Role of Product Manager

Training on Product Management

Market Segmentation

Market Analysis

Positioning

Outline

Product Profile

SWOT

Strategy

What Is A Segment

A customer group having

Similar buying needs

And/or

Similar reactions to what product offers

Useful Ways To Segment Markets

Geographically

Regions, cities, urban/rural

Demographically

Age, sex, income group, occupation, educational level

Disease

Type, severity, acute, chronic recurrent

Doctor

Specialty, place of practice, age group affiliation, educational background

How To Segment

Example

Patients of all ages suffering from acute URTI

Why Segment

Identifies target group, customer needs

Efficient way of using scarce resources

Creates strong product image to offset competition

A Segment Must Be

Measurable: Potential + Results

Accessible: Via promotion resources, cost effective

Substantial: Large enough Financial Objectives)

Homogenous: Customers with sufficiently similar needs

Important Considerations In Segmentation

Trends of segment

Identification of existing unsatisfied needs

Potential Drawbacks Of Market Segmentation

Tunnel Vision - Losing track of overall market evolution

• Acceptance + Execution by sales force

• Requires market data

Market Analysis

Quantitative questions

The trend of the market

The historical sales trend of your product/competitive products

The relative position of the competitors

Market Analysis

Qualitative questions

Structure of the marketCompetitiveness (fragmented vs concentrated)Price sensitivity

Market needsAny unmet needs/opportunities

CompetitorsCurrent/newOpportunities & threats

Product Positioning

What are theNEEDS of

my customer

WHAT BENEFITS/COMPETITIVE

EDGEDoes my product have?

WHAT product FEATURES substantiatethese claims

Product Positioning Analysis

Examples of product attributes for positioning and mapping

Dosage versus convenience

Price versus severity of medical conditions

Price versus dosage regimen

Efficacy versus safety

Side-effect profile versus efficacy

Duration of action versus onset of action


Applications

New product launches

When market share is threatened

Changing population of market segment

Changing market needs


Product positioning must be reviewed periodically, at its different life cycle

Comparative positions of products must be the result of MR findings, not the perceptions of PMs

Product Profile Checklist

Target indicators

Target doctors

Dosage recommendation

Presentation, strengths and pack sizes

Key advantages & disadvantages

(Efficacy, contra-indicators, side effects/safety, patient convenience, etc.)


Product profile Main indications

Main side effects

Contra-Indications

Major Advantages

Major Disadvantages

Average Daily dose

Presentation Target doctors

INFORMATION REGARDING THE MAIN COMPETING PRODUCTS

PRODUCT CHARACTERISTICS

Active ingredient(s)

Main Indications

Main Side Effects

Contra-Indications

Major Advantages

Major Disadvantages

Best Selling Pack Sizes

Average Daily Dose

Cost of Average Daily Dose

Sales in $ (’000)

Market Share

Sales Trend (3 yrs)


SWOT Analysis

A technique combining all elements to arrive at a strategy, tactics and objectives

StrengthsWeakness

Of your company(or product)

OpportunitiesThreats

In the market/

environment

SWOT Analysis

Strengths

Good side-effect profile

Good efficacy

Good local and international trail program

Support from HQ

New chemical entity

Variety of presentations

SWOT Analysis

Weakness

Company has limited experience here

Limited comparative data

Seen more as a tranquilizer than as antiemetic

Limited resources

SWOT Analysis

Opportunities

Medics aware of benzodiazepine problem

Market decline halted in tranq. Segment

Premium price acceptable in tranq. Market

Future product development

Vale growth

SWOT Analysis

Threats

Strong competition

Dominant brands in both segments

2 new competitor products soon

Opportunities & Threats

From OUTSIDE

Market segment

Environment

Few competitors

From INSIDE

Company

Products


Market segment

High growth rate

High level of customer interest

Large segment size

High degree of acceptance

High-untapped patients

Low level of price sensitivity


Environment

Good economic growth

Few government regulations

Little adverse public opinion

Active consumer action


Few competitors

No new products

Weak sales team

Poor marketing skills

Little promotional activity

Poor promotional mix

Large product range

Poor company image


Company Excellent image Large size Adequate promotion budgets Good R & D products Effective sales force Well-trained sales force Good management/employee rapport Excellent customer service Excellent distribution


Products Very reliable Highly efficacy Highly acceptable by opinion leaders Convenient packaging Convenient dosaging Acceptable taste Minimal side effects High market share Acceptable pricing

Definitions Of Terms Used

Concepts Contents

What you need to be achieve, which must be:- Timed- Measurable- Desirable- Realistic

How you intended to achieve your objective:- Target audience- Key product features/ benefits you will stress- The segment you will attack Actions will take or the methods you will use to achieve the strategy, i.e. promotion policy

Strategies

Road

Objectives

Destination

Tactics

Vehicle

Market Penetration Strategy

Increase sales & market share in existing segment with existing product

Examples of tactics

Doubling call frequency on A-class doctors

More A.V. meetings with specialists

Goods on consignment to pharmacies

Market Development Strategy

Increase sales in new markets with existing products

Examples of tactics

Promote to another group (specialists to GPs)

Promote new indications to reach different group of patients

OTC to Rx Switch

Rx to OTC Switch

Product Development Strategy

Introducing new or improved products, line extension to an existing market segment.

Examples of tactics

Develop new product features to offer new benefits or minimize/ eradicate existing product problems

Create high quality version of existing product

Modifying pack sizes

Diversification

Entering new market with a completely new product

Examples of tactics

New product in a new therapeutic class area

New product line in a related or non-pharma industry

Strategy Approach

Undifferentiated MarketingGoing after large part of market to get at as many prescribes for as many patients as possible

Concentrated MarketingGoing after one party of segment alone

Differentiated MarketingGoing after several defined markets, with tailored versions for each segment

Product Strategy Statement

A product strategy statement gives a precise direction as to how you will achieve your objectives

3 questions to ask

To concentrate on the URTI market amongst patients of all ages

Market segmentWhich segment?

Statement

Dosage convenience and efficacy

All general practitioners

Product positionWhich product position?

Target marketWhich target?

What Is The Objective Of Promotion

Objective 1To change the attitudes of target audience from non-usage to repeated usage

Objective 2To generate increased profitable sales

Promotion Methods

Sales presentationMedia mix

Journal advertising Brochures In-house journals Direct mail

SymposiaClinical trials‘Seeding’ trialsExhibitionPublic/professional servicesOthers

Sales Presentation

Advantages

Allows complete sales story

Has the greatest impact

Great flexibility for sales person to react accordingly

Generates vital ‘feedback’

Sales Presentation

Disadvantages

A high-cost element; fixed cost too

A limited resource

Not always readily available

Slow: Restricted access of targets and physical ability to meet

‘Selling message’ may be inconsistent

Sales Presentation

Basic questions to ask before using the sales force

Is material supportive to the personal presentation

Is the message logical, manageable and suitable

Is sales technique well understood and used

Is product knowledge good

Sales Presentation

Comments

Concentrate on a message which meet objectives

Concentrate on neutralizing weakness, reinforcing strengths

Sales force be trained in usage, objection handling and closing

Material flexible to meet different situations

Promotion Material

Advantages

Adds ‘visual’ power to sales person’s words

Samples allow doctor to try product

Complements the sales visit

Promotion Material

Disadvantages

If not practical and well designed, it is very costly

If it is not seen as practical, it will not be used

It has no effect without personal interpretation

Promotion Material

Basic questions to ask before using

Does the material support the promotion objective

It is absolutely necessary

Is it too much, too little, too many or too few

Will the sales person use it; does it help or hinder him

Will it have a positive impact on the target audience

The Buying Process Unawareness

Existence of productAwareness

Succinct summaryInterest

Phase of reasoningEvaluation

Clinical TrailsTrial

Opportunities to useUsage

RemindersRepeat Usage

Promotion

SALES TO PHARMACY/HOSPITAL

Less wholesalers margin (@ 9%)

SALES TO WHOLESALERS

Less sales tax (@ 9% of 3)

NET SALES EX MANUFACTURER

Less production costs (@ 20%)

GROSS PROFIT

Less selling expenses (field force cost)

Less marketing expenses (field force cost) Samples, Advertising, Mailings, Reps. Detailing aids/literature,

Gifts Congresses, exhibits, symposia, Doctor meetings,

Audio visual/films, Market research

Less administrative overheads (@ 16% of net sales ex manufacturer)

NET PROFIT (OR LOSS) BEFORE TAX % of net sales

CUMULATIVE PROFIT BEFORE TAX

Executive Summery

Key featuresEnvironmental, Market Situation, Product review

Product objectivesFinancial/Marketing, Short term/Long Term

Product strategySegment, Position, Target Market, Product Priorities, Tactics

PromotionStrategy, Mix, Spending

Specific Market Opportunities, Threats and Trends

Overall Profits

Key ActionsRepackaging/Hire new team/Monitor generic law

implementation