MKTG-UB 1 Lecture Notes - Lecture 9: Pharmaceutical Industry

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Document Summary

Intermediaries between manufacturers and consumers can be wholly owned or third party channels. Using third party channels introduces potential conflict as objectives are not aligned. (manufacturer goal: generate profit by selling own brand. Channels" goal: generate profits by selling an assortment of multiple brands) Channel length - the go to market strategy. Manufacturer consumer, manu wholesaler retailer consumer. Manufacturer retailer consumer segment 2. Manufacturer distributor dealer consumer segment 3. Goal: to understand value (profit) for collaborators in the value chain. Retailers will support products with higher margins. Margin: the amount by which the selling price exceeds the purchase price (manufacturing cost) In %: (selling price - purchase price)/selling price. Markup: also the amount by which the selling price exceeds the purchase price. In $: selling price - purchase price. In %: (selling price - purchase price)/purchase price. Structuring the salesforce: size, structure and territory allignment.

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