Role of Advertisement and Sales Promotion

in Pharmaceutical Marketing: A Review

Submitted by Anonymous on Mon, 08/14/2006 - 19:47
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S. J. Daharwal

Advertisement and sales promotion are basically the two important features
used to promote the sale of the product. But they differ in their ways. Advertising
on one hand is the form of mass media communication directed towards
influencing
the end consumer.
Whereas sales, promotion on the other hand deals with the mass communication
directly towards informing and influencing the channels of distribution. Both
the sales promotion and advertisement help in product promotion; they enable
a firm to face the competition in the market for its survival.
They promote the brand and also are useful in the launch and introduction of
new products. They lead to increase in production, which in turn reduces the
overhead expenses. Hence it helps in bringing down the selling price. But on
contrary they also have certain disadvantages as its very costly method of product
promotion and do not necessarily increase the demand and sales of production.
It involves a huge wasteful expenditure because the majority of advertisements
either escapes the attention of the people or is ignored by them. It multiplies
the need of the people by inducing them to buy the things they do not really
need or cannot effort to buy.

Thus it can be concluded from the following study that pharmaceutical marketing is to be done
with a lot of restrictions, as the products should not be misrepresented near the consumer, which
may seriously harm them.

Introduction
There is no universally accepted distinction between these two terms that is advertising and sales
promotion. To some advertising includes all forms of mass media communication directed
towards influencing the end consumer. Sales promotion on the other hand, includes the forms of
the mass communication directed towards informing and influencing the channels of distribution
(e.g. distributors, retailers etc). The term sales promotion cannot be taken to mean what is
commonly does. Sales promotion is only a part of the promotion. Basically promotion is an
exercise in information, persuasion and influence. Promotion has come to mean the over all
coordination of advertising, selling, publicity and public relations. Promotion is helping function
designed to make all other marketing activities more effective and efficient. But sales promotion
as such helps only the selling activity. Still, there exist some differences of opinion on the real
connotation of the terms sales promotion. Hence a price of the product literature mailed directly
to a customer is advertising, literature distributed by retailers is sales promotion. Thus Sales
promotion merges on one side into advertising and on the other into personal salesmanship. It is
concerned with the dissemination of information to wholesalers, retailers, customers (both actual
and potential) and to the salesman.

Advertising
Advertising is an art used to familiarize public with the product by informing of its description
uses, its superiority over other brands, sources of its availability and price etc. advertising is not
only merely a propaganda but it is a paid form of communication. The advertisers have to pay for
the space and time used to communicate the message to his customers. A basic responsibility of a
marketing manager is to ensure that the companys message reach its potential customers. A
main method by which companies deliver their message to group of customers and, in fact, make
there initial contacts with most potential customers is through advertising. Advertising is a
powerful tool which individuals, business and non- business organizations use for informing
persuading and reminding their target audiences. Various authors have defined advertising in the
following ways:

Advertising has been defined as the dissemination of information concerning

an idea, services or products to compel action in accordance with the interest
of advertisers. By, M. Banerjee.

Advertising consists of all the activities involved in presenting to a group,

a non-personal, oral or visual, openly sponsored message regarding a product
or services, or idea. By, Stanton.
Main objectives of advertisement:
To create a demand for new products by explaining its utility

To announce a new product or service

To increase its sales by attracting new customers

To create brand preferences

To expand the market for new buyers

To assist the salesmen in their selling efforts

To warn the public against imitation of the product of the firm

To prepare ground for new products

Barring new entrance

To make special offers through sales promotion

To neutralize competitors advertising

To enhance goodwill of the firm

Objective of any advertising is to communicate about the product and services

to the prospective customers. Its long-term objective is to generate profit
to firm. General objectives of advertising are to inform the customers about
the attributes and uses of the product.
Advantages of advertising:
It helps in the introduction of new products in the market

It promotes the sales of goods and services by persuading the people to buy
them

It helps in creating a demand and hence a regular production

It enables a firm to face competition in the market for its survival

It enables a firm to improve its reputation by highlighting its achievements

to the public

It generates employment for artists and other persons in the line

It enables the manufacturer to expand his market

It helps in maintaining uniformity and stability of prices

It leads to increase in production, which in turn reduces the overhead expenses.

Hence it helps in bringing down the selling price of the goods

It provides revenue to newspapers, magazines, television and radio.

Disadvantages of advertising:
It multiplies the needs of the people by inducing them to buy things, which they do not, really
need or cannot effort.

It increases the cost of production

It does not necessarily increases the demand and sales of the production.
It simply shifts from one seller to another

It involves a huge wasteful expenditure because the majority of advertisements

either escape the attention of the people or are ignored by them

Many a time, the facts are misrepresented in the advertisement.

Advertisement and Pharmaceutical industry:
The advertisement of pharmaceutical products should be truthful. There should not be any wrong
statement regarding its contents and their percentage. It should provide full details regarding the
action and uses, proprietary name as well as the genetic name, dosage form, mode of
administration, side effects, treatment of toxic, effects, precautions and contraindications. The
above statement should be truthful, scientifically correct and proved. W.H.O (World Health
Organization) has passed this resolution regarding advertising of the pharmaceutical products.
The purpose of advertising in the ethical pharmaceutical market is the same as that for any other
products there are a lot of restrictions on it.

A customer (patient) cannot use a medicine without proper prescription of a physician. The
majority of pharmaceutical products and their direct advertisement are prohibited according to
the drug and magic remedies (objectionable advertisements) act. However, general/home
remedies, products, such as, pain balm, inhalers, Iodex, antiseptic creams and other products,
which do not require any prescription for their purchase can be advertised by any of the direct
methods of advertisement.

There are following methods which are used for advertising pharmaceutical
products:
Direct mailing

Newspaper, professional magazines and journals

Television, radio and other audio visual media

Personal contact or detailing

Miscellaneous methods
Direct mailing:
In this method a mailing list of registered medical practitioners, chemists
and druggists is prepared. Letter, leaflets, folders and catalogues are sent
to them regularly through mail to inform them of the details of the products
manufactured by the firm. Mail advertising has a personal appeal because it
is addressed to a particular person. It also maintains secrecy in advertising.
The main drawback of this technique is that it has the limited coverage.
Television radio and other audiovisual media:
Television is the latest and the fastest growing medium of advertising. It is very effective
medium because it appeals to both the eye and ear. The product can be demonstrated and
explained on the television. However, it is very costly method of advertising. Radio advertising
is becoming more popular these days and the advertisements are generally transmitted through
commercial services of All India radio. Radio advertisements carry an effective appeal as they
reach out to all sections of society. People can listen to them even when they are busy with other
activities. The big pharmaceutical companies generally sponsor entertaining programs on TV and
radio to popularize themselves and their products.
Personal contact or detailing:
It is a process of sales promotion and advertisement by personal contacts. The pharmaceutical
manufacturers engage persons (sales representatives and medical representatives) for making
personal contacts with sellers or prescribes and influence them in favor of their products. This

method of advertisement is very costly. However, the pharmaceutical manufacturing companies

for the following reasons prefer it.

It provides an opportunity to inform the physician about new products of the

firm

It also helps to refresh the memory of physicians regarding the old products
of the firm

It clears doubts a physician may have regarding a particular product of the

company

It helps to have a feed back from physicians regarding the products of the
firm

It provides the company with an opportunity to demonstrate and explain its

products.
Miscellaneous methods:
Posters, billboards and electrical displays are also used for advertisements. The posters are pasted
on walls. Billboards are part on electrical poles and at crossings. Colorful electrical lights in
artistic designs or neon signs are put up at railway stations, bus stops and other public places.
Out door advertising is highly flexible and attracts immediate public attention. Many
pharmaceutical firms offer gift items to the physicians and retailers to pass on to selective
customers. These items may be diaries, ball pen, penholders, desk trays, key chains,
paperweights and calendars. These articles are of the daily use and therefore they continuously
remind their uses of the firm and its products. Generally the name and address of the advertiser is
printed or inscribed on those items.
Essential features of good advertisements:
The text or body of an advertisement is known as an advertising copy. It contains headings,
messages, advertisers name and address, photographs etc. The advertising copy should be
carefully drafted so as to include the following essential features

It should be made attractive by using pictures; headline, attractive boards

etc. so as to make people read, see or listen to it.

It should create a permanent impression on the minds of people. Repeated use

of a brand name of trademarks is very helpful.

It should give useful suggestions to the public. For example, the advertisement
of Vicks 500 tablet suggests its use for cold and cough.

It should educate the people about the use of the product and its benefits.
For example, in the advertisement of baby milk powder, the instructions for
preparing milk are required.

It must contain solid arrangement and proof to convince the consumers about
the superior quality of the product. For example, Anacin tablet relives pain
faster as it is micro fined.

It should create the need for the product in the minds of the people. It should
appeal to the various instincts of the people.

It should induce people to buy the advertised product.

Window display:
This is one of the mediums of advertising and sales promotion. The goods are exhibited in
artistically laid-out window in front of the shops or at important business centers like railway
stations, bus stops. Big business firms set up large show rooms to display their products. The
retail chemists exhibit their products in the show windows of their shops.

The main aim of window display is to attract customers and thus to promote
sales. It creates a good impression about the retail pharmacy. The following
principles of window display should be kept in mind.

It should reflect the characters of pharmacy. For this purpose the insignia
of pharmacy (green cross +) should be fixed.

It should display seasonal items.

It should show the price of items.

The window display should be well lit during night.

The items displayed in the window should be changed frequently gives freshness
and newness to the display.

It should include certain moving objects if it is compatible with the display.

There should be decorative background of the display, which can be made by

using colored wallpapers, thermo-cool, flowers of good quality stain cloth etc.

The color plays an important role in window display. It helps in arresting

the attention of passerby and creates a pleasing impression. The colors have
the attention value in the following order

Red > orange

> yellow > green
> blue

Dark and light shades of the same color can attract the attention of large
people. It is better to use a deep color in contrast with or in harmony with
other colors. Brilliant lighting in window display attracts people. The reflector
concealed at the top and front the merchandise should be used. Colored lighting
of the entire window is not effective for drug stores. Only the non-ethical
products should be displayed in show windows. The table below indicates both
contrasting and harmonizing color combinations with primary colors that make
for impressive window display.

Advantages of window display:

Window display acts as a silent salesman for promotion sales

It is a good methods of advertising

It makes a drug store move decorative and attractive

It attracts the customers as the passerbys

It creates good impression on the customers when he enterd the drug store
Marker research:
Marketing occupies an important position in the organization of a business in the organization of
the business unit. Marketing means the performance of business activities that direct the follow
of goods and services from producers to consumers. It consists of activities that direct the flow of
goods and services from the producer to consumers. It consists of the activities, which involves
the transfer in ownership and relates to their physical distribution. The modern concept of
marketing is consumer oriented. Production under the modern setup is carried out in anticipation
of consumers demand. But the success of an industrial unit, depends on the facts whether the
producer is able to grasp the prevailing conditions of the producer market and thus forecast its
demand.

Now a days it is not possible to run a business successfully simply by guessing

the demand of the product in the market. There has to be a systematic and scientific
attempt to find out the capacity of the market to absorb a particular type of
product. Such attempts to forecast the future of the market in regard to a product
or services are collectively called Market research.

Market research is defined as systematic, objective and exhaustive research

and study of the facts relevant to any problem in the field of marketing. Market
research is different from marketing research. Marketing research deals with
all the points concerning various functions of the market. Market research,
however deals with the facts and problems, relating to transfer and sales of
particular products and services from producer to consumer.
Sources of marketing research:
Marketing research involves the collection of and analysis of data or information bearing on the
different aspects of the marketing effort of a firm. There are two sources from which the required
information of market trends can be had Internal sources and external sources.

Internal sources
The internal sources, such as, statistics of sales turnover, advertising expenditure, transport cost
etc. can be analyzed to get the desired information regarding the market trend.
External sources
There are two external sources from which information can be collected. Viz. Primary sources
and secondary sources.
Primary sources
The survey technique is used to collect information from the primary sources. The primary
sources of market information are Salesman, dealers and consumers
Salesman if a firm employs salesman to conduct and promote the sales
of its products, they can be asked to provide an assessment of the consumers
and deals with the respect the firm firms products. They will provide firsthand
knowledge of the market condition and distribution system without any additional
expenses. However, the salesman are not trained for market research and therefore
their report may not be unbiased and accurate.
Dealers the dealers may be contacted to provide information regarding
the percentage of the sales of the firms to the total sale of the kind of the
product of others firm over a certain period. They can also provide useful feedback
about the consumers reaction to the firms products. However, this source may
not always provide reliable information because the retailers do not have the
well-organized system of record keeping of the firm.

Consumers the opinion and attitude of the consumer is the right source
for getting accurate information regarding the quality, price, packaging and
availability of the firms products. It needs a field survey. Such research
is also called consumer research.
Secondary sources
There are certain agencies, which gather the information after doing the proper survey of the
market and present the data in a printed form. The main source of secondary data for market
research is Trade press, trade association, published survey and government and international
publications.

Trade press these include trade journals, economic and financial periodicals,
annual reports published by some business houses and banking companies etc.
the data given in them provides useful information regarding the latest trend
of the market in specific trade.

Published survey there are many independent research organizations which publish the data
contained the reports of the market research or survey for specific product from time to time.
These reports can be consulted in libraries or procured direct from the source.

Government and international publications the published periodical

reports, journals and bulletins issued by planning commission and various ministries
generally contain a lot of useful information for the research. Similarly international
publications issued by UN agencies and IMF and the World Bank etc. can prove
useful particularly in research in international marketing.

Methods of secondary research:

In order to get information relating to the marketing effort of the firm from the primary source
stated above, independent business firms also conduct survey. A survey may be described as an
enquiry to collect information from a number of respondents. It is difficult to conduct a survey
covering all the concerning people in a field. So as a sample survey is made covering a certain
number of informants by picking some out of the total lot of random.

The following aspects are generally covered during a market research.

Determination of size and characteristics of the market for the product

Sales forecasting

Studies of competitive product

Short range forecasting

Long range forecasting

Market share analysis

Measurement of market research

The following survey methods are adopted to collect the desired information

Personal interview method

Telephone interview method

Postal survey method

Panel method
Personal interview method
It is quite costly but at the same time it is the most accurate method of survey.
It is direct form of investigation in which skilled interviewers collect information
from selected individuals. A personal interview can be conducted in different
ways. Questions are asked and answers are noted. A formal questionnaire is usually
used for the interview. Generally, informants are interviewed in their homes.
Telephone interview method
In, this method contact is established with the informants on telephone and
informants are asked a set list of questions relevant to the studies. This method
is useful because:

The interviewer gives their frank opinion

It saves time and money spent on traveling

A large number of persons can be contacted in a day

However this method also has certain disadvantages:

The method can be used only for telephone subscribers

Technical faults in telephone lines

A long discussion can not be done

Postal survey method in this method the respondents are approached
through the medium of postal survey. Letters are sent to a group of individuals
selected at random along with a questionnaire to be completed and returned.
Two or three follow-up letters may be sent after waiting for sometime. Often
a reply paid envelope is also sent with the questionnaire to get a quick response.
Panel method in this method a consumer panel is selected for getting
information on the product and also different aspects of the firms marketing
strategy. A consumer panel may be a group of persons or families. These panels
may be interviewed periodically regarding facts relevant to the survey and necessary
conclusion there can be drawn from the observation made by the panel.
Advantages of market research:
It supplies information regarding the consumers response to the particular product introduced by
the organization in the market.

It helps to introduce new products in the market after a proper survey of

the market

It helps the manufacturer to find out other similar products available in

the market.

It gives an idea about future trends regarding the particular product

It helps in influencing various plans to boost the sales

It helps in the discovery of potential market

It revels defects and thus makes a connective action possible on the part
of the manufacturer

It helps to discover reason for resistance on the part of the consumer

It indicates whether the product is in constant demand through out the year
so as to adjust its production accordingly

It helps in earning high profits after adjusting the price structure of the
product

It gives an indication about the latest government policies concerning a particular

business.

Sales promotion:

The main aim of any business is to earn maximum profit and this is possible only through
maximum sales. The maximum sales can be achieved by using various techniques of sales
promotion. Sales promotion includes those marketing activities, other then personal selling,
advertising and publicity, that stimulates consumers purchasing and dealers effectiveness such as
window display, shows and expositions, demonstrations etc. Sales promotion is concerned with
the creation, application and dissemination of materials and techniques that supplement
advertising and personal selling. Sales promotion makes use of direct mail, catalogues, trade
shows, sales contents, premiums, samples, window display and other aids. Its purpose is to sell a
certain brands and to make consumers more eager to buy that brand. Personal selling and
advertising do include prospects to make their decisions. Sales promotion provides an extra
stimulus.

According to various authors sales promotion can be defined as: -

Sales promotion means any step that are taken for the purpose of obtaining an increased sales
By, A. H. R. Delens

Sales promotion as a tool of market promotion gives rise to increase in production usage as well
as expansion of market for a product or introduction of a new product By, John. L. Luickkand
and William Lee Ziegler.
Classification of sales promotion:
There are three types of sales promotion Customer promotion, trade promotion and sales trade
promotion

Customer promotion
There the target beneficiaries are the customers. Here the offers are offered
to the unlimited customers. Such an offer is always for a short period. If the
period increases, the validity of the promotional measures decreases.

Trade promotion:
There the target is the middleman. They are being offered the incentives with
the hope that they will stock more and push the product to the customers. This
type of sales promotion is very important effort to seek the cooperation of
the middleman.

Sales trade promotion:

This type of sales promotion emphasis to increase and boost up the morale of
the sales people. They are being offered commissions, bonus and other incentives
for the increase of sales so that they work directly.

Target audiences for sales promotion

Objectives of sales promotion:

To influence the customer for purchasing the product or service instantly because the sales
promotion time is very limited and if the customer does not respond to it quickly, they may lose
the offer. It increases the sales directly by publicity through media that are complementary to the
press and poster advertising.

To introduce new product

To attract new customers

To face the competition effectively

To maintain old customers

To improve public image of the firm

To popularize the brand name of the product

To induce customer to purchase more items

Principles of sales promotion:

The promotional program should proceed in the light of the pretest experiences. There should be
some pre testing in order to check that proposed method is likely to attain the desired result.
Clear objects must be ascribed to the campaign. Result must be evaluated at the end of exercise.
The most effectively of attaining these objectives must be throughout and selected.

Sales promotion devices used are:

Money refund offer

Contests of sweepstakes

Price off or temporary price reduction

Coupons

Premium or bonus offer

Trading stamps

Fair and exhibition

Free samples
Money refund offer:
This offer is generally stated in media advertising that the manufacturer
will return the price if the product is not to the satisfaction of the consumer
within a stated period. For example bull- worker exercise is promoted the
way.
Contest or sweepstakes:
At times, contests are arranged with a view to attract new users to the companys
products. An opportunity under this device is given to consumer to contest with
a chance to win a cash price, free air trips or goods. It is an indirect manner
of introducing new product.
Price off or temporary price reduction:
This involves an offer to consumer, a certain amount of money off over the
regular price of a product. This is done to attract consumers to other brands
to its product/brand.
Coupons:
A coupon is a certificate that entitles the consumer to a specified saving
on the purchase of a specified product. The manufacturers through the retailers
usually issue these coupons. The retailers are later or initially reimbursed
the value of coupons by the manufacturers.
Premium or bonus offers:
In this technique the firm offers a certain quantity of the product free of
cost on the purchase of a specified quantity of the product. The premium offers
can be of three types: -

With pack premium The customer gives the free product along with the product
purchase. For example one stainless steel teaspoon is inserted as free gift
inside the 240 ml bottle of cough syrup.

A reusable container: The product is packed in the container that has utility
for the customer after it has consumed. For example The container of ayurvedic
preparation chawanprash is available in attractive container, which can be reused
in kitchen.

Free in the mail premium: A free gift is given to the consumer on sending a
proof of purchase i.e. cash memo or wrapper of the product.
Trading stamps:
Trading stamps are issued to customers through retailers in proportion to
the amount of purchase. The customer goes on collecting the stamps on his purchase.
Once he has collected the stamps of an adequate amount, he obtains a free product
in exchange of his stamps. This technique induces customers to buy products
from those retailers who offer such stamps.
Fair and exhibition:
Fair and exhibition are organized to display and popularize products of the
firm. For example in various medical and pharmaceutical conferences, seminars,
a scientific congress, the pharmaceutical firms and their allied industries
participate in the exhibition organized by their organizing committee. On such
occasions the firms also distribute free literature to introduce itself and
its products.
Free samples:
Many pharmaceutical firms send their medical representatives to the physicians
for detailing and distributing of free samples of their manufactured goods.
The technique is very useful way of introducing new products. However it is
very expensive method and used only by big concerns.

Flow chart for sales promotion:

Salesman:
A person who is engaged in selling of goods to customer is known as a salesman. It is
generally said that salesman are born and not made. However, it is not true these days, because
any person who wants to adopt a sales profession gets intensive coaching and training. The
success of a firm mainly depends on the performance of their sale force. Therefore, it is essential
to engage well-qualified trained, energetic and young persons as the companys sales force.

Qualities of a salesman: The sales man has personal, mental,

social qualities and vocational skills
Personal qualities:
A good salesman must have an attractive personality. He must posses good health
and sound physique. A salesmans job involves a great physical stain because
of its touring nature. So only the person with a good health can work effectively.
He should have a clear voice and his tone of speaking should be natural so as
to impress the persons dealing with him. He should also be well dressed because
it adds to his charming personality always creates a goods impression on buyers.
Mental qualities:
A good salesman should posses a sound memory, presence of mind, imagination,
foresightedness, sound judgment and initiative. He should be intelligent enough
to understand the nature and requirement of potential buyers. He must have the
imagination to look at things from the viewpoint of customers. A salesman can
win regular and permanent customers only through good mental qualities.
Social qualities:

A good salesman must have a linking for people and the ability to mix with
them. He must not be shy and have reserved nature. He should be sincere, dependable,
cooperative and honest. A salesman has to deal with different types of customers.
Therefore ho should have patience to listen to them i.e. his customers and remove
their objections. He should always be polite and courteous while dealing with
his customers. He must help the customers in selecting the right type of goods.
Courtesy costs nothing but wins favor and permanent customers.
Vocational skills:
A good salesman must have specialized knowledge of selling techniques. Salesmanship
is a highly skilled vocation. It requires certain training and aptitude to have
a through knowledge of the product, customers and competitive products already
available in the market. Such knowledge is essential to handle objections of
the customers and also for convincing them to buy the product. A person cannot
be good salesman unless he has the required ambition and enthusiasm to become
a successful salesman.

Steps in sales promotion process:

Step I

Defining the sales promotion target.

Step II

Setting sales promotion objectives.

Step III

Setting the sales promotion budget.

Step IV

Developing the sales promotion strategy.

Step V

Selecting type of sales promotion.

Step VI

Coordinating the plans.

Step VII

Evaluating sales promotion effectiveness.

Conclusion:
There are few distinctions between advertising and sales, which can be, stated
as:-

Sales
Advertising

A firm as its basic of

fundamental tool production
uses it.

It is generally designed to supplement

advertising and facilitates personal
selling.

It performs the immediate task of

It normally has long-term
increasing current sales.
objectives like building brand
awareness or building
consumers loyalty or
repositioning a brand.
It aids selling by temporarily
changing the existing price value

It helps sales by adding some relationship of the product.

durable and long-term value to
the product.
Sales promotion is a direct and almost
open inducement to consumers to
immediately try the product.
Advertising is mostly an
indirect way for consumer to
buy a product.

Thus from all the above studies it can be concluded that for the pharmaceutical
marketing of any product, the best way to increase sales is through the Sales
promotion rather than advertising. It is so because in advertising a pharmaceutical
product there is many criterias, which are to be, fulfilled which is not an
easy task. Thus it is easier to increase the sales through sales promotion i.e.
through personal selling (medical representative and sales representative).