Introduction to Biomarkets Flashcards
(30 cards)
What are the components of the “big picture” of Biomarkets(course)?
1) Market Structure & Strategy
- Market fundamentals
- The external environment
- Firm capabilities
- Firm Boundaries
2) Engaging with markets
- The Marketing Mix
- Life-cycle management
- Measuring succes
3) Specific Topics
- Regulation for Bio-pharmaceuticals
- Industrial Biotechnology markets
What is the definition of markets
A collection of buyers and sellers who transact over a particular product or product class
What different types of markets exist?
Product markets
Labor markets
Markets for information
What is indirect information flow?
Seller observes changes in buyer’s behavior.
Seller may observe “something is going wrong” –> adjusts as a result
What is direct information flow?
The buyer tells the seller directly what they want/need
What factors make up the market structure?
- Number of firms in the markets
- Ease to enter of leave the market
- Ability to set prices
- Ability of product differentiation
What characterizes competitive markets?
- Firms product homogenous products
- Market entry and exit is easy (many sellers and buyers)
- Firms are price-takers: firm cannot influence price (if price increase, market share decrease)
- No notable profits (no long term profits) –> if a firm start to make profit, there is a market entry opportunity for other firms to enther
- Full information and no transaction costs
–> companies in general do not like these markets
What characterizes a monopolistic market?
- Only one producer of good (no close substitutes)
- Market entry is difficult –> monopolist holds prohibitive patetns
- Monopolistic firms are price-setters
- Substantial profits (price is set above marginal costs)
- Lower demand than in competitive market
What characterizes oligopolistic markets?
- Product differentiation is possible
- Small group of firms in the market
- Substantial entry barriers (e.g.very capital required such as aircraft)
- Firms can set prices and affect rival’s actions; incentive to coordinate (allthough they are not allowed to do this, some do indirectly)
- Price level is high and firms can generate profits
What characterizes monopolistic competition?
- Products are differentiated (meaning quality of marketing plays a role)
- Typically many firms lower market power
- Free market entry
- Firms set the prices (in similar fasion as a monopolist)
- Spare capacity
- Price level is high - but limited long-run profits (since free entry)
What is the definition of marketing?
Science and art of explorting, creating and delivering value to satisfy the needs of a target market at a profit.
What does marketing attempt to do?
Identify unfulfilled needs and desires.
Defines measures
Quantifies the size of the identified market and profit potential
Pinpoints which segments the company is capable of serving best
Designs and promotes appropriate products and services
Does pharma companies spend more money on R&D or Marketing?
Marketing. Due to the importance for sales.
What is the Bull-Whip effect?
Demand fluctuates as we move up the supply chain.
The effect is related to information flows: unclarity regarding the relevance of fluctuation leads to bigger changes further up in the supply chain.
Example: The distributor sees the increase and expands its purchase order with the manufacturer to anticipate increased requests from other retailers as well. The manufacturer increases its manufacturing run in anticipation of greater product requests in the future.
What does geographic buyer concentration refer to?
Differentiated marketing strategy based on geography
What is the 5-stage model of the consumer buying process?
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Pospurchase behavior
What caracterizes B2B marketing?
- Few larger buyers that account for large sales volumes
- Close supplier-customer relationships: Proposals, contracts, routines
- Professional purchasers
- multiple buying influences
- multiple sales calls
- low price-demand elasticity
- derived demand: monitoring end- user markets important
- High demand volatility (fluctuation, bull-whip effect)
- Geographic buyer concentration
- direct purchasing (no intermediaries)
What characterizes B2C marketing?
- Products more important than relationships
- emotional considerations afffect buying process more strongly
- Brands and status very important
- Less sophisticated buyers
- Sing step processes, depending on product (impulse purchase)
- Intermediaries frequently with important role in selling process
What is the buygrid framework?
A framework that describes B2B buying process.
Describes the major stages (buy-phases of the industrial buing process in relation to major buying situations (buyclasses)
What are the major buyphases of the buygrid framework?
- problem recognition
- General need description
- Product specification
- Supplier research
- Proposal solicitation
- Supplier selection
- Order-routine specification
- Performance review
What are the buyclasses of the buygrid framework?
- New Task
- Modified rebuy
- Straight rebuy
What is the push versus pull effect?
Technology push is attempting to push a technology into a market
Market pull are consumers telling indirectly that there is a need for x i.e. unmet needs
What are the differences between biologics and small molecule?
- Route of administratrion: biologics are often IV vs. small molecule self admin
- Regulation/approval: biologics produced in animals vs. small molecule synthetically
- Manufacturing/developing: biologics take longer to develop
- R&D: biologics are more complex to develop
- Value based pricing: biologics often more expensive due to above factors - outcome based pricing
What are the overlap of marketing an R&D in bio/pharma
Market related consideration early-on in new product development.
- Disease-focused market research: size and dynamics
- Identifying unmet needs and market potential for a product
- Developing product vision and strategy: key attributes, value prop, differentiation from competitors
- Market segments identification and positioning strategy
- identify minimum clinical and pharma-economic outcome levels
- Determination of product name, publication stray, identify key-opinion-leaders
- continuous evaluation after launch (prices, usages, new indications?)
