Msd Pharmaceutical Companies Distribution Channel Design And Implementation

The development of China has been attracting the attention of the whole world after reform and opening policy was carried. The medicine industry has been developing rapidly and showed good growth trend.. With the development of economy, people have a higher standard of demand on health and medical services, which provides unprecedented opportunities for medicine industry and logistics industries.The marketing process of the special commodity, medicines, requires specific channels, which include the whole set of channels and sectors for the medicine to transform from the manufacturer to the distributor, then to the hospital and the pharmacy and finally to the patient. The above marketing channels are important links between manufacturers and consumers and major contents of manufacturer's whole strategy. As well as the continuous national medicine reform and market growth, especially after releasing of Good Manufacturing Practices for Pharmaceutical Products (GMP) and Good Supply Practices for Pharmaceutical Products (GSP), central government price review and hospital centralized bidding and purchasing, the sequences of medicine circulation have been improved and market competition becomes more intensely.Marketing channels support manufacturers achieve their sales target and effectively deliver goods flow (medicine), cash flow (payment), and information flow (sales data). They are the one of most important exterior resources. Those who possess complete and effective sales channels will achieve great advantages in the competitive market.By a review of China medicine industry status and policy development, an analysis of medicine channel model changes, effected factors and existed issues, and use relevant concept of marketing and channel management, this article study major problems confronted by medicine sales channel. And by combining MSD company's characters, this article brings forward some new ideas and methods on channel model development, channel tiers set up, channel members selection and evaluation, and management of distributors and channel conflict, which have been proved to be of referencing value.