Penetration Pricing Strategy As Tool For Effective Marketing Of Pharmaceutical Products In Nigeria (A Study Of Juhel Pharmaceutical Limited)

ASTRACT

Generally, price is the amount of money charged for a product or service. Price is one of the controllable variables which refers to the sum of all the values that customers give up in order to gain benefit. The main objective of the study is to evaluate the pricing strategy for effective marketing of pharmaceutical products, which emphasizes on Juhel Pharmaceutical Limited. The study adopted primary data method of data collection and the variables examined are Penetration Pricing, Effective Marketing. The researcher administered a research questionnaire to each member of the target population since it was the most appropriate tool to gather the information. Descriptive statistics such as percentages and tables were used in the analysis of data and the researcher employed Chi-Square to estimate the relationship of the variables. Data presentation was done by the use of tables for easy understanding and interpretation. The study found that Penetration Pricing Strategy is significant to Pharmaceutical Products at 5% level of significance. In view of the above, the public is recommended by the study to accommodate Penetration Pricing Strategy as tool for effective marketing of Pharmaceutical Products.

TABLE OF CONTENTS

Title page ﾿                     I

Declaration ﾿           II

Certification ﾿          III

Dedication ﾿          IV

Acknowledgement ﾿           V

Abstract ﾿          XII

CHAPTER ONE: INTRODUTION

1.1 ﾿ Background to the Study ﾿ 1

1.2 ﾿ Statement of the Problem ﾿ 3

1.3 ﾿ Objectives of the Study ﾿ 4

1.4 ﾿ Research Questions    ﾿ 4

1.5 ﾿ Research Hypotheses ﾿ 5

1.6 ﾿ Significance of the Study ﾿ 6

1.7 ﾿ Scope of the Study ﾿ 6

1.8 ﾿ Limitations of the Study                                                               6

1.9 ﾿ Definition of Terms ﾿ 7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Overview of Marketing ﾿ 9

2.2 Pricing ﾿ ﾿ 11

2.2.1 Objectives of Pricing ﾿ 12

2.2.2 Technologies in Pricing ﾿ 13

2.2.3 Nine Laws of Pricing Sensitivity and Consumer 

Psychology ﾿                                                       17

2.2.4 Approaches ﾿ 18

2.2.5 Pricing Tactics ﾿ 19

2.2.6 Pricing Mistakes ﾿ 19

2.3 Pricing Strategies ﾿ 20

2.3.1 Models of Pricing  ﾿ 21

2.3.2 Variable Pricing Strategies ﾿ 35

2.3.3 Yield Management Strategies ﾿ 36

2.4 Role of Pricing Marketing ﾿ 37

2.5 Penetration Pricing ﾿ 39

2.5.1 Research ﾿ 42

2.6 Pharmaceutical Marketing ﾿ 43

2.6.1 New PHRMA Code ﾿ 45

2.6.2 Free Sample ﾿ 46

2.6.3 Continuing Medical Education ﾿ 47

2.6.4 Pharmaceutical Representatives ﾿ 47

2.6.5 Key Opinion Leaders ﾿ 50

2.6.6 Colleagues ﾿ 52

2.6.7 Private and Public Insurers ﾿ 52

2.6.8 Drug Coupons ﾿ 54

2.6.9 Economics ﾿ 55

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Research Design ﾿ 57

3.1 Area of the Study ﾿ 57

3.2 Sources of Data ﾿ 57

3.3 Population of the Study ﾿ 58

3.4 Sample and Sampling Technique ﾿ 58

3.5 Sample Determination            ﾿ 59

3.6 Instrument for Data Analysis            ﾿ 59

3.7 Validity of Research Instruments ﾿ 60

3.8 Reliability of Research Instruments ﾿ 60

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Data Presentation and Analysis ﾿ 61

4.2 Test of Hypotheses ﾿ 75

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings ﾿ 86

5.2 Conclusion ﾿ 86

5.3 Recommendations ﾿ 87

References

Appendixes