MANAGEMENT AND MARKETING IN PHARMACY

1 The Ministry of Health of Ukraine National University of PHARMACY MANAGEMENT AND MARKETING IN PHARMACY Textbook for Foreign Students of Higher Pharmaceutical Schools In two parts Part II MARKETING in PHARMACY Edited by Professor Z. Mnushko Kharkiv Publishing center Dialog 2016 UDC (075) LBC (2)+ я73 M50 Approved by Ministry of Education and Science of Ukraine (letter No 1/11-16529 dated October 15, 2012) Authors: Mnushko Zoia M., Pestun Iryna V., Timanyuk Iryna V., Sofronova Iryna V., Aliekperova Nataliia V. Reviewed by: Grochoviy T. Head of Department of Pharmaceutical Science of I. Ya. Gorbachevsky Ter-nopil State Medical University, Doctor of PHARMACY , Professor; Kabachna A. Professor of Department of MANAGEMENT and Economics in Family Medicine of Kharkiv Medical Academy of Postgraduate Education, Doctor of PHARMACY , Professor; Toryanyk L.

2 Associate Professor of Foreign Languages Department of National University of PHARMACY , PhD in Pedagogy, Associate Professor. MANAGEMENT and MARKETING in PHARMACY [Electronic resource] : the textbook for foreign students of higher pharmaceutical schools : in 2 parts / Z. Mnushko [at al.], ed. by prof. Z. Mnushko ; National University of PHARMACY . Electronic text data. Kharkiv : Publishing center Dialog , 2016. Part II : MARKETING in PHARMACY . 1 electronic opt. disk (CD-R). 3,7 Mb. System requirements: Adobe Acrobat Reader. Title from the disk label. ISBN 978-617-7357-01-7 ISBN 978-617-7357-03-1 (Part II) The textbook presents the basic theoretical principles of MARKETING and characteristics of pharma-ceutical MARKETING , including MARKETING studies of medicines as a commodity, their development and market promotion, product and assortment policy of pharmaceutical companies and PHARMACY , pricing, wholesale and retail sales and use of the complex of MARKETING communications at the pharmaceutical market.

3 The nature and specificity of the international MARKETING in PHARMACY is described. The textbook is recommended for foreign students of higher pharmaceutical schools. UDC (075) LBC (2)+ я73 ISBN 978-617-7357-01-7 Z. M. Mnushko, I. V. Pestun, I. V. Timanyuk, ISBN 978-617-7357-03-1 (Part II) I. V. Sofronova, N. V. Aliekperova, 2016M50 3 CONTENT INTRODUCTION .. 6 CHAPTER 1. FUNDAMENTAL RULES IN MARKETING .. 8 Value of MARKETING .. 8 The characteristic of the market .. 9 Characteristic, structure and organization of pharmaceutical market .. 11 Nature, evolution, principles and functions of MARKETING .. 13 CHAPTER 2. MANAGEMENT OF PHARMACEUTICAL MARKETING .. 26 Process of MARKETING MANAGEMENT .. 26 MARKETING MANAGEMENT and its evolution .. 30 The organizational structure of services 31 CHAPTER 3. MARKETING RESEARCH AND THE information .

4 MARKETING information SYSTEMS .. 38 The purpose, objects and methods of MARKETING research .. 38 The value of the pharmaceutical information .. 44 MARKETING information systems .. 47 CHAPTER 4. STUDYING OF PHARMACEUTICAL MARKET .. 55 Research of the market of medical products .. 55 Studying of quantitative characteristics of the market .. 56 Market segmentation .. 58 Research of consumers and a typology of medicines consumption .. 61 Studying of the need for medical products .. 63 Studying of a supply and demand of medical products .. 64 CHAPTER 5. THE PRODUCT IN MARKETING ACTIVITY. ASSORTMENT OF MEDICAL PRODUCTS. THE COMMODITY POLICY OF PHARMACEUTICAL ENTERPRISES AND PHARMACIES .. 71 Consumer properties of pharmaceutical goods .. 71 The product s life cycle .. 75 Positioning of pharmaceutical goods .. 80 Competitiveness of pharmaceutical products and MANAGEMENT of quality.

5 82 MARKETING strategies of pharmaceutical enterprises .. 85 4 Assortment policy of pharmaceutical production enterprises and 91 Commodity policy of the pharmaceutical enterprises .. 94 Trade mark and goods packing. Brand .. 96 Innovative activity of the pharmaceutical enterprises .. 101 CHAPTER 6. PRICES, PRICING, THE PRICE POLICY OF PHARMACEUTICAL ENTERPRISES AND PHARMACIES .. 111 Theoretical bases of market pricing .. 111 Prices classification .. 112 Pricing factors .. 114 Demand, supply and the price .. 119 Establishment of the price for the goods .. 125 CHAPTER 7. PHARMACEUTICAL SALES UP COMPANIES .. 139 The concept of MARKETING . Sales policy ventures .. 139 Channels, their function and structure .. 140 MANAGEMENT of distribution channels .. 147 Methods and systems of distribution. The system of distribution of product pharmaceutical.

6 152 Wholesale. Features of the wholesale trade of medicines .. 159 Retail Trade. Pharmacies as retail outlets medicines .. 165 Concept and types of logistics. Features of the logistic approach to the MANAGEMENT of the supply activities in PHARMACY .. 168 CHAPTER 8. MARKETING COMMUNICATIONS POLICY .. 181 Complex of MARKETING communications and its formation .. 181 Advertising and its role in the communication policy of the enterprises .. 190 The components of the process of advertising .. 195 The functions of advertising of medicines .. 197 Regulation of drug promotion .. 200 Planning and organization of advertising campaigns .. 206 Sales promotion of pharmaceutical goods .. 209 Personal selling. Network and direct MARKETING . Branding .. 212 Public 219 Exhibitions and Trade Fairs .. 221 Advertising on point of selling. Merchandising in pharmacies enterprises and institutions.

7 224 5 CHAPTER 9. MARKETING 233 CHAPTER 10. THE INTERNATIONAL MARKETING .. 243 Essence and specificity of international MARKETING .. 243 Environment of international MARKETING .. 247 Forms of entering of pharmaceutical companies on foreign markets .. 252 Strategy of International MARKETING .. 258 MARKETING research of foreign markets .. 262 Trade policy of international companies .. 271 Pricing policy in international MARKETING .. 277 Commodity distribution policy in international MARKETING .. 286 Promotion of medicines in foreign markets .. 292 Office of international MARKETING .. 297 LITERATURE .. 307 6 INTRODUCTION Development of market relations and competition in the pharmaceu-tical market predetermines the necessity of scientific and practical use of the main provisions of MARKETING and its characteristics in the area of drug supply of the population.

8 MARKETING as a philosophy of pharmacies and pharmaceutical companies contributes to a successful response to changes in the environment, the demands and needs of consumers, provides man-agement decisions based on market research and analysis capabilities of the organization. Knowledge and use of MARKETING provides success to the company in the competition, penetration into new markets, conquest of customers, and ultimately achievement of the objectives aimed at making profit. MARKETING has a wide application of borders, from the moment of planning and the product development to after-sales service and the study of the consumer s reaction to it. MARKETING is important when entering in-ternational markets, increasing exports. At the same time the areas and use of MARKETING are expending. To-day, it is not only the production and sale of products but also services, sci-ence, education, activities of state bodies of regulation and control, etc.

9 In connection with this MARKETING knowledge is important not only for pro-fessionals in MARKETING , but also for representatives of many other special-ists, including PHARMACY . Along with the theoretical bases of MARKETING the material in this text-book contains features of pharmaceutical MARKETING that reflect the commod-ity specificity of drugs and the use of the MARKETING mix in PHARMACY . In accordance with the curriculum of MANAGEMENT and MARKETING in PHARMACY course, discusses the general characteristics of the market, socio-economic characteristics of the area of drug supply of the population, the concept of social and ethical MARKETING are considered. Among the components of MARKETING MANAGEMENT attention is paid to the study of in-dustry trends and market research of the consumer s motivation, determi-nation of the need and demand for drugs.

10 The significance of MARKETING in- formation is shown; principles of forming MARKETING information systems are given. The chapters of the textbook reveal the nature and directions of the practical application of the MARKETING mix: product, its organization distribution, pricing, MARKETING communications. Along with the classical concepts, the characteristics of common tasks, methods, and MARKETING 7 events of companies there is also the information concerning the status and trends in development of each direction, the results of scientific mar-keting research, generalized the experience and achievements of foreign pharmaceutical firms. Particular attention is given to creation and intro-duction of new medicines to the market, formation of the assortment of medicines in pharmaceutical companies, features of pricing and a complex of MARKETING communications at the pharmaceutical market.