Handout - PBM BTM - l1 To l4
Handout - PBM BTM - l1 To l4
Handout - PBM BTM - l1 To l4
Export sales of Indian biopharmaceutical products are currently rising at an annual rate of 47%, domestic sales of Indian biopharmaceutical products have risen only 45% per annum
Indian vaccine sales currently account for about 43% of the country's total biopharmaceutical sales, 16% for diagnostics 13% for therapeutics. Most of the growth in Indian biopharmaceuticals is because of vaccines India is one of the world's leading suppliers of vaccines for measles and other childhood vaccinations. 1
About 30 Indian companies account for the great majority of the country's biopharmaceutical sales.
These include recombinant insulin, erythropoietin (EPO), G-CSF, recombinant hepatitis-B vaccine, streptokinase, interferon alpha-2b, rituximab, and an anti-EGFR MAb product.1,2
Overall
Government (DBT) is pushing research and product development Bio-Pharma Industry Association also working on regulatory easing Agriculture has immense scope
The course contents are developed with special emphasis on Pharmaceutical & Biotech Industry
Module 3:
& Marketing
Management Organization
Lecture 1:
Lecture 7 & 8:
New Product Development
Lecture 2:
Module 2
Brand vs. Product, Brand Elements Brand Extension/Brand Relationships Spectrum Brand Identity Brand Equity
Lecture 3:
Lecture 4:
Category Analysis
Lecture 5:
Lecture 11 & 12
Customer Analysis
Lecture 6:
Course Objectives
We focus on the following questions:
What are the characteristics of products? How can a company build and manage its product mix and product lines? How can a company make better product & brand decisions? How can packaging and labeling be used as marketing tools?
Introduction to Product
Management
What is a Product?
A product is anything that can be offered to a
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Introduction to Product
Management
Physical Goods (whether Anything that can be Offered Persons tangible or e.g. Medicine, Cars, e.g. Movie Stars, intangible) would be called a product, such as; Political Shampoos Leaders, Dhoni Services Places e.g. Hospital, Diagnostic e.g. Switzerland, Nainital Lab Financial, , Internet Organizations Experiences e.g.Vergin Atlantic Space e.g. Girl Scouts, Political Flight, Spa, Movie Theatre Parties, Fortis Events Ideas e.g. Iifa, Pravasi Bharatiya e.g. Family Planning, Sammelan Driving in Single Lanes
Introduction to Product
Management
on
Satisfaction is the degree to which the actual use of a product matches the perceived value at the time of the purchase. A customer is satisfied only if the actual value is the same or exceeds the perceived value
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Introduction to Product
Management
Basic product
a version of the product containing only those attributes or characteristics absolutely necessary for it to function and cater to core benefit
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Introduction to Product
Management
Basic Product
Hand Held device, able to send & receive voice communication
Expected Product
Hand-set with voice & text communication abilities with ringtones, color screen, light
weight, long battery life, sufficient memory, Calendar, Camera, FM Radio etc.
Augmented Product
Large screen, touch screen, internet, other applications, mobile map, games etc.
Potential Product
Hand-set with mind reading capacity, mobile working as Credit card/Debit card/Travel
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/services
Car
Aatta
Bank Hospital Mouth Dissolving Tabs Penta vaccine
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Introduction to Product
Management
Product needto satisfy a need e.g. feet protection Product classa family of products having similar function e.g. all shoes Product linea group of products with closely related functions e.g. sports shoes Product type products within a line having similar form e.g. basket-ball shoes Branda name representing a product or line e.g. Nike Item (Stock Keeping Unit)a unit item e.g. one pair of Nike basket-ball shoe
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Introduction to Product
Management
Non-Durable : The products which last only for some-time and have few uses
Durable: The products which last for a long time, have repeated uses
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Introduction to Product
Management
Unsought Goods Purchased on perceived need, can do without food processor, Music System, Car, Personal Jet
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FMCG
Introduction to Product
Management
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Introduction to Product
Management
Computers Materials and Parts Plastics, Auto Parts Supplies Paper, Toner Installations Equipment
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Introduction to Product
Management
Services e.g. ORG-IMS Maintenance and repair items Operating supplies Maintenance and repair services Information Services
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Product Mix
co.
Length - refer to the total no. of items the Co. carries
product lines are in end use, production requirements, distribution channels, or some other way.
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Introduction to Product
Product Mix
Management
Product
Lines
-
Mix
Food brands Home care brands Personal care brands Water Nutrition Health, hygiene & beauty
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Line 2: Cardiovascular s
Line 3: Optholmology
Line 4: Gastroenterolog y
Line 5: Antiinfectives
Depth
1. Amexide 2. Citopalm 3. Cloferanil 4. Fluvoxin Form, Flavours, packaging
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Introduction to Product
Management
Product Mix
Product-line length
Line Stretching Down-market Stretch: Means when the company
launches lower end versions of a product generally to capture mass market. Some of the reasons for down market stretch are as follows; The company may notice strong growth opportunities as mass retailers attract a growing number of shoppers The company may wish to tie up lower-end competitors who might otherwise try to move up-market The company may find that the middle market is stagnating or declining
Two-Way Stretch
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Introduction to Product
Management
is Management?
ordination
Within the marketing department it is product Manager
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Introduction to Product
Management
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Introduction to Product
Management
Product-Focused Organization
Head of Co./Div
Head Marketing
Head HR
Head Fin
Head Mfg
Support
Product Management
Marketing Research
Product Manager A
Product Manager B
Product Manager C
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Introduction to Product
Management
P&G in 1930s Commonly used where different products use the same channels of distribution Product Manager acts as a Mini-CEO
Product Manager has the ultimate responsibility for the brand Associate Product Manager develops brand extensions or
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Introduction to Product
Management
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Introduction to Product
Management
goals
Several salespeople representing different products
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Introduction to Product
Management
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Introduction to Product
Management
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Introduction to Product
Management
Market-Focused Organization
Head of Co./Div
Head Mfg
Head Fin
Head HR
Head Marketing
Market Manager A
Market Manager 2
Market manager 3
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Introduction to Product
Management
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Introduction to Product
Management
sustained
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Introduction to Product
Management
Himalaya Ayurvedic
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Introduction to Product
Management
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Introduction to Product
Management
Function-Focused Organization
Head of Co./Div
Head Mfg
Head Fin
Head HR
Head Marketing
Adv. Mgr
Product Marketing
Market Service
Market Research
Sales Promotion
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Introduction to Product
Management
activities
Functional training is easier to deliver
Managers become functional experts
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Introduction to Product
Management
meetings
Training is limited to function
planning
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Introduction to Product
Management
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Introduction to Product
Management
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distributors
Gathering continuous intelligence on the products performance,
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Marketing Planning
One of the key responsibility of a Product
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Marketing Planning
Hierarchy of Planning
Corporate strategic planning
Group/Sector planning
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Marketing Planning
product/Business
To establish Objectives
To define Strategies & Actions/Programmes necessary
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Marketing Planning
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Marketing Planning
Objectives (Sales, M.S. Growth, Profitability, volumes, any other) Product/Brand Strategy
Supporting Marketing Programs Financial Documents Monitoring & control Mechanism Contigency Plans
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Reference Books
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Product Analysis:
w.r.t. Competition, Competitor Analysis, Category Analysis
Lecture 3:
Customer/Demand
Lecture Objectives
Understand how to define competition Determining & selecting competition How to Analyze Category with various parameters Learn to Assess Market Attractiveness Analyze Competitor(s)
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Bases of Competition
Customer oriented Who are they When they use Why they use (what benefit sought)
Marketing Oriented Advertisement/Promotion/Channel/Media/Price Resource Oriented Raw material, Shelf-Space, employees, Financial resources Geographic
Levels of Competition:
Product form
Product Category Generic
Budget
aabc c aabc
- Primary source Deptt. Stores, A.C. Nielsen, Scanned data, IMS, C-Marc - Brand-Switch Matrix Customer Judgement - Surveys Focus Groups, Exploratory
Using
Customer Judgments
Product Deletion in a group that are substitutes for each other, if one is deleted or not available, which one would the customer select from the choice set or the rest
Substitution in Use judged similarities in usage context, use and substitutes are indicated for the target product
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Using
large set of products divided into groups in which each is a substitute for another
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Perceptual Map
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Marketing Planning
Executive summary
Situation Analysis Competitor definition Category Analysis Competitor Analysis Customer Analysis Planning Assumptions
REPEAT
Objectives (Sales, M.S. Growth, Profitability, volumes, any other) Product/Brand Strategy Supporting Marketing Programs Financial Documents Monitoring & control Mechanism Contnigency Plans
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Product Analysis:
w.r.t. Competition,, Category Analysis, Competitor Analysis
Lecture 3:
Customer/Demand
Environmental Factors
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- Measured in units and monetary value - Will revenues support investment? - Large markets are better - Large categories offer more opportunities for segmentation - Large size tends to draw competitors
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sustain future profits Attract competitors Cause dramatic shift in market share survivability of product
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entrants
The growth stage is attractive The maturity stage may be attractive for
some categories
The decline is unattractive to new entrants
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2. Category Factors
Threat of new entrates Bargaining Powers of Suppliers Bargaining powers of Buyers Existing Category Rivalry Pressure from Substitutes Category Capacity
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Category Factors
1. 2. 3. 4. 5.
Threat of New Entrants Bargaining Power of Buyers Bargaining Power of Suppliers Amount of Intra-category Rivalry Threat of Substitute Products or Services
Category Capacity
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help a market to expand Usually it heightens competitiveness and reduces profit margins Offset by setting up barriers to entry
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Category
Factors
Capital Requirements
Switching Costs Distribution
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Category
Factors
buyers cost, product is undifferentiated, buyers earn low profits, buyer can backward integrate, buyer has full information, when substitutes exist
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Category
Factors
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Category
Factors
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Category
Factors
attractive Escalates marketing expenditures, price, employee switch High if many or balanced competitors, slow growth, high fixed costs, lack of differentiation, personal rivalry Difficult for a product manager to have an impact on category rivalry
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Category
Factors
Category Capacity Chronic overcapacity is not a positive sign for long-term profitability Operating at capacity costs stay low, supplier bargaining power high Indicates health of category Recession may lead to overcapacity
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Environmental
Technological
Political Economic Regulatory Social
Factors
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Environmental
Factors
Political Affects products with global sales Product manager must assess political risk Free market affected by political party in power
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Environmental
Factors
Economic Interest rate fluctuations short-term financing Currency exchange rates global markets Employment conditions availability of skilled labor Recession sales, GDP growth declines Inflation rates consumer buying power diminishes
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Environmental
Factors
Regulatory Restrict industry from specific media use Stringent testing requirements Air, water, soil pollution Intervene in global competition - dumping
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Environmental
Factors
Social Trends in demographics, lifestyles, attitudes, and personal values Trends affect B2B due to derived demand Young adults Mature consumers Children as consumers Shift of power from seller to consumer
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Product Analysis:
w.r.t. Competition,, Category Analysis, Competitor Analysis
Lecture 3:
Customer/Demand
Competitor Analysis
Data Collection
Data Analysis
Steps
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Data Collection
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Data Collection
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Patent Filings
Financial Audit Filings Business Press Government Computer
Promotional Literature
Trade Press Consultants Customer
Databases
Communications
Data Collection
Other
Sources of Information
Classified Ads
Trade Shows Plant Tours Reverse Engineering Monitoring test Markets Hiring Senior Employees
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products?
What is the current strategy being employed to
competitors
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Determine
the Objectives
or market share
Hold Objective brand losing market
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Determining
the Objectives
- A cut in price - Increase in advertising expenditures - Increase in promotions to consumers and distributors - Increase in distribution expenses
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Assessing
Competitors Will
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Marketing
Strategy
2. Core Strategy
- Positioning, Differentiating
3. Implementation
- Supporting Marketing Mix
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3. Implementation
(Supporting Marketing Mix ) Marketing Mix (The mix provides insight into the
basic strategy of the competitor and special tactical decisions)
4Ps
- Product (Physical product or service and how it is
sold)
- Price - Promotion (Which type and how often) - Place (Which channels are being emphasized?)
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Tracking
Competitors Strategies
Industrial Products Product sales literature The companys own sales force Trade advertising
Consumer Products Tracking Ads
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Technology
Strategy
Framework of Six Criteria Technology Specialization Level of Competence Sources of Capability Internal/External R&D Investment Level Competitive Timing Initiate/Respond R&D Organization and Policies
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Competitive
Handout Grid 2
Capabilities Matrix
Hand out Grid 3
Success Matrix
Handout Grid 3A
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Assessing A
Competitors Will
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variable Extrapolate that the trend may continue Link Capabilities/Resources with Strategy Simulate by Role-Play
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