Advice You - Business

Importance of Marketing

It has become essential for any business in the competitive atmosphere today to devise a sound marketing strategy. In the

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

absence of an effective marketing plan, survival of any business is very difficult. That is why to successfully run a business; you need to learn t

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

he art of allocating funds for marketing wisely so that you can make a balance between the requirements of the marketing department and your income

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

You need to allocate the funds in such a way that the person responsible for marketing can manage promotional costs, advertising costs, and all ot

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

her costs that are related to marketing activities smoothly.

Requirements Vary with the Different Companies

Allocating funds for marketing requir

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

es that you keep in the mind the cost of the particular media you wish to use, the cost of gathering important relevant information, and also the c

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

st of monitoring any changes in the market trends. You should never underestimate the importance of marketing while allocating funds for marketing.

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

Understand very clearly that if planned properly, the amount of money spent on marketing efforts never goes in vain. Instead, the generation of in

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

come increases more than the money spent. However, the percentage of the revenue a company should allocate for marketing may vary according to the

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

osition of the company. This percentage may be as high as 25% to 50% in case of startup companies. On the contrary, established companies do not re

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

quire allocation of this magnitude for marketing. Allocating 5 to 15% of the net revenue is sufficient for these companies.

Different Approaches

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

There are several different approaches adopted by the different companies for allocating funds for marketing. If you are in an industry where it is

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

easy to foretell the market patterns, then allocating funds as a fixed percentage of revenue is the best method. By adopting this method, you do no

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

t indulge in any kind of advertising war that can adversely affect your profitability. However, you need to rethink applying this strategy when you

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

r sales start falling. This is the time when you should allocate more funds for marketing instead of allocating fewer funds in ratio to declining s

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

les.

According To Competitors

Another approach you can adopt is that allocating funds for marketing exactly at the level of your competitors. The

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

people who apply this method believe that spending on marketing efforts should be according to the market average. The main drawback of this appro

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ach is that you become lazy and start ignoring the importance of marketing efforts.

Task Approach

An alternative to allocating funds for marketin

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

is adopting a "task" approach. This means that you should set your objects according to the task at hand. One more approach that no expert will ev

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

er recommend is the residual approach. According to this approach, you allocate only those funds that you can spare after making all other expenses

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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