Marketing Techniques of Pharmaceutical Companies Essay

Ads for pharmaceutical drugs are everywhere. They are in magazines, on television and radio, on billboards, and on the little bags that you get from the pharmacist. These days it is difficult to get away from all the drug advertising. All these ads are for products that require a doctor's prescription. The goal of advertising is to increase profits. By advertising so heavily for drugs that the majority of the population does not need, pharmaceutical companies attempt to create as large a consumer base as they can. In advertising directly to the consumer, the drug companies accomplish two objectives. First, they get information directly to the consumer. Second, they promote the product and

Despite this, the industry did not alter its ways, maintaining that its ad campaigns were "educational," and that people were able to make their own decisions about what they purchased (Payer 66). However, it is evident that the advertisements produced by the pharmaceutical industry are designed for the very purpose of making it difficult for people to make these decisions independently. This marketing produces a large number of often deceptive, misleading tactics which have a large influence on both consumers and medical practitioners. The chief beneficiaries of this marketing are not the consumers but the pharmaceutical companies themselves.

There are proponents of DTC prescription drug ads. They argue that “the ads inform patients about diseases and possible treatments, encourage people to seek medical advice, help remove stigma associated with medical conditions, and provide needed sales revenue to fund costly research and development (R&D) of new drugs (Drug Ads ProCon.org).” On the flip side opponents argue “that DTC drug ads misinform patients, promote drugs before long-term safety-profiles can be known, medicalize and stigmatize normal conditions and bodily functions like wrinkles and low testosterone, waste valuable medical appointment time, and have led to our society’s overuse of prescription drugs (Drug Ads ProCon.org).”

The twenty-first century has seen pharmaceutical companies grow in unprecedented size and strength. Due to the unprecedented growth the larger pharmaceutical companies have gained leverage and power in the prescription drug industry, but they lack innovation to market and they seek ways to help the business continue to increase its profits. The pharmaceutical industry was once ethically sound and was a valuable player in the development of human health. However, overtime with the lack of innovation pharmaceutical companies are becoming an unethical market that exploits patients, doctors and anyone else it can to increase its profitability. With eyes only on profitability this can create a hazard for patients because there

One primary goal of Pfizer is to deliver sustained, excellent product by outperforming Pfizer’s competitors and must differentiate itself adequately from its competitors. Competitive advantage is central to strategic management in that it will produce and sustain superior performance. To be competitive in a business environment, often it requires the company to have a product or service different and better than other organizations competing in the same marketplace. According to Wadman (2007) “Pfizer and the rest of the pharmaceutical industry need to develop more sophisticated drugs, targeted at a smaller number of people more quickly, efficiently and at a lower cost” (p. 1). Once Pfizer’s strengths, weaknesses, opportunities, and threats are assessed and analyzed, managers must decide a set of strategies to reduce or eliminate its weaknesses and capitalize on its strengths and maximize opportunities. An example is Porter’s three generic strategy approaches of differentiation, cost leadership, and focus strategy by using differentiation strategies to differentiate Pfizer from its competitors. Strategies are essential; however, it is useless unless they are effectively implemented levels of the company. Business-level strategies are typically developed and implemented by heads of business units and are first approved by top management. The functional level strategy is the last level that focuses on developing strategies for managing the various departments to

Annually, the US spends $300 billion dollars on pharmaceutical drugs. This is due to the over-diagnosing of certain conditions. Everyday, Americans are exposed to an enormous amount of advertisements for medications of all kinds. For example, 1 in 10 Americans are taking

New Zealand is the only other developed nation in the world where prescription drugs are advertised directly to consumers. The American pharmaceutical industry used to abide by a term “ethical marketing,” meaning that drug companies could only market to physicians. On the other hand, there is a valid argument for allowing direct-to-consumer drug advertisements as the flow of information and transparency are beneficial. However, there obviously needs to be some checks and balances. This experiment began with a print advertisement in 1981 in Reader’s Digest and the first TV ad took place in 1983. At that time, the FDA had several rules in place requiring companies to offer a fair and balanced presentation. In sum, this was a responsible era of advertising.

Direct-to-consumer advertising of prescription drugs has attracted several controversies, especially from people opposed to it. Some of the major arguments that have been raised include the possibility of the advertising to be a blatant manipulation of the public, the huge potential benefits to pharmaceutical companies and significant damages to the health care system. However, direct-to-consumer advertising of prescriptions drugs should be carried out properly because the advantages of this measure outweigh its disadvantages. One of the major reasons for the advertisement of

The pharmaceutical industry along with the manufacturers of healthcare products and technologies often encourage the misappropriation and distribution of marginally beneficial products and technologies in the healthcare industry. These companies often use various advertising methods to influence members of the public to request their products and services without adequate knowledge of their effectiveness and implications to their medical condition.

The management team at the over-the-counter cold medicine (OCM) group of Allstar Brands is looking to utilize revenue generated by Allround to help fund new opportunities in emerging markets. Therefore, it is critical that Allround maintain its market-leading position in terms of market share, profitability, and sales in order to fund these new initiatives.

However, some politicians argue that the current system of regulation is inadequate. Congressman Tom Allen of Maine initiated a bill to the House of Representatives on May 23, 2002 entitled the “Accuracy in Pharmaceutical Advertisements Act.” In it, he advocates that violators of the FDA’s regulations concerning DTC advertising of prescription drugs should be subject to civil penalties. Under current statues, violators receive a letter from the FDA, either a Notice of Violation or ‘untitled’ letter or a warning letter. While the ‘warning’ letters are reserved for more serious violations, both request corrective action. Then the pharmaceutical company is given a period of

The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.

There are many direct to consumer advertising for prescription drugs. On television, magazines, radio etc, you see the most recent advertisements for prescription drugs. After some people see the advertisements they soon rush over to their doctor and their illness and life would be perfectly pain and stress free. Making the public conscious of options for treatment is not a bad thing. But these false advertisements are misleading consumers onto unnecessary treatment.

Think about how often you are watching your favorite show on television and all of a sudden you are interrupted by a commercial. The commercial begins with the following words, “Do you suffer with …” and this question follows with the following sentence, “if so, then talk to your doctor about … (the name of the medication that is being advertised)”. These prescription drug advertisements are being shown all over the United States multiple times a day. It is these advertisements that are used for publicity and marketing that are affecting Americans. The majority of Americans engage in watching television. The prescription drug advertisements do have a positive impact on Americans but, these advertisements do more harm than good.

Pharmaceutical companies should attempt to be as transparent as possible when marketing prescription drugs to the public. Their marketing efforts should not only convey the benefits of the prescription drug, but also easily convey the possible risks associated with the prescription drugs. Many patients may tend to think the benefits outweigh the potential risks of prescription drugs and may pressure their physician to prescribe it. Due to the way the prescription drug is marketed, the consumer may believe the