Thesis on "Marketing a Market Leader in Pharmaceuticals"

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Thesis 3 pages (1031 words) Sources: 4 Style: APA

[EXCERPT] . . . .

Marketing

A market leader in pharmaceuticals should emphasize in its marketing strategy its competitors primarily and the consumers secondarily. There are two main reasons for this. As an industry leader, the company should strive to portray itself as ahead of its competitors. Strategies recommended include using the advantage in economies of scale to undercut competitor's pricing and achieve greater distribution through the health care system. Brand extensions can help to defend market position against the threat of competition (no author, 2009). Pharmaceuticals also give direct benefits to consumers. Moreover, when consumers search for pharmaceuticals they often compare different brands against each other. Therefore, a brand can attain competitive advantage by communicating more effectively to the consumer about the benefits of its products.

A market follower in a mature market should focus on comparisons with its competitors. The marketing message should convey the reasons why consumers should switch from the leading brand to the following brand. This can mainly be done by demonstrating direct superiority over the leading brand in terms of the qualities consumers value the most.

A market nicher in interior design needs to have a wholly customer-centric message. The service is tailored to each customer. The customers are not interested in mass market offerings so benchmarking against industry leaders is irrelevant. Additionally, the entire service is focused around meeting the customer's needs so the message needs to convey this.

A market challenger in this scenario needs to build economies of scale in order to compete. They mus

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t do this with a combination strategy that not only demonstrates superiority to the leading product but also conveys a strong sense of direct benefit to the consumer. In this industry, it is imperative that the firm be seen as the best company with the best products -- anything less and they will fail to achieve the economies of scale needed to effectively compete.

2. The resort should price the services separately. The willingness to pay factor is important to consider here (Rao, 2009). The consumer typically sets their hotel budget, but the activities budget is separate. Thus, if the hotel adopts a pure-bundle strategy, the higher room price will be perceived as a lower value than competing hotels. While the extra services provide higher value, if the consumer is not interested in those services, they will base their views on the higher room rate, not the package of services. In order to build repeat business and longer stays, the hotel must have its rooms at a price point that is perceived as competitive. Consumers do not mind having to pay for certain types of extra services. By leaving those services to the consumer's option, the hotel would maintain its value proposition, and still be able to capture significant revenues from those services, since guests are not averse to paying for extras like volcano tours, massages and scuba diving.

3. Before making a decision, there are several points of information I would need. The first is with respect to our usual performance per dollar of advertising. The figures presented seem good, but most organizations have limited budgets.… READ MORE

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Quoted Instructions for "Marketing a Market Leader in Pharmaceuticals" Assignment:

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I NEED THE 4 QUESTIONS BELOW TO BE RESEARCHED AND ANSWERED. EACH RESPONSE SHOULD BE ABOUT 3/4 PAGE IN LENGTH. PLEASE USE AS MANY SOURCES AS POSSIBLE IN APA FORMAT.

Question 1 (30 points)

A company*****s marketing strategy can be customer (i.e. you design your strategy by looking primarily at what your customers want) or competitor (i.e. you design your strategy based on the actions of your competitors) *****. In reality, of course, companies do a little of both. For the following 4 scenarios, identify which of the two strategies should be emphasized and why:

1.1 A market leader in pharmaceuticals

1.2 A market follower in a mature market

1.3 A market nicher (i.e. a company focused on a small market niche) in interior decoration of luxury homes

1.4 A market challenger in a mature market with low margins and significant economies of scale effect.

Question 2 (20 points)

The Tropical Paradise Resort is located on the coast of an exotic island in the Pacific Ocean. The room rates are $300 a night. If you have a room, you also have free access to the pool, gym and tennis courts.

The resort offers also the following services:

- aerobics classes ($5 per class)

- therapeutic massages ($40 per massage)

- scuba diving trips to a nearby coral reef ($60 per trip)

- day trips to the volcano that is located on the island ($100 per trip)

The average visitor stays for 5 days. The hotel is considering two pricing options: The first is to charge the regular room rate and then charge each visitor for any of the additional services separately. The other is to provide a package where a higher room rate would allow free access not only to the pool, gym and tennis courts, but also to the aerobics, massage, diving, and volcano trips. The objective of the resort is to maximize the long term profits by attracting repeat as well as new customers. Should they price their services separately or bundle them in a single price? Why?

Question 3 (30 points)

The advertising manager of a large firm asked you *****“ the vice president of marketing *****“ to approve a $500,000 increase in the advertising budget for one of the company*****s brands. She predicts that the additional $500,000 in advertising will increase the brand*****s sales by $2,000,000. Even if you were 100 percent sure that her prediction was correct, what additional information would you still need before making a decision?

Question #4 (20 points)

Buzz can be created in a variety of ways, one of them being through advertising. Keeping in mind what buzz is, explain how advertising can be used to generate buzz. What are some of the dangers of this method?

How to Reference "Marketing a Market Leader in Pharmaceuticals" Thesis in a Bibliography

“Marketing a Market Leader in Pharmaceuticals.” A1-TermPaper.com, 2009, https://www.a1-termpaper.com/topics/essay/marketing-market-leader/8825. Accessed 5 Oct 2024.

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A1-TermPaper.com. (2009). Marketing a Market Leader in Pharmaceuticals. [online] Available at: https://www.a1-termpaper.com/topics/essay/marketing-market-leader/8825 [Accessed 5 Oct, 2024].

”Marketing a Market Leader in Pharmaceuticals” 2009. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/marketing-market-leader/8825.

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[1] ”Marketing a Market Leader in Pharmaceuticals”, A1-TermPaper.com, 2009. [Online]. Available: https://www.a1-termpaper.com/topics/essay/marketing-market-leader/8825. [Accessed: 5-Oct-2024].

1. Marketing a Market Leader in Pharmaceuticals [Internet]. A1-TermPaper.com. 2009 [cited 5 October 2024]. Available from: https://www.a1-termpaper.com/topics/essay/marketing-market-leader/8825

1. Marketing a Market Leader in Pharmaceuticals. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/marketing-market-leader/8825. Published 2009. Accessed October 5, 2024.

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