Marketing Success of Pfizer Pharmaceutical Company
Pfizer is undeniably the most successful pharmaceutical company in existence. It rated first in U.S. sales from April 2002 through March 2003, with a total sales number of $20 billion USD, which accounted for 10% of the market share, and 12% growth. It ranked #1 ahead of GlaxoSmithKline, Johnson & Johnson, and Merck & Co., which took the second, third, and fourth spots, respectively. Much, if not most, of Pfizer's success is due to the corporation's marketing genius, which is considered to be among the best in the industry. Pfizer also has one of the best safety records in the industry, which helps in gaining investors and trust in the company. Interestingly, unlike most large corporations, Pfizer draws revenue from a limited number of products. It is the marketing power demonstrated by Pfizer, in which brand recognition plays a huge role, that has resulted in astronomical profits for the pharmaceutical company.
Company Structure and Marketing Strategies
According to Pfizer.com, the pharmaceutical corporation's mission statement is:
We dedicate ourselves to humanity's quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer and animal health products."
To achieve the objectives outlined in this mission statement, Pfizer contains several different corporate entities, including a marketing group, a Global Market Analytics (GMA) group, as well as a department focused on human resources and organizational effectiveness.
The marketing group at Pfizer has helped make Pfizer's products top-sellers in their class continuously throughout the years, which has set industry records, and has increased revenues for the company by 50% over the last five years. The Worldwide Marketing team at Pfizer is an integral part of the company's brand, customer segment and therapeutic specialists. This marketing group works with medical professionals and market analytic groups in order to gain a comprehensive understanding of customer needs and develop innovative marketing strategies. This group also collaborates with external professional and consumer organizations and medical communication companies to make sure that product strategies are heading in the right direction.
The marketing principles utilized by Pfizer guides every aspect of the corporation's business. There are five main principles that are fundamental to Pfizer's business practices. First, the work conducted by Pfizer is grounded in science. With solid clinical research as a foundation, Pfizer's marketing group uses its credibility and knowledge to develop important relationships within the medical community. Second, Pfizer takes an integrated approach to its marketing strategies. Innovation is promoted through the encouragement of teamwork within and across marketing groups. This also allows Pfizer to respond flexibly and promptly to changes in the market.
Third, Pfizer conducts rigorous research and analysis, which are essential in the creation and expansion of markets. This allow Pfizer to identify areas that have unmet needs, and to develop strategies to facilitate effective customer relations. This leads to the fourth marketing principle practiced by Pfizer, which is maintaining the customer as the central focus. Pfizer strives to gain a comprehensive understanding of the needs of customers amidst ever-changing and complicated markets. Fifth, and finally, Pfizer enhances their branding power through the use of education, opinion leader development, and product-specific, tailored marketing strategies. These elements ensure that the brands produced by Pfizer are highly visible and clearly differentiated.
Pfizer is continually trying to communicate complex, scientific messages in an effective manner to a diverse audience. This is accomplished via the marketing group, which targets customers that range from doctors and patients to third-party payers and patient advocacy groups.
Another integral part of Pfizer's structural make-up is the Global Market Analytics (GMA) group. This is a group of internal market research consultants that advise the many pharmaceutical marketing teams that operate within Pfizer. GMA is of utmost importance to Pfizer as a whole, in that the group identifies areas of need that are unmet, and assist the marketing teams in developing better, more effective strategies for customer relations with potential, existing and prior customers. This group uses qualitative or exploratory research, along with ideation and complex quantitative analysis to aid in the development of appropriate measures of marketing success.
GMA consists of four functional areas, which are all important to the success of Pfizer. The first area is the Product Research Group. This group works closely with a marketing team to develop strategies for marketing the brands represented by Pfizer. This includes conducting research with physicians, consumers, and managed care organizations. The second functional area of GMA is the New Products Market Research Group. This groups works in close proximity with Pfizer Global Research and Development at the early stages of a products existence, in order to gather data that may help in the determination of the product's potential value in a commercial market. In addition, this group also helps in the development of clinical studies required for the labelling of products.
The third functional area of GMA is the Customer and Local Market Research Group. This group has several responsibilities, including the analysis of product-specific data in local markets, as well as the uncovering and analysis of current and developing trends in relevant populations, including the medical community.
The fourth, and final, functional area of GMA is the Management Science Group. This group uses quantitative modeling analyses, systematic frameworks and organization learning to address a range of sales and strategic marketing issues. These issues include field force structure and needs of sales expansion. Essentially, this group helps internal customers and senior management effectively make decisions grounded in a deeper understanding of trends and challenges currently facing the marketplace.
The department focused on human resources and organizational effectiveness is also a fundamental part of the processes involved in the success of Pfizer. Human Resources plays a vital role in the Pfizer corporation, due to dedication to the recruitment of top-notch talent from a wide range of backgrounds and experiences, and furthermore ensuring that these talented individuals stay within the company and grow professionally. Pfizer accomplishes this by offering generous compensation and benefits, as well as numerous developmental initiatives and meticulous organizational planning.
Three distinct groups compose the Human Resources entity at Pfizer. These groups are the Human Resource Generalists, the Strategic Staffing Group, and the Human Resources Strategic Group. The Human Resource Generalists guide Pfizer's main business units through important processes, such as colleague development and reviews of compensation. This groups works along with the Strategic Staffing Group, which is responsible for attracting and hiring talent to work with Pfizer. These two groups know the business of Pfizer's internal clients, and provide continuous support to sales, marketing, financial and medical teams within Pfizer. Strategies are devised for talent development and retention, and the needs regarding skills and capabilities of colleagues are addressed.
The Human Resources Strategic Process Group consults on human resource processes to both the Human Resource Generalists and the Strategic Staffing Group. Some of these processes include compensation analysis and colleague communications.
Pfizer also has a Worldwide Organizational Effectiveness and Consulting Services Team (OE and CS) works within the company to solve complex business problems, enhance business performance, and increase the company's organizational capabilities. This group works collaboratively with Human Resources, Pfizer Global Learning and Development, as well as other functional groups within the company, in order to pursue each project with an analytic, customized approach.
OE and CS plays six roles within Pfizer. First, this group is involved in the design of the organization, the improvement of processes, as well as alliance support. Second, OE and CS plays a crucial role in leadership development and succession planning for Pfizer. Third, this group also aids in the improvement of individual and team performance. Fourth, OE and CS are involved in ensuring that the field sales force employed by Pfizer is operating effectively. Fifth, this group helps in the task of change management along with colleagues in Information Technology. Sixth, and finally, OE and CS are involved consultations with external customers on a limited basis.
Another integral part of Pfizer's success is their effective processes of product development. The Product Development Team is the connective core of Pfizer, which connects research, marketing, and upper management of Pfizer. This group identifies opportunities for commercial development, and prepares both the products and the market for lunch. Therefore this part of the company is crucial for the marketing success of products. The Product Development Team provides guidance to Pfizer Global Research and Development and Pfizer leadership throughout the research and development process. This group consults on the allocation of resources and management of the product portfolio. Product Development at Pfizer is divided into four main functional areas, including Market Assessment, New Product Development, Portfolio Decision Analysis, and Global Development Teams.
All of these structural units that make up Pfizer are important to their marketing success. As mentioned earlier, the marketing principles embraced by Pfizer guide every aspect of the company's conduct.
Pfizer is considered to have one of the best marketing forces in the business. One key strength embodied by Pfizer is its brand power. Pharmaceutical companies are…