38, No 4, 2009
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Abstract: This study examines that the Marketing is the driving force in pharmaceutical industry. Although, there is
good quality international literature available for the under examine topic, but it carries the perspective of developed
countries, where things are very different from a developing country like Pakistan. The study identified that
Pharmaceutical products can be distributed through different channels to its customers. For general marketing, sales
and distribution functions are mostly performed by the sale organization, or in some cases the company has its own
sales team taking care of selling function, whereas the distributor is responsible for physical distribution of goods
only. In pharmaceutical industry, selling function is invariably handled by the companys own sales team due to
highly technical and specialized nature of job, whereas the distributor is responsible only for the logistics part. It is
further concluded that there is no winning formula for pharmaceutical promotion. All one can do it to understand the
purpose of each tool, and then try to create a Marketing Mix, which works well under the given scenario.
Pharmaceutical distribution is the most important tool, which supports the other marketing functions.
Key words: Pharmaceutical Marketing; Physical Distribution; Logistic Parts; Marketing Mix
1. INTRODUCTION
Pharmaceutical industry is one of the most organized industries in Pakistan, employing a large number of
professionals in all areas of operations. The industry currently comprise of more than 600 companies, out of which
around 300 or so can be termed as Active Companies involved in manufacturing & marketing of pharmaceutical
products (IMS Q2&Q3 2008). Karachi is the city hosting the largest number of companies, but Lahore & Islamabad
are emerging fast as centers for pharmaceutical manufacturing & marketing. Marketing is, as in other industries is
the driving force in pharmaceutical industry (Kotler & Armstrong 2002). Most of the people engaged in marketing
activities in pharmaceutical industry are business graduates, with majors in marketing. However, the biggest
problem they face, and which in turn becomes a challenge for human resource function of the company is the
distinct character of pharmaceutical marketing. What these business graduates learn at schools do not encompass
these unique characteristics and as a result, they find themselves inadequately equipped to handle the dynamics of
pharmaceutical marketing. The very fact that in pharmaceutical marketing, you deal with a customer, who is
technically the most competent person, i.e. the doctor, makes the task very challenging (Westfall, McCabe &
Nicholas 1997). You have to convince him to suggest or prescribe your product and this he will due purely on the
basis of merits of the product, which he usually understands better than a common marketer (Parmar & Jalees 2004).
The restricted media use becomes a major obstacle as you as a marketer are not allowed to use the conventional and
established media like newspapers, magazines, radio & television, and instead have to reply upon direct marketing,
one-to-one sales calls, medical journals/newspapers, sponsorships, sampling and other tools. This makes the task not
only more difficult, but also less glamorous (Sattar & Maqsood 2004).
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Disadvantages:
No flexibility to address local requirements, which can be a major problem. There are several areas in
Pakistan where market dynamics are totally different from main towns and where a company might think
and act with a local perspective.
In case the company is under financial stress, a national distributor may not allow over-stocking because of
a national scenario being evident to the management.
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A problem identified in one area may be taken as a widespread problem due to the tendency to generalize
things.
Average cost may be higher as the distributor will be paid one rate across the board, which may be higher
than what the company may pay on individual basis under regional setup.
Flexibility to formulate and implement strategies according to the needs of specific geographical locations.
Possibility of shifting the stocks selectively in excess of requirement in a way that no particular distributor
is over-stocked to an extraordinary level.
Flexibility to appoint and fire distributors on the basis of their performance in their territory.
Possibility of appointing distributors having a specific profile, which suits specific geographical locations.
Small distributors may be appointed at a lower cost because of their low infrastructure cost and overheads.
Possibility of having different payment terms for different distributors resulting in a lower average cost.
Disadvantages:
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REFERENCES
[1]. IMS PKPI (MAT Q2& Q3, 2008). Pakistani Pharmaceutical Industry, December 31, 2008.
[2]. Parmar and Jalees, 2004. Pharmaceutical Industry in Hyderabad, Unethical Practices in Drug Promotion,
Independent Study for MS, Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology, Karachi, May.
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