Market segmentation and targeting in the pharmaceutical industry are crucial for effectively reaching and serving the diverse needs of various groups within the broader market.
This process involves dividing the potential market into distinct segments based on different characteristics and then selecting one or more of these segments to focus marketing efforts on.
Let’s delve into these concepts in more detail:
Market Segmentation
Market segmentation in the pharmaceutical sector can be based on several criteria, including but not limited to:
1. Demographic Segmentation:
Dividing the market based on variables such as age, gender, income, education, and occupation.
For instance, some pharmaceutical products are specifically designed for elderly patients, while others may target women or children.
2. Geographic Segmentation:
Segmenting the market based on geographic criteria like nations, states, regions, or cities.
This is particularly relevant for pharmaceuticals due to the prevalence of certain diseases in specific areas or variations in healthcare regulations across different regions.
3. Psychographic Segmentation:
This involves segmenting the market based on social class, lifestyle, or personality characteristics.
It recognizes that people with similar demographic profiles can exhibit very different psychographic profiles.
4. Behavioral Segmentation:
Dividing the market based on the behavior of individuals such as usage rate, benefits sought, user status, and loyalty status.
For example, some consumers may be looking for pharmaceuticals that offer immediate relief, while others may prioritize long-term treatment with minimal side effects.
5. Needs-based Segmentation:
Identifying and grouping potential customers based on their specific health needs or conditions, such as diabetes, hypertension, or mental health disorders.
This is particularly relevant in pharmaceuticals, where products are often developed to meet the specific needs of patients with particular conditions.
Targeting
After the market has been segmented, the next step is targeting, where the company selects one or more of these segments to focus its marketing efforts on.
The choice of target segments involves a deep analysis of each segment's attractiveness and the company's ability to serve them effectively.
This decision is critical and influences product development, marketing strategies, and sales approaches. Targeting strategies in the pharmaceutical industry might include:
1. Undifferentiated Targeting:
Marketing the same drug to a broad audience without any modification.
This approach is less common in pharmaceuticals due to the highly specific nature of many medical conditions.
2. Differentiated Targeting:
Creating different products or marketing strategies for different market segments.
For example, developing variations of a medication tailored to children, adults, and the elderly.
3. Concentrated Targeting:
Focusing efforts on a single market segment.
This is often the strategy for pharmaceutical companies that specialize in niche markets, such as rare diseases.
4. Micro-marketing:
Tailoring products and marketing programs to suit the tastes of specific individuals and locations.
While challenging in the pharmaceutical industry, personalized medicine and local community health initiatives can be seen as forms of micro-marketing.