DJ

Introduction Stage of Drug Marketing

Introduction Stage of Drug Marketing

Overview

  • Initial phase of a product's market entry

  • Duration: typically lasts from a few months to one year or more

Characteristics

  • Very low sales performance

  • Dependent on product awareness, acceptance, and trials (AAT)

Strategies Employed by Drug Companies

  • Investment-spending strategy for promotion and distribution

  • Targeting clientele creatively

Financial Aspects

  • Profits are often negative or breakeven during this phase (from 1-2 years)

  • Causes of low profitability (LHSO):

    • Low sales output

    • High production costs

    • Significant promotional costs

    • Other marketing-related expenses

Conclusion

  • The introduction stage is critical for building awareness and trial among potential customers.