Advertising in Pharma Industry

8/6/2019 Advertising in Pharma Industry

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Certificate

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Company profile


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1) Overview of pharma industry

2) Indian pharma industry

3) Marketing in pharma

4) Advertisement in pharma industry

a) Overview of advertisements

b) In pharma

5) Project on MSD elocon

6) Research work 20 mr

7) Conclusiomn

8) Brand medicine: the role of branding in the pharmaceutical

industry

9) By Tom Blackett, Rebecca Robins

10) http://www.scribd.com/doc/6917017/Tata100307

11) Devendra_Belani_2656

12) http://www.drugs.com/elocon.html

13) http://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?

drugid=4835&drugname=Elocon+Top

14) http://www.authorstream.com/Presentation/sourabh990-128805-ad-

agency-presentation-education-ppt-powerpoint/

15) http://www.docstoc.com/docs/22707907/MBA-Project-on-Advertising

16) http://www.ascionline.org/index.php/asci-industry
http://www.scribd.com/doc/6917017/Tata100307http://www.drugs.com/elocon.htmlhttp://www.drugs.com/elocon.htmlhttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.docstoc.com/docs/22707907/MBA-Project-on-Advertisinghttp://www.ascionline.org/index.php/asci-industryhttp://www.scribd.com/doc/6917017/Tata100307http://www.drugs.com/elocon.htmlhttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.webmd.com/drugs/drug-4835-Elocon+Top.aspx?drugid=4835&drugname=Elocon+Tophttp://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.authorstream.com/Presentation/sourabh990-128805-ad-agency-presentation-education-ppt-powerpoint/http://www.docstoc.com/docs/22707907/MBA-Project-on-Advertisinghttp://www.ascionline.org/index.php/asci-industry


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17) http://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-

AGENCIES

18) http://www.mbaknol.com/marketing-management/types-of-advertising-

agencies/

ABSTRACT

Pharmaceutical industry mechanics are changing at an incredible rate. Millions

of dollars are being spent in drug discovery, which is followed by a rigorous

clinical trial process leading up to the drug administration agencys approval to

allow the drug to hit the market. The drug development process thus has a typicalcycle time of 10-15 years. A great deal more is spent on marketing these drugs to

boost sales. The window of profitability lies only until the patent is alive after

which generic companies can manufacture and market the same drug. To

maximize revenue returns, drug-marketing cycle needs to be more efficient.

Over the years, revenue per sales person is falling and sales force effectiveness is

reducing. While sales representatives are being added, the increase in revenue is

not aligned to this cost. Companies are looking at initiatives to increase revenues

without increasing sales headcount, by reducing operational costs and other

downtime.

While most other sectors have taken up Business Intelligence and Performance

Management drives more easily, Pharmaceutical firms have been a little reluctant
http://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.mbaknol.com/marketing-management/types-of-advertising-agencies/http://www.mbaknol.com/marketing-management/types-of-advertising-agencies/http://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.docstoc.com/docs/3414257/TYPES-OF-ADVERTISING-AGENCIEShttp://www.mbaknol.com/marketing-management/types-of-advertising-agencies/http://www.mbaknol.com/marketing-management/types-of-advertising-agencies/


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to embracing this emerging technology. The current shift in the marketing

strategy is work by multinational pharmaceutical Companies .It is now high-end

(rather than adaptive) development that is being carried out by leading

companies. And, increasingly, other companies are finding themselves competing

against, or working with, new innovation-based companies.

INTRODUCTION

The pharmaceutical industry is the world's largest industry due to worldwide

revenues of approximately US$2.8 trillion. Pharma industry has seen major

changes in the recent years that place new demands on payers, providers and

manufacturers. Customers now demand the same choice and convenience from

pharma industry that they find in other segment

Revenue

Rank 2008

Company Country Total

Revenues(USD

millions)

1 Pfizer USA 67,809

2 Novartis Switzerlan

d

53,324

3 Merck & Co. USA 45,987

4 Bayer Germany 44,200

5 GlaxoSmithKli

ne

United

Kingdom

42,813

6 Johnson and USA 37,020
http://en.wikipedia.org/wiki/Pfizerhttp://en.wikipedia.org/wiki/Novartishttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Merck_%26_Co.http://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Pharmaceutical_industryhttp://en.wikipedia.org/wiki/Pfizerhttp://en.wikipedia.org/wiki/Novartishttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Merck_%26_Co.http://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/USA


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Johnson

7 Sanofi-Aventis France 35,645

8 HoffmannLa

Roche

Switzerlan

d

33,547

9 AstraZeneca United

Kingdom

26,475

10 Abbott

Laboratories

USA 22,476

The Indian pharmaceutical industry today is in the forefront of nations science-

based industries with wide ranging capabilities in the complex field of drug

manufacture and technology. A highly organized sector, the Indian

pharmaceutical industry is estimated to be worth $4.5 billion, growing at about

8-9% annually. The Indian pharmaceutical industry ranks very high in the third

world in terms of technology, quality and range of medicines manufactured.

From simple headache pills to sophisticated antibiotics and complex cardiac

compounds, almost every type of medicine is now made indigenously. Playing a

key role in promoting and sustaining development in the vital field of medicines,

the Indian pharmaceutical industry boasts of quality producers, and many unitsare approved by regulatory authorities of United States of America and United

Kingdom. Indian companies have stimulated, assisted and spearheaded this

dynamic development in the past 55 years and helped to put India on the

pharmaceutical map of the world.

The Indian Pharmaceutical sector is highly diversified with more than 20,000

registered units. It has expanded drastically in the last two decades. The leading

250 pharmaceutical companies control 70% of the market, with market leader

holding nearly 7% of the market share. It is an extremely fragmented market with

severe price competition and government price control. The pharmaceutical

industry in India meets around 70% of the countrys demand for bulk drugs, drug

intermediates, pharmaceutical formulations, and chemicals. There are 250large
http://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/Sanofi-Aventishttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Abbott_Laboratorieshttp://en.wikipedia.org/wiki/Abbott_Laboratorieshttp://en.wikipedia.org/wiki/Johnson_and_Johnsonhttp://en.wikipedia.org/wiki/Sanofi-Aventishttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Hoffmann%E2%80%93La_Rochehttp://en.wikipedia.org/wiki/Abbott_Laboratorieshttp://en.wikipedia.org/wiki/Abbott_Laboratories


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units and about 8,000 small-scale units that form the core of the pharmaceutical

industry in India (including 5 central public sector units).\

These units produce the complete range of pharmaceutical formulations, i.e.,

medicines ready for consumption by patients and about 350 bulk drugs, i.e.,

chemicals having therapeutic value and used for production of pharmaceutical

formulations.

Indian Pharmaceutical Industry is poised for high consistent growth over the

next few years, driven by a multitude of factors. Top Indian Companies like

Ranbaxy, DRL CIPLA and Dabur have already established their presence. The

pharmaceutical industry is a knowledge driven industry and is heavily dependent

on Research and Development for new products and growth. However, basic

research (discovering new molecules) is a time consuming and expensive process

and is thus, dominated by large global multinationals.

Indian companies have only recently entered the area. The Indian

pharmaceutical industry came into existence in 1901, when Bengal Chemical &

Pharmaceutical Company started its maiden operation in Calcutta. The next few

decades saw the pharmaceutical industry moving through several phases, largely

in accordance with government policies.

Ran

k

Company Revenue

2010(Rs cro

re)

1 Ranbaxy Laboratories 4,198.96

2 Dr. Reddy's

Laboratories

4,162.25

3 Cipla 3,763.72
http://en.wikipedia.org/wiki/Ranbaxy_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Ciplahttp://en.wikipedia.org/wiki/Ranbaxy_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Dr._Reddy's_Laboratorieshttp://en.wikipedia.org/wiki/Cipla


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4 Sun Pharmaceutical 2,463.59

5 Lupin Ltd 2,215.52

6 Aurobindo Pharma 2,081.19

7 GlaxoSmithKline 1,773.41

8 Cadila Healthcare 1,613

9 Aventis Pharma 983.80

10 Ipca Laboratories 980.44

Commencing with repackaging and preparation of formulations from imported

bulk drugs, the Indian industry has moved on to become a net foreign exchange

earner, and has been able to underline its presence in the global pharmaceutical

arena as one of the top 35 drug producers worldwide. Currently, there are more

than 2,400 registered pharmaceutical producers in India.

There are 24,000 licensed pharmaceutical companies. Of the 465 bulk drugs used

in India, approximately 425 are manufactured here. India has more drug-

manufacturing facilities that have been approved by the U.S. Food and Drug

Administration than any country other than the US.

Indian generics companies supply 84% of the AIDS drugs that Doctors without

Borders uses to treat 60,000 patients in more than 30 countries.
http://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Lupin_Ltdhttp://en.wikipedia.org/w/index.php?title=Aurobindo_Pharma&action=edit&redlink=1http://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Aventis_Pharmahttp://en.wikipedia.org/wiki/Ipca_Laboratorieshttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Lupin_Ltdhttp://en.wikipedia.org/w/index.php?title=Aurobindo_Pharma&action=edit&redlink=1http://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Aventis_Pharmahttp://en.wikipedia.org/wiki/Ipca_Laboratories


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\

However, total pharmaceutical market is as follows:

It is very much evident from above fig.1 that chronic therapy area (Gastro

Cardiac, Respiratory, Neuro Psychiatry and Ant diabetics) is dominating the

market in long run.


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The Changing Pharmaceutical Industry

Pharmaceutical firms often correlate their sales force size with the success of

sales and marketing drives. Over the years, it has been found that size of the sales

force alone cannot tackle competition. While the sales representatives are being

added, increase in revenue is not aligned to this cost and revenue per sales person

is falling. As is indicated in the graph (fig 1) (Source: Eye For Pharma) increase in

Sales Force Effort after a certain period only leads to marginal improvement in

sales response.

Figure 1 - Sales Response vs. Sales Force Effort (Source: Eye For Pharma)

The Pharmaceutical Industry spends more than $10 billion, largest amount spent

on sales force by any industry .Marketing spend is 2.5 times the R&D spend for

top 9 pharmaceutical firms. Adding to this are the increased regulatory issues

and faster patent expirations facing pharmaceutical firms, which lead to longer

review cycles followed by shorter periods to corner a market.


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As practitioners are becoming overwhelmed with the increasing

number of patients, they have very little time to spend with sales

representatives learning about new drugs. Apart from doctors,

hospitals, clinical administrators and patients make decisions

regarding new drugs as well who are becoming increasingly

participative about their treatments. Therefore, at a time when clinical

trials are already becoming more complex and data intensive sales

force optimization has become a big challenge

Advantage India

Competent workforce: India has a pool of personnel with high managerial and

technical competence as also skilled workforce. It has an educated work force and

English is commonly used. Professional services are easily available. Cost-

effective chemical synthesis: Its track record of development, particularly in the

area of improved cost-beneficial chemical synthesis for various drug molecules is

excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk

drugs.

Legal & Financial Framework: India has a 53-year-old democracy and hence hasa solid legal framework and strong financial markets. There is already an

established international industry and business community.

Information & Technology: It has a good network of excellent educational

institutions and established strengths in Information Technology.

Globalization: The country is committed to a free market economy and

globalization. Above all, it has a 70 million middle class market, which is

continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical

industry is finding great opportunities in India. The process of consolidation,


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which has become a generalized phenomenon in the world pharmaceutical

industry, has started taking place in India.

Pharma Marketing Process And Its Challenges

While many pharmaceutical companies have successfully deployed a plethora of

strategies to target the various customer types, recent business and customer

trends are creating new challenges and opportunities for increasing profitability.

In the pharmaceutical and healthcare industries, a complex web of decision-

makers determines the nature of the transaction (prescription) for which direct

customer of pharma industry (doctor) is responsible. Use of medical

representatives for marketing products to physicians and to exert some influence

over others in the hierarchy of decision makers has been a time-tested tradition.

Typically, sales force expense comprises an estimated 15 percent to 20 percent of

annual product revenues, the largest line item on the balance sheet.

From organizational perspective the most prominent performance related issues

are

a) Increased competition and shortened window of opportunity.

b) Low level of customer knowledge (Doctors, Retailers, Wholesalers).

c) Poor customer acquisition, development and retention strategies

d) Varying customer perception.

e) The number and the quality of medical representatives


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f) High training and re-training costs of sales personnel.

g) Very high attrition rate of the sales personnel.

h) Busy doctors giving less time for sales calls.

i) Absence of analysis on the amount of time invested on profitable and not-so

profitable customers and lack of time-share planning towards developing

customer base for future

The Growth Scenario

The Indian growing and aged population is expected to reach more than 1.4

billion by 2020. The population in India is even forecast to become larger than

China (today 1.3 billion) after 2035, thus becoming the worlds most populous

country with 1.6 billion Indians. The percentage of people aged 65 and above will

increase from 4.3% to 6.3% till 2020.The healthcare expenditure in India is

expected to increase from approximately US$ 44 billion in 2009 to US$ 53 billion

by the end of 2010. Indias per capita spending a year on medicine is expected to

increase from US$ 15 in 2009 to US$ 31 in 2014.


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Direct And Indirect Marketing To Health Care Providers

Physicians are perhaps the most important component in pharmaceutical sales.

Influencing the physician is the key to pharmaceutical sales. Historically, a large

pharmaceutical sales force did this. A medium-sized pharmaceutical company

might have a sales force of 1000 representatives. The largest companies have tens

of thousands of representatives around the world. Sales representatives called

upon physicians regularly, providing information and free drug samples to the

physicians. This is still the approach today; however, economic pressures on the

industry are causing pharmaceutical companies to rethink the traditional sales

process to physicians.

There are several channels by which a physician may be influenced, including

self-influence through research, peer influence, direct interaction with

pharmaceutical companies, patients, and public or private insurance companies.

There are also web-based instruments that can be used to determine the

influencers and buying motives of physicians. There are a number of firms that

specialize in data and analytics for pharmaceutical marketing.


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THE PHARMACEUTICAL PRODUCT LIFECYCLE

Pharmaceutical marketing activities depend largely on the stage in which a

particular product is within the product lifecycle. Following represents a generic

pharmaceutical product lifecycle. (Products may vary greatly and the lifecycle

stages may not manifest uniformly for all products)


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Introduction Stage:

A new product is introduced to the physicians and either cures a disease in a

different manner than existing therapies or is a very new treatment in its own

right. At this stage, sales future is uncertain and direct competition is very low.

Growth Stage:

The new product receives widespread acceptance from the medical community

and number of competitors increase. Promotion activities at this stage focus on

advocating their own brands and sales volumes increase.

Maturity Stage:

The effectiveness of the product is well established at this stage and promotional

activities focus on selling the product to large volume buyers. Competition on the

product line reaches an all time high.

Saturation Stage:


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The product is typically used for all indications it is found useful for at this stage.

A number of product variants such as dermatological, tablets, capsules etc.

appear and promotional activities focus on adding extra value.

Decline:

Decline may or may not happen and is primarily caused by identification of

certain areas where the product was thought to be effective but is not. Some

competitors leave the market at this stage.

As indicated in figure (3) increase in sales volume is highest at the Growth stage

and becomes stable at the Maturity stage before falling gradually at saturation

stage when generic marketing takes hold. It is at this stage that new products

must be launched to sustain the organizations steady growth.

MARKETING MIX

Pricing:

The New Era Pharmacy's prices will be better than traditional pharmacies.

Distribution:


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The products should be distributed throughout the nation.

Advertising and Promotion:

The most successful advertising campaigns will be targeted advertisements.

Customer Service:

Obsessive customer service is the norm. All employees have to be trained to

ensure that all customer's expectations are exceeded. This will occur at any short

term expense, realizing that this is needed to build a successful business.

SWOT ANALYSIS


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SALES AND MARKETING OF PHARMA PRODUCTS

Pharmaceutical Sales and Marketing processes can be classified under three main

categories:

Business-to-Business

Marketing


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Sales

Figure 2 - Pharmaceutical Sales and Marketing Business Process Spectrum

B2B: The onus of winning large deals lies on B2B sales. B2B specialists

constantly work with large hospitals, clinics, managed care, and ILTC facilities to

build and sustain long-term relationships and negotiate multi-million dollarcontracts.

Sales: Pharmaceutical sales force is perhaps the most dynamic work force across

all verticals. Sales function today is not just about sampling and detailing the

drugs to the doctors. It has taken a completely new dimension in using the latest

technology and multimedia to target the most influential physicians and

converting them into high volume prescribers.

Marketing: Pharmaceutical marketing is a strategic function. The marketing

efforts vary from campaigning for a new product launch to conducting Direct-to-

Customer road shows promoting patient awareness. The organic growth of the

internet and google-ization (extensive internet searches using engines such as


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Google) of masses has made the consumer highly informative and curious about

patient treatment.

The traditional DTP route of marketing the drug to the doctors has gradually yet

significantly shifted to innovative DTC marketing. The pharmaceutical consumer

marketing in itself is more challenging than conventional DTC. As shown in

Figure (2) consumer marketing is any intervention that influences consumer

attitude/behavior towards an Rx product. This makes it more complex as

compared to marketing in other industry sectors. The subtle marketing channels

such as gaining interest of various thought leaders to generate favorable ideas on

a drug are being employed by almost all pharmaceutical majors.

Controversy

The mass marketing to consumers of pharmaceuticals is controversial. It is

banned in over 30 industrialized nations, but not in the US and New Zealand,

which is considering a ban. Some feel it is better to leave the decision wholly in

the hands of medical professionals; others feel that consumer education and


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participation in health is useful, but consumers need independent, comparative

information about drugs (not promotional information). For these reasons, most

countries impose limits on pharmaceutical mass marketing that are not placed on

the marketing of other products. In some areas it is required that ads for drugs

include a list of possible side effects, so that consumers are informed of both

facets of a medicine.

The number and persistence of pharmaceutical representatives has placed a

burden on the time of physicians. "As the number of reps went up, the amount of

time an average rep spent with doctors went downso far down, that tactical

scaling has spawned a strategic crisis. Physicians no longer spend much time with

sales reps, nor do they see this as a serious problem."

Marketing strategies

What is the secret behind these successes? For one, the company operates in

niche formulations (chronic) segments such as psychiatry, cardiovascular,

gastroentology and neurology. While most of the top Indian companies have


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Marketing Approaches Of Super Core Model

In pharmaceutical market, there has been a significant shift from Acute towardsChronic Therapy area. Chronic segments are driving the growth of the market as

leading prescribers in these segments are specialists as opposed to general

practioners. Medical representatives are rearranged throughout the new

companies. Some of the sales representatives are now afraid of losing their job,

due to the changing scenario and the possible layoffs. On the other hand, the

new, bigger, pharmaceutical companies are competing more and more with one

another, and, in order to stress their products, might adopt a more aggressive

sales strategy.

For example, sometimes in the same geographical area there are five

representatives for just one company, or different representatives for the same

drug in different settings. As a result of the new, aggressive strategy, the

aggressiveness of representatives has also been increasing, since the larger stress

exerted by their companies might affect their stay in the company.

Therefore, they tend to have more frequent visits to encourage doctors to

prescribe drugs and thus increase sales. In this model medical representatives arethe key actors for example in a small oncology unit almost 40 sales

representatives interacting with doctors, and most of them are coming for a visit

on a regular once-a-month basis as this is the restriction put by doctors of

meeting only once in a month that to on a fix time only, in order to stress the

usefulness of their products and push clinicians towards the use of their drugs.

This means that, basically, there are at least two representatives every day in busy

clinic asking for a short meeting to support their product.

Pharmaceutical marketing is a specialized field where medical representatives

form the backbone of entire marketing effort. Pharmaceutical companies also

appoints medical representatives and assign them defined territories. Medical

representatives meet doctors, chemists and stockiest as per company


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norms.Medical representatives try to influence prescription pattern of doctors in

favor of their brands.

Here patient is end customer and doctor is direct customer for any

pharmaceutical company. Nevertheless, for doctor customer is more important

so he wants an effective supply chain management from prescribed company. For

marketing of these type of products companies require more and more skilled

field force to develop good rapport with their direct customer (doctor). Moreover

field force should have good product knowledge and USP of their products over

other so as to convince doctors and PULL the demand for their products i.e. from

Doctor to Retailer to Stockist to CFA to company.

Pull System Working In Chronic Therapy Segment

CORE CUSTOMER

(Doctor)

END-CUSTOMER

(Patient)

NONCORE

CUSTOMER

(Retailer)

CUSTOMER

(Stockist)

CUSTOMER

In this system, doctors are the core customers and the major thrust is given to

build and retain these customer because they are pulling the demand for

products hence companies also give main emphasis in building and retaining

these customers. For retaining and developing customers, the companies

normally provide gifts like sponsorship for various conferences like RSSDI,

FOGSI, APICON, UPCON etc.


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Marketing Approaches Of Core Model

In present scenario companies are focusing more and more on the availability of

products so as to enjoy good image in their cutomers (doctors) chamber.For

marketing of these type of products companies require more and more field force

to remind their products on daily basis to their direct customer (doctor).

Moreover field force should have good knowledge of product schemes and offers.

Also field force is required to have a good rapport with retailers. Field force also

required to ensure good availability of their products to convince doctors and

PUSH their products i.e. from to Stockist to Retailer to Doctor.It has been

observed that sometimes there are more than fifteen or sixteen representatives in

a day are meeting with their customer and requesting for same type of products.

The doctors are, in general, sneaking away, trying to hide from sales

representatives, since there are too many, they are too pushy, and there is too

little time, and the representatives probably have noticed that the reluctant

doctors have always less time for short meetings and less interest and tend to

reduce the time of the visit .

The relationship between clinicians and representatives has always been good

and pharmaceutical companies have provided, and still provide, the major

economical support for customers' continuous medical education.

Something needs to be done to find a solution to this problem that takes into

account the needs of both pharmaceutical companies and their representatives

on one side and physicians on the other, for a better professional interaction.


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Push System Working In Acute Therapy Segment

In this system, doctors and retailers are the core customers and the major thrust

is given to build and retain these customers. Here retailers are also core customer

as most of the times they are substituting the products based on their own

discretion. For retaining and developing customers, the companies normally

provide gifts like sponsorship for various conferences like small gifts &

sponsorship to remind the products on daily basis.

CORE CUSTOMER

(Doctor)

END-CUSTOMER

(Patient)

CORE CUSTOMER

(Retailer)

CORE

CUSTOMER

(Stockist)

CUSTOMER

(C & FA)

Normally the chances of dumping of goods at stockist and retailer level are

reported also payment recovery of companies is also not very good. Supply Chain

Managers can provide considerable value to their companies by understanding

the customers' delivery


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requirements. A very powerful tool for understanding these requirements is

account segmentation. A company can use account segmentation to identify

market segments Such as Acute & Chronic therapy market. Which is well

positioned to serve and then organize its product range and even SKUs and

service in a superior way.


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ADVERTISING

Advertising is a form ofcommunicationused to persuade an audience (viewers,

readers or listeners) to take some action with respect to products, ideas, or

services. Most commonly, the desired result is to drive consumer behavior withrespect to a commercial offering, although political and ideological advertising is

also common.

Advertising messages are usually paid for by sponsorsand viewed via

various traditional media; including mass mediasuch as newspaper,

magazines, television commercial,radio advertisement, outdoor

advertisingordirect mail; ornew media such aswebsites andtext messages.

Commercial advertisers often seek to generate increased consumption of

their products or services through "Branding," which involves the repetition of an

image or product name in an effort to associate certain qualities with the brand in

the minds ofconsumers. commercial advertisers who spend money to advertise

items other than a consumer product or service include political parties, interest

groups, religious organizations and governmental agencies.Nonprofit

organizations may rely on free modes ofpersuasion, such as a public service

announcement.
http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Traditional_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Newspaperhttp://en.wikipedia.org/wiki/Magazineshttp://en.wikipedia.org/wiki/Television_commercialhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Direct_mailhttp://en.wikipedia.org/wiki/Direct_mailhttp://en.wikipedia.org/wiki/New_mediahttp://en.wikipedia.org/wiki/New_mediahttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Text_messageshttp://en.wikipedia.org/wiki/Text_messageshttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Consumershttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Persuasionhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Traditional_mediahttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Newspaperhttp://en.wikipedia.org/wiki/Magazineshttp://en.wikipedia.org/wiki/Television_commercialhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Outdoor_advertisinghttp://en.wikipedia.org/wiki/Direct_mailhttp://en.wikipedia.org/wiki/New_mediahttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Text_messageshttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Consumershttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Nonprofit_organizationshttp://en.wikipedia.org/wiki/Persuasionhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Public_service_announcement


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Types of advertising

Advertising is the promotion of a companys products and services carried out

primarily to drive sales of the products and services but also to build a brand

identity and communicate changes or new product /services to the customers.

Advertising has become an essential element of the corporate world and hence

the companies allot a considerable amount of revenues as their advertising

budget. There are several reasons for advertising some of which are as follows:

Increasing the sales of the product/service

Creating and maintaining a brand identity or brand image.

Communicating a change in the existing product line.

Introduction of a new product or service.

Increasing the buzz-value of the brand or the company.

Thus, several reasons for advertising and similarly there exist various media

which can be effectively used for advertising? Based on these criteria there can be

several branches of advertising. Mentioned below are the various categories ortypes of advertising. Mainly advertisements fall into two main categories digital

and print advertisements which are further classified as follows:-

Digital advertising

Television advertising / Music in advertising

The TV commercial is generally considered the most effective mass-market

advertising format, as is reflected by the high prices TV networks charge for

commercial airtime during popular TV events. Television advertisements have

been very popular ever since they have been introduced.

The cost of television advertising often depends on the duration of the

advertisement, the time of broadcast (prime time/peak time), and of course the

popularity of the television channel on which the advertisement is going to be

broadcasted. The majorities of television commercials feature a song

orjingle that listeners soon relate to the product
http://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Music_in_advertisinghttp://en.wikipedia.org/wiki/Broadcastinghttp://en.wikipedia.org/wiki/Jinglehttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Music_in_advertisinghttp://en.wikipedia.org/wiki/Broadcastinghttp://en.wikipedia.org/wiki/Jingle


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Advertising on television usually means running a TV commercial, typically

between 15 and 60 seconds in length, but TV advertising can also include

sponsorships and product placement within television shows.


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Radio advertising

Radio advertising is a form of advertising via the medium ofradio. Radio

advertisements are broadcast as radio waves to the air from a transmitter to an

antenna and a thus to a receiving device. Airtime is purchased from

a station or networkin exchange for airing the commercials. While radio has thelimitation of being restricted to sound, proponents of radio advertising often cite

this as an advantage. Radio is an expanding medium that can be found not only

on air, but also online.

Some of the popular radio stations are as follows :-

Radio mirchi

Radio city

Red fm

Fm rainbow Radio one

Big 92.7

Online advertising

Online advertising is a form ofpromotion that uses the Internet andWorld Wide

Webto deliver marketing messages to attract customers. Examples of online

advertising include contextual ads on search,banner ads,Rich Media Ads, Social

network advertising, ads, online, advertising networks ande-mail marketing,

including e-mail spam.
http://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Radio_stationhttp://en.wikipedia.org/wiki/Radio_networkhttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Rich_Mediahttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Advertising_networkhttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/E-mail_spamhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Radio_stationhttp://en.wikipedia.org/wiki/Radio_networkhttp://en.wikipedia.org/wiki/Promotion_(marketing)http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Banner_adhttp://en.wikipedia.org/wiki/Rich_Mediahttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Social_network_advertisinghttp://en.wikipedia.org/wiki/Advertising_networkhttp://en.wikipedia.org/wiki/E-mail_marketinghttp://en.wikipedia.org/wiki/E-mail_spam


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Product placements

Covert Advertising Advertising in Movies

Covert advertising is a unique kind of advertising in which a product or a

particular brand is incorporated in some entertainment and media channels likemovies, television shows or even sports. There is no commercial in the

entertainment but the brand or the product is subtly showcased in the

entertainment show. Some of the famous examples for this sort of advertising

have to be the appearance of brand Nokia which is displayed on Tom Cruises

phone in the movie Minority Report, or the use of Cadillac cars in the movie

Matrix Reloaded.

Aston Martin cars are featured in recent James Bondfilms, most notablyCasino

Royale.

Hayabusa in Dhoom, John Abraham uses Hayabusa in the movie as a thief, fromthat time only many of Indians came to know about that bike.
http://en.wikipedia.org/wiki/Aston_Martinhttp://en.wikipedia.org/wiki/James_Bondhttp://en.wikipedia.org/wiki/James_Bondhttp://en.wikipedia.org/wiki/Casino_Royale_(2006_film)http://en.wikipedia.org/wiki/Casino_Royale_(2006_film)http://en.wikipedia.org/wiki/Aston_Martinhttp://en.wikipedia.org/wiki/James_Bondhttp://en.wikipedia.org/wiki/Casino_Royale_(2006_film)http://en.wikipedia.org/wiki/Casino_Royale_(2006_film)


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Surrogate Advertising Advertising IndirectlySurrogate advertising is prominently seen in cases where advertising a particular

product is banned by law. Advertisement for products like cigarettes or alcohol

which are injurious to heath are prohibited by law in several countries and hence

these companies have to come up with several other products that might have the

same brand name and indirectly remind people of the cigarettes or beer bottles of

the same brand. Common examples include Fosters and Kingfisher beer brands,

which are often seen to promote their brand with the help of surrogate

advertising.


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Billboard advertising:

Billboards are large structures located in public places which display

advertisements to passing pedestrians and motorists. Most often, they are located

on main roads with a large amount of passing motor and pedestrian traffic;

however, they can be placed in any location with large amounts of viewers, such

as on mass transit vehicles and in stations, in shopping malls or office buildings,

and in stadiums.
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Mobile billboards

Mobile billboardsare generally vehicle mountedbillboards or digital screens.

These can be on dedicated vehicles built solely for carrying advertisements along

routes preselected by clients, they can also be specially equipped cargo trucks or,

in some cases, large banners strewn from planes. The billboards are often lighted;

some beingbacklit, and others employing spotlights. Some billboard displays are

static, while others change; for example, continuously or periodically rotatingamong a set of advertisements. Mobile displays are used for various situations in

metropolitan areas throughout the world, including: Target advertising, One-day,

and long-term campaigns, Conventions, Sporting events, Store openings and

similar promotional events, and Big advertisements from smaller companies
http://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Billboardhttp://en.wikipedia.org/wiki/Backlighthttp://en.wikipedia.org/wiki/Backlighthttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Billboardhttp://en.wikipedia.org/wiki/Backlight


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In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes

placement of a product in visible locations in a store, such as at eye level, at the

ends of aisles and near checkout counters, eye-catching displays promoting a

specific product, and advertisements in such places as shopping carts and in-

store video displays.


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Coffee cup advertising

Coffee cup advertising is any advertisement placed upon a coffee cup that is

distributed out of an office, caf, or drive-through coffee shop. This form of

advertising was first popularized in Australia, and has begun growing in

popularity in the United States, India, and parts of the Middle Eas

Celebrity branding

Celebrity branding is a type ofbranding, or advertising, in which acelebrityuses

his or her status in society to promote a product, service or charity. Celebrity

branding can take several different forms, from a celebrity simply appearing inadvertisements for a product, service or charity, to a celebrity attending PR

events, creating his or her own line of products or services, and/or using his or

her name as a brand. The most popular forms of celebrity brand lines are for

clothing and fragrances. Many singers, models and film stars now have at least

one licensed product or service which bears their name.
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Celebrityhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Celebrity


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Public Service Advertising Advertising for Social Causes

Public service advertising is a technique that makes use of advertising as an

effective communication medium to convey socially relevant messaged about

important matters and social welfare causes like AIDS, energy conservation,

political integrity, deforestation, illiteracy, poverty and so on .Oglivy once said,

"Advertising justifies its existence when used in the public interest - it is much

too powerful a tool to use solely for commercial purposes.". Today public service

advertising has been increasingly used in a non-commercial fashion in several

countries across the world in order to promote various social causes


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Advertising Agency

Getting the best out of advertising is a highly skilled job. It requires the inputs

of experts in many different fields like writers, artists, photographers, designers,television production crews and many others. Even the biggest advertisers cannot

afford to employ all these experts. Almost all advertising is therefore arranged

through an advertising agency which provides the necessary skill to turn the

message into a memorable and effective advertisement. Advertising has not only

come to reflect pop culture but has also become an important element of

economic growth. Today, every person connected with the Indian economy or

public should be fully aware what advertising really is and why effective

advertising campaigns can be performed by full-service advertising agencies.

Advertising agency is one of the most important components of advertising

industry. It has played a significant role in the development of modern

advertising. The advertising agency has evolved to provide the specialized

knowledge, skills and experience needed to produce effective advertising

campaigns. It provides a quality range of service greater than any single

advertiser could afford or would need to employ. An advertising agency is a firmthat specializes in the creation, design and placement of advertisements, and in

the planning and execution of promotional campaigns for products and services

of their clients.

The Association of Advertising Agencies of America (AAAA) defines advertising

agency as An independent business organization composed of creative

and business people who develop, prepare and place advertising media for sellers

seeking to find customers for their goods and services.

The glamour, the unlimited expense accounts, and the exhilarating lifestyle -

all these popular portraits of life in the big-time advertising agency are

misleading. Advertising is demanding, challenging, hard work. It is also


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interesting and fulfilling. Advertising requires a mix of personal abilities,

considerable business skills, and an ability to work under pressure to meet

deadlines. Compared to larger industries, there are never many entry-level

positions open in advertising agencies (dozens rather than hundreds). And

competition is stiff. The industry, however, is constantly on the look 15 Project

Report on Advertising Agency out for skilled, bright, articulate, creative and

personable men and women with a wellrounded education and a good business

sense.

An advertising agency or ad agency is a service business dedicated to creating,

planning and handling advertising (and sometimes other forms of promotion) for

their clients. An ad agency is independent from the client and provides an outsidepoint of view to the effort of selling the client's products or services. An agency

can also handle overall marketing and branding strategies and sales promotions

for its clients. Typical ad agency clients include businesses and corporations, non-

profit organizations and government agencies. Agencies may be hired to produce

single ads or, more commonly, ongoing series of related ads, called an advertising

campaign.


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Advertising Process

The advertising process for professional staff and faculty positions

involves five basic steps:

1. Writing an Ad2. Getting Approval for the Text of the Ad

3. Estimating the Cost of the Ad

4. Placing Ads & Posting Announcements

5. Paying for Ads

STAGE WORK PERFORMED ATSTAGE

Briefing Stage Briefing from the client

Internal briefing to the creativeand media

Any research briefing if required

Creation Stage Ad campaign and media plandevelopment

Internal review and finalization Presentation to client andapprovals

Any pre-testing if required

Production Stage Budget and estimate approvals

Production of film, press ads,collaterals

Media Scheduling and mediabooking

All release approvals for creative& media

Post Production Stage Material dispatch to media

Media release monitoring

Any post-testing if required

Billing and collection


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Types of advertising agencies

Ad agencies come in all sizes, from small one- or two-person shops to largemulti-national, multi-agency conglomerates such as Omnicom Group, WPP

Group, Interpublic Group of Companies and Havas.

Some agencies specialize in particular types of advertising, such as print ads

or television commercials. Other agencies, especially larger ones, produce work

for many types of media. Lately, Search Engine Marketing (SEM) and Search

Engine Optimization (SEO) firms have been classified by some as 'agencies' due

to the fact that they are creating media and implementing media purchases of

text based (or image based in some instances of search marketing) ads. This

relatively young industry has been slow to adopt the term 'agency' however with

the creation of ads (either text or image) and media purchases they do qualify

technically as an 'advertising agency' as well as recent studies suggest that both

SEO and SEM are set to outpace magazine spending in the next 3-5 years.

Not all advertising is created by agencies. Companies that create and plan theirown advertising are said to do their work in house. Today selection of ad-agency

is very difficult. The advertiser should make list of all possible agencies that can

serve his purpose and the agency best qualified to provide required and effective

services are selected. Some advertiser may select more than one advertising

agency to handle effectively the various product lines.


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PHARMACEUTICAL ADVERTISING

NEED OF PHARMA ADVERTISING

During the 1980s and 1990s, the pharmaceutical industry developed and

launched products that provide the ability to treat people with many symptoms

associated with chronic diseases. For example, products known as beta-blockers

and ACE-inhibitors provided the first highly effective means to treat

hypertension. There is substantial evidence that over the past 15 years, products


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such as these have contributed significantly to a higher quality of life for millions

of people. However, taking medications for chronic disease for many people

requires a lifelong consumption of these products to maintain the improved

quality of life. Advertising of life-saving drugs and pharmaceuticals will help

millions of people throughout the world to lead a happy and healthy life.

ADVERTISING OF PHARMACEUTICALS IN

INDIA

The Indian market poses a challenging task to the advertising industry. The

advertising message has to reach a billion people, speaking more than 18

different languages and scattered all across the Indian subcontinent. The literacy

level also varies from above 90% in some states to below 40% in other states.

The per capita income varies from US$90 in poor states up to US$450 in some

rich North Indian states like Uttar Pradesh, Delhi, etc.


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Advertising of drugs and pharmaceuticals is really a big challenge. The current

Indian population has crossed the one billion mark. For public awareness,

providing the basic information about safety and efficacy of drugs is a very

difficult task. Currently, pharmaceutical companies, in their marketing strategy,

target physicians first. The medical representatives of different companies visit

practicing physicians personally and give them detailed information of drugs like

activity spectrum, strength, side effects, contraindications and mode of use. The

medical representatives do most of the advertising of the drugs. The other forms

of drug advertising include seminars and workshops organized by companies to

provide information about the drugs to the physicians and patients.

Nowadays, due to increase in literacy and health consciousness of people,

pharmaceutical companies feel the need to approach a large category of people to

inform them about their products and to earn more profits. In the Indian

population, advertisers can reach their audiences through television, radio, print

media, outdoor advertising, sales promotion and the Internet. As technology

changes, the advertising medium is also taking new dimensions. With the

advent of E-commerce and the Internet, today the Indian pharmaceutical

advertising industry is talking about netvertisement (advertising on the net) as

the newest medium for the marketers. If satellite channel brought in 50-plus

channels to Indian homes, direct to home (DTH) broadcast will probably bring in

500 channels. However, advertising on the net has an equivalent of 500,000

channels.

In terms of value, billings by industrial sectors are the largest market segment

ranked in decreasing order of size. Among the various advertising media,

Newspapers represent 40%, television (including satellite TV) 35%, magazines15%, radio 5%, and others 5% of the total expenditure in this industry.


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METHODOLOGY OF DRUG ADVERTISING

Advertising of pharmaceuticals includes different types like direct-to-consumer

advertising, prescription drug advertising, over-the-counter (OTC) drug

advertisingI. DIRECT-TO-CONSUMER DRUG ADVERTISING

Direct-to-consumer (DTC) advertising adds a new aspect to the doctor-patient

relationship. Many physicians and pharmacists now talk with patients about the

side effects, risks and costs of drugs as a result of advertising. Advertising


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prescription drugs to consumers benefits the public, improves their knowledge of

health, and may reduce health-care costs. People see advertisements for

stimulants, tranquillizers, antidepressants, antihypertensive drugs-all available

from foreign [Internet] sites. They self-diagnose, order the medication from an

Internet site, and take it.

Direct-to-consumer advertising helps people to be aware about their health; it

plays a vital role in lowering health-care costs and increasing success rates. The

earlier a condition is diagnosed, the greater the chances that it can be effectively

treated. In addition, early treatment options tend to be less expensive than later

and more invasive treatments. Consumers pay attention to both the risk and

benefit information in pharmaceutical advertisements. It is no surprise that an

earlier FDA study revealed that 87% of respondents heard claims about thebenefits of the advertised drug. DTC advertising may be particularly effective in

reaching the elderly and lower income consumers who have fewer information

sources than high-income consumers.

According to a survey, 62% of consumers in United States between the ages of 50

and 64 said DTC had made them more aware of medication options they had not

previously considered. Many critics of DTC advertising are concerned that

physicians will be pressurized into prescribing pharmaceuticals against their will.

However, according to the US FDA survey, only 50% of patients were given a

prescription for the drug that they asked about. It may in fact be surprising that

this figure is not higher, given the fact that the patients are visitingtheir physician

because of a condition similar to that described in the advertisement.

Increased spending on direct-to-consumer advertising and R and D indicates that

the pharmaceutical industry is becoming still more competitive as companies vie

for market share. If market forces are allowed to operate, that competition will

eventually lead to lower prices. Competition in a market free of excessive

regulation is the best way to keep drug prices low. Price controls almost

invariably inhibit research and development and result in shortages and

rationing as the experiences of Europe and Canada demonstrate. By contrast,

when drug companies face the need to compete more effectively, they voluntarily

reduce prices and seek new ways to get innovative products to market faster.


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II. PRESCRIPTION DRUG ADVERTISING

Prescription drug advertising to consumers is another area that may generate

challenges to the right to advertise and which will grow in importance as the

nation continues to grapple with the complexities of health-care costs. This is an

important legal basis for the activities of pharmacists, since the medicines

available without prescription can be supplied to pharmacy customers without a

medical prescription. At the same time, a legal framework for the advertising of

pharmaceuticals was set up, which clarifies that only medicines available without

prescription can be advertised to the public.

For the moment, the whole pharmaceutical legislation is in a process of

codification. This means that a single piece of legislation will be put together

without any change of contents. In the nearby future, this type of drug

advertisement in India will be possible.

III. OVER-THE-COUNTER DRUGS ADVERTISING

According to international norms, a drug is often moved from prescription to the

over-the-counter category, once its side effects are known. Currently in India,

there are no specifications as to which drugs can be sold over the counter.

Products on an over-the-counter (OTC) list can also be advertised through mass

media. However, no advertising is possible now as no over-the-counter list exists.

Advertising for 15-20 products in the home remedies categories does take place

on the basis of an unofficial over-the-counter list.

Once this list is formulated, any drug on this list can be sold through general

stores, cigarette stalls, etc., marginalizing the role played by chemists. Companies

will also be able to go in for aggressive advertising for the over-the-counter

products and extend their market reach through various types of retail outlets.

To formulate an over-the-counter list, the government needs to amend the drugs

and cosmetics act. A sub-committee set up by


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the drugs consultative committee is investigating the issue under the

chairmanship of the joint drugs controller of

India and is likely to submit a report within the next 6 months.

AAKANSHA PROFILE


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MSD PROFILE


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countries worldwide. The Merck Manufacturing Division employs more than 12,

000 people at locations in 25 countries.

Merck & Co. Inc., USA success has always been based on innovation and

scientific research. A commitment to excellence in research is at the heart of its

philosophy and strategy. Since the founding of its research laboratories over 70

years ago, Merck & Co. Inc. has developed more than 100 new medicines and

vaccines.

Currently Merck's priority areas of focus in therapeutic research include

Alzheimer's disease, atherosclerosis, cardiovascular disease, diabetes, novel

vaccines obesity, oncology, pain, and sleep disorders. These therapeutic areaswere carefully chosen based on a set of criteria including unmet medical needs,

scientific opportunity and commercial opportunity. Within these therapeutic

areas, Merck & Co. Inc. has committed resources to achieve research breadth and

depth and to develop best-in-class targeted and differentiated products that are

valued highly by patients, payers and physicians.

MSD INDIA

MSD was incorporated in India on 3rd December 2004. Since then the company

has moved quickly in laying the foundation for a successful business in India. A

business that is differentiated by its focus on putting patients first and launching

innovative products those are relevant to India.

MSD currently operates within three therapeutic areas, namely critical care,

metabolic and vaccines. The company initiatives and new drugs address unmet


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Elocon may also be used for other purposes not listed in this medication guide.

Advertising in Pharma Industry

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