Question

How is sales and marketing different in the pharma sector vs the fmcg sector?

Answer 1

Answer:

FMCG market deals with the supply or availability of consumer products of the routine use. ... In case of FMCG, the buyer has freedom to purchase and consume the product. There is no difference between customer and consumer. Price of the pharmaceutical products are regulated by NPPA & DPCO.

Explanation:

Answer 2

Every type of product is marketed differently so as to best highlight its USPs and use case:

Let's define both the industries and what products they package and sell:

• The Pharma Industry deals with products of medicinal value either for disease prevention or disease cure.
• Fast Moving Consumer Goods (FMCG) is concerned with the distribution of consumer goods to be used on day to day basis.

Now, let's understand the key differences in the two sectors with respect to the following two factors:

1. Sales

Pharma

• In the pharma industry, there is a portion that has inelastic demand, basically a constant demand irrespective of the price of the good, for a sect of its products such as life-saving medicines. This results in no change in sales due to any external factors.
• There also is an elastic demand, that is price sensitive demand, for products that are non-essential or only cosmetically beneficial. This results in good sales in times of good economic conditions.

FMCG

• A majority of FMCG products are non-essential in nature. Hence, they have an elastic demand which results in good sales during times of good economic conditions.
• Some products in this category are essential such as rice, dairy products, etc, and have an inelastic demand, i.e., a constant demand irrespective of the price of the good. This results in little to no change in sales due to any external factors.  

2. Marketing

Pharma

• Products of this category need strong marketing when launched because they either might be entering a space where there is a heavy competition like Paracetamols; or providing a solution that didn't exist previously, i.e., cutting-edge medicine, like Life-elongating medicine.
• There is no major need to follow up after an initial marketing campaign as the customer base of these products is very loyal, not so much by choice but compulsion.

FMCG

• Products in this category need constant marketing because in most categories there are abundant local and some nationwide and perhaps even fewer international rivals.
• Marketing campaigns associating the product with popular individuals and the latest trends is of major importance to the sales of the product.
• Plus an added USP of adhering to higher than normal standards may help these products sell better.

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