For instance, a product incentive plan (PIP) in British Columbia resulted in a 43.4% increase in the probability of generic substitution (Bhatti, Einarson, & Austin et al
When compared to the market driven system of the United States, it was found that price mark-ups were similar to those found in Finland's regulated pharmaceutical industry (Hermans & Linnosmaa, 2008). A more transparent price-setting model has been proposed in the United States, but thus far it has not gained much support (Capri & Levaggi, 2008)
Health insurance companies often control what a physician can or cannot prescribe. Perhaps the physician has a preference for a certain branded product, but they must issue prescriptions for the generic due to the limitations imposed by the patient's insurance provider (Costea, 2008)
Outsourcing is becoming another popular alternative to mergers and acquisitions. Outsourcing has been found to decrease the time from discovery to market (Coulson & Kleiner, 2008)
This attempt to build branding with the patients is highly controversial. Direct to Consumer Advertising has had a negative impact on the ability of insurance carriers to control cost, as consumers insist on advertised name brands (Friedman & Gould, 2008)
Many of the products that are developed are designed for the treatment of only one specific disease or condition. It was found that the costs of treating psychosis are the highest among all of the sectors (Garis & Farmer, 2002)
The insurance companies have considerable control over the pricing of prescription medication. Historical trends tend to favor less of the burden being placed on insurance companies and a greater burden being placed on consumers (Hayford, 2009)
, 2008). When compared to the market driven system of the United States, it was found that price mark-ups were similar to those found in Finland's regulated pharmaceutical industry (Hermans & Linnosmaa, 2008)
Several propositions have been introduced that would allow direct dispensing of pharmaceuticals by physicians. However, physicians have some reservations regarding these proposed strategies, primarily concerning the quality of patient-physician communication and concerns over a lack of information concerning other drugs that they may be taking (Hunt, Siemiencuk, & Koch, 2008)
Prices are also influenced by supply and demand, just like another other product. For instance, drug shortages result in price rises, while patent expiration can result in a price downturn (Kelton, Rebelein, & Dusing et al
There are many factors that affect the pharmaceutical industry that are not a factor in price elasticity in other industries. Prices were found to differ for the same drugs according to geographic area in the United States (Lal, Mathur, & Arbuckle, 2008)
These products have considerably more price elasticity than those that are for relatively minor ailments. Consumer are wiling to share costs and forego purchases in other industries in order to afford their medications (Mukherjee, 2008)
Industry Structure The pharmaceutical industry is unique in many ways. One of the key distinguishing characteristics is that consumer cannot obtain certain products unless they present a prescription from a licensed physician (Scherer, 2000)
Concerns over counterfeit, substandard drugs are also affecting the current state of the pharmaceutical market. Concerns over these counterfeits and potential dangers associated with them has increased the need for the trust associated with brand names (Yankus, 2008)
These factors create an unfair advantage to the generic drug manufacturers and limits the advantages of being first to market with a new product. Generic medicines often have greater price variability than name brand products (Ziqiang & Sadda, 2008)
1.4) Being that the concept of economies of scale almost always refers to a larger firm's ability to initiate substantial intensifications in production causing market supplies to increase to such an extent that prices take an immediate drop, this type of resource and productivity surplus is exclusively geared to deter the profitable activities of competitors (Bernard & Schulze, 2000)
Nevertheless, social media expert Dr. Amy Henry recently devised a list of generic requirements for a "buzzable" brand: "invasive but invited, individualized, experiential, provocative, conspiratorial, connective and creative" (Henry, 2003, p
First being the past. I would expect a thorough outline of the past marketing models and achievements of this firm, as well as reviews from other users in my industry (Leeflang & Wittink, 2000)
4) Being that the concept of economies of scale almost always refers to a larger firm's ability to initiate substantial intensifications in production causing market supplies to increase to such an extent that prices take an immediate drop, this type of resource and productivity surplus is exclusively geared to deter the profitable activities of competitors (Bernard & Schulze, 2000). The reason for the existence of this method lies in the fact that the operating costs for new market entrants are typically higher than those of incumbents because of their smaller size, undeveloped relationships with suppliers and creditors, and lack of historical market knowledge and experience (Spencer, 2009)