sethuraman, R. (2014). “Consumers’ Satisfaction towards Hamam Soap in Thanjavur Town”, International Journal of Engineering and Management Sciences, Vol. 5, No. 2, pp. 122–127. http://www.scienceandnature.org/IJEMS/IJEMS -Vol5(2)-Apr2014/IJEMS%20Vol5(2)-10.pdf. Sharma, U.R. (2012). “Pharmacuetical Marketing Management. Nirali Prakashan, India”, ISBN: 978-93-81962-88-6, available at: https://www.researchgate.net/ publication/301228655_Pharmacuetical_Marketing_Management.

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Statista. (2021). “Global Pharmaceutical Industry-Statistics & Facts”, available at: https:// www.statista.com/topics/1764/global-pharmaceutical-industry/#dossierKeyfgures. UKEssays. (2015). “A Literature Review on Corporate Social Responsibility”, available at: https://www.ukessays.com/essays/management/a-literature-review-on-corporate -social-responsibility-management-essay.php (accessed 31st August 2022). Wikipedia. (2022). “Medical Prescription”, available at: https://en.wikipedia.org/wiki/ Medical_prescription#:~:text=A%20prescription%2C%20often%20abbreviated%20 %E2%84%9E,drug%20for%20a%20specifc%20patient. Within3. (2021). “The Role of Research and Development in the Pharmaceutical Industry”, available at: https://within3.com/blog/research-development -pharmaceutical-industry (accessed 31st August 2022).

2 DYNAMICS OF PHARMACEUTICAL MARKETING

2.1 Structure of Global Pharmaceutical Industry (GPI) In a global context, pharmaceutical companies target a specifc segment or a group of segments and then design and decide their product portfolio accordingly in order to serve the patient fraternities for the treatment of various diseases and disorders (Figure 2.1). The global pharmaceutical industry (GPI) attained a value of approximately $1,217.1 billion in 2019, which represents a signifcant increase at a compound annual growth rate (CAGR) of 6.7% over 2015. GPI declined by 0.6% from $1,217.1 billion in 2019 to $1,209.6 billion in 2020. As a consequence of lockdown and social distancing norms imposed by several countries across the globe as well as economic slowdown across countries caused by the COVID-19 outbreak caused by the emergence of coronavirus, the GPI recovered and grew at an 8.5% CAGR from 2021, and is projected to reach $1,738.2 billion in 2023. The Global Productivity Index (GPI) is projected to reach $2,050.9 billion in 2025 and $3,206.3 billion in 2030 (The Business Research Company, 2020). The patient consumes tablets, capsules, injectables, syrups, gel, paste, powder, etc., directly in both chronic and acute treatment areas. There are several chronic therapy areas, including cardiovascular, anti-diabetic, gastrointestinal, and neurological. Anti-infection, respiratory, pain management, and gynaecology represent instances of acute category drugs instead. Inputs/ingredients used in the manufacture of branded and generic drugs include active pharmaceutical ingredients (APIs) and bulk drugs. After a patent expires, the product is manufactured by a diferent company and it falls under the category of generic drugs. Research, Development, and Manufacturing Services (CRAMS: Contract Research and Manufacturing Services) are considered an outsourced service that ofers research and development (R&D) services and drug product manufacturing services at a DOI: 10.4324/9781003313168-2

Dynamics of Pharmaceutical Marketing

49

Global Pharmaceutical Industry (IPI)

Active Pharmaceutical Ingredients/ Bulk Drugs

Branded FIGURE 2.1

Generics

Formulations

Chronic

Acute

Structure of global pharmaceutical industry (GPI). Source:Author’s Own.

lower cost (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). By analyzing the overall structure of the global pharmaceutical industry, we can see that it is divided into multiple segments or structures. There are two basic segments of the GPI: bulk drugs and formulations. An overview of the global pharmaceutical industry is provided in the following table (Table 2.1).

2.2 The History of Indian Pharmaceutical Marketing The predecessor of Bengal Chemicals & Pharmaceutical Works Ltd. (BCPW) is Bengal Chemicals & Pharmaceuticals Ltd. (BCPL). To create awareness about becoming self-sufcient in Indian minds, quality pharmaceuticals, chemicals, and home products were manufactured with indigenous technology. Over the course of its initial venture in the drug and pharmaceutical industry, the company gradually expanded its product range. The company also sold perfumeries, cosmetics, toiletries, hospital surgical equipment, and fre extinguishers in addition to chemicals and pharmaceuticals. A technological and quality leadership position was maintained by the company before 1950. In the 1960s, the company’s technological leadership declined, and its fnancial health declined in 1970. In December 1980, the company was nationalized (Department of Pharmaceuticals, Government of India, 2022). The pharmaceutical company concept has been introduced in India with the establishment of Bengal Chemicals & Pharmaceuticals Ltd. (BCPL), formerly Bengal Chemicals & Pharmaceutical Works Ltd. (BCPW) (Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d). The following is a brief discussion of how pharmaceutical marketing has evolved in India (Figure 2.2).

“Bulk Drugs”

“Active Pharmaceutical Ingredients (API)” “Generic Drug”

Branded Drug

1

2

4

3

Elements of Global Pharmaceutical Industry (GPI)

Sl. No.

Bulk drugs are the “active pharmaceutical ingredients (APIs)” which have medicinal properties. APIs are utilized to manufacture formulations that diferent multinational pharmaceutical companies manufacture and market the same based on the objectives of the global pharmaceutical companies (Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d). “Active pharmaceutical ingredient (API)” is the basic drug with the pharmaceutical properties. At present, global pharmaceutical manufactures produce a signifcant number of bulk drugs that belong to multiple therapeutic groups for treating diferent diseases and disorders. The production of bulk drug and its exports play a crucial role for diferent foreign pharmaceutical companies (Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d). According to the U.S. Food and Drug Administration (USFDA) “a generic drug is basically a medication designed in the same manner like marketed brand-name drug having dosage form, safety, strength, route of administration, quality, performance characteristics which is used by the patient fraternities for recovery of diferent diseases and disorders”. These particular similarities help to reveal bio-equivalence, which means that a generic medicine creates impact in the same way and provides the same clinical beneft to the needy patients as its counterpart brand-name version. In other words, it can be addressed that a generic medicine is an equal substitute for its brand-name counterpart. Basically, generic drug does not carry the brand name. A “generic drug” contains the similar “active pharmaceutical ingredients (API)” as the exact brand-name formulation as its original format. As far as the pricing is concerned, a generic drug which is chemically equivalent is having lower-cost version of a brand-name drug, in most of the cases the cost of generic drug is 30–80% less than the branded drug available in the global market place (Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d). Branded Drug is basically a drug that has a trade name or brand name and is protected by a patent. The patent is provided for the innovative drug which is the outcome of research and development (R&D) activities. The innovative drug can be produced and sold only by the global pharmaceutical company holding the patent and when the patent protection for a brand-name drug expires, generic versions of the drug can be ofered for sale if the United States Food and Drug Administration (USFDA) provide the permission. A brand-name drug and its generic version must carry the same active pharmaceutical ingredient (API), dosage, safety, strength, usage directions, quality, manufacturing date, expiry date, and price in the form of maximum retail price (MRP). The cost of the branded drug is 30-80% more in comparison to the generic drug (Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d).

Explanation

TABLE 2.1 Elements of Global Pharmaceutical Industry (GPI)

50 Dynamics of Pharmaceutical Marketing

Chronic Disease

Acute Disease

6

7

Source: Author’s own.

Formulations

5

a. b. c. d.

Ant infections Respiratory Pain Gynaecology

a) Cardiovascular. b) Anti-diabetes. c) Gastro-intestine. d) Neurological. In medicine, an acute disease is def ned as a condition that takes place for a short period of time, develops quickly, and is accompanied by certain symptoms. Symptoms and signs of acute disease usually develop relatively suddenly and are usually very intense. Examples of Acute Diseases are:

Example: Bristol-Myers Squibb, an American multinational pharmaceutical company based in New York City, markets the medication under the brand name “Glucophage” for the treatment of type 2 diabetes, particularly in obese patients. The f rst commercially available form of Metformin marketed in the United States was “Glucophage”, originally manufactured by Bristol-Myers Squibb under licence in 1995. A number of countries are now ofering generic versions following the expiration of intellectual property rights (IPR). “Metformin” has risen to the top of the anti-diabetic drug list of all prescribed drugs. All of us consume the drug in a form known as the Finished Dosage or Formulation. There are typically two parts of a drug dosage form: the active pharmaceutical ingredient (API), which is the actual drug, as well as the excipient, which is the tablet itself, or the liquid in which the API is suspended, with another masking, stabilizing, and binding agents/material that is pharmaceutically inert. Pharmaceutical formulations consist of the f nal product of the pharmaceutical manufacturing process, which can take the form of tablets, capsules, injections, and syrups, and can be administered directly to the patient or end-user. Formulations can be solid, semisolid, or liquid formulation. In India, formulations contribute a signifcant impact on the total Indian pharmaceutical drug exports. The formulation growth rate has managed to sustain the overall growth rate of the Indian pharmaceutical industry (IPI) in subsequent preceding years. Formulations are further classifed into Chronic and Acute Diseases (Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d). According to the US Center for National Health Services, chronic disease is a long-term condition that lasts for three months or more. Vaccines and medication can’t cure chronic diseases, and they don’t just disappear. These are some examples of chronic diseases which are listed below:

Dynamics of Pharmaceutical Marketing 51

52 Dynamics of Pharmaceutical Marketing

• Market share domination by foreign companies

PHASE 1 • Relative absances of organized Indian companies -1970

• Indian Patent Act -1970 • Drug Prices capped PHASE 2 • Local companies begin to make an impact -1980 • Process development • Production infrastructure creation PHASE 3 • Export initiatives -1990 • Rapid expansion of domestic market • International market development

PHASE 4 • Research orientation -2000

• New IP law • Discovery Research

PHASE 5 • Convergence -2010

FIGURE 2.2

Evolution of the Indian pharmaceutical industry. Source: Author’s Own.

From Figure 2.2, we can fnd the evolution of the Indian pharmaceutical industry (IPI). It was initially dominated by multinational corporations in the Indian pharmaceutical industry. There were very few Indian companies in the Indian drug and pharmaceutical market (Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d). During the 1970s, the government gained control over the country’s pharmaceutical industry with the introduction of the Indian Patent Act. Recent years have seen Indian pharmaceutical companies penetrate the pharmaceutical market by importing raw materials or active pharmaceutical ingredients from various countries around the world. Several parameters were emphasized in India’s pharmaceutical industry after 1980. In addition to manufacturing and marketing healthcare solutions, it also sold a variety of drugs (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). ● ● ●

Processes associated with the development of drug product. Infrastructure, production, and logistics. Initiatives to promote exports.

These are the phases during which the development process takes place. Growth in the pharmaceutical market started in 1990, along with the development of the international market (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r,

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2022s, 2022t, 2022u, 2022v). In 1990, the IPI began investing in research and development. It contributed signifcantly to the feld of convergence, research and innovation, and new IP laws. With the introduction of the new Intellectual Property Law, Discovery Research, and Convergence, IPI began to focus on these areas (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

2.3 The Profle of Pharmaceutical Companies in Emerging Markets (Indian Pharmaceutical Market) A 1.5 trillion dollar market is expected in the Indian pharmaceutical market (IPM) by 2023. The Indian pharmaceutical industry (IPI) occupies a prominent position in the global pharmaceutical industry. India exports approximately 20% of generic drugs. Furthermore, it supplies more than half the world’s vaccine demand as well as 40% of the generic product demand in the US. India is home to several state-of-the-art pharmaceutical manufacturing hubs, including Sikkim, Kolkata, Ahmedabad, Hyderabad, Mumbai, Bangalore, and Visakhapatnam (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). During the 1960s, the Indian government encouraged pharmaceutical companies to manufacture drugs. With the deployment of their indigenous research and development (R&D) and innovation, several Indian-born pharmaceutical companies have gained a dominant position on the global platform over the past decade. It has been a gradual evolution of the Indian Pharmaceutical Market (IPM). Table 2.2 presents some of India’s reputed pharmaceutical companies that have signifcantly contributed to the Indian and international healthcare systems, making it a global player (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

2.4 Pharmaceutical Marketing Scenarios in Growth Markets The Indian pharmaceutical market (IPM) is estimated to be worth Rs 1.85 lac crore with a moving annual total (MAT) 8% growth, according to the Market Refection Report (MRR) published by IQVIA (IQVIA is the result of the 2016 merger of Quintiles, a leading global contract research organization, and IMS Health, a leading healthcare data and analytics provider. The name of the modern company honours the legacy organizations. IQVIA: I (IMS Health), Q (Quintiles), and VIA (by way of ) (Wikipedia, 2022) in July 2022. Glenmark pharma climbed two positions to reach the 18th spot. Macleods pharma, on the other hand, increased its ranking by two spots. With a growth rate of 29%, “Pan” grew the fastest, followed by “Augmentin” with a growth rate of 24%. The paracetamol brand “Dolo” gained 28 ranks and secured 21st position with a 28%

Dynamics of Pharmaceutical Marketing

TABLE 2.2 Prof le of Indian Pharmaceutical Companies of Repute

Name of the Indian Pharmaceutical Company

Cipla Limited

Sun Pharmaceutical Industries Limited

Aurobindo Pharma Limited

Sl. No.

1

2

3

Cipla is an Indian multinational pharmaceutical company that ofers generic medicines to treat respiratory, diabetes, weight control, and other medical conditions. Cipla was founded in Mumbai in 1935. They manufacture medicines, antiretroviral drugs, and are the world’s largest producer of antiretroviral drugs. The company also has 80 factories in other countries, in addition to 34 in India. As a result of its high-quality standards, the company is well known in the Indian and global markets. There are more than 2000 formulations available from them. Besides India, the United States, South Africa, and Europe, Cipla operates in all other markets (Cipla, 2022; Business Talk, 2022). Sun Pharmaceutical Industries Limited was founded in 1983 and is a multinational pharmaceutical company. The company is headquartered in Mumbai, Maharashtra. It manufactures and sells chronic and acute therapies, such as APIs (active pharmaceutical ingredients), ARVs (antiretroviral), OTCs, and generic drugs in India and the United States. In addition to ofering neurology, neuropsychiatry, cardiology, gastroenterology, oncology, diabetology, respiratory, and anti-infective drugs, they sell around 30 billion doses each year. Sun Pharmaceuticals is India’s largest pharmaceutical company and the fourth-largest generic pharmaceutical company in the world in terms of sales. Since Sun Pharmaceuticals acquired Ranbaxy in 2014, it has become both India’s and the US’s largest pharmaceutical company. With more than 40 manufacturing facilities worldwide, they produce APIs and formulations for over 100 countries. There are more than 2000 formulations ofered by Sun in India and other countries (Business Talk, 2022; Sun Pharma, 2022). The company was founded in 1986 by a small group of highly committed professionals, including P.V. Ramprasad Reddy and K. Nityananda Reddy. Pondicherry was the site of its f rst manufacturing unit for Semi-Synthetic Penicillin (SSP) in 1988–89. After becoming a public company in 1992, Aurobindo Pharma’s shares were listed on the Indian stock exchanges in 1995. Aside from neurosciences, cardiovascular, antiretrovirals, anti-diabetics, gastroenterology, and antibiotics, it is present in a number of key therapeutic segments. In addition to its products being sold in 125 countries, the company also conducts research and development. There is a high demand for their products because they are of the highest quality. In addition to Aurobindo pharmaceuticals, the company owns Novagen pharma (pty) Ltd., AuroZymes Limited, and many more (Business Talk, 2022; Aurobindo Pharma, 2022).

Brief Profle of the Company

54

Dr. Reddy’s Laboratories Ltd.

Divi’s Laboratories Limited

Abbott India Limited

4

5

6

(Continued)

Dr. Reddy’s Laboratories Ltd. was established in 1984. Dr Anji Reddy founded Dr. Reddy’s Laboratories, and the company opened its facility in Jeedimetla. The construction of the company's f rst API facility (CTO1) had begun at Bollaram in 1984. The company began operations in 1985. The company is currently headquartered in Hyderabad, Telangana. As a pharmaceutical manufacturer and distributor in India and other countries, the company produces and sells active pharmaceutical formulations, generic drugs, over-the-counter drugs, and 60 active pharmaceutical ingredients (APIs) for drug producers, diagnostic kits, biotechnology products, and acute care. APIs are manufactured at over ten FDA (Food and Drug Administration) facilities in India. To combat the covid-19 pandemic, the Russian direct investment fund partnered with the company to perform f nal-stage clinical trials and supply India with 100 million doses of Russia's Sputnik V vaccine. (Business Talk, 2022; Dr. Reddy’s, 2022). Divi's laboratories rank among the top 10 pharmaceutical companies in India. It manufactures APIs, intermediates, and nutraceuticals as well. Divi’s has been one of India's leading pharmaceutical companies since its establishment 30 years ago (in 1990). The company is based in Hyderabad, Telangana. In terms of market capitalization, the company ranks second among Indian pharmaceutical companies. In addition to its three manufacturing facilities, the company has three research and development facilities in Hyderabad, Vishakhapatnam, and Kakinada. In addition to Japan, the USA, Australia, South Africa, and the Philippines, Divi's laboratory exports products to these countries. In recent years, Divi’s API manufacturing company has become one of the top API manufacturers in the world as well as a top API company in Hyderabad. Divi’s Laboratories (USA), Inc. and Divi's Laboratories Europe AG are Divi’s laboratories. With the help of 16,500 highly educated professionals and 400 scientists, Divi delivers world-class products to customers. Its revenue for 2021-22 is $1.2 billion, and the company is listed on the Indian stock exchange (Business Talk, 2022; Divi’s Labs, 2022). In India, Abbott India is one of the largest and oldest multinational pharma companies. It is a subsidiary of Abbott Laboratories. The company was founded in 1944 and is headquartered in Mumbai, Maharashtra. In addition to pharmaceutical drugs, the company ofers therapeutics in neurology, women's health, gastroenterology, anti-infective drugs, diabetology, urology, thyroid, vitamins, etc. A total of 400 branded generic pharmaceuticals are manufactured by them around the world. Their products are high-quality and reliable. Through a variety of products such as science-based nutritional products, diagnostic tools, generic pharmaceuticals, diabetes, and vascular devices, Abbott has been dedicated to helping people live healthier lives in India since 1910. Abbott India Limited ofers high-quality trusted medicines in a range of therapeutic categories, including women's health, gastroenterology, cardiology, metabolic disorders, and primary care. Abbott India Limited, part of Abbott's global pharmaceutical business, is one of India's fastest-growing pharmaceutical companies. Providing high-quality, a reliable product with expert clinical support is the company's expertise in product development, manufacturing, sales, and customer service. In order to provide quality healthcare to the Indian population, Abbott India Limited combines global products with local ones. In order to cater to the native market's needs, the company develops products and conducts clinical trials. With cost-efective processes, high-quality formulations are manufactured in large quantities. Furthermore, the company's trained personnel ensure that international quality standards are met (Business Talk, 2022; Abbott India Limited, 2022).

Dynamics of Pharmaceutical Marketing 55

Name of the Indian Pharmaceutical Company

Alkem Laboratories Limited

Torrent Pharmaceuticals Ltd

Sl. No.

7

8

TABLE 2.2 (Continued)

The Alkem Laboratories company was founded in 1995 and sells generic pharmaceuticals, APIs, and nutraceuticals worldwide, including in India. Over 50 countries around the world are served by the company's high-quality generic pharmaceuticals, APIs, and nutraceuticals. In addition to 21 manufacturing facilities in 21 countries, the company has two plants in the United States and 19 in India. Mumbai, Maharashtra, is the headquarters of the company, which was founded in 1793. In terms of anti-infective drug sales, this is the f rst Indian pharmaceutical company to reach 1,000 million. The Bombay Stock Exchange Limited and National Stock Exchange of India Limited listed Alkem following its initial public ofering (IPO) on December 23rd, 2015. The best ideas take f ight when passion fuels them! Innovation gives ideas wings, but passion keeps them alive! The company’s six global R&D centres enable innovations aligned with its “Extended Lifecare Beyond Boundaries” philosophy (Business Talk, 2022; Alkem Laboratories Limited, 2022). The Torrent Group's f agship company, Torrent Pharma, was founded in 1959 and is headquartered in Ahmedabad. Among its niche marketing eforts, the company pioneered cardiovascular (CV), central nervous system (CNS), gastrointestinal (GI), and women's healthcare (WHC) in India. There is a considerable portion of the company's business devoted to diabetes management, pain management, gynaecology, and oncology. A leading pharmaceutical company, Torrent Pharma has global operations in over 40 countries, world-class manufacturing facilities, and advanced R&D capabilities. Torrent Pharma strengthened its position in the Indian pharma market by acquiring Elder Pharma's Indian branded business, Zyg Pharma's dermatological business, Glochem Industries' API plant, Novartis' women's healthcare brands, and Unichem's Indian branded business with its Sikkim plant in 2013. A 90-year-old German pharmaceutical company was acquired by Torrent Pharma from Pf zer in 2005 in order to enter the German market. Minocycline was purchased from Ranbaxy in 2015 for use in the US. A generic pharmaceutical and OTC (over-the-counter) company based in Levittown, Pennsylvania, was acquired by Torrent Pharma in January 2018 (Business Talk, 2022; Torrent Pharmaceuticals Limited, 2022).

Brief Profle of the Company

56 Dynamics of Pharmaceutical Marketing

Zydus Healthcare Limited

10

Source: Author’s own.

Lupin Limited

9

Change and transformation can be catalyzed by science. The conviction that science can improve health outcomes and uplift communities served as the guiding light for the company's founder, Dr Desh Bandhu Gupta (also popularized as “Sir DBG”), and Lupin, the company he founded in 1968. Upon completing his post-graduate studies in science, Mr Gupta began teaching at the Birla Institute of Technology and Science in Pilani, Rajasthan. In spite of this, DBG had a strong desire to bring about change and improve healthcare in India by harnessing the power of science. Lupin was also born from modest beginnings. Lupin was founded by DBG with INR 5000 borrowed from his wife in 1968. He expanded his business by sheer grit, determination, and perseverance, and soon established Lupin's f rst manufacturing plant to supply iron and folic acid tablets for the Government of India's f agship program. Generic drugs, biotechnology products, and APIs are among the products ofered by Lupin, the biggest pharma company in the world. Among the major areas of the company's focus are anti-tuberculosis, asthma, diabetology, cardiovascular, and paediatrics. Folic acid and iron tablets were manufactured by the company since 1968. In Mumbai, Maharashtra, the company is headquartered, and it produces TB drugs, which created a massive revenue stream. In addition to India, Mexico, Brazil, the United States, and Japan, Lupin has expanded its manufacturing operations. The company markets its product portfolio in more than 100 countries (Lupin Limited, 2022; Business Talk, 2022). With over 20 years of experience in the Indian formulations market, Zydus has become one of the country's leading pharmaceutical manufacturers. As the group continues to grow its market presence and share, it has also expanded its portfolio to include newer therapeutic areas. With a strong presence in acute and chronic therapies, the group has launched new products with the f rst mover advantage. Zydus Healthcare Ltd., based in Mumbai, spearheads the India formulations business, while the Biologics business sells and markets biosimilars and novel biologics. The company was established in 1952 and is headquartered in Ahmedabad. Zydus exist in the regulated markets of the US, Europe, South Africa, and Latin America. Over 30 manufacturing units globally include India, Brazil, and the USA (Business Talk, 2022; Zyds Healthcare Limited, 2022).

Dynamics of Pharmaceutical Marketing 57

58

Dynamics of Pharmaceutical Marketing

increase. A 9% growth was recorded by Indian pharmaceutical companies in July 2022, while a 4% growth was reported by multinational companies (MNCs) (Pilla, 2022; Roy, 2022). For the month of July 2022, acute therapy grew by 7% while chronic therapy grew by 9%. Dapaglifozin grew 34% in the anti-diabetics subgroup. It has been reported that dydrogesterone has had the highest growth of 68% among the top gynae therapies. In July 2022, fve brands were transferred from Dr Reddy’s Lab to JB Pharma (Pilla, 2022; Roy, 2022). There was a growth of 22.3% in respiratory, 24.3% in gynaecology, 28.4% in chemotherapy, 22.5% in urology, 18.8% in ophthalmology, 16.9% in pain, and 16.7% in derma. A rebound in non-emergency surgeries and the monsoon fu season may have contributed to the growth of these segments. GSK’s Augmentin, USV’s Glycomet, and Abbott’s Mixtard are the top three selling drugs in India (Pilla, 2022; Roy, 2022). In the global pharmaceutical industry, India holds an important position. It is estimated that India has a large pool of scientists and engineers capable of driving the industry forward to greater heights. Among India’s biotechnology industries, there are four main sectors: pharmaceuticals, bioservices, agriculture, and industry. Globally, it is an important and rapidly growing player in the pharmaceutical industry. The following statistics are provided for the Indian pharmaceutical industry (IPI) and the Indian pharmaceutical market (IPM) (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). i. Globally, India is the largest supplier of generic drugs. ii. Over 50% of the world’s vaccine demand is supplied by the Indian pharmaceutical sector. iii. In the US, generic medicines account for 40% of all demand, and in the UK they account for 25%. iv. According to global pharmaceutical production data, India ranks third by value and fourteenth by volume. v. There are 10,000 manufacturing facilities and 3,000 drug manufacturers in the domestic pharmaceutical industry. vi. Currently, over 80% of antiretroviral drugs used to treat AIDS (Acquired Immune Defciency Syndrome) are manufactured by Indian pharmaceutical companies. vii. Within the next decade, the domestic market is expected to grow three times according to the Indian Economic Survey 2021. viii. Currently, India’s domestic pharmaceutical market is estimated to be worth 42 billion dollars in 2021. ix. By 2024, it is expected to be worth 65 billion dollars, and by 2030 it is expected to be worth 120–130 billion dollars. x. Compared with $70.2 billion in 2020, the Indian biotechnology industry is expected to be worth $150 billion by 2025. xi. The market for medical devices in India was valued at US$ 10.36 billion in FY 2020.

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xii. The market is expected to grow by 37% between 2020 and 2025 to reach US$ 50 billion. xiii. According to CARE ratings, the Indian pharmaceutical market will grow at an annual rate of 11% over the next two years to reach over US$ 60 billion. xiv. Globally, India supplies about 60% of the global demand for vaccinations and accounts for 20% of the worldwide supply of generic medications by volume. xv. There is a market value of US$ 42 billion for the Indian pharmaceutical sector worldwide (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g). xvi. Compared to July 2020, August 2021 saw an increase of 17.7% in the Indian pharmaceutical market (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g). xvii. The Indian pharmaceutical market is expected to record revenue growth of over 12% Y-o-Y in FY 2022, according to India Ratings & Research (Nandy, 2018a, 2020b, 2020c, 2020d, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

2.5 Pharmaceutical Marketing in the Context of Growth Markets: Contemporary Case Studies Case studies provide in-depth, multifaceted understandings of complex issues in their real-life context. This proven research design is extensively used in several disciplines, including the social sciences. Pharmaceutical case studies illustrate the benefts of new technologies and developments for the pharmaceutical industry by looking at specifc issues. We present case studies in this section about products, services, and developments in the industry. Case studies provide in-depth, multifaceted understandings of complex issues in their real-life context. This proven research design is extensively used in several disciplines, including the social sciences. Pharmaceutical case studies illustrate the benefts of new technologies and developments for the pharmaceutical industry by looking at specifc issues. This section discusses contemporary case studies related to pharmaceutical products, services, and developments in Indian pharmaceutical companies (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g).

2.5.1 Case 1: Supply of AIDS Drugs at Low Cost in Africa: A Cipla Case Study Three-therapy drugs are being ofered to a doctors’ group active in Africa today by an Indian company for $350 a year per patient. AIDS drugs in poor countries could be reduced in price as a result of the move. An Indian company, Cipla Ltd., based in Mumbai, Maharashtra, made the ofer to “Doctors Without Borders”, which received the Nobel Peace Prize in 1999 for its work in war-torn and impoverished areas (The New York Times, 2001). To test broader approaches to combating AIDS, the group will distribute Cipla drugs to Africa's poorest patients free of charge (The New York Times, 2001). A larger government

60 Dynamics of Pharmaceutical Marketing

programme would also be able to obtain the drugs for $600 a patient per year, about $400 less than the patent holders ofered. The doctors’ group runs 40 AIDS projects around the world, with about half of them in Africa. AIDS infection rates in Africa can reach 36% (The New York Times, 2001). Antiretroviral cocktails can only be given out in fve pilot programmes. For $350 a year, Cipla ofers to sell as many doses as the agency wants. Cipla’s distinguished chairman, Dr Hamied, admitted the company would lose money at that price, but he would supply 10,000 or 20,000 or 30,000 doses to the company as desired. Cipla’s $600 price to governments may drop as a result of increased production (The New York Times, 2001). If that happened, he would have to reduce his prices even further. For him, selling the same cocktail in India costs about $1,100 per year. There are two tablets of stavudine of 40 milligrams each, two tablets of lamivudine of 150 milligrams each, and two tablets of nevirapine of 200 milligrams each in Cipla’s AIDS drug cocktail (The New York Times, 2001).

2.5.2 Case 2: Golden Goose for Micro Labs during Covid-19: Case of Dolo 650 Brand In the months leading up to the COVID outbreak, India sold nearly 7.5 crore strips of Dolo, a paracetamol tablet manufactured by Bengaluru-based Micro Labs Ltd (Balla, 2022; Balachandran, 2022). Within a year, this number grew to 14.5 crore strips from 9.4 crore strips. Due to this, Micro Labs generated an annual sales amount of Rs 650 crores from only one brand, Dolo 650mg.At the time that Micro Labs achieved Rs 2700 crores, the paracetamol brand Dolo 650mg contributed Rs 650 crores to Micro Labs’ revenue (Balla, 2022; Balachandran, 2022). Possibly as a result of this, Micro Labs’ profts and revenues have skyrocketed since the COVID19 pandemic began, and it’s not likely to subside anytime soon, especially since the tablet is a popular choice of medication for COVID-19 symptoms (Balla, 2022; Balachandran, 2022). From March 2019 to March 2021, revenue increased by 25%, and proft increased by 244% (Balla, 2022; Balachandran, 2022). A majority of the company’s revenue is generated in the domestic market. Due to the COVID-19 pandemic, several healthcare and pharmaceutical companies have become billionaires. Over 350 crore pills have been sold since March 2020 with Dolo 650, the most prescribed medication (Balla, 2022; Balachandran, 2022). The Dolo 650 brand has become synonymous with fever during the pandemic. In Dolo 650, the main ingredient is paracetamol, a fever-treating medicine that is also antipyretic and anti-infammatory (Balla, 2022; Balachandran, 2022). The Micro Labs Ltd Company was founded by G.C. Surana in Chennai in 1973 (Balla, 2022; Balachandran, 2022). There is a perception among consumers that Dolo 650 is more efective than other brands of paracetamol since it has 650 mg of paracetamol as opposed to most other brands of paracetamol which have 500 mg of salt. In addition to having 9200 employees, Micro Labs generates annual revenue of 2700 crores (Balla, 2022; Balachandran, 2022). The company’s revenue comes from exports of Rs 920 crore. IQVIA, a human data

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science and advanced analytics company says, Dolo and Calpol of GSK are the key brands in the paracetamol segment. Memes about Dolo 650 have also been trending on social media. Various brands of paracetamol are available in different parts of India (Balla, 2022; Balachandran, 2022). A leading pulmonologist at Fortis Escorts Hospital, Faridabad, Ravi Shekhar Jha, says, “Dolo has a good safety profle. Fever is one of the most troubling symptoms in COVID patients. Due to fever, the heart rate and body pain increase, but Dolo is a very afordable medicine, most patients only need one tablet of Dolo (Balla, 2022; Balachandran, 2022).”

2.5.3 Case 3: FabiFlu, Top-Selling Pharma Brand: Case of Glenmark Pharmaceuticals Limited Glenmark Pharmaceuticals Limited had been approved by the Drug Controller General of India (DCGI) to conduct a clinical trial using Favipiravir antiviral tablets to treat COVID-19 patients. Phase 3 trials in India studied the combination of Favipiravir and Umifenovir. Favipiravir and Umifenovir were tested for their efcacy in treating COVID-19 in an efcacy study. In order to combat COVID-19 in India, the company’s research and development (R&D) team explored the safety profle of antiviral agents (DNA India, 2021; Times of India, 2021). It was expected that combination therapy would reduce the risk of infection among medical professionals and healthcare workers by reducing the duration of coronavirus infection (DNA India, 2021; Times of India, 2021). In order to develop a treatment for COVID-19 patients’ fraternities, all possible opportunities were explored by Glenmark. Adults with mild-to-moderate COVID-19 were also approved for treatment by the DGCI using FabiFlu containing Favipiravir. FabiFlu, a generic version of the Japanese anti-infuenza drug Favipiravir, was the most popular brand in India’s pharma retail market in 2021 (DNA India, 2021; Times of India, 2021). A total of 15,000 COVID19 cases were reported in India every day in March 2021, and FabiFlu’s sales exceeded Rs 48.3 crore (DNA India, 2021; Times of India, 2021). A turnover of Rs 762 crore had been generated by Mumbai-based Glenmark since the launch of the drug in June 2021. Fabifu sold Rs 762 crores more than Glycomet-GP in 2021. The COVID-19 pandemic hit India again in April 2021, resulting in a 600% increase in sales for FabiFlu (DNA India, 2021; Times of India, 2021). The drug’s sales increased by over 600% or six times within one month of being out of stock because of constant SOS calls on social media. Lifestyle ailments drugs, such as diabetes medications and heart medications, dominated the top ten best-selling drugs in the country (DNA India, 2021; Times of India, 2021). Among the top four medicine brands in India, Abbott’s Mixtard was the top-selling product, followed by Glycomet GP by USV, Sanof India’s Lantus, and MSD’s Janumet. As COVID-19 infection rates reached four lakhs per day in April 2021, Zincovit, Dolo, Monocef, and Betadine dominated India’s top-selling drugs (DNA India, 2021; Times of

62 Dynamics of Pharmaceutical Marketing

India, 2021). Since October 2020, Zincovit had topped the COVID-19 chart due to its popularity. In April 2021, FabiFlu replaced Zincovit, a multivitamin drug with sales of Rs 351 crore. The price of Glycomet-GP was Rs 564 crore in the last 12 months, while Fabifu was Rs 762 crore (DNA India, 2021; Times of India, 2021).

2.5.4 Case 4: Celebrity Endorsement in Pharma Branding: Case of Mankind Pharma Mr Bachchan has a distinguished reputation and exudes reliability and dependability. By establishing this association, we believe that Mankind’s brand image among consumers will be strengthened and confdence in the brand will grow. It is our pleasure to welcome Bachchan to the Mankind family. We are delighted to announce Bachchan as Mankind Pharma’s frst brand ambassador. Rajeev Juneja, Mankind Pharma CEO [Mankind Pharma, 2019] “It has been an absolute pleasure to be a part of the Mankind family and I am delighted to be associated with the brand known in the country for its work of serving life.” Amitabh Bachchan, Eminent Bollywood Actor. [Mankind Pharma, 2019] Mankind Pharma recently announced Amitabh Bachchan as its new brand ambassador. Mankind Pharma, one of India’s reputed pharmaceutical companies with over 14,000 employees, emphasized the importance of good health and afordable treatment for everyone through this partnership (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019). This company ofers a wide range of products, from pharmaceuticals to fast-moving consumer goods (FMCG) items as well as of-the-shelf items (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019). A TV commercial (TVC) featuring Amitabh Bachchan was aimed at promoting quality and afordable healthcare for all (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019). Mankind’s philosophy of “serving life” echoed Bachchan’s iconic status. Through this partnership, Mankind Pharma ensured that everyone would have access to afordable treatment (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019). With the new TV commercial (TVC), Mankind’s association with its new ambassador was clearly portrayed, which was the frst time the company had appointed an ambassador (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019). As part of its commitment to a healthier and happier world, Mankind released a new corporate advertisement. In addition

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to its rapid growth in India and abroad, Big B was also experiencing rapid growth when the two partnered (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019). Through the appointment of superstar Amitabh Bachchan as the brand ambassador, Mankind Pharma fnally emphasized good health and afordable treatment for all classes of people (Mankind Pharma, 2019; Brand Equity, 2017; The Hindu Business Line, 2018; Express Pharma, 2019).

2.5.5 Case 5: Brand Acquisition in Indian Pharma Business: Case of J.B. Chemicals & Pharmaceuticals Dr Reddy’s Laboratories’ four paediatric brands have been acquired by J.B. Chemicals & Pharmaceuticals (Business Standard, 2022; Economic Times, 2022). In terms of hypertension management, J.B. Chemicals & Pharmaceuticals is among the fastest-growing pharmaceutical companies in India (Business Standard, 2022; Economic Times, 2022). According to the company, India generates the most revenue, followed by South Africa and Russia. A portfolio of brands from Dr Reddy’s Laboratories will be acquired by the company on 29 June 2022, according to the drug maker. For the Indian market, Z&D, Pedicloryl, Pecef, and Ezinapi have been acquired from Dr. Reddy’s Laboratories. A combined revenue of Rs 1800 crore is reported by the four pediatric brands, according to IQVIA (Business Standard, 2022; Economic Times, 2022). Among the four brands are Ezinapi diaper rash cream, Pedicloryl insomnia medication, Pecef antibiotic, and Z&D zinc supplement (Business Standard, 2022; Economic Times, 2022). A total of Rs 33 crore was generated by the four brands combined during the fscal year that ended 31 March 2022. In a cash deal worth 98.3 crores, J.B. Chemicals & Pharmaceuticals ( JB Pharma) acquired Dr. Reddy’s Laboratories’ paediatric formulation brands (Business Standard, 2022; Economic Times, 2022). Working capital and taxes are not included in the calculation of acquisition funding. J.B. Pharma will be able to expand its feld force more efciently as a result of these acquisitions, and the brands will complement its pediatric division as well. It has been considered by the company to acquire a domestic brand (Business Standard, 2022; Economic Times, 2022). According to IQVIA data for March 2022, fve of J.B. Pharma’s brands are among the top 300 brands on the Indian pharmaceutical market (Business Standard, 2022; Economic Times, 2022). The company’s domestic formulation business grew 33.6% in FY22 as compared to the industry’s 27.9% (Business Standard, 2022; Economic Times, 2022).

2.6 Patent War in International Pharmaceutical Market 2.6.1 Defnition of Patent A patent is a form of intellectual property that gives the owner exclusive rights to sell, use, create, and/or manufacture an invention. Since patents account for

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approximately 80% of pharmaceutical industry revenue, patents play a critical role in protecting innovative approaches (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Drug patents allow researchers to recover their investments in research and development. During the 20-year patent period, pharmaceutical companies can charge monopoly prices for their products. Originators view patents as crucial to recouping investments and motivating further innovation (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Microwave ovens, a computerized method of managing cash accounts, and a method of curing rubber are some examples of inventions protected by utility patents. Patents protect new medicines discovered by pharmaceutical companies (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). A longer period of time is possible to recoup the costs of research and development due to this protection. It is generally understood that inventions are products or processes that ofer a new way of doing things or new technical solutions to problems (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Patents are exclusive rights granted to inventors. A patent application must disclose the technical details of an invention. As a result of patents, inventions can be controlled by their inventors – or the group that owns the patent – so that they do not infringe on another’s intellectual property rights (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Patent applications are adjudicated by the United States Patent and Trademark Ofce (USPTO) and are valid for 20 years. There are two types of patents: individual and group (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022).

2.6.2 Importance of Patents in the Pharmaceutical Industry The globalized era has led to the introduction of new and improved drugs as technology has advanced. During the last few decades, advances in the pharmaceutical industry have benefted millions of people. These commercially successful drugs generate most of their revenue from R&D (research and development) (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Drug manufacturers are investing more in research and development to maintain their competitive advantage in the pharmaceutical

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industry. In spite of new drugs posing a threat to the pharmaceutical sector’s survival, it depends on innovation to succeed. Research can also help pharmaceutical companies diferentiate themselves from generic manufacturers (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Most pharmaceutical companies are seeing high returns on their investments due to innovation. In order for new drugs to be developed and launched successfully, a highly innovative industry is crucial. Due to the high stakes in the pharmaceutical industry, pharma companies must invest heavily in innovation (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022).

2.6.3 The Rising Cost of R&D in Pharmaceutical Sector A pharmaceutical innovation occurs when a new medicine is developed and approved by the government. In order to ensure proftability and higher profts, many companies invest heavily in R&D, including Sun Pharma, Dr. Reddy's, Lupin, Novartis, Pfzer, Roche, etc. (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). It is more important for companies to market their innovations than to conduct research. Fighting ferce competition will require investing in research and development and fostering innovation (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). The cost of bringing a new drug to market is approximately $5 billion in the pharmaceutical industry. A drug takes between 13 and 15 years to develop and launch in the marketplace, including 6–7 years for clinical trials. A small percentage of these drugs are approved for market release by regulators (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022). Due to the high cost of developing new drugs, pharma companies have shifted their focus to marketing commercially successful drugs that address symptoms of unknown diseases and generate revenue by providing the appropriate healthcare solution (Poonia & Bhardwaj, 2015; Walden University, 2022; Zacharias & Farias, 2019; World Intellectual Property Organization, 2022; Gurgula, 2020; Mohan et al., 2014; Sagacious IP., 2022).

2.6.4 Impact of Patent War on the International Pharmaceutical Industry (IPI) A patent war is a battle between corporations and individuals to obtain patents for litigation, either ofensively or defensively. There is an ongoing patent war

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between the largest pharmaceutical companies in the world. Pharmaceutical companies based in the US, China, Europe, Japan, Korea, and Taiwan are involved in the modern patent war. Many pharmaceutical technologies have been the subject of patent wars in the past and now. The cost of patent protection may be higher. The manufacturer can charge whatever the market will bear when it owns exclusive rights to manufacture and sell the drug. Insurers, patients, and providers are willing to pay a lot for pharmaceuticals and medical devices because they are necessary for patients’ health. According to recent market research, costs typically fall by 38% to 48% once patents expire and competition enters the market. It is possible for the entire healthcare system to be burdened by higher costs incurred during patent periods. It is also possible to have problems with patents if they are not protected. It is currently possible to access a number of dormant therapies. Unmet medical needs, improved outcomes, or reduced health risks are addressed by pharmaceuticals or medical devices that lack sufcient patent protection. There is a lack of strong patent protection, which discourages companies from developing these treatments and bringing them to market. Using an accelerated approval process, a manufacturer other than the original developer may be able to introduce a lower-priced generic version of a drug after its US patent expires. The clinical efectiveness of generic drugs is generally comparable to that of their branded counterparts. As a result of a game-changing ruling, drug companies may be forced to put patients ahead of profts. Everything seemed to be going smoothly for multinational pharmaceutical companies (MNCs). The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement of the World Trade Organization (WTO) granted exclusive patent rights to multinational pharmaceutical companies (MNCs) in all markets after 2005.

2.6.5 Case Study In India, two recent court cases may have changed the rules of the game. An Indian Supreme Court ruled in 2013 that Novartis was not entitled to a new patent on its leukaemia drug Glivec (an updated version of a cancer drug) (The Guardian, 2013; NBC News). A drug is evergreened if small changes are made to secure a new patent and extend its monopoly (Glivec costs $2600 per month to patents). After India allowed generics companies to copy patents, Bayer’s cancer drug Nexavar’s price was lowered from more than $5500 to $175 (£112) per month. Many multinational corporations (MNCs) and drug-producing countries have vehemently criticized these landmark judgments (The Guardian, 2013; NBC News). While Novartis argued that a patent was necessary to protect its investment in Glivec in India, activists said it should not be protected. Responding to the ruling, Novartis has decided not to invest in the Indian pharmaceutical market. If Indian law allows global drug companies to extend patents on medicines by making minor changes, the $25 billion generic drug industry in India could be stunted. Once a drug’s patent expires, generic manufacturers can produce it (The Guardian, 2013; NBC News). Their lower costs are due to the fact

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that they do not have to conduct expensive research and development. A patent can only be granted for new drugs, not for modifed versions of existing drugs. Minor adjustments to existing drugs will not be eligible for a patent. This ruling was branded as a “setback for patients” by Novartis, who said patent protection is needed to encourage investors to invest in developing new and improved medications (The Guardian, 2013; NBC News). As a result of the court’s decision, Ranjit Shahani, vice chairman and managing director at Novartis India, said the ruling would “hinder medical progress for diseases without efective treatment options”. International pharmaceutical companies are less likely to invest in India because of the ruling (The Guardian, 2013; NBC News). No global company, including Novartis, will invest in drug research in India, he said. It has been a long-running legal battle between Swiss pharmaceutical giant Glivec and India for patent rights on a new version of Glivec, which is known as Gleevec outside of India and Europe (The Guardian, 2013; NBC News). The earlier version of Glivec did not have an Indian patent because it was developed before the country’s patent law was enacted in 2005. Approximately 40 countries have patents on Glivec, according to Novartis. Indian health activists agree that the Supreme Court’s 2013 decision will ensure that poor patients around the world will have access to afordable versions of life-saving medicines for many years to come (The Guardian, 2013; NBC News). As the “patent clif” approaches, pharmaceutical companies have long complained about rising R&D costs and being unable to replace big sellers. The pharmaceutical industry relies heavily on incremental innovation to improve medicines, according to a Novartis spokesperson (The Guardian, 2013; NBC News). Besides improved efcacy, incremental innovation also provides benefts for patient safety and compliance, manufacturing efciency, and product stability during storage and transport. The real problem is the R&D costs inherent to drug development. According to Novartis, only one out of 10,000 experimental compounds will reach the market – at an estimated cost of $1 billion (£642 m) per approved medicine (The Guardian, 2013; NBC News). The success of a molecule as a drug would not have been possible without the thousands of molecules that failed. In the absence of patents, investment in R&D will plummet and those sufering from diseases without efective treatments will be left without hope. Simply put, without patents, there will be no new medicines for untreated diseases and no new generics (The Guardian, 2013; NBC News). This is an innovative industry and this is an issue that afects society. To make the drugs that we need, instead of the ones that just make a proft, we have to think as a society about how to fund R&D (The Guardian, 2013; NBC News).

2.7 Marketing of Generic Drugs, Branded Medicines and Non-Prescription/Over-the-Counter (OTC) Drugs The generic drug market is divided into pure generics and branded generics based on the classifcation of drugs. Branded generic drugs are bioequivalent to

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generic drugs; however, they are marketed under a diferent company’s brand name. The market share of generic drugs is high. The following sections explain some aspects of generic drug marketing, branded drug marketing, and over-thecounter (OTC) drug marketing, in order (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g).

2.7.1 Marketing of Generic Drugs In pharmaceuticals, a generic drug is a drug that has the same chemical composition as the drug that was originally developed, patented, and innovated. After the patent for the original drug expires, generic drugs can be sold. Generic products typically become available after a drug’s patent protection, granted to the original developer, expires. After generic drugs enter the market, competition usually results in substantially lower prices for both the original brand name product and its generic equivalent. Most countries grant patents for 20 years. In many countries and regions, such as the United States and the European Union, manufacturers may receive an additional fve years of protection (“patent term restoration”) if they meet specifc goals, such as conducting clinical trials on children. Each of the parties involved in the production and distribution of a product can increase its price at a diferent point in the process. Generics’ performance is believed to be equivalent because they contain the same active chemical substance (Nandy, M., 2022iii). There are no signifcant diferences between generic drugs and their original counterparts, except perhaps in their manufacturing process, formulations, excipients, and packaging (Sa Pharmacy, 2022). Generic drugs are usually subject to government regulation in countries where they have the international non-proprietary name (INN) of the drug, even though they may not be associated with one specifc company. In order to be a generic drug, the active ingredients must be the same as those used in the original brand name formulation. The US Food and Drug Administration (FDA) require that generics meet the pharmacokinetic and pharmacodynamic properties of their brand-name counterparts or be within a bioequivalent range (Sa Pharmacy, 2022; Zionmarketresearch, 2022). As a result of government initiatives and increasing patent expirations of branded drugs, the market for generic drugs has accelerated. Further, the market for generic drugs is growing as chronic diseases become increasingly prevalent and emerging markets grow. Additionally, decreased drug prices are one of the main factors driving the generic drug market. There is, however, a high degree of competition and a shortage of drugs that can limit the growth of the generic drug market. Furthermore, doctors’ prescriptions have a signifcant efect on the growth of the generic drug market because branded drugs are being prescribed to patients. The generic drug market is expected to see more opportunities in the near future from an untapped and emerging market, such as India and China (Sa Pharmacy, 2022; Zionmarketresearch, 2022).

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2.7.2 Marketing of Branded Drug a) According to the FDA and National Health Service (NHS) Branded generics are products that are either novel dosage forms of ofpatent products that are produced by a global pharmaceutical manufacturer which is neither the originator of the molecule, nor a molecule copy of an of-patent drug with a trade name. Drugs that are marketed under a trade name by the company that frst brought or introduced the drug in the market, regardless of whether or not the patent on the drug has expired. Branded drugs are promoted by medical representatives to the medical practitioners. b) This marketing usually happens only after the patient on the drug expires (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g). c) Branded generic drug sometimes are marketed by the same pharmaceutical company under diferent brand/trade names for catering the diferent indications; usually this happens when the diferent indications are managed by the diferent marketing divisions of the company, and pricing of the drugs may vary widely between the trade names because of diferences in the economics of the marketing divisions. The pharmaceutical companies manufacture and market branded generics spend an almost negligible amount on research and development (R&D) space, but these pharmaceutical companies become aggressive in spending on innovative marketing practices which ensures maximization of profts and minimization of costs. For example, the signifcant revenues of Ranbaxy, now owned by Sun Pharmaceuticals, Indian frst ranked pharmaceutical company came from branded generics. To combat climate change, multinational pharmaceutical companies are also investing adequate R&D amount for designing relevant product portfolio which is the need of the hour (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g).

2.7.3 Marketing of Over-the-Counter (OTC) Drugs The term over-the-counter (OTC) refers to drugs that are sold directly to consumers without a prescription from a healthcare provider. Regulatory authorities around the world ensure that OTC drugs are safe and efective when used without consulting a physician (Pharmatutor, 2013b). It is more common for OTC drugs to be regulated by the active pharmaceutical ingredients (APIs) rather than the fnal products. An example is the “Drugs and Cosmetics Act (DCA)” in emerging economies like India, which governs the import, manufacture, distribution, and sale of drugs and cosmetics. Many countries stock OTC drugs in self-service areas, as they do with other packaged goods. In contrast, prescription drugs are almost always passed over the counter from the pharmacist

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to the customer. There is no need for a prescription for over-the-counter medications (i.e. no prescriptions are required), but pharmacists must assess a patient’s needs or educate them before dispensing. OTC drugs are sold in many countries in establishments other than pharmacies, such as general stores, supermarkets, and gas stations. Detailed regulations detail where drugs can be sold, who can dispense them, and who should not. Whether a prescription is required varies considerably from country to country. In this regard, some examples are provided below. a) In Canada: Including weak codeine products, muscle relaxants, and some antihistamines, OTC drugs can be categorized as an intermediate category of non-prescription items that must be kept behind the counter, in a storeroom, or on the pharmacist’s shelf. b) In the US: The Food and Drug Administration oversees the sale and manufacture of over-the-counter medicines in the United States. “New drugs” must apply for a New Drug Application (“NDA”) before entering interstate commerce, but drugs that are generally recognized as safe and efective (“GRAS/E”) are not required to fle this application.

2.7.4 Global Over-the-Counter (OTC) Drug Market Global OTC pharmaceuticals market has been producing signifcant growth for the last several years. At a global level pharmaceutical companies are leveraging the power of OTC to face the challenges they face today. There are certain reasons for which global pharmaceutical companies are entering into the OTC market place and the reasons are listed below. a) b) c) d) e) f) g) h)

Globalization. New product pipeline shrinking. Signifcant contribution to cost of new drug discovery. Withdrawal of Product Life Cycle (PLC) of existing products to ensure product-market ft. Managing healthcare demand and satisfying consumer needs. Concentration of the patent-protected drugs by the public and government to ensure afordable drug price. Stringent norms, compliances, and safety rules of the USFDA, and Entry of new pharmaceutical companies in the pharmaceutical market place.

The medicines which are sold through the route of over-the-counter (OTC) drugs are listed in Table 2.3. Benefts and risks involved while switching from prescription (Rx) only to OTC drugs are described in Table 2.4.

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TABLE 2.3 Examples of Over-the-Counter (OTC) Drugs

a. b. c. d.

Digestives Antacids Antifatulents Cold and analgesic balms or creams e. Vitamins, tonics, & health supplements (with an emphasis on herbals and Ayurvedic-registered products)

f. Medicated dermatological (skin) treatment g. Analgesic/cold tablets h. Antiseptic creams/ liquids i. Anti-acne Drugs j. Vasodilators. k. Glucose powders l. Cough liquids m. Baby product range

n. Throat lozenges o. Band-aids or bandages as medicated dressings p. Non-Steroidal AntiInfammatory Drugs q. Smoking Cessation Drugs

Source: Author’s own. TABLE 2.4 Possible Benefts and Possible Risks of Over-the-Counter (OTC) Drugs

Possible Benefts a) Increased access b) Frequency decrease of visits to doctors resulting to lower healthcare costs c) Education of consumers d) Enhancement of patients’ autonomy e) Decreased expenses to thirdparty players

Possible Risks a) b) c) d) e) f)

Inappropriate diagnosis Delay in providing required therapy Application of suboptimal therapy Resistance of drugs Cost to patient increase Label instructions not being followed and hence adverse efects and drug interactions in the human body. g) Loss of control by the healthcare providers (HCPs)

Source: Author’s own.

2.8 Prescription (Rx) Habit of Physician The pharmaceutical industry promotes its products to doctors and other health providers around the world. It’s crucial that pharmaceutical marketers adopt the right promotional strategies in order to reach the right person and to the right place, which is only the point of prescription (Rx) where the healthcare provider (HCP) treats patients and ensures speedy recovery of diferent diseases or disorders the patient fraternities are sufering from. Let’s try to fgure out what a prescribing (Rx) drug is. Here are some defnitions of prescribing (Rx) drugs (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g). According to Section 1 (1), of the “Drug and Pharmacies Regulation Act (DPRA)”, drugs are defned as “medications”. a) Section 27 of the “Regulated Health Professions Act, 1991”, states, “Prescribing Drugs: is a controlled act as set out in the Regulated Health Professions Act, 1991”.

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In light of the above defnitions, it is clear that a prescription is when a prescriber allows a drug or combination of drugs to be dispensed. The instructions can be verbal, written, or electronic. The prescription of drugs is an integral part of medicine. The doctors must-have skill, judgment, and knowledge in order to be successful in this feld. By adopting this policy, doctors can make sure their patients are safe when prescribed drugs by their doctors. Therefore, the Physicians’ Prescription Pattern consists of standard components that physicians should apply when prescribing drugs to patients. It includes agility, professionalism, duty of care, and the right to prescribe (Pharmatutor, 2015a). In addition, prescribing is governed by a complex legal framework (Pharmatutor, 2015a). A physician should also comply with relevant legal requirements for drugs and prescribing in addition to the expectations outlined in this policy.

2.8.1 Factors Affecting the Physicians’ Prescription (Rx) Pattern Literature shows that doctors’ prescribing habits are infuenced by multiple factors. There’s a big diference between what general practitioners do and what specialists do. It’s common for doctors to recommend treatment even if symptoms seem mild or if it appears like it’ll go away on their own. In order to meet patients’ expectations, doctors tend to “over-treat” symptoms. A doctor has to decide which medication to prescribe (Rx) after deciding to treat the patient. Typically, doctors will use medications they’re familiar with to determine if a medication’s beneft-harm balance applies to individual patients. There are almost 2,000 medications with diferent active pharmaceutical ingredients (APIs) available in the United States, and no doctor could possibly remember how they work, what their recommended doses are, or what their potential side efects could be. The number of marketed products is much higher than 10,000 since many generic medications are manufactured by diferent companies and sold under diferent brands. Choosing a medicine isn’t completely objective; it’s not just based on science and medical evidence. Patients should feel reassured, though, knowing that the most commonly prescribed drugs for a given disease or condition have more similarities than diferences. The infuence of specifc variables or groups of variables on doctors’ prescribing behaviour has been studied since the 1940s. These are the main factors that doctors use to decide whether to prescribe a drug. a) b) c) d) e) f) g)

Desires of the patients. Pharmacist knowledge of products. Journal distribution as a means of disseminating knowledge. Drug advertisements in scientifc journals and at conferences. The detailing of medical representatives (MRs). Prescriptions (Rx) from peer physicians. A particular medication's cost.

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The other factors afecting physicians’ prescribing pattern are described below. a) Clinical and behavioural characteristics of the patient: A doctor’s choice of medication is determined by a lot of factors.A number of variables afect the prescribing process, including the patient’s clinical and behavioural characteristics, the patient’s needs and expectations regarding treatment in the use of medication, the attitude, expectations, and training of the treating physician, as well as the organization and contextual constraints placed upon the doctor–patient relationship by the treatment and by the institution. b) Research and the request from pharmaceutical companies: Prescriptions are heavily infuenced by research and the intense promotion of pharmaceutical companies. There’s a close relationship between drug companies and researchers, and their infuence can afect physicians through education, scientifc journals, and advertising based on their personal characteristics (Nandy, M. 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). c) High curing efect; habitual or non-habitual choice: Drugs are usually chosen based on habit or non-habit. In this perspective, a physician’s drug choices are habitual. He or she may adopt a new drug, and that is what a physician considers. This is how a physician makes a non-habitual choice such as deciding the criteria, how to weigh the expectations with them, deciding the drug, the external information, disposition of the drug, and the treatment outcome, and lastly, the physician’s knowledge about the drugs. d) Behaviour pattern of patients: It’s not uncommon for prescribers to base their drug selection decisions on the behavioural pattern of their patients. Like any consumer purchasing decision. e) Peer infuence of physicians (community of physicians): In the medical world, peers play a huge role in legitimizing prescribing habits by approving the use of a product. Peer infuence on physician prescribing determines the social structure of a community of physicians. f ) Education and advertising: The quality of prescribing seems to be infuenced by education. Education and advertising products at scientifc events have a big impact on the dissemination of knowledge. g) High Cost of Drugs: The lack of organized drug policy and limited economic resources cause more problems in developing countries. In developing countries, patients are unable to aford expensive drugs because they don’t have purchasing power. Thus, doctors look for afordable drugs with good quality (Figure 2.3).

2.9 Patient Motivation I'm here to coach you, not to make you better. You make yourself better; I can't do that for you: Some clinicians acknowledge that they don’t know their patients’ lives

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High curing effect; habitual or nonhabitual choice Research and the request from pharmaceutical companies

Behaviour pattern of patients

Peer influence of physicians (community of physicians)

Factors affect physicians prescribing (Rx) pattern Clinical and behavioural characteristics of the patient

Education and Advertising High Cost of Drugs

FIGURE 2.3

Factors afect physicians prescribing (Rx) pattern. Source: Author’s own.

outside the clinic and that patients can best decide which goals and strategies are most appealing or feasible. [Pharmatutor, 2015a] [Philosophical perspectives of physicians] In this section, an attempt has been made in the following to discuss patient motivation from the angle of two dimensions as under: A. Patient motivation with the help of Healthcare Providers (HCPs). B. Patient motivation with the help of pharmaceutical marketers (Figure 2.4).

2.9.1 Patient Motivation with the Help of the Healthcare Providers (HCPs) For medical professionals, patient satisfaction is important. When gaps are created in providing healthcare services, medical fraternities want to help patients heal as quickly as possible, but sometimes the treatment process gets derailed. Currently, most healthcare providers (HCPs) understand their patients' cognitive and psychological behaviour to make them

Dynamics of Pharmaceutical Marketing

Patient motivation with the help of the Health Care Providers (HCPs) • Simplification • Educate patients with handouts • Building community connections • Workshop Hosting • Providing homework • Stay Connected • Elimination of Obstacles • Emphasizing patient ownership • Building Partnerships • Identifying small steps • Scheduling frequent follow-ups • Showing care and concern

FIGURE 2.4

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Patient motivation with the help of pharmaceutical marketers

• Patient Feedback Collection • Camp Activities • Free Sample Distribution

Framework for patient motivation (FPM). Source: Author’s Own.

happy. Listed below are some of the measures/methods used by healthcare providers (HCPs). a) Simplifcation: While treating patients, doctors use simple language to communicate with their fraternities. When doctors talk to patients, they don’t use jargon or complex words. As an example: when doctors treat diabetes patients, they know why patients are motivated to follow a particular food plan and suggest it in a simple way. b) Educate patients with handouts: A variety of health brochures are kept on hand by the medical fraternities. Afterwards, they hand them to the patients, which include interesting statistics or tips they can use. The mortality rate from heart disease may convince patients to maintain a healthy diet, for example. c) Building community connections: Provide doctors with the info they need to get connected to community services that their patients will beneft from. Maybe a support group for overeaters could help a doctor’s patient lose weight. They may just need a little extra support to stay motivated between doctor’s appointments or visits. d) Workshop Hosting: Educate patients on how to live with a chronic condition in a workshop. Provide free workshops on reading and interpreting food labels, and the dangers of certain foods, if your doctor has a lot of diabetic or cardiac patients. e) Providing homework: It’s important to the doctors that their patients know that their success depends on them. The doctor tells them exactly what they need to do at home, and that he’ll be checking on them at their next appointment.

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f)

g)

h)

i)

j)

k)

l)

They give their patients a diet or exercise journal to track their progress and make sure they bring it to every appointment. Stay Connected: They want to follow up with patients and give receptionists a phone number or email so they can get in touch with them. If they have any questions about the next appointment, ongoing treatment proceedings or anything else, they can call or email. It’ll give them motivation. Obstacles elimination: Doctors help patients with cognitive or physical challenges that make it hard to follow their medications or therapy programmes. Maybe the patient doesn’t understand the medication pattern or the dosing schedule, or the patient can’t handle certain pill sizes, or the patient has trouble opening the medicine bottle. In case a patient has any impairment, the doctors provide signifcant support to remove it. Emphasizing patient ownership: Clinicians who do well always say that patients should always take care of their own health, which means taking responsibility. Building Partnerships: Top healthcare providers (HCPs) know that patients need to work with them to come up with goals and strategies to solve their health problems. In this context, HCPs try to build a long-term relationship with patients. Identifying small steps: Clinical consultants help patients set low goals so they can achieve their healthcare goals, helping them identify small steps toward change. Scheduling frequent follow-ups: Healthcare providers (HCPs) follow up with patients a lot. Occasionally patients come in for face-to-face visits, but others use their electronic records for communication. Showing care and concern: Some top-performing clinicians tell their patients they want them to be healthy so they can play with their granddaughters and grandson. Clinical staf wants patients to make changes so they’ll be healthier and happier.

2.9.2 Patient Motivation with the Help of Pharmaceutical Marketers Today, the consumer or end-user is king in pharmaceutical marketing (Nandy, M. 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). There is no longer anything that drug manufacturers or marketers can sell to patients or end users. These days, a pharmaceutical manufacturing and marketing company’s business sustainability is solely dependent on one aspect, and that is ensuring patient-centric healthcare management. As of now, consumers and patients are the ones who decide what drugs should be manufactured, in what quantities, and what should be the quality and efcacy of the drug product. As a result, pharmaceutical marketers need to take into account various important factors when marketing a drug since patient

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fraternities have diferent preferences, and sometimes totally diferent preferences (Nandy, 2018a, 2020b, 2020c, 2020d, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). As a result, pharmaceutical manufacturers and marketers face a lot of challenges and it is therefore very important to understand consumer behaviour. Pharmaceuticals still face a difcult task in understanding consumer behaviour since the target customer is not the end users, but rather the doctor who generates the prescription for the patient fraternities. Since the pharmaceutical industry has grown exponentially around the world, lots of complex scenarios are continuously emerging to understand the mindsets of doctors. Compared to stores of the daily consumer goods trade, the pharmacy sector has its unique characteristics as the prices of medicine in all pharmacies are the same. There are more product options today due to the emergence of generic medicines on the market that are cheaper than original products. Reputed pharmaceutical companies now measure patient satisfaction through marketing research in order to ensure their satisfaction in a sustained manner. There are several avenues in which pharmaceutical marketers focus on motivating patients (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Patient feedback collection: Pharma marketers sometimes try to collect patient feedback by distributing product leafets, brochures, and questionnaires to healthcare providers (HCPs) in the clinical setting. a) Activities at Camps: Pharmaceutical companies organize the camps to interact with the direct patients and the end users in order to promote the specifc product and to gain insight into the minds of the patients. b) Free Sample Distribution: To reduce the fnancial burden of patients, pharmaceutical companies provide free samples to the poor and underprivileged in order to assure their speedy recovery and be a part of the fnancial ecosystem after getting recovered from the disease (Pal & Nandy, 2015; Nandy & Pal, 2016c).

2.10 Concepts of Segmentation, Targeting and Positioning for Pharmaceutical Products In pharmaceutical marketing, segmenting, targeting, and positioning (STP) summarize and simplify the overall process of the pharmaceutical marketing framework. Market segmentation is a process in which groups of buyers within a market are divided and profled according to a range of variables, which determine the market characteristics and tendencies. The processes of segmentation, targeting, and positioning are parts of a chronological order for market segmentation (Figure 2.5). Segmentation (S): Identifying a meaningfully diferent group of customers Targeting (T): Selecting which segment(s) to serve/cater

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Segmentation

Targeting

Positioning

Product (P1) FIGURE 2.5

Price (P2)

Place (P3)

Promotion (P4)

Pharmaceutical segmentation, targeting, and positioning framework (PSTPF). Source: Author’s own.

Positioning (P): Implementing chosen alternative/image and appeal to a chosen segment In the following, a brief discussion is made with respect to segmentation, targeting, and positioning (STP) with regard to pharmaceutical marketing in a tabular form (Table 2.5).

2.11 Pharmaceutical Branding and Packaging Thomas Beecham realized over a century ago the importance of branding with his safe and efective laxatives, “Beecham Pills”. A new trend started when a personal guarantee was attached to medicines. When a company establishes a long-term relationship with its customers, it identifes their changing needs and wants and provides products that satisfy or convince them. Pharmaceutical branding also gives drugs a distinct identity. It is an advertising tool that helps promote the drug products in the minds of the target consumers, who are the prescribers (doctors) and patients. Pharmaceutical branding also considers the quality of the drug product and the consumer’s satisfaction (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m). To brand itself, a pharmaceutical company must make the customer feel that they are getting something special, i.e., the customer must believe there is an

a) In pharma marketing, market segmentation is a great way to better understand your target customers. This makes it easy for pharmaceutical companies to create marketing campaigns that really resonate with customers. b) In pharmaceutical marketing, market segmentation is a very powerful tool because it takes a closer look at consumer attitudes and motivations and helps pharmaceutical companies fgure out what customers want and why they want it. c) Market segmentation helps the pharmaceutical companies to understand consumers’ personalities, feelings, values, interests, beliefs, and attitudes. In turn, this can help pharmaceutical companies fgure out what's wrong and ofer the right solutions. d) Psychographic market segmentation provides information about what drives customer behaviour. Patient-brand relationships are strengthened when messages are based on customer attitudes and motivations. e) By segmenting target markets, pharmaceutical companies can get insight into consumer behaviour and demographics, as well as insight into their personality and motivation. (Continued)

Segmentation (S) Segmentation is the process of identifying what types of consumers there are that have diferent needs. A consumer wants a dermatological sunscreen for all skin types, as well as superior benefts such as a matte f nish, which ensures a nongreasy and nonsticky texture, and a formulation that is water-repellent, which provides 6–8 hours of sun protection factor (SPF). Some customers prefer lotion-based sunscreens that have a medium or moderate sun protection factor (SPF) over matte f nishes, while others prefer cream-based sunscreens with a lower SPF. The SPF is a scientifc measurement. It measures how much lower the risk of skin damage is when sunscreen is used. The concept of market segmentation basically explains that “marketers cannot please everyone”, and existing studies conf rm that pharmaceutical companies that specialize in meeting the needs of a specifc consumer group are usually more proftable and sustainable. Pharmaceutical companies are refocusing their eforts from product to customer orientation in an efort to gain a competitive advantage in the changing healthcare environment and better engage with physicians and patients. To achieve marketing objectives and promote better health outcomes, they need to improve the efectiveness of communications and interactions with customers and patients, such as physicians and patients. In order to do this, they can use market segmentation in the following ways:

TABLE 2.5 Segmentation, Targeting and Positioning

Dynamics of Pharmaceutical Marketing 79

Source: Author’s Own.

a) Calcium channel blockers (CCBs) are what “NORVASC” is channel blockers (CCBs). High blood pressure (hypertension) and a type of chest pain are treated with it. The efectiveness of antihypertensive is based on their ability to prevent hypertension-related events. “NORVASC” is reinforced by the fact that treating hypertension has multiple outcomes, including reducing the risk of heart attack, stroke, and heart failure. b) Another successful brand repositioning example is “ARICEPT” (containing donepezil), whose positioning statement promises Alzheimer’s patients that they can live in their own homes while being treated with “ARICEPT”. The idea behind “ARICEPT” is that if “patients can stay at home” (and avoids institutionalization), their symptoms will be sufciently controlled to allow caregivers to handle their care at home. There’s a stronger message here than controlling symptoms or slowing dementia down.

Targeting (T) Targeting' in pharmaceutical marketing entails selecting the segments a pharmaceutical company wishes to reach through diferent channels. It is extremely expensive to maintain a medical representative (MR) for a particular pharmaceutical company. Pharmaceutical companies who plan to target more physicians or clinical experts with their sales force will generally need more medical representatives (MR). The pharmaceutical industry can reduce sales representatives' workloads by targeting fewer patients so they require fewer resources to visit the fewer doctors they target. In this particular example, the pharmaceutical company has chosen not to call its sales team about Category C customers with a small number of patient communities. The pharmaceutical company's top management removes 16,000 physicians from the list of prescribing physicians in a particular market where there are 32,000 general practitioners. The pharmaceutical company sets an exclusion criterion based on the number of patients per day (PPD) or prescriptions per day (PPD) or prescriptions per month (PPM). As a result, [32,000 minuses (-) 16,000 = 16,000] fall into Category A and Category B, which the company's sales team must focus on and maintain. As a result, pharmaceutical companies should target customers in categories A and B who have the ability to prescribe higher volumes of their products (Rx) and gain a signifcant share of the overall market (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Positioning (P) A common question about pharmaceutical brand positioning is: Why do most pharmaceutical companies still target prescribing physicians for prescription (Rx) generation? A healthcare provider (HCP) is traditionally responsible for prescribing patients prescription medications (Rx). In the pharmaceutical industry, focusing on the benefts to HCPs is paramount in prescribing (Rx) a particular pharmaceutical company, and the pharmaceutical industry has not changed its approach. The process of analyzing a brand and determining what makes it relevant to potential healthcare professionals is called brand positioning in pharmaceutical marketing. To facilitate creative communication, a solid positioning strategy is used. It aims to accomplish the following: Relevance, diferentiation, and simplicity are the three criteria for a great advertisement (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m). The following examples illustrate brand positioning. The following examples illustrate brand positioning. Examples include:

TABLE 2.5 (Continued)

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important diference between the products ofered by diferent brands, and only then will they purchase. Pharmaceutical marketers choose either a brand they trust or a brand their customers are loyal to and less likely to switch brands. People can learn about the benefts of medicines and drugs from pharmaceutical brands. During the pharmaceutical brand-building process, a new drug’s commercial life can be extended when it is under patent (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m). Names of drugs must be changed after the patent expires. The brand becomes generic after the patent expires. Communication of a product’s diferentiation from competitors, competitive pricing, and emphasizing its efectiveness are all important components of pharmaceutical brand management. Pharma companies build brands by using a combination of logos, slogans, packaging, names, characters, and symbols (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m) (Figure 2.6). In the pharmaceutical industry, drug marketers think that giving a certain product a name will make it a top seller. Pharma companies are known for their product portfolio, and it takes a lot of cash to build a strong brand. In the minds of consumers (both healthcare providers and patients), pharmaceuticals represent a set of tangible and intangible benefts. Brands exist in the minds of patients and doctors as more than just products. In some cases, foreign direct investment (FDI) is crucial to a drug’s marketing success.

2.11.1 Pharmaceutical Packaging In other words, packaging is the process of creating a package, wrapper, or cover for a product that will be sold to a client or us. Good packaging catches the eye of customers, makes it easy to transport and sell the product, and prevents damage

Trust

Value

Marketing

Pharmaceutical Brand Elements

Design

FIGURE 2.6

Strategy

Pharmaceutical brand elements Conceptualized by the author.

Logo

framework

(PBEF).

Source:

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and theft. It’s what customers see frst. Pharmaceutical packaging should do the following: a) b) c) d)

Branding. Communicate, both descriptively and persuasively. Make sure everyone gets there safely. Be used as a fve-second commercial at the point of purchase.

Drug packaging (or pharmaceutical packaging) is the packaging of pharmaceutical preparations (Wikipedia, 2022a). From the production of the drug through its distribution channels to its use by the end consumer, it covers all operations. Packaging for pharmaceuticals is highly regulated, but the details vary depending on the region or the country of origin (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m). The following factors can be considered: assurance of patient safety, assurance of efcacy over the intended shelf life of the drug, uniformity among diferent lots of the drug, controlled migration of packaging components into the drug, controlled degradation of the drug by oxygen, moisture, and heat, prevention of microbial contamination, sterilization, etc., often involved in dispensing, dosing, and use of the pharmaceutical product. Dispensing, dosing, and using a pharmaceutical product are often associated with packaging. Warning labels must also accurately communicate the proper use of pharmaceutical products that are packaged in many diferent ways. A pharmaceutical package consists of: a) Layer I primary packaging: Immediate packing of a product, for instance: glass bottle of cough syrup. b) Layer II secondary packaging: Extra packaging is given to ensure the protection of the product. For instance: cardboard box to keep the glass bottle of cough syrup. c) Layer III transportation packaging: It is also called fnal packaging that is given for proper storage and transportation, for instance: cardboard cartons in which the cough syrup is transported.

2.11.2 Key Differences between Pharmaceutical Branding and Packaging The points presented in Table 2.6 are substantial so far as the diference between branding and packaging is concerned.

2.12 Recruitment, Selection, Training, and Performance Evaluation of Medical Representatives (MR) Pharmaceutical companies and healthcare professionals (HCPs) communicate primarily through medical representatives (MRs). Whether it is pharmaceutical

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TABLE 2.6 Distinction between Pharmaceutical Branding and Packaging

Sl. Point of No. Distinction 1

2

3

4

Pharmaceutical Branding

Pharmaceutical Packaging

On the contrary, Pharmaceutical branding is the pharmaceutical packaging marketing strategy, in which refers to all the activities the marketer uses a name, involved in designing and mark, or symbol of a product, creating a cover or wrapper to make it easily identifable by for the product to make it the customer, from the products ready for sale and transport. ofered by other competitors in the market (Key Diferences, 2022). Conversely, pharmaceutical Focus area Pharmaceutical branding focuses packaging aims at on identifcation and thus promoting the product at diferentiates the product from the point of purchase and other products in the market. also ensuring protection, during transit (Key Diferences, 2022). As against, pharmaceutical Important Pharmaceutical branding is all packaging integrates Elements about the colour, symbol, components such as the slogan and visual imagery of colour, design, description, the product (Key Diferences, fonts, logo and so forth 2022). (Key Diferences, 2022). Important Pharmaceutical branding is helpful In contrast, the pharmaceutical packaging Role in retaining and increasing is helpful in drawing consumer loyalty, as well as customer’s attention, with introducing a new product its design. under the similar brand (Key Diferences, 2022). Defnition

Source: Author’s own

drugs or medical equipment, the job of a medical representative is to promote and sell their company’s products (Targetjobs, 2022). Patients, primarily physicians, and nurses, usually purchase products from medical representatives. As a medical representative, the person is responsible for increasing awareness of products, answering questions, providing advice, and introducing new products. Some of the key responsibility areas are: a) Arranging appointments and meetings with healthcare staf in the community and in hospitals. b) Finding and establishing new business opportunities. c) Contract negotiations. d) Demonstrating or presenting products to healthcare professionals, such as doctors, nurses, and pharmacists.

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e) Conducting research pertinent to the topic. f ) Helping healthcare professionals with both their business and scientifc needs. g) Keeping comprehensive records. h) Organizing and attending conferences, exhibitions, and other events. i) Budget management. j) Analyzing sales performance. k) Preparation of documents and reports.

2.12.1 Recruitment and Selection of Medical Representatives (MR) Medical representatives are employed by healthcare and pharmaceutical companies. The majority of jobs are advertised online, through careers services, and in newspapers, trade magazines, and publications (Targetjobs, 2022). Additionally, there are several expert recruitment agencies and consultancies that post job vacancies regularly. Speculative applications, shadowing, and networking are recommended. A candidate seeking a position as a medical representative (MR) may beneft from pre-entry sales or hospital/medical work experience. Graduates with relevant qualifcations in life sciences, pharmacy, medicine, nursing, or dentistry are usually preferred by pharmaceutical companies. After completing a period of intensive training (up to two months), new recruits may shadow experienced sales personnel before starting work on their own. Driving licences are also a common requirement. Additionally, employers may look for applicants with a background in sales and the ability to learn scientifc and medical details.

2.12.1.1 Key Skills Required for Medical Representatives (MR) a) b) c) d) e) f) g)

Knowledge of the commercial world. Selling skills. An attitude of maturity. Self-confdence. Possessing patience. Excellent communication and interpersonal skills. Skills in organizational management.

2.12.1.2 Role and Responsibilities of Medical Representatives A “Medical Representative”, generally speaking, is someone who disseminates information about the Company's products to doctors and healthcare providers (HCPs), ensures their availability in the market, and ensures that marketing intermediaries make timely payments. Job duties of an MR fall into three categories and a brief description of each is provided below.

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a. Prescription generation. b. Customer coverage. c. Market intelligence. 2.12.1.2.1 Prescription (Rx) Generation The most critical activity of an MR is to generate sales revenue, and the most efective way to do this is to generate prescriptions for the company’s products from the doctors he meets. A prescription is a written instruction given by a doctor to a patient that tells him which medicine to take at what dosage, how frequently, and for how long. The patient takes this note to a chemist shop where he purchases the required medicines. When the prescription is for your product (or “brand”) the amount paid by the patient to the chemist (or “retailer”) for purchasing the same is routed through the stockist (or “wholesaler”) and distributor to reach the Company. Thus, generating prescriptions for your product is the only force (or “pull”) that results in stocking and selling of your products by the chemists and generating revenue for the company. Remember, this is a challenging task that calls for sincere eforts, regular visits to doctors and chemists/stockists, proper use of promotional inputs including literature and samples of medicines and strict adherence to the work norms laid down by the Company. 2.12.1.2.2 Customer Coverage Additionally, the MR keeps in touch with doctors. As part of the predetermined daily work plan for contacting doctors, pharmaceutical representatives usually create a Standard Visiting List (SVL) for the purpose of giving them pertinent medical marketing information at an appropriate frequency. MRs are tasked with getting to know all the specialities of doctors and promoting the right products to them. Also, he has to collect feedback from the doctors about the products they’re prescribing and deal with complaints or concerns they have with the help of the head ofce (HO), as needed.To ensure the wide distribution of his products, the medical representative must meet with the chemists in his territory. Pharmacy orders can be taken directly by the chemist and forwarded to the stockists/distributors and followed up on if necessary. Products nearing expiration or breakages during transportation or credit/debit notes requiring resolution must be addressed promptly and satisfactorily with the guidance of superiors whenever necessary. Every call made on a customer should be productive. Creating a strong working relationship based on mutual trust and respect with one's customers is the key to achieving the desired results for oneself and the organization. 2.12.1.2.3 Market Intelligence In light of its competitors’ eforts and market conditions, a business’s success or failure depends on its ability to satisfy its customers’ needs. The MR is the

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best person to provide this information as well. The work of a representative includes choosing the appropriate targets, determining the products to promote to them, and informing superiors when competitors are attempting to target the same clients for their products. A “prescription audit” can improve an organization’s understanding of doctors’ prescribing patterns, pharmacists’ stocking patterns, slow- and fast-moving products, and competitors’ promotional activities.

2.12.2 Training of Medical Representatives (MR) Successful selling is a dynamic profession that requires staying current with the latest information about your products and services. In contrast, pharmaceutical salesmen typically face more challenges than their counterparts in other industries. A medical representative doesn’t have the same understanding of medicines and diseases as a prospect (a doctor or healthcare provider). The role of the pharmaceutical representative in introducing the company’s products to doctors and what efect does he or she have? His knowledge needs to be on par with that of the doctor himself. A medical representative (MR) is trained aggressively by doctors and medical sales managers in pharmaceutical sales classroom sessions during their frst month working for a pharmaceutical company. The training is usually full time. After completing this sales training, they go to the market and work. The comprehensive sales training curriculum covers the following fve types of training (Figure 2.7). a) Anatomy and Physiology: This includes learning how the body works, the different organs and parts, and what happens when they function abnormally. A doctor usually conducts this training (Pharmamarketingexperts, 2017).

Diseases Anatomy and Physiology

Drugs Training of Medical Representatives (MR) Embracing Digital Technology

Sales Process Handling Objections FIGURE 2.7

Training of medical representatives framework (TMRF). Source: Author’s Own.

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b) Diseases: Do the company’s medicines treat any diseases? If so, what are their symptoms? What is the company’s future? c) Drugs: How are certain diseases treated with certain drugs? How does the drug treat the disease, and what are its indications and contraindications? An expert in pharmaceutical marketing provides the training with respect to the impact of drugs in the human body to the feld-force of a pharmaceutical company (Pharmamarketingexperts, 2017). d) Sales Process: The training is coordinated with training for medical representatives who have completed their medical training in order to learn how to introduce and promote drugs and companies, how to start a conversation, and how to work with doctors. Efective communication with the doctor depends on this sales process. A senior sales trainer delivers this training, which usually covers soft skills needed to close the sale (Pharmamarketingexperts, 2017). e) Handling Objections: The medical representatives (MR) are also trained in how to handle objections from doctors. Answering the prospect in a dignifed and respectful way without being harsh. Upon completing medical representative training, a medical representative (MR) can work with doctors and market pharmaceutical company’s drugs. To ensure that sales representatives are always productive, this intensive training of one month should be reinforced continuously (Pharmamarketingexperts, 2017). f ) Embracing Digital Technologies: In order to efectively market pharmaceutical products, detailing bags are the old school approach. In the current context, medical representatives have groomed themselves to better connect with doctors on the digital platform. Medical representatives use video clips along with 3D animation to explain to customers the dosage and efectiveness of a particular drug or device (Hindustantimes, 2022). Pharmaceutical companies across the world invest time and money in imparting quality training programmes to embrace new technologies such as 360 degrees 3D Virtual Reality (VR) contents, iPads, and innovative digital content in order to keep up with the current methods and meet the requirements of the growing medical community (Pharmamarketingexperts, 2017; Landwehr, 2015).

2.12.3 Performance Evaluation of Medical Representatives (MR) Numbers never lie, and sales are a numbers game. In spite of this, numbers are often insufcient to judge a medical representative’s (MR’s) performance. There may not be an accurate measure of how efective a medical representative (MR) is in the team and in the company provided by the medical representative’s performance report. Moreover, every pharmaceutical company evaluates its medical representatives (MR) diferently as well as meets its sales objectives using diferent methods and metrics. Pharmaceutical business leaders and senior sales managers consistently evaluate the performance of their sales team from a systematic and scientifc approach in order to make sure their employees are engaged and

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Setting Sales Metrics and Goals Rewarding the Right Behaviours Setting Regular Performance Reviews Sales Assessments vs. Metrics Performance Evaluation of Medical Representatives Framework (PEMRF)

Sales Is Not “Only” a Numbers Game The Sales Performance Metrics That Matter Measuring Sales Activity Metrics Measuring Sales Results Metrics Measurement Sales Activity Metrics Key Performance Indicators (KPIs) Looking at the Bigger Picture The Two Vital Sales Skills

FIGURE 2.8

Performance evaluation of medical representatives framework (PEMRF). Source: Author’s own.

inspired after the performance evaluation process. Performance reviews must be fair, results oriented, and looked forward to by their employees. Performance reviews make it easier for employees to accept negative outcomes when they are fair. Thus, most pharmaceutical companies follow the following steps basically before they review the performances of their medical representatives (MRs) for the upcoming year (or strive to improve) (Figure 2.8) (Table 2.7).

2.13 Sales Force Effectiveness (SFE) in International Pharmaceutical Industry (IPI) Pharmaceutical companies have been discussing sales force efectiveness (SFE) for many years. Sales and marketing are a major component of the costs of large pharmaceutical companies. The marketing and sales activities of pharmaceutical companies are also heavily invested. However, sales and marketing costs tend to be larger than research and development costs. In the existing studies, it has been identifed that largest pharmaceutical companies spend almost 50% more on sales and marketing activities than on R&D activities. Multinational corporations (MNCs) are primarily concerned with “Sales Force Efectiveness”. Probably the most important factor in determining a company’s revenue is its sales force since it establishes relationships with clients. Many pharmaceutical companies hire professionals with specialized knowledge and training in sales force efectiveness (SFE). The goal of his/her role is to monitor and benchmark the activities of the

Setting Sales Metrics and Goals: Setting the metrics f rst is imperative to any performance review – and revenue is the most important metric. It is always the number of sales that medical representatives (MR) make in the marketplace that determines whether they will succeed or fail. For generating the revenue of the pharmaceutical companies, the medical representatives of the pharmaceutical companies had followed COVID19 norms and compliances through digital platforms and physical contact during the unprecedented COVID-19 time period. Of course, this number will vary depending on the pharmaceutical industry, the type of products or services pharmaceutical companies ofer, and even the time of year. The bottom line will always be afected by this number. In addition to setting up its sales quota, specifc goals, and incentive and compensation management, the pharmaceutical company can also set its sales quota. As a result, pharmaceutical companies should measure these aspects in their sales teams’ productivity. Rewarding the Right Behaviours: To ensure that desired things get done on a priority basis, pharmaceutical companies need to communicate their metrics clearly to medical representatives (MR). Providing incentives to medical representatives (MR) will ensure that desired results are achieved. Sales managers, medical representatives, and everyone on the sales team may know the metrics. Pharma sales professionals will be more motivated to close more deals with prospects if they are ofered an enticing incentive. In order to achieve revenue generation, pharmaceutical companies need to make sure that all employees are on board with whatever needs to be done. This will help establish the sales culture for the company. The pharmaceutical industry expects what it measures to be accomplished – so measure what's critical to the company and what pharmaceutical companies want their medical representatives to achieve (Insidesales, 2019). Setting Regular Performance Reviews: A culture of accountability can be fostered by having regular performance reviews with medical representatives (MR). Typically, sales leaders conduct quarterly, annual, or monthly reviews – but weekly reviews are not uncommon. Pharmaceutical companies may choose to make their weekly reviews informal or formal; however, monitoring the performance of their medical representatives (MR), in shorter periods of time can assist the company in identifying problem areas at an early stage. If a problem occurs in either the company's sales strategy or the sales team, pharmaceutical companies will be able to come up with solutions faster (Insidesales, 2019). Sales Assessments vs. Metrics: When working with their sales teams, pharmaceutical business leaders and sales managers usually use both the Sales Assessment (reviews) and the Sales Metric. When working with medical representatives (MRs), one type of evaluation is not enough to evaluate their efciency. A leader must not only achieve revenue targets, but he or she must also have a positive attitude, be motivated and self-driven, and exercise leadership skills. Starting from the medical representative (MR) to the sales manager, work ethic, integrity, and drive are critical components of success. The attitude and values of a medical representative (MR) may not be at the same level as their quota management skills. As part of the medical representative's (MR) sales performance management, these qualities should be considered as well. Potential attitude problems can be prevented when ethics and values are considered in the sales metrics evaluation (Insidesales, 2019). (Continued)

TABLE 2.7 Performance Evaluation of Medical Representatives

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Sales Is Not “Only” a Numbers Game: Regular assessments provide a more comprehensive picture of a team’s capabilities than metrics, which are considered more important by some leaders. When it comes to sales activities, quality and quantity are two factors to be considered. Conducting monthly and even weekly assessments can help management identify what is causing the drop in numbers. The sales process can be improved by regularly evaluating sales. A career in pharmaceutical sales is much more than a job. A large part of the pharmaceutical industry’s success is driven by quality customer service. Unfortunately, some believe the science of sales is purely quantitative. Besides calling volumes, understanding the diference between quality and quantity is also important. The Sales Performance Metrics That Matter: Specifc, measurable, attainable, realistic, and time-sensitive standards should be used to measure sales performance. A pharmaceutical company can only accurately refect a salesperson’s drive and accomplishments this way. In addition, the metrics should refect the pharmaceutical company’s needs to increase revenue. Sales coaching is also aided by specifc performance criteria. Measuring the sales team's activities is very important if a pharmaceutical company wants them to act. Often, whatever pharmaceutical companies measure will be accomplished. Therefore, measure what pharmaceutical companies want their medical representatives (MR) to accomplish (Insidesales, 2019). Measuring Sales Activity Metrics: It is much harder to pick activity metrics than sales results metrics. Diferent pharmaceutical companies will have diferent metrics and sales strategies based on their sentiments and goals. Such strategies include activities related to a company’s sales goals. Since pharmaceutical companies may have diferent processes than their counterparts or competitors (Insidesales, 2019), they should not simply copy the activity metrics from other companies. Measuring Sales Results Metrics: It is not always the case that sales are all about revenue numbers. The sales organization structure now includes roles not always associated with closing deals. Therefore, their infuence will be limited. For example, sales development and feld sales are two of these roles. The number of sales calls and the length of time spent on each call are good metrics for an inside sales team. The number of face-to-face meetings may be the determining factor for a feld sales team. Medical representatives (MRs) role and function infuence how sales performance is measured. The practice of corporate social responsibility (CSR) activity is sometimes taken up by multinational pharmaceutical companies (MNC) which can afect the brand and reputation of the company, which can, in turn, impact the company’s f nancial performance (Nandy & Biswas, 2015).

TABLE 2.7 (Continued)

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Top Performers: Sales professionals who can generate leads as well as close deals. Deal Maker: The dealmaker is a salesperson who excels at closing deals but isn’t strong at generating leads. Pipeline Builder: A pipeline builder (MR) specializes in pipeline generation but lacks the ability to close. Underperformer: A lack of skills both in pipeline generation and closing sales deals characterizes underperformers.

Source: Author’s Own.

a) b) c) d)

a) Immediacy – How quickly does your sales team respond to leads? b) Persistence – How persistent is your sales team in responding to leads? c) Is your team able to book appointments quickly? Looking at the Bigger Picture: Pharmaceutical companies will be able to have a comprehensive picture of a medical representative's performance by measuring both results and activity. Pharma companies examine the whole picture when evaluating sales performance to gain a more in-depth understanding. In addition to the number of activities, call time, type of sales activities, and the number of deals, pharmaceutical companies also look at the number of activities. All aspects of your business should be strong (Insidesales, 2019). The Two Vital Sales Skills: Leaders in sales – whether they are Chief Revenue Ofcers (CROs), Sales Vice Presidents, or even Sales Managers – are always looking for new ways to achieve their quota, and these are essentially two ideas. The f rst is generating pipeline and the second is closing sales. It is imperative for medical representatives (MRs) to build more and better pipelines, and they must close deals. (Insidesales, 2019) These are the two metrics that are truly important. In a Sales Efectiveness Assessment, the following skills will be evaluated and categorized:

Measurement Sales Activity Metrics: Performance reviews are more accurate when sales activity metrics are measured. A pharmaceutical sales manager can spot a problem when a medical representative (MR) is very active but not very successful. Skills are either not well balanced or there are dividing lines in territories. In addition to motivating medical representatives (M.R.s) to optimize their schedules and increase productivity, activity metrics can also assist in improving sales (Insidesales, 2019). Key Performance Indicators (KPIs): Additionally, there are other key performance indicators (KPIs) that determine the value of each medical representative (MR). By analyzing these KPIs, the company is able to determine whether its medical representatives (MRs) are performing well. How can KPIs be measured? An individual or team can achieve the business or organization's goals by evaluating a series of quantifable measures. Pharma business leaders pay attention to sales KPI’s like conversation quality, persistence, responsiveness, and the percentage of leads that are responded to (InsideSales, 2019). Three KPIs measure the immediate response to leads, which is one of the key factors for success, including:

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sales force so that every call to a physician is more efective and, therefore, more proftable for the pharmaceutical company (Mantzafos, 2021).

2.13.1 Important Drivers of Sales Force Effectiveness (SFE) Pharma companies strive to improve the productivity and competencies of their sales teams, which are composed of sales professionals at diferent levels of hierarchy, as part of “Sales Force Efectiveness”. In order to be successful, pharmaceutical companies must realize the importance of sales force efectiveness (SFE). Listed below are the most signifcant factors that determine a pharmaceutical company’s success or failure (Figure 2.9). This list of sales force efectiveness (SFE) metrics is not exhaustive. In spite of the fact that there are various measures that defne sales force efectiveness, the ten metrics listed above are the most useful and impactful for pharmaceutical companies. For pharmaceutical marketing companies, there are a variety of factors that determine the efectiveness of sales forces, but the ten metrics below are the most useful and impactful. A good rule of thumb is that every SFE manager should focus on activities that strengthen customer interaction, increase customer coverage, and fnally boost customer satisfaction. By improving SFE metrics, sales representatives will also become more efcient and perform better. A brief discussion is given below for the aforementioned drivers in order to understand sales force efectiveness (SFE) better (Mantzafos, 2021). Market segmentation: If they target the wrong healthcare professionals, no sales team can be efective. As a result, large pharmaceutical companies keep very detailed records of healthcare professionals that are updated on a regular basis. It is not surprising, then, that some companies specialize in providing their customers with this information. Targeting specifc customer segments is more efcient than addressing all of them at once (Mantzafos, 2021).

Market Segmentation

Value Proposition

Sales Force Size

Recruiting Methods

Territory Design

Metrics of Sales Force Effectiveness

Call Frequency to HCPs FIGURE 2.9

Goal Setting

Incentive Schemes

Coaching

Training

Sales force efectiveness metrics framework (SFEMF). Source: Author’s own.

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Value proposition: A product’s distinctive features are an important factor that contributes to success. HCPs should be informed if a company’s product is similar to one of its competitors, but is signifcantly less expensive. Marketing and sales departments must fnd a way to ofer products and services that enable sales reps to target potential customers more efectively (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ). Sales force size: The size of a feld force afects both reach and frequency. When deciding on the number of sales representatives, sales managers should keep in mind that suboptimal team size can lead to disappointing results. As a result, the entire company could be held back from selling a promising product. On the other hand, a sales team that is too large will cause the number of employees to decrease in the future. As a result, the morale of the sales force will drop signifcantly (Mantzafos, 2021). Recruiting methods: When the sales team is not stafed with the right people, no sales force efectiveness (SFE) method will work. In order to hire the best sales talent, companies must ensure they have systems in place to hire the right people (Mantzafos, 2021). Territory design: Pharmaceutical companies need to carefully plan their territories if they want to build an efective sales team. Territory allocation should be done in such a way as to avoid large diferences in territory potential among salespeople. A company that treats its salespeople unfairly will end up with unhappy salespeople who cover territories with the lowest potential (Mantzafos, 2021). Call frequencies to the healthcare providers (HCPs): The medical representatives become familiar with the prescribing doctors for the company by meeting them regularly, such as four times a month, three times a month, two times a month, or once a month. The job of a medical representative is to discover and address the individual needs, wants, objections, and concerns of physicians. In order to make better-informed prescribing decisions, medical representatives need as much information as they can get from a routine doctor’s appointment (Mantzafos, 2021). Goal Setting: The setting of goals also contributes to the efectiveness of a sales force. Sales force morale will be low if goals are set too high. Conversely, if the sales team’s goals are too low, it becomes complacent and unenthusiastic. To set the right goals for their teams, sales managers need to forecast sales correctly. This can sometimes be challenging, especially for a new product company (Mantzafos, 2021). Incentive schemes: It is imperative that incentive programmes keep salespeople motivated and committed to the company's goals. A motivating strategy that is able to account for the businesses professionals will result in a more efective sales force (Mantzafos, 2021). Coaching: It is widely known that pharmaceutical sales are a dynamic profession. Pharmaceutical sales representatives (MRs) must continually update their knowledge of pharmaceutical products and services if they are to succeed in

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their careers. Nevertheless, pharmaceutical sales representatives’ tasks are more complex than their counterparts in other industries, so scientifc coaching is an essential element of training and empowering pharmaceutical sales representatives. Doctors are the primary customers here since they know more about drugs and diseases than the MR. Proper training will help the MR to make a good impression in the doctor’s chamber. What is the best way for an MR to pitch his company and its products to a physician? In this case, the answer is: the marketing representative has to be as well informed as the physician in order to convey to the physician well the company’s brands that MR has presented or promoted to the physician in detail. (Mantzafos, 2021). Training: A pharmaceutical company’s medical representatives (MRs) are trained by physicians and medical sales managers during a month-long pharmaceutical sales training programme. This is typically a full-time training programme. After completing the sales training, they enter the marketplace and begin to work in the feld. The following is a table of the fve types of training ofered by a comprehensive sales training system consisting of anatomy and physiology, drugs, diseases, sales process, and objection handling (Mantzafos, 2021). SFE managers must evaluate some of the above factors using several approaches and statistical methods. Most sales managers use the above-stated common approaches to determine the size of their sales force. No matter what method is used by a company for each sales efectiveness factor, it should produce consistent results to make the sales team more productive and efcient (Mantzafos, 2021).

2.13.2 The Future of Sales Force Effectiveness (SFE) In the 21st century, pharmaceutical companies increasingly convert their traditional sales force into orchestrators. When combining traditional and multichannel approaches to increase their market impact, a sales representative is an “orchestrator”. In an era where physicians are increasingly seeking information, pharmaceutical companies must deliver tailored messages. There are many regulations in the pharmaceutical industry, so this is a challenging step. Despite this, some companies have already integrated the most advanced tools into their sales force (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ). Multichannel marketing eforts improve signifcantly when the sales team itself engages in such activities. Multichannel tools contribute signifcantly to the efectiveness of the sales force. To summarize, large pharmaceutical companies are currently experimenting with several strategies to increase the efectiveness of their sales force. In the past, the interaction with physicians, the accessibility of HCPs, and the performance and enablers of the sales force were the major drivers of sales force efectiveness. In the short term, multichannel marketing investments that raise sales rep productivity have shown positive. Pharmaceutical companies will have difculty integrating these tools seamlessly into their sales teams, but the benefts will certainly be worth the efort and

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Connecting new customers

Managing regulatory norms and compliances

Exploring the Opportunities CRM in International Pharmaceutical Industry

Planning for Future Needs

FIGURE 2.10

Innovative Marketing Solution

CRM in international pharmaceutical industry framework (CRMIPIF). Source: Author’s own.

investment. In short, the companies that manage to maximize the impact of their sales calls will win in sales (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

2.14 Customer Relationship Management (CRM) in the International Pharmaceutical Industry (IPI) IPM (international pharmaceutical market) is booming just like any other global market. Multinational pharmaceutical companies have a hard time generating signifcant revenue to sustain their business. In order to maximize fnancial returns, multinational (MNC) pharmaceutical companies have adopted innovative strategies (Nandy, 2022f, 2022g; Getoncrm, 2022). Multinational (MNC) pharmaceutical companies have used customer relationship management (CRM) to reach out to more consumers. CRM is important in the international pharmaceutical business (Getoncrm, 2012) (Figure 2.10).

2.14.1 Connecting New Customers Physicians are typically the primary customers of multinational pharmaceutical companies. Global drug companies (MNCs) now target other customers,

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like pharmacists and patients, as the market has grown. This strategy can be implemented by multinational companies by integrating software-based CRM in order to get in touch with new accounts or lead sources faster. In order to be successful, organizations need CRM (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

2.14.2 Exploring the Opportunities Global pharmaceutical companies can identify new opportunities from leads with the help of software-based CRM solutions. By automatically capturing foreign customers’ conversations, pharmaceutical companies are able to track their foreign customers. Additionally, multinational companies are able to customize the communication channel for their customers. Hence, multinational (MNC) pharmaceutical companies should easily access the history of the consumer and work hard to close the deal.The advantage will eventually be taken by its business rivals or competitors if a multinational (MNC) pharmaceutical company misses the update. In this light, multinational (MNC) pharmaceutical companies would do well to incorporate CRM into their daily operations (Getoncrm, 2022).

2.14.3 Innovative Marketing Solution Pharmaceutical companies, using CRM software-based solutions, can learn about prospective customers through the platform by interacting with them and learning about their needs, desires, and aspirations. CRM depends on this opportunity to inform consumers about what multinational companies (MNCs) in the pharmaceutical industry have to ofer. The MNC pharmaceutical companies would ultimately be able to save substantial amounts of money on other marketing initiatives. The best way to guarantee conversion is to engage the customers within the marketing ideologies. Among the easiest ways to improve the operations of multinational pharmaceutical companies is to use multichannel marketing strategies (Getoncrm, 2022; Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f).

2.14.4 Planning for Future Needs Despite their extensive resources, multinational pharmaceutical companies cannot accurately predict what items, medications, treatments, or other healthcare solutions will be required in the distant future. It is necessary for multinational pharmaceutical companies (MNCs) to fnd a solution to healthcare needs that are unpredictable. Using CRM-based software solutions will allow pharmaceutical companies to meet current healthcare needs and to set a brief vision of what their future healthcare agendas will be (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f).

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2.14.5 Managing Regulatory Norms and Compliances Through the use of software-based customer relationship management (CRM) solutions, multinational (MNC) pharmaceutical companies can eliminate governmental regulation constraints such as laws, policy regulations, and others. The CRM team will help multinational (MNC) pharmaceutical companies to stay on top of the new, changed regulations on the international pharmaceutical market, helping the company develop marketing strategies to get over these present-day hurdles. Here are some of the reasons that explain how software-based CRM solutions may make multinational (MNC) pharmaceutical companies run their global business processes more efciently and in a more seamless manner (Infogalantic, 2015; Nandy and Pal, 2016f; NBC news, 2013; Pharma news intelligence, 2022; Pharmawisdom, 2017).

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available at: https://www.amazon.in/Pharmaceutical-Marketing-Applied-Approach -Crown /dp/938853655X /ref =sr _1 _ 2 ?cr id=M AZ2HFQM9XVS &key words =m it hu n + n a nd y &q id =16 437019 6 4 & s =b o ok s & s pr e f i x =m it hu n + n a nd y %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders in Indian Context, Sustainable Development and Informatics. Lincoln Research and Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3 ?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/dp /9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid =1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6.

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Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020-0067. Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1. NBC News. (2013). “Novartis Loses Landmark Drug Patent Battle in India”, available at: https://www.nbcnews.com/business/business-news/novartis-loses-landmark-drug -patent-battle-india-fna1c9145349 (accessed 4th September 2022). Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Pharmamarketingexperts (2017). “5 Types of Training Every Pharmaceutical Sales Representative Needs”, available at: https://pharmamarketingexperts.blogspot.com /2017/03/5-types-of-training-every.html (accessed 12th February 2022). Pharma News Intelligence. (2022). “Fundamentals of the Pharmaceutical Supply Chain”, available at: https://pharmanewsintel.com/news/fundamentals-of-the -pharmaceutical-supply-chain (accessed 25th August 2022). Pharmatutor. (2015a). “Review Study on Factors Afecting the Prescription Pattern of Physicians”, available at: https://www.pharmatutor.org/articles/review-study-on -factors-afecting-the-prescription-pattern-of-physicians (accessed 10th January 2022). Pharmatutor. (2013b). “A Review on Marketing of OTC Drugs”, available at: https:// www.pharmatutor.org/articles/review-marketing-over-the-counter-drugs (accessed 15th February 2022).

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Pharmawisdom. (2017). “Role & Responsibilities of Salespersons in Pharmaceutical Industry”, available at: http://pharmawisdom.com/Role-and-Responsibilities-of -Salespersons-in-Pharmaceutical-Industry.html (accessed 9th February 2022). Pilla, V. (2022). “Indian Pharma Market Grew 14.1% in July, AIOCD Report”, available at: https://economictimes.indiatimes.com/industry/healthcare/biotech /pharmaceuticals /indian -pharma -market -grew-14 -1-in -july-aiocd -report / articleshow/93375727.cms?utm _source=contentof interest&utm _medium=text &utm_campaign=cppst (accessed 3rd September 2022). Poonia, M. & Bhardwaj, S. (2015). “Importance of Patents in Pharmaceutical Industry”, available at: http://www.pharmabiz.com/ArticleDetails.aspx?aid=92383&sid=21 (accessed 4th September 2022). Roy, S. (2022). “Indian Pharma Market Sees 14.1 Percent Growth in July Sales: AIOCD AWACS Report”, available at: https://medicaldialogues.in/news/industry/pharma/ indian-pharma-market-sees-141-percent-growth-in-july-sales-aiocd-awacs-report -97181?infnitescroll=1 (accessed 3rd September 2022). Sa Pharmacy. (2022). “Generic Medicine”, available at: https://sapharmacy.co.in/ (accessed 14th February 2022). Sagacious IP. (2022). “How Patents Help Protect Pharmaceutical Innovation”, available at: https://sagaciousresearch.com/blog/patents-protect-pharmaceutical-innovation/ (accessed 4th September 2022). Sun Pharma. (2022). “About Us”, available at: https://sunpharma.com/about-us/ (accessed 2nd September 2022). Targetjobs. (2022). “Medical Representative: Job Description”, available at: https:// targetjobs.co.uk /careers -advice/job -descriptions/medical -representative -job -description (accessed 14th February 2022). The Guardian. (2013). “Patent Wars: Has India Taken on Big Pharma and Won?”, available at: https://www.theguardian.com/sustainable-business/patent-wars-india -takes-on-big-pharma (accessed 4th September 2022). The Hindu Business Line. (2018). “Mankind Pharma Appoints Amitabh Bachchan as Brand Ambassador”, available at: https://www.thehindubusinessline.com/companies/ mankind-pharma-appoints-amitabh-bachchan-as-brand-ambassador/article9930280 .ece (accessed 3rd September 2022). The New York Times. (2001). “Indian Company Ofers to Supply AIDS Drugs at Low Cost in Africa”, available at: https://www.nytimes.com/2001/02/07/world/indian -company-ofers-to-supply-aids-drugs-at-low-cost-in-africa.html (accessed 3rd September 2022). Times of India. (2021). “Anti-Covid Drug Now Top-Selling Pharma Brand”, available at: http://timesofndia.indiatimes.com/articleshow/82540028.cms?utm _source=contentofnterest&utm_medium=text&utm_campaign=cppst (accessed 3rd September 2022). Walden University. (2022). “Is Patent Protection Hindering or Helping Healthcare Management?”, available at: https://www.waldenu.edu/programs/health/resource /is-patent-protection-hindering-healthcare-management (accessed 4th September 2022). Wikipedia. (2022a). “Drug Packaging”, available at: https://en.wikipedia.org/wiki/ Drug_packaging (accessed 18th February 2022). Wikipedia. (2022b). IQVIA, retrieved from https://en.wikipedia.org/wiki/IQVIA#:~ :text=2%20Controversies-History,VIA%20(by%20way%20of ) (accessed 30th December 2022).

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3 STRATEGIC ADVANTAGES IN PHARMACEUTICAL MARKETING

3.1 Identifcation of the Pharmaceutical Market Pharmaceutics marketing consists of promoting drugs and devices to physicians, clinicians, and consumers by private or public organizations. In the pharmaceutical industry, understanding consumer needs is more important than creating or improving products for a specifc market segment. By identifying a pharmaceutical market, pharmaceutical marketing focuses on fnding solutions to customer healthcare needs (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v) (Figure 3.1). It is important for an organization’s marketing eforts to focus on identifying the most in-demand services, but insight into market segmentation allows for more efective marketing. Pharmaceutical companies can target their specifc oferings by segmenting the market in order to reach their target customers efciently and efectively (Pharmaceutical Outsourcing, 2015). Knowing the market segmentation isn’t enough to achieve success. Pharmaceutical companies must identify and determine why certain segments are correlated or cause certain segments within their operating markets in order to succeed. In the absence of an in-depth understanding of the needs and wants of their customers, businesses are at risk of misinterpreting them. Furthermore, market research frms can be used to develop marketing plans that meet the goals and objectives of pharmaceutical marketing companies as an alternative to in-house research teams, statisticians, and economists (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). DOI: 10.4324/9781003313168-3

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Promotion of Drugs and Devices to the Physicians’ Understanding the unmet healthcare need of the patients / consumers

Pharmaceutical Marketing

Creation and Improvement of Drug Product Identification of Pharmaceutical Market Promotion of Drugs and Devices to the Physicians’ Finding solutions to customer healthcare needs

FIGURE 3.1

Insights of Pharmaceutical Marketing Framework (IoPMF). Source: Author’s Own.

It is particularly common in the pharmaceutical outsourcing sector for there not to be enough companies large enough to meet the needs of an entire market scenario or situation. Identifying specifc segments of the market that are most applicable to their organizations’ particular oferings helps contract research organizations (CROs) and contract manufacturing organizations (CMOs) maximize the efectiveness of their marketing campaigns (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k; 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). The segmentation of industrial markets is commonly assessed from three perspectives: a) Geography-based segmentation. b) Demographic segmentation. c) Behaviour segmentation. Currently, data plays an increasingly important role in marketing and measuring the pharmaceutical market, as well as analyzing the problems and prospects. In addition to measuring the efectiveness of their marketing strategies, pharmaceutical companies can utilize analytics to eliminate the risk of knee-jerk decisions before entering a new market. Analytical decisions can save pharmaceutical marketing companies time and money. It is essential to consider sales, costs, and profts in a marketing analytics system (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, ,2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

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3.2 Understanding Pharmaceutical Market Behaviour Pharma marketers need to understand the behaviours of healthcare providers (HCPs) (Pharmaphorum, 2022; Leonard, E., Wascovich, M., Oskouei, S., Gurz, P., & Carpenter, D. 2019). Creating medications for illnesses is not enough for companies to gain market penetration; they must also understand doctors’ prescribing habits and patients’ behaviour in order to provide them with products that are suitable for both groups. As healthcare systems around the world adjust to strict lockdown rules, pharmaceutical and healthcare companies are investing in digital marketing. The trend may continue once the global emergency has ended. Globally, pharmaceutical businesses have been compelled to change their work processes following the COVID-19 outbreak. Pharmaceutical and healthcare companies have been at the forefront of this change, with an enormous increase in the use of digital communications across the board (Fishbein, M. and Ajzen, I., 2010; Staines, R., 2021).

3.2.1 Understanding Patient Behaviour Manufacturers of pharmaceuticals should not assume that patients follow the directions on the packaging or from their doctors all the time. Only about half of patients adhere to instructions, according to the World Health Organization (WHO). As a result, half of the patients are taking medications incorrectly, potentially leading to adverse side efects or making the medication inefective. Therefore, if we put ourselves in the patient’s shoes, we can see them becoming discouraged with the medication and therefore stopping to take it or switching to another brand. This is pharma marketers’ biggest challenge. It is in the interest of behavioural marketing to understand these seemingly irrational patient behaviours and therefore fnds ways to collaborate with patients and healthcare providers (HCPs) to ensure medication is taken properly in light of advice and recommendations provided by HCPs. Working directly with patients is part of this responsibility (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Example: Information about the products’ usage should be provided along with them. Educating healthcare providers can have an even greater impact since they can tell patients how to use medications properly. Ultimately, the pressure is on pharmaceutical companies to create products that are easy to use and ft in well with patients’ existing behaviour patterns.

3.2.2 Developing Marketing Campaigns Based on Consumer Behaviour Understanding patient behaviour is necessary for an efective marketing campaign. Pharmaceutical marketers must understand the type of marketing materials patients

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respond to and how context infuences their response. When patients/consumers consult their doctors, they are more likely to ask them about a product. For pharmaceutical marketing to be efective, current, useful information must be provided in order to prompt patients to take action and request the medication (Nandy, M. 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). About three-quarters of current suferers remain undiagnosed with certain conditions, including mental illnesses such as depression and bipolar disorder. Patients with conditions such as osteoporosis or hypertension also go unnoticed more than half the time. In order to motivate patients to seek medical attention, pharmaceutical marketers must help them recognize worrying symptoms. It is not only possible to increase the number of customers taking a specifc drug by enabling early diagnosis and treatment of conditions, but it is also possible to improve health. Behavioural marketing is particularly efective in the digital sphere as well. It is possible to ofer targeted advertising to consumers based on their browsing habits (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Brand managers must consider online behavioural targeting to ensure that their messages are seen by the right users, at the right time (NCBI, 2022). In compliance with online privacy legislation, brand websites can provide consumers with more relevant marketing. Someone exploring a pharmaceutical company’s website for information about a particular condition might be shown advertisements for a non-branded educational website about the condition that could help them, rather than less relevant websites with unreliable information (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). The following three factors are primarily considered by pharmaceutical companies when determining patient fraternities. Personal factors: The patient’s interests and opinions are personal factors. The demographics of these factors include age, gender, culture, profession, background, etc. Psychological factors: Everyone’s perceptions and attitudes will infuence their response to a particular marketing campaign. In addition to this, a person’s ability to comprehend information, their perception of their need and their attitude will also play a role. Social factors: Factors of peer group infuence include family, friends, and social media infuence. Social class, income, and education level are also considered.

3.3 New Pharmaceutical Product Planning and Development Process The new pharmaceutical product planning is the function of the top management personnel and specialists drawn from sales and marketing, research and

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development (R&D), manufacturing and fnance (Bedi, N., Bedi, P M S, Sooch, B.S., 2013). Pharmaceutical companies generally follow the steps mentioned below while developing a pharmaceutical product. a) Generation of new product ideas: In product planning and development, the frst step is the generation of ideas for the development of new or innovative pharmaceutical products. In addition to internal sources like the company’s own research and development department, managers, sales force personnel, and scientists, ideas can also come from external ones like customers, dealers, competitors, consultants, and scientists (Bedi et al., 2013). In this stage, management hopes to come up with more and better product ideas, so that the most practical and proftable ones can be screened subsequently (CBO, 2021; Sarthaks, 2022). b) Screening of ideas: Screening ideas involves examining them closely and in detail to determine which ones are likely to make a signifcant contribution to marketing objectives. A system for screening the generated ideas is more important than the generation of ideas. Screening ideas properly is essential as any idea that passes this stage will cost the frm in terms of time, money, and eforts at subsequent stages in product development. c) Product concept development: A product concept must be developed for those products that pass the screening stage – identifying physical features, benefts, price, etc. of the product. In this stage, a product idea becomes a product concept, i.e. a product which will be accepted by the target market. d) Commercial feasibility: At this stage, it is important to determine whether or not the proposed product idea is commercially feasible. Costs of production and marketing should also be considered. In addition, the management should ensure that the product concept is compatible with the technological, human, and fnancial resources of the organization. e) Product development: The development of pharmaceutical products includes engineering and design activities. As the engineering department creates the concert form of the product, it takes into account the required size, shape, design, weight, colour, etc. of the product concept. Limited-scale prototypes of the product are made. Additionally, decisions are made about packaging, branding, labels, etc. f ) Test marketing: It is important to test the product in an authentic sales environment to determine how consumers respond to it. The product can be improved based on consumers’ reactions. g) Commercialisation: Following the management’s approval of the test marketing results, the company launches a full-scale production, marketing, and promotion programme. During this stage, a new product is born and enters its life cycle process.

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3.4 Management of New Pharmaceutical Product Launch and Re-launching a Pharmaceutical Product 3.4.1 New Pharmaceutical Product Management The cost of launching a new product is one of the biggest expenses incurred by pharmaceutical companies worldwide. By choosing the right product launch strategy, physicians, Key Opinion Leaders (KOLs), and patients will be able to recognize and accept the product. Developing drugs and conducting clinical trials are important aspects of pharmaceutical companies’ business. The burden becomes too heavy on all pharmaceutical companies if a new product launch plan does not produce the desired results. In spite of the importance of clinical diferentiation to ensure a drug’s success, there are many examples of successful drugs that weren’t considered major breakthroughs during the launch of the product. In pharmaceutical companies today, launching a new product requires greater coordination across every business function, including market access, patient services, medical afairs, regulatory, marketing, and sales. Following are some strategies that have been tried and tested by companies in the pharma industry to improve a new product launch. a) Go beyond clinical trial results: New product launches in the pharmaceutical industry face unprecedented levels of competition. From approximately eight years to less than fve years, the average time in which a drug remains on the market before competitors arrive has decreased. It is very difcult for pharmaceutical companies to diferentiate their drugs in front of physicians, health insurers, and regulators using phases III clinical trial data alone. New product launches can only be successful if companies are adept at communicating the clinical and non-clinical benefts of a new product to physicians and decision-makers. b) Focus on timing: In the pharmaceutical industry, timing is crucial to a new product launch. A pharmaceutical company must plan and be prepared months in advance of the actual launch date of the new product. Companies can begin discussions on social media platforms and forums about the disease being addressed as the launch date gets closer. Using the same channels, they provide actionable promotional content after the launch of the new product. Scientifcally accurate information is needed from pharmaceutical companies on how their new product can combat targeted diseases and improve patient outcomes. When launching a new product, pharmaceutical companies that consistently outperform expectations build new sources of diferentiation, focus on customer experience, and treat drug launches as a micro-battle to treat diferent conditions. c) Build customer advocacy: Prior to prescribing (Rx) a drug, physicians tend to look at a much broader set of clinical data. These factors include clinical

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protocols, drug pricing, patient types, and treatment regimens. Most physicians attribute their preference for brand names to customer experience factors beyond the product itself, like how well pharmaceutical companies support physicians by answering their questions, identifying patients, and connecting them to peers.

3.4.2 Management of Re-launching a Pharmaceutical Product In spite of the tedious challenge of re-launching a pharmaceutical or drug product, many brand executives do so. There are times when a product is extended or reformulated. The launch of a product may have been miscalculated in other cases, resulting in lowered sales. Pharma companies can lose millions when a drug launch fails. However, failing to consider a re-launch can end up costing even more. Re-launches of leading pharmaceutical products are expected to result in signifcant revenue gains of 20% or more. A re-launch can propel a product uptake if an honest, disciplined re-examination of early missteps is coupled with a re-branded core message that redefnes the product’s identity. Pharmaceutical companies are adopting some strategies in order to re-launch their products. This section discusses a few of them (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). a) b) c) d) e)

The development of a position around an unmet medical need. Explaining the benefts of the product rather than its features. The position of a product in relation to its competitors. Clarifying the target patient population. Revision of marketing details and materials.

In order to integrate re-launch planning into a unifed life cycle management strategy, product management teams (PMTs) must start early. Product teams are often re-targeting their re-launch strategies for years after they have launched their initial product (Narasimhan et al., 2006; Pharmachitchat, 2015) as they enter Phase 2 (growth phase of a product life cycle). Re-launching a product successfully requires early planning. Re-launch strategies of the present can be categorized into two types: a) Extension of lines. b) Entering new markets. The following factors are evaluated in detail in each line extension or new market entry strategy: a) Implementation time. b) The outcome of the strategy in terms of revenue.

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c) Increased market share protection through implementation. d) The timing, the investment, and the science behind each drug determine the success of the product re-launch. It is vital that a pharmaceutical marketer determines frst whether a chemical can be re-marketed and whether it is a viable option. An investment level must be determined by the manufacturer for a re-launch product to be successful. Product management teams must now decide when to re-launch the drug. This step is perhaps the most crucial. Drug re-launch strategies: Preserving Market Share through Line Extension and New Market Entry Strategies provides useful benchmarks that will help pharmaceutical companies understand the science, the investments, and the timing behind common products re-launch strategies to drive long-term growth in the organization (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

3.5 Product Life Cycle (PLC) – Strategies for Different Stages There are four stages in the product life cycle (PLC): Introduction (I), Growth (G), Maturity (M), and Decline (D) Managers and pharmaceutical marketing professionals use this concept to determine when advertising should be increased, prices should be reduced, new markets should be explored, or packaging should be redesigned (Figure 3.2). In the following section, we provide an overview of the product life cycle (PLC), which consists of four (4) stages.

FIGURE 3.2

Product Life Cycle (PLC): IGMD Phases. Source: By the author.

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3.5.1 Introduction (I) Initial sales are modest, and the product is gradually introduced to the market and sold. Sales have grown slowly at this stage, as the product has been introduced for the frst time to the market. In the beginning, the product market is not competitive, and the company initially spends on advertising and other tactics to market the brand so that consumers become aware of the brand, which then leads to discerning demands for a particular product. When a new product is introduced to the market, it starts to gain distribution, and at this point, its quality is unassured as well as its price, which will determine whether it is low or high. a) b) c) d) e) f)

High prices for the product. Slow sales volume in the beginning. No competition or little competition. Creation of demand. Incentives should be given to get customers to try the product. At this stage, not very proftable.

3.5.2 Growth (G) As the product progresses through growth, the product is visible on the market, habitual consumers of the product are present, and product sales grow rapidly. Potential customers become aware of and try the product more frequently. The product has become a favourite among customers and they keep buying it over and over again. There has been an increase in the number of repeat purchases of the trial products. With more appealing and attractive innovations fooding the market, competitors are taking over. In this way, the market is more competitive, and product prices are lowered as a result. a) b) c) d) e) f)

Cost reduction through economies of scale. A signifcant increase in sales. A rise in proftability. A greater level of public awareness. New-market players begin to establish themselves and competition increases. Cheaper prices result from increased competition.

3.5.3 Maturity Stage (M) The cost of the product has decreased in the maturity stage due to increased volume, and the product is experiencing curve efects. In addition, competitors are jumping out of the market. Due to this, the product is left with a very limited number of buyers, and sales of the product decline. The cost of acquiring new buyers and the decline in sales at this level are greater than the proft that results. By rebating and discounting the price, the brand or product is diferentiated and

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the outlets are recalled. Through switching brands and segmentation, there is a reduction in the total cost of marketing. a) The increased production volume and the experience curve make the costs less. b) The market reaches saturation and sales volume peaks. c) The entry of more competitors. d) As a result of a proliferation of competitors, prices tend to drop. e) To maintain or grow market share, brand diferentiation and product differentiation are emphasized. f ) Profts in the industrial sector fall.

3.5.4 Decline (D) In this stage, the proft, as well as the sales of the product, has started to decline because of the deletion of the product from the market. The market for the product in this stage started to show a negative rate of growth and corroding cash fows. The product at this stage may be kept, but there should be fewer adverts. a) b) c) d)

The cost becomes inefcient. A decrease in sales volume. Proftability and prices decline. Proftability is more of an issue of production and distribution efciency than it is of sales growth.

3.6 Aligning the Pharmaceutical Brand Management across the Product Life Cycle (PLC) The complexity of today’s pharmaceutical market requires more efective and efcient drug development and production. Product Life cycle Management (PLM) has the opportunity to make pharmaceutical production more efective and with lower risk – even in this vastly complex situation and environment. The product life cycle management creates and manages a company’s productrelated intellectual capital starting from an idea generation to its fnal implementation. In the pharmaceutical industry, it benefts through enhancing the lifespan of patent and pricing strategies. Improved patient compliance, revenue growth, expanded clinical benefts, cost advantages, life extension exclusivity, and quicker market launch are amongst the main applications of product life cycle management. Product Management Teams (PMTs) are actively implementing PLM and are reaping the benefts of fewer problems, lower costs, higher yields, employees armed to make good decisions, and audits that make everyone more confdent as they access the information they need. The life cycle refers to the period from the product’s frst launch into the market until its fnal withdrawal.

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The pharmaceutical industry is looking at more holistic approaches to improve processes to bring new products to market that can accelerate product development while lowering operational costs. Product life cycle management (PLM) is the process of managing the entire life cycle of a product from its conception, through design and manufacture, to service and disposal. How the pharmaceutical companies adopt relevant steps and strategies in the diferent stages of PLC is discussed in the following (Table 3.1).

3.7 Gap Analysis “Gap Analysis” examine the performance or results of a project with what is expected or desired (Smartsheet, 2022). In this method, companies can identify their suboptimal or missing strategies, structures, capabilities, processes, practices, technologies, or skills and then become aware of steps they can take to meet their objectives. Whenever a company, business unit, or team compares their current state with their target state, they will be able to identify what they need to adjust in order to achieve better performance and results. Additionally, pharmaceutical marketing frms can use gap analysis to assess competence levels, productivity levels, and performance levels among individuals or teams. Analyzing needs, analyzing needs gaps, and assessing needs are other terms used to describe this process. An analysis of the pharmaceutical market gap (either internally or externally) is a way to determine where sales opportunities can be found when demand exceeds supply. An organization can use this process to identify underserved markets. In its simplest form, gap analysis identifes inconsistencies between an optimal allocation of resources and the actual level of allocation. By doing so, we may identify areas for improvement. An evaluation of gaps between business requirements and current capabilities involves determining, documenting, and improving the gap. Benchmarking and other assessments naturally lead to gap analyses. It is possible to compare an industry’s general performance expectations with a company’s current performance by understanding the general expectations. In this way, the gap analysis becomes possible. Analyses of this kind can be conducted at the strategic or operational levels of an organization. Pharma marketing companies take advantage of the “Fishbone Diagram” to evaluate and analyze “Gap Analysis”. It is also referred to as the Ishikawa diagram, which assists pharmaceutical marketing managers in tracking down the factors that result in defects, variations, or failures. There is the problem at the head of the diagram and the causes for the problem feeding into the spine. It looks like a fsh’s skeleton (Figure 3.3). In pharmaceutical companies, fshbone diagrams are used to evaluate deviations and prevent a series of defects through root-cause analysis methods. Through the use of a fshbone diagram, a team can fnd a solution to a problem that focuses on the causes and problems instead of the symptoms (Figure 3.4).

Introduction

Growth

Maturity

Decline

One or more strength/dosage forms may be chosen depending on the category.

Source: Conceptualized by the author.

Product

Consider developing new To gain maximum advantage, Withdraw the dosage forms/strongnesses/ maintain the full range and product when it features such as f avourings concentrate on the most is commercially or packaging. proftable one. Explore benefcial. new indications and segments as well. Price Companies can launch products at prices The same as it was when it Identical to what was f xed The same as when it lower than what is approved by regulatory was launched. at launch. In order to gain was f xed at launch. bodies, but they cannot raise the price of or maintain market share, Companies might that product afterward. some companies may decide to lower prices reduce their prices. as a countermeasure against the loss of market share. Selective for prescription Place Selective Products that is only available Selective (Rx) products. Extensive with prescription (Rx). for OTC products. Wide range of over-thecounter products. Promotion In this generation of trials, there is heavy Sample moderately, focusing Samples are mostly taken on Promoting selectively and sampling, a focus on Key Opinion on coverage and call rate, demand. The focus will focusing on retaining Leaders (KOLs) and consultants, elaborate shifting from consultants be on royal prescribers market share as much literature and brochures, user and clinical to general practitioners, (RX), reminder brochures, as possible. trials, seminars, conferences, panel sessions, moderate advertising, and the conducting of advertising in medical journals, expensive reminder brochures, continuing medical gifts, sponsorships. In this stage, direct reminder gifts, and taking education (CME). mailers and teasers are also used. part in academic events.

Strategies/ Stages

TABLE 3.1 Product Life Cycle (PLC) Strategy in Pharmaceutical Marketing

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FIGURE 3.3

Fishbone Diagram. Source: Author’s own.

FIGURE 3.4

Root Cause in Fishbone Diagram. Source: Conceptualized by the author.

In the fsh, a problem is represented at the head or mouth and the acknowledged sources of the problem appear on the smaller bones. There may also be sub-branches for the various causes of the problem. Therefore, a fshbone diagram can help the audience visualize the problem and its cause, enabling them to brainstorm the solutions to the problem. In the following, some examples are provided to elaborate further on the meaning of “Gap Analysis”.

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3.7.1 Gap Analysis Examples Here are some examples demonstrating how a pharmaceutical company can use gap analysis across a wide range of reasons (e.g. accounting, sales, customer service, HR, marketing, product management): a) New Product Launch: When a newly launched product fails to meet expectations, a company might conduct a gap analysis. b) Productivity: A gap analysis reveals the processes that need to be fxed or what further action is needed when a pharmaceutical manufacturing unit’s productivity is not meeting expectations or customer needs. c) Supply Management: If a pharmaceutical company sufers from frequent supply shortages, it could conduct a gap analysis to identify possible causes of shortages and plug them as necessary. d) Sales Performance: The pharmaceutical company can determine if the right mix of products in its product portfolio delivers the right mix of sales when it analyzes its sales performance and uses the results to maximize its production-possibility frontier. e) Individual Assessment: Every member of a pharmaceutical product management team should perform an individual assessment to identify their personal strengths and weaknesses, as well as tips on how to improve their performance for the beneft of the whole frm. f ) Product Evaluation: In the idea generation stage, the pharmaceutical company conducts a gap analysis to make sure that all features and functions outlined in the business requirements have been implemented and conceptualized properly.

3.8 SWOT Analysis In strategic management and planning, SWOT analysis helps identify strengths, weaknesses, opportunities, and threats related to business competitions or project planning. An assessment or analysis of the current situation can be used in business practices to detect errors and to strengthen all commercial activities to ensure sustainable business practices. SWOT analyses should be used to guide business strategy meetings (Investopedia, 2022). A brainstorming session in which everyone in the room discusses the company’s strengths and weaknesses, challenges and threats, and brainstorms ideas can be more powerful in the business decision support system of the organization. Before a session, the SWOT analysis is envisioned by the organization, but it often changes during the session as factors become apparent that the organization would not have known without the input of its participants. Companies can use SWOTs to plan their overall business strategy or for specifc segments, such as marketing, production, or sales. Before committing to the strategy, the companies can see how it will flter down from the overall SWOT analysis to the segments. It is also possible to use segment-specifc SWOT analyses to build an overall SWOT analysis. Despite

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its usefulness, SWOT analysis has limitations. In addition to other business planning techniques, it is not the only one to consider. The points within the categories are also not listed in the same order of importance. SWOT does not take into account the weight of each point. Therefore, another planning approach is necessary.

3.8.1 Key Takeaways of SWOT Analysis a) SWOT analysis provides assessment tools used in strategic planning. b) A fact-based analysis leads to new perspectives, fresh perspectives, and new ideas when you identify your strengths, weaknesses, opportunities, and threats. c) It is best for an organization’s SWOT analysis when various groups or voices provide realistic data instead of prescribed messages.

3.8.2 Explanation of SWOT Analysis An analyst presents a SWOT analysis as a square with four quadrants, each representing an element of SWOT. The square provides an overview of the company’s position quickly. Though not all the points under a particular heading are equally important, they should all give a sense of the balance between advantages and disadvantages, opportunities and threats, etc (Tables 3.2 and 3.3).

TABLE 3.2 SWOT Analysis

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

A pharmaceutical An organization If an organization Strong brands, company may be can gain a has weaknesses, loyal threatened by factors competitive it cannot achieve customers, that could harm its advantage its full potential. a strong business operations. through Brand, turnover, balance sheet, A change in opportunities debt level, supply and unique government policy, that are ofered chain, and capital technology are for instance, might by external are all factors examples of a reduce the proft factors. The that afect the pharmaceutical margin of certain ability to export competitiveness of company that drugs. Another innovative a business. excels at and common threat is drugs into a what makes it the increasing cost of new market is unique on the raw materials, cutboosted when market. throat competition, a country cuts and tight labour tarifs, for supply. example. Source: Author’s own.

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TABLE 3.3 Examples of SWOT Analysis

Strengths (S)

Weaknesses (W)

1. What makes us diferent from our competitors? 2. What resources do we have? 3. Which of our products perform the best? Threats (T)

1. What needs to be improved? 2. Which products are not performing well? 3. In what areas are we lacking resources? Opportunities (O)

1. In what ways are new regulations threatening operations? 2. How does our competition compare? 3. In what ways are consumers changing?

1. How can we improve operations with technology? 2. Are there ways to expand our core business? 3. Are there new market segments we can explore?

Source: Author’s own.

3.8.3 Examples of SWOT Analysis 3.8.3.1 How to Perform a SWOT Analysis? SWOT analysis involves examining a company’s performance, competition, risks, and potential, as well as its products, divisions, industries, or other divisions. Pharmaceutical frms can identify which strategies are most likely to be successful, and which ones are unlikely to be so. SWOT analysis, investors, and competitors can also be used to analyze the strengths and weaknesses of a business, product line, or industry (Table 3.4).

3.9 Competitive Landscape in the Global Pharmaceutical Industry: Michael E. Porter’s Five Forces Analysis An organization can analyze its competition using Porter’s Five Forces Framework. In this approach, fve forces are drawn from industrial organization (IO) economics to determine how competitive an industry is and, thus, whether it is or is not proftable. The industry that has these fve forces in play will inevitably sufer from reduced overall proftability; hence it is classifed as “unattractive”. An industry nearing “pure competition” would be most unattractive because all frms’ profts would be driven to normal levels (Conceptdraw, 2022). Michael E. Porter of Harvard University is credited with originating the fve forces perspective. Harvard Business Review published it in 1979. Below is an illustration of Porter’s fve forces (Figure 3.5 and Table 3.5). Porter refers to these factors as the microenvironment as opposed to the macro environment. Customer service and proftability are afected by factors in a company’s competitive environment. Every change in one of the forces requires the business units to re-evaluate and rethink the market as a result

120 Strategic Advantages in Pharmaceutical Marketing TABLE 3.4 Internal Analysis (IA) and External Analysis (EA)

Internal Analysis (IA)

External Analysis (EA)

As far as the strengths and weaknesses categories of the SWOT analysis are concerned, what happens in the company is a great source of information. Intangible assets (brand name) and tangible resources (fnancial and human resources) are examples of internally based factors. Below are some questions to consider when listing internal factors:

An organization must take both internal and external factors into account if it is to succeed. Identifying opportunities and weaknesses require considering external factors such as market changes, monetary policies, and supplier access. These questions should be asked:

a) (Strength) What is our greatest strength? b) (Strength) What is our most valuable asset? c) (Weakness) What is our greatest weakness? d) (Weakness) Which of our product lines perform the most poorly?

a) (Opportunity) What trends are apparent in the market? b) (Opportunity) What demographics are we forgetting to target? c) What is the size of the market, and what is the share of competitors? d) Do any new regulations afect our products or operations in a negative way?

Source: Author’s own.

Threat of New Entry

Supplier Power

Competitive Rivalry

Buyer Power

Threat of Substitution

FIGURE 3.5

Porter’s fve forces analysis. Source: By the author.

Source: Author’s own

a) Cost and time of entry b) Knowledge of the area of expertise c) Rational economies of scale d) Low-cost advantages e) Protection of technology f ) Obstacles to entry

Threat of New Entry

a) The number of competitors b) Diferences in quality c) Diferences in other areas d) Costs associated with switching e) Loyalty among customers

Competitive Rivalry

TABLE 3.5 Examples of Porter’s Five Forces Analysis

a) The number of suppliers b) Supplier size c) The uniqueness of the service d) Substitution ability e) Costs associated with changing

Supplier Power a) Performance by a substitute b) The cost of change

Threat of Substitution

a) Total number of customers b) The size of each order c) Diferences between competitor companies d) Sensitivity to price e) Substitution ability f ) Change in cost

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of the overall change in industry information. It is generally true that not all companies in an industry are proftable, regardless of how attractive they may be. A company will achieve higher profts than the industry average if it has strong core competencies, a business model, and a network. Porter’s fve forces entail two horizontal forces, namely supplier bargaining power and customer bargaining power, and three horizontal forces, namely substitute products and services, established rivals, and threats from new competitors. Porter developed his fve-force framework in response to the popular SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Porter’s fve-force model combines structure, conduct, and performance in the domain of industrial-organizational economics. Below is a breakdown of Porter’s Five Forces Analysis.

3.9.1 Threat of New Entrants Porter’s fve forces refer to the threat of new competition that new entrants pose to existing competitors. Therefore, a proftable industry will attract more competitors interested in making money. Entry barriers are low, so new entrants can easily enter the market and threaten existing competitors. In the event that production capacity or competition increases without concurrent increases in consumer demand, profts will decline. According to Porter’s Five Forces, new competitors shape the competitive structure of an industry by their threat. As a result, Porter’s defnition of new entrants revolutionized how people perceive competition in an industry. Proftable industries are more attractive to businesses. Due to new entrants, other frms within the industry will experience a decrease in proftability. Unless incumbents can increase entry barriers for new players, the abnormal proftability of the industry will fall toward zero (perfect competition). In the pharmaceutical industry, an example of this is the entry of a new pharmaceutical company into a particular market with a global presence.

3.9.2 Threat of substitute A product can be substituted for a product from an industry, as described by Porter. Substitution impacts the competitive environment, afecting companies’ proftability in an industry undergoing substitution. Substitution threats can afect an industry’s proftability, as consumers may decide to buy an alternative or substitute a product instead. The availability of close substitutes can increase competition within an industry. As a result, profts may decrease for frms in that industry. In spite of this, close substitute products make an industry less competitive and increase its proft potential. There are many competitors in the beverage industry, so substitutes are at risk. Diferent technologies are used in order to satisfy the same economic need. Besides meat, poultry, and fsh, there are landlines and cell phones, as well as airlines, automobiles, trains, and ships. The pharmaceutical industry, for example, has some allopathy products that compete with Ayurvedic products.

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3.9.3 Bargaining Power of Customers According to Porter’s Five Forces Industry Analysis Framework, bargaining power is one of these forces. By putting pressure on businesses, customers can improve customer service, lower prices, or provide better products. Sellers (the company) are the ones who carry out bargaining power analyses. A company’s buying power is determined by the purchasing power of its customers or consumers (Corporate Finance Institute, 2022). This is also known as the bargaining power of the customer, which is the customer’s ability to put pressure on the frm due to its price sensitivity. Organizations can implement loyalty programmes to reduce customer bargaining power. Customers have many options to choose from. When there are fewer options, bargaining power increases. For example, pharmaceutical companies consider the price, pack size, and other characteristics of any other pharmaceutical drug product that is in the same drug compound before launching a new pharmaceutical drug product.

3.9.4 Bargaining Power of Suppliers The bargaining power of suppliers is defned as the mirror image of the bargaining power of buyers and refers to the pressure suppliers can exert on companies by raising prices, reducing quality, or reducing availability. Business strategy is guided by this framework. A supplier’s bargaining power infuences the proftability of buyers and competitive conditions in the industry. Companies that sell to buyers are suppliers. Supplier bargaining power determines an industry’s attractiveness, and it shapes competitive landscapes. Furthermore, rivalry, buyer bargaining power, substitutes, and new entrants pose threats. Suppliers have bargaining power in the input market as well. In markets without many substitutes, suppliers (such as raw material suppliers, component suppliers, labour suppliers, and experts) can exert considerable infuence. When only one person sells four, an FMCG company can’t purchase it. In spite of the frm’s unique resources, it may not be able to procure them at a reasonable price or may fnd suppliers unwilling to work with it. Pharmaceutical companies face bargaining power issues when they depend on suppliers of active pharmaceutical ingredients (APIs). Pharmaceutical companies have a difcult time importing APIs because of their high quality.

3.9.5 Competitive Rivalry An industry’s competitiveness is determined by its level of competitive rivalry. In order for your product to be successful, you must know your competitors. An item’s reputation among the public separates it from its competitors. For any business, it is important to have a marketing strategy and a pricing strategy, as well as to be responsive to changing market conditions. The marketing of similar or me-too pharmaceutical products is a time of intense competition between pharmaceutical companies.

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3.10 Ansoff’s Matrix 1957 marked the advent of the Ansof matrix (or Ansof model) as a management model. This concept was devised by Russian/American economist Igor Ansof. A company’s growth strategy can be determined by using the Ansof matrix. Using this matrix, a company can determine what it needs to focus on.The Ansof matrix identifes four growth strategies that a company can use, including: a) b) c) d)

Market penetration. Product development. Market development. Diversifcation.

Diferentiating between the development of new products and the deployment of existing products is done using the matrix. Furthermore, it makes the organization think about how its current customers can be maximized or how it can increase its focus on fnding new customers. The following is a graphical representation of the Ansof Matrix (Figure 3.6). A short discussion of all factors/elements of the Ansof Matrix is presented below.

3.10.1 Market Penetration It is said that an existing product has more market penetration in an existing market if the company is able to beneft more from it. Therefore, the company would be seeking to market those existing products more aggressively. By grabbing customers from competitors in the same market or by selling more of its own product to existing customers and current customers, the organization can achieve this goal. Upselling is the practice of selling more products to existing clients. In order to employ a market penetration strategy, a company must primarily focus on sales and marketing. Through the eforts of sellers and/or advertising

FIGURE 3.6

Ansof Matrix. Source: Author’s own.

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campaigns, the organization will attempt to capture some of the market shares of others. In order to achieve this, it is necessary for the company to have a small market share, so there is still much to be gained. Ansof suggests choosing one of the other three strategies from the matrix when the margins in the market are already low or the organization already has a large market share. The marketers can accomplish the following by using the “Market Penetration” technique. a) b) c) d)

Lowering the price. Increasing marketing and distribution eforts. Acquiring a competitor in the same market. Making modest improvements to the product. Example: Patients can purchase larger sizes of drugs/medicines by spending a little bit more.

3.10.2 Product Development By adopting the Ansof model, a company will be able to develop new products for existing customers if they choose to adopt the product development strategy. This strategy allows cross-selling of these products. Adding or introducing new features to an existing product is cross-selling, which means an organization ofers more products to its existing customer base. A manufacturer or marketer can also beneft from product development by protecting its brand and switching between companies to maximize fnancial returns in a sustained manner (Nandy & Biswas, 2015). The development of a product relies heavily on innovation. Therefore, it is important that the organization focus on this. Additionally, Customer Relationship Management (CRM) and account management play an important role since the organization has to inform existing customers about the new products. Here are a few benefts marketers can obtain through “Product Development”. a) b) c) d)

A decrease in price. More marketing and distribution support. Acquiring a competitor in the same market. Making modest changes to the product. Example: The purpose of pharmaceutical research and development (R&D) in pharmaceutical marketing is to fnd new molecule entities (NMEs) and new chemical entities (NCEs) that can be added to existing drugs/medicines or a pharmaceutical company’s product portfolio in order to treat existing/new diseases.

3.10.3 Market Development By ofering current products or services to other customers, the Ansof matrix aims to expand the company’s market share. The price of a product can be

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manipulated, for example. A pharmaceutical company’s market development strategy involves expanding into new markets (geographies, countries, etc.) using its existing oferings with minimal new product development. A successful market development strategy will emerge if: a) The company’s technology is unique, enabling it to exploit new markets. b) As it increases output, it gains economies of scale. c) The new market is not very diferent from those with which it is already familiar. d) Market buyers are proftable in nature. Utilizing the “Market Development” element of the Ansof Matrix can assist marketers in achieving the following benefts. a) Diferent segments of customers. b) Industries purchasing goods that were previously only purchased by households. c) New geographic areas or regions of the nation. d) International markets. For example, most reputable pharmaceutical companies sell their drug products in various foreign countries and would like to reach a large market of patients/customers. In general, diferent drug products treat diferent diseases and disorders based on diferent indications. Pharma companies are also looking to explore emerging markets instead of only concentrating on the developed and developing countries.

3.10.4 Diversifcation In the Ansof matrix, the Diversifcation Strategy is the riskiest. As the company develops new products, it will acquire new customers. In order to increase market share, an organization diversifes by introducing new products into new markets. This is the most risky strategy since both product and market developments are required. As a result of this strategy, organizations are very risk prone since they have to wait and see if there will actually be a demand for the product. Example: Research & development (R&D) costs in pharmaceutical marketing are high. The organization is at risk of failing to sustain itself in the marketplace if the desired output is not achieved, as a huge investment has been made that has resulted in a negative return on investment.

3.11 PESTEL Analysis Using a PESTEL analysis, an organization can assess the external factors (external forces) that afect it. According to their priority, PESTEL stands for Political,

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Economic, Social, Technological, Environmental, and Legal. This section discusses the use of a PESTEL analysis for a business setting and its advantages and disadvantages (Oxford College of Marketing, 2022). An in-depth analysis of the situation is essential before implementing any marketing strategy or tactics. It is important to repeat this analysis six months after the frst to identify any changes in the macro environment. Macro-environmental changes can give organizations a competitive edge over their competitors if they monitor and respond to them efectively.Through a PESTEL analysis, you can identify external factors that may afect a company’s market or analyze their direct impact on the company. As part of such an analysis, it is necessary to not only identify but also evaluate the factors that afect the organization – for instance, what impact may they have? Following an analysis of the results, opportunities and threats can be populated in a SWOT analysis. This methodology identifes opportunities and threats to a business by dividing its external environment into Political, Economic, Social, Technological, Environmental, and Legal factors. An efective PESTEL Analysis can be used to identify the pros and cons of diferent Business Strategies.A business’s performance can also be afected by environmental and legal factors, in addition to PESTEL’s strategic framework. In addition to identifying strengths, weaknesses, opportunities, and threats, the framework also identifes strengths, weaknesses, opportunities, and threats to a company. Below is a breakdown of all the key elements (Table 3.6).

3.11.1 PESTEL Analysis: How to Do It? Several steps are involved in conducting a PESTEL analysis. An initial round of brainstorming should involve people from diferent parts of the organization. Obtaining expert opinion from someone outside of the business organization, whether that is a professional consultant or a business analyst, is the next step.This person could be a genuine customer, distributor, supplier, or competent consultant as well. In the third stage of the company’s analysis, relevant evidence will be researched and gathered for each insight the organization has provided.After evaluating and scoring each item, the company will score it on “likelihood”, or how likely it is to occur, and its “impact”, or how difcult it might be to implement in the company.At last, the organization’s management refnes all ideas and repeats all the necessary validations and proofs until the organization is able to accumulate a manageable number of points in each of the six categories.

3.11.1.1 Advantages and Disadvantages of a PESTEL Analysis In addition to its benefts, it also poses some challenges for strategists (Table 3.7).

3.11.2 Explanation of the PESTEL Framework The following are the six major components within the PESTEL framework (Political, Economic, Social, Technological, Environmental, and Legal). In some

Economic Factors

Social Factors

Technological Factors

Environmental Factors

Legal Factors

Source: Author’s own.

Having a clear understanding Technology infuences A part of the Identifying emerging An organization An organization's of the local laws and environmental a market or trends and the performance is or a specifc regulations within a factors is the impact industry based on social environment directly afected industry is territory is imperative of the surroundings the technological are the main focus by the economy, impacted for any organization. and ecological innovation a here. Marketing which impacts to a certain A change in legislation aspects. Corporate company is making professionals can proftability. extent by must also be noted, as sustainability and or the development use this information The price of government well as the impact on sustainability are it is making. to gain a deeper goods is afected and business operations becoming more Technological understanding of by a variety of government of such a change. important elements changes, customers' wants factors, including policy. Regulations, restrictions, in how organizations automation, and and needs. Families interest rates, Political, and regulations related to conduct their research and are changing employment f scal, and employment, consumer business, thanks development could demographically, levels, raw tax policies law, health and safety, and to the rise of explain some of education levels are material costs, would be international trade. In CSR (Corporate these changes. In rising, cultural trends and foreign included in addition to legal factors, Sustainability most cases, focusing are changing, and exchange rates. this as well. political factors are also Responsibility). A only on digital attitudes are changing. infuential; however, the number of factors technology is the diference is that political must be considered, dominant focus, factors are determined including climate, but distribution, by government policy, recycling procedures, manufacturing, and whereas legal factors must carbon footprint, logistics must also be be honoured. waste disposal, and considered. sustainability.

Political Factors

TABLE 3.6 PESTEL Analysis

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TABLE 3.7 Advantages and Disadvantages of PESTEL Analysis

Advantages of a PESTEL Analysis

Disadvantages of a PESTEL Analysis

a) Potential threats and opportunities can be anticipated in advance b) Businesses are encouraged to pay attention to their external environment c) This analysis can help organizations gain an understanding of external factors

a) The simplicity of the model was criticized by many researchers for being a simple list that is not comprehensive enough b) One of the major disadvantages of the model is that it is only based on an external assessment

Source: Author’s own

Legal

Political

PESTEL

Environmental

Technological

FIGURE 3.7

Economic

Social

PESTEL Framework. Source: Author’s own.

cases, PESTEL Analysis can be combined with other strategic frameworks, such as SWOT Analysis and Porter’s Five Forces Analysis (Figure 3.7).

3.11.2.1 Political Factors Politics involves the way the government intervenes in the economy as well as other factors that can infuence a business. Among these factors are: a. b. c. d.

Policy on taxation. Import and Export Restrictions. Fees and tarifs. Government bureaucracy.

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Diferent political parties have divergent views and strategies on the issues above, which is one of the reasons elections are a period of uncertainty for a country. In a case where a company moves operations after a newly elected government adopts policies that negatively impact the businesses core operations, a political factor may play a signifcant role.

3.11.2.2 Economic Factors A business’s performance can be impacted by various aspects of the economy, as well as the outlook in each area. Central banks and other government agencies usually measure and report these economic indicators. Examples include: a. b. c. d. e.

Growth rates of the economy. Rates of interest. The exchange rate. The infation rate. Unemployment level.

These are often the subjects of external environment analyses. Despite the importance of economic outlooks for businesses, it is also important to consider other PESTEL factors. An example of an economic factor is when a company decided to refnance its debt after interest rates decreased.

3.11.2.3 Social Factors In a PESTEL analysis, social factors are also considered, which are infuenced by societal culture and demographic trends. Societal norms and pressures play a key role in determining consumer behaviour. These factors include: a. b. c. d. e.

Perceptions and cultural aspects. The consciousness of health. Rates of population growth. Distribution of ages. Attitudes toward career.

As a result of changes in society’s perception of health and wellness, the percentage of Americans who smoke has decreased since the 1970s.

3.11.2.4 Technological Factors Research indicates that technological factors play a substantial role in industry innovation as well as in innovation in the economy. A company’s operations could sufer from not keeping up with industry trends. Technology includes the following factors:

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a. b. c. d.

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Research and development. Automation. Incentives for technological advancement. The rate at which technology changes.

An organization digitizes its physical data fles in order to make company information more accessible.

3.11.2.5 Environmental Factors A business’s ecological impact on the environment is a factor of environmental factors. Businesses should plan how to adapt to the increasing frequency of extreme weather. The following are some key factors: a. b. c. d. e.

Climate conditions. Weather. Changes in the climate. Environmental pollution. Disasters caused by natural forces (tsunamis, tornadoes, etc.).

The rise of Corporate Sustainability Responsibility (CSR) initiatives also points to the increasing importance for businesses to be environmentally friendly. Carbon footprint reduction initiatives and the transition to renewable energy and materials are examples of CSR initiatives. Example of Environmental Factors: A company’s harvest forecast has to be adjusted due to unusually dry seasonal conditions that will prevent the growth of its crops.

3.11.2.6 Legal Factors When conducting a PESTEL analysis, people are not always sure which factors are political and which are legal. An organization’s legal factors are all those factors that determine what it may or may not do. Business and government relationships are political factors. When governmental bodies introduce laws and policies that afect the way businesses operate, political and legal factors can intersect. Here are some legal factors: a. b. c. d.

Regulation of the industry. Licensing and permitting. The labour laws. Intellectual property rights (IPR). Example of legal factors: Failure to meet state food safety requirements can lead to the closure of a nutraceutical product.

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3.12 VRIO Analysis

What is VRIO Analysis?

A VRIO Analysis is a method for calculating the competitive advantage of a frm by evaluating its resources. VRIO Analysis is an analytical approach that excels at evaluating a company’s resources and consequently its competitive advantage. VRIO stands for Value, Rareness, Imitability, and Organization (Wikipedia, 2022; Sharma, 2022). Jay B. Barney developed the VRIO Analysis to evaluate a company’s microenvironment (its resources) as follows: a) b) c) d)

Financial resources. Human resources. Material resources. Non-material resources (information, knowledge).

3.12.1 What is the VRIO Good for? The analysis is perfect for the evaluation of the company’s resources. Once the company is completely aware of its resources, the company can better understand its competitive advantages or weaknesses. The VRIO considers for each type of resource the following questions (called evaluation dimension) both for your company and for your competitors. The dimensions of VRIO are: a) Value – How expensive is the resource and how easy is it to obtain on the market (purchase, lease, rent)? b) Imitability – How difcult is it to imitate the resource? c) Organization – corresponding arrangement – Is the resource supported by any existing arrangement and can the organization use it efectively? d) Rareness – How rare or limited is the resource?

3.12.2 How to Make the VRIO Analysis? VRIO is an acronym for a four-question framework focusing on value, rarity, imitability, and organization, the criteria used to evaluate an organization’s resources and capabilities. VRIO is used in combination with PESTLE (which measures the macro environment). VRIO is a process companies use to assess their resources, the consequences of their decisions, and the likelihood of improving a particular area or resource. It can be applied to development in various felds, identifying advantages of an external or internal process, or securing services (such as outsourcing). a) Non-value-added resources should be outsourced since they do not add value to the company.

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b) A company’s resource is valuable, but it is not rare in competitive conformity. In other words, we do not have an advantage over our competitors. c) In situations where rare and valuable resources can be copied reasonably cheaply, competitive advantages usually last only a short time. Therefore, we will eventually be copied by other companies, decreasing our competitiveness. d) The company will incur costs if the company is incapable of organizing a resource that is valuable, rare, and expensive to duplicate (unutilized incurred costs). e) It is important to learn how to manage temporary competitive advantages and organize our company to gain long-term advantages from these temporary advantages (Table 3.8).

3.12.3 VRIO Model VRIO analysis may also be used in conjunction with other analytical techniques to provide a deeper analysis of an organization’s business resources. Financial indicators provide a variety of perspectives on the fnancial condition and performance of businesses. A performance, efciency, or quality evaluation can also be conducted using human resources, property, or information. Analyses of this type are straightforward and straightforward in nature. A company’s strategic plan relies heavily on the VRIO framework. A company’s strategic process progresses from creating a vision statement through establishing objectives, conducting internal and external analysis, making strategic choices (both at the level of the business and at the level of the corporation), and implementing the strategy. This process is expected to give the frm a competitive edge in the marketplace. The Virtual Reality Integration and Optimization step of these procedures falls under the internal analysis stage, but it can be applied to all of a frm’s resources and capabilities, regardless of where it falls in the strategic model. VRIO refers to the four factors used to determine the competitive potential of a resource or capability – Value, Rareness, Imitability (easiness or difculty in copying), and Organization (capability to exploit the resource). TABLE 3.8 VRIO Model

Is Valuable? Is Rare? NO YES YES YES YES

– NO YES YES YES

Source: Author’s own.

Is difcult Is organization What is the result? to imitate? organized around? – – NO YES YES

– – NO YES

Competitive Disadvantage Competitive Equality/Parity Temporary Competitive Advantage Unused Competitive Advantage Long-Term Competitive Advantage

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a) The Question of Value: “Is the frm able to take advantage of an opportunity or neutralize an external threat?” b) The Question of Rarity: “How big is the pool of control over the resource/ capability?” c) Imitability: “Is it difcult to imitate, and is there a signifcant cost disadvantage for a business to attempt to obtain, develop, or duplicate the resource/ capability?” d) The Question of Organization: “Is the company organized, ready, and capable of exploiting its resource or capability?” “Is the company organized to realize value?”

3.12.4 Question of Value For internal analysis, a current resource or capability is valued according to the V of the VRIO framework: “Is it worth it to the frm?” Here, a resource or capability is valued based on whether or not it can mitigate a market threat or exploit an opportunity. It can be considered a company strength if it does one of those two things. A weakness, however, is one that doesn’t exploit opportunities or mitigate threats. A resource or a capability could be considered a strength in one industry and a weakness in another. The following are six examples of opportunities frms might exploit: a) b) c) d) e) f)

Technological advancements. Changes in the demographics. Economic conditions. Political and legal conditions. Changes in culture. International events of particular importance.

Furthermore, fve threats that a resource or capability could mitigate are: a) b) c) d) e)

The threat of buyers. Threat of suppliers. Threat of entry. Threat of rivalry. Threat of substitutes.

These opportunities and threats can be exploited or mitigated in one of two other ways: either increasing revenue or decreasing costs (or both). Looking at the company’s value chain can help identify potential resources or capabilities. Businesses develop their products and services along a value chain, adding value to the products and services along the way. An organization’s value chain decisions (including how to operate and which steps to take) are closely linked to its

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resources and capabilities, which makes the value chain a valuable resource for identifying the value of resources and capabilities. When a company has an asset that allows it to perform better in a certain section of the value chain, odds are that resource will be considered valuable by the VRIO framework.

3.12.5 Question of Rarity By having a rarity, a company can gain a competitive advantage. An organization’s unique resource or capability makes it stand out from its competition. How can a company gain a competitive advantage by identifying its resource as a rare one? Resource and capability shortages and durability are necessary for a frm’s resources to provide a sustained competitive advantage. Without elements (short supply and persistence over time), resources and capabilities cannot be a sustained competitive advantage. Perfect competition is likely to occur in the absence of rare resources. It is unusual for a janitor’s job description to describe how they are helping the company develop and sell better products rather than merely cleaning up the facilities. Unlike many other frms, this company is transparent about its goals and strategies throughout the entire organization, unlike many others where only top management commits to their goals and strategies.

3.12.6 Question of Imitability “Imitability” is the main question asked in the VRIO framework in the internal analysis: “Do frms lacking a resource or capability face a cost disadvantage in acquiring or developing it?” Companies with valuable, hard-to-imitate resources can gain the frst-mover advantage in the market and hence gain a competitive advantage. Utilizing a frm’s rare and valuable resources, the frm can either exploit an external opportunity or neutralize an external threat. In this instance, the frm will have an advantage over its competitors. This competitive advantage is discovered by the frm’s competitors, and they may respond in two ways. The frst option is to ignore the proftability gained by the competitive advantage and continue doing business the same way as before. The second option is to analyze and replicate the competitive strategy of their rival. As long as there is no or minimal cost to obtain this rare and valuable resource, fellow frms can imitate the competitive advantage and achieve competitive parity (frms that create the same economic value as their rivals achieve competitive parity). Nevertheless, it can sometimes be difcult for other frms to obtain the resources and implement the strategy of an innovative frm. Because of this, innovative companies that use resources that are difcult to duplicate can gain a long-term competitive edge, which ensures a company’s success (Hill & Jones, 1998). Therefore, for a frm to sustain its competitive advantage, it is not sufcient for its resources and capabilities to be valuable and rare – they must also be nearly unique.

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3.12.7 Forms of Imitation Duplication and substitution are the two most common forms of imitation. When a frm observes another frm’s competitive advantage, it can directly implement the resource that the frm possesses. The competitive advantage will remain as long as the cost of imitation is high. When the cost of imitation is low, the competitive advantage will be temporary. In the alternative, imitation frms can try to use a substitute in order to gain the same competitive edge as the original company.

3.12.8 Cost of Imitation In order to gain a competitive advantage, imitation is usually expensive due to the following reasons: a) Unusual historical circumstances – an innovative company gains low-cost access to rare resources at a particular time and place. b) Ambiguity of cause – an imitator cannot predict the factors that lead to a competitive advantage. c) The social complexity of the problem – when the resources needed to gain advantage are determined by interpersonal relationships, culture, and other social factors, d) Patents in some industries such as the pharmaceutical industry ofer a longterm competitive advantage.

3.12.9 Question of Organization In the event that the analyst realizes the value, rarity, and imitability of the company’s resources and capabilities, the next step is to organize it so that it can take advantage of these resources. If the initiative is successful, the company will enjoy a sustained competitive advantage. There are many factors involved with an organization. In addition to the formal reporting structure and management control systems, compensation policies are also considered as formal reporting structure is simply a description of who in the frm reports to whom. In addition to formal and informal measures, management control systems ensure managers’ decisions align with the frm’s strategies. Top management is kept informed of decisions made by employees lower down in the organization by formal control systems, such as budgeting and reporting activities. Among informal controls is a company’s culture and encouraging employees to monitor one another. Through compensation policies, companies encourage their employees to behave in a desired manner. There can also be non-monetary incentives such as more vacation days or an expanded ofce, as well as bonuses, stocks, or salary increases. A company with these capabilities and resources does not provide much value on its own, so they are referred to as complementary. In conjunction with other

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frms’ capabilities, however, it can result in sustained competitive advantage. Despite being valuable, rare, and expensive to imitate resources and capabilities, frms without the right organization sufer a competitive disadvantage (Nandy & Pal, 2016f ).

References Bedi, N., Bedi, P.M.S. & Sooch, B.S. (2013). “Patenting and R&D in Indian Pharmaceutical Industry: Post-TRIPS Scenario”, Journal of Intellectual Property Rights, Vol. 18, No. 2, pp. 105–110. https://www.researchgate.net/publication/256254731 _Patenting_and_RD_in_Indian_pharmaceutical_industry_Post-TRIPS_scenario (accessed 18th March 2022). CBO. (2021). “Research and Development in the Pharmaceutical Industry”, available at: https://www.cbo.gov/publication/57126 (accessed 18th March 2022). Conceptdraw. (2022). “Five Forces Model Diagram”, available at: https://www .conceptdraw.com/examples/michael-porters-fve-forces (accessed 10th March 2022). Corporate Finance Institute. (2022). “Bargaining Power of Buyers”, available at: https:// corporatefnanceinstitute.com/resources/knowledge/strategy/bargaining-power-of -buyers/ (accessed 8th March 2022). Fishbein, M. & Ajzen, I. (2010). Predicting and Changing Behavior: The Reasoned Action Approach. Psychology Press. https://doi.org/10.4324/9780203838020. Investopedia. (2022). “Strength, Weakness, Opportunity, and Threat (SWOT) Analysis”, available at: https://www.investopedia.com/terms/s/swot.asp (accessed 2nd March 2022). Leonard, E., Wascovich, M., Oskouei, S., Gurz, P. & Carpenter, D. (2019). “Factors Afecting Health Care Provider Knowledge and Acceptance of Biosimilar Medicines: A Systematic Review”, Journal of Managed Care & Specialty Pharmacy, Vol. 25, No. 1, pp. 102–112. https://doi.org/10.18553/jmcp.2019.25.1.102. Nandy, M. & Biswas, D. (2015). “CSR and Sustainable Development: Indian Context”, in Financial Sector Reforms in Developing Economies UGC Sponsored International Conference, Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 613–618. Rohini Nandan, Kolkata, West Bengal. ISBN: 978-81-928721-1-7. Nandy, M. & Pal, B. (2015a). “Pharmaceutical Marketing & Product Promotion: A paradigm shift in Indian Pharmaceutical Industry (IPI)”, Adhyan – A Journal of Management Science, Vol. 5 No. 2, pp. 27–40. https://doi.org/10.21567/adhyayan.v5i2 .8817. Nandy, M. & Pal, B. (2015b). “Foreign Direct Investment (FDI) in Indian Pharmaceutical Industries : An Overview”, in Impact of Foreign Direct Investment on Indian Economy UGC Sponsored National Seminar, Department of Commerce, Vivekananda Satavarshiki Mahavidyalaya, Paschim Medinipur, Vivekananda Satavarshiki Mahavidyalaya, West Bengal, pp. 145–158. ISBN: 978-81931-497-1-3. Nandy, M. & Pal, B. (2016c). “Are Research & Development (R&D) Activities Dynamic in Indian Pharmaceutical Industry?: An Empirical Study”, in Dynamic Evolution of Management Paradigm UGC Sponsored International Seminar, Department of Business Administration, Vidyasagar University, Midnapore, West Bengal, pp. 250–269. ISBN: 978-93-5265-325-6.

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Nandy, M. & Pal, B. (2016d). “Trade Openness, FDI in Pharmaceutical Industry and Economic Growth: A Time Series Analysis”, Presidency Journal of Management Thought & Research, Vol. VI, No. 1, pp. 26–33. Nandy, M. & Pal, B. (2016e). “Role of Digital Banking in India’s Financial Inclusion: An Empirical Study”, in Financial Inclusion and Inclusive Growth UGC Sponsored International Conference, Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 247–263. ISBN: 978-93-5258-522-9. Nandy, M. & Pal, B. (2016f ). “Does Research & Development (R&D) Activities Impact Financial Performance? An Empirical Study Based on Selected Multinational (MNC) Pharmaceutical Companies Operating in India”, Presidency Journal of Management Thought & Research, Vol. VII, No. 2, pp. 39–63. Nandy, M. (2018a). “Impact of Research & Development (R&D) Activities of Listed Indian Pharmaceutical Companies on Their Financial Performance: An Empirical Study”, available at: https://shodhganga.infibnet.ac.in/handle/10603/302397 (accessed 9th December 2022). Nandy, M. (2020b). “Clinical Trials to Combat Covid-19: Case Based Approach of a NSE Listed Indian Pharmaceutical Company”, Adhyan – A Journal of Management Science, Vol. 10, No. 1, pp. 1–7. Nandy, M. (2020c). “Do R&D and Marketing Infuence Return on Equity in the Indian Pharmaceutical Industry? An Empirical Study Based on DuPont Analysis”, Presidency Journal of Management Thought & Research, Vol. 10, No. 2, pp. 1–19. Nandy, M. (2020d). “R&D Trend Analysis through ARIMA Model to Combat Covid19: Empirical Evidence from NSE Listed Pharmaceutical Company”, SUMEDHAJournal of Management, Vol. 9 No. 1, pp 1–19. https://doi.org/10.46454/sumedha/9.1 .2020.1. Nandy, M. (2020e). Pharmaceutical Marketing – An Applied Approach. Pacifc Books International, New Delhi, First Edition 2020, pp. 1–203. ISBN: 978-93-8853655-4, available at: https://www.amazon.in/Pharmaceutical-Marketing-Applied -Approach - Crown /dp/938853655X /ref =sr _1 _ 2 ?cr id =M A Z2HFQM9XVS &keywords=mithun+nandy&qid=1643701964&s=books&sprefx=mithun+nandy %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders in Indian Context, Sustainable Development and Informatics. Lincoln Research and Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3 ?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/

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dp/9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy &qid=1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1 -4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020 -0067. Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral

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/forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1. Narasimhan, R., Talluri, S. & Mahapatra, S.K. (2006). “Multiproduct, Multicriteria Model for Supplier Selection with Product Life-Cycle Considerations”, Decision Sciences, Vol. 37, No. 4, pp. 577–603. https://doi.org/10.1111/j.1540-5414.2006 .00139.x. NCBI. (2022). “Chapter 4—Brief Cognitive-Behavioral Therapy”, available at: https:// www.ncbi.nlm.nih.gov/books/NBK64948/ (accessed 14th March 2022). Oxford College of Marketing. (2022). “What is a PESTEL Analysis?”, available at: https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/ (accessed 5th March 2022). Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Pharmaceutical Outsourcing. (2015). “Identifying Segmentation within the Pharmaceutical Outsourcing Market”, available at: https://www.pharmoutsourcing .com /Fe at u red -A r t icle s /171116 - Ident i f y i n g - Seg ment at ion -w it h i n - t he -Pharmaceutical-Outsourcing-Market/ (accessed 12th March 2022). Pharmachitchat. (2015). “Product Life Cycle Management in Pharmaceuticals – A Review”, available at: https://pharmachitchat.wordpress.com/2015/05/28/product -life-cycle-management-in-pharmaceuticals-a-review/ (accessed 14th March 2022). Pharmaphorum. (2022). “Understanding Behaviours is Crucial for Pharmaceutical Marketers”, available at: https://pharmaphorum.com/views-and-analysis/ understanding-behaviours-is-crucial-for-pharmaceutical-marketers/ (accessed 6th March 2022). Sarthaks. (2022). “Which is the Last Stage of the Product Planning and Development Process?”, available at: https://www.sarthaks.com/2649581/which-is-the-last-stage -of-the-product-planning-and-development-process (accessed 5th March 2022). Sharma, P. (2022). “VRIO Framework”, available at: https://www.linkedin.com/pulse/ vrio-framework-parth-sharma (accessed 10th March 2022). Smartsheet. (2022). “The Complete Guide to Gap Analysis”, available at: https://www .smartsheet.com/gap-analysis-method-examples (accessed 8th March 2022). Staines, R. (2021). “COVID-19 and the Digital Pharma Marketing Revolution”, available at: https://pharmaphorum.com/views-analysis-sales-marketing/covid-19-and-the -digital-pharma-marketing-revolution/ (accessed 18th March 2022). Wikipedia. (2022). “VRIO”, available at: https://en.wikipedia.org/wiki/VRIO (accessed 10th March 2022).

4 IMPORTANT ASPECTS OF PHARMACEUTICAL PRICING

4.1 Meaning of Pharmaceutical Pricing It is part of a pharmaceutical company’s marketing strategy to establish how much it will charge its customers for its products and services. An organization’s price is determined by a number of factors, including its ability to aford to acquire the goods, the manufacturing costs, the market, competition, market conditions, brand, and product quality. A fundamental aspect of fnancial modelling is the price, one of the four Ps of the marketing mix (Sinha, 2022). The other three Ps are promotion, place, and product. There is only one revenue-generating element among the four Ps; the rest are cost centres. By increasing prices, the other Ps of marketing will drive greater profts and revenue by decreasing price elasticity. There are a variety of factors that can afect an automatic or manual price calculation, such as a fxed amount, quantity break, specifc vendor quote, the current price at the time the order is placed, shipment or invoice date, order combination, etc. Pharmaceutical price decisions are infuenced by diferent types of information, considerations, and internal processes (Sinha, 2022). Every pricing decision is unique based on what company, what medication, and what external factors impact each. The factors listed in this scenario should be taken into account when making pricing decisions. Pharmaceutical companies determine the price of a drug or medicine product based on a variety of considerations and processes rather than the “best” or “right” approach. A competitive price is an enabler for a pharmaceutical marketing organization to ensure sustainable growth (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). DOI: 10.4324/9781003313168-4

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4.2 Importance of Pharmaceutical Pricing Choosing the right pricing strategy is essential for businesses to remain competitive in a market where volume and price pressure are increasing. To ensure profts, the company needs to invest in growth and change, and the company’s product portfolio and services will receive the value they deserve (Sinha, D.K., 2022). It is important for the company to run regular cost-cutting initiatives and increase the efciency of the sales organization. Pharmaceutical companies should be honest and unbiased when choosing which pharmaceutical product to market. Marketing strategies and campaigns of pharmaceutical companies are likely to be infuenced by pricing decisions. Hence, when setting the price, the pharmaceutical company must take into account the frm’s entire marketing efort to ensure signifcant fnancial performance and global competitiveness (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Pricing decisions are usually part of a general strategy to achieve a wide objective. During the unprecedented pandemic of the COVID-19 time, pharmaceutical companies had to brainstorm about how to set the appropriate price of COVID-19 drugs. Price setting is primarily used by pharmaceutical companies to accomplish one or more of the following objectives. a) b) c) d) e) f) g)

Determines ROI (return on investment). Calculates demand. Ensures that sales volumes are generated as expected. Contributes to gaining a signifcant share of the market. Competing in a counter-competition. Creates an image of the product. An instrument for promoting sales.

4.3 Objectives of Pharmaceutical Pricing The cost of the product or service is determined by the organization’s pricing objectives, which guide and direct its pricing decisions. In order to ensure the pricing process for pharmaceutical products, companies should establish a pricing objective that refects their marketing, fnancial, and strategic goals, as well as consumer price expectations and the amount of stock and production resources that are available. Additionally, pricing objectives difer according to the profle of pharmaceutical companies.

Pharmaceutical pricing objectives can include the following: a) Increasing profts. b) Increase in sales volume. c) Matching the prices of competitors.

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d) Taking advantage of innovative pricing. e) Competing in the marketplace. In order to achieve the organization’s business goals, it is necessary to adopt a diferent price-setting strategy for each pricing objective. In order to do this, organizations need a deep knowledge of both their products and their markets. Following are some of the major factors that infuence pharmaceutical companies’ pricing decisions. i) Pricing for proft In order to maximize long-term profts, the company aims to make as much money as possible for its business. The price of a product directly afects profts, while the price of a product indirectly afects profts – the direct efect is determined by whether it covers the cost of manufacturing it. Proft is indirectly infuenced by price because it determines the number of units sold. Economies of scale impact proft as well as the number of products sold, i.e. the relative advantage of selling more units. In order to maximize a product’s proft margin per unit, proft margins need to be maximized. It is typically applied when it is anticipated that the total number of units sold will fall short of that target. The proft maximization method is also applied to pharmaceutical companies (Nandy & , 2016f ). ii) Sales related Pharmaceutical companies seek to boost their volume or market share with salesoriented pricing objectives. Volume increases are calculated as a percentage of a company’s sales over specifc time periods. Market share is the percentage of sales that a company generates compared with the sales of other companies in the industry. A change in one does not necessarily lead to a change in the other, as volume and market share are independent of each other. Key sales objectives include: a) Sales growth Pricing decisions are taken based on the assumption that sales growth increases profts so that more sales are generated. Setting a price, modifying policies, or altering them is done to increase sales. b) Targeted market share Pharmaceutical marketing is concerned with achieving profts. Pricing decisions are made in this light. The market share of an industry is the proportion of sales in that industry. Pharma companies may target a 25% market share in a certain product category, such as antibiotics or antifungal, for instance.

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c) Increase in market share Pricing and pricing strategies can sometimes be used to increase market share. When a pharmaceutical company realizes that its market share is lower than expected by appropriate pricing and when the pricing is designed to increase market share, it may raise the price of the pharmaceutical/drug product.

4.4 Determinants of Pharmaceutical Pricing Following is a brief description of the factors that determine a pharmaceutical product’s price. (i) Cost of production The pharmaceutical industry sets its price so that it can recover all costs of production from the price charged; otherwise, all production activities would have to cease, so sustainability is not possible. (ii) Desired proft margin Almost all pharmaceutical companies ensure that they charge a reasonable (or targeted) margin of proft for their products, so as to ensure proftable sales by attracting customers. It is also considered fnancial inclusion (PAT: proft after tax) in the form of proft margin. (iii) Pricing of the competitors Nowadays, it is impossible for a pharmaceutical company to ignore the pricing policies of its competitors while setting the price for its own product in a competitive market. In any case, the price a pharmaceutical marketing company charges for its product must not be signifcantly diferent from that of its competitors. (iv) Price control imposed as per the government’s policy The pricing policy of a pharmaceutical marketing company must be in accordance with the government’s regulations if, in particular, the government has set a maximum retail price for a drug or medicinal product. When it comes to foreign direct investment (FDI) in the pharmaceutical sector, drug prices are crucial. (v) Purchasing capacity of the consumers In modern pharmaceutical marketing, a drug product is developed based on the needs and preferences of the target consumers or patients. Therefore, a

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pharmaceutical product should be priced according to the pocket of the target consumers or patients. Otherwise, they may not fnd the drug appealing; and selling the drug product may become a difcult challenge. (vi) Stage in the product-life cycle (PLC) Pharmaceutical marketing companies should consider the specifc stage of the product lifecycle (PLC) through which a drug is progressing when determining a drug’s price. The price of a product should be low during the introductory stage and then rise slightly during the growth stage, and again reach a saturation point. (vii) Demand-supply conditions It depends on the demand-supply conditions of the specifc product in question whether the price of the pharmaceutical product should be high or low. Demand may exceed supply at a high price if supply is greater than demand. As a consequence, consumers are only attracted to a low price when the demand is lower than the supply. (viii)

R&D and innovation

Innovation and research play a crucial role in the development of pharmaceutical products. Innovative drugs that result from intensive research and development fall under the umbrella of drug patents and intellectual property rights (IPR). Pharmaceutical manufacturing and marketing companies that have invested a signifcant amount in R&D want to recoup their R&D costs by setting an appropriate drug price to recover their R&D costs (Nandy, M. 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

4.5 Pricing Methods and Strategies Pricing Methods and Strategies A key element of the marketing mix in pharmaceutical marketing is price. The marketing literature discusses several methods for pricing products (Docshare, 2017). The factors afecting pharmaceutical pricing must be taken into consideration when a marketer selects the method of fxing prices. There are three broad categories of pricing methods: A. Cost based. B. Customer based. C. Competitor based.(Table 4.1)

146 Important Aspects of Pharmaceutical Pricing TABLE 4.1 Diferent Pricing Methods and Strategies

Cost-based Pricing

Customer-based Pricing

Competitor-based Pricing

a) Cost-plus b) Markup Pricing

a) b) c) d)

a) Predatory Pricing b) Economic Pricing

Penetration Pricing Price Skimming Loss Leaders Psychological Pricing

Source: Author’s own.

Following is a brief review of all the above pricing methods. A. Cost-oriented method Some frms may consider cost-based methods to fx the price because it provides the basis for a possible price range. Methods of pricing that are cost-oriented are as follows: i. Cost-plus pricing Cost-plus pricing involves adding a percentage (%) to the cost to fx the price. Assuming an expected 10% proft on the cost of the pharmaceutical product, the selling price of the product would be Rs 230. Example: Cost: $ 200 + Proft: 10% of $ 200 i.e. $ 20, Selling Price= $ 200 + $ 20 = $220 A product’s proft is the diference between its selling price and its cost. In order to determine the selling price, pharmaceutical marketers need to determine the cost of the drug and add a certain percentage (Docshare, 2017; Lumenlearning, 2022). ii. Markup pricing The markup pricing method is a variation of the cost pricing method. The markup is calculated based on the selling price, not the cost price. Markups are used by frms that operate on a cost-based basis (Docshare, 2017; Lumen Learning, 2022). Due to the unknown cost and markup percentage, the following formula is used to calculate the selling price: Formula: Average unit cost/Selling price Example: As a percentage of the cost, markup represents the diference between the selling price and the cost of a product. The additional price increase is ($125 − $100) × 100 = 25% when a product sells for $125 and costs $100.

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B. Customer-based pricing Pharmaceutical companies determine the price of their products based on the belief that customers will pay a certain amount. The price of pharmaceuticals is determined by the ability of consumers to pay, which difers from most other pricing strategies (Lumenlearning, 2022). A product’s price refects the consumer’s willingness to pay and his belief in the product’s value. The price is the determining factor in a purchase decision. Pharmaceutical manufacturers should segment the market in order to refect the diferent perceptions of value among diferent types of consumers (Docshare, 2017) for optimal pricing. It is also important for producers to know what consumers value and what they value. Customer-based pricing can be divided into three types: i) Penetration pricing In order to increase the number of customers, penetration pricing involves setting relatively low entry prices of products for penetrating a market, typically lower than those currently on the market. Customers are encouraged to switch to new products by ofering them at a lower price. A penetration pricing strategy is commonly used to increase a product’s market share (Lumenlearning, 2022). The frm can use this method as soon as it meets its price-raising objective. The concept of penetration pricing is best illustrated by the concept of special introductory ofers. In order to increase sales volume or share, market penetration pricing is implemented (Docshare, 2017). Over the short term, this will likely result in lower profts. It is important to note that penetration pricing does have some notable advantages, such as higher proftability and greater market share over the long run (Docshare, 2017). Penetration pricing is an efective strategy to compete against rival companies when a new product is launched almost identically in the same market with relatively low product diferentiation. ii) Price skimming Pricing skimming is the process of increasing prices initially and lowering them gradually. A pharmaceutical company skims prices by setting them higher than their competitors. New products usually face little competition in this way since they have unique technical features. Those who are early adopters buy the newest and best products on the market as they are willing to pay more for them (Docshare, 2017; Chand, 2022). The disadvantage of price skimming is that it is not sustainable as competitors soon launch competitive products, which puts pressure on the price, causing it to drop. Distribution (place) can also be a challenge for innovative new products. The improved margins that this strategy cannot deliver may have to be compensated with higher margins to convince retailers to stock the product (Docshare, 2017; Chand, 2022). Along with price skimming, frms may slow down demand growth for their products, giving their

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competitors time to come up with alternatives. As a result, competitors have an opportunity to create demand by exploiting these disadvantages. iii) Loss leaders The purpose of a loss leader is to attract consumers by setting the price below the cost price. It has become increasingly popular to use this method to promote products. The loss leader product encourages customers to buy other proftable items in the store after purchasing it. Retailers and department stores employed this strategy in order to increase footfall in their stores (Docshare, 2017; Chand, 2022). As a competitive weapon, pricing is an important part of the marketing mix. When businesses lower their prices than their competitors, a loss leader pricing strategy can attract new customers and make existing customers more loyal. Any product can be used as a loss leader to drive short-term pricing strategies (Docshare, 2017; Chand, 2022). Loss leader pricing facilitates bulk purchases. It is common for customers to purchase as many units as possible when there is a sufciently high price discount (assuming the product is not perishable), resulting in a loss for the manufacturer. iv) Psychological pricing When pricing is psychological in nature, it is called “ODD-EVEN.” Price levels that seem unreasonable can sometimes be set, for example, 99 rupees, 199 rupees, 599 rupees, etc. It costs 99 rupees and 199 rupees to buy a T-shirt in retail stores, for instance. This unusual pricing may be caused by customers’ perception of price barriers. In their minds, 1 rupee is a lot when they purchase something for 99 rupees. There can be a signifcant diference in price between one rupee and another (Docshare, 2017; Chand, 2022). Pricing is psychologically manipulated so that customers believe the product is more afordable than it actually is. This pricing method is benefcial to customers who are looking for value. C. Competitor-based pricing Prices set by competitors have the greatest impact on those set by rival frms. There is a competitive pharmaceutical market when there is a wide variety of drug products available to customers or patient associations. Buying from the lowest-priced provider or choosing one that ofers the best customer service are two options available to consumers (Docshare, 2017; Chand, 2022). The value of a product, however, determines how consumers diferentiate it. Since most frms do not have enough power to set prices above their competitors in competitive markets, it is difcult for them to set prices above their competitors. Direct competitors often charge the same price as their direct competitors – i.e. they charge the same price as their direct competitors. As price takers, these companies accept what the market is ofering at the moment (Docshare, 2017; Chand,

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2022). A competitive pricing strategy has the advantage that selling prices should match those of competitors, so price shouldn’t be a competitive disadvantage. Nevertheless, attracting customers is not the only way an organization can succeed. In order to succeed, competitors must go beyond price – for example, they must ofer better customer service or be more accessible. Infation increases the cost of living over time. When infation reaches a certain level, it hurts the economy (CNBC TV, 2022; USC University of South California, 2022). As prices rise, there is a likelihood of an economy that is fast growing. People buy more than they need to avoid tomorrow’s higher prices, which fuel demand for goods and services (CNBC TV, 2022; USC University of South California, 2022). Using evidence-based solutions, the USC Schaefer Centre aims to control spiralling drug prices as well as reward innovation and build the political consensus required to achieve them (CNBC TV, 2022; USC University of South California, 2022). Researchers at the Schaefer Center have proposed the following initiatives: a) Aligning drug costs with benefts through value-based pricing (CNBC TV, 2022; USC University of South California, 2022). b) Promoting competition among generic drug manufacturers (CNBC TV, 2022; USC University of South California, 2022). c) Improving transparency in the drug distribution process (CNBC TV, 2022; USC University of South California, 2022). d) Paying attention to global pricing (CNBC TV, 2022; USC University of South California, 2022).

4.6 Price War and Pricing of Generic Drugs in the Global Context The Government of India indicated that wholesalers, distributors, and retailers would earn lower margins on medicines in growth markets as part of trade margin rationalization (TMR) (CNBC TV, 2022; USC University of South California, 2022). Small- and medium-sized pharmaceutical companies have called on the government to replace the existing formula with one-molecule, one-price (CNBC TV, 2022; USC University of South California, 2022). The trade margin is the diference between the price manufacturers sell to the stockist and the price they sell to consumers (CNBC TV, 2022; USC University of South California, 2022). Scheduled drugs are priced by the National Pharmaceutical Pricing Authority (NPPA), while non-scheduled drugs are subject to annual increases of up to 10% (CNBC TV, 2022; USC University of South California, 2022; Pilla, 2019).

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4.6.1 Generic Drug and Pricing of Generic Drug The dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use of a generic drug are the same as those of an already marketed brand-name drug (CNBC TV, 2022; USC University of South California, 2022). Marketers use cost-efective strategies to encourage the use of less expensive but equally efective drugs (CNBC TV, 2022; USC University of South California, 2022). This approach will result in lower reimbursements for generic equivalents to brand-name drugs (CNBC TV, 2022; USC University of South California, 2022).

4.6.2 One-Molecule, One-Price Policy (OMOP): Meaning and Concept Every drug made with the same chemical composition will be priced the same under OMOP, regardless of the brand that manufactures it (CNBC TV, 2022; USC University of South California, 2022). In recent years, however, a medical marvel has amplifed the demand for this uniform formula (CNBC TV, 2022; USC University of South California, 2022).

4.6.3 Case Study a) The prices of medicines with similar chemical compositions vary between pharmaceutical companies (CNBC TV, 2022; USC University of South California, 2022). FDC Limited manufactures Atenolol Tablets 50 mg that sell for approximately Rs 8 per strip, while Nicholas Piramal India Limited sells it for approximately Rs 64 per strip (CNBC TV, 2022; USC University of South California, 2022). b) Zydus Cadilas diclofenac tablets are available under four diferent names, Activa, Diclofen, Inac, and Jonac, with a price range of 19 paise to Rs 1.29 for a 10-tablet pack (CNBC TV, 2022; USC University of South California, 2022). A formula to determine the retail price of drugs was proposed by the Drug Price Control Order (DPCO) (CNBC TV, 2022; USC University of South California, 2022). To determine the price at which consumers will buy drugs, this formula calculates material costs (MC), conversion costs (CC), packaging costs including process losses (PM), packing charges (PC), and maximum allowable postmanufacturing expenses (MAPE) (CNBC TV, 2022; USC University of South California, 2022). This means price to the retailer (PTR) = (MC+CC+PM+PC) × (1+MAPE/100) + ED (CNBC TV, 2022; USC University of South California, 2022).

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4.6.4 Pharmaceutical Price War in Growth Markets: Implications and Impact According to a senior industry ofcial, companies increase drug prices by changing MAPE, resulting in drastic price variations between drugs ) (CNBC TV, 2022; USC University of South California, 2022). The cost of research and development, product development, and regulatory approval has been increased by companies to raise drug prices) (CNBC TV, 2022; USC University of South California, 2022). In July 2013, the new Drug Price Control Order (DPCO) went into efect, resulting in more than Rs 2000 crore in losses to the pharmaceutical industry. To prevent the gap from widening, DPCO sets a ceiling price) (CNBC TV, 2022; USC University of South California, 2022). The pricing mechanism of DPCO is market based, according to the company. On the simple average price of all brands of the drug with at least 1% market share of the total market turnover, a notional 16% retailer’s margin is applied (CNBC TV, 2022; USC University of South California, 2022). A cost-based pricing system, which was based on manufacturing costs as well as reasonable proft margins, was used by DPCO prior to this change. Health experts argue that prices would be lower as a result of this mechanism (CNBC TV, 2022; USC University of South California, 2022). A fear psychosis was developed among pharmaceutical traders in India because they believed OMOP would help large pharmaceutical companies sell their drugs at high prices (CNBC TV, 2022; USC University of South California, 2022). The meagre margins of generic brands, on the other hand, may cause them to disappear within a few years. Additionally, some industry experts predict that the monopolies of large pharmaceutical companies will be disrupted (CNBC TV, 2022; USC University of South California, 2022). There has been an argument that the implementation of OMOP will not beneft pharma MSMEs (Ministry of Micro, Small and Medium Enterprises) since brand value still belongs to larger pharmaceutical companies. Increasing the weighted average again will result in a price increase, according to another argument (CNBC TV, 2022; USC University of South California, 2022). Unafordable medicines lead to the deaths of 2.4 million Indians each year, according to a report published in the Lancet in 2018. A total of 136 nations were evaluated in the study, with this being the worst outcome (CNBC TV, 2022; USC University of South California, 2022). As recommended by the Anoop Satpathy committee, the number of individuals below the national wage threshold of Rs 375 per day has increased by 230 million between 2020 and 2021, according to a report by Azim Premji University, titled “State of Working India 2021: One Year of Covid-19”. Despite this, India’s health expenditures remain relatively low (CNBC TV, 2022; USC University of South California, 2022). Drug prices decline signifcantly after patent expiration, with price ratios ranging from 6.6% to 66% in the frst one to fve years following the expiration of the patent (CNBC TV, 2022; USC University of South California, 2022). There

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were varying degrees of price reductions across products and countries. Analysis of country-specifc prices is necessary after a patent expires (CNBC TV, 2022; USC University of South California, 2022). In future research, more countryspecifc data should be collected to reduce uncertainty regarding pharmaceutical price developments (CNBC TV, 2022; USC University of South California, 2022).

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Conference, Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 247–263. ISBN: 978-93-5258-522-9. Nandy, M. & Pal, B. (2016f ). “Does Research & Development (R&D) Activities Impact Financial Performance? An Empirical Study Based on Selected Multinational (MNC) Pharmaceutical Companies Operating in India”, Presidency Journal of Management Thought & Research, Vol. VII, No. 2, pp. 39–63. Nandy, M. (2018a). “Impact of Research & Development (R&D) Activities of Listed Indian Pharmaceutical Companies on Their Financial Performance: An Empirical Study”, available at: https://shodhganga.infibnet.ac.in/handle/10603/302397 (accessed 9th December 2022). Nandy, M. (2020b). “Clinical Trials to Combat Covid-19: Case Based Approach of a NSE Listed Indian Pharmaceutical Company”, Adhyan – A Journal of Management Science, Vol. 10, No. 1, pp. 1–7. Nandy, M. (2020c). “Do R&D and Marketing Infuence Return on Equity in the Indian Pharmaceutical Industry? An Empirical Study Based on DuPont Analysis”, Presidency Journal of Management Thought & Research, Vol. 10, No. 2, pp. 1–19. Nandy, M. (2020d). “R&D Trend Analysis through ARIMA Model to Combat Covid19: Empirical Evidence from NSE Listed Pharmaceutical Company”, SUMEDHAJournal of Management, Vol. 9 No. 1, pp 1–19. https://doi.org/10.46454/sumedha/9.1 .2020.1. Nandy, M. (2020e). Pharmaceutical Marketing – An Applied Approach. Pacifc Books International, New Delhi, First Edition 2020, pp. 1–203. ISBN: 978-93-8853655-4, available at: https://www.amazon.in/Pharmaceutical-Marketing-Applied -Approach - Crown /dp/938853655X /ref =sr _1 _ 2 ?cr id =M A Z2HFQM9XVS &keywords=mithun+nandy&qid=1643701964&s=books&sprefx=mithun+nandy %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders in Indian Context, Sustainable Development and Informatics. Lincoln Research and Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3 ?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/ dp/9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy &qid=1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1 -4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree

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Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020 -0067. Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1.

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Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Pilla, V. (2019). “Explainer: How Drug Prices are Regulated in India”, available at: https://www.moneycontrol.com/news/business/explainer-how-drug-prices-are -regulated-in-india-4606751.html (accessed 6th September 2022). Sinha, D.K. (2022). “Pricing of Products: Defnition, Factors and Other Details Marketing Mix”, available at: https://www.yourarticlelibrary.com/marketing/marketing-mix /pricing-of-products-defnition-factors-and-other-details-marketing-mix/41099 (accessed 18th January 2022). USC University of South California. (2022). “Pharmaceutical Pricing: Reining in Costs Without Risking Innovation”, available at: https://healthpolicy.usc.edu/case-study -pharmaceutical-pricing-and-innovation/ (accessed 6th September 2022).

5 DISTRIBUTION FUNCTION IN PHARMACEUTICAL MARKETING

5.1 Role of Distribution in Pharmaceutical Marketing The pharmaceutical industry is one of the fastest-growing sectors in the world. In the United States, it generates the largest amount of revenue. In comparison with common items, pharmaceuticals are distributed in a unique way. International Pharmaceutical Industry (IPI) places a greater emphasis on retail, and pharmaceutical companies handle most distribution. International pharmaceutical companies usually distribute their products from their own warehouses that are located around the world to ensure sustainable supply chain practices (Nandy & Biswas, 2015). The distribution function is one of the most important business functions since it ensures the availability and visibility of drugs on the market. Generally, distribution systems can be defned as any system that involves the transfer of economic goods between pharmaceutical manufacturers and consumers. In pharmaceutical marketing, distribution channels facilitate the movement of goods from a producer to consumers, or patients, who are the end users (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Manufacturers, wholesalers, and retailers work together with pharmaceutical marketing channels to make products accessible to consumers. A company must ensure the proper distribution of its drugs to patients if it wants to remain competitive in the market for a long time. In addition, this supply chain ecosystem allows all concerned stakeholders to conduct fnancial activities and facilitate all buying and selling activities related to pharmaceutical products. The following sections detail some important distribution aspects of pharmaceutical marketing (Nandy & Pal, 2016f ). DOI: 10.4324/9781003313168-5

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5.1.1 Nature of Distribution The international pharmaceutical industry (IPI) has continued to grow at a rapid rate with double-digit growth over the past several years. The rapid growth of the global distribution system has not yet been translated into a modernized one (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). There are several hurdles in the global pharmaceutical distribution process which are listed below. a) The network distribution is highly fragmented. b) Restrictions on regulatory reforms. c) Strong opposition from those involved in the supply chain of pharmaceutical products, such as trade associations.

5.1.2 Management of Stock-Keeping Units (SKUs) Distribution is a critical skill for the international pharmaceutical industry (IPI) in its geographically diverse country with extreme climates. A company must make all of its stock-keeping units (SKUs) available at all times due to the long channel of distribution and the high incidence of brand substitution (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Almost all brands of drugs have generic versions available worldwide, and retailers can earn higher margins for generics than for branded products. Innovative pharmaceutical marketing companies make their products freely available to stockists and retail counters to reduce the risk of substitution.

5.1.3 Supply Chain Process, Paradigm Shift, and Credit Period There has been a paradigm shift in drug distribution in the international arena. Prior to the development of clearing and forwarding agents (CFAs), multinational pharmaceutical companies used a diferent distribution and delivery system, where they possessed their own warehouses and depots. In the distribution chain, these organizations (CFAs) are primarily responsible for maintaining storage (stock) of the multinational’s products and distributing stock-keeping units (SKUs) to retailers upon request. The majority of multinational companies maintain one to three CFAs in each state or area of each country. Typically, multinational pharmaceutical companies work with 25–35 CFAs to serve a particular country. In contrast to the stockist (a regional distributor) who can receive stock from more than one company (typically 5–15 companies depending on how many companies are in the city), a stockist may be able to handle stock from

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up to 50 diferent pharmaceutical companies. In turn, the stockist, after 30–45 days (usually a credit or time limit), pays for the products directly in the name of the pharmaceutical company or in the name of CFA according to the CFA’s and the pharmaceutical company’s payment norms and compliances. Multinational pharmaceutical companies pay sales incentives or commissions to CFAs on a yearly basis, once or twice, based on the percentage of their total turnover. In the frst instance, the manufactured product passes through the company’s central warehouse, which supplies it to the company’s CFA or super stockist. A stockist, a sub-stockist, or a hospital receives the stocks from the CFA. Ultimately, retail pharmacies obtain products from stockists or sub-stockists, through whom they distribute them to consumers (patients). Occasionally, small manufacturers directly supply the super stockist with drugs (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

5.1.4 Service to the Patient Fraternities The distribution of healthcare has never been just about delivery – delivery of the right medicine at the right time to the right patient in a safe and efcient manner. Managing a complex supply chain is what a pharmaceutical distributor does every day, serving as a link in the healthcare system and delivering medicines securely, safely, and efciently. Distribution companies help pharmacies, hospitals, long-term care facilities, clinics, and other healthcare providers (HCPs) by stocking their shelves with stock-keeping units (SKUs) that patients need. Pharmaceutical companies and marketing frms would have to devote considerable fnancial, logistical, and human resources to this task without distributors, which they could instead devote to other tasks. Distributing pharmaceuticals internationally is more efcient, reliable, and secure. Because the healthcare system is changing rapidly, distributors are constantly developing new methods of moving and securing the nation’s medicines. While doing so, they also maintain a strict focus on patient safety. Worldwide, pharmaceutical distributors are technology innovators, information management experts, security experts, and efciency experts who streamline pharmaceutical supply chains to save time and money for the country’s healthcare system (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

5.2 Distribution Channels and Their Importance in Inventory Control and Management In managing its supply chain, the international pharmaceutical industry (IPI) faces several challenges. As the pharmaceutical supply chain ecosystem expands, the number of all stakeholders connected increases exponentially. The following is a brief description of the international pharmaceutical supply chain ecosystem (Figure 5.1).

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Manufacturer

Central Warehouse

Super Stockist

Stockist

Sub-Stockist

Hospitals

Chemists/ Retail Counters FIGURE 5.1

Supply chain ecosystem of international pharmaceutical marketing. Source: Author’s own.

The following is a brief description of these supply chain stakeholders.

5.2.1 Clearing and Forwarding Agents (CFAs) The primary responsibility of these organizations is maintaining storage (stock) for the company's products and forwarding stock-keeping units (SKUs) on customer requests. Indian companies typically maintain one to three CFAs per state. Usually, a company works with between 25 and 35 CFAs in a particular nation.

5.2.2 Stockists Basically, a stockist is a distributor who deals with more than one manufacturer (usually, 5–15 depending on the city area), and may even deal with 30–50. Payments are realized as per the contract or organization’s norms. They have a credit limit of 30 to 45 days. It is the stockists or sub-stockists who provide products to retail pharmacies, who then provide them to the patients.

5.2.2.1 Sub-Stockists As long as they establish themselves as a big player and qualify for getting a manufacturer’s stockist licence, sub-stockists get their stock from stockists and operate on a less percentage commission in comparison to the stockists.

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5.2.2.2 Chemists/Retailers Based on the type of drug, generic/branded/price-controlled, retailers receive 15 to 20% margin, and even more when it comes to counterfeit medications. Retailers sell medicines directly to patients after they have been prescribed by healthcare providers (HCPs). Pharmacy counters should always be able to disburse medicines according to a prescription from qualifed health care providers (HCPs) and should have a valid drug licence (DL).

5.2.2.3 Logistics Providers Logistics providers transfer stock according to a kilo rate, which varies with market conditions over time. In logistics, local players who quote the lowest price manage the process in a cost-efective manner. The pharmaceutical companies order the products from suppliers who ofer surprisingly low prices and deliver them by public transportation according to the order placed by authorized distributors.

5.2.2.4 Association of Druggists and Stockists In the international context, stockists are very important in pharmaceutical distribution. Pharmaceutical companies cannot bypass stockists and sell directly to institutions or retail chains. They may face a ban from the stockists and considering the substitutes available for each molecule, companies cannot take the risk of losing the sales.

5.2.2.5 Retail Pharmacy Chains Pharmacy retail sales are a very small percentage of total sales in the international context (approximately 3%). Since manufacturers would not sell their products directly to retailers, they can only obtain the stock from the company's stockists. Stockists control 97% of the remaining market. The number of stockists or distributors depends on the volume and region they serve. Retail chains rarely invite medical representatives to meet with their distribution managers to discuss a sale.

5.2.2.6 Institutional Supplies The percentage of drugs sold to institutions is much smaller (nearly 10%) in the international context. When it comes to institutions (such as state-funded, centrally funded, and large hospitals), distribution is handled by either the stockists or by CFA directly. A number of companies make bids for the tenders that institutions pass. Business-to-business (B2B) is another name for this type of supply.

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5.3 Selection of Supply Chain Partner in Pharmaceutical Business As a result of a supply chain partnership, upstream and downstream entities in the same supply chain form a strategic relationship. Pharmaceutical companies can beneft from establishing a good supply chain partnership in the following ways: a) Cost reduction. b) Reaction time is shortened. c) Value creation. To successfully build a supply chain strategic partnership, choosing the right pharmaceutical business partners is one of the key aspects. It is important to select the right partner, such as a logistics service provider or contract manufacturer, as changing providers is tedious, costly, and time-consuming. In order to properly manage the relationship over time, it is essential to have an account management structure and solid service level agreements in place after selecting the right partner. When selecting the right partner for Logistics or Contract Manufacturing Organization (CMO) activities, key considerations include: a) Strategic and cultural ft, i.e. alignment between a potential partner and the pharmaceutical brand owner. b) Experience and capability. c) Experience and knowledge of the industry. d) Goodwill in the market. e) Stability of the fnancial system. Pharma supply chain management involves optimizing a company’s operations so that they are more responsive to market demands and efcient. In this way, the pharmaceutical company will be able to realize the best return on its investment (ROI). Responding to customers’ needs, as and when they arise, or if they change, is a key element of a responsive supply chain. Similarly, efcient supply chains ensure peak productivity, reducing costs for the organization. Choosing potential pharmaceutical supply chain partners can sometimes be infuenced by foreign direct investment (FDI). Pharmaceutical supply chain management is crucial for managing temperature-sensitive pharmaceutical products (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f).Temperature conditions in hot and humid geographical areas are afected by climate change, which requires additional care to maintain a robust and seamless supply chain for marketing zero-defects pharmaceutical products followed by the state-of-the-art refrigeration facility.

5.3.1 Identify the organization’s business goals An organization’s business type should be described clearly and concisely, as well as the challenges the organization must overcome and the objectives they must

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achieve. Through this process, the organization will be able to better understand its business and what it needs to succeed.

5.3.1.1 Defining the Selection Criteria Knowing the organization’s business a little better and knowing what is needed, the pharmaceutical organization can now list the criteria for the company’s selected supply chain partner; this will help narrow down the options.

5.3.1.2 Mutual Understanding between the Organization and Its Supply Chain Partner Pharma companies need supply chain partners who understand their businesses and processes and make sure that theirs are compatible with those of the pharmaceutical company. It indicates that the organization's potential partner is well aware of the services they need to provide to maximize the organization's bottom line. By doing so, both parties will be able to understand their expectations.

5.3.1.3 Certifications of the Organization’s Supply Chain Partners Getting a referral from a business contact or friend is one thing, but certifcation is an indication of the quality of a partner. The organization’s potential candidate will be able to prove that they are competent and capable of observing any regulations related to pharmaceutical organization's business with ISO certifcations, Drug Licence (DL), Permanent Account Number (PAN), and Business Firm registration certifcate. When marketing pharmaceutical products that are developed based on pharmaceutical research and development (R&D), it is important to have all these legitimate and relevant certifcates.

5.3.1.4 Stability of the Financial System Any business organization’s arrangement of fnance ensures the efcient day-to-day management of all commercial activities.The fnancial standing and stability of the partner company are critical to the success of the partnership.When a multinational pharmaceutical organization’s supply chain partner has fnancial difculties, the consequences can extend to the organization’s business, disrupting or even stalling its operations.To some extent, a business’s fnancial standing is determined by how well its partners deliver what it needs to ensure global competitiveness and adequate fnancial returns (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f).

5.3.1.5 Access to the Database and Transparency Relationships between partners in the pharmaceutical supply chain should continue to emphasize this. It is imperative to measure performance through

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auditing and assessment. For this to work both parties must be transparent, including making sure inventory and data can be seen at any point in the process. The assessment process ensures that the organization’s selected supplier has no signifcant shortcomings in their systems that might compromise the quality of the service the organization ofers.

5.3.1.6 Providing Comprehensive Transportation and Warehousing Services An organization engaged in the pharmaceutical industry knows the importance of a contingency plan. A pharmaceutical company’s chosen suppliers must be able to prove they have a viable alternative in the case of a particular warehouse or transport option being unavailable.

5.3.1.7 Scalability In the event that any pharmaceutical organization plans to expand its business in the near to medium term, the scalability of the organization's partners is also a critical consideration. In order for an organization's supply chain to be capable of coping with the demands of a growing business, its partners must also be prepared to do so. The organization's prospective supply chain partner should be able to scale up when needed.

5.4 Issues and Implications of Channel Confict in Pharmaceutical Marketing In order to understand channel confict, we frst have to defne it. Channel confict occurs when channel partners such as manufacturer, wholesaler, distributor, retailer, etc. compete against each other for the sale of the identical brand ofered by a particular pharmaceutical company (Citeman, 2006). Here are some examples of channel conficts in pharmaceutical marketing. They are categorized into three types: a) Channel conficts on a vertical level. b) Horizontal conficts. c) Conficts on multiple channels.(Figure 5.2)

5.4.1 Confict at the Vertical Level This is the channel confict between higher and lower level channels, i.e. between wholesalers and manufacturers. Pharma wholesalers and chemists also engage in vertical confict by refusing to work with pharmaceutical companies and boycotting them.

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Vertical Channel Conflict

Horizontal Channel Conflict

Channel Conflicts

Multiple Channel Conflict FIGURE 5.2

Types of channel conficts. Source: Author’s own.

5.4.2 Confict at the Horizontal Level On the issue of price and territory jumping, it’s a confict between channel members on the same level, i.e., between the same retailers.

5.4.3 Confict on Multiple Channels When a middleman uses direct and indirect methods of distribution, they clash with the manufacturer. For example, the pharmaceutical company may have its own shop in the area, and it may distribute its products through reputable middlemen within the same region. The former is direct distribution, while the latter is indirect distribution. There is a confict when the shop prices are lower than those of the middlemen or dealers. Likewise, confict can arise when a company's sales force and dealer work together to obtain an order.

5.5 Nature or Causes of Channel Conficts The channel confict is caused by a combination of fnancial and non-fnancial factors. The causes are as follows:

5.5.1 Incompatibility between Goals The perceived goal incompatibility between pharmaceutical manufacturers and wholesalers is one of the major conficts between them. Pharmaceutical manufacturers perceive their goals as achieving substantial market share and proft maximization over the long term, whereas wholesalers perceive their goals as obtaining sales maximization and profts maximization. Wholesalers even prefer to focus on short-term proftability and higher margins. Manufacturers accuse wholesalers of being weather partners, and wholesalers accuse manufacturers of squeezing margins. Large manufacturers typically blame their channel partners for squeezing margins.

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5.5.2 Ambiguity in the Role Often channel conficts arise due to ambiguity in the role. Multi channel confict is often brought about by ambiguity in the role. Some pharmaceutical companies are unclear about their sales force’s role in selling products to major accounts or institutional customers in their territory. As a result, these companies may have problems with their channel partners.

5.5.3 Different Perceptions of the Market A confict between the manufacturer and the middleman may occur due to different perceptions of the market and economy. Several pharmaceutical manufacturers may introduce multiple products and brands in India to capitalize on a growing middle class. Some manufacturers may even hire wholesalers in distant locations. Existing dealers of this company may not see the picture this way and may perceive appointment of multiple dealers and downsizing their (former dealers) territory as dilution of their infuence (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

5.5.4 The Magnitude of the Confict Conficts are classifed according to their severity. These can include territorial disputes or price disputes between dealers. However, when the confict has substantial impact on a manufacturer's sales or market share in a territory, the manufacturer must take the initiative to resolve it. As the channel leader, the manufacturer should take action. A major confict will also have an adverse efect on his market share.

5.6 Managing Pharmaceutical Channel Conficts By taking the following steps, pharmaceutical marketing companies or manufacturers can minimize channel confict and disruptions in the supply chain process.

5.6.1 Transparency in Communication Pharma manufacturers and channel members can minimize confict by communicating transparently. Informing recipients of the company’s thoughts on the market and products on a regular basis is a good way to stay connected.

5.6.2 Council of Dealers/Association A dealer association or dealer council is another means of resolving confict. Dealer associations and councils can resolve horizontal or vertical conficts. These councils continue to play an important role by providing a platform for dealers to voice

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their grievances against pharmaceutical manufacturers and marketing companies. Dealer councils can be an efective tool for intervening in the market if the pharmaceutical manufacturer or marketing company is able to keep them focused on market leadership, maximization of returns on investment (ROI), and accepting constructive suggestions (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

5.6.3 Goals of Supreme Importance One way to resolve channel confict in pharmaceutical marketing is to establish the super ordinate goal of maximizing customer satisfaction. By motivating the channel members to perceive customer satisfaction as their ultimate goal, resulting in maximum profts for all parties involved, much of the confict can be resolved. It is easier to develop super ordinate goals when the threat from other frms is high.

5.6.4 Mediation and Arbitration Arbitration and mediation are the only ways to resolve conficts between pharmaceutical channel members. A pharmaceutical manufacturer or marketing company may arbitrate or mediate in the intra-middleman confict (between wholesalers and retailers). However, when it is between a manufacturer and a dealer, arbitration or mediation may be conducted by independent individuals or institutions such as courts.

5.7 Retail Competition and Ethics in Pharmaceutical Sales It is a difcult task to compete with the various pharmaceutical companies in the global as well as local markets in the current globalized retail age. As one of the sectors facing ferce competition in the industry, the pharma industry is among the most competitive. Customers and patients now have access to all daily use commodities as well as drug products under one roof through the introduction of retail malls and pharmacy chains. For a high, middle, and lower class segment, they are getting both basic and secondary requirements. Now the question is, what will become of small retailers in the pharmaceutical industry? Most of the time, pharmaceutical retailing is grouped with fast moving consumer goods (FMCG) retailing. Consumers can buy everything in an air conditioned (AC) environment: fruits, garments, healthcare products, and many other essential items. Retail pharmacies ofer patients and end users goods and services intermediated between wholesale or distributor prices and drug products. In a perfect world, retail pharmacies would be able to ofer a wide selection of pharmaceutical products to their end customers. Retail pharmacies compete with each other when they compete with the patient fraternities by ofering various kinds of discounts, schemes, and creating large patient pools for the patients (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

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5.7.1 Sales and Marketing Ethics Ethics in marketing, or just ethical marketing practices, are not really marketing strategies. Ethics are more of an approach to marketing. Integrity, honesty, and fairness are promoted through sales ethics and ethical marketing. The problem with this subject is that it is subjective, and everyone has a slightly diferent understanding of what constitutes right and wrong. Due to this, ethical marketing isn't so much a rule system as it is a set of guidelines that follow honesty and integrity. Example: Diet pills are a good example of this, despite the fact that they are almost never efective. What makes them inefective? Diet pills are manufactured by pharmaceutical companies who exaggerate their claims. Those companies would not last for long if their products were advertised ethically. Despite the negative impact their business model may have on consumers, it is not illegal and so they continue to operate.

5.7.2 Ethical Principles of Marketing For ethical marketing, there are a few basic principles to follow. Following are some of those principles. a) b) c) d) e)

All forms of marketing communication will be held to a standard of truth. Marketing professionals should act ethically. The line between advertising and entertainment is unmistakable. Marketers will disclose how they are paid for endorsing products. The consumer will be treated fairly depending on what the product is and who the consumer is. f ) Consumer privacy will always be respected and protected. g) Professional or government-established standards and regulations will be adhered to by marketers. h) All marketing decisions should be informed by ethical considerations in an honest and open manner.

5.7.3 Unethical Forms of Advertising The pharmaceutical industry is closely associated with certain types of unethical advertising. The following section discusses these types of unethical advertising.

5.7.4 Advertisement Using Surrogates The law prohibits the open advertising of certain products such as alcohol and cigarettes in certain jurisdictions. However, the companies that produce these

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products continue to advertise. By referring to these products indirectly, they remind customers they exist without directly mentioning them.

5.7.5 Exaggeration Advertisers sometimes intentionally misrepresent the popularity of a product or its quality. When telecommunication companies promise coverage no matter where you are with their service, or when internet service providers claim to be able to provide upload and download speeds that they cannot possibly deliver, an example would be.

5.7.6 Subjectivity In this case, the advertiser makes subjective claims about their products, as opposed to those that can be easily tested. For example, saying “the best cough syrup” isn't something the customers can easily verify.

5.7.7 Lack of Verifcation A claim of results is not backed up by any scientifc evidence when an advertisement makes such a claim. Pharmaceutical companies that claim their products will cure all acne on your face, or that they’ll increase hair growth in a few months without explaining how their product works, are making unsubstantiated claims.

5.7.8 Stereotypes of Sexism An advertisement that depicts women as domestic servants or sex objects reinforces negative stereotypes and contributes to a deeply sexist culture. A condom brand is being promoted by female fraternities for healthy sex and the prevention from Human immunodefciency virus (HIV) infection and acquired immune defciency syndrome (AIDS).

5.7.9 False Comparisons of Brands It is unethical for a company to make misleading or deliberately false statements about competitors.

5.7.10 Children’s Exploitation Children see a lot of marketing advertisements and are usually incapable of evaluating them objectively. Marketing companies that seek to exploit children’s innocence for their own proft are unethical. Immune booster health drinks are an example of this.

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5.8 Fundamentals of Pharmaceutical Retail and Pharmacy Chains The emerging economies are now considered to be one of the fastest-growing economies in the world. Emerging economies are growing in all aspects of their economy: healthcare, agriculture, education, information technology, space technology, development of roads, rail lines, and airways, etc.The pharmaceutical pharmacy chain played an important role in delivering important medicines to the doorsteps of patients across the globe during the unprecedented COVID-19 and pandemic times.The core of any country’s trade and commerce; retailing must be given greater attention to fuel any country’s growth. In this aspect retailing of pharmaceuticals can be divided into two categories such as: I. Organized pharma sector. II. Unorganized pharma sector. These two pharma sectors are briefy described below. I. Organised Pharma Sector The pharmaceutical supply chain refers to the process of manufacturing and delivering prescription medicines to patients. In the United States, many pharmacy chains are owned and operated by regional supermarket chains or big-box stores such as Walmart. Most of the pharmacies are located within the chains themselves. Walgreens, CVS, and Rite Aid are the three largest free-standing pharmacy chains in the United States. II. Unorganized Pharma Sector: Unknown and Small Retailers It is generally the case that organized pharma chains are owned by large and well-established companies that have decades of experience managing large industries, organized businesses, etc. The company specializes in the trading of various drugs, manufacturing drugs, processing, packaging, logistics handling, inventory management, cold storage, etc. Being high-end players, these companies process raw materials and then formulate drugs from raw materials. The company specializes in branding, packaging, and labelling of fnished products, and it uses all tools of the marketing mix. a) b) c) d) e)

Product Price Place Promotion Service etc.

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5.8.1 Organized Pharma Sectors/Pharma Chains Have the Following Advantages 1. Economies of scale: Many large players in the pharmaceutical retail sector purchase raw materials in bulk quantities, process them in bulk quantities, package them in bulk quantities, and use high-tech processing, packaging, and transport systems, so they can purchase fnished drugs at the lowest possible prices. 2. Technology driven: Major players use modern, latest, and automated machines to manufacture drugs, manage inventories, supply chains, and ofer free samples to Health Care Providers (HCPs) and hospitals. 3. Retailing their own pharma brands/generic brands along with competitors’ brands: This will help in promoting their own brands/generic brands to doctors and hospitals in order to generate more profts by providing free samples and sponsoring free treatments. 4. Passing advantages to patients and consumers: With the optimum use of available resources and technology, some price. Advantages can be passed over to patients. 5. Increase in market share and profts: The pharmaceutical chain can achieve higher market share and profts with all the benefts it ofers. 6. Discount parameter: Discounts from 10% to 25% are ofered by pharmacies to attract customers and sell drugs. The second type of pharmaceutical retailers is the individual outlets, i.e. small retail medical shops.

5.8.2 Disadvantages to Small Pharmaceutical Retailers 1. No economies of scale to small medical stores: Small stores buy from drug distributors in small quantities at higher prices without schemes thereby reducing proft margins. 2. Small geographic area: There are many small retail medical shops in these small lanes and by-lanes that can cater to a limited range of patients who live around those areas. The result is lower sales turnover and lower profts. 3. No home delivery services: Generally, small medical shops do not have a lot of manpower or are operated by families, so they cannot hire people for home delivery. 4. Winding up of medical shops: Despite the threats from large pharma chain stores, most of these stores close their stores and sustain huge losses. 5. Losses from expiry of medicines: New formulas are launched frequently, and doctors always want to try new formulas on patients, which in turn slows down sales of old formulas, which in turn results in a large number of expired medicines leading to heavy losses. 6. Discounts can’t be ofered: Small medical shops typically buy in smaller quantities and are unable to participate in various schemes based on quantity

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purchases, therefore their unit purchase prices are higher and discounts cannot be ofered.

5.9 Direct-to-Consumer Advertising (DTCA) As opposed to specifcally targeting health professionals, direct-to-consumer advertising involves marketing and advertising pharmaceutical products directly to patients. Direct-to-consumer advertising refers to advertising and marketing pharmaceutical products directly to consumers rather than to health professionals. Prescription medicines, medical devices, diagnostic devices, and other pharmaceutical products are advertised in this way (Amuratech, 2022; Wikimili, 2021). The term is synonymous primarily with the advertising of prescription medicines through mass media platforms, principally television and magazines, but also through the internet. The DTCA regulations generally apply to advertising materials that describe a prescription’s indications and benefts, whereas they may be lenient if they do not discuss its uses. In many countries, prescription drugs cannot be advertised directly to consumers. DTCA poses ethical and regulatory concerns, particularly in regard to how they may infuence prescribing of medications based on consumer demand even if the medication may not be medically necessary or if cheaper alternatives exist. In the United States, ad spending by drug makers reached US$5.2 billion in 2016, according to estimates. Critics of DTCA argue that too much money is spent on marketing medications rather than on research and development (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ). A direct-to-consumer advertisement (DTCA) targets consumers directly, especially when the product requires a middleman to facilitate the transaction. Pharmaceuticals are not the only products that can be advertised in this way. Pharmaceutical companies use this type of advertising to promote their products, while fnancial companies use it to advertise the fnancial products they ofer. It is sometimes impossible for consumers to buy certain products on their own, such as prescription drugs. If this is the case, they should consult their healthcare provider. In other words, direct-to-consumer marketing facilitates communication between a doctor and a patient in order to increase sales. In addition to pharmaceuticals, DTC advertising may also involve medical devices, diagnostic services, and fnancial products and services. By creating a dialogue between patients and their physicians, direct-to-consumer advertising aims to increase sales of products that consumers cannot obtain on their own, such as prescription drugs.

5.9.1 Key Features of Direct-to-Consumer Advertising (DTCA) Below are some of the key features of DTCA. a) Direct-to-consumer advertising (DTCA) refers to marketing that targets consumers directly in industries that usually require a middleman to sell.

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b) Both the prescription pharmaceutical industry and the fnancial industry regularly use direct-to-consumer advertising to reach their customers. c) Examples of direct-to-consumer advertising are product claim ads, reminder ads, and help-seeking ads.

5.9.1.1 Types of Direct-to-Consumer Advertising (DTCA) The following three types of advertising are used for pharmaceutical products: 1. Product claim advertisements: This advertisement highlights the features and uses of a product. A product advertisement aims to inform the consumer about the efectiveness of the product. 2. Help-seeking advertisements: Help-seeking advertisements do not promote a brand or a product. A consumer will be informed about certain medical conditions and reminded to seek professional assistance. 3. Reminder advertisements: In such advertisements, the goal is to remind a consumer about a product. These advertisements are generally helpful for products that are already well established in the market. In this way, reminder ads at certain intervals remain in the minds of consumers. There are no product claims made in these advertisements.

5.9.2 Pros of Direct-to-Consumer Advertising (DTCA) 1. Consumers can self-educate themselves: Advertising generated by DTCA generates awareness among consumers about certain medical conditions and products. As a result, consumers are able to ask their doctors about alternative medicines for their medical conditions. 2. Encourages patients to seek professional consultation: Medical attention is recommended if patient fraternities have an underlying medical condition. Early intervention prevents problems from getting worse. This type of advertisement reminds and encourages people to seek medical attention. 3. Raises awareness about medical conditions: Health issues should be destigmatized and demystifed at all costs. The need of the hour is to raise awareness about medical problems and the importance of seeking assistance. There are many patients who fear going to the doctor, and there are also those who are ignorant of the process.

5.9.3 Cons of Direct-to-Consumer Advertising (DTCA) 1. May create panic amongst consumers: Advertisements of this type may create false fear among consumers. The purpose of advertisements is usually to draw attention to potential symptoms of a medical condition so that the consumer begins to relate every symptom he/she experiences with the said condition.

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2. Promotes unnecessary use of medications: While eating right and exercising regularly can also treat certain diseases such as lifestyle disorders in the long run, such advertisements promise a quick fx in the form of medications. 3. May overemphasize the efcacy or underemphasize the side efects of drugs: Advertising pharmaceutical products are regulated by various regulatory bodies, but advertisers fnd their way around guidelines and rules to promote their products in the most positive way possible. Their products must be labelled with side efects, but they must do so with caution so that consumers do not overlook them. In addition, they try to deceive consumers into believing that a drug is efective even when the statistics are low. The cost of healthcare may increase for everyone if pharmaceutical companies advertise directly to consumers. When forming an opinion on this topic, it is important to consider these factors. These advertisements provide benefts to society, such as educating consumers, etc., but at the same time, we should not ignore their faws. Regulating such advertisements cautiously is necessary to prevent faws from outweighing advantages.

5.9.4 Impact of DTCA in the Pharmaceutical Marketing It has been argued that direct-to-consumer advertising infuences the doctor– patient relationship, such that patients express a desire for the advertised, namebrand drugs as their primary concern during a doctor's visit, and may become interested in newly-introduced medications that are still undergoing post-marketing evaluation. In studies, direct-to-consumer advertising has contributed to the frequency with which patients request opioid prescriptions from their doctors. When a patient requests a particular medication even if that medication is not indicated for the patient’s condition, doctors are more likely to prescribe more expensive, branded drugs. It has also been reported that pharmaceutical companies engage in “disease mongering” which involves raising awareness of minor conditions such as balding and wrinkles in order to promote the sale of treatments. They claim advertising resources could be used instead for developing new therapies and drugs. Danish physician Peter C. Gøtzsche stated that pharmaceutical companies often advertise “me-too” drugs that are not needed, regardless of their proftability. Marketing is unnecessary because the products should speak for themselves, according to him (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

5.10 Business-to-Business (B2B) Pharmaceutical Marketing Pharmaceutical and medical device industries use various business-to-business (B2B) marketing strategies. There are many products and services available in the healthcare, drug development, biotechnology, and medical device industries. A B2B marketing strategy provides pharmaceutical companies with marketing benefts that are benefcial to the industry and help them reach their

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ideal clients. Healthcare and medical devices need to be made more afordable as well as more competitive as the need for them rises. The ability to stand out in today’s crowded market is key. With B2B, pharmaceutical companies can deploy medical device and healthcare marketing services designed to attract their key audiences online (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ). B2B marketing strategies are developed by the company for each of its clients, resulting in a unique corporate identity. In order to better understand benefciaries and their needs, key account managers (KAMs) obtain information about the company’s products and services. A benefciary will also determine the strengths and weaknesses of the company’s current marketing strategies. A competitive analysis is incorporated by pharmaceutical companies to determine how to best assist benefciaries in connecting with the company. Pharmaceutical companies follow inbound digital marketing strategies that are tailored to their marketing needs. a) b) c) d) e) f) g) h) i) j) k) l)

Development of websites. SEO (search engine optimization). Using emails for online marketing. Marketing via content. Marketing using social media. Analytical and strategic planning. Production of videos. Digital pay-per-click advertising. Marketing of products. Internet marketing for events. Building a brand. Analysis of competitors.

Business models evolve with time, sometimes because of changes in the market and other times due to technological advances, which lead to an emergence of new trends. The B2B platform partners span the spectrum of care, including payers, hospitals, physician ofces, pharmacies, and pharmaceutical companies. A wide range of solutions is available, including ordering drugs, packaging services, wholesale supplies and equipment, pharmacy management software, purchasing management, claims reimbursement, revenue cycle management, and more. A B2B e-commerce platform that provides healthcare delivery, procurement services, and technology to pharmacies. In the current context, the company has created an app-based platform that allows users to see a virtual inventory, track products, and pay digitally. It is becoming increasingly important in today’s digital and application-driven economy for chemists and pharmacists to connect with distributors through a mobile-based B2B listing platform. Pharmaceutical distributors are able to connect with pharmacists on the platform to fnd products they can distribute (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ).

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5.10.1 Benefts of Business-to-Business (B2B) Platform in Pharmaceutical Marketing The following are the advantages of business-to-business (B2B) platforms in pharmaceutical marketing. a) B2B platform also enhances pharmacists’ professional networks and gives them access to pharmaceutical news. Pharmaceutical companies can share new product information, run short-term featured campaigns, obtain feedback, conduct surveys, and more with an application-developed and an application-based platform. b) An online B2B marketplace focusing on the pharmaceutical industry for retailers, distributors, and manufacturers. This includes an integrated payments system and order management. Direct distributor ERP (enterprise resource planning) integration, wallet, distributor confguration, and realtime stock availability are some of the features included. Consequently, the app is available for both Android and iOS devices. Apple Inc. created and developed the iPhone operating system (iOS) exclusively for its hardware. c) In addition to connecting pharmacies with manufacturers and distributors of pharmaceuticals, the B2B platform provides a marketplace. The platform gives detailed information on products in the market, including their prices. d) An online platform for pharmaceutical products is ofered by the B2B platform. Platforms such as this one enable buyers and sellers to correlate and optimize their cost management. Using this platform, community pharmacies nationwide can access a pharmaceutical portfolio online. They can also provide their customers with specifc brands of pharmaceuticals. On topselling pharma products, the company also ofers generic specials, manufacturer-specifc ofers, and seasonal discounts. e) Pharmacists and pharmaceutical companies can securely communicate across the supply chain with the help of B2B platforms in today’s digital economy. In addition to enabling users to procure drugs, the platform also provides real-time information about supply and demand, as well as providing pharmacists with a deeper understanding of the diferent drugs. f ) As a cloud-based electronic procurement (e-procurement) solution provider, the B2B marketplace also provides marketing solutions for pharmacies and distributors. The company ofers its customers a comprehensive e-procurement solution that includes supply chain management, standardized product information, real-time visibility and control, and a discovery platform for pharmacies and suppliers. The company's marketing solution includes digital campaign management, digital profling, and a communication platform for connecting with other pharmacies and suppliers. g) Pharmacy suppliers can purchase pharmaceutical products from pharmacies online through a B2B marketplace that allows pharmacy buyers to compare prices and products. On the website are displayed daily deals and supplier

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specials, analytical tools and price comparison tools for pharmacies to assist in the purchasing process. It is expected that the paradigm shift will only intensify as the adoption of e-commerce increases in the years to come. Studies have shown that companies that ofer online sales have increased sales, developed more efective pricing models, and enhanced their products catalogue additionally. In the future, e-commerce strategies could help to open new markets more quickly and at a lower cost, which would indeed open up new opportunities for omnichannel selling. As the pharma industry has become more mature and embraces virtual channels, it has also been infuenced by digital marketing. The use of VR/AR (virtual reality/augmented reality) presentations for training purposes to create more interactive and engaging experiences for healthcare professionals; the ordering of prescribed medicines by patients by using mobile-based applications that enable quicker access to pharmacies.

5.11 Factory-to-Pharmacy (F2P) Model in Pharmaceutical Supply Chain India has a diverse geographical landscape with diferent climate conditions in diferent states. Indian pharmaceutical companies make it mandatory that all of their stock-keeping units (SKUs) be available at all levels at all times so that drugs can be delivered at the right time and at the right place. There has been a paradigm shift in the way drugs are distributed in India. There was a diferent distribution system in India before 1990, where Indian pharmaceutical companies established their own depots and warehouses. The company-owned depots and warehouses are currently being replaced by clearing and forwarding agents (CFAs) (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f ) (Figure 5.3).

Clearing and Forwarding Agent

API / Bulk Drug

Distributor Excipient and Chemicals

Packaging

FIGURE 5.3

Manufacturing Unit / Factory

Drugs

Chemists/ Pharmacy Patient (End User)

Factory-to-pharmacy (F2P) framework. Source: Conceptualized by the Researchers.

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In the above framework, a manufactured product passes through the company’s central warehouse, which distributes it to a clearing and forwarding agent (C&F) or super stockist. It is either sold to stockists, sub-stockists, or hospitals. A retail pharmacy obtains its products from stockists or sub-stockists who then distribute them to end users. Small manufacturers sometimes supply drugs directly to super stockists. Indian pharmaceutical marketing companies place immense importance on several channel components associated with distribution networks.

5.11.1 Active Pharmaceutical Ingredient (API)/Bulk Drug Retailers and chemists’ counters enjoy higher margins when selling generic drugs in India than when selling branded drugs. Active pharmaceutical ingredients (APIs) are primarily the raw materials that are used to manufacture diferent formulations, resulting in the formation of ready-to-use forms of bulk drugs such as capsules, tablets, syrups, and injections) that are then administered to patients or end users. It is common for bulk drugs to be produced using a combination of more than two chemicals or intermediates. The impact they have directly impacted diagnosis, cure, treatment, mitigation, or prevention of disease.

5.11.2 Clearing and Forwarding Agents (CFAs) Indian pharmaceutical marketing relies heavily on clearing and forwarding agents (CFAs) as they perform a multitude of duties, such as maintaining, storing (stocking), providing drugs to distributors and stockists on request, resolving disputes about expiration and breakage with authorized distributors, and resolving a variety of logistical and tax-related procedures in administrative ofces. The majority of Indian pharmaceutical companies maintain one to three CFAs in each state so that their products are better visible. For taking care of supply chain needs in the country’s context, most Indian pharmaceutical companies build a network with 25–35 CFAs. Indian pharmaceutical companies pay clearing and forwarding agents (CFAs) once or twice each year based on a percentage of the total turnover of their products (Nandy & Pal, 2015a, 2015b, 2016c, 2016d, 2016e, 2016f).

5.11.3 Stockist/Distributor It is the clearing and forwarding agents (CFAs) who obtain stock of the company’s products for authorized distributors or stockists. The following norms are imposed by some reputed Indian pharmaceutical companies for their authorized distributors when acquiring the company’s stocks and they require them to follow them in order to ensure proper inventory management and a smooth fow of capital. Norms for Stockists Order: {(Sales × 2.5) − Closing Stock − Transit}

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When a stockist places an order, the CFAs are contacted directly, but sometimes the stockist authorizes the pharmaceutical companies' medical representatives to place the order. In addition to being authorized to work with one pharmaceutical company, distributors may also be authorized to work with another pharmaceutical company. Credit terms of 21–30 days are ofered to distributors serving the bottom of the pyramid (BoP), while 10–15 days are ofered to distributors in cities. As per the respective Indian pharmaceutical company's norms, distributors can directly pay the company or the CFAs. The distributors supply the pharmacies that fll the prescriptions of doctors or healthcare providers.

5.11.4 Retail Pharmacy/Chemists It is the stockists and sub-stockists who provide the products to chemists’ counters, through whom they reach consumers, patients, and end users. The number of retail pharmacies and chemists in India is dispersed across the country. The largest stakeholder in the Indian pharmaceutical supply chain or distributor network is the chemist’s counter or retail pharmacy, which serves as the backbone of the supply chain ecosystem serving healthcare needs. A large number of rural-based chemists counters in low-income (BoP) areas provide healthcare services by honouring doctors’ prescriptions (Rx) and making branded medicines available from India’s top-notch pharmaceutical companies that are unmatched. There are now reputed retail pharmacies in India, listed below are some of them. i. ii. iii. iv. v. vi.

Frank Ross Pharmacy Apollo Pharmacy Medplus Pharmacy Sasta Sundar Dhanwantary Life Line

As a result of the use of state-of-the-art technology, these pharmacy chains provide patients with friendly services by introducing an additional service feature called “Online Medicine Stores” where patients/end users can upload doctors’ prescriptions (Rx) and receive the medicines delivered to their door step.

References Amuratech. (2022). “What Is Direct to Consumer Advertising? Everything You Need To Know?”, available at: amuratech.com/blog/direct-to-consumer-advertising-dtca (accessed 8th March 2022). Citeman. (2006). “Channel Confict”, available at: https://www.citeman.com/304 -channel-confict.html (accessed 20th March 2022). Nandy, M. & Biswas, D. (2015). “CSR and Sustainable Development: Indian Context”, in Financial Sector Reforms in Developing Economies UGC Sponsored International Conference,

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Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 613–618. Rohini Nandan, Kolkata, West Bengal. ISBN: 978-81-928721-1-7. Nandy, M. & Pal, B. (2015a). “Pharmaceutical Marketing & Product Promotion: A paradigm shift in Indian Pharmaceutical Industry (IPI)”, Adhyan – A Journal of Management Science, Vol. 5 No. 2, pp. 27–40. https://doi.org/10.21567/adhyayan.v5i2 .8817. Nandy, M. & Pal, B. (2015b). “Foreign Direct Investment (FDI) in Indian Pharmaceutical Industries : An Overview”, in Impact of Foreign Direct Investment on Indian Economy UGC Sponsored National Seminar, Department of Commerce, Vivekananda Satavarshiki Mahavidyalaya, Paschim Medinipur, Vivekananda Satavarshiki Mahavidyalaya, West Bengal, pp. 145–158. ISBN: 978-81931-497-1-3. Nandy, M. & Pal, B. (2016c). “Are Research & Development (R&D) Activities Dynamic in Indian Pharmaceutical Industry?: An Empirical Study”, in Dynamic Evolution of Management Paradigm UGC Sponsored International Seminar, Department of Business Administration, Vidyasagar University, Midnapore, West Bengal, pp. 250–269. ISBN: 978-93-5265-325-6. Nandy, M. & Pal, B. (2016d). “Trade Openness, FDI in Pharmaceutical Industry and Economic Growth: A Time Series Analysis”, Presidency Journal of Management Thought & Research, Vol. VI, No. 1, pp. 26–33. Nandy, M. & Pal, B. (2016e). “Role of Digital Banking in India’s Financial Inclusion: An Empirical Study”, in Financial Inclusion and Inclusive Growth UGC Sponsored International Conference, Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 247–263. ISBN: 978-93-5258-522-9. Nandy, M. & Pal, B. (2016f ). “Does Research & Development (R&D) Activities Impact Financial Performance? An Empirical Study Based on Selected Multinational (MNC) Pharmaceutical Companies Operating in India”, Presidency Journal of Management Thought & Research, Vol. VII, No. 2, pp. 39–63. Nandy, M. (2018a). “Impact of Research & Development (R&D) Activities of Listed Indian Pharmaceutical Companies on Their Financial Performance: An Empirical Study”, available at: https://shodhganga.infibnet.ac.in/handle/10603/302397 (accessed 9th December 2022). Nandy, M. (2020b). “Clinical Trials to Combat Covid-19: Case Based Approach of a NSE Listed Indian Pharmaceutical Company”, Adhyan – A Journal of Management Science, Vol. 10, No. 1, pp. 1–7. Nandy, M. (2020c). “Do R&D and Marketing Infuence Return on Equity in the Indian Pharmaceutical Industry? An Empirical Study Based on DuPont Analysis”, Presidency Journal of Management Thought & Research, Vol. 10, No. 2, pp. 1–19. Nandy, M. (2020d). “R&D Trend Analysis through ARIMA Model to Combat Covid19: Empirical Evidence from NSE Listed Pharmaceutical Company”, SUMEDHAJournal of Management, Vol. 9 No. 1, pp 1–19. https://doi.org/10.46454/sumedha/9.1 .2020.1. Nandy, M. (2020e). Pharmaceutical Marketing – An Applied Approach. Pacifc Books International, New Delhi, First Edition 2020, pp. 1–203. ISBN: 978-93-8853655-4, available at: https://www.amazon.in/Pharmaceutical-Marketing-Applied -Approach - Crown /dp/938853655X /ref =sr _1 _ 2 ?cr id =M A Z2HFQM9XVS &keywords=mithun+nandy&qid=1643701964&s=books&sprefx=mithun+nandy %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders

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in Indian Context, Sustainable Development and Informatics. Lincoln Research and Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3 ?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/dp /9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid =1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020-0067.

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Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1. Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Wikimili. (2021). “Direct-to-consumer Advertising”, available at: https://wikimili.com /en/Direct-to-consumer_advertising (accessed 9th March 2022).

6 PHARMACEUTICAL PRODUCT PROMOTION

6.1 Meanings, Objectives, Factors, Methods, and Scope of Pharmaceutical Product Promotion Pharmaceutical marketing entails promoting the sale of drugs or pharmaceuticals through advertising or otherwise through prescriptions from healthcare providers (U.S. Department of Health and Human Services, 2006). Marketers play a key role in infuencing and directing patient-facing activities from drug manufacturers or marketing companies. Which drugs will be produced or manufactured depends on the demand from consumers (mainly from doctors). All over the world, the pharmaceutical market is one of the most highly regulated. Marketers play an important role in infuencing and directing the activities of pharmaceutical manufacturers to clients (Wikipedia, 2022).

6.1.1 Meaning The process of pharmaceutical promotion involves information and persuasion. Pharmaceutical marketing consists of advertising or promoting the sale of pharmaceutical products. Marketing for pharmaceutical products is based on online marketing, where the focus is placed on doctors and healthcare providers (HCPs) rather than direct customers (Oregon State University, 2022).

6.1.2 Objectives The main objective of marketing or promotion is to increase sales. However, pharmaceutical marketing goes beyond generating sales. To change the demand pattern of healthcare or drug products and services, pharmaceutical marketing and product promotion are required. Promotional techniques used in pharmaceutical DOI: 10.4324/9781003313168-6

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marketing are also used to provide proper and important marketing information to the clients, to attract new clients, and to induce existing clients to increase their business so they can compete in the market as well as to ensure the sustainable business practices (Nandy & Biswas, 2015; Oregon State University, 2022).

6.1.3 Factors International pharmaceutical industries (IPI) ofer both the threat of competitive competition and the opportunity for partnering because of the quality of their research and their state-of-the-art manufacturing facilities (Wikipedia, 2022). Here are four main factors that infuence international pharmaceutical marketing: i. ii. iii. iv.

Product (P1). Price (P2). Place/Distribution (P3). Promotion (P4).

(i) Product: In order to build a successful brand, new products, managing existing products, and maintaining the quality of the product are much more important (Bhasin, 2021; Stottler, 2022). (ii) Price: To catch the market, creative price programmes that ofer low prices compared to competitors can be efective. By understanding the psychological efects of pricing, a new strategy can be developed (Bhasin, 2021; Stottler, 2022). (iii) Place/Distribution: Product growth will be maintained with proper distribution and availability of the drug products (Bhasin, 2021; Stottler, 2022). (iv) Promotion: Product movement relies heavily on promotion. Brand building can be achieved through the use of product information and proper marketing strategy (Bhasin, 2021; Stottler, 2022).

6.1.4 Methods of Pharmaceutical Product Promotion There are so many brands in the pharmaceutical market. Promotion and marketing strategies need to be carefully crafted so that doctors and other healthcare professionals fnd them credible and worthwhile (Oregon State University, 2022; U.S. Department of Health and Human Services, 2006; Wikipedia, 2022). (i) Establish good relations with clients – Having good relations with clients is always an asset for a successful business. (ii) Develop efective marketing materials – Develop marketing materials that make a positive impact on clients. (iii) Research and marketing eforts should be balanced – Making efective use of research tools and marketing tools.

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(iv) Market expansion – Getting existing clients to more business, adding new market areas, introducing new products. (v) Growth in market share – To increase overall market share percentage in a focused manner.

6.1.5 Scope for Pharmaceutical Product Promotion In response to the changing business environment, pharmaceutical companies are changing their marketing strategies for drug products. Product marketing and promotional tools in the pharmaceutical industry are undergoing massive changes. To discover and develop new drugs, human knowledge is applied. Pharmaceutical companies are enormous and complex, which poses many marketing challenges, pointing out the importance of pharmaceutical product promotion. Here is a brief discussion of pharmaceutical product promotion. a) Study of consumer needs: Identifying the healthcare needs of the patient fraternity in order to treat various new diseases and disorders such as COVID-19 disease owing to the emergence of the novel coronavirus disease. b) Analysis of client behaviour: Studying prescription (Rx) behaviour and patterns among healthcare providers (HCPs) (U.S. Department of Health and Human Services, 2006). c) Product planning and development: Identifying the best product development strategy by analyzing the product life cycle (PLC). d) Branding: Pharmaceutical branded generics are a crucial component of pharmaceutical marketing. Basically, it ensures that the appropriate information about the drug products is transmitted to the target audience, which are healthcare providers (HCPs) and sometimes patients (Bhasin, 2021; Stottler, 2022; U.S. Department of Health and Human Services, 2006). e) Packaging: The primary aim of any medicinal or drug product is to improve the patient’s quality of life. However, there are also some drugs that save lives. Patients’ safety should always be the top priority when packaging medications. It is imperative for pharmaceutical marketers to always use state-ofthe-art packaging techniques to protect drugs and medicinal products from all types of damage (Bhasin, 2021). f ) Distribution Channels: Using the right distribution channels, a pharmaceutical marketing company can deliver the right drug product at the right time, at the right place, and to the right person (Oregon State University, 2022). g) Pricing Strategies: A pharmaceutical marketing company can sell its drug product to consumers by enforcing proper pricing policies (Bhasin, 2021; Stottler, 2022). h) Management of Sales: Pharmaceutical marketers can manage their sales function efciently with the aid of sales force training and grooming. i) Finance: The role of fnance and fund management in pharmaceutical marketing is crucial. There are numerous areas covered in fnance, including

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Cash Flow, Fund Flow, Trading and Proft and Loss Account, Balance Sheet, Internal Rate of Return (IRR), Proft Volume Ratio (PV Ratio), Return on Investment (ROI), Market per Share (MPS), etc. While setting the fnancial strategy for pharmaceutical companies, fnance professionals should remain up-to-date on all government compliance. j) After-sales services: After-sales service is sometimes required for the medicinal device product. The pharmaceutical marketer should always take into account customer delight during the stage of post-sales.

6.2 Promotion of Pharmaceutical Products in the Modern Era Pharma companies have always pursued both overseas and domestic business lines because of the dynamics of the pharmaceutical market. Several pharmaceutical companies have been forced to restructure due to the expansion. Pharmaceutical marketing provides a lot of emphasis on pharmaceutical product promotion techniques, as they provide high-quality research and low-cost manufacturing (Oregon State University, 2022). Pharma marketing consists of trade-oriented sales promotion. In order to reach the prospective clientele while ofering drug/ medicine products, most well-known pharmaceutical companies apply innovative promotional techniques and strategies (Oregon State University, 2022). This section discusses briefy some of the techniques used in pharmaceutical product promotion (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). a) Advertisements: These include journal advertisements as well as direct mailings and pamphlets. It also includes the distribution of samples and gifts. b) Selling: Personal selling refers to the practice of medical representatives (MRs) visiting medical practitioners to promote a company’s products. c) Relationship with clients: Marketing events, medical training, lobbying, sponsorship, visual identifcation system, media relations, pharmacy consulting programmes (Bhasin, 2021). d) Sales promotion: To increase sales in the short term. e) Samples: Clients are given product samples during their clinical evaluation so that they can become familiar with the product and gain experience with it. f ) Medical gifts and inducements: To provide healthcare providers (HCPs) and other medical professionals with gifts and incentives, and this can be benefcial in many ways during the patient treatment proceedings. g) Sales incentive programmes: Pharmaceutical companies employ incentive schemes to encourage and boost the energy levels of their sales representatives. These schemes help grow sales.

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h) Providing quality information: In addition to scientifc information on the drug products, pharmaceutical companies provide supporting research and clinical trial documents. i) Focusing on priority products: Pharmaceutical companies need to focus on priority products. In the pharmaceutical industry, new diseases are emerging where quality treatment is not available, so research-based pharmaceutical companies put a special focus on the development of new drugs and medicines. j) Ethical pharmaceuticals operations: The promotion of pharmaceuticals and drug products is governed by the laws of each country, and the laws difer from one country to another. To increase their reputations and goodwill in the marketplace, pharmaceutical companies across the globe practice ethical marketing practices.

6.3 Competitive Analysis of Pharmaceutical Product Promotion Strategies Today in the competitive market, marketing strategies play a vital role in the promotion of pharmaceutical products and services. There are many pharmaceutical companies in the industry space competing with each other. Pharmaceutical companies are changing their marketing strategies to cope with new challenges in the business environment. Marketing strategies have changed signifcantly in the international pharmaceutical industry (IPI) (Oregon State University, 2022). The pharmaceutical companies are actively promoting their drug products and taking aggressive moves to gain a substantial market share. It is essential for their marketing eforts to be coordinated, planned, and implemented by managers with relevant marketing skills (Oregon State University, 2022). The most vital part of marketing is monitoring and meeting objectives, goals, and targets, analyzing and anticipating competitor strategies, and exceeding them. An organization utilizing marketing strategies properly will be able to identify the needs and wants of customers and then ofer these customers benefts which will enhance or add value to their lifestyles while at the same time ensuring a high turnover of these customers. High-end technology is at the core of the marketing strategies of leading pharmaceutical companies (Nandy & Pal, 2016f ). Innovative promotional tools and techniques are used by pharmaceutical companies to stay ahead of their competitors and gain an advantage over them. Pharmaceutical companies use the following strategies to diferentiate themselves when promoting their products (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b, Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). a) Price of pharmaceutical products: The price of a pharmaceutical product plays an important role in the development of its marketing strategy. In the

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pharmaceutical marketing world, a product’s price is determined primarily by its properties and promotional costs as well as distribution expenses. b) Packaging of pharmaceutical products: Packaging of drug products ensures the quality of the drug, secures its usability, protects it during transportation and storage, and makes it easier to handle and use. From the perspective of promotional activities, it is a crucial part of pharmaceutical marketing to diferentiate from other players in the market. c) Variety of promotional expenses: Aside from these costs, there are also promotional expenses, advertising expenses, medical representatives (MRs) remuneration, and loyalty bonuses to pharmacies and wholesalers. By satisfying stakeholders in the supply chain ecosystem, pharmaceutical companies compete to gain an advantage over their competitors. d) Marketing mix integration with other functions: Pharmaceutical companies attempt to integrate marketing mix elements such as promotional intensity, scope, and distribution with production capacity, projections, and customer demand during the marketing mix phase.

6.4 Medical Representatives and Managers: Their Roles and Responsibilities 6.4.1 Roles and Responsibilities of Medical Representative (MR) Medical representatives (MRs) are responsible for promoting and selling the products of their companies, whether that is pharmaceutical drugs or medical equipment. Nurses, pharmacists, and healthcare providers can be customers. In terms of increasing product awareness, answering questions and queries, ofering advice, and submitting requests to introduce new products that cater to unmet healthcare needs, the medical representative is in charge of increasing product awareness. Pharmaceutical and medical representatives are the primary points of contact between pharmaceutical and medical companies and healthcare providers (HCPs). A sales representative works with customers to determine what they want, to create a solution, and to ensure that the process runs smoothly (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.4.2 Qualifcations and Training Required for Medical Representatives (MRs) Graduating students with relevant qualifcations in life sciences, pharmacy, medicine, nursing, or dentistry are normally preferred by employers. Normally, new recruits undergo a period of intensive training (up to six months) followed by shadowing experienced sales staf before they begin to work independently. They must also possess a valid driving licence. In addition to a background in sales and marketing, pharmaceutical employers may also seek candidates who can

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learn scientifc and medical details (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.4.3 Key Skills Required for Medical Representatives (MRs) The following skill sets a medical representative (MR) should possess. a) b) c) d) e) f) g) h)

The awareness of commercial issues. Selling skills. Maturity. Self-confdence. Perseverance and patience. Excellent communication and interpersonal skills. Skills in managing an organization. Computer skills and internet knowledge.

6.4.4 Medical Representatives (MRs): Key Responsibilities Below is a list of the responsibilities of medical representatives. a) Arranging appointments and meetings with community and hospital healthcare providers. b) Identifying and developing new business opportunities. c) Dealing with contracts. d) Demonstrating or presenting products to healthcare professionals such as doctors, nurses, and pharmacists. e) Conducting appropriate research. f ) Meeting the business and scientifc requirements of healthcare professionals. g) Keeping accurate records. h) Attending and organizing trade shows, conferences, and meetings. i) Budget management. j) Conducting a performance review. k) Preparing documents and reports. A medical representative (MR) can progress to a senior sales or managerial position after gaining some qualitative experience.

6.4.5 Roles and Responsibilities of Pharmaceutical Sales Managers The primary responsibility of pharmaceutical sales managers is managing medical representatives (MRs) in a given geographical territory. The transition from a representative to a manager brings many important changes in perspective, goals,

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responsibilities, job skills, relationships, and satisfaction.Transitioning from medical representative (MR) responsibility to manager requires the following: a) Attitude towards learning. b) Having realistic expectations. c) Efective communication.

6.4.6 Skill Sets Required of a Pharmaceutical Sales Manager The following skill sets tend to be sought out by pharmaceutical companies in pharmaceutical sales managers. a) Minimum of 3 to 5 years of experience working as a pharmaceutical sales representative. b) A degree in science, pharmacy, or management is preferred. c) A successful track record of sales. d) A thorough understanding of databases, statistics, product lines, and the latest medical issues. e) Excellent communication and negotiation skills. f ) Excellent time management and organizational skills. g) Strong sense of ethics and integrity.

6.4.7 Roles and Responsibilities of Pharmaceutical Sales Manager The responsibilities of pharmaceutical sales managers are as follows. i. Management of the medical representatives (MR) and their daily activities. ii. Encourage the representatives to cover their assigned area/geography properly. iii. Regularly contact each potential customer. iv. Efective communication among the team members. v. Fulflling the business objectives of the organization. vi. Monitoring the appropriate use of the sales budget and marketing tools. vii. Coordinating the marketing team and the head ofce personnel. viii. Conducting Continuing Medical Education (CME), workshops, and conferences. ix. Participating in monthly, quarterly, and annual meetings. x. Participating in refresher training courses to upgrade contemporary knowledge and skills. xi. Identifying clients’ needs and presenting suitable product promotions. xii. To form relationships with targeted doctors and persuade them to prescribe (Rx) pharmaceutical products by utilizing efective selling skills and conducting cost-beneft analyses. xiii. Deliver information about the products and provide samples.

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xiv. Participate in sales meetings, conference calls, training sessions, and symposiums. xv. Ensure a cohesive marketing message by developing and implementing branding strategies with the sales team. xvi. Build positive relationships of trust in order to infuence targeted groups in decision-making. xvii. Identify competitive advantages by monitoring data and market conditions. xviii. Maintain accurate records and documentation for reporting and feedback. xix. Stay current with medical data and clinical reports, and engage in continuous learning and professional development. xx. Promote pharmaceutical products ethically and within company guidelines, in accordance with the company’s sales process and marketing plans. xxi. Retain good relationships with key customers over time.

6.5 Roles, Responsibilities, and Parameters of the Product Manager It is the responsibility of pharmaceutical product managers to guide a product’s success and guide the cross-functional team that is responsible for improving it.The organization is responsible for setting a product’s strategy and roadmap, as well as defning its features and specifcations (Aha, 2022). Additionally, the position may have responsibilities related to marketing, forecasting, and proft and loss (P&L). Pharmaceutical product managers function in many ways like brand managers at consumer packaged goods companies (FMCG). Product managers are responsible for leading the organization and making strategic decisions regarding products in pharmaceutical companies (Aha, 2022). Often, they analyze the market and competitive landscape, crafting a product vision based on customer demands that are diferentiated and deliver unique value (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Among the many responsibilities of this role are strategic and tactical leadership as well as cross-functional leadership between product development, manufacturing, marketing, sales, and support. The product manager works with the product management team (PMT) to defne the why, when, and what of a product (Aha, 2022). From the conception of a product to its launch, they lead cross-functional teams (Figure 6.1). The following are the core responsibilities of a pharmaceutical product manager.

6.5.1 Product Vision and Strategy Product managers set the vision and strategy for a product. Business value needs to be communicated to the product management team (PMT) so they understand the intent behind new products and product releases. By prioritizing what is important to achieving the product’s strategic goals and initiatives, the product manager is responsible for owning the roadmap (Aha, 2022).

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R&D and Innovation

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Patients/ End-users

FIGURE 6.1

Sales & Marketing

Pharmaceutical product management. Source: Author’s own.

6.5.2 Defning the Product Releases The product manager needs to plan what their teams will deliver and when they will implement it. The same holds true regardless of the development methodology used by the product management team (PMT). The product manager is responsible for defning the release process, coordinating all activities involved in bringing a product to market, and ensuring its physical and virtual presence (Aha, 2022). The task involves bridging gaps between diferent departments within the company and aligning all of the teams, such as marketing, sales, and customer service. Managing dependencies across releases is also a responsibility to complete release phases and milestones (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.5.3 Prioritize the Ideas It is hard for pharmaceutical companies to manage and prioritize the ideas they desire or the innovative healthcare solutions they wish to explore. In pharmaceutical product management, new ideas are generated, developed, and nurtured. The product strategy committee decides which ideas should be promoted, namely, those that will help the company achieve its key objectives (Aha, 2022).

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Likewise, the product management team (PMT) ensures that feedback and requests are seamlessly integrated into their product planning and development processes. The product manager informs the customer, partner, and internal team members about the status of the idea (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.5.4 Features A pharmaceutical product manager prioritizes features by evaluating them against strategic objectives. While developing new features and add-ons, pharmaceutical companies should consider the value they deliver to patients as they make difcult trade-ofs. Pharmaceutical product managers should also determine the features’ requirements (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). By working closely with the product management teams (PMT), the product manager ensures that a complete product can be delivered (Aha, 2022). Product development is a critical function of any company. A team made up of driven, passionate, and customer-centric people who work tirelessly to build products that succeed. Product managers can only achieve this by feeling a sense of responsibility for what they do and how they do it by being strong and confdent (Aha, 2022). After all the dots are connected, the product manager can say that they have achieved their dream job.

6.5.5 Parameters of a Product Manager In the pharmaceutical industry, parameters are the requirements for a product manager. A pharmaceutical product manager must have the following qualities: a) b) c) d) e)

Experience as a product manager is preferred. Knowledge of pharmaceuticals and technical background. Experience in the pharmaceutical marketing feld. Excellent communication skills, both written and verbal. A Master of Business Administration (MBA) degree in marketing would be ideal. f ) Excellent teamwork and leadership skills. g) Capable of motivating teams without a formal authority position.

6.5.6 Responsibilities of a Pharmaceutical Product Manager In addition to gathering and prioritizing product and customer requirements, defning the product vision, and ensuring revenue and customer satisfaction goals are met, the product manager manages product planning and execution throughout the product life cycle.

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i. ii. iii. iv. v. vi. vii. viii. ix. x. xi.

xii. xiii. xiv. xv. xvi. xvii. xviii.

xix.

xx. xxi. xxii. xxiii. xxiv.

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To establish the company’s long-term product vision and strategy. Create the product roadmap and strategy. Outstanding ability to work with others. Knowledge of the competition. Developing the positioning and messaging for the product. Determine proper pricing to achieve revenue & proftability targets. Training and briefng the sales force quarterly. Development of marketing concepts/themes for campaigns and promotional activities. Implementing efective marketing plans and activities in conjunction with sales. Conducting market research and visiting customers and non-customers to identify current and future product requirements. Create the company’s go-to-market plan, coordinate the execution of the plan between all departments, and conduct periodic reviews to determine engagement and activities. Work with Medical Afairs to design and implement initiatives designed to raise brand awareness and salience between Key Opinion Leaders (KOLs). Running digital marketing campaigns such as email/teasers/online marketing and using a tablet as a promotional tool. Competitive intelligence and market analysis of innovative healthcare/ drug products being marketed by competitors. Develop internal training agendas for the sales team and medical afairs. Analysis of brand performance, patient data, and budgeting and planning of the global launch strategy and budget for a new product. Developing, implementing, and evaluating business strategies related to segmentation, targeting, and positioning. Developing and monitoring marketing initiatives to launch and promote new products; formulating and implementing appropriate marketing tools and product mixes. Develop overall marketing strategies, marketing communications, and budgeting/fnancial plans to meet sales targets and generate profts. The fnancial plans of pharmaceutical companies act as perfect fnancial inclusion strategies to ensure organizational sustainability. Determining launch readiness/plans for new product launches according to diferent geographies. Conducting pre-launch market research, developing a launch plan, conducting pre-launch activities, and tracking sales. Develop forecasts, pricing strategies, budgets, and fnancial plans and manage the agency with quarterly reviews. Drive long range planning for portfolios and business case approvals from India launch for current and pipeline products. Increasing market share of key products by coordinating marketing and sales activities.

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xxv. Responsible for India’s marketing communications, including implementing marketing messages, developing materials, and conducting training. xxvi. Identifying and engaging national-level Key Opinion Leaders (KOLs) in the current and future business range. As per business requirements, manage relationships with NGOs and other stakeholders, including local-level groups. xxvii. Support the achievement of sales targets and operating profts. xxviii. Develop plans for managing and engaging KOLs and stakeholders. xxix. Addition of new accounts and indications. xxx. Develop and design collaterals, promotional materials, and other content for Healthcare Provider (HCP)/Patient education on therapy, standards of care, proper dosage, and other key brand messages. xxxi. Develop competitive intelligence and conduct research on business analytics.

6.6 Communication of Pharmaceutical Brands: Processes and Barriers 6.6.1 Process of Pharmaceutical Brand Communication Pharmaceutical companies use brand communication to inform, persuade, educate, teach, remind, and enrich stakeholders’ knowledge about the brand, its strengths, values, fundamentals, and oferings. The use of brand communication by pharmaceutical companies afects key stakeholders. Employees, customers, investors, and sponsors constitute the stakeholders, and they are all attached to the brand in the most integrated way. It is the prime responsibility of the management to keep them informed of important matters regarding the brand on a regular basis. By strengthening the relationship with stakeholders on a long-term basis, it acts as the brand’s voice. It is essential to have a meaningful and healthy conversation with stakeholders in pharmaceutical brand management. The company uses it as a promotional tool in addition to providing information about the brand, the company, and the products and services it ofers. A meaningful message about the drug product needs to be communicated and delivered to stakeholders. Media channels such as newspapers and television are combined with contemporary media channels, such as blogs, social media platforms, and content marketing, to inform consumers and stakeholders about new developments regarding a brand (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). A drug brand’s communication strategy needs to be designed and implemented by a public relations (PR) agency to ensure that its message is clear, accurate, and authentic. It is essential that every aspect of a brand’s communication is understood before it leaves the doors of the pharmaceutical company in order to avoid a negative impact on the company’s brand image and reputation.

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The communication must therefore be well planned and expertly executed. The development of a brand management strategy is essential for pharmaceutical companies to achieve their business goals. With this strategy, the company can establish a strong and unique image in the targeted market as well as the pharmaceutical industry at large (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.6.2 Benefts of Good Pharmaceutical Brand management Good pharmaceutical brand management has the following benefts. a) Creates an Impact Customer satisfaction is always enhanced by good brand communication, which makes customers feel more connected to the brand. b) Makes an Authority The company's drugs are superior to those of many other pharmaceutical companies. Nevertheless, if the brand fails to convey these values, it will not establish the brand as an authority. Product design and brand communications have contributed to the establishment of this authority. c) Diferentiation Customers who connect with a brand distinguish themselves from their competitors. The brand has a huge competitive advantage here because, when brands are compared, the loyalty and following that a brand has helped to diferentiate the brand from its competitors. Market oferings and brand communication have helped some brands distinguish themselves from their competitors. d) Enhances loyalty Customer loyalty is one of the most important benefts of positive pharmaceutical brand communication. The customer will become a brand advocate if they have had a positive experience with the brand through advertising or marketing. Word-of-mouth (WoM) marketing will make this customer a brand advocate. Brand communications are vital to ensuring this customer is repeatedly exposed to the brand. e) Establishes the market Brands that communicate with their customers slowly and steadily build a positive market. Drug companies handle a multitude of products and brands

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simultaneously. Increasing brand awareness in the marketplace is a frst strategy these pharmaceutical companies use to make a product acceptable.

6.6.3 Multiple Phases of Pharmaceutical Brand Management Process There are multiple phases in the pharmaceutical brand management process. It has been attempted to examine some important phases of pharmaceutical brand communication in this section.

6.6.3.1 Phase 1: Develop a Brand Strategy There is a thoughtful strategy behind every successful pharmaceutical brand. In order for any pharmaceutical company to be successful in generic brand management, this phase needs to be executed perfectly.

6.6.3.2 Phase 2: Conduct an Internal Review Pharmaceutical companies conduct discovery sessions with their management teams. Companies need to take into account their team’s goals, market strategies, and individual perspectives. If pharmaceutical companies discover that there are many points of view and even fundamental disagreements, they should not be surprised. It is a common occurrence in pharmaceutical brand management. If the company has a business plan, and any other documents that might guide them, now is the time to examine them. Pharmaceutical companies need to consider how they’ve changed since those documents were drafted and if any adjustments need to be made to their successful marketing campaigns. Most pharmaceutical companies tend to stop at this stage. However, that isn’t a good idea. Besides considering the above perspectives, pharmaceutical companies must take into account other aspects before they can formulate an efective strategy.

6.6.3.3 Phase 3: Identifying the Target Audience After identifying all the key audiences, pharmaceutical companies need to take the next step. Companies can approach audiences in a variety of ways, so how can they decide which approach is best for them? The pharmaceutical company should ask the following questions. a) By industry (in which industries does the company serve clients?). b) By service provided (who is purchasing each service ofered by the company?). c) What are their roles (who are the company’s clients, as well as those who purchase the company’s healthcare products and services?).

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It is important for pharmaceutical companies to consider non-client audiences in this particular phase if they are crucial to the success of their business. A potential employee might be one of these people, along with partners, infuencers, and referral sources.

6.6.3.4 Phase 4: Researching Target Audiences Identifcation of the target audience is one of the most important tasks in the brand management process and for that, the pharmaceutical companies conduct in-depth research to know the target audience and try to develop further insight by looking into their needs, challenges, and motivations. Here are some specifc answers the pharmaceutical marketer tries to fnd with respect to the following questions. a) b) c) d) e) f) g) h)

What are the priorities of the patients? How do they perceive the pharmaceutical company? Who do they consider the competitors of the company? How strongly do they consider the reputation of the company? How visible do they believe companies are in the marketplace? What do they see as the company’s strengths? What weaknesses or vulnerabilities do they see in the company? If they are a client, why did they select the company?

Due to the sensitive nature of many of these questions and answers, pharmaceutical marketing companies should make sure that they engage impartial thirdparty market research agencies in order to conduct the interviews or market research. Companies conducting research on their own would not get as much honest and useful information as if they did the research themselves.

6.6.3.5 Phase 5: Identifying Differentiation It is during this phase that pharmaceutical companies fgure out what separates them from similar competitors. Most pharmaceutical companies can identify from two to fve key diferentiators. Below are three criteria that must be met by a pharmaceutical company’s diferentiators: a) The truth and fairness must be maintained. b) Relevant to the target audience of the company. c) It must be verifable and validated.

6.6.3.6 Phase 6: Statement of Brand Positioning Pharmaceutical companies are now drafting positioning statements. Defning a company’s brand position is a compact, carefully crafted statement. In the bestcase scenarios, the company’s mission statement will be both accurate, describing who it is today, as well as aspirational, speaking about what it aspires to become.

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6.6.3.7 Phase 7: Tailoring Message to Different Audiences Taking the next logical step, the pharmaceutical company may want to apply its diferentiators and positioning to its audiences. Messaging architecture is an example of this kind of document. As part of a company’s messaging architecture, it is a good idea to identify target audiences and develop a list of messages they may need to hear during the sales process. A company’s diferentiators can be included in this list, as well as more commonplace messages, the basic things an audience needs to hear to be reassured that it delivers the services and experience they want.

6.6.3.8 Phase 8: Tailoring Complex Brand Situations The evolution of brands in pharmaceutical marketing often produces new divisions, spin-ofs, standalone products, or sister brands that have no obvious connection to the parent brand. If this is the case, then a pharmaceutical company should take the time to clearly defne the hierarchy and relationship between these brands during the branding process. Buyers and clients fnd it easier to understand a company’s business and diverse oferings when the company can eliminate confusion. This is what is known as brand architecture.

6.6.3.9 Phase 9: Brand Identity A pharmaceutical company’s brand becomes tangible during this phase. The pharmaceutical brand identity of the company includes many of the most visible elements of a brand, such as: i. Company name. ii. Company logo. iii. Tagline. iv. Palette of colours. v. Images/illustration. vi. Writing style (voice). vii. Printed business cards. viii. A stationery suite. ix. Collateral for business. Some or all of these elements are likely to be developed (or refreshed, if it’s part of a rebranding campaign) as part of the branding process. An organization’s brand identity gives customers an opportunity to see and feel the company’s positioning as well as its distinctive voice and personality. In this way, the company is able to diferentiate itself from its competitors and create a unique brand identity for its frm.

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6.6.3.10 Phase 10: Brand Style and Voice Guidelines Consistently maintaining the brand identity of a pharmaceutical company can be challenging. Identifying how the drug brand is put together and explaining what is and isn’t allowed are some of the things pharmaceutical frms do to combat these issues. Depending on the guidelines, the drug brand may be applied in every situation, or it may be kept simple, allowing room for variety and exploration. In the same vein, some pharmaceutical companies create a separate set of guidelines that describe their “voice”-the way the words they use refect an attitude or a personality. In order to ensure their written materials are crystal clear as if they were coming from the same person, companies follow brand voice guidelines. It might, for example, be recommended that lucid and simple language is used throughout the content and that technical language is avoided. Additionally, these guidelines could discuss sentence structure and what type of vocabulary to use. Is humour allowed in these guidelines? A voice guideline should explain when and how humour should be used. Even more pharmaceutical companies provide writers with detailed usage guidelines that address subjectivities such as grammar, spelling, punctuation, and more (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.6.3.11 Phase 11: Creative Contents Before the pharmaceutical companies jump into the company’s brand identity, they would do well to prepare a creative brief that outlines the assumptions and preferences of the company. In the case of an organization’s brand intended to express personality, the organization must identify the most appropriate endorser. How will the pharmaceutical company convey the company’s brand through colour, imagery, and typography? After discussing the company’s brand identity internally, a creative brief should be developed. A consensus should be reached. Each piece of the company’s brand identity should be addressed with creative content (alternatively, the company can develop individual content for each). The content of a new name, for example, should include an explanation of the company’s expectations and any parameters the naming team needs to know to avoid making mistakes and getting lost.

6.6.3.12 Phase 12: Brand Tools To promote its new brands, the pharmaceutical company will need these brand tools. With these tools, pharmaceutical companies can increase their brand visibility and expertise by building on their brand strategy. How the pharmaceutical company plans to promote its brand’s visibility will determine exactly which tools are needed.

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6.6.3.13 Phase 13: Brand Launch This phase begins a pharmaceutical brand-building exercise. The success of a company’s branding initiative is directly correlated with how they introduce its new brand. In particular, the brand communication process is crucial for success. In this phase, pharmaceutical companies need to address major topics which are listed below. a) What opportunities does the new brand ofer the patients? Why do the patients need a new brand? b) To demonstrate how much thought went into the process, what is the process like? c) What are the results of the research or clinical trial? d) How does the brand speak to the target audience? e) When new brands are introduced to the world, they have an opportunity to make a favourable frst impression. Additionally, it provides prospective clients with an understanding of the company’s values, how it has changed, and why it matters to them.

6.6.3.14 Phase 14: Building the Brand A new pharmaceutical brand is only the beginning. That brand must still be transformed into market value. Most pharmaceutical companies spend too much time and money on elaborate brand launches rather than building their brand over time. It takes a strategic approach to achieve this. This strategy should have as its primary objective the promotion of pharmaceutical companies' expertise. Public speaking, writing, and networking are generally efective methods for achieving this. Pharmaceutical frms with the best results use a mix of digital and traditional approaches to brand building, based on diferent pharmaceutical brand-building case studies. Here, pharmaceutical companies are required to describe what they have written. Healthcare providers (HCPs) and patient fraternities should be educated on how pharmaceutical companies can overcome key challenges. A pharmaceutical company must demonstrate that it is completely knowledge-based and has the ability to convey the knowledge to its prospective clients well. To accomplish this, sustained efort overtime is required.

6.6.4 Barriers of Pharmaceutical Brand Communication It depends on how they are implemented whether pharma products are branded or rebranded. The best brands have a personality. A company must have characteristics and a reputation in order to build relationships with customers. Therefore, pharmaceutical companies should defne their brand elements. Logos, symbols, and taglines do not defne a brand. Pharmaceutical companies create

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a brand based on the perceptions and beliefs of their customers. These brands represent what a pharmaceutical company stands for. To build their brands, pharmaceutical companies should frst focus on identifying potential obstacles to success (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Brand efectiveness can be hampered by certain market conditions, so it’s important to identify and eliminate those obstacles as early as possible. The pharmaceutical industry faces many obstacles to efective brand communication and some of these obstacles are discussed below.

6.6.4.1 Competition Brand positioning relies on understanding what’s available on the market and what consumers want. Identify the company’s competitors in the marketplace, their strengths and weaknesses, and any areas in which its product is superior to theirs. A pharmaceutical company with this kind of creative savvy will be in a distinct position to devise efective plans and concepts. If a pharmaceutical company does not understand the competition, it might so happen that it will not achieve its objective in the distant future.

6.6.4.2 Positioning In order for a company’s position in the market to be efective, it must be unique, desirable, believable, deliverable, integrated, and consistent. Develop successful marketing strategies based on these criteria in order to establish brand positioning.

6.6.4.3 Targeting/Location Targets must be defned and redefned in pharmaceutical marketing. A company must frst understand its customers before crafting a message that directly speaks to them. The best-qualifed leads can only be sourced from high-quality sources with the necessary resources. Pharmaceutical companies that fail to identify their target audience will be unable to deliver the right message to the right audience in the near future.

6.6.4.4 Timing Is there a demand for the company’s drug product or service at this time? Are there seasonal or time-sensitive considerations? By identifying exactly when the planning and buying are happening, the company will be in a better position to build marketing delivery at a time when people have an interest in the company’s brand. For example: pharmaceutical companies should not launch sunscreens during winter and moisturizers during the summer season to take care of the seasonal trend as well as climate change factors.

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6.6.4.5 Internal Buy-In It is impossible for a pharmaceutical company to thrive by simply plastering its logo everywhere. Marketing, senior leaders, and staf are all responsible for the company’s attitude. Pharmaceutical companies must understand and live their brand values every single day. It is necessary for a company to have internal advocates who can speak for the business. A brand seldom succeeds without this support.

6.6.4.6 Cost It is crucial to invest in the company’s brand to lay the foundations for future marketing campaigns. It would be foolish to build a house without a solid foundation, and it would be foolish to build a marketing plan without solid branding. It is most often the branding step that is missed or, worse still, omitted from the process of strategic planning due to its cost. In order for a pharmaceutical company to succeed, it needs to devote the necessary time and resources to get the right branding in place. By subscribing to industry publications and newsletters, pharmaceutical companies can stay current on market trends, and thereby take control of their brand.

6.6.4.7 Brand Relevance Pharmaceutical brands face three relevant threats: fewer customers purchasing what the brand ofers, new reasons not to purchase, and a loss of energy. An understanding of the market and a willingness to invest and change are the prerequisites for detecting and responding to them.

6.6.4.8 Innovative Approach With rare exceptions, the only way to grow is by creating “must-have” innovations that defne new sub-categories and create barriers that prevent competitors from gaining relevance. To win, a subcategory must have substantial or transformative innovation and a new ability to manage perceptions. Copy and paste doesn’t lead to a sustainable advantage for any pharmaceutical company that fails to innovate.

6.6.4.9 Integrating marketing communications (IMC) Since pharmaceutical companies have a variety of mediums to choose from, including advertising, sponsorships, digital, mobile, social media, and more, IMC is more intangible and difcult than ever before. Due to the complexity, fexibility, and dynamic nature of media options and the fact that product and country refect competition and isolation rather than collaboration and communication, these methods compete rather than reinforce.

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6.6.4.10 Digital Strategy The pharmaceutical marketers must approach this arena with a diferent mindset since it is complex, dynamic, and challenging. After all, the audience controls the outcome. A new level of innovation, creativity, and collaboration with other marketing modes is needed. Pharmaceutical companies need to shift their digital marketing focus from their ofering and brand to the customer’s sweet spot – the activities and opinions that they are passionate about.

6.6.4.11 Brand-Portfolio Strategy That Yields Synergy and Clarity Pharmaceutical companies must have clearly defned roles and visions that support those roles. There should be an identifcation and resource allocation of strategic brands, as well as the creation and management of branded diferentiators and energizers.

6.6.4.12 Leveraging Brand Assets to Enable Growth Brand portfolios for pharmaceuticals should enable growth by enabling new products, extending vertically, and expanding into other product categories. A brand should be applied in new contexts where it can both add value and enhance itself. Each of these challenges or barriers for the pharmaceutical product management team (PMT) should be examined in turn in order to determine which is most critical. Then determine whether or not the company’s brand is in defcit in meeting that challenge. As a result of the answers to those questions, a roadmap should be developed to strengthen both the brand and create a lasting impact for the pharmaceutical company.

6.7 Pharmaceutical Brand Management: An Exploration of Emotional Marketing 6.7.1 Emotional Marketing A term often used in marketing is “emotional marketing.” For instance, “we should make our brand messages more emotional”. How confdent are we that we understand what emotional marketing is? Would it be possible to show how emotional marketing works by measuring sales growth? The changing of brand images to show a smiling person does not constitute emotional marketing. Integrating emotional marketing across the marketing mix is crucial to brand strategy and customer execution. All pharmaceutical brands need to connect emotionally with their customers. An emotional marketing statement describes the way the drug product will be perceived by customers based on customer insight (Ramkali, 2012). Pharmaceutical companies, therefore, will brand themselves more emotionally if their statement is more emotional. The potential of

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treating acute and chronic illnesses that afect a patient’s well-being, ability to function, and even life expectancy ought to motivate pharmaceutical marketers to develop an emotional positioning statement. Marketing campaigns for pharmaceuticals strive for greater emotional impact. Healthcare professionals need information about pharmaceutical brands to be able to communicate with them in an informed manner. In an increasingly competitive market where rational diferentiation is often difcult to demonstrate, pharmaceutical brands need to engage their customers emotionally as well (Ramkali, 2012). Pharmaceutical marketers must engage customers both emotionally and functionally by developing brands communications that are compelling, diferentiating, and relevant (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Pharmaceutical companies make extensive use of “Emotional Marketing” in the context of today’s pharmaceutical brand management to increase the market penetration of their drug brands. An overview of the concept of emotional marketing is presented below.

6.7.1.1 Relevance of Emotional Marketing in Pharmaceutical Brand Management Emotional marketing is not simply updating brand imagery with happy smiling people. In pharmaceutical marketing physicians’ perceptions and prescribing (Rx) behaviour take place at diferent phases of the brand’s “promotional” lifecycle. According to this model, the physician’s perception of a brand is shaped very early and begins when they start to receive information about the brand during the “pre-launch” campaign phase. Expectations will be formed during this phase and will infuence the physician’s decision on whether to prescribe (Rx) the product. The frst personal experience will be very important for future prescribing (Rx). After this “experimental” phase the physician will move into the “familiarity” phase where the brand promise communicated in the pre-launch phase is achieved or not. If the two match, then repeat prescribing (Rx) and brand loyalty is likely and the physicians will trust the brand. Therefore, understanding what trust means for pharmaceutical company’s brand is critical and must start in the pre-launch communications and activities. Consumer marketing can be applied to pharmaceutical communications as healthcare professionals are also consumers. A successful pharmaceutical brand adoption does not require the creation of an emotional marketing campaign. In a marketplace that is becoming increasingly rational about how it determines brand value, it’s just one more piece of the jigsaw of the pharmaceutical landscape. Pharmaceutical marketers are responsible for developing brand communication strategies, from messaging to branding that engages the target audience of pharmaceutical companies. In order to achieve this, it is necessary to determine and deliver the right mix of rational brand drivers to infuence the “mind” and emotional brand drivers to infuence the “heart”. It is imperative that “head & heart” go hand-in-hand, and

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if pharmaceutical companies can strike the right balance between the two, they will drive sustained brand adoption and loyalty.

6.8 Pharmaceutical Brand Management: Beyond the Pill A good healthcare system is more than just providing the right drugs for treatment. A modern man’s life is profoundly infuenced by technology in every possible way. Despite the fact that pharmaceutical companies continue to create life-changing drugs, they have never thought to let patients experience the efects of those drugs. Using a mobile app or gadget to monitor a patient’s progress could change the game. Wearable devices that measure the heart rate may prove useful for patients with cardiac diseases. Today, people are more informed than ever before due to the development of the internet and technological communication. Healthcare providers (HCPs) often state that their patients are well-informed about the disease, its consequences, and its treatment. Patients now have better access to information, which has changed the needs of healthcare providers (HCPs). In setting up their brand-building exercises, pharmaceutical companies consider more than just pills to improve healthcare outcomes (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). This added beneft is also benefcial to healthcare professionals (HCPs) since it allows them to stay engaged with pharmaceutical companies. In addition to providing medicine, pharmaceutical companies are also integrating services into their core business to become a vital part of healthcare. The pharmaceutical industry seeks long-term solutions that result in better health outcomes for a broad population rather than focusing on one treatment. In many countries, health authorities are educating their citizens about healthier lifestyles in an efort to make their populations healthier. In addition, sedentary lifestyles and convenience foods are winning the war for their populations. Diabetes, for example, has become one of the world’s biggest health concerns because of the high cost of treating its side efects (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). In order to reach the needs of their customers beyond drugs, multinational pharmaceutical companies must gradually transform their business model from one that focuses on manufacturing and selling drugs. Experience-based public relations (PR) campaigns are increasingly used by innovative pharmaceutical companies to launch prescription products and engage doctors and consumers. To educate healthcare professionals (HCPs) about a chemical component in one of its upcoming chronic constipation medicines, Synergy Pharmaceuticals developed a game at a trade show. In a dedicated escape room named “Escape the Bathroom”, doctors had to solve component-related puzzles to escape the game. This helped the campaign demonstrate the primary insight behind it: chronic constipation patients feel trapped (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e,

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2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.9 The Future of Pharmaceutical Brand Management: Challenges and Opportunities Due to the increasing recognition that drug brands are among the most valuable intangible assets of pharmaceutical companies, pharmaceutical branding has emerged as a top management priority over the last decade. Our world has undergone dramatic changes socially, economically, and politically over the past decade. The traditional corporate structure has evolved into the virtual corporation, as well as major reengineering of large pharmaceutical companies. It is the development of the internet and its impact on the workplace and home that has been most dramatic. We are faced with a new world order as a result of all these changes, along with a new way of running pharmaceutical businesses and living our own lives.The following changes have taken place from a pharmaceutical business perspective: a) The pace has accelerated. b) Pharma businesses have instant access to their customers, suppliers, and distributors. c) Globalization has enabled the business to be conducted globally. d) Corporations are faced with a wealth of information, which must be interpreted and transformed into useful “intelligence” for them.

6.9.1 Pharmaceutical Brand Management in the 1980s and Early 1990s The following factors were important to pharmaceutical brand managers in the 1980s and early 1990s: a) A realistic and reasonable time frame or cycle for the development of pharmaceutical products. b) The traditional methods and techniques of pharmaceutical brand management (e.g., sales tracking data). c) The traditional pharmaceutical brand equity model. d) The traditional organizational structure of pharmaceutical brand management.

6.9.2 What Is the 21st-century Approach to Pharmaceutical Brand Management? Developing a new product or drug in today’s fast-paced environment has compressed the time frame for “time to market”, tracking brand performance, and

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analyzing brand equity. As our world changes rapidly, we must monitor not only the brand’s performance globally, regionally, and locally but also the rapidly changing competitive and environmental conditions around the world. The pharmaceutical industry has conducted research into the 21st century’s trends in brand management as a result of these factors. The following is a brief overview of pharmaceutical branding (Sis International Market Research, 2021).

6.9.3 Models for Brand Positioning: Multidimensional vs. Two-Dimensional A wide variety of two-dimensional positioning models were used by the leading pharmaceutical brand management frms during the 1980s. The models were sufcient for the 1980s but were no longer relevant after the early 1990s. Developing pharmaceutical brands faster and positioning them better in an increasingly complex global, regional, and local environment is imperative (Sis International Market Research, 2021). Practitioners have responded to this need by developing multidimensional models that enable them to better position pharmaceutical brands by taking into account the following factors: a) The development of techniques allows pharmaceutical companies to map their brands from the point of view of consumers or patients. b) Identify leading, strategic, and supporting brands. c) Establish the brand’s position in a specifc market segment by applying a non-linear strategy to brand management.

6.9.4 Brand Management in the Context of Environmental Information Pharmaceutical brand leaders have learned the importance of tracking environmental information continuously and integrating it into their brand management models and positioning as our social, economic, political, and consumer environments change rapidly (Sis International Market Research, 2021). Pharmaceutical brand management systems and models that track and integrate environmental information include the following: a) b) c) d) e)

Product information on competitors. Lifestyles of consumers. Information about local psychographics. Trends in local culture. The socioeconomic factors.

Here are some examples of sources of environmental information: a) The media and journalism. b) Sales team. c) End users.

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d) Industry and trade associations. e) Unsubstantiated rumours. f ) Demographic data for the local area.

6.9.5 Benefts of Tracking Environmental Information and Integrating the Information into the Pharmaceutical Brand Management Process and Systems Tracking environmental information and integrating it into the pharmaceutical brand management process and systems ofers the following benefts: a) Changes in Psychology: Physiological changes in the consumer can be addressed by the pharmaceutical company as these changes are often driven by emotions and reactions to the local environment. b) Lifestyle Change: Brands need to be compatible with consumers’ changing lifestyles, which are determined by their external environment (healthcare providers and patients). c) Environmental Trends: By incorporating environmental trends into their brand management processes, pharma companies can approach brand management from an “inside-out” perspective. d) Controlling Mechanism: Integrating environmental factors into pharmaceutical brand leaders’ three-dimensional models can help them determine their level of control over brand positioning.

6.9.6 Expansion of Brand Management Processes and Organizations in the Global, Regional, and Local levels In the past decade, the globalization of corporations has resulted in many pharmaceutical brand management companies establishing global, regional, and local operations. Global pharmaceutical brands strategically position corporate imagery in order to create cross-cultural demand according to expert key opinion leaders (KOLs) and practitioners surveyed (Sis International Market Research, 2021). Pharmaceutical brands from local markets usually compete directly with international brands in terms of product attributes. The role and authority of local brand management difer greatly from pharmaceutical company to pharmaceutical company (Sis International Market Research, 2021). The type of product and the culture of the pharmaceutical company can determine how much control brands have over budgets and decisions. The following trends indicate how brands are expanding their scope. a) Planning and strategy are primarily managed at the global and regional levels. b) Implementation is largely controlled at the local and regional levels. c) Instruments and measures for evaluation are standardized at all levels.

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6.9.7 Tracking Brand Performance with Less Reliance on Traditional Syndication Data and Developing Customized Tracking Systems Despite the fact that many pharmaceutical brands management companies subscribe to traditional syndicated data sources (such as customer satisfaction surveys, brand loyalty surveys, brand share statistics, price point surveys, etc. ), they have developed or have improved their tracking systems so that: a) b) c) d) e)

Factors contributing to brand recognition. Return on equity (ROE) from the pharmaceutical brands. Global, regional, and local positioning. Value-based pricing. Line extensions.

A customized brand-tracking system typically integrates quantitative tracking data with qualitative environmental and competitive information to provide a decisionsupport tool for brand management. In order to expand the process of brand management, custom systems can integrate the following types of information: Quantitative Information: a) Market share of brands. b) Price points for brands. c) Revenue generated by the brand. Qualitative Information: a) Information about competitors. b) Information about the environment. c) Information about distributors. In the end, pharmaceutical brand management is equipped with more complete data to develop a brand equity index and brand driver analysis. Information relevant to the pharmaceutical industry should often be shared across other departments and functions, such as fnance, engineering, manufacturing, marketing, legal, and strategic planning. In the 21st century, pharmaceutical brand management has evolved from a “product-centric” to a “consumer-centric” approach. Pharma companies difer considerably in terms of their pharmaceutical brand management organizational structure and management as well as their use of brand management paradigms and models.

6.9.8 Expansion of Brand Management Processes and Organization to the Global, Regional, and Local Levels With the globalization of corporations in the past decade, many pharmaceutical brand management organizations have organized themselves on a

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global, regional, and local basis. Many of the key opinion leaders (KOLs) and practitioners surveyed indicated that global pharmaceutical brands are strategically positioned with corporate imagery that can create demand across cultures. On the other hand, local pharmaceutical brands are generally positioned directly against competitor brands in terms of product attributes. There is wide variation between pharmaceutical companies with regard to the role and authority of local brand management. Depending on the culture of the pharmaceutical companies and the types of products, local brand management can have a signifcant degree of decision-making and control of budgets. Following trends are indicated with regard to the expansion of brand management process. a) Strategy and planning: primarily controlled at the global and regional levels. b) Implementation: primarily controlled at the regional and local levels. c) Evaluation: performed at all levels; most tools and measures are standardized.

6.9.9 Reduced Reliance on Traditional Syndicated Data for Tracking Brand Performance and the Development of Customized Tracking Systems Key opinion leaders (KOLs) and practitioners of pharmaceutical brand management believe that while they still may subscribe to traditional syndicated data sources (e.g., customer satisfaction, brand loyalty, brand market share, and price points, etc.), many of the leading pharmaceutical brand management companies have either improved these systems or developed their own customized pharmaceutical brand management and brand equity tracking systems which enable them to determine the following: a) b) c) d) e)

Brand drivers. Return on investment (ROI) in brand equity. Local, regional and global positioning. Value pricing. Line extensions.

These customized brand-tracking systems often integrate quantitative tracking data with qualitative environmental and competitive information to produce an efective decision-support tool for brand management. The following are some of the types of information which are integrated into these customized systems for the expansion of brand management process: Quantitative Information: a) Brand market share. b) Brand price points. c) Brand revenue.

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Qualitative Information: a) Competitive information. b) Environmental information. c) Distributor information. The net outcome is that pharmaceutical brand management can develop a brand equity index and brand driver analysis with complete information. The relevant information should often be shared across the pharmaceutical organization to other functional areas as well, such as fnance, product development and engineering, manufacturing, marketing, legal and strategic planning. Pharmaceutical brand management has evolved from “product-centric” to “consumer-centric” in the 21st century. There are considerable diferences between pharmaceutical companies in terms of their pharmaceutical brand management organizational structure and management and their use of brand management paradigms and models.

6.9.10 Future Challenges and Opportunities of Pharmaceutical Brand Management One important reason why the pharmaceutical industry’s branding may not change is that the functions ofered by brands are important (both to healthcare providers like HCPs and to their patients) in the long run. In an increasingly complex world, well-managed pharmaceutical brands can simplify, communicate, reassure, and provide meaning to consumers. This has been the role of pharmaceutical brands for centuries. In order to reduce the risk of their lives being ruined, consumers should work with well-respected pharmaceutical companies. Pharma brands can make the lives of consumers a little bit easier, or sometimes a lot easier, by improving quality of life and life expectancy. So long as pharmaceutical brands play such an integral role in consumers’ lives, it is hard to imagine their potential importance diminishing or becoming distorted. Digital technology, media channels, and online consumption patterns are infuencing the art and science of branding. This discussion will focus on the efects of digitalization on pharmaceutical branding practices and brand management. Digital consumer journeys, big data, and online brands are the three challenges to branding in the digital age. During this discussion, the key insight has been that contemporary challenges do not decrease the importance of pharmaceutical brands but in many ways shift their practice and provide new opportunities for pharmaceutical brand managers. As a result, deep consumer insights, a good understanding of digital consumer journeys, and well-positioned pharmaceutical brands are essential. Essentially, these three challenges revolve around the problem of balance, as outlined below.

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a) A balance between using technology and data efectively and understanding the needs of consumers (healthcare providers and patients). b) Long-term pharmaceutical brand strategy and short-term pharmaceutical optimization should be balanced. c) A balance between short-term sales conversions and long-term consumer relationships with the brand. New digital opportunities for pharmaceutical brand managers are certain. New media channels should be explored, and they should experiment with new branding activities to fgure out which ones work best. Marketing remains fundamentally about branding and managing brands. Digital technology will continue to be relevant to pharmaceutical branding concepts such as diferentiation, positioning, and identifcation. They may even become more important (Keller and Lehmann 2006; Nandy & Pal, 2016f ). In order to reach this potential, pharmaceutical brands must be managed the same way they have always been. Although macroeconomic and microeconomic factors have always afected the marketing environment, the pace of change has greatly increased in the last decade. Increasingly informed, empowered, and multicultural consumers are driving this evolution.As a result of the entry of multinational (MNC) pharmaceutical companies, private labels, and megabrands from related categories, competition has increased in virtually every market. Marketing is learning about consumer needs and wants and managing brands in a rapidly changing technological world, in which consumers live and shop for pharmaceutical brands.Additionally, environmental, community, and social concerns are present throughout the world. The rule of branding is that the consumer owns the brand. It has been demonstrated time and time again, in the lab as well as in the real world, which consumer perceptions and beliefs make or break a brand. In this way, successful pharmaceutical brands build mental structures and knowledge in the minds of consumers that increase their likelihood of favouring them. From a managerial perspective, every branding decision should be guided by consumer feedback. From an internal perspective, a pharmaceutical brand manager is closely involved with new drug products (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

6.9.11 Parameters to Attain a Sustainable Competitive Advantage for Pharmaceutical Brand management The following parameters should be targeted by pharmaceutical marketers to ensure a sustainable competitive advantage for pharmaceutical brands in the future. a) Take the consumer into account when developing a brand strategy. b) Recognize what the consumer knows and doesn’t know about pharmaceutical brands and what they want and don’t want from healthcare brands.

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c) Engage in “participation marketing” when building a pharmaceutical brand. d) Include the “Go beyond the Pill” concept to go beyond product performance and rational benefts. e) Formulate drug products and services that are rationally and emotionally benefcial. f ) Incorporate all the elements of the marketing mix into the marketing programme. g) Create integrated communication and channel strategies that balance their strengths and weaknesses. h) Identify where the company wants its brands to go? i) Develop a strategy to maximize long-term product growth, market share, and proftability across product oferings, customer segments, and geographic markets. j) Manage pharmaceutical brands with corporate social responsibility (CSR). k) Consider the efects of pharmaceutical branding from a broader perspective. Pharmaceutical companies should know what is working and why? l) Understand the importance of branding and justify brand investments. In some business situation foreign direct investment (FDI) also plays a crucial role in pharmaceutical brand-building exercise. The rules of pharmaceutical branding have changed drastically as a result. Drug companies are rethinking and sometimes fundamentally altering their marketing and branding strategies. The basic principles of the pharmaceutical brand building helped pharmaceutical brand managers face future challenges in brand management.

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Nandy, M. & Pal, B. (2015b). “Foreign Direct Investment (FDI) in Indian Pharmaceutical Industries : An Overview”, in Impact of Foreign Direct Investment on Indian Economy UGC Sponsored National Seminar, Department of Commerce, Vivekananda Satavarshiki Mahavidyalaya, Paschim Medinipur, Vivekananda Satavarshiki Mahavidyalaya, West Bengal, pp. 145–158. ISBN: 978-81931-497-1-3. Nandy, M. & Pal, B. (2016c). “Are Research & Development (R&D) Activities Dynamic in Indian Pharmaceutical Industry?: An Empirical Study”, in Dynamic Evolution of Management Paradigm UGC Sponsored International Seminar, Department of Business Administration, Vidyasagar University, Midnapore, West Bengal, pp. 250–269. ISBN: 978-93-5265-325-6. Nandy, M. & Pal, B. (2016d). “Trade Openness, FDI in Pharmaceutical Industry and Economic Growth: A Time Series Analysis”, Presidency Journal of Management Thought & Research, Vol. VI, No. 1, pp. 26–33. Nandy, M. & Pal, B. (2016e). “Role of Digital Banking in India’s Financial Inclusion: An Empirical Study”, in Financial Inclusion and Inclusive Growth UGC Sponsored International Conference, Department of Commerce with Farm Management, Vidyasagar University, Midnapore, West Bengal, pp. 247–263. ISBN: 978-93-5258-522-9. Nandy, M. & Pal, B. (2016f ). “Does Research & Development (R&D) Activities Impact Financial Performance? An Empirical Study Based on Selected Multinational (MNC) Pharmaceutical Companies Operating in India”, Presidency Journal of Management Thought & Research, Vol. VII, No. 2, pp. 39–63. Nandy, M. (2018a). “Impact of Research & Development (R&D) Activities of Listed Indian Pharmaceutical Companies on Their Financial Performance: An Empirical Study”, available at: https://shodhganga.infibnet.ac.in/handle/10603/302397 (accessed 9th December 2022). Nandy, M. (2020b). “Clinical Trials to Combat Covid-19: Case Based Approach of a NSE Listed Indian Pharmaceutical Company”, Adhyan – A Journal of Management Science, Vol. 10, No. 1, pp. 1–7. Nandy, M. (2020c). “Do R&D and Marketing Infuence Return on Equity in the Indian Pharmaceutical Industry? An Empirical Study Based on DuPont Analysis”, Presidency Journal of Management Thought & Research, Vol. 10, No. 2, pp. 1–19. Nandy, M. (2020d). “R&D Trend Analysis through ARIMA Model to Combat Covid-19: Empirical Evidence from NSE Listed Pharmaceutical Company”, SUMEDHA-Journal of Management,Vol. 9 No. 1, pp 1–19. https://doi.org/10.46454/sumedha/9.1.2020.1. Nandy, M. (2020e). Pharmaceutical Marketing – An Applied Approach. Pacifc Books International, New Delhi, First Edition 2020, pp. 1–203. ISBN: 978-93-8853655-4, available at: https://www.amazon.in/Pharmaceutical-Marketing-Applied -Approach - Crown /dp/938853655X /ref =sr _1 _ 2 ?cr id =M A Z2HFQM9XVS &keywords=mithun+nandy&qid=1643701964&s=books&sprefx=mithun+nandy %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders in Indian Context, Sustainable Development and Informatics. Lincoln Research and Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3

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?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/dp /9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid =1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020-0067. Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022,

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Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-981-16-6921-7, https://doi .org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1. Oregon State University. (2022). “Chapter 6: Marketing Functions”, available at: https:// open.oregonstate.education/strategicmarketing/chapter/chapter-6-marketingfunctions/ (accessed 25th March 2022). Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Ramkali, S. (2012). “Developing Emotional Pharmaceutical Brand Communications – Does It Work, Why Does It Work and How Do We Do It?”, available at: https:// pharmaphorum.com/views-and-analysis/developing_emotional_pharmaceutical_ brand_communications_-_does_it_work_why_does_it_work_and_how_do_we_do _it/ (accessed 22nd March 2022). Sis International Market Research. (2021). “Brand Management Research”, available at: https://www.sisinternational.com/brand-management-in-the-21st-century-trends -and-issues/ (accessed 27th March 2022). Stottler, T. (2022). “Breaking Down Brand Barriers”, available at: https://www .danacommunications.com /red-hot-topic-12 -breaking -down-brand-barriers/ (accessed 24th March 2022). U.S. Department of Health and Human Services. (2006). “Costs and Benefts of Health Information Technology”, available at: https://aspe.hhs.gov/reports/costs-benefts -health-information-technology-1 (accessed 25th March 2022). Wikipedia. (2022). “Pharmaceutical Marketing”, available at: https://en.wikipedia.org/ wiki/Pharmaceutical_marketing (accessed 18th March 2022).

7 MARKETING RESEARCH INTERFACE IN PHARMACEUTICAL PRODUCT PROMOTION

7.1 Objectives of Marketing Research Interface in Pharmaceutical Product Promotion Pharmaceutical brand management has evolved rapidly over the last two decades. A dramatic shift has also occurred in the way pharmaceutical brands are consumed and managed in the last decade, with many noting a dramatic change in both managing and marketing pharmaceutical brands. In spite of these dramatic changes in pharmaceutical business practices, the marketing research interface has become increasingly important to ensure sustainable development (Nandy & Biswas, 2015) for attaining signifcant fnancial performance which enables multinational pharmaceutical companies to incorporate all contemporary fnancial parameters into fnancial inclusion strategies. In terms of facilitating foreign direct investment (FDI) in diferent countries, market research has become an integral part of multinational pharmaceutical companies. By examining promotional activities for the marketing of drug products, as well as the impact of promotional schemes on marketing, the marketing research interface seeks to identify the status of promotion by focusing on major healthcare product categories. Pharmaceutical marketers also place a lot of emphasis on the use of applied promotional tools, such as doctors detailing, which is the most efective way to promote drug products (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). A signifcant impact is also generated by the use of drug product samples for efective promotion. Additionally, pharmaceuticals’ marketing is positively infuenced by their participation in health-related activities like continuing medical education (CME) DOI: 10.4324/9781003313168-7

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programmes and health camps, which have had multiple promotional efects. The use of CME programmes and health camps has been found to be more efective than pharmaceutical marketing, especially when it comes to speciality products like: a) b) c) d)

Anti-diabetic drugs. Anti-cancer drugs. Anti-psychiatric drugs. Cardiovascular drugs.

7.2 Different Areas of Pharmaceutical Market Research Researchers, developers, manufacturers, and distributors in the pharmaceutical industry work to discover new drugs to treat human diseases and disorders and to ensure a speedy recovery through quality healthcare. A drug takes a long time to develop and deliver, so pharmaceutical companies need to ensure that they’re ofering a worthwhile product and have the tools and information they need to succeed. Further, pharmaceutical companies face several obstacles and challenges associated with losing a large portion of fnancial resources and a signifcant amount of time to develop a drug no one wants or needs (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). In order to prove a successful marketing strategy for their drug or healthcare product that benefts patients worldwide, a highly regarded pharmaceutical company conducts comprehensive market research. The following is a brief discussion of the diferent methods pharmaceutical companies use to conduct market research (Figure 7.1).

7.2.1 Assessment of Patient Needs In addition to serving patients, large pharmaceutical companies serve a range of other types of consumers, from clinicians who prescribe (Rx) drugs and hospitals that purchase and administer them to distributors and pharmacies that stock and deliver the drugs (Nandy & Pal, 2016f ). To identify the areas and people with the most proftable commercial propositions, pharmaceutical companies need to learn as much as possible about the diferent types of customers in their ecosystem. Examples of research measures include: a) Conducting secondary research. b) Participating in formal market analysis surveys. c) Conduct primary research (for example, conducting ethnographic studies and surveys of physicians, hospitals, and patients).

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R&D and New Product Development

Segmentation according to need

Pharmaceutical Marketing Promotional Tools Analysis

Update the Shareholders

FIGURE 7.1

Assessment of patient needs

Areas of Pharmaceutical Market Research

Regulatory concerns and compliances

Market Analysis

Analysis of competitors

Diferent areas of pharmaceutical market research. Source: Author’s own.

7.2.2 Market Analysis In order to efectively market a drug, it is crucial to fnd the right environment (both physically and virtually). A pharmaceutical company has to consider several factors in order to be successful with its drug product, including: a) b) c) d) e)

Patterns of disease. Turmoil in politics. Stability of the economy. Market size and segmentation. The operating environment.

Pharmaceutical market research can provide insights into any obstacles or opportunities that may discourage or encourage favourable outcomes in the near future.

7.2.3 Analysis of Competitors A new drug entering the pharmaceutical market is only one type of threat. Generic products can also have a negative impact on a company’s bottom line. As a result,

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pharmaceutical companies need to keep a close eye on what their competitors are developing and improving. They can use SWOT (strengths, weaknesses, opportunities, and threats) analyses and sales force assessments to diagnose and treat diferent difculties and defciencies (Nandy & Pal, 2015a, 2015b; Pal & Nandy, 2015a; Nandy & Biswas, 2015; Nandy & Pal, 2016c, 2016d, 2016e, 2016f; Nandy, 2018a; Pal & Nandy, 2019b; Nandy, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Focus groups and interviews with key opinion leaders are efective means of identifying untapped technologies and resources. The use of comparative analysis protects pharmaceutical companies from having to reinvent the wheel over and over again. By observing and exploiting other people’s successes, they can ensure a sustainable and competitive advantage.

7.2.4 Regulatory Concerns and Compliance The pharmaceutical industry is highly regulated. As part of protecting the privacy of patients and data, it is also necessary to follow FDA (United States Food and Drug Administration) and patent regulations. Pharmaceutical companies may conduct pharmaceutical market research to keep track of changes to patent laws and FDA regulations, and to get feedback from consumers so that they can modify or protect their practices as necessary to attain global competitiveness by attaining the prescribed norms and compliances (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

7.2.5 Update the Shareholders Pharmaceutical market research can be used to identify trends and predict market growth in the pharmaceutical industry. It can be used by pharmaceutical companies to assess how well they are doing with their consumer interactions, marketing eforts, and distribution channels. It provides raw data that can be used to benchmark accurately and identify unmet needs.These facts enable shareholders to shape the future of their businesses by directing and focusing their decisions (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

7.2.6 Pharmaceutical Marketing Promotional Tools Analysis To promote pharmaceutical products, pharmaceutical companies place a great deal of attention on the marketing tools they use. In the following, pharmaceutical companies discuss the various promotional tools they use for their drug products. a) Distribution of samples of drug products. b) Retail or distributor incentives (bonus).

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c) d) e) f)

Cash Discounts (for stockists and pharmacies). Gift for pharmacists, doctors, and stockists. Sponsoring schemes for physicians. Continuing Medical Education (CME), Health Camps.

The right combination of drug product promotion tools can ensure that pharmaceutical marketing is efective in promoting drug products to the right patient when the right drug product is delivered.

7.2.7 Segmentation According to Need To gain a competitive advantage, you need to use innovative techniques, the best market research tools, and an analysis of customer behaviour within the right context. In terms of employing innovative methods for gaining deeper insights and inferences, the pharmaceutical industry lags behind other industries. Pharmaceutical companies lag behind fast-moving consumer goods (FMCG) companies when it comes to implementing needs-based segmentation. Many pharmaceutical companies still focus their marketing and sales eforts on behavioural segments. In lieu of traditional qualitative research methods like focus groups, FMCG companies are increasingly turning to ethnographic research for greater insight into contemporary needs. Similarly, pharmaceutical companies have discovered that these modern approaches are benefcial for patients and physicians in recent years, but this is not widespread or systematic. In conclusion, mandating insights into some key decisions can be an efective way to create demand within an organization and afect change. Developing new brands often begins with insights from FMCG companies (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

7.2.8 Research and Development (R&D) and New Product Development (NPD) Because of low productivity, high R&D costs, tight regulations, a low probability of technical success, uncertain markets, and a limited number of qualifed employees, the pharmaceutical industry faces unprecedented challenges in bringing new products to market. Most pharmaceutical companies have not been able to match their expenses with their production, and they hardly ever achieve revenues that match or exceed average R&D costs. Pharmaceutical companies were under pressure to deliver successful products as a result of this uncertainty in new product development (NPD) (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). To ensure sustainable development, new product development (NPD) success factors must be addressed by the pharmaceutical industry). In order to

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achieve successful new products in the pharmaceutical industry, it is necessary to look more closely at the factors that make success. It is NPD that is the most important factor in determining sustained company performance, regardless of the innovation level, whether radical innovation by introducing new brand products or incremental innovation by improving existing products. In addition to macro-level (new-to-market) and micro-level (new-to-frm) new products, NPD is responsible for any changes to the product portfolio. Pharmaceutical companies have identifed several critical factors to improve NPD by identifying the failure rate and risks associated with new product development (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). It is possible for NPD success factors to difer based on context specifcations; in other words, allocating resources to the same success factors may yield diferent outcomes. Hence, pharmaceutical companies can make new product development (NPD) more successful by focusing on the most relevant success factors. By identifying the factors that contribute to success in each context, new product development (NPD) can be aided in growing and achieving fnancial goals for pharmaceutical companies (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

7.3 Justifcation for the Market Research for Physicians’ Prescription (Rx) Behaviour Pharmaceutical companies play a huge role in patient well-being. As a result, they play a very signifcant and responsible role in society. This process relies on both healthcare professionals (HCPs) and pharmacists. Manufacturing, healthcare providers, and chemists all can be part of the supply chain ecosystem. The pharmaceutical industry promotes physicians to prescribe (Rx) pharmaceutical drugs to their patients. The drugs are then stocked in pharmacies and disbursed based on prescriptions from healthcare providers (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Pharmaceutical companies are motivated by proft motives to market their products. In addition, physician prescription behaviour is afected by the purchase of medicines from chemists’ outlets. A pharmaceutical company infuences the price of drugs and the availability of healthcare by promoting drugs. The study of drug promotion tools used in the pharmaceutical industry is very important in order to understand how they infuence prescriptions (Rxs) and the availability of drugs to consumers proved to be crucial in providing healthcare to the needy (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

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Physicians and healthcare providers (HCPs) receive information, education, and updates from pharmaceutical promotion tools regarding prescription drugs. In the pharmaceutical industry, a unique feature is that most promotional materials are sent to physicians who prescribe (Rx) and do not prescribe (Rx Not) the drug products. An attempt has been made to explain the prescription decisions of healthcare providers with the following framework (Figure 7.2). Physicians are the chief determinant of drug product choices among the consumer fraternity, which is the patient body. In contrast to non-purchasers, consumers have complete control over their decisions. Promotions from pharmaceutical companies afect doctors’ prescription behaviour. Many pharmaceutical companies invest heavily in eforts to attract physicians. In order to gain competitive advantages in a global environment, the pharmaceutical industry has recently increased its marketing budgets for prescription (Rx) drugs to ensure quality and promotional efectiveness (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Pharmaceutical marketers need to understand how physicians perceive the promotional tools used by diferent pharmaceutical companies (Rx behaviours). Medical professionals’ purchasing and prescribing behaviours can be greatly infuenced by climate change factors, such as the infuence of climate on prescription drug prescribing. In the summer, sunscreen should be applied during hot, humid days, and during the winter, moisturizer should be applied. Pharmaceutical marketers might fnd it useful to determine the extent to which their own promotional materials infuence prescribing decisions (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

Promotional Tools

Drug Product Quality & Efficacy

FIGURE 7.2

Yes Prescription (Rx) Behaviour of the Health Care Providers (HCPs) No

Prescription decision of the healthcare providers framework (PDHCPF). Source: Author’s own.

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&keywords=mithun+nandy&qid=1643701964&s=books&sprefx=mithun+nandy %2Cstripbooks%2C303&sr=1-2. Nandy, M. (2020f ). Connect between Cosmetics and Climate Change: A Study with Reference to High Sun Protection Factor (H-SPF) Based Sunscreen for Treating Dermatological Disorders in Indian Context, Sustainable Development and Informatics. Lincoln Research and Publications Limited, Australia in Collaboration with Lincoln University College, Malaysia, pp. 135–158. ISBN: 978-0-6488798-1-7. Nandy, M. (2020g). Essentials of Marketing Management. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–238. ISBN: 978-81-949754-5-8 (Paperback) ISBN: 978-81-949754-0-3 (Hardback), available at: https://www.amazon.in/ Essentials-Marketing-Management-Mithun-Nandy/dp/819497545X/ref=sr_1_3 ?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid=1643701964&s=books &sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-3. Nandy, M. (2020h). Innovation and Financial Performance in Indian Pharmaceutical Industry, Emerging Practices, R&D and Sustainable Development. Abhijeet Publications, New Delhi, First Edition 2020, pp. 1–307. ISBN: 978-93-88865-34-0, available at: https://www .fipkart.com/innovation-fnancial-performance-indian-pharmaceutical-industry/p/ itm8302db7ceaadd?pid=97893888. Nandy, M. (2020i). Marketing Management MCQs and Answers. Crescent Publishing Corporation, New Delhi, First Edition 2020, pp. 1–202. ISBN: 978-93-87537-73-6, available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/dp /9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy&qid =1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1-4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian

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Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020-0067. Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1. Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040.

8 TECHNOLOGICAL ASPECTS IN INTERNATIONAL PHARMACEUTICAL MARKETING

8.1 Impact of Modern Technology on Pharmaceutical Product Promotion Technology and digital marketing are gradually replacing traditional marketing and promotional strategies in the international pharmaceutical industry. Multinational pharmaceutical companies (MNCs) have already adopted new technologies as promotional tools. The MNCs use a variety of digital tools to make patients more aware of symptoms and treatment options for various diseases. For the well-regarded pharmaceutical companies, scientifc detailing has taken the place of product-specifc details. The pharmaceutical and healthcare industries are experiencing a change in behaviour and processes. By empowering patient fraternities to take a more active role in their own healthcare and making providers’ processes more efcient, the digital revolution is empowering patients to take greater control of their own healthcare. In the following, we examine how pharmaceutical marketing practices have shifted from traditional methods to digital ones (Pethe, 2021; Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.1.1 E-Detailing (Electronic Detailing) Through interactive multimedia presentations, pharmaceutical companies communicate their properties and advantages to consumers using e-detailing. The presentation should lead to doctors changing their opinions and decisions on prescriptions of specifc medications. This can be accomplished through interactive promotional activities (presentation of marketing and substantive content) and the use of analytic data (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, DOI: 10.4324/9781003313168-8

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2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). The form of an e-detail presentation could be: a) Creating a multimedia presentation. b) Presenting a video. c) A static presentation that includes interactive elements. As healthcare providers (HCPs) gain increasing interest in accessing medical information online, this tool is becoming more popular.

8.1.2 A New Role for Medical Representatives (MRs) Due to the changing role of medical representatives (MRs) and the existence of legal provisions designed to limit direct contact between pharmaceutical companies’ representatives and healthcare professionals, e-marketing techniques have become increasingly popular for both marketing and selling prescription drugs (Pethe, 2021).

8.1.3 Electronic Marketing (E-Marketing) Opportunities The use of doctor knowledge and networking portals is becoming an easy and cost-efective method for marketing drug products and simplifying product promotion techniques. This concept may beneft both healthcare providers (HCPs) and pharmaceutical companies if it is properly implemented (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.1.4 Benefts for Pharmaceutical Companies By serving healthcare providers (HCPs) centrally, electronic promotion aids can reduce overhead costs. Establishes parallel channels of communication between the physician and the company. The vacant territory has minimal efects since marketing concepts and promotional inputs are still present in the digital nervous system if a medical representative leaves the territory. Business intelligence can assist in the work of new medical representatives (MRs). Pharma companies constantly adapt to digitalization and develop digital tools and techniques based on extensive connectivity, data analysis; AI (Artifcial Intelligence) and algorithms are forms of artifcial intelligence. Internet marketing communications have become increasingly important in pharmaceutical marketing due to the following factors: a) Alternative communication methods. b) Regulation of pharmaceutical advertising becoming increasingly restrictive.

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c) Increasing the variety of promotional activities online. d) Greater credibility of online advertising (compared to television, for example). e) Marketing agencies are becoming more specialized. f ) A concept called digital marketing has emerged in recent years to describe essentially internet-based communications. These tools are usually utilized in digital pharma marketing. g) Websites (including thematic portals, medical portals, and product cards). h) Medical registers (databases). i) Using e-mail (allowing viral marketing techniques to be applied). j) E-learning (also known as Continuing Medical Education or e-CME). k) Online Public Relations (PR) (press coverage on the internet, word of mouth marketing). l) Electronic communities. m) Advergaming (advertising as a game) is an ingenious method for minimizing advertisement fatigue. Pharmaceutical companies can promote their drug products through the integration of key elements into a game (Nandy, M., 2020c). It increases brand awareness and makes users talk about the game and ultimately about the drug products advertised. n) Videoconferencing. o) Search Engine Marketing (SEM). p) Search Engine Optimization (SEO). q) E-detailing (Electronic Detailing). r) Closed Loop Marketing (CLM): Pharmaceutical marketing companies use these technologies primarily for communication between pharmaceutical companies and physicians or pharmacists (e.g. videoconferencing, e-detailing, or CLM) but they can also be used for interacting with patients (e.g. websites, e-communities, advergaming, and online feedback). Through free communication with the end user, namely the patient, these technologies must create relationships with the medical community and pharmaceutical community in order to succeed. s) Designing innovative healthcare solutions to deal with climate change.

8.2 Role of Digital Technologies in Reshaping Global Pharmaceutical Marketing The pharmaceutical industry is slowly but surely embracing technology. Throughout the past two decades, the pharmaceutical industry has grown rapidly. As a result of COVID-19, companies such as Glaxo and Pfzer have seen their market valuations rise exponentially. Increasing consumer spending on healthcare is driving the healthcare industry to new heights. Pharmaceutical companies are enhancing customer engagement with personalized, innovative oferings. Modern technologies such as Artifcial Intelligence/Machine Learning, Data Analytics, and the Internet of Things (IoT) are transforming

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the pharmaceutical industry. The following section discusses how digital technologies are changing the pharmaceutical industry and creating new and improved healthcare solutions to attain the global competitiveness in growth markets (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.2.1 Artifcial Intelligence (AI) and Machine Learning (ML) The future pharmaceutical industry will undoubtedly be shaped by machine learning and artifcial intelligence. The healthcare system can already be analyzed for errors and repetitive tasks like data entry and data management can be automated with artifcial intelligence. It is data that will drive economic growth in the future. By using artifcial intelligence, mountains of IoT and RFID data can be analyzed and gathered into meaningful information. Technology for radio frequency identifcation (RFID) consists of RFID tags and readers. RFID readers use radio waves to send and receive signals from tags. AI can be used to predict patient compliance as well as to recommend the most appropriate course of action. The use of AI and ML in pharmaceutical research and development is now possible in order to simulate the organic behaviour of the human body for evaluating the efcacy of new drugs. Using billions of simulations of the human body based on historical data, AI can analyze the efects of a drug within a few seconds instead of months of testing on thousands of people. Through machine learning, it is possible to reduce the amount of time spent on current processes, which leads to substantial time and cost savings (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). .

8.2.2 Using Mobile Applications to Digitize Medicine Worldwide, pharmaceutical companies realize that making drugs alone is not enough. People also need to maintain a healthy lifestyle. There is a name for “Around the Pill” because the campaign has had so much success. The treatment aims to address all aspects of the treatment. Hardware and software devices are components of the treatment. US citizens can fnd a nearby medical facility, purchase drugs through e-commerce apps, consult with doctors online, and download ftness apps for chronic illnesses. Furthermore, mobile apps enable patients to connect with insurance companies, thus reducing the need for paper-based documentation. Medical records and prescriptions can be accessed directly by insurance companies, which allow them to determine whether a health condition is covered. With new technologies, the pharmaceutical industry will have more smart applications in the future, which will be undoubtedly the next big thing (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i,

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2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.2.3 Internet of Things (IoT) sensor integration IoT sensors can greatly beneft the pharmaceutical industry. A vital sign can be measured by an external or internal sensor. Connected devices and smart wearables can be used to analyze the efects of drugs on the body. The development of nanotechnology and the Internet of Things may soon lead to “digestible IoT devices”. These sensors would track and transmit vital signs while being digested. Considering the rapid growth of IoT applications in the pharmaceutical industry and the extensive research being conducted, we can expect some signifcant advances in this area in the near future.

8.2.4 Virtual Reality (VR) and Augmented Reality (AR) Among the next-generation technologies that are infuencing our everyday lives, augmented reality and virtual reality are set to disrupt the pharmaceutical industry. By translating printed prescriptions and dosage instructions on medicine bottles into 3D graphics, pharmaceutical companies are improving prescription explanations to patients. It also increases the efciency of pharmaceutical production. Training, remote maintenance, and handling complex machines are some of the services we provide. Adding augmented reality to helmets can ofer on-the-job training, step-by-step work instructions, and data visualization to improve decision-making.

8.2.5 Blockchain Pharmaceutical companies can use Blockchain technology to simplify manufacturing, distribution, research, development, and even patient identifcation. In the manufacturing and distribution of drugs, the decentralized nature of Blockchain technology may reduce the incidence of fraud and counterfeit drugs. A single source of information can track products, drugs, payments, and medical devices. Clinical trials can also be more transparent with a Blockchain. Moreover, the Blockchain can be used to create a digital identity that can be used to efectively follow the progress of patients in a clinical trial.

8.3 Digital Transformation in International Pharmaceutical Industry (IPI) A pandemic has afected almost all industries, including those that were slow to adopt digital technology previously. The pharmaceutical industry is no exception. COVID-19 has had a profound efect on the pharmaceutical industry, making digital innovation more important than ever. Medical and health information

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is increasingly accessible online (Shah, 2022; KritiKal Solutions Inc., 2022). Through technology, patients are able to access health information, research medications and personal health topics, communicate with their doctors, and take control of their health. Patients are able to access more and more information about healthcare and pharmaceutical companies these days. It remains to be seen, however, which of the recent digital trends will last, and how will they afect the industry? The pharmaceutical industry is going through a revolution – a digital transformation. International pharmaceutical market (IPM) is expected to expand substantially in the next few decades (Shah, 2022; KritiKal Solutions Inc., 2022). As a result of this growth, pharmaceutical executives must fnd ways to increase efciency, identify new business opportunities, and strengthen relationships with patients and prescribers. It won’t be possible without digital transformation (Shah, 2022; KritiKal Solutions Inc., 2022). As a result, we should implement digital transformation as soon as possible. The next generation will be accustomed to everything being digital, making it easier to cater to their needs. Several benefts and importance of digital transformation have been demonstrated in the pharmaceutical industry (Shah, 2022; KritiKal Solutions Inc., 2022; Nandy, M. 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Communications, transportation, manufacturing, and industry, as well as medical and pharmaceutical companies, have been afected by technology in recent years. Information technology (IT) systems are used by modern pharmacists to plan their daily activities. By using this technique, more work can be completed quickly and without much difculty. The pharmaceutical industry is also heavily reliant on IT standards for operating practices, with research and development (R&D) and production heavily reliant on technology. In order to evolve, digital technology relies on the fact that it can provide services to a large population in a way that can be customized, that makes everyday life easier and more efcient, and that it can rely on accurate and consistent terminology and taxonomy that can be mass-customized. In many ways, artifcial intelligence, bar code identifcation (BI), telemedicine, electronic prescriptions, and other new technologies are enabling clinicians and pharmacists to store patient-centric proceedings and records electronically and streamline the electronic statute of limitations process. In addition, this will allow pharmaceutical industry professionals and industry experts to provide high-quality and efective treatments, and patients will be able to understand many of their medications. In recent years, information technology has made the greatest impact on people’s lives. In recent years, many pharmaceutical manufacturers have embraced computer technology due to the benefts of automated information technologies. A globalized population, disease eugenics, and healthcare restrictions have also led to signifcant challenges. Pharmacists have faced numerous challenges in the past. New technologies have a signifcant role to play in addressing these countless challenges as the global efort to achieve universal

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healthcare advances. In order to overcome these obstacles, it is crucial to understand the role technology plays (Pethe, 2021). Since the pharmaceutical industry faces stringent regulations, technological advancements will be greatly benefcial. Outpatient pharmacies and retail pharmacies can utilize technology to improve their operations. Pharmacies can provide better healthcare to patients by integrating technology into their operations. As a result, they are able to improve their organizational, compliance, clinical, and regulatory results. Technology ofers pharmacies access to important patient and medical information as part of their daily operations. Patent legislation is adopted not only as a result of the potential advantages of pharmaceutical technologies but also as a result of federal laws. In the United States and abroad, drug administration, supply, and regulation have changed rapidly (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). The application of information technology to healthcare is one key aspect of this change. With the advent of health information technology, which consists of various tools for managing and sharing patient data electronically, paper records are becoming obsolete. To provide better patient care and to make real-time decisions, pharmacists use health information technology in innovative ways. The use of health information technology can reduce healthcare costs, improve patient quality, as well as improve the overall healthcare system. In other words, it helps the pharmaceutical industry. The pharmaceutical industry is undergoing a digital transformation that will enhance patient care, cost-efciency, transparency, and production (Shah, 2022; KritiKal Solutions Inc., 2022; Nandy, M. 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Pharmaceutical companies will be able to manufacture authentic medicines thanks to the digital transformation of the industry. Pharmaceutical Marketing can use cloud-based information exchange to comply with regulations and interact with suppliers and wholesalers, and may also use digitization to meet a growing market demand. Automation and smart sensors can help pharmaceutical companies keep up with real-time production, calculate demand across regions, and monitor compliance. With the advent of digital technology, pharmaceutical companies have a difcult time keeping up. Innovations such as cloud computing, advanced analytics, digital marketing, and the Internet of Things (IoT) are transforming the healthcare industry. In the pharmaceutical industry, digital transformation has proven disruptive, and executives are experimenting with a variety of digital initiatives. As most companies are not certain what digital success will look like in the future, they have difculty deciding what actions to scale up and how. The following are some examples of technological advances that have enabled the pharmaceutical industry to progress (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

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8.3.1 Electronic Prescription (e-Prescription) By using electronic prescriptions, part of electronic health records, physicians are meeting the afordable care act criteria. Contrary to popular belief, e-prescriptions beneft both healthcare providers and pharmacies. Pharmacies can utilize e-prescriptions as a cost-efective and time-saving method. On-time transfer of a patient’s discharge medications from secondary to primary care is essential to ensure smooth patient care. Patients may also sufer from poor care due to misunderstandings. E-prescription programmes have been implemented in a number of hospitals. Managing and distributing medical prescriptions is made easier with the electronic prescription structure. Some hospitals have benefted from the reduction in drug-related errors, thereby making patients safer. Electronic prescription systems, however, are not without their problems (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). E-prescription systems can also send discharge details to general practitioners instead of pharmacists, and electronic prescriptions are fully readable and can provide pharmacists with patient information that can help prevent dangerous interactions between medications. Additionally, pharmacists no longer have to contact healthcare about disputed medicines. Patients can avoid unpleasant surprises by flling out their prescriptions in advance.The main beneft of an e-prescription is that it allows healthcare providers and pharmacists to determine if the prescription is covered by an individual’s insurance plan on the spot. Furthermore, e-prescriptions allow for a quick and easy refll authorization process (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.2 Keeping Track of Vaccinations Administered by Pharmacists In addition to physicians who play a critical role in society’s health, pharmacists are responsible for immunization (Pethe, 2021). Every year, state governments increase the number and types of vaccines available to patients through local pharmacists. Technology advances now allow pharmacists to record vaccinations in pharmacies, providing patients and healthcare providers with reliable and complete health records. As a result, pharmacies that provide vaccines can more easily receive insurance reimbursements.

8.3.3 Identifcation with Bar Codes E-prescribing combined with bar code recognition can prevent medication administration errors and make medication histories more complete. Health professionals, however, often avoid bar code identifcation since they view it as a time-consuming process. As part of the Falsifed Medicines Directive (FMD), a

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directive that afects healthcare providers in Europe, medications should be recognized at the point of sale in order to combat forgeries. The method will almost certainly use bar code medication recognition, which will signifcantly afect pharmacy workfow, even though the framework has yet to be developed (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.4 Telecare A digital communication technology system is used to deliver healthcare services and appointments to the patient’s home. Telecare ofers many benefts, including reducing travel requirements and lowering healthcare expenses and travel times, as well increasing access to treatment. The benefts of telecare can be found in a wide range of care scenarios and applications. To support further investment in telecare, current research indicates that more evidence is needed regarding its benefts and cost-efectiveness. Pharmaceuticals are being transformed in the same way as previous industries. Prices are being reduced and healthcare is improving. It is a technology that not only enables pharmacies to improve operations but also provides patients with better care. This represents signifcant technological advancements in the pharmaceutical industry. Pharmaceutical industries have benefted from technology such as compliance monitoring, mobile devices, automated delivery, and drug therapy management (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.5 Dispensing Cabinet with an Automated System Automated dispensing cabinets (ADCs) are computerized storage units or cabinets for drugs in hospitals. Automated dispensing cabinets ensure accurate delivery of drugs near the point of care by monitoring, tracking, and maintaining them. Additionally, this reduces human error and allows workers to spend more time interacting with patients rather than flling prescriptions.

8.3.6 Monitoring Prescription Drugs Most countries collect data on state-specifc controlled prescription substances through prescription drug monitoring programmes. In most states, it is optional to check the prescription drug monitoring programme database before completing a regulated prescription, but it is highly advised. Doctors and pharmacists can take advantage of a state’s expertise in prescription drug monitoring to ensure the welfare of patients when prescribing and using regulated medicines.

8.3.7 Management of Medication Therapy A patient can get a pharmacist’s summary of their medication regimen through medication therapy management, an online platform for managing a patient’s

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medications. For any drug issues, a pharmacist will review all prescription medications prescribed by all prescribers, as well as any over-the-counter (OTC) and herbal items. Among the possible problems are errors with medications, duplicate prescriptions, unwanted medications, and untreated or inadequately controlled disorders requiring medication. Furthermore, pharmacists provide patients and caregivers with medication-related education, consultation, and guidance to ensure proper drug usage. During the past decade, technology has also advanced signifcantly in the medical industry. Pharmacies and products have been impacted by these advancements (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.8 Organs printed with 3D printers With 3D printing becoming more afordable and popular, a variety of industries are benefting. Bioprinters are being explored by medical professionals and scientists. The technology allows for the printing of organs and tissues. By the end of this decade, 3D-printed organs will be used for transplants and other purposes, such as study. While the latest technology has the potential to eliminate the shortage of organs, the speed at which they can be made available for transplant recipients remains to be seen (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.9 Artifcial Intelligence (AI) Companies like the pharmaceutical industry are increasingly using artifcial intelligence (AI), such as 3D printing. Artifcial intelligence will not make robots smarter than people, so things will get much worse in the future. In this way, computers and artifcial intelligence allow humans to save time on tasks that would otherwise require a lot of brainpower and efort. The use of facial recognition technology is being explored by physicians and pharmaceutical companies, for example. In the pharmaceutical industry, artifcial intelligence is being used to develop new elements and compounds that are efective and innovative.

8.3.10 Obalon Balloon System Among the equipment used to support weight loss is the Obalon balloon system. An endoscope is usually used to help insert or swallow the saline balloons. The patient loses weight by eating less and eating less when the product is taken in their stomach. Balloons are most efective when combined with routine exercise. Three balloons are used in the Obalon balloon system for three months. At the end of a six-month cycle, the balloons are removed with an endoscopy. Individuals who have sufered from this condition can use this technological

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breakthrough to make long-term life changes, including diet and exercise alone. Intragastric balloons must be administered by a physician.

8.3.11 Concepts and Meanings of Digital Transformation The pharmaceutical industry must frst defne digital transformation before we can discuss how it has afected it. By leveraging technology, digital transformation aims to shift from an analogue to a digital, omnichannel business model. Digital transformation is the process of integrating digital technology throughout businesses and organizations in order to better serve customers. Digital technology can be used to transform existing processes into more efcient and faster ones. Digital transformation involves redefning existing business processes and services as well as building new ones using the latest technologies.

8.3.12 Engaging Patients Traditionally, patient health issues were exclusively diagnosed and treated by their physicians according to their preferences. Recent years, however, have seen greater interest and engagement on the part of patients in their own health. Due to the wide variety of information available on various conditions and treatments, patients are better able to understand their symptoms, identify what may be wrong, and participate actively in discussions about treatments and medications. Additionally, patients can learn more about the performance and side efects of the products. Once upon a time, patients had to rely on their doctors to advise them on what medications to take and how those medications might afect them. There is good news in that patients can now explore potential treatment options on their own. In today’s world, it is easy to fnd out how a particular medication has worked for most patients and what its most common side efects are just by searching online. Thus, patients can better prepare themselves for discussing treatment options with their doctor and will often have a better understanding of what to expect when starting a certain medication (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.13 Accessibility and Transparency Lead to Greater Competition There are times when a patient feels they need a second opinion on their diagnosis or symptoms. As telemedicine provides fast and easy access to virtual consultations, primary healthcare is becoming more competitive, and patients have more options than ever before. Furthermore, it is easy to search for doctors in the area to fnd a good match. In addition to encouraging innovation, this development has the potential to contain healthcare costs. The benefts of all of these can also be applied to the pharma industry; patients have more choices for

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medication, and innovative companies are able to diferentiate themselves from each other (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.3.14 With Technology, Patients Can Get Answers Instantly Healthcare issues often require patients to seek answers as soon as possible. There was a time when getting an appointment with a specialist or receiving test results might take weeks or even months. A telemedicine or digitally streamlined consultation, however, has made it much easier to fnd the right physician, get the right tests performed, and receive the results more quickly.

8.3.15 Biochemical Product Development Biochemical product creation is the way prescription drugs are made from scratch. New drugs are developed by pharmacologists specializing in pharmaceutical biochemistry for people sufering from various illnesses. Additionally, they study how medication interacts with our health. Among other technical advances, as well as in biochemical product growth, there have been huge steps forward. Artifcial intelligence is a driving force behind some of these breakthroughs. As pharmaceutical scientists and engineers develop medicines that improve human health, we will be able to observe how they change over time. Pharmacists’ work is afected by technological advances in many ways. They include the following. Pharmacists are responsible for dispensing diferent kinds of medications to patients, and they often converse with them while they are taking their medication. It is important that patients stay current with the latest technology during pickup in order to ask questions. It is not only pharmacists who must adapt to change in the future, but also pharmacy technicians. Pharmacists manage pharmaceutical inventory, package and mark medications, and provide customer service such as answering phones and inspecting medicines. Between the public and the pharmaceutical industry, pharmacy technicians, supervisors, and pharmacists play a vital role (Pethe, 2021; Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.4 Current Trends and Opportunities of Digital Transformation in the Global Pharmaceutical Industry There has been a digital transformation in international pharmaceutical industry (IPI) since a decade ago. It has only been accelerated by COVID-19. The pharmaceutical industry in the growth markets and healthcare sector has seen an increase in agility in current context. Now pharmaceutical companies operating in the growth markets have developed a fully-fedged vaccination programme

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and re-defnes its business model, it should re-evaluate its role in the international pharmaceutical market (IPM) (Pethe, 2021). Global leadership is being established in the international pharmaceutical industry (IPI) as a result of digital transformation. The healthcare industry is signifcantly diferent today than it was even ten years ago due to the digital transformation occurring in the pharmaceutical and healthcare industries. This transformation could continue for years to come (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Over the past few decades, several trends have reshaped the way we think about medicine in the healthcare and life sciences industries (or have started to do so). Nowadays, patients are in control of their health more than ever before, which makes the industry less intimidating in some ways. Stronger connections between patients and healthcare providers are major factors underlying all of the following trends.

8.4.1 Conversational Artifcial Intelligence (AI) Artifcial intelligence (AI) can have some interesting uses in the pharmaceutical industry since it is still a relatively new technology. As a frst step, conversational AI can be a great way to address any complaints or basic questions a patient has about a specifc drug while making them feel at ease at the same time. Conversational AI may also market new equipment or medications, in addition to providing more accurate medical advice than is available elsewhere on the internet. In some cases, users could be alerted to symptoms that need immediate medical assistance. As an additional tool for capturing and transcribing patient communications, conversational AI and natural language processing are being explored by healthcare providers. This resource might therefore help patients comply with prescribed treatments by reminding them of the next steps and allowing caregivers to keep track of appointments they missed. It provides direct access to those who have the answers. While it used to be difcult for patients to get information about a particular drug, technological advancements, and the internet have made it easier than ever for patients to connect with healthcare professionals. Pharmaceutical companies, however, can better understand their end users’ needs and share their expertise and desire to help them by using digital technologies (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.4.2 Hybrid Experiences for Connected Devices Due to the digital transformation, healthcare professionals and pharmaceutical companies will still be able to interact with patients outside of the internet. However, physically and digitally connected experiences can ofer more comprehensive, multifaceted healthcare solutions. Telemedicine has become

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increasingly popular during the COVID-19 pandemic, for example. A wearable (such as an Apple Watch) or mobile device can be used to keep track of one’s health (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.4.3 An Ability to Connect a Name with a Face Now, it’s harder than ever to be aware of a product or service. As consumers are bombarded with messaging, advertising, and content, it is hard to stand out. Companies in the life sciences are increasingly expected to demonstrate that they care about improving the lives of patients behind their company name. In addition to patient case studies, video testimonials, interviews with doctors, and more, this can be demonstrated through scientifc research.The Instagram page of Eli Lilly, for example, focuses a lot on patient stories, employee spotlights, humanitarian initiatives, and the interesting people who make up the company.

8.4.4 Having the Ability to Not Seem so Big To avoid appearing like a giant corporation, pharmaceutical companies can engage in highly targeted and personalized digital advertising. Content targeted at specifc patient problems, such as video ads, case studies, personalized retargeting ads, and other engaging marketing collateral, will increase engagement. In order to build its brand reputation, a large pharma company uses personalized content to connect directly with its target audience. In the digital age, tools such as artifcial intelligence and machine learning make it easier for pharma companies to interact with audiences and appear more human. It is possible for a brand voice to attract more patients if it is relatable and caring. The physical world and the virtual world are becoming increasingly indistinguishable. It is likely that these lines will continue to blur for years to come as the internet and technology advance. In addition to faster and simpler processes, converting to digital processes can improve client communication and team coordination. In order to embrace digital transformation and to adapt to a constantly changing landscape, organizations need to embrace continuous trial and error. With the shift from physical to digital spaces accelerating, pharmaceutical companies have started preparing for digital transformation. Pharmaceutical companies are being held to higher standards every day as their websites are receiving record amounts of trafc. By using digital transformation to your advantage, you can provide more personalized services and demonstrate your unique value against your competitors. Digital transformation is becoming more and more prevalent. Pharmaceutical companies that embrace digital transformation will be able to stay ahead of their competitors (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

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8.4.5 Offering a Tailored Solution by Leveraging Technology During the pandemic, the pharmaceutical industry has switched from in-person to virtual dealings. Utilizing technology to treat patients has changed as the healthcare industry has embraced digital transformation. Depression treatment is one example. Using machine learning analytics, clinicians can track, correlate, and score three factors – cognitive function, clinical symptoms, and brain activity – to diagnose mental illness. Increasingly advanced technology, together with digital transformation in the international pharmaceutical industry, will lead to a rise in precision medicine in the coming years (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.4.6 Convenience Factor: The New Kid on the Block When It Comes to Pharmaceuticals Both pharmaceutical companies and patients have embraced convenience as a positive outcome of the ongoing situation. The concept of time and distance has vanished with the digital transformation. Due to the social distancing norm, consumers can conveniently access the service without being present physically. Teleconsultations and telemedicine are no longer limited by distance and time. From a pharma marketer’s perspective, digital assets can be used to gather important information, such as cognitive and behavioural data. As a result, digitization is heavily focused on personalization. To make products and services more relevant to consumers, sales representatives are leveraging these data and utilizing digital tools. By utilizing demographic data and cognitive informatics, sales reps can easily bring in personalization with the relevant product/service. Dematerialization has been accelerated due to the move to the virtual environment. Access to healthcare services is convenient for consumers from the comfort of their homes, and providers and HCPs collaborate at convenient times to discuss new products and engage (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.4.7 Marketing on Pharmaceutical Product Innovation The only way to increase consumer value is to develop new products. The greater the degree to which the product fts with the consumer’s pain point, the greater its acceptance on the market will be.

8.4.8 Prioritize Quality In the pharmaceutical industry, quality is the most important factor. Numerous quality checks are conducted virtually so that quality can be assured when physical

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presence is not possible. In order to ensure quality, regulators are using an increasing number of digital tools.We no longer need to fy down for minor matters because we have tools like Google glasses for inspection, and quality assurance is achieved using digitization.With the pharma industry undergoing rapid transformation, we will see more medical and technical collaboration between pharma regulators and IT professionals. Digitization is an essential component of pharma’s success. The pharmaceutical and healthcare industries are experiencing great disruption. In the industry, there are many buzzwords.These include augmented reality, virtual reality, and predictive analytics. It is better to use digital tools than to force them into a system in order to achieve a predetermined goal (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.5 Role of Electronic Commerce (E-Commerce) in Pharmaceutical Product Supply The growth of the Internet has prompted the development of technology-driven models that provide fast and efcient access to end users. In the last few years, telemedicine has emerged as one of the most innovative technology models, allowing access to the fnest doctors from anywhere. It has been shown that electronic pharmacies or E-pharmacies are an attractive healthcare model recently. A growing population and changing lifestyles are contributing to the rising burden of various health hazards in emerging economies. In order to drive the health system in the right direction, making quality medicines and treatments widely available has emerged as a benchmark. Internet-based healthcare is becoming increasingly accessible with a variety of choices and afordable rates due to its role in the internet age (Pethe, 2021).

8.5.1 Electronic Commerce Electronic commerce (e-commerce) is the buying, selling, and exchanging of goods and services over computer networks (such as the internet) in which the transactions or terms of sale are completed electronically. E-commerce is not just limited to the internet, as is widely believed (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). A range of commerce has developed over the years as a result of fast-paced technological developments driven by demand. Among the well-known technologies are: a) b) c) d)

Transfer of funds electronically. Management of the supply chain. Marketing via the internet. Electronic transaction processing.

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e) Electronic data interchange (EDI). f ) Inventory management systems (IMS).

8.5.2 E-commerce Continues to Grow Communication and business have been transformed by the penetration of the internet and mobile phones. It is relatively new that e-commerce has emerged.The internet and mobile phone revolution have greatly impacted how businesses connect with their customers today. One of the biggest challenges that e-commerce pharmaceutical companies face is reducing supply chain costs. In order to meet customer expectations, pharmaceutical companies have shifted manufacturing to low-cost countries around the world in order to reduce direct and indirect costs. Further, having global suppliers adds to the complexity of long delivery lead times (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Customers are not only looking for low prices but also for delivery on time and ideally at their doorstep. There was no technology-driven pharmaceutical supply chain in the past. Drugs and medicines had to be purchased and sold physically. Nowadays, pharmaceutical businesses cannot function without computers. The majority of pharmaceutical companies keep records and data about their businesses online, preferably in the cloud, so they can retrieve and update them whenever necessary (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.5.3 e-Pharmacy (Electronic Pharmacy) With the rise of chronic clinical indications like diabetes, hypertension, asthma, and obesity, the electronic pharmacy (e-pharmacy) market is growing rapidly. Furthermore, governments of diferent growth markets have taken initiatives and implemented programmes for the promotion of generic medicines, telemedicine, and e-healthcare initiatives to provide high-quality healthcare and medications to all parts of the nation, and the key characteristics that make the e-pharmacy segment a potential market in the future. Despite showing an impressive market penetration rate in the growth markets, the online pharmacy market is slowly gaining momentum within the E-Commerce industry. Investors and entrepreneurs are keen on becoming a part of the rapidly growing e-pharmacy industry. Many nations in the growth markets have recently enacted laws regarding the regulation of online pharmacies, resulting in impressive funding and investment in startups and ventures. Online pharmacies can take advantage of this lucrative segment for increased proftability (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

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8.6 The Technology Curve: Revamping the International Pharmaceutical Industry (IPI) Innovations in emerging technologies will help pharma companies address key challenges, improve operational efciencies, and increase performance. Through new ways of product development, customer service, and interaction, mobile computing, analytics, social networking, and cloud computing promote innovation. By leveraging cloud computing and big data analytics, the pharmaceutical industry can reduce costs, reduce time, and gain a competitive advantage. R&D (research and development) can also be greatly streamlined by utilizing technologies such as Hadoop. As a result of the shift toward a networked pharmaceutical model, efciency and productivity have increased. Software-as-a-service (SaaS) based models can be adopted by pharmaceutical companies in areas such as manufacturing, sales, marketing, fnance, human resources, etc. SaaS solutions are accessible for enterprise resource planning (ERP), customer relationship management (CRM), laboratory information management, sales force automation, human resource management (HRM) and human capital management (HCM), payroll and fnancial management, warehouse management, etc., signifcantly reducing upfront costs. Further, consumers are more likely nowadays to provide input and feedback concerning products and services. These create an opportunity to crowdsource ideas and develop solutions, which for some means fnding new ways to engage patients, such as engaging them directly in learning more about how their medicines work in the real world. Engaging and interacting with customers and employees can be achieved through mobile devices (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Using an ecosystem, these devices go beyond simply enabling access to applications to drive innovation by transforming customer and employee experiences. Pharmaceutical companies can diferentiate themselves in a rapidly changing market by using these devices. Pharmaceutical and life sciences companies can use emerging technologies to engage external stakeholders including healthcare providers, patients, and governments in helping achieve the goal of health for all. By using virtual product design, products can be designed, tested, or evaluated digitally without creating physical prototypes, which reduces time spent on research and allows new products to be displayed sooner (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v). Logistics can adjust production needs automatically with a robust tracking system, reducing logistical failures. Manufacturing processes can be integrated, optimized, and automated. Sensors, connecting value chains, and integrating customer and supplier data can help facilitate data exchange from design to production to service. The use of autonomous robots allows multiple models and small customized lots to be manufactured in a highly fexible and individualized way, thus improving performance. Through big data and analytics, predictive maintenance

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may be enabled through smart sensors. This can help reduce downtime and optimize the maintenance process. Most likely, technology-driven companies will gain a sustainable competitive advantage if they embrace technology, harness it, and integrate business processes (Nandy & Biswas, 2015). Emerging technologies may be able to boost operational efciency, lower costs, and encourage innovation, but they cannot deliver success without a well-defned and structured strategy. Analytics, social media, and enterprise mobility strategies are expected to be increasingly used by pharma companies in order to innovate, improve customer service, improve employee engagement, and lower costs (Nandy, 2018a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h, 2020i, 2020j, 2020k, 2021l, 2022m, 2022n, 2022o, 2022p, 2022q, 2022r, 2022s, 2022t, 2022u, 2022v).

8.7 Importance of Digital Transformation in International Pharmaceutical Industry (IPI) The digital transformation of pharmaceutical companies can fundamentally alter the way they do business. In the future, companies’ ability to adapt to digital marketing will determine the growth in both domestic and overseas sales. The pharmaceutical sector has become more important as a result of digital transformation due to the following benefts. I. Ability to reach potential customers despite government restrictions Advertising and marketing in the pharmaceutical industry can be complicated and regulated due to their regulatory nature. Developing a proper digital strategy to reach the right audience can help your company stay within the law’s parameters. II. Provide customers with the information they require The information about pharmaceutical products that work overtime is no longer limited to one source. Today’s digital transformation trends ofer patients and companies unprecedented access to information about the impact of healthcare strategies and medical products. Patients are increasingly searching the internet for information about medical products and treatments. Pharmaceutical companies will continue to communicate with patients through healthcare professionals. Pharmaceutical companies can use digital marketing to reach consumers with accurate information about their products, drugs, or services. III. Evaluating customer requirements better Digitalization allows pharma companies to better understand customer requirements. Getting an idea of what people need can be done by monitoring online forums and analyzing data from health apps. With these insights, multinationals

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will be able to create innovative drug products people will want and market them to the right audience. IV. Monitoring the performance of products Pharmaceutical companies can gain actionable insights about the safety and efcacy of their products from online user feedback and ftness app data. Irrespective of how old or new a product is, the company will remain the primary authority. Markets and businesses are constantly changing, so staying on top of them is crucial. Some companies are able to achieve this goal by using digital marketing strategies. Traditionally, the pharmaceutical industry has been slow to adopt new technologies, but pharma health trends indicate it is undergoing a massive transformation. Artifcial intelligence (AI), augmented reality (AR), virtual reality (VR), and additive manufacturing are helping pharma companies accelerate research and development, create personalized products, and conduct testing in an innovative way. Through the use of these technologies, healthcare will become more efective and efcient. There is a boom in pharmaceutical technology all over the world. Besides the United States, pharmaceutical health technology is growing rapidly in the United Kingdom, Belgium, Germany, Switzerland, and Israel (Richards, 2021). Now the question arises: where are the most dramatic changes occurring? Within the context of growth markets, this section examines the eight most signifcant trends in health technology that are expected to disrupt the pharmaceutical industry (Richards, 2021). a) b) c) d) e) f) g) h)

Computing with artifcial intelligence (AI). Integration of wearable technology. Analytics and data management. Processes with a single use. Medical precision. Bioprinting process. “In Silico” testing. Data from the real world.

Computing with artifcial intelligence (AI) Healthcare is becoming increasingly dependent on artifcial intelligence. This pharmaceutical industry in the growth markets already benefts from the predictive and analytics capabilities of artifcial intelligence. Healthcare professionals can use artifcial intelligence to analyze patterns in data sets to predict the implications, benefts, and success rates of new drugs before they are introduced to the market. In growth markets, pharmaceutical companies conduct clinical trials and real-world evidence (RWE) studies using Artifcial Intelligence (AI) and Machine Learning (ML). Patients are identifed with the help of ML-based software that scans electronic health records and illegible notes from doctors. Artifcial intelligence models are also being developed to treat various diseases.

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Several multinational pharmaceutical companies operating in emerging markets have begun using artifcial intelligence (AI) and machine learning (ML) strategies to test and select new drugs, such as representation and few-shot learning (determining results from limited data). The drug discovery and development process can be accelerated using these methods that don't require a lot of data. Integration of wearable technology Wearable technology can be used by pharmaceutical companies for more than just manufacturing, marketing, and selling drugs. Wearable technologies allow patients to make important decisions about their health and control their health. Using remote monitoring devices, doctors can monitor blood glucose and blood pressure metrics, as well as chronic conditions such as asthma and diabetes. Partners Healthcare Centre has partnered with Daiichi-Sankyo, a Japanese pharmaceutical company, to implement wearable technology. In order to provide doctors with feedback on A-Fib patients, two institutions developed a mobile wrap-around device. Symptoms of A-fb include irregular and often rapid heart rhythms (arrhythmias) that can result in blood clots. Heart failure, stroke, and other complications can occur in people with A-fb. Another company using wearable technology is Roche. The mySugr app enables Accu-Chek glucose metres to work with mySugr glucose metres, helping people with diabetes manage their condition more intuitively. Patients can monitor their blood glucose levels through simple tasks such as logging in and completing surveys. Rather than waiting around for answers, a more practical, and efective approach can improve patient satisfaction. With MySugr, managing diabetes is a whole lot easier. Analytics and data management One of the biggest obstacles to the launch of new drugs is the cost of research and development. Based on the current literature review, it is estimated that developing a new molecule or biological medicine can cost 2.6 billion dollars. Thus, there is a lack of efective medicines being developed and distributed. Scientists can quickly discover and distribute drugs by leveraging big data, which shortens the exploration cycle. By predicting a drug’s side efects in advance, big data can also reduce the time taken for clinical trials. By shortening the R&D cycle, the cost of medications can be reduced for patients. Research and development expenses are a signifcant contributor to medication costs. Multinational pharmaceutical companies integrate machine learning algorithms with big data to improve their research and development processes. By leveraging technology, drug discovery and development can be sped up. Processes with a single use A growing number of multinational (MNC) pharmaceutical companies in the growth markets are adopting single-use technologies (SUT) and the same also infuence in foreign direct investment (FDI) to attract MNCs for the investment in the host countries in growth markets. As this technology continues to evolve, industry players are becoming more aware of its advantages. By using

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SUT-powered bioreactors, higher-tier processes can be achieved at a larger scale. Furthermore, the technology makes it possible to manufacture more reliable products as it eliminates the need to sterilize containers. Multinational pharmaceutical companies that use SUT report reduced maintenance processes, fast turnaround times, and simple operations. As opposed to stainless steel equipment that can take days to set up, equipment running on SUT can be set up in only one or two hours. System maintenance does not require sanitation validation, annual cleanings, or minimal monitoring. By using single-use processes, it is easier to maintain sterility in a production environment since cross-contamination is reduced. Its wide-ranging benefts make pharmaceutical companies unable to ignore SUT despite its relative newness. Several multinational (MNC) pharmaceutical companies in the growth markets are adopting SUT for increasing operational efciency and signifcant fnancial returns as a part of sustainable fnancial strategies. A growing number of single-use bioreactors are being used to simplify processes. Medical precision Diagnoses, treatments, and presentations of diseases are made more precise with precision medicine. By using these technologies, doctors can make accurate, data-driven decisions about patients based on their genes and lifestyles. Precision medicine is expected to have a signifcant impact on the market in the near future. Targeted therapies are largely responsible for this growth. Precision medicine will revolutionize oncology once it is fully implemented, making personalized treatment possible. The delivery of truly customized care to patients requires an overhaul of the way health care professionals design and develop treatments, despite precision medicine’s infancy. A new economic, clinical, and regulatory framework will be required for precision medicine to succeed. By administering the right treatment at the right time to the right patient, the right results can be achieved. Growth projections indicate that this could become one of the biggest pharma health-tech trends in the next few years (Richards, 2021). Bioprinting process It remains a signifcant challenge for the pharmaceutical industry to conduct clinical trials. In clinical trials, companies use live subjects to test the efcacy and safety of a drug. This may change with bioprinting. Bioprinting imitates human tissues and organs by using similar techniques to 3D printing, a technological advancement that sounds like something out of a dystopian movie. These biomaterials are woven together into a mesh-like structure by combining cells, growth factors, and other biomaterials. Clinical trials can be conducted using 3D-printed organs instead of human subjects. Bio-ink, a suspension of live cells, can be used to create human tissue in the lab. Through the use of this technology, microorganisms and tissues can be created that react to drugs and substances in the same way as the human body does. With bio-ink made with a patient’s genes, researchers can replicate larger, more complex organs. Using this technology, pharmaceutical companies could even create customized drugs tailored to

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specifc patients. The pharmaceutical industry can beneft from bioprinting in several ways: a) A specifc dose of a drug is tested for its toxicity. b) Using disease models and diferent treatments. c) A specifc dose of a drug is measured to see how it afects cell metabolism. In addition to reducing the costs associated with clinical trials, 3D-printed organs are predicted to reduce the time involved in approving new medications. In Silico testing Developing new cosmetic products can be time consuming and costly, especially for companies that are searching for new ingredients. To solve these production problems, more and more companies are using in silico screening. Utilizing molecular databases and virtual modelling, it is easier to discover new active ingredients for cosmetic products. A step of the in silico screening process involves storing molecule-level information and protein interactions in databases and simulation software. Through an in silico pharmacological screening, it is possible to uncover how a potentially cancer-causing compound interacts with proteins involved in cancer development. A number of sectors relying on biological research, such as food and drug toxicology, and cosmetic development, can beneft from in silico screening, including: a) b) c) d)

Improvements can be made to existing products. If active molecules can be identifed for specifc targets. That will assist with product development and other research initiatives. In demonstrating certain compounds’ biological activity and health benefts.

Data from the Real-World One of the emerging pharma health-tech trends is the use of real-world data for healthcare decisions (Richards, 2021). For instance, the US Food and Drug Administration (FDA) uses real-world data (RWD) alongside real-world evidence (RWE) to determine the safety of products and identify adverse events. Healthcare professionals use these two technologies to support coverage decisions and formulate guidelines regarding medical tools. In addition to supporting clinical trial design, RWD and RWE are also used by medical product manufacturers to support pragmatic clinical trials and large simple trials. In addition, RWD and RWE are being used in observational studies and as a basis for new treatment regimens. The sophistication and analytical capabilities of RWD and RWE enable members of the healthcare community to analyze data and use the results to improve product development and approval processes. Devices such as mobile devices, computers, biosensors, and wearable collect and store healthrelated data. Clinical trials can be designed and conducted more efectively using this data, thereby answering previously unanswered questions. RWD will

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continue to be a key component of pharma health-tech trends for the foreseeable future because data is so intrinsically tied to technology (Richards, 2021).

8.8 Key Challenges in Pharmaceutical Healthcare Technology Pharmaceutical health tech has the potential to revolutionize the pharmaceutical industry, but it is not without its drawbacks (Richards, 2021). The industry has its own culture and working methods, as do technology and medicine. A structured working environment and a lengthy development process are familiar to healthcare professionals as a whole. Before a new drug is released, clinical trials can take years, not to mention the development phase. Due to this, technology companies operate in a fast-paced, cross-functional environment, frequently releasing new products and refning them over time. In spite of the difculty of merging the two industries as they operate diferently, such a merger is vital to the success of emerging health-tech startups. The health-tech industry presents several challenges to overcome.

8.8.1 Threats to Cyber Security There has been an increase in cyber attacks against the pharmaceutical industry. A hot spot in the data threat landscape is health data because it is the result of innovation and massive investment in research and development. They store sensitive information, often regarding patient privacy. Losing control of this information would be catastrophic for a company or medical organization. A data breach undermines the trust of customers and patients, ultimately reducing the value of a health-tech company (Richards, 2021). Additionally, companies that fall victim to cybercriminals will face heavy fnes and disruptions. If the wrong people are entrusted with your valuable data and intellectual property, you may lose years of research. It is a sad fact that cybercrime exists. Furthermore, pharmaceutical companies have been in the spotlight quite a bit lately because of their high level of innovation. Therefore, internal and external risks must be minimized. Education and awareness are excellent strategies for securing information and maintaining data privacy.

8.8.2 Integrity of the Supply Chain The digitalization of the healthcare industry’s supply chain is one of the trends in the pharmaceutical industry’s growth markets. Gene and cell therapies require an understanding of the supply chain. Keeping the temperature of sensitive therapies steady requires pharmaceutical companies to come up with the most efcient transport method. Even though the drugs are life-sustaining and expensive, it is imperative that the supply chain is error free. In this industry, it is imperative that the players establish a channel for information to be shared seamlessly between

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partners throughout the supply chain. A reliable supply chain relies heavily on online networks. By exchanging information and ideas, organizations, researchers, and other parties can improve products. The Internet of Things (IoT) makes it possible to transmit complex data in real time, for example, in the pharmaceutical industry. Monitoring medication temperatures and ensuring they’re delivered on time is possible with the internet of things.

8.8.3 Information Technology (IT) Integration Due to the reliance on IT systems for growth and efciency, maintaining regulatory compliance in the pharmaceutical industry is a major challenge. Technological advancements require new laws to keep pace. Therefore, it is constantly challenging for businesses to stay current on the latest manufacturing methods. The biopharmaceutical industry is always striving to maximize proft margins, which leads to many acquisitions and mergers. It is therefore challenging for many organizations to strike a balance between rapidly integrating information technology (IT) and producing quality products and processes. In addition, the pharmaceutical industry is experiencing a shortage of IT talent. It is difcult for companies to retain these employees. The pharmaceutical industry is not the only one facing these issues, but these issues make it hard for pharma organizations to maintain high standards.

8.8.4 Technological Advancements Pharmaceutical companies can still fnd themselves searching for a newer, more current solution in spite of recent technological advancements. The latest technology may present a challenge to pharmaceutical companies when it becomes obsolete relatively quickly. Pharmaceutical companies need to stay on top of technology in an industry that depends on innovation. Although this is the case, companies do not have the budget to test every healthcare trend. Pharmaceutical companies can carefully evaluate health-tech solutions to determine which ofers the best return on investment (ROI) (Richards, 2021). The outbreak of COVID-19 had a silver lining in that it gave the pharmaceutical and healthcare industries a wakeup call. Pharmaceutical and healthcare companies are now rethinking their business processes to improve their efciency in the growth markets. These companies must frst overcome the challenges they face today. A pharmaceutical company operating in a growth market must ensure that they have the right team to lead a successful digital transformation and develop a robust cyber resilience framework. Health-tech companies can expect to experience an increase in IPOs, acquisitions, and mergers as investors fock to support new startups (Richards, 2021).

8.9 Overview of Pharmacological Equipment When it comes to headaches, pharmacology can help. Our daily medicines, such as hay fever tablets, antibiotics, cancer treatments, and many others, were

Dissolution Test Apparatus Disintegration Test Apparatus

Kymograph

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Name of the Pharmacological Instrument

Sl. No.

The dissolution test evaluates the performance of the product using an apparatus with specifc conditions and acceptance criteria. Four standardized apparatuses are used in dissolution: a basket, paddle, reciprocating cylinder, and fow-through cell (USP, 2022). This solid state instrument is designed to estimate disintegration time accurately according to IP/USP standards (Esico International, 2022). Two batches of six tablets can be tested simultaneously using this instrument (Esico International, 2022). Pharmaceutical industries f nd the unit extremely useful. As per USP/BP/IP standards, it is used in quality control and research and development to determine compliance with the disintegration requirements of tablets and capsules (Esico International, 2022). Kymographs can be used to record magnitudes and time courses of physiological variables (Nitzsche & Diez, 2010). Time and distance can be converted into each other using the same fundamental principle from kymographs to polygraphs to oscilloscopes (Nitzsche & Diez, 2010). Plethysmography is used to measure changes in volume in diferent parts of the body. The test may be done to check for blood clots in the arms and legs (Medline Plus, 2022) In 1904, Rudolph Magnus designed this device, which consists of the following components (Pharmacy Infoline, 2022). a) Water bath or outer jacket: Steel, glass, or perspex (a clear thermoplastic resin) is used for the water bath or outer jacket. The organ bath is f lled with water and other parts (Pharmacy Infoline, 2022). b) Inner organ or tissue bath: This is a cylindrical glass container with a variable capacity. A physiological salt solution contains isolated tissue (Pharmacy Infoline, 2022). c) Heating rod or electrical heater with thermostatic control: The outer jacket heats the water to the desired temperature (Pharmacy Infoline, 2022). d) Stirrer: The outer jacket is stirred by an electrical device to keep the water circulating at a uniform temperature (Pharmacy Infoline, 2022). e) Glass coil or condenser: In addition to the organ bath, the physiologic salt solution is contained in a glass or perspex coil. The inner organ bath is usually twice as large as the outer chamber to ensure the solution is heated before entering the chamber (Pharmacy Infoline, 2022). f ) Oxygen delivery tube: A hollow glass tube makes up the device. Additionally, it holds tissues and delivers oxygen to them. An S-shaped curved end is tied to the lower end of the tissue with a thread. Air or oxygen is supplied through a small hole at the lower end of the tube for proper aeration of the tissue (Pharmacy Infoline, 2022).

Pharmacological Instrument

TABLE 8.1 Most Used Pharmacological Equipment

252 Technological Aspects in International Pharmaceutical Marketing

Analytical Balance

pH Meter

Vogel Test Apparatus

Histamine Chamber

7

8

9

10

Source: Author’s own.

Flame Photometer

6

Upon introducing metal into a f ame, a f ame photometer measures the intensity of the emitted light (Sdutyandscore, 2022). It is possible to determine the element in a sample from its wavelength and the amount of that element from the f ame (Sdutyandscore, 2022). Mass can be measured accurately with the aid of analytical balances, which are highly sensitive lab instruments (Quality Scales Unlimited, 2022). The readability of their scales ranges from 0.1mg to 0.01mg (Quality Scales Unlimited, 2022). To prevent air currents from afecting very small samples, analytical balances have draft shields or weighing chambers (Quality Scales Unlimited, 2022). Instead of using actual masses, analytical scales measure the force required to counter the mass of a sample (Quality Scales Unlimited, 2022). By measuring the force needed to achieve balance, they output the result by using an electromagnet to generate a force to counter the sample (Quality Scales Unlimited, 2022). The pH meter measures the acidity or alkalinity of a solution – also known as pH. pH is the unit of measure for alkalinity or acidity (Omega, 2022). To induce anxiety in subjects and monitor drug efects, the Vogel Test Apparatus administers a mild shock after 20 licks on the sipper tube (Orchid Scientifc, 2022). The sipper tube is adjustable between 0.25 seconds and 2.0 seconds during shock delivery (Orchid Scientifc, 2022). Users can adjust the intensity of the shock. Anxiometer then conducts a three-minute testing session during which licks and shocks are recorded on the front panel counters (Orchid Scientifc, 2022). A comparison of the drinking behaviours of punished drugged rats and punished non-drugged rats can be used to measure the efectiveness of anti-anxiety drugs (Orchid Scientifc, 2022). Anxiolytic properties of drugs are commonly tested by conf ict tests like the Vogel test (Orchid Scientifc, 2022). In this procedure, mild electrical shocks signifcantly reduce the water consumption of deprived animals (Orchid Scientifc, 2022). After anxiolytic drugs are administered, drinking responses are restored (Orchid Scientifc, 2022). A Vogel Test Apparatus or Vogel Test Anxiometer is used to test the anxiolytic efects of drugs on mice and rats (Orchid Scientifc, 2022). An apparatus for the assay of antihistamines on guinea pigs consists of a clear perspex chamber divided into two sections, a glass nebulizer, a dial-type sphygmomanometer, etc. ( Japson, 2022).

Technological Aspects in International Pharmaceutical Marketing 253

254

Technological Aspects in International Pharmaceutical Marketing

developed by pharmacists (British Pharmacological Society, 2022). To ensure that everyone has the opportunity to live a long and healthy life, pharmacy is at the forefront of our fght (British Pharmacological Society, 2022). “Pharmacokinetics is the study of the rate at which drugs are eliminated, their apparent volume of distribution, and their bioavailability” (British Pharmacological Society, 2022; Grogan & Preuss, 2022). Drugs and their efects on the body are studied in the study of pharmacology. In pharmacology, drugs are studied for their sources, chemical properties, biological efects, and therapeutic uses. In pharmacology, the following pharmacological instruments are most commonly used (British Pharmacological Society, 2022; Grogan & Preuss, 2022) (Table 8.1).

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available at: https://www.amazon.in/Marketing-Management-Dr-Mithun-Nandy/ dp/9387537730/ref=sr_1_4?crid=MAZ2HFQM9XVS&keywords=mithun+nandy &qid=1643701964&s=books&sprefx=mithun+nandy%2Cstripbooks%2C303&sr=1 -4. Nandy, M. (2020j). Surviving COVID-19 Pandemic: STAY HOME STAY SAFE, Service to the Bottom of the Pyramid (BoP): Study of Philanthropic Activities of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA) in Birbhum District of West Bengal State during Lockdown Period due to Covid-19 in India, Crescent Publishing Corporation, New Delhi, pp. 216–237. ISBN: 978-93-87537-65-1. Nandy, M. (2020k). “Is There Any Impact of R&D on Financial Performance? Evidence from Indian Pharmaceutical Companies”, FIIB Business Review, Vol. 9, No. 4, pp. 319–334. https://doi.org/10.1177/2319714520981816. Nandy, M. (2021l). “Service to the Poor by Philanthropic Activities in Birbhum District of West Bengal State during Lockdown 4.0 Due to Covid-19 in India: Empirical Study on the Work of Dubrajpur Sree Sree Ramkrishna Ashram (DSSRA), in the National Webinar on “Emerging Trends: Issues, Challenges and Opportunities (Post Covid-19)”, 30th–31st May 2020 Organized by the School of Commerce and Management Sciences, Mahatma Gandhi Central University (MGCU), Motihari, Bihar, India, Volume-IV, Published by World Lab Publication (India)”, pp. 74–104. ISBN: 978-93-90734-49-8. Nandy, M. (2022m). “A Profle of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_2. Nandy, M. (2022n). “Empirical Study”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https:// doi.org/10.1007/978-981-16-6921-7_7. Nandy, M. (2022o). “Evaluation of Financial Performance in Global Context”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_6. Nandy, M. (2022p). “Global Competitiveness of Pharmaceutical Industry of India: Trends and Strategies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978 -981-16-6921-7_5. Nandy, M. (2022q). “Impact of R&D Activities on the Financial Performance: Empirical Evidence from Indian Pharmaceutical Companies”, International Journal of Pharmaceutical and Healthcare Marketing. https://doi.org/10.1108/IJPHM-08-2020 -0067. Nandy, M. (2022r). “Marketing Activities of Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_3. Nandy, M. (2022s). Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan (Springer Nature Singapore Pte Ltd.), First Edition 2022, Hardcover ISBN: 978-981-16-6920-0, eBook ISBN: 978-98116-6921-7, https://doi.org/10.1007/978-981-16-6921-7. Nandy, M. (2022t). “Research and Development (R&D) Activities of the Indian Pharmaceutical Companies”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007 /978-981-16-6921-7_4. Nandy, M. (2022u). “Innovative Healthcare Product Design and Financial Returns: Evidence from an Indian Pharmaceutical Company”, International Journal of Business

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Innovation and Research, available at: https://www.inderscience.com/info/ingeneral /forthcoming.php?jcode=ijbir; https://doi.org/10.1504/IJBIR.2022.10052343 (accessed 9th December 2022). Nandy, M. (2022v). “Introduction to Pharmaceutical Marketing Management”, in Relationship between R&D and Financial Performance in Indian Pharmaceutical Industry. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-6921-7_1. Nitzsche, B. & Diez, S. (2010). “Methods in Cell Biology”, available at: https://www .sciencedirect.com/topics/medicine-and-dentistry/kymograph (accessed 6th September 2022). Omega. (2022). “pH Meter”, available at: https://www.omega.com/en-us/resources/ph -meter (accessed 6th September 2022). Orchid Scientifc. (2022). “Vogel Test”, available at: https://orchidscientifc.com/product /vogel-test/ (accessed 6th September 2022). Pal, B. & Nandy, M. (2015a). “Role of Regional Rural Banks (RRBs) in India’s Financial Inclusion: An Empirical Study”, in Economic Development Through Financial Inclusion National Seminar Proceedings, Department of Commerce, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur, West Bengal, India. Manav Prakashan, Kolkata, West Bengal, pp. 121–136. ISBN: 978-93803-327-6-5. Pal, B. & Nandy, M. (2019b). “Innovation and Business Sustainability (IBS): Empirical Evidence from Indian Pharmaceutical Industry (IPI)”, Artifcial Intelligence for Engineering Design, Analysis and Manufacturing, Vol. 33, No. 2, pp. 117–128. https://doi .org/10.1017/S0890060419000040. Pethe, A. (2021). “The Role of Technology in Evolving Pharmaceutical Sector”, available at: http://pharmabiz.com/ArticleDetails.aspx?aid=141925&sid=9 (accessed 5th April 2022). Pharmacy Infoline. (2022). “Commonly Used Instruments in Experimental Pharmacology”, available at: https://pharmacyinfoline.com/instruments -experimental-pharmacology/ (accessed 6th September 2022). Quality Scales Unlimited. (2022). “Analytical Lab Balances”, available at: https://scalesu .com/products/analytical-balances/ (accessed 6th September 2022). Richards, R. (2021). “8 Pharma Healthtech Trends to Watch in 2021”, available at https://masschallenge.org/article/pharma-healthtech-trends (accessed 1st April 2022). Sdutyandscore.(2022). “Flame Photometer: Principle, Components, Working Procedure, Applications, Advantages and Disadvantages”, available at: https://www .studyandscore.com/studymaterial-detail/fame-photometer-principle-components -working-procedure-applications-advantages-and-disadvantages (accessed 6th September 2022). Shah, K. (2022). “Role of Digital Transformation in Pharma Industry with its Need & Importance”, available at: https://iide.co/blog/digital-transformation-in-pharma -industry/ (accessed 31st March 2022). USP. (2022). “Dissolution and Drug Release Tests”, available at: https://www.usp.org /small-molecules/dissolution#:~:text=Dissolution%20testing%20measures%20the %20extent,release%20are%20terms%20used%20interchangeably (accessed 6th September 2022).

INDEX

7P concept 12; product (P1) 12, 14–15; price (P2) 15–16; place (P3) 16–18; promotion (P4) 18–19; people (P5) 19–20; process (P6) 20–21; physical evidence (P7) 21–22 A Abbott Laboratories 30 AbbVie 29–30 access, database and transparency 162–163 accessibility and transparency, competition 237–238 active pharmaceutical ingredient (API) 123, 176–177 advertisements 167–168, 172–173, 185 after-sales service 185 AIDS drugs supply, low cost in Africa 59–60 aligning pharmaceutical brand management 113–114 analysis of client behaviour 184 analytics and data management 247 anatomy and physiology 86 Ansof’s matrix 124, 124; diversifcation 126; market development 125–126; market penetration 124–125; product development 125 artifcial intelligence (AI) 228–230, 236; computing 246–247; conversational 239; and robotic technology 33 augmented reality (AR) 231, 242 Augmentin 15

authorization power 9; of prescription (Rx) 10 automated dispensing cabinets (ADCs) 235 B bar codes identifcation 234–235 Barney, Jay B. 132 barriers of, pharmaceutical brand communication 200–201; brandportfolio strategy, yields synergy and clarity 203; brand relevance 202; competition 201; cost 202; digital strategy 203; innovative approach 202; integrating marketing communications (IMC) 202; internal buy-in 202; leveraging brand assets, enable growth 203; positioning 201; targeting/ location 201; timing 201 Bayer 26–27 behaviour pattern of patients 73 biochemical product development 238 bioprinting process 248–249 Blockchain 231 brand acquisition, Indian Pharma business 63 brand identity 198–199 branding 18, 78, 82, 184, 211–213 brand launch 200 brand-portfolio strategy, yields synergy and clarity 203 brand relevance 202

260 Index

brand style and voice guidelines 199 brand tools 199 build customer advocacy 109–110 building brand 200 building community connections 75 building partnerships 76 building relationships 36 bulk drug 176–177 business-to-business (B2B) 173–174; platform benefts 175–176 buying and assembling 5–6 buying methods 5–6 C call frequency, healthcare providers (HCPs) 93 camps activity 77 celebrity endorsement, Pharma branding 62–63 certifcations of, organization’s supply chain partners 162 channels and importance, inventory control and management 158–160 children’s exploitation 168 Cipla case study 59–60 clearing and forwarding agents (CFAs) 157–159, 177 clinical and behavioural characteristics of patient 73 coaching 93–94 commercial feasibility 108 commercialisation 108 competition 201 competitive rivalry 123 competitor-based pricing 148–149 competitors analysis 219–220 computing, artifcial intelligence (AI) 246–247 conduct internal review 196 conferences and academic events participation 40–41 connecting new customers 95–96 connect name with face 240 consumers self-educate 172 contemporary pharmaceutical marketing practices, growth markets 35; building relationships 36; detailing, visual aids for physicians 39–40; emotional connect, consumers 38; engage physicians, online community 38–39; free samples distribution 36; guerrilla marketing, breaks rules 37; participation, conferences and academic events 40–41; presence of, quality website content 37; presence

of, social media 35; search engine optimization (SEO) 42; technology utilization 36–37 continuing medical education (CME) 217–218 controlling mechanism 208 convenience factor 241 conversational artifcial intelligence 239 corporate social responsibility (CSR) 4, 30–33 corporate sustainability responsibility 131 cost 202 cost-oriented pricing: cost-plus pricing 146; markup pricing 146 cost-plus pricing 16 council of dealers/association 165–166 COVID-19 pandemic 22–23 creative contents 199 CRM in international pharmaceutical industry framework (CRMIPIF) 95 customer-based pricing: loss leaders 148; penetration pricing 147; price skimming 147–148; psychological pricing 148 customer/patient interface 21 customer relationship management (CRM) 95, 125; connecting new customers 95–96; exploring opportunity 96; innovative marketing solution 96; managing regulatory norms and compliances 97; planning future needs 96 customers bargaining power 123 cyber security threats 250 D decline 113 demand-supply conditions 145 desired proft margin 144 detailing, visual aids for physicians 39–40 determinants of, pharmaceutical pricing: cost of production 144; demand-supply conditions 145; desired proft margin 144; price control, government’s policy 144; pricing of competitors 144; product-life cycle (PLC) stage 145; purchasing capacity, consumers 144–145; R&D and innovation 145 develop brand strategy 196 digital strategy 203 digital technology 229–230; artifcial intelligence (AI) 230; augmented reality (AR) 231; Blockchain 231; internet of things (IoT) sensor integration 231; machine learning

Index

(ML) 230; mobile applications, digitize medicine 230–231; virtual reality (VR) 231 digital transformation 231–233; 3D printing, organs 236; accessibility and transparency, competition 237–238; artifcial intelligence (AI) 236; automated dispensing cabinets (ADCs) 235; bar codes identifcation 234–235; biochemical product development 238; concepts and meanings 237; connect name with face 240; convenience factor 241; conversational artifcial intelligence 239; electronic prescription (e-prescription) 234; engaging patients 237; hybrid experiences 239–240; importance of 245–250; management of medication therapy 235–236; marketing innovation 241; monitoring prescription drugs 235; Obalon balloon system 236–237; prioritize quality 241–242; response time 238; tailored solution, leveraging technology 241; targeted and personalized advertising 240; telecare 235; track vaccinations, administered pharmacists 234 direct selling 18 direct-to-consumer advertising (DTCA): cons of 172–173; features of 171–172; impact of 173; pros of 172; types of 172 direct-to-user (DTC) 3 discount parameter 170 discounts 170–171 diseases 87 distribution channels 82, 184; and importance, inventory control and management 158–160 distribution function: business-tobusiness (B2B) 173–174; directto-consumer advertising (DTCA) 171–173; factory-to-pharmacy (F2P), pharmaceutical supply chain 176–178; fundamentals of, retail and pharmacy chains 169–171; inventory control and management, channels and importance 158–160; issues and implications of channel confict 163–164; managing pharmaceutical channel conficts 165– 166; nature/causes of channel conficts 164–165; retail competition and ethics, pharmaceutical sales 166–168; role of 156–158; selection of, supply chain partner 161–163 distributor/stockists 177–178 diversifcation 126

261

Dolo 650 brand 60–61 drug product 2 drugs 87 dynamics of: branded drug marketing 69; companies profle, emerging markets (Indian Pharmaceutical Market) 53, 54–57; concepts of segmentation, targeting and positioning for pharmaceutical products 77–82, 79–80; customer relationship management (CRM), international pharmaceutical industry (IPI) 95–97; elements of global pharmaceutical industry (GPI) 50–51; evolution of Indian pharmaceutical industry 52; examples of over-thecounter (OTC) drugs 71; generic drugs marketing 68; global overthe-counter (OTC) drug market 70; growth markets context, case study 59–63; growth markets scenarios 53, 58–59; history of Indian 49–53; marketing of over-the-counter (OTC) drugs 69–70; patent war, international pharmaceutical market 63–67; patient motivation 73–77; pharmaceutical brand elements framework (PBEF) 81; pharmaceutical segmentation, targeting and positioning framework (PSTPF) 78; possible benefts and possible risks of over-the-counter (OTC) drugs 71; prescription (Rx) habit of physician 71–73; recruitment, selection, training and performance evaluation of medical representatives (MR) 82–88; sales force efectiveness (SFE), international pharmaceutical industry (IPI) 88–95; structure of global pharmaceutical industry (GPI) 48–49, 49 E economic factors 130 economy of scale 170 educate patients, handouts 75 education and advertising 73 electronic commerce (e-commerce) 176, 242–243 electronic-detailing (e-detailing) 227–228 electronic marketing (e-marketing) 228 electronic pharmacy (e-pharmacy) 243 electronic prescription (e-prescription) 234 electronic processes 21 electronic promotional (e-promotional) 3 embracing digital technology 87 emotional connect, consumers 38

262 Index

emphasizing patient ownership 76 encourages patients, seek professional consultation 172 endorsement 19 engage physicians, online community 38–39 engaging patients 237 environmental factors 131 environmental trends 208 ethical pharmaceuticals operations 186 ethical principles of marketing 167 evaluating customer requirements 245–246 exaggeration 168 explanation of, PESTEL framework 127, 129; economic factors 130; environmental factors 131; legal factors 131; political factors 129–130; social factors 130; technological factors 130–131 exploring opportunity 96 F FabiFlu, top-selling Pharma brand 61–62 factory-to-pharmacy (F2P) model 176, 176–177; active pharmaceutical ingredient (API)/bulk drug 176–177; clearing and forwarding agents (CFAs) 177; retail pharmacy/chemists 178; stockist/distributor 177–178 false comparisons of brands 168 feedback information 9 fnance 184–185 fnancing 8–9 focusing on priority products 186 focus timing 109 foreign direct investment (FDI) 217 Framework for patient motivation (FPM) 75 free samples distribution 36, 77 functions of, pharmaceutical marketing: buying and assembling 5–6; feedback information 9; fnancing 8–9; grading 7; packing and packaging 8; selling 6; storage 7; transportation 6–7 fundamentals of, pharmaceutical retail and pharmacy chains 169; disadvantages to small pharmaceutical retailers 170–171; organized pharma sector 169, 170; pharma chains advantages 170; unorganized pharma sector 169 future of, pharmaceutical brand management: 21st-century approach 206–207; 1980s and early

1990s 206; brand positioning, multidimensional vs. two-dimensional 207; challenges and opportunity 211–212; context of environmental information 207–208; development of customized tracking systems 209–211; expansion of processes and organizations 208; parameters, sustainable competitive advantage 212–213; tracking environmental and integrating information 208; tracking performance, traditional syndication data 209–211 G gap analysis 114, 116; examples 117; fshbone diagram 116; root cause, fshbone diagram 116 generation of, new product ideas 108 generic drug and pricing 149–150 generic drug market 67–68 Glaxo Smith Kline (GSK) 28 Glenmark Pharmaceuticals Limited 61–62 global context price war: generic drug and pricing of generic drug 149–150; implications and impact 151–152; onemolecule, one-price policy (OMOP) 150; study 150 global over-the-counter (OTC) drug market 70; benefts and risks of 71; examples of 71 global pharmaceutical industry (GPI) 33; beneft of 34; competitive landscape 119–123; see also Porter’s fve forces analysis; current trends and opportunity 238–241; elements of 50–51; emphasis areas 34; quality healthcare delivery 33–34; R&D and innovation 34–35; robotic technology and artifcial intelligence (AI) 33; structure of 48–49, 49; transformation 33 The Global Productivity Index (GPI) 48 goal setting 93, 166 golden goose for micro labs, Covid-19 60–61 grading 7 growth 112 growth markets context: AIDS drugs supply, low cost in Africa 59–60; brand acquisition, Indian Pharma business 63; celebrity endorsement, pharma branding 62–63; FabiFlu, top-selling pharma brand 61–62; golden goose for

Index

micro labs, Covid-19 60–61; see also individual entries guerrilla marketing, breaks rules 37 H handling objections 87 healthcare providers (HCPs) 182, 184–185; call frequency 93; patient motivation 74–76 health information online 3 help-seeking advertisements 172 high cost drugs 73 high curing efect, habitual/non-habitual choice 73 Hofmann-La Roche 25 home delivery services 170 hybrid experiences 239–240 I identify, organization’s business goals 161–162; access, database and transparency 162–163; certifcations of the organization’s supply chain partners 162; defning the selection criteria 162; mutual understanding between the organization and its supply chain partner 162; providing comprehensive transportation and warehousing services 163; scalability 163; stability of the fnancial system 162 identifying diferentiation 197 identifying small steps 76 identifying the target audience 196–197 importance of, digital transformation 245; analytics and data management 247; bioprinting process 248–249; computing, artifcial intelligence (AI) 246–247; evaluating customer requirements 245–246; integration of wearable technology 247; medical precision 248; monitoring performance of products 246; provide customers, information 245; reach customers, government restrictions 245; realworld data (RWD) 249–250; in silico testing 249; single use processes 247–248 importance of, pharmaceutical marketing: authorization power 9; purchasing habit 9–10; spreading awareness of disease 10–11; supply chain management (SCM) 11; transfer of information 12 incentive schemes 93 increase, market share and profts 170

263

Indian pharmaceutical industry (IPI): evolution of 52; statistics 58–59; see also Indian Pharmaceutical Market Indian Pharmaceutical Market 58–59; companies profle, emerging markets 53, 54–57; history of 49, 52–53 individual assessment 117 infuence international pharmaceutical marketing 183 information technology (IT) integration 251 innovative approach 202 innovative marketing solution 96 Insights of Pharmaceutical Marketing Framework (IoPMF) 105 in silico testing 249 integrating marketing communications (IMC) 202 integration of wearable technology 247 internal buy-in 202 international pharmaceutical industry (IPI) 156, 231–233; customer relationship management (CRM) 95–97; digital transformation 234–238; importance of digital transformation 245–250; sales force efectiveness (SFE) 88–95; technology curve 244–245 international pharmaceutical market (IPM) 22; cost of R&D, pharmaceutical sector 65; defnition of patent 63–64; impact of, international pharmaceutical industry (IPI) 65–66; patents importance, pharmaceutical industry 64–65; study 66–67 international pharmaceutical marketing: current trends and opportunity, digital transformation 238–242; digital technology role 229–231; digital transformation 231–238; healthcare technology challenges 250–251; importance of digital transformation 245–250; modern technology impact 227–229; role of electronic commerce (e-commerce) 242–243; supply chain ecosystem 159; technology curve 244–245 internet of things (IoT) sensor integration 231 inventory control and management 158; clearing and forwarding agents (CFAs) 159; stockists 159–160 issues and implications, channel confict 163; horizontal level 164; multiple channels 164; types of 164; vertical level 163

264 Index

J J.B. Chemicals & Pharmaceuticals 63 Johnson & Johnson ( J&J) 25 L lack of verifcation 168 legal factors 131 leveraging brand assets, enable growth 203 lifestyle change 208 losses, expiry of medicines 170 M machine learning (ML) 230 management of medication therapy 235–236 management of re-launching, pharmaceutical product 110–111 management sales 184 managing pharmaceutical channel conficts 165; council of dealers/ association 165–166; goals of supreme importance 166; mediation and arbitration 166; transparency communication 165 managing regulatory norms and compliances 97 Mankind Pharma 62–63 market analysis 219 market development 125–126 marketing branded drug 69 marketing concept 3 marketing generic drugs 68 marketing innovation 241 marketing mix integration functions 187 marketing of over-the-counter (OTC) drugs 69–70 marketing research interface: diferent areas of 218–222, 219; justifcation, physicians prescription (Rx) behaviour 222–223; objectives 217–218; see also pharmaceutical market research market penetration 124–125 market segmentation 92 maturity stage 112–113 mediation and arbitration 166 medical gifts and inducements 185 medical precision 248 medical representatives (MR) 82–84; customer coverage 85; market intelligence 85–86; new role 228; performance evaluation 87–88, 89–91; prescription (Rx) generation 85; qualifcations and training required

187–188; recruitment and selection 84–86; responsibility 83–84, 188; roles and responsibility 187; skills required 188; training of 86–87 medical sales managers: roles and responsibility 188–190; skill sets required 189 Merck & Co. 27–28 mobile applications, digitize medicine 230–231 modern era promotion 185–186 modern technology: e-detailing (electronic detailing) 227–228; electronic marketing (e-marketing) opportunity 228; new role, medical representatives (MRs) 228; pharmaceutical companies benefts 228–229 monitoring performance of products 246 monitoring prescription drugs 235 multiple phases, pharmaceutical brand management process: phase 1: develop a brand strategy 196; phase 2: conduct an internal review 196; phase 3: identifying the target audience 196–197; phase 4: researching target audiences 197; phase 5: identifying diferentiation 197; phase 6: statement of brand positioning 197; phase 7: tailoring message to diferent audiences 198; phase 8: tailoring complex brand situations 198; phase 9: brand identity 198; phase 10: brand style and voice guidelines 199; phase 11: creative contents 199; phase 12: brand tools 199; phase 13: brand launch 200; phase 14: building the brand 200 mutual understanding, organization and supply chain partner 162 N nature/causes of channel conficts 164; ambiguity in role 165; diferent perceptions, market 165; incompatibility between goals 164; magnitude of confict 165 new entrants threat 122 new product development (NPD) 221– 222; management 109–110; planning process 107–108 new product launch 109, 117 new role, medical representatives (MRs) 228 Novartis 27

Index

O Obalon balloon system 236–237 objectives of, pharmaceutical pricing 142–143; proft 143; sales related 143–144 obstacles elimination 76 one-molecule, one-price policy (OMOP) 150 organs 3D printing 236 overemphasize efcacy/underemphasize, side efects of drugs 173 over-the-counter (OTC) drugs: benefts and risks of 71; examples of 71; global market 70; marketing of 69–70 P packaging products 8, 184, 187 panic consumers 172 passing advantages, patients and consumers 170 patent war, international pharmaceutical market 63–67 patient feedback collection 77 patient motivation 73–74; healthcare providers (HCPs) 74–76; pharmaceutical marketers 76–77 patient needs assessment 218 peer infuence of physicians 73 penetration pricing 16 Performance evaluation of medical representatives framework (PEMRF) 88 personal factors 107 PESTEL analysis 126–127, 128; advantages and disadvantages 129; framework explanation 127–131, 129; see also explanation of, PESTEL framework; steps to 127 Pfzer 25–26 pharmaceutical brand communication: barriers of 200–203; benefts of 195– 196; multiple phases of, management process 196–200; process of 194–195 pharmaceutical brand elements framework (PBEF) 81 pharmaceutical branding vs. packaging 78–81 pharmaceutical brand management: emotional marketing 203–205; future of, challenges and opportunity 206– 213; good healthcare system 205–206 pharmaceutical business identify, organization’s business goals 161–163 pharmaceutical companies benefts 228–229

265

pharmaceutical healthcare technology 250; cyber security threats 250; information technology (IT) integration 251; supply chain integrity 250–251; technological advancements 251 pharmaceutical market behaviour 106; developing marketing campaigns, consumer behaviour 106–107; understanding patient behaviour 106 pharmaceutical marketing: concept of 7P’s 12–22; contemporary practices, growth markets 35–42; corporate social responsibility (CSR) 4; evolution of 2–4; functions of 5–9; Global Pharmaceutical Industry (GPI) 33–35; healthcare providers (HCPs) 4; history of 1–2; impact of CSR, emphasis R&D 30–33; importance of 9–12; vs. marketing 12; objectives of 4–5; profle of, reputed global pharmaceutical companies 22–30; promotional activitiy 4; research and development (R&D) 4; and selling 12, 13–14; strategy 115; worldwide revenue facts 22; see also individual entries pharmaceutical market research 218; competitors analysis 219–220; market analysis 219; new product development (NPD) 221–222; patient needs assessment 218; promotional tools analysis 220–221; regulatory concerns and compliance 220; research and development (R&D) 221–222; segmentation need 221; shareholders update 220 pharmaceutical packaging 81–82 pharmaceutical pricing: determinants of 144–145; generic drugs, global context 149–152; importance of 142; meaning of 141; methods and strategy 145–149; objectives of 142–144 pharmaceutical product management 191 pharmaceutical product promotion: barriers of pharmaceutical brand communication 200–203; communication of pharmaceutical brands, processes and barriers 194–200; competitive analysis strategy 186–187; factors 183; future of pharmaceutical brand management 206–213; meaning 182; medical representatives and managers, roles and responsibility 187–190; methods of 183–184;

266 Index

modern era promotion 185–186; modern technology impact 227–229; objectives 182–183; pharmaceutical brand management 203–206; roles, responsibility and parameter of, product manager 190–194; scope for 184–185 pharmaceutical product supply 242; electronic commerce (e-commerce) 242–243; e-pharmacy (electronic pharmacy) 243; factory-to-pharmacy (F2P) 176–178; growth 243 pharmacological equipment 251, 252–253, 254 planning future needs 96 political factors 129–130 Porter, Michael E. 119–123 Porter’s fve forces analysis 119, 120, 122; competitive rivalry 123; customers bargaining power 123; examples of 121; new entrants threat 122; substitute threat 122; suppliers bargaining power 123 positioning 77, 80, 201 prescription decision of the healthcare providers framework (PDHCPF) 223 prescription (Rx) habit of physician 71–72; afecting factors 72–73, 74 price control, government’s policy 144 price of pharmaceutical products 186–187 price skimming 16 price war, global context: generic drug and pricing of generic drug 149–150; implications and impact 151–152; one-molecule, one-price policy (OMOP) 150; study 150 pricing methods and strategy 145–146, 146; competitor-based pricing 148–149; cost-oriented pricing 146; customer-based pricing 147–148 pricing of competitors 144 pricing strategy 184 prioritize quality 241–242 product claim advertisements 172 product concept development 108 product development 108, 125 product evaluation 117 production concept 2 production cost 144 productivity 117 product life cycle (PLC) 111, 111; aligning pharmaceutical brand management 113–114; decline 113; growth 112; introduction 112; maturity stage 112–113; pharmaceutical marketing strategy 115; stage 145

product manager 190; defning product releases 191; features 192; parameters of 192; prioritize ideas 191–192; responsibility of 192–194; vision and strategy 190–191 product planning and development 184 profle of, reputed global pharmaceutical company 22–25; Abbott Laboratories 30; AbbVie 29–30; Bayer 26–27; Glaxo Smith Kline (GSK) 28; Hofmann-La Roche 25; Johnson & Johnson ( J&J) 25; Merck & Co. 27–28; Novartis 27; Pfzer 25–26; Sanof 28–29 promotes use of medications 173 promotional tools analysis 220–221 provide customers, information 245 providing comprehensive transportation and warehousing services 163 providing homework 75–76 providing quality information 186 psychological factors 107 psychological pricing 16 psychology changes 208 purchasing capacity, consumers 144–145 purchasing habit 9–10 Q quality website content 37 R raises awareness, medical conditions 172 reach customers, government restrictions 245 real-world data (RWD) 249–250 real-world evidence (RWE) 249 recruiting methods 93 recruitment and selection, medical representatives (MR) 84; required skills 84; role and responsibility 84–86 regulatory concerns and compliance 220 relationship clients 185 reminder advertisements 172 research and development (R&D) 32, 64–65; impact of CSR activity 30–33; and innovation 145; and new product development (NPD) 221–222; rising cost of 65 research and request, pharmaceutical company 73 researching target audiences 197 reshaping global pharmaceutical marketing 229–231 response time 238 responsibility areas, medical representatives (MR) 83–84

Index

retail competition and ethics, pharmaceutical sales 166; advertisement using surrogates 167–168; children’s exploitation 168; ethical principles of marketing 167; exaggeration 168; false comparisons of brands 168; lack of verifcation 168; sales and marketing ethics 167; stereotypes of sexism 168; subjectivity 168; unethical forms of advertising 167 retailer 18 retailing pharma/generic brands, competitors’ brands 170 retail pharmacy/chemists 178 role and responsibility, medical representatives (MR): customer coverage 85; market intelligence 85–86; prescription (Rx) generation 85 role of distribution 156; management of stock-keeping units (SKUs) 157; nature of 157; service to patient fraternity 158; supply chain process, paradigm shift and credit period 157–158 S sales and marketing ethics 167 sales concept 2–3 sales force efectiveness (SFE) 88, 92; drivers of 92–94; future of 94–95 sales force efectiveness metrics framework (SFEMF) 92 sales force size 93 sales incentive programmes 185 sales oriented pricing objectives 143; growth 143; increase market share 144; targeted market share 143 sales performance 117 sales process 87 sales promotion 185 samples 185 Sanof 28–29 scalability 163 scheduling frequent follow-ups 76 screening ideas 108 search engine optimization (SEO) 42 segmentation 77, 79, 221 selection criteria 162 selection of supply chain partner 161–163 selling 6, 185 shareholders update 220 showing care and concern 76 simplifcation 75 single use processes 247–248 small geographic area 170 small medical stores 170

267

social factors 107, 130 social media presence 35 spreading awareness of disease 10–11 stability of the fnancial system 162 statement of brand positioning 197 stay connected 76 stereotypes of sexism 168 stockists 159–160, 177–178; chemists/ retailers 160; and druggists association 160; institutional supply 160; logistics providers 160; retail pharmacy chains 160; sub-stockists 159 storage 7 strategic advantages: aligning pharmaceutical brand management, product life cycle (PLC) 113–114; Ansof’s matrix 124–126; competitive landscape, global pharmaceutical industry 119–123; gap analysis 114–117; identifcation of 104–106; management of re-launching, pharmaceutical product 110–111; new pharmaceutical product management 109–110; new pharmaceutical product planning and development process 107–108; PESTEL analysis 126–131; product life cycle (PLC) 111–113; SWOT analysis 117–119; understanding pharmaceutical market behaviour 106–107; VRIO analysis 132–137 study of consumer needs 184 subjectivity 168 substitute threat 122 suppliers bargaining power 123 supply chain ecosystem, international pharmaceutical marketing 159 supply chain integrity 250–251 supply chain management (SCM) 11 supply management 117 surrogates advertisement 167–168 SWOT analysis 117–118, 118; examples of 119, 119; explanation of 118; internal vs. external analysis 120; to perform 119; takeaways 118 T tailored solution, leveraging technology 241 tailoring complex brand situations 198 tailoring message to diferent audiences 198 targeted and personalized advertising 240 targeting 77, 80 targeting/location 201 technological advancements 251

268 Index

technological factors 130–131 technological processes 21 technology curve 244–245 technology driven 170 technology utilization 36–37 telecare 235 telemarketing and internet marketing 21 territory design 93 test marketing 108 timing 201 track vaccinations, administered pharmacists 234 training 94 transfer of information 12 transparency communication 165 transportation 6–7 U understanding pharmaceutical market behaviour 106–107 unethical forms of advertising 167

V value proposition 93 variety of promotional expenses 187 virtual reality (VR) 231, 242 VRIO analysis 132; cost of imitation 136; evaluation of company resources 132; forms of imitation 136; model 133, 133–134; question of imitability 135; question of organization 136–137; question of rarity 135; question of value 134–135; steps to 132–133 VRIO Model 133, 133–134 W wholesaler 18 wide range of pharmaceutical professionals 20 winding up of medical shops 170 workshop hosting 75