level: Level 3
Questions and Answers List
level questions: Level 3
| Question | Answer |
|---|---|
| PHARMACEUTICAL PRODUCT LIFE CYCLE STRATEGIES | 1 INTRODUCTORY STAGE 2 GROWTH STAGE 3 MATURITY STAGE 4 DECLINE STAGE |
| – period of a very low sales performance, this happens during the first few months to one year or more after being formally introduce to the market depending on the degree of awareness level acceptance and also actual product trials – Drug companies normally pursue an investment spending strategy in creatively promoting and distributing the new product to target clientele. | • Introductory Stage |
| a period of increasing sales and profit performances because of a new product There is a wide acceptance, patronage and repeat sales in a bigger volume from either the present and/or new markets being served | • Growth Stage |
| • Growth Stage Major strategies: | • (1) Continues improvement or innovation • (2) Entering completely new markets, new segments, expanded distribution channels, more incentives for trade outlets to carry and endorse the product to clients. • (3) Lowering prices to previous levels in order to allow more buyers (4) More aggressive and proactive promotions effort (5) Fine-tuning product’s position in the market (6) Additional logistics support |
| – period that usually characterize by slowing down of the products sales volume which reaching a plateau or constant sales or remaining at the constant volumes - Attributed by the entry of similar products competing in the same market segment or the competitors pour heavily on different promotional tools to gain control of the desire market segment at all cost | Maturity Stage |
| period that usually characterize by continues drops in sales of most products, formats and brands at low level for many years | Decline Stage |
| Decline Stage • Factors in declining sales: | – Rapid technological advances – Keen competition (local drug companies vying for a share of the market after the enactment of the generics law) – Changing consumer preferences for tastes, flavors, colors – Adherence to safety and efficacy – Price consciousness due to inflation and deteriorating purchasing power |
| Decline Stage • Major strategies: | 1 companies immediately withdraw from the market, phase out the drug product to avoid further loses in certain areas 2. Reduce the number of product offerings, concentrate on potential formats, sizes, and supply 3. Discontinue operations in smaller market segments 4. Reduce promotions & marketing efforts 5 Replace weak products with similar or related generic names 6. Sell drug product to another company |