PRODUCT MIX,

DECISIONS &
STRATEGIES
UNIT V
OBJECTIVES:

At the end of the lesson learners are able

to:

• Explain and identify the terminologies

related to product mix.

• List down the products according to

product line length and product mix
width.

• Illustrate the product life cycle.

QUESTION
• WHAT IS A PRODUCT?
PRODUCT
• In marketing, a product is an object, or system,
or service made available for consumer use as
of the consumer demand;
• it is anything that can be offered to a market to
satisfy the desire or need of a customer.
• Is anything that can be offered to the market
for attention, acquisition, use, or consumption
that might satisfy and delight the needs and
wants of the target clientele.
Product
Planners

• Also called:

• brand associates

• brandmen

• and product managers

Three Levels of a Product

CORE ACTUAL AUGMENTED

• Most basic in levels. • Product is the tangible, physical • product is the non-physical part of
• product is NOT the tangible physical product the product.
product. You can't touch it. That's • It usually consists of lots of added
because the core product is the value, for which you may or may not
BENEFIT of the product that makes pay a premium.
it valuable to you.
Product Formats
• All drug products that are available in
both traditional and nontraditional
markets and manufactured by either
the local or multinational drug
companies
Brand or Generic Name
Decisions
Brand
• is a name, term, sign, symbol,
design or combination of
these, intended to identify the
goods or services one seller or
group of sellers and to
differentiate them from other
competitors

Brand Name
• part of brand that can be
vocalized- is utterable
Brand Mark

• a part of a brand which can be

recognized but is not utterable such as
symbol, design or distinctive coloring or
lettering

Trademark

brand or a part of brand that is given for its

legal protection

Copyright

exclusive legal right to reproduce, publish

and sell the matter and form of literary,
musical or artistic work
Brand mark examples
Elements that may be protected by trademarks include but
are not limited to:
• Brand names.
• Product names.
• Logos and symbols.
• Slogans.
• Colors, such as Tiffany & Co.'s “Tiffany Blue,” or the “Barbie Pink” trademarked by Mattel.
• Product shapes, like the Coca-Cola bottle.
• Sounds, like NBC's three-tone chime.
Trademark VS Copyright

Copyrights primarily protect the rights of people who create Trademarks can protect the use of a company's name and its
literary, dramatic, musical, artistic, and certain other original product names, brand identity (like logos), and slogans.
works (like history tests, and software code).
Blanket Family Name
Blanket family name

• Policy that are followed by many drug companies.

• Family branding, in its essence, is a branding &

marketing strategy where multiple products are
promoted and sold under one brand name.

REASON

• Cost of introducing the drug product will be less

because there is a brand name already widely
recognized, accepted and preferred by target
consumers, hence no need to spend readily on
advertising and other promotional activities
Blanket family
name

Example

• is the enervon family

comprising of enervon c
tablets, enervon c drops and
enervon c liquid

• that gets instant recognition

because of the popularity of
the brand name enervon.
Brand extension
decision
• Is any effort to use a successful brand name to
launch new or modified products.

Example:
• neozep tablets, neozep syrup, neozep otic,
neozep nasal spray, neozep medicated cod
rub. It used the strength of neozep, popularly
known as "cold specialist" and the brand
extension saves the company the high cost of
promoting new brand names for the products.
 Multibranding decision

In this strategy, the

seller develops two category or the
or more brands in same generic
the same drug equivalents.
product
 Very few consumers of
More shelf space at a drug product are that
the selling area of drug loyal to a brand they
outlets. will not try to another
company.

Advantages:
Multibranding strategy
Creating new brands
positions brand on
develop healthy
different benefits and
competition within the
appeals and each
manufacturers’
brand can attract a
organization
separate following
comprising several
when positioned in
product division or
several target market
subsidiary companies.
segments.
Packaging
Decision

• Packaging a marketing
activity of creatively
designing and producing the
container for a drug product
suitable to target markets
relative to competitions
product.
• Should fulfil six functions:
unique, functional, safe, easy
to remove, promote product
benefits and reinforce the
brand.
Primary package
• is the products immediate
container.
Secondary package
• the packaging material that
protects the primary package and
that is thrown away when the drug
product is about to be used by the
target clientele,
Shipping package

• used primarily to store,

identify, and ship the product
to target markets,

• Labeling is part of product

packaging and consist of
printed information appearing
on or within the package in
accordance with FDA
Labeling Guidelines.
• FDA regulations require that
all medication labels include:

Name of Product. Table of Drug

Facts. Active Ingredients.
Proper Use and Purpose.
Packaging is highly important and valuable
marketing tool for drug products.

MANY OF THESE RX FDA ADMITTEDLY

PRODUCTS ARE EITHER LACKS MONITORING
ETHICAL-OTC, SEMI- TEAMS TO GO AROUND
OTC OR OTC THE THOUSANDS OF
CLASSIFIED ALREADY DRUGSTORES ALL OVER
BY THE CONSUMERS THERE COUNTRY ON
THEMSELVES WHO REGULAR BASIS.
FREQUENTLY BUY THE
PRODUCT AND SINCE
THERE ARE NO
COMPLAINTS OR
REPRIMAND
WHATSOEVER FROM
THE FDA INSPECTORS
THE HABITS BECOME
ACCEPTED PRACTICE IN
THE DRUG INDUSTRY.
Presently, drug products either generic or branded,
OTC or ethical oriented consider several different
package designs for new and existing product lines,
selecting the best-balanced choice:
a. That will satisfactorily cater to the needs of drug
outlets in terms of convenience and ease of handling

b. That end users will favorably respond to at short

notice

c. Physicians and dentists to prescribe with higher

confidence
d. Pharmacist and allied professionals will readily endorse out of a high-qualityy perception of
the drug product

e. That will generate greater products awareness, immediate trials and repeat purchases
associated with the distinct and unique power of good innovative packaging
PRODUCT LINE DECISION
Philip Kotler:

“Product line is a group of

products that are closely
related because they function
in a similar way, are sold to
same customer groups, are
marketed through the same
type of outlets, or fall within
given price range.” Thus,
product line is the group of
similar products.
A product line, according to Kotler, is a group of products
that are closely related, either because they are:

function in a similar manner;

are sold to the same customer groups;

are marketed through the same types of outlets;

fall within given price ranges.

PRODUCT MIX DECISIONS

• AKA: Product mix or product assortment

• is the set of all product lines and items that a particular seller offers for sale
to buyers.

Example:
o Products classified as soft drinks are Coca-Cola, Fanta, Sprite, Diet Coke, Coke Zero, and
products classified as Minute Maid juice are Guava, Orange, Mango, and Mixed Fruit.
o The product (mix) consistency of Coca-Cola would be high, as all products within the
product line fall under beverage.
Product Line

• A group of related products all marketed under a single brand name that is sold by the
same company
• Companies sell multiple product lines under their various brand names, seeking to
distinguish them from each other for better usability for consumers
Product Width

• The width of a product mix refers to the total number of product lines a business has.

Example:
Nescafe coffee has different flavors
A cereal company has a product line for hot and cold cereal snacks (width: 3 since it has
3 product lines)
Pharmaceutical Product Life
Cycle Strategies
Characteristics:
INTRODUCTORY STAGE

• Is a period of very low sales performance

during the first few months to one year or
more after being formally introduced into the
market depending on the degree of awareness
level acceptance, and actual product trials.
• Profits tend to be negative or at least break-
even from one to two years because of the low
sale outputs, low production, high promotional
costs, and other marketing-related expenses.
GROWTH STAGE
• A period of increasing sales
and profit performance
because the new drug
product has entered the
growth stage.
• It has also tremendously
gained wide acceptance,
patronage, and repeat sales
in bigger volumes from either
the present or new markets
being served.
Drug companies still pursue an
investment-spending strategy for the
product that has reached the growth
stage for several reasons such as:

• To preempt entry of similar

competing products.
• To maintain or strengthen its
market growth and share in the on
the specified market segment
thereby marking it doubly difficult
for competition to come in or
dislodged the product.
The major strategies employed by drug companies to sustain
its rapid market growth in the target market segment are as
follows:
Entering completely new markets, new segments, expanded distribution channels,
more incentives for trade outlets to carry and endorse the product to clients.

Lowering prices to previous levels in order to allow more buyers to shy away from
competitor's products and increase frequency of usage.

More aggressive and proactive promotions efforts.

Fine-turning product's position in the market or repositioning competitor's products

in the minds of target consumers.

Additional logistics support to fight head-on and cripple emerging products of

competition.
 Well-balanced marketing mixes
Drug companies
protect their
existing market
positions from
Tactical and strategic marketing
inroads of programs
competition by
way of:
By periodically conducting marketing
intelligence and marketing research to
adjust the fast-changing needs and
wants of targeting markets.
• MATURITY STAGE
• A period characterized by the slowing
down of the product's sales volume
reaching a plateau or remaining at
constant volumes which may be
attributed to many similar products
competing in the same market segment
or significant competitor's activities
pouring in heavy investment-spending to
gain control of the desired market
segment at all costs
STRATEGIES FOR THE
DRUG PRODUCTS:
MATURITY STAGE
A. Roll-back of prices by way of additional
discounts, offering of product deals in the form
of free goods, additional allowances or
subsidies, and other amenities to encourage
trade outlets to support the product in terms of
stock availability, endorsements to end-users,
and continuing reorders at frequent intervals.

B. Increase advertising and other promotions

support for the product.
C. Periodically modify the market, the product and overall marketing mix, to
closely jibe with the fast-changing trends in marketplace, by means of:

Looking for new ways to increase product usage among existing

customers.

Looking for new users and market segments

Repositioning the brand to appeal to a larger or faster-growing segment

improving the attractiveness of the product by means of a new look in

packaging

Adding improvements to expand the product's usefulness, safety or

convenience

Implementing quality improvement towards increasing the performance of

the product

Offering new or improved services to valued clients

DECLINE STAGE

a period characterized by
continuous drops in sales of
most product formats and
brand, at a low level for many
years
 STRATEGIES FORDRUG PRODUCTS:
DECLINE STAGE
a) When sales and profits continue to decline, companies immediately withdraw from the
market, phase-out the product to avoid further loses in certain geographical areas or
nationwide.
b) Reduce the number of product offerings, concentrate on potential formats, sizes and
supply
c) Discontinue operations in smaller market segments and marginal trade channels.
d) Reduce promotions and overall marketing efforts and promptly rechanneling
resources to drug products either in the introductory or growth stage.
e) Replace weak products with similar or related generic names or an improved version
under a new brand name and new positioning scheme.
f) Sell drug product to another company or simply liquidate it at salvage value.
Classifying the products in accordance
to product life cycle serves to
accomplish the following:
I. Identifying products and related lines
that are continuously generating sales
for the period of product review
II. Determine allocation of resources on
products with potentials for growth

III. Match or pinpoint direct competitors

products for market growth and market
share leadership
Product Life Cycle Characteristics:
Product Life Cycle RESPONSES
Activity #1: Develop
your Company
Product/Marketing
Mix
PHARM AD 2
UNIT VI.
PRICE MIX, DECISIONS, AND STRATEGIES
OBJECTIVES

DEMONSTRATE DEMONSTRATE UNDERSTANDING ON PRODUCT MIX, DECISIONS AND STRATEGIES APPLIED IN PHARMACEUTICAL
MARKETING.

DISCUSS DISCUSS THE ROLE OF PRICING TOWARDS THE EARLY REALIZATION OF PROFITS FOR THE FIRM.

ENUMERATE ENUMERATE THE EXTERNAL AND INTERNAL FACTORS THAT AFFECT PRICING DECISIONS FOR PHARMACEUTICAL
PRODUCTS.

ANALYZE ANALYZE DETERMINANTS OF PRICING DRUG PRODUCTS.

•“A good salesman DOES NOT
SELL goods. He sells
__________”
•“A good salesman DOES NOT
SELL goods. He sells
CUSTOMER-SATISFACTION”
PRODUCT DIFFERENTIATION
Use different packaging, colouring, etc. and by emphasizing different benefits or
advantages in their promotion.
PRODUCT
POSITIONING
• A manufacturer can use the need-oriented
segmentation.

• Thus positioning is used for bringing about

differentiation in a manufacturer's product.
A Product Line
• It is a part of the product strategy
to determine whether an organization
will have a single product or more than
one product.
Also referred to as a:

PRODUCT ASSORTMENT
or
PRODUCT PORTFOLIO
“The total number of product lines
and individual products or services
offered by a company”
Product line: refers to a product category or brand
marketed by a company.

Product mix: total number of product lines and

individual products or services offered by
a company.
Product line: refers to a product category or brand
marketed
PRODUCTby a MIX
company.

Product mix: total number of product lines and

individual products or services offered by
a company.
• In the overall product mix decision, a firm needs to consider the
product lines’:

BREADTH DEPTH LENGTH CONSISTENCY

PRODUCT LINE BREADTH

Refers to how
many (or how
broad) is the
range of
products
offered by the
firm
PRODUCT LINE LENGTH

Refers to how
many different
types of
products are
included in the
product line.
PRODUCT LINE DEPTH

Refers to the
number of
products they
offer which are
variations of
the product.
PRODUCT LINE CONSISTENCY

Refers to how
similar –
particularly in
relation to the
overall
positioning – the
set of products
under the
product line are.
The overall product mix offering tends to be quite a strategic one as it
pushes or restricts the brand/firm into competing in different parts of
the marketplace. A fairly limited range of a product mix means that the
brand is often more of a niche player.

Firms of a very large product mix tend to compete in most areas of the
marketplace and compete against a much broader range of
competitors as a result.
A product mix strategy has FOUR DIMENSIONS:

Width Total number of product lines a company offers.

Length Total number of products in a company’s product mix.

Depth Total number of product variations in a product line.

Consistency Indicates how product lines relate to one another.

ASSIGNMENT #1 (MIDTERM)
SELF-ASSESSMENT:
1. Explain the following:
"People do not buy a product They buy benefits"
2. Explain the meaning of the expression `Product Mix'. State the
reasons why companies or organizations generally diversify their
range of products.
3. Explain the meaning of Product diversification, particularly
distinguishing between related and unrelated diversifications.
PRICING IMPACT TO
BUSINESS

• When setting prices, businesses should aim

to cover their marginal costs to ensure that
each unit sold contributes positively to their
overall profitability.

• Setting prices below marginal costs may

result in losses, while setting prices above
marginal costs may lead to missed
opportunities for increased sales.
PRICE MIX
Price mix is the combination of different 'price-
related variables' determined by a producer to
fix the price of the product or service he offers.

These variables include:

• cost of making the product
• factors that influence the pricing decisions
• various pricing strategy
• pricing objectives
PRICE MIX IS THE VALUE OF THE PRODUCT DETERMINED PRICE MIX INCLUDES THE DECISIONS AS TO: PRICE LEVEL
BY THE PRODUCERS. TO BE ADOPTED; DISCOUNT TO BE OFFERED; AND, TERMS
OF CREDIT TO BE ALLOWED TO CUSTOMERS.
Price —The amount of money charged for a
product or service, or the sum of the values that
consumers exchange for the benefits of having
or using the product or service.
“Price is the amount of money customers
have to pay to obtain the product.”

Philip and Armstrong

YOUR PRICING STRATEGY THE AMOUNT SHOULD LOW PRICING HINDERS THERE ARE A NUMBER OF SOME STRATEGIES MAY SELECT A PRICING
SHOULD REFLECT YOUR NOT PROJECT YOUR YOUR BUSINESS’ GROWTH PRICING STRATEGIES THAT CALL FOR COMPLEX STRATEGY THAT’S BASED
PRODUCT’S POSITIONING BUSINESS AS TIMID OR WHILE HIGH PRICING YOU CAN FOLLOW. COMPUTATION METHODS ON THE PRODUCT ITSELF,
IN THE MARKET AND THE GREEDY. KICKS YOU OUT OF THE AND OTHERS ARE COMPETITIVE
RESULTING PRICE SHOULD COMPETITION. INTUITIVE DECISIONS. ENVIRONMENT,
COVER THE COST PER CUSTOMER DEMAND,
ITEM AND THE PROFIT AND OTHER PRODUCTS
MARGIN. THAT YOU OFFER.
 PRICING STRATEGIES

Price is an important component of marketing mix and marketing plan.

It directly affects the firm’s sustainability and profitability.

Product price adjustment greatly influences the overall marketing strategy, sale and demand for the product.

A company just started its operation, it is new in the market and has no reputation associated with its products and
services, it will be difficult to charge high prices from the target market.

A company product price and cost are interrelated.

The company goal is to reduce product cost by embracing technological advancement in manufacturing. Pricing is a
source of creating a perception of products and services in the consumers’ minds
NOTE:

Pricing is Flexible.
Pricing is the only single variable that is flexible and can be changed
within no time.
Importance Set the right Price.
When setting the price keep in mind the strategic objective of the
organization. For example, if a marketer set too high or too low in both
of Pricing in pricing decisions it can affect the sale growth.

Marketing Positioning.
When setting a price, it conveys a message to your potential customers
about your product and service and creates a perceived value of marketing
mix. This perceived value can affect the consumer decision-making
process.
High pricing means high-quality products and services.
Low pricing products and services indicate that you are a low-cost
provider.
 •Cost. It is the base for the price that can be charged for products and

Factors services. When setting the prices, a company should cover both fixed and
variable costs.

Affecting •Marketing mix strategy. Price is important marketing mix tool that helps
to achieve the marketing objectives. Price decisions coordination product,
Pricing placement and promotion decisions must be coordinated .

Strategies •Marketing objectives of your company like your target market and
positioning strategies.

•Product Life Cycle. Different stages of product life cycle affect the
pricing decisions.

•Image of the Firm. Another factor affects the pricing decision is the
image and goodwill of the company.
 Competition.
External When setting the product price, the company must understand the level of
competition in the market.
Factors Consumers. When fixing the price keep in mind the consumer purchasing
Affect power and price sensitivity.

Pricing Economic Conditions. The economic factors include interest rate,

inflation and economic boom and recession.

Decision Government Controlled Economy is another factor to be considered.

Different
Pricing •Penetration Pricing

Strategies •Premium Pricing

•Economy Pricing
•Price Skimming
•Psychological Pricing
•Bundle Pricing
Penetration
Pricing
§ When companies use penetration pricing strategies, the focus is to gain
market share.
§ Goods and services are offered at lower prices than its competitors.
§ Marketers want to increase consumer awareness of products and
services and influence consumer to let’s give it a try. When a company
sets lower prices, can damage its profitability, but in the long run they
can raise the price after successful market penetration strategy.
Premium
• When a company introduces a new product with a competitive
Pricing advantage, it uses premium pricing strategy.
• The higher prices appeal competitors to launch products into the
market, the supply increases and prices fall.
• This pricing strategy is very effective in the initial production life
cycle.
• Those businesses with unique value propositions are recommended to
use premium pricing.
• To make this acceptable to customers, companies are focused to create
value perception.
• Besides creating high value product, the marketers must focus on
marketing efforts to support the premium pricing, it includes product
packaging and decoration of stores and stalls.
Economy
Pricing
• Companies use economy pricing to target price-conscious customers.
• Mostly it is used by retailers and food suppliers.
• With this strategy, businesses set the price as low as possible by
keeping the promotional and marketing cost to the minimum.
• Due to large sales volume, the low-pricing strategy is very effective for
large retail stores like KCC, UNITOP and the like.
• Small business cannot use this strategy because they don’t sell enough
products.
Price
Skimming
• This pricing strategy help business to increase their sales when
introducing new products and services.
• During the introduction stage of product life cycle, price skimming set
high prices. These prices gradually decreasing as competitors introduce
the same goods in the market.
Psychological
Pricing
• Marketers use psychological pricing that influences the buyers to buy
products and services based on their emotions rather than logic sense.
• For example, if a company set the price of a book at 99.00 it is more
attractive than at 100.00
• Even though 1.00 difference is very small, but consumer perceives
99.00 as cheaper and attractive.
Bundle
Pricing • When businesses set bundle pricing, they sell several products
combined into a single package for a lower price. Bundling strategy is
a smart way to move those unsold items taking up space. It can also
create value perception in customers’ mind that they are getting value
for their money.

• Bundle pricing better works for those companies having

complementary product lines. For example, a restaurant can offer a
complimentary salad or green tea on a full platter dish.
 •Profit maximization
Marketing •Profit margin
Mix maximization
Pricing
Objectives •Sales Growth
•Market Share
•Survival
Profit
Maximization
• Profit maximisation is a process business firms
undergo to ensure the best output and price levels
are achieved in order to maximise its returns.
• Influential factors such as sale price, production cost
and output levels are adjusted by the firm as a way
of realising its profit goals.
Profit Margin
Maximization
• The marginal revenue is the additional revenue
added by increasing the quantity.
• This is also known as the additional revenue “at the
margin.”
• Therefore, profit is maximized when marginal cost
equals marginal revenue which is the same as
saying when marginal profit equals zero.
Sales
Growth • Sales growth is the increase in sales of a product or
service over time.
• It measures how well a business performs in terms
of its revenue from sales.
• Sales growth can be measured by comparing the
year-over-year, quarter-over-quarter, or month-
over-month sales.
Market
Share
• Market share represents the percentage of an
industry, or a market's total sales, earned by a
particular company over a specified period.
• Market share is calculated by dividing a company's
sales by the total sales of the industry over a
period.
Survival
(in pricing) • Put into place in situations where a business needs
to price at a level that will just allow it to stay in
business and cover essential costs.
• For a short time, the goal of making a profit is set
aside for the goal of survival.
• Survival pricing is meant only to be used on a short-
term or temporary basis.
What are three kinds of pricing methods?

01 02 03
Value based pricing Competitor based Cost plus pricing -
- Price based on it's pricing - Price Price based on cost
perceived worth. based on of goods or services
competitors plus a markup.
pricing.
Assignment 2
INSTRUCTIONS:

Choose a product you want to shop.

List down 3 shops (stalls, malls, online shops, etc) in which that chosen product can be
purchased
Determine and explain the pricing strategy each shop used for the said product.
Write in ½ sheet of paper
Due: Next meeting (March 22, 2024)
 PHARMACEUTICAL MARKETING

PROMOTION MIX, DECISION AND

STRATEGIES
 At the end of the lecture, the students
should be able to:

discuss the role of promotions and its

impact on ethical and OTC/proprietary
UNIT drug products
OUTCOMES:
examine the various promotions mix
employed by drug companies and
drug outlets

describe the effective merchandising

and display program for drug outlets

2
 𝖣 Define Promotion Mix
𝖣 Discuss the Promotion Mix
for Ethical Drug Products
𝖣 Discuss the Promotion Mix
for OTC/Proprietary Drug
Products
UNIT 𝖣 Enumerate and explain the
OUTLINE: Elements of Promotion Mix
𝖣 Compare and contrast
Displays
Posters/streamers/billboard
s
𝖣 Discuss the importance of
Display Positioning

3
 𝖣 Promotion
○ It involves disseminating
information about a product,
product line, brand, or
company. It is one of the four
key aspects of the marketing
mix.
TERMINOLOGIES: ○ To generate sales and profits,
the benefits of products have
to be communicated to
customers
○ A very important part of
every business, if don’t
promote it, how customers
supposed to know about it?

5
 𝖣 Promotion mix
○ Specific combination of
promotional methods
such as print or
broadcast advertising,
TERMINOLOGIES: direct marketing,
personal selling, point
of sale display,
merchandising, used
for one product or a
family of products

6
 𝖣 Advertising
○ The means of providing
the most persuasive
possible selling message to
the right prospects at the
lowest possible cost
○ Any paid form of non –
TERMINOLOGIES: personal presentation and
promotion of ideas, goods
and services through mass
media such as
newspapers, magazines,
television or radio by an
identified sponsor

7
 PROMOTION
MIX
The promotion mix (the
marketing
communications mix) is
the specific blend of
promotion tools that the
company uses to
persuasively
communicate customer
value and build customer
relationships.
THE PROMOTIONS MIX FOR
ETHICAL DRUG PRODUCTS
PSR (Professional Service
Representative) or medical
representative deployed in
various places of the country
conducting regular visits and
optimizing whatever
promotional activities in
accordance to company
guidelines for certain products
and for certain specialty groups
of physician and dentist
practicing their trade.
THE PROMOTIONS MIX FOR
ETHICAL DRUG PRODUCTS
The PSR’s are the company’s
emissaries, ambassadors of
goodwill, extensions of the
company providing
consultations and allied
services to target
prescribers and endorsers
of ethical drug products for
long term gains.
THE PROMOTIONS MIX FOR
ETHICAL DRUG PRODUCTS
The primary target
markets of promo
tools are the
physicians and
dentist who
prescribe the ethical
drug products.
THE PROMOTIONS MIX FOR
ETHICAL DRUG PRODUCTS
The secondary target
markets for ethical drug
products are the
pharmacists who dispense
and endorse the
prescription drug products
to end users in drugstores
and hospital pharmacies.
THE PROMOTIONS MIX FOR
ETHICAL DRUG PRODUCTS
Advertisements in all forms to
physicians and health-related
professionals
◦ The wording and illustrations in
advertisements to physicians and
related health professionals
should be fully consistent with
the approved scientific data
sheet for the drug concerned or
other source of information with
similar content
 Such advertisements should usually contain,
among others:
◦ Name(s) of the active ingredient(s) using either
international nonproprietary names (INN) or the
approved generic name of the drug;
◦ Brand name; content of active ingredient(s) per
THE dosage form or regimen;
PROMOTIONS ◦ Name of other ingredients known to cause
MIX FOR problems;
ETHICAL DRUG ◦ Approved therapeutic uses; dosage form or
PRODUCTS regimen;
◦ Side-effects and major adverse drug reactions;
◦ Precautions, contra-indications and warnings;
major interactions;
◦ Name and address of manufacturer or distributor;
◦ Reference to scientific literature as appropriate
THE PROMOTIONS MIX
FOR OTC/PROPRIETARY
DRUG PRODUCTS
The authority
endorsers at the
point-of-sales for
OTC drug products
in drugstores are
none other than the
pharmacists.
 THE PROMOTIONS MIX
FOR OTC/PROPRIETARY
DRUG PRODUCTS
An advertisement must:
◦ Comply with the particular
listed in the approved insert
leaflet
◦ Encourage rational used of
the product by presenting it
objectively and without
exaggerating its qualities
◦ Not be misleading

16
 The following list serves as an
illustration of the type of
information advertisements to the
general public should contain:
◦ the name(s) of the active ingredient(s)
using either international
THE nonproprietary names (INN) or the
PROMOTIONS approved generic name of the drug;
MIX FOR the brand name;
OTC/PROPRIETARY ◦ Major indication(s) for use;
DRUG PRODUCTS ◦ Major precautions, contra-indications
and warnings;
◦ Name and address of manufacturer or
distributor.
◦ Information on price to the consumer
should be accurately and honestly
portrayed

17
 Personal Selling
Sales Promotion
Publicity

ELEMENTS OF Public Relations

PROMOTION Direct Mail
MIX
Trade Fairs and Exhibitions
Advertising
Sponsorships
Online promotions
 Other related tools such as:
◦Point of purchase displays
ELEMENTS ◦Merchandising
OF
PROMOTION ◦Scientific medical fora and the
MIX like
◦Poster sessions
Personal Selling
Personal selling occurs where an
individual salesperson sells a
product, service or solution to a
client. Salespeople match the
benefits of their offering to the
specific needs of a client. Today,
personal selling involves the
development of longstanding
client relationships.
Personal selling is the
company’s most expensive
promotional tools.
Personal Selling
Personal Selling

It may focus initially on

Is an oral communication
developing a relationship
with potential buyers of a
with the potential buyer,
product with the intention
but ultimately end with an
of making a sale
attempt to close the deal
Sales Promotion
Sales promotion is any
initiative undertaken by an
organization to promote an
increase in sales, usage or
trial of a product or service
(i.e. initiatives that are not
covered by the other
elements of the marketing
communications or
promotions mix)
Sales Promotion
Sales Promotion for OTC/
Proprietary Drug Products
This includes a wide assortment
of tools such as the following:
1. Discount Coupons

2. Bonus-packed offers
- Additional products added for
free at the price of the original
product.
Sales Promotion for OTC/
Proprietary Drug Products

3. Piggy-back offers - a gift item

or another drug product attached
to the original product.

4. Pick and win Promo – entitles a

buyer to win a prize for every
purchase of certain OTC drugs.
 Sales Promotion for OTC/
Proprietary Drug Products
5. Raffle promo - entitles a buyer one raffle
ticket for every purchase of any drug
product.

6. Trading Stamps - entitle a buyer to a

stamp worth 100 points for every 100
pesos worth of purchase

7. Rebates - entitle a buyer for example to

a 2 pesos refund for every box of
Nutroplex Syrup returned/submitted in
specified redemption centers.
Sales Promotion for
OTC/ Proprietary
Drug Products

8. Premium Promo - entitles

the buyer to buy a premium
item on display, for example
an umbrella for only 20
pesos for ever 50 pesos
worth of purchase of
participating OTC.

9. Free Goods promo-

entitles a buyer for similar
item for free.
Sales Promotion for OTC/
Proprietary Drug Products
10. Pin money - entitles for example a
drugstore clerk 100 pesos for every bottle.

11. Mystery buyer - a drugstore clerk for

example is entitled to win an instant prize
wherever he/she recommends an OTC
drug.

12. Sale Campaign - conducted during

special seasons of the year.
Sales Promotion for Ethical
Drug Products
Discount Coupons Prescription for a
for patients cause

Medical mission or
Gifts for the needy Free Clinic
Operations

Other sales promo

such as
conferences and
conventions, study
grants etc.
Publicity
Refers to non – personal
communications non
directly paid for or run
under identified
sponsorship
Techniques used to gain
publicity includes:
◦ Press conferences
◦ Feature articles
◦ Films and photographs
Direct Marketing

Concerned with establishing an individual

relationship between the business offering
a product and the final customer

Defined as the planned recording, analysis

and tracking of customer’s behavior to
develop a relational marketing strategies
Public Public relations is a communication method
used by businesses to convey a positive
Relations image to a target audience and the general
public. Public relations methods can include
press releases, community involvement and
speaking at public forums on issues
important to a target audience.

Small companies with small advertising

budgets can use public relations as an
inexpensive medium to establish the
company name and communicate a brand
image. Successful public relations programs
highlight company accomplishments and
positive contributions to community.
Sponsorship
Sponsorship is the
financial or in-
kind support of
an activity, used
primarily to reach
specified business
goals.
Trade Fair
Trade shows and exhibitions
can be an excellent way to
promote your business and
the products and services
that you offer. They are also
a great way to network with
other industry members and
grow your customer base.
Direct mail
A marketing effort that uses a mail
service to deliver a promotional
printed piece to your target
audience

Advantage: direct mail lets you

communicate one-on-one with
your target audience. That allows
you to control who receives your
message, when it's delivered,
what's in the envelope and how
many people you reach
 Advertising claims must be accurate,
truthful, and substantiated.

Ads stating that a product is "new," "just released,"

or similar claims must only be used for a product
that has been released within the past 6 months.
Advertising
The following information must be included
either in the disclosure section of the ad text or
on the landing page (the data used must be from
a reputable source, and cannot be more than 18
months old):
• Awards: The name of the award provider, and the date of
the award.
•Survey results: The source and date of the survey.
•Statistical claims: The source and date of the study.
•Superlative and comparative claims: An independent source
that supports the claim, and the date of the study. 38
 Be consistent across the ad and the landing page. If
the ad promotes a percentage savings (for example,
“10% off”), the landing page must also reference the
percentage saving, not only the dollar saving.

Clarify when the amount varies across multiple

promoted products (for example, “Save up to X% on
Pricing and selected products.”).

saving claims
must: Be used in the correct context. For example, use
phrases like “limited-time offer” for time-bound
savings claims.

Use seasonal claims during the relevant promotional

period only. For example, “Back to school offers” or
“Valentine’s Day Special Prices” is only acceptable
during the periods leading up to the beginning of the
school year or Valentine’s Day.

39
 Companies are aware of the fact that their
products even if categorized as leaders in
sales performance and that a consumer
who has tried them will use them again,
provided there is a reminder at the time of
purchase.

Merchandising
and Displays

The factors which provide these reminders

may be grouped under the following broad
headings:
A. Drugstore C. Posters and
owners, B. Product other
pharmacist and displays merchandising
pharmacy aides paraphernalia.
 Drug companies are very much aware and
conscious of the power that owners and
drugstore personnel wield in influencing
the buying decision for OTC/ Proprietary
Drugstore products.
Owners,
Pharmacist, The pharmacist and all counter clerks in
and drugstore are the authority figures or
endorsers for OTC/proprietary drugs and
Pharmacy generics medications.
Aides/Sales
Clerks
Of course, goodwill also pays a vital role in
influencing the drugstore personnel to
endorse brands
Drugstore Owners,
Pharmacist, and
Pharmacy
Aides/Sales Clerks
On numerous
occasions, drug
companies offer
counter clerks
incentive reward in
cash or in kind for
pushing the products
to incoming
customer in
drugstore.
 Displays may be built by:
◦ Drugstore owner
◦ Dealer
◦ Branch manager
Displays ◦ Company’s representative

Displays are the SILENT

SALESMAN who push your
brands even in your absence.
 Customers must be able to distinguish ads
from non-sponsored content on the page.

Ads without borders cannot feature white or

Background off-white background color.
Colors and
Borders

If an ad does not have a border, it must

feature a background color that contrasts
with the white/off-white background color of
the page. For example, ads without borders
can feature a light gray background color.

44
Distracting Ads
Animation features and other
interactive elements in ads must
be engaging and complement
the customer experience and
must not distract or deceive.

45
 Prohibited distracting features
include, but are not limited to:
◦ Flashing, blinking, or, pulsating
objects, images, or text.
◦ Frequent or fast contrast
transitions (for example frames
Distracting with multiple changes from white
to black).
Ads
◦ Excessive animation (for example,
frame changes occur every 1 or 2
seconds or visual objects within the
animation that seem to move
constantly).
◦ Animation that mimics user
interaction, such as moving mouse
cursors or clicking buttons.

46
 Fake functionality can trick
customers into clicking on ads by
believing that certain inactive
Fake elements of an ad are interactive
functionality and can provide value to them.

47
 Images in ads must meet the file
size, resolution, and file type
restrictions that are specified
per size/placement.

Prohibited low-quality images

include but are not limited to:
Image Quality crowded images with too many
visual objects in one creative,
blurry, distorted, low-resolution,
pixelated, smudged, or stretched
images.

48
Displays

Dealer displays – are the most effective and

long lasting.

Displays built by the company’s representative

are most often the basic display materials
provided by the company’s head offices.
Posters/Streamers/Billboards
The product posters and streamers
are the most important link
between advertising and your
brand when the consumer gets
into the drugstore.
Posters are (POP) point-of-
purchase materials; therefore,
their ideal location is the outlet, or
the point where the consumer is
likely to make his/her purchase.
Always place your posters at eye
level or higher, never lower.
Position of Displays
There are four position for displays:
1. At the point-of-purchase (POP)
2. On the store floor
3. On preferential shelf space
4. In the store window
 Point-of-Purchase is undoubtedly the
best of the four positions.

The Store floor is the best place for a

mass displays of OTC/Proprietary
Position of brands.
Displays
Preferential shelf space is that part of
the fixtures which is in a commanding
position.

Window Display, are most effective in

main thoroughfares.
 If you have a POP Displays

Have it either where most consumers

stand, or better still at every serving point.

Key Display Place it in a strategic place so that the

counter clerk sees it as well
Guidelines
Have it at a height between waist and eye
level

Make it big and attractive enough to

attract the customer
 B. If you have a Floor Displays
(this also applies to Preferential
Shelf Space)
1. Relate it to the size of the
drugstore
Key Display 2. Have it in a position and size
Guidelines where it will be seen by the
greatest number of
customer
3. Do not trim it by including
too many brands
4. Display the bigger sized
brands in massive facings.
 C. If you have a Window Display
1. Make sure you control the
whole window space and
Key Display that there are no other
Guidelines cluttering the display.
2. Keep the windows clean and
all elements of the display
properly arranged.