createdwith the objective of exploiting and drawing out the maximum shareholders’revenues.
This research focuses on the link between M and company revenuefrom a marketing angle i.e. promotional tools. This study can be used todiscover how these promotional tools can differ, how promotional toolsinfluences the overall outcomes, and analyse the company’s market performance.
Lookingat AstraZeneca’s M, they would need to create tools of promotion if theywant to continue being one of the UK’s biggest pharmaceutical companies basedon the quality of their drugs they have in their development pipeline Ferrell(2013). The promotional tools which AstraZeneca uses as mentioned by Ferrell etal (2013) is to understand the specific uses and benefits that target customersseek in a new product, describing the product and include potential uses andbenefit, and the potential for creating a complete product line that can createsynergy in sales. With its various acquisitions throughout the years, AstraZeneca wouldneed to analyse the feasibility of their product concepts, including issuessuch as anticipated sales, required return on investment, time of marketintroduction, and length to recoup the investment before their product goes offpatent. The case study ‘Market LeaderStrategies: AstraZeneca Defending its Turf.
‘ (Icmrindia., 2008) has stated thatAstraZeneca anticipated that they would lose market share due to the patent expiryof Losec and so had initiated a strategy to create a new drug under the nameNexium and switched the existing sales of Losec to Nexium. AlthoughAstraZeneca’s marketing strategy was proven to be a success and earning anumber of awards. Icmrindia (2008) criticised that Nexium was a triumph ofmarketing over scientific innovation, facing several lawsuits on the promotionin regards to the strategy for Nexium.Manyresearchers such as Child (2001), Kearney (1988), Haspelagh & Jemison(1991) said that integrating promotional activities post M is anotherissue in this field. They indicated that it is vital for M integration tobe a success.
Munoz(2005) stated that many pharmaceutical companies make their investments througha range of integrated promotional tools which span across different mediumssuch as across direct marketing/internet, advertising, promotions which aredesigned to move the prospects of product portfolios through the continuousprocess of product awareness, consideration, purchase, and loyalty.Additionally, the author has admitted that promotion alone has many problems inrelation to a tool which generates the marketing of return on investment. Itcan be argued that although promotional tools are more quantifiable than othermarketing activities because of its direct response, and it is increasinglyused as a tool associated with building up a pharmaceutical company’s brand aswell as their product portfolios (Munoz., 2005).