The Effect of the Marketing Strategy in Performance of the Pharmaceutical Sector

The Effect of the Marketing Strategy in Performance of the Pharmaceutical Sector

Irene Samanta (Piraeus University of Applied Sciences, Greece)
DOI: 10.4018/978-1-5225-2139-6.ch013
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Abstract

The aim of this research is to examine the impact of Marketing Strategy possesses in pharmaceutical sector in Greece and define the competitive and organizational benefits accumulate from the procedure. A quantitative survey was conducted with a sample of pharmaceutical firms. The method used is Factor analysis and a Multivariable Regression Model in order to forecast the total performance of the organization. The importance of the Marketing Strategy in the current economic conditions provides a practical indication of marketing decision making and if managed carefully and closely monitored it can offer a number of direct competitive benefits to the industries.
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Introduction

Over the recent decades, the dominant change in the world economy is the globalization of markets (Yip, 1992, Barlett and Ghoshal, 2000). The birth and adolescence of the global economy is the result of many other changes that the world has experienced during the last years. Advances in telecommunications (including the Internet revolution), advances in transport and production process advances have led the world toward a single converging commonality. Theodore Levitt (1983) recognizes the impact of the technological changes in the new reality of global economy. The enterprises in all over the world have modified their processes in order to thoroughly exploit the technological advances both in communication and information technology. During the last decade, spectacular changes have been notified in the international economic scene and multinational companies have been turned to a key player. Another sector where the enterprises have been focused in a world level are the commercial and financing transactions, which has led to an intensive growth of the world trade that has already exceeded the growth of world production. Even though the risk is too high day by day more and more companies are globalising since it has become a necessity in order for them to survive and grow. In their effort, they are supposed to face many obstacles and undertake enterprising risks. As a result of what so called global economy, global mergers and acquisitions and furthermore investment activity and global merchandise exports are increasing rapidly.

The shift towards a more integrated and interdependent world economy has led to intensive competition (Kotler, 2000). Firms are challenging in the arena of the competitive battle that takes place in the international markets that once were thought to be safe. The need for enterprises to find tools that help them enhance their competitiveness towards other enterprises is urgent. In order for the companies to overcome the difficulties that may arise in the global scene and moreover to sustain their competitive position, firms should take into consideration a line of parameters such as: the nature of the product, strategic objectives of the enterprise (both in the short and long run), the external environment, the internal processes within the company, the strength of the competitors etc. The increased rivalry as well as the severe competitive pressure could be overcome with the appropriate Marketing Plan. Samanta &Kyriazopoulos (2014) states that the greater the implementation of marketing concepts and Planning, the greater the probability of long term profits and market dominance. At any rate, the Marketing Strategy has to be adopted as a Business Philosophy in order to help the company maintain and improve its position in a constantly turbulent, hostile and competitive environment. All the modern enterprises should recognize the importance of Marketing Strategy as a tool and stop facing it as being peripheral to the managerial function (Simkin, 2000).

The present research aims to identify the level of importance of the marketing strategy for the growth and survival of the Greek pharmaceutical industry. Furthermore, it will seek the terms that the pharmaceutical sector use for their Marketing Strategy in orders to enhance their competitiveness and their organizational benefits.

The aim in order to examine the case of Greek pharmaceutical sector was whether the Greek enterprises have recognized the necessity that marketing competency plays a significant role greater economy. Moreover, the contribution of the pharmaceutical sector in the development, employment and social coherence inside the European Union and Greece is substantial.

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