Report on

"Introducing New Product (Talk it over)

utilizing Telemarketing in Bangladesh"

Prepared for
Mr. G. M. Chowdhury
Course Coordinator
Marketing Management
Course No. BHO 6505

Prepared By
Armana Ahmed, ID Code:
Ali Reza Iftekhar, ID Code:
Rupen Ryeed, ID Code: 3607105
Masir Bin Qudus, ID Code:
Shakil Parvez, ID Code:

Submitted on
January 30, 2003

Victoria University

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 Acknowledgment

This report will remain incomplete without expressing our

deepest gratitude to those cooperative minds whom we came
across during this research.

We also acknowledge the generous guidance, advice of our course

coordinator, Mr. G.M. Chowdhury, regarding selection of the research topic,
analysis and interpretation of data.

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Table of Contents

Sl. No. Contents Page No.

1. Introduction 2

1.1 Background 2
1.2 Objective of the report 2
1.3 Sources of Information 2

2. What is Telemarketing 3
3. The need for Telemarketing 4
3.1 One day in a service organization 4
3.2 The emergence 4
3.3 A Research by American Tele-services Association 5
3.4 A Comparative study of Telemarketing in Bangladesh 8
4. Uses of Telemarketing 9
4.1 Current uses of Telemarketing 9
4.2 Other possible areas for uses of Telemarketing in Bangladesh 9
4.3 Range of services by Telemarketing 10
5. Difficulties of Telemarketing 12
6. How to launch a Telemarketing in an organization 13
6.1 Key issues for selecting and succeeding with a service agency 13
6.2 In house steps for successful launching of Telemarketing 15
7. Conclusion 15
8. Appendices 16
Appendix A: Questionnaire used for this report 16
Appendix B: Glossary of Telemarketing 18

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1.0 Introduction

1.1 Origin of the report:

This report has been prepared as a prerequisite of the course ‘Advanced

Marketing Research’ under the supervision of Mr. G. M. Chowdhury, the
course instructor, Advanced Marketing Research, EMBA program, University
of Dhaka who is also the Professor, IBA, Dhaka University. The submission
deadline of the report was January 30, 2003. This report has been prepared
by a group comprising 5(four) members, who have jointly collected, compiled
and organized information obtained from primary and secondary sources.

1.2 Background:

Pharmaceutical sector is regarded as one of the most promising sector in

Bangladesh. Its size is of around Tk 3200 cr per year having a very promising
growth of around 10%. But current business environment is that-

1. Multinational companies have a strong position in doctors mind regarding

their quality

2. Companies are investing more and more in bringing newer molecules

3. Big companies are offering utmost services to the doctors to make them
loyal for prescribing there products

4. Small companies are keeping the prices very low resulting in intensifying
the price war

5. Some companies are trying to bias the chemist to push their products
altering the prescription of other through giving them extra benefit

6. Some companies are providing cash benefit and extra ordinary gifts to the
doctors to prescribe their products.

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In the above situation pharmaceutical sector has also been very competitive.

To sustain and to grow now pharmaceutical companies need to think more

regarding OTC sale besides the prescription generated sales.

1.3 Objective of the proposal

1. To give a brief outline regarding the concept of OTC sale in Bangladesh

Pharma Market
2. To give a guideline of how a pharmaceutical company can increase OTC
sales. (Management decision problem)
3. To determine the factors influencing chemists and patients to generate
OTC sale. (Marketing Research Problem)

1.4 Scope of work

This report encompasses current Bangladeshi market and the demand

scenario present in the service sector. It deals with the latest technological
innovations of a full-fledged telemarketing company, first ever of its kind in
Bangladesh. It does not, however, present any local competition scenario, as
there is no such local company operating right now in Bangladesh in
telemarketing sector.

1.5 Methodology

The method of developing the report is as follows:

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1. Initial idea generation and brainstorming session: 2 days
(08.01.03-09.01.03)
2. Appointment with concerned individuals: 2 days
(11.01.03-12.01.03)
3. Information collection: 1 week
(13.01.03-19.01.03)
4. Draft writing: 3 days
(20.1.03-22.01.03)
5. Editing: 5 days
(23.01.03-27.01.03)
6. Final report writing and submission: 3 days
(28.01.03-30.01.03)

1.6 Sources of Information

Both primary and secondary sources have been consulted to write this case
study assignment.

PRIMARY SOURCE:

1. Interview with concerned individuals

2. Face to face interaction with customers

SECONDARY SOURCE:

1. Newspaper articles
2. Magazine write-ups
3. Internet features
4. Website links

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 1.7 Limitation(s)

The main limitation of the report is that the concept brought up through this
report is still very new in our country’s context. Telemarketing as a whole is
not very common to the people involved in the industry, let alone the other
stakeholders. Investors do not feel comfortable in putting their money into
something they don’t understand clearly and as far as customers in our
country are concerned, they only want to serve them with the proven,
successful products and services. So, the biggest challenge is to familiarize
the hi-tech concept in indigenous market.

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 2.0 Prescription products & OTC drugs

Prescription products:
The term prescription (Rx) refers to medicines that are safe and effective
when used under a doctor's care.

OTC drugs
Nonprescription or OTC drugs are medicines FDA decides are safe and
effective for use without a doctor's prescription.

3. What is OTC sale in pharmaceutical marketing:

Sales coming from chemist shop without doctors’ prescription

3.1 Characteristics of OTC drugs

OTC drugs generally have these characteristics:

 their benefits outweigh their risks

 the potential for misuse and abuse is low

 consumer can use them for self-diagnosed conditions

 they can be adequately labeled

 health practitioners are not needed for the safe and effective use of the
product

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 3.2 OTC cycle:

Pharmaceutical
company

Doctor
Chemist Patient awareness
education/motivation

Chemist

OTC OTC

Patients/Consumer

Research Design:
An extensive multiple cross sectional research was performed on-

 Characteristics of OTC products

 Behavior of different types of chemists

 Tastes and behaviors of end-users

 Activities and behaviors of Medical Representatives

 Stimulating factors for chemists to generate OTC sale

 Factors associated with patients for OTC sales

 Regulatory affairs (Drug Administration) involved in OTC practice

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1. Characteristics of OTC products:

OTC drugs generally have following characteristics:

 their benefits outweigh their risks

 the potential for misuse and abuse is low

 consumer can use them for self-diagnosed conditions

 they can be adequately labeled

 health practitioners are not needed for the safe and effective use of the
product

In Bangladesh following products are generating enormous OTC sales:

(Source- ims, Four P, Interview with chemists)

Paracetamol (For pain and fever)

Ranitidine (for gastric and duodenal ulcer)

Omeprazole (for gastric and duodenal ulcer)

Antacid (Heart burn)

Cetirizine (For rhinitis)

Metronidazole (For diarrhea)

Oral saline (For diarrhea)

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Expectorant (For cough and cold)

Amoxicillin (Antibiotic)

Vitamin B complex (supplement)

Vitamin C (supplement)

Multivitamin and Multiminerals (supplement) etc.

2. Behavior of different types of chemists

In our country we have following types of chemists having different attitudes

and role in generating OTC sale:

1. Retailer:

They are the key persons for generating OTC sales. They usually prefer those
brands as OTC which give them much profit. They may have doctors in their
retail shop or not. If they have doctor’s chamber, then chance of OTC is little
bit less.

2. Wholesaler:

Usually they don’t have any doctor’s chamber. Their role in OTC is very
insignificant.

3. Doctor cum chemist:

They are the doctors (SACMO, PC, LMF, RMP etc) of their own retail shops.
They are very potential customers for the pharmaceutical company to
increase the OTC sale.

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3. Tastes and behaviors of end-users

In our survey we found five categories of patients or end-users:

A. I use OTC products instead of taking the Rx medication that my doctor

prescribed

B. I use OTC products in addition to taking the prescription medication that

my doctor prescribed

C. I use my Rx first and when I finish the Rx or feel a little better, I begin
using OTC products

D. I use an OTC product first and then if my symptoms don’t get better, I go
to the doctor for a prescription

E. I use an OTC medication for my condition

Most prevalent conditions among survey respondents

A B C D E
Allergies 3% 20% 11% 46% 21%
Heartburn 2% 23% 12% 27% 38%
Migraine 2% 15% 8% 39% 37%
Back Pain 3% 27% 13% 31% 26%

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4. Activities and behaviors of Medical Representatives

By generating OTC sale Medical Representatives can make their job easy as
it lightens the load of sales pressure. In our survey we found following
activities of Medical Representatives-

1. They try to make a good relationship with the potential chemists for the
OTC providing them pad, small gift and different services.

2. Sometimes they give them the sample (mini carton of product that is given
to the MR by the company to offer it to doctors). Chemists convert these
samples in to cash (money) and gets motivation to push the product.

3. Sometimes MRs arrange a small meeting with the potential retailers,

describe the feature, advantage and benefit of various products, offer them
delicious foods and lucrative gifts in the meeting. This type of activities
also motivates the chemists to generate OTC sale.

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5. Stimulating factors for chemists to generate OTC sale

Knowledge:
First chemist must know regarding the use and safety profile of a product to
make it OTC. So for the newer products, information is the best motivating
factor.

Doctors’ frequent prescription:

When chemist gets proper knowledge regarding the use and safety profile of
the drug and at the same time finds huge prescription of a particular brand, he
gets confidence to give the product to the patients.

Profit:
Chemist Profit = Maximum Retail Price – Chemist Purchase Price.
So, some companies especially the smaller ones are keeping the Chemist
Purchase Price lower with higher MRP resulting in more profit to the chemists.
Chemists push the profit earning brands to the patients.

Gift:
Pen, Pad, Note Book, Diary, Key Ring etc are being used to the chemists to
motivate them for OTC sale.

Personal relationship:
MRs provide transport service with motorbike, wishes them in the new year
and in other occasion with sweets and have a chat with them resulting in
buildup a good rapport with them which intern motivates chemists to generate
OTC sale.

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6. Factors associated with patients for OTC sales

Health awareness:
Pharmaceutical companies take following activities to aware the people
regarding health and diseases:

 Poster

 Leaflet in patients waiting room

 Billboards (Birth control, prevention of infectious diseses, vaccination etc)

 Advertising in Television and Radio(Birth control, prevention of infectious

diseases, vaccination etc) etc.

Doctors’ frequent prescriptions:

When patient finds that a particular drug is prescribed for a the symptomatic
relief of a specific disease, he gets motivation to take the drug by himself in
the next time.

7. Drugs Regulation and OTC:

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In Bangladesh DRUGS does not permit the DTC (Direct To Consumer)
promotion of any drugs. Thus, pharmaceutical companies need to depend on
chemists only for the OTC.

For any printed material like Poster, Sticker, POP (Display at point of
purchase) prior approval of DRUGS is essential.

In case of newspaper ad, rule is that if the product gets any significant
changes then only the change can be mentioned in the newspaper. But any
advantage or benefit of any product can not be claimed in newspaper.

All nonprescription, over-the-counter (OTC) medicine labels have detailed

usage and warning information so consumers can properly choose and use
the products.

Below is an example of what the new OTC medicine label looks like.

 Active Ingredient. Therapeutic substance in product; amount of active

ingredient per unit.

 Uses. Symptoms or diseases the product will treat or prevent.

 Warnings. When not to use the product; conditions that may require
advice from a doctor before taking the product; possible interactions or
side effects; when to stop taking the product and when to contact a doctor;
if you are pregnant or breastfeeding, seek guidance from a health care
professional; keep product out of children’s reach.

 Inactive Ingredients. Substances such as colors or flavors.

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 Purpose. Product action or category (such as antihistamine, antacid, or
cough suppressant.

 Directions. Specific age categories, how much to take, how to take, and
how often and how long to take.

 Other Information. How to store the product properly and required

information about certain ingredients (such as the amount of calcium,
potassium, or sodium the product contains)

The Label Also Tells The Patients...

 The expiration date, when applicable (date after which you should not
use the product).

 Lot or batch code (manufacturer information to help identify the product).

 Name and address of manufacturer, packer, or distributor.

 Net quantity of contents (how much of the product is in each package).

 What to do if an overdose occurs.

Many OTC medicines are sold in containers with child safety closures. Use
them properly. Remember—keep all medicines out of the sight and reach of
children.

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Regulation of FDA and CHPA

With new opportunities in self-medication come new responsibilities and an

increased need for knowledge. FDA and the Consumer Healthcare Products
Association (CHPA) have prepared the following information to help people
take advantage of self-care opportunities.

OTC Know-How: It's on the Label

You wouldn't ignore your doctor's instructions for using a prescription drug; so
don't ignore the label when taking an OTC medicine. Here's what to look for:

 PRODUCT NAME

 "ACTIVE INGREDIENTS": therapeutic substances in medicine

 "PURPOSE": product category (such as antihistamine, antacid, or cough

suppressant)

 "USES": symptoms or diseases the product will treat or prevent

 "WARNINGS": when not to use the product, when to stop taking it, when
to see a doctor, and possible side effects

 "DIRECTIONS": how much to take, how to take it, and how long to take it

 "OTHER INFORMATION": such as storage information

 "INACTIVE INGREDIENTS": substances such as binders, colors, or

flavoring

You can help yourself read the label too. Always use enough light. It usually
takes three times more light to read the same line at age 60 than at age 30. If
necessary, use your glasses or contact lenses when reading labels.

Always remember to look for the statement describing the tamper-evident

feature(s) before you buy the product and when you use it.

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When it comes to medicines, more does not necessarily mean better. You
should never misuse OTC medicines by taking them longer or in higher doses
than the label recommends. Symptoms that persist are a clear signal it's time
to see a doctor.

Be sure to read the label each time you purchase a product. Just because two
or more products are from the same brand family doesn't mean they are
meant to treat the same conditions or contain the same ingredients.
Remember, if you read the label and still have questions, talk to a doctor,
nurse, or pharmacist.
An example of a label is shown below:

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Drug Interactions: A Word to the Wise
Although mild and relatively uncommon, interactions involving OTC drugs can
produce unwanted results or make medicines less effective. It's especially
important to know about drug interactions if you're taking Rx and OTC drugs
at the same time.
Some drugs can also interact with foods and beverages, as well as with
health conditions such as diabetes, kidney disease, and high blood pressure.
Here are a few drug interaction cautions for some common OTC ingredients:

 Avoid alcohol if you are taking antihistamines, cough-cold products with

the ingredient dextromethorphan, or drugs that treat sleeplessness.

 Do not use drugs that treat sleeplessness if you are taking prescription
sedatives or tranquilizers.

 Check with your doctor before taking products containing aspirin if you're
taking a prescription blood thinner or if you have diabetes or gout.

 Do not use laxatives when you have stomach pain, nausea, or vomiting.

 Unless directed by a doctor, do not use a nasal decongestant if you are

taking a prescription drug for high blood pressure or depression, or if you
have heart or thyroid disease, diabetes, or prostate problems.

 This is not a complete list. Read the label! Drug labels change as new
information becomes available. That's why it's important to read the label
each time you take medicine.

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Time for a Medicine Cabinet Checkup

 Be sure to look through your medicine supply at least once a year.

 Always store medicines in a cool, dry place or as stated on the label.

 Throw away any medicines that are past the expiration date.

 To make sure no one takes the wrong medicine, keep all medicines in
their original containers.

Pregnancy and Breast-Feeding

Drugs can pass from a pregnant woman to her unborn baby. A safe amount of
medicine for the mother may be too much for the unborn baby. If you're
pregnant, always talk with your doctor before taking any drugs, Rx or OTC.
Although most drugs pass into breast milk in concentrations too low to have
any unwanted effects on the baby, breast-feeding mothers still need to be
careful. Always ask your doctor or pharmacist before taking any medicine
while breast-feeding. A doctor or pharmacist can tell you how to adjust the
timing and dosing of most medicines so the baby is exposed to the lowest
amount possible, or whether the drugs should be avoided altogether

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Kids Aren't Just Small Adults

OTC drugs rarely come in one-size-fits-all. Here are some tips about giving
OTC medicines to children:

 Children aren't just small adults, so don't estimate the dose based on their
size.

 Read the label. Follow all directions.

 Follow any age limits on the label.

 Some OTC products come in different strengths. Be aware!

 Know the difference between TBSP. (tablespoon) and TSP. (teaspoon).

They are very different doses.

 Be careful about converting dose instructions. If the label says two

teaspoons, it's best to use a measuring spoon or a dosing cup marked in
teaspoons, not a common kitchen spoon.

 Don't play doctor. Don't double the dose just because your child seems
sicker than last time.

 Before you give your child two medicines at the same time, talk to your
doctor or pharmacist.

 Never let children take medicine by themselves.

 Never call medicine candy to get your kids to take it. If they come across
the medicine on their own, they're likely to remember that you called it
candy.

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Child-Resistant Packaging

Child-resistant closures are designed for repeated use to make it difficult for
children to open. Remember, if you don't re-lock the closure after each use,
the child-resistant device can't do its job—keeping children out!

It's best to store all medicines and dietary supplements where children can
neither see nor reach them. Containers of pills should not be left on the
kitchen counter as a reminder. Purses and briefcases are among the worst
places to hide medicines from curious kids. And since children are natural
mimics, it's a good idea not to take medicine in front of them. They may be
tempted to "play house" with your medicine later on.

If you find some packages too difficult to open—and don't have young
children living with you or visiting—you should know the law allows one
package size for each OTC medicine to be sold without child-resistant
features. If you don't see it on the store shelf, ask.

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Protect Against Tampering

Makers of OTC medicines seal most products in tamper-evident packaging

(TEP) to help protect against criminal tampering. TEP works by providing
visible evidence if the package has been disturbed. But OTC packaging
cannot be 100 percent tamper-proof. Here's how to help protect yourself:

 Be alert to the tamper-evident features on the package before you open it.
These features are described on the label.

 Inspect the outer packaging before you buy it. When you get home,
inspect the medicine inside.

 Don't buy an OTC product if the packaging is damaged.

 Don't use any medicine that looks discolored or different in any way.

 If anything looks suspicious, be suspicious. Contact the store where you

bought the product. Take it back!

 Never take medicines in the dark.

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What if patient needs to take more than one medicine?

There are many OTC medicines that contain the same active ingredient. If
you take several medicines that happen to contain the same active ingredient,
for example a pain reliever along with a cough-cold-fever medicine, you might
be taking two times the normal dose and not know it. So read the label and
avoid taking multiple medicines that contain the same active ingredient or talk
to your pharmacist or health care professional.

Before using any medicine, remember to think SAFER:

• Speak up

• Ask questions

• Find the facts

• Evaluate your choices

• Read the label

U.S. Department of Health and Human Services

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Conclusion
Increased access to OTC medicines is especially important for our maturing
population.
Fact is, today's OTC medicines offer greater opportunity to treat more of the
aches and illnesses most likely to appear in our later years. As we live longer,
work longer, and take a more active role in our own health care, the need
grows to become better informed about self-care.
The best way to become better informed—for young and old alike—is to read
and understand the information on OTC labels. Next to the medicine itself,
label comprehension is the most important part of self-care with OTC
medicines.

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