Maximising the value of a pharmaceutical line extension using discrete choice modelling, secondary data and market segmentation

Michael Latta and Melissa Clark
Additional contact information
Melissa Clark: Assistant Professor, Department of Management and Marketing, Berry College, USA

Applied Marketing Analytics: The Peer-Reviewed Journal, 2016, vol. 2, issue 1, 84-91

Abstract: Pharmaceutical marketing is an industry that differs from consumer marketing in many ways. Pharmaceutical marketers must consider many factors when making product development choices. This study utilises a discrete choice model to make a recommendation for maximising the value of a cough syrup product line extension by an established pharmaceutical company, Celltech. Two cough syrups — Tussionex®, a hydrocodone polistirex extended release suspension product, and Delsym®, a dextromethorphan polistirex extended release suspension product — were already marketed by Celltech. Primary data in the form of a telephone survey of 160 primary care physicians and 140 paediatricians and secondary data from the IMS National Prescription Audit were utilised to inform the research process and generate tradeoff and cannibalisation analyses. Those analyses were done and FDA approval was obtained for the product (Codeprex®, a codeine polistirex extended release suspension product) in 2004, but the product was abandoned after Celltech was acquired by UCB-USA. The value of FDA-approved Codeprex™ was shown to be maximised by the tradeoff and cannibalisation analyses, but corporate strategy trumps applied marketing analytics in this case.

Keywords: pharmaceutical marketing; discrete choice model; physicians; product line extension; secondary data; market segmentation (search for similar items in EconPapers)
JEL-codes: M3 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/4545/download/ (application/pdf)
https://hstalks.com/article/4545/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:ama000:y:2016:v:2:i:1:p:84-91

Access Statistics for this article

More articles in Applied Marketing Analytics: The Peer-Reviewed Journal from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().