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.