Pharmaceutical marketing product development

1. Product Management-I
Nasir Hussein

2. 2
Dimensions of a Product
• Core Product
• Tangible Product
• Augmented Product
• Promised Product

3. 3
Core Product:
• what the consumer really wants from the product
• buys bran cereal for family…
…wants healthy family
• it’s not the product itself, it’s what the
product can bring about

4. 4
Tangible Product:
• the product itself
• appearance • quality • functionality
Augmented Product:
• the product plus accompanying services
• service/maintenance
• buying environment
• warranties & return policies

5. 5
Promised Product:
• status the product will bestow
• dependability • trade-in value
• any aspect of the product that helps
bring about the core product

6. 6
Product Classifications
• convenience goods
• shopping goods
• specialty goods

7. Steps in Managing Products

8. Criteria for Effective Objectives
• S
• M
• A
• R
• T

9. Quality as a Product Objective
• Product quality is the overall ability of a
product to satisfy customer expectations
• Dimensions of product quality
– durability
– reliability
– precision
– ease of use
– product safety
– aesthetic pleasure

10. Product Life Cycle

11. Marketing Mix During Product Life Cycle
• The PLC explains how features change over
the life of a product
• Marketing strategies must change and evolve
as a product moves through the PLC

12. MARKETING MIX
• Controllable variables:
– Product
– Price
– Promotion
– Place

13. How stages of the product life cycle relate to a firm’s
marketing objectives and marketing mix actions

14. Introduction
• Full-scale launch of new product into marketplace
• Sales are low
• Little competition
• Limited distribution
• High marketing and product costs
• Promotion focused on product awareness and to
stimulate primary demand – “pull strategy”
• Intensive personal selling to retailers and wholesalers –
“push strategy”

15. Growth
• Sales grow at an increasing rate
• Many competitors enter market
• Large companies may acquire small pioneering
firms
• Promotion emphasizes brand advertising and
comparative ads – “pull strategy”
• Wider distribution – “push strategy”
• Toward end of growth stage, prices fall
• Sales volume creates economies of scale

16. Maturity
• Sales continue to increase but at a decreasing rate
• Marketplace is approaching saturation
• Typified by annual models of products with an
emphasis on style rather than function
• Product lines are widened or extended
• Marginal competitors drop out
• Heavy promotions - sales promotions “push”
• Prices and profits fall
• Production moves to lower cost locations

17. Decline
• Signaled by a long-run drop in sales
• Rate of decline is governed by how rapidly
consumer tastes change or how rapidly substitute
products are adopted.
• Falling demand forces many out of market
• Few specialty firms left

18. Five categories and profiles of product
adopters