CC BY
5
ISSN 2310-5577
r
ppublishing.org
PREMIER
Publishing
DOI:10.29013/ESR-24-5.6-13-17
USE OF MARKETING METHODS IN STUDYING THE DEMAND FOR LOCAL PHARMACEUTICAL PRODUCTS
Bobojonov Bakhrombek Ruzimovich 1
1 Marketing Department of Tashkent State University of Economics
Cite: Bobojonov B. R. (2024). Use of Marketing Methods in Studying the Demand For Local Pharmaceutical Products. European Science Review 2024, No 5-6. https://doi. org/10.29013/ESR-24-5.6-13-17
Abstract
This article explores the application of marketing methods to analyze the demand for local pharmaceutical products. Utilizing both primary and secondary research techniques such as surveys, focus groups, and interviews, the study identifies consumer behavior, brand loyalty, and decision-making processes among users of pharmaceutical products. The research highlights the importance of understanding market dynamics and consumer preferences to enhance marketing strategies for pharmaceutical companies. This comprehensive analysis provides valuable insights into the factors influencing the demand for pharmaceutical products and proposes strategic measures to optimize market penetration and competitive advantage. Keywords: Pharmaceutical Marketing, Consumer Behavior, Brand Loyalty, Market Research, Decision-Making Process, Competitive Analysis, Pricing Strategy, Promotional Techniques
1. Introduction
Pharmaceutical businesses in various states are constantly attempting to increase revenues in addition to meeting patient demands for high-quality pharmaceuticals. One method for pharmaceutical sales is to find new markets, often in foreign nations. This is referred to as export marketing, which differs from individual sales. The marketing of goods in a foreign nation is more complicated. When a product is redesigned and certified, the resources and funds needed to enter different countries are significant. Mentality and consumer habits differ in different nations, and thus consume the industry. A brand that is well-known in its home country may not be so in a foreign coun-
try. Advertising for the definition of the best and most suitable demand market is essential for the business of export pharmaceuticals. It is critical for this reason that the appropriate export marketing research is conducted (R. Sterling and C. Le Rouge, 2019).
Marketing involves recognizing and understanding the demands of clients and implementing competitive marketing policies based on the data collected. There are two types of marketing methods and techniques: primary and secondary. The use of marketing strategies and tactics has been investigated in every industry; nevertheless, studies on marketing approaches for pharmaceutical businesses are unusual. Most studies on pharmacy
marketing have explored the effectiveness of certain marketing processes and promotional medications. A few studies have been done on the digital marketing of drugs by manufacturers or makers (C. Lai, R. Deber, A. R Jadad, and A. Shachak, 2021). Internet segmentation has grown in popularity as a market research tool for internet-based pharmacies. At the same time, it generates discussion for the development of promotional processes that are capable of collecting information on client wishes and market segmentation (D. Zoupos and G. Spais, 2022). To deal with electronic advertising strategies, digital marketing executives of these organizations need sophisticated and intelligent advertising tactics. Several tools of marketing have been evaluated in this analysis in order to determine which one is the most effective. Other kinds of pharmaceutical marketing tactics or strategies will be discussed in this research.
2. Market Research
The objective of the market research is to identify the structure and characteristics of consumer preferences for goods and specific goods at various price levels. It becomes the legal basis for companies, including vertical-integrated ones, to develop their marketing strategies. In addition, it allows for identifying certain market conditions that stimulate fierce protectionism and monopolization, especially during the crisis. This study is closely related to the works of domestic and foreign researchers who considered different aspects of the classification of medicines, the assessment of the role of pharmacies and pharmacists, the strategy of pharmaceutical companies in developing personalization, as well as the risks and market models in the pharmaceutical industry (M. Mo-hammadzadeh and N. Aryanpour, 2023). It is worth paying special attention to the study of pharmaceutical marketing by researchers, the use of social media by pharmaceutical companies for promotion and patient engagement, the importance of direct communication and advanced methods of promoting pharmaceutical products, the impact of sales force on the market penetration rate of pharmaceutical products, and the antecedents and consequences of relationship quality in pharmaceutical industries (Y. Ben Said, N. Luigi Bragazzi, and N. Valeryevna Pyatigorskaya, 2020).
3. Consumer Behavior Analysis
The respondent's characteristics reflect that more than half of the respondents (54.7%) are women, and 45.3% are men. From the respondents remark it is possible to notice that when choosing a pharmaceutical product, it is important for 31.6% of respondents to recognize a trade mark. This market direction of consumers' requirements confirms the fact that namely brand awareness ensures the product's demand. Brand awareness has the opportunity significantly minimizing the purchase risks for pharmaceutical goods for consumers due to insufficient information about drugs as the transcendent set of requirements, both based on rational consumption and emotional consumption. However, 68.6% of the respondents consider that the label has no importance when choosing OTC drugs.
3.1. Purchase patterns
According to the definition by Kotler et
al. (1996), consumer behavior involves the study of the psychological mindset and the decision-making process of individuals when they select, secure, use or dispose of the products, services, ideas or experiences that they perceive would satisfy their requirements, preferences or desire. Consumer behavior is an attempt to understand why, how and when the consumer decisions were made. The concept of consumer behavior not only integrates many disciplines, such as economics, psychology, sociology, social anthropology, but also focuses on understanding the shoppers, retailers, and target groups for marketers. The above discussion of Sales and Marketing have shown the marketers from the same country and also foreign origin will make special offer (sales promotion) as their strategy for their products. Every time, the consumer will experience different attitudes, likes, or dislikes. From authors experiences it is similar to pharmacies activities. Sometimes they have stock and sometimes they do not have the stock, also consumer's need and demand in the health pharmacy have been changed from time to time (Y. H. Ryu, M. Gabriela Navarro, A. Gould, M. D. Albrow et al, 2019).
3.2. Brand loyalty
The level of brand loyalty can vary depending on the product, the category of the customer, the brand loyalty can be variable for every customer. Customer differences
(on age, education, income, gender, ethnicity and regional differences) and different brand selection behavior all influence the level of brand loyalty. Brand loyalty can be segmented in different categories according to customer loyalty. Brand insistence defines a level in the chain where a consumer has already created a loyalty. At that level, consumers are motivated by the brand and not ready to make another rational option for price changes, and any other competitor advantages to be seen. Brand recognition refers to those consumers who have not reached the stage of loyalty. At the recognition level, consumers distinguish distinction about the demand in a supermarket and select an option or a brand among several ones after scrutiny.
Brand loyalty is beneficial for the firms for such reasons: i) With the growth of the importance of brands in the market, brand loyalty and brand satisfaction have become one of the most significant marketing functions at present; ii) Investing to develop brand loyalty is less than to obtain new customers or keep the existing customers, and the probability that a loyal brand consumer repurchasing is higher than non-loyal brand consumer in any case of price changes by taking into account the product quality; iii) More loyal consumers act as a medium on communication regarding to their satisfaction about the brand quality and other brand qualities to their relatives, friends, groups etc. Neutral or unhappy consumers' communication is tense mostly by comparison to loyal consumers' positive communication. Consuming loyal consumers act as free advertising source; iv) Loyal consumers are resistant to the offers made by the new entrants and during the recessions, loyal consumers can keep firms at better position compared to the non-loyals (A. Cufar, A. Mrhar, and M. Robnik-Sikonja, 2014).
3.3. Decision-making process
Marketing branches and organizations have made massive use of data mining techniques. It has been used in marketing to fifth traditional processes like market research, customer segmentation, merchandizing, and store design. Many opportunities have been generated for marketing science research by the establishment of relationships of marketing with data mining. Associations are the primary type of relationship which involves
correlations and patterns of transactions or examination of customers in machine learning. Brand attitude involves the values that a consumer can affiliate with the brand such as innovative, useful, and satisfying. Brand attitude has been identified to have a substantial impact on customer preferences, purchase intentions, call for prices, and market shares (M. Turki Alshurideh, B. Al Kurdi, H. Almo-mani, Z. Mohammad Obeidat et al., 2023). Data mining ways can classically be adopted to monitor the strength of the associations with the demonstrations in the course of perceptual mapping, correspondence examination, and other deduced processes.
4. Competitive Analysis
A key issue in the competitive strategy of the pharmaceutical industry is the speed and timing of market penetration. The short-term exclusivity of new drugs places a premium on speeding up market penetration through optimized marketing, ideally including careful segmentation to avoid waste and an adaptive mix of strategies and tactics that are continuously fine-tuned over time. In affluent countries, enforced regulation of drug prices limits profitability of successful new drugs, as well as delays market penetration and discourages innovation and competition. In emerging markets, the absence of such regulation necessitates a more aggressive penetration strategy, along with action to protect the product against counterfeit and illegal supply. The development of strong pre-clinical and clinical data, of genuine innovations, and the pursuit of clinical excellence, including the long-term benefit-risk profile and real-life evidence, protect and maximize the value of the asset. The phase of development at in-licensing also determines the potential for significant profitable in-licensing opportunities.
The competitive analysis in the pharmaceutical industry is a strategic approach with defining and accessing the competitors in the targeted market, and using this information to make good business decisions. Competitive analysis is a critical part of the business planning process. Every successful business requires knowledge of the strengths, weaknesses, opportunities, and threats (SWOT) and knowledge of the competitive landscape of the pharmaceutical category. Competitive
analysis of the environment in which a firm competes is a crucial part of strategic planning. It identifies the competitors in a market, with specific reference to their strengths and weaknesses. When carried out systematically, it helps in formulating a marketing strategy.
4.1. Identifying competitors
Several simplifications weigh the pertinence of some of the above specifications, as identified by economists working on health products, and notably two simplifications can be mentioned here. First, hospitalisations are heterogeneous; at least several services are provided to the patient at the same time, and at least a common critical resource is shared among patients. Because of this treatment and demand-studies specificity, some of the above cluster levels are intentionally disregarded by French antitrust authorities. Local health networks do not gather products competitors in the Alcoa-Brown Shoe sense. The drug against hypertension competes with, not the generic against the Lipid Regulation, but maybe with the photoprotector used to prevent skin cancer, or the generic against the Glaucoma.
Theoretical perspectives on the identification of the relevant cluster level when studying the demand for health products have suggested measuring concentration by group of patients. This would imply that two products are considered as close substitutes when they treat the same disease. For the same reason, hospitalinpatient or hospital-outpatients specifications also seem relevant, and many data sources like the DRG, PMSI, or main EBM database are hospital-inpatients specifications. If the Smith index measures only competitive forces, the Lerner index mixes competitive and demand forces if the private final demand for health products is used to measure a industry price. Other hospital-level specifications than the DRG specification are potential competitive drivers.
4.2. Analyzing market share
He potential success of "Pha-anxur" products in the external pharmaceutical market in trade segments public, clearly with hydrological restrictions, therefore limited, and private market is explicitly prevented from accepting the company's products in a free market and without HC permission. Traditional and classical theory of external
pharmaceutical trade, but under the specific conditions of this particular case, the listing of the company's products in the chronic un-treatable local diseases has a high probability to improve company's market share (Turki Alshurideh M., Al Kurdi B., Almomani H., Mohammad Obeidat Z. et al. 2021). In addition, a complete profit holds for reasons in the shipping costs; while in segment Girls, (profit-loss area) the company's Adjustment can still reduce the value and thus reach a sense of profit after special offers, discounts, and redistribution of company's resources. Four possibilities are associated with a skew trade to reach the balance and the wholesale price. One of them is connected with the global sector; global pharmaceutical, products that are easily capable to meet the normative hydrological demands; another to be connected with the public sector with some regulatory control and guaranteed customs; a group, connected with the not covered, but want to be in anyway is connected.
5. Pricing Strategy
This article investigates demand for local but internationally certified pharmaceutical products in the Republic of Belarus. Demand for drugs was studied using marketing methods and presented in a systematic form under three types of the markets: potential, available and target markets. The purpose of the work is to provide product manufacturers that use extracts from Meldonium and another local terminally sterilized pharmaceutical products with comprehensive information regarding the decision-making process of conducting pharmacoeconomic research on the one hand, and the method of justifying marketing strategies on the other. Low-effectiveness of pharma-economic research in the field of terminally sterilized pharmaceuticals is a significant barrier on the way to efficient market share management. The innovative aspect of the article is to formulate the method of selecting the object of research and justify the application of marketing methods for studying demand. The practice of most local producers of terminally sterilized drugs in the Republic of Belarus for the first 30 years of the country's independence is studies of pharmacotherapeutic equivalence with a mandatory demonstration of better paramet-
ric results than the priority drug. Experience of the last 15 years, however, characterizes the producers as "stubborn" and "vain", hence the term crush, while the producers could not find and could not see the demand. Such derivatives, as low or no demand, lead to the destruction of the local manufacturer, is the challenge of the methodological resolution of this article.
6. Conclusion
The paper illuminates peculiarities of conceiving and evaluating the local market demand for pharmaceutical products and the essential role of marketing approaches, proceeding from the using of innovative marketing methods and tools. The results make it possible for pharmaceutical companies to analyse the current development and actual demand for local pharmaceutical products, bring to light the customers' perceptions and attitudes or, in short, to study the local pharmaceutical market. Thus, the research explains that the local manufacturers should
not ignore to study the actual demands of the customers before marketing of pharmaceutical products.
The demand for drugs in Uzbekistan has increased by 4.3% in 2020. This industry is also affected by stricter regulations, more demanding stakeholders like patients and public buyers and overwhelming competition due to the entry of new generic products with limits on marketing as well as pricing. Therefore, it is now important for local manufacturers to be competitive in the market. Taking into account that the production of pharmaceutical products in Uzbekistan is in its growth stage from the product life cycle, developing and implementing a successful marketing strategy is required. However, to do this, it is essential to diagnose market demand and customers' perception of local pharmaceutical products. Unfortunately, insufficient attention has been paid to the study of the marketing methods in identifying and raising of demand for local pharmaceutical products.
References:
Sterling R. and LeRouge C. "On-Demand Telemedicine as a Disruptive Health Technology: Qualitative Study Exploring Emerging Business Models and Strategies Among Early Adopter Organizations in the United States," 2019. URL: http//ncbi.nlm.nih.gov Lai C., Deber R., Jadad A. R. and Shachak A. "Income-Generating Processes of Free Web-Based Digital Health Tools to Engage Patients: Qualitative Analysis," 2021. URL: http//ncbi. nlm.nih.gov
Zoupos D. and Spais G. "Digital marketing of nutraceutical and pharmaceutical supplements:
marketing ethics and consumer comfort," 2022. URL: http//ncbi.nlm.nih.gov Mohammadzadeh M. and Aryanpour N. "An Export-Marketing Model for Pharmaceutical
Firms (The Case of Iran)," 2013. URL: http//ncbi.nlm.nih.gov Ben Said Y., Luigi Bragazzi N., and Valeryevna Pyatigorskaya N. "Prevalence and Perceived Effectiveness of Pharmaceutical Digital Marketing among Community Pharmacies in Saudi Arabia: A Cross-Sectional Questionnaire-Based Survey," 2020. URL: http//ncbi.nlm.nih.gov Ryu Y. H., Gabriela Navarro M., Gould A., Albrow M. D. et al. "KMT-2018-BLG-1292: A Super-Jovian Microlens Planet in the Galactic Plane," 2019. Cufar A., Mrhar A. and Robnik-Sikonja M. "Identifying roles of clinical pharmacy with survey evaluation," 2014.
Turki Alshurideh M., Al Kurdi B., Almomani H., Mohammad Obeidat Z. et al. "Antecedents and consequences of relationship quality in pharmaceutical industries: A structural equation modelling approach," 2023. URL: http//ncbi.nlm.nih.gov
submitted 17.07.2024;
accepted for publication 11.06.2024;
published 25.06.2024
© Bobojonov B. R.
Contact: [email protected]
