3. What Is A Segment
A customer group having
Similar buying needs
And/or
Similar reactions to what product
offers
4. Useful Ways To Segment Markets
Geographically
Regions, cities, urban/rural
Demographically
Age, sex, income group, occupation, educational level
Disease
Type, severity, acute, chronic recurrent
Doctor
Specialty, place of practice, age group affiliation,
educational background
5. How To Segment
Example
Patients of all ages suffering from acute URTI
6. Why Segment
Identifies target group, customer needs
Efficient way of using scarce resources
Creates strong product image to offset
competition
7. A Segment Must Be
Measurable: Potential + Results
Accessible: Via promotion resources, cost effective
Substantial: Large enough Financial Objectives)
Homogenous: Customers with sufficiently similar needs
11. Market Analysis
Qualitative questions
Structure of the market
Competitiveness (fragmented vs concentrated)
Price sensitivity
Market needs
Any unmet needs/opportunities
Competitors
Current/new
Opportunities & threats
12. Product Positioning
What are the
NEEDS of
my customer
WHAT
BENEFITS/COMPETITIVE
EDGE
Does my product have?
WHAT product
FEATURES
substantiate
these claims
13. Product Positioning Analysis
Examples of product attributes for positioning and
mapping
Dosage versus convenience
Price versus severity of medical conditions
Price versus dosage regimen
Efficacy versus safety
Side-effect profile versus efficacy
Duration of action versus onset of action
14. Product Positioning Analysis
Applications
New product launches
When market share is threatened
Changing population of market segment
Changing market needs
15. Product Positioning Analysis
Product positioning must be reviewed
periodically, at its different life cycle
Comparative positions of products
must be the result of MR findings, not
the perceptions of PMs
17. Product Profile Checklist
Product profile
Main indications
Main side effects
Contra-Indications
Major Advantages
Major Disadvantages
Average Daily dose
Presentation
Target doctors
18. INFORMATION REGARDING THE MAIN COMPETING PRODUCTS
PRODUCT CHARACTERISTICS
Active ingredient(s)
Main Indications
Main Side Effects
Contra-Indications
Major Advantages
Major Disadvantages
Best Selling Pack Sizes
Average Daily Dose
Cost of Average Daily Dose
Sales in $ (’000)
Market Share
Sales Trend (3 yrs)
Product Profile Checklist
19. SWOT Analysis
A technique combining all elements to arrive at a
strategy, tactics and objectives
Strengths
Weakness
Of your company
(or product)
Opportunities
Threats
In the
market/
environment
20. SWOT Analysis
Strengths
Good side-effect profile
Good efficacy
Good local and international trail program
Support from HQ
New chemical entity
Variety of presentations
21. SWOT Analysis
Weakness
Company has limited experience here
Limited comparative data
Seen more as a tranquilizer than as antiemetic
Limited resources
22. SWOT Analysis
Opportunities
Medics aware of benzodiazepine problem
Market decline halted in tranq. Segment
Premium price acceptable in tranq. Market
Future product development
Vale growth
24. Opportunities & Threats
From OUTSIDE
Market segment
Environment
Few competitors
From INSIDE
Company
Products
25. Opportunities & Threats
Market segment
High growth rate
High level of customer interest
Large segment size
High degree of acceptance
High-untapped patients
Low level of price sensitivity
27. Opportunities & Threats
Few competitors
No new products
Weak sales team
Poor marketing skills
Little promotional activity
Poor promotional mix
Large product range
Poor company image
28. Opportunities & Threats
Company
Excellent image
Large size
Adequate promotion budgets
Good R & D products
Effective sales force
Well-trained sales force
Good management/employee rapport
Excellent customer service
Excellent distribution
29. Opportunities & Threats
Products
Very reliable
Highly efficacy
Highly acceptable by opinion leaders
Convenient packaging
Convenient dosaging
Acceptable taste
Minimal side effects
High market share
Acceptable pricing
30. Definitions Of Terms Used
Concepts Contents
What you need to be achieve, which must be:
- Timed
- Measurable
- Desirable
- Realistic
How you intended to achieve your objective:
- Target audience
- Key product features/ benefits you will stress
- The segment you will attack
Actions will take or the methods you will use to achieve the
strategy, i.e. promotion policy
Strategies
Road
Objectives
Destination
Tactics
Vehicle
31. Market Penetration Strategy
Increase sales & market share in existing segment with
existing product
Examples of tactics
Doubling call frequency on A-class doctors
More A.V. meetings with specialists
Goods on consignment to pharmacies
32. Market Development Strategy
Increase sales in new markets with existing products
Examples of tactics
Promote to another group (specialists to GPs)
Promote new indications to reach different group of patients
OTC to Rx Switch
Rx to OTC Switch
33. Product Development Strategy
Introducing new or improved products, line extension to an
existing market segment.
Examples of tactics
Develop new product features to offer new benefits or
minimize/ eradicate existing product problems
Create high quality version of existing product
Modifying pack sizes
34. Diversification
Entering new market with a completely new product
Examples of tactics
New product in a new therapeutic class area
New product line in a related or non-pharma industry
35. Strategy Approach
Undifferentiated Marketing
Going after large part of market to get at as many
prescribes for as many patients as possible
Concentrated Marketing
Going after one party of segment alone
Differentiated Marketing
Going after several defined markets, with tailored
versions for each segment
36. Product Strategy Statement
A product strategy statement gives a precise direction as to
how you will achieve your objectives
3 questions to ask
To concentrate on the URTI market
amongst patients of all ages
Market segment
Which segment?
Statement
Dosage convenience and efficacy
All general practitioners
Product position
Which product position?
Target market
Which target?
37. What Is The Objective Of Promotion
Objective 1
To change the attitudes of target
audience from non-usage to repeated
usage
Objective 2
To generate increased profitable sales
38. Promotion Methods
Sales presentation
Media mix
Journal advertising
Brochures
In-house journals
Direct mail
Symposia
Clinical trials
‘Seeding’ trials
Exhibition
Public/professional services
Others
40. Sales Presentation
Disadvantages
A high-cost element; fixed cost too
A limited resource
Not always readily available
Slow: Restricted access of targets and physical
ability to meet
‘Selling message’ may be inconsistent
41. Sales Presentation
Basic questions to ask before using the sales force
Is material supportive to the personal presentation
Is the message logical, manageable and suitable
Is sales technique well understood and used
Is product knowledge good
42. Sales Presentation
Comments
Concentrate on a message which meet objectives
Concentrate on neutralizing weakness, reinforcing
strengths
Sales force be trained in usage, objection handling
and closing
Material flexible to meet different situations
44. Promotion Material
Disadvantages
If not practical and well designed, it is very
costly
If it is not seen as practical, it will not be used
It has no effect without personal interpretation
45. Promotion Material
Basic questions to ask before using
Does the material support the promotion objective
It is absolutely necessary
Is it too much, too little, too many or too few
Will the sales person use it; does it help or hinder him
Will it have a positive impact on the target audience
46. The Buying Process
Unawareness
Existence of product
Awareness
Succinct summary
Interest
Phase of reasoning
Evaluation
Clinical Trails
Trial
Opportunities to use
Usage
Reminders
Repeat Usage
47. Promotion
SALES TO PHARMACY/HOSPITAL
Less wholesalers margin (@ 9%)
SALES TO WHOLESALERS
Less sales tax (@ 9% of 3)
NET SALES EX MANUFACTURER
Less production costs (@ 20%)
GROSS PROFIT
Less selling expenses (field force cost)
Less marketing expenses (field force cost)
Samples, Advertising, Mailings, Reps. Detailing aids/literature,
Gifts Congresses, exhibits, symposia, Doctor meetings,
Audio visual/films, Market research
Less administrative overheads (@ 16% of net sales ex manufacturer)
NET PROFIT (OR LOSS) BEFORE TAX % of net sales
CUMULATIVE PROFIT BEFORE TAX
48. Executive Summery
Key features
Environmental, Market Situation, Product review
Product objectives
Financial/Marketing, Short term/Long Term
Product strategy
Segment, Position, Target Market, Product Priorities, Tactics
Promotion
Strategy, Mix, Spending
Specific Market Opportunities, Threats and Trends
Overall Profits
Key Actions
Repackaging/Hire new team/Monitor generic law