Three essays on marketing strategy elements and the brand life cycle in the pharmaceutical industry

It is of critical importance to marketers to be able to demonstrate the value of marketing efforts. The present study attempts to examine the impact of specific marketing communication activities (advertising and sales force). The pharmaceutical industry is chosen as the context of this study, focusing on one therapeutic category, gastrointestinal drugs (GID). Several distinct promotional channels are used in this industry, providing an interesting comparison of the value of these various efforts.;Essay One examines the financial impact (specifically, return on investment, or ROI) of pharmaceutical promotional activities. Furthermore, the ROI of these efforts over the stages of a brand's life cycle is examined. This provides for a thorough examination of how the ROI for each promotional effort varies over time. The results of this study provide guidance to managers as to how to optimize the promotional mix over a product's life cycle.;Essay Two investigates the effect of various promotional efforts (direct-to consumer advertising, journal advertising, and sales force) on sales. Additionally, the interaction effects between the promotional efforts are examined. The incorporation of additional moderator effects (competitive intensity and number of years on the market) reveals noteworthy contingencies with respect to these relationships. The impact of these promotional efforts is rather complex, and is dependent upon a number of factors.;Lastly, Essay 3 examines the impact of a late entrant market entry on sales of incumbent brands. A significant portion of the market entry literature suggests that, compared to market pioneers, late entrants face significant disadvantages that must be overcome. This study explores the factors that contribute to a late entrant's success in achieving market leadership. Factors such as innovative product offerings as well as significant marketing efforts can contribute to a late entrant's success in the marketplace. Results indicate that late entrants can compete with incumbents by attempting to expand the existing market as well as shift sales from existing competitors. The present study has a number of important implications for managers in developing the optimal marketing mix strategy when faced with a product's late market entry.;Overall, this study reveals a number of noteworthy findings. The importance of personal selling, in comparison to advertising, within the promotional mix is noted. However, this research suggests that a number of contingency factors must be accounted for in considering the impact of various promotional efforts, such as the competitive environment and stage of the product's life cycle. This research also suggests that, contrary to a majority of the marketing literature, late entrants into a market can overcome disadvantages they face to become market leaders.