Related Experiment Video
Updated: Aug 10, 2026
12:09
Studying Food Reward and Motivation in Humans
Published on: March 19, 2014
Effects of promotion on pharmaceutical demand
Social Science & Medicine (1982)
|January 1, 1985
Summary
Promotional spending on physician sales calls and journal ads showed no impact on pharmaceutical market size or share. Drug companies should reassess advertising strategies for better sales elasticity and effectiveness.
Area of Science:
- Pharmaceutical marketing
- Health economics
- Econometrics
Background:
- Pharmaceutical promotion significantly influences market dynamics.
- Understanding the sales elasticity of promotional activities is crucial for strategic decision-making.
Purpose of the Study:
- To investigate the causal relationship between promotional expenditure and pharmaceutical market size (primary demand) or market share (selective demand).
- To estimate the sales elasticities of physician detailing and medical journal advertising.
Main Methods:
- Utilized Autoregressive Integrated Moving Average (ARIMA) modeling to estimate sales elasticities.
- Analyzed data for 7 drugs across benzodiazepine and diuretic therapeutic categories.
- Measured both market-expansive and market-share effects of promotional activities.
Main Results:
- No statistically significant correlation was found between detailing or journal advertising expenditures and changes in primary or selective demand.
- The study suggests that pharmaceutical advertising may have zero elasticity for both primary and selective demand.
Conclusions:
- Current promotional strategies, including physician detailing and journal advertising, may not effectively drive market growth or share.
- Drug manufacturers are advised to evaluate potential reductions in promotional spending and explore alternative advertising methods with higher sales elasticity.
Related Concept Videos
01:25Drug Regulation
Drug regulation encompasses the management of drug usage by evaluating its safety and efficacy through assessments conducted by regulatory authorities. Regrettably, the history of drug regulation is marred by several catastrophic events. One such incident is the Elixir Sulfanilamide tragedy, in which the toxic compound diethyl glycol was included in a sweet-tasting medication, leading to numerous fatalities. This event prompted the enactment of the Food, Drug, and Cosmetic Act in 1938. Under...
01:19Pharmacovigilance
Post-marketing surveillance is a critical component of pharmaceutical regulation, often uncovering unanticipated adverse drug reactions (ADRs) once a drug is widely used over an extended period.
This process, termed pharmacovigilance, aims to detect, evaluate, and minimize harmful effects related to medication use. The data collection for pharmacovigilance depends on spontaneous reporting systems, where healthcare professionals or patients voluntarily report suspected ADRs.
In some cases, there...
This process, termed pharmacovigilance, aims to detect, evaluate, and minimize harmful effects related to medication use. The data collection for pharmacovigilance depends on spontaneous reporting systems, where healthcare professionals or patients voluntarily report suspected ADRs.
In some cases, there...
01:03Dose-Response Relationship: Overview
Agonists can bind with and activate receptors, resulting in the formation of drug-receptor complexes. Once formed, these complexes catalyze many biochemical processes at the cellular level and subsequently induce a pharmacologic response. The degree of response is directly proportional to the fraction of activated receptors, which in turn, depends on the concentration of the drug at the receptor site as well as the sensitivity of the receptor. An increase in the administered dose contributes to...
01:02Prescription, Nonprescription and Orphan Drugs
Prescription drugs require a prescription from a medical practitioner and can only be obtained from a pharmacy. They have many applications, including treating pain, anxiety, and hypertension.
The misuse and addiction to prescription drugs is a growing problem that can affect people of all age groups, specifically teenagers. This can happen when prescription medications are used in ways not intended by the prescriber, such as taking someone else's prescription or using medication for...
The misuse and addiction to prescription drugs is a growing problem that can affect people of all age groups, specifically teenagers. This can happen when prescription medications are used in ways not intended by the prescriber, such as taking someone else's prescription or using medication for...
01:30Prodrugs
Prodrugs are a class of pharmaceutical compounds that undergo a biotransformation process within the body to be converted into a pharmacologically active drug. Prodrugs are designed to improve the therapeutic properties of the parent drug, such as enhancing bioavailability, increasing stability, or reducing toxicity. The concept of prodrugs revolves around modifying the chemical structure of the original drug to make it more effective or convenient for administration.
Prodrugs help overcome...
Prodrugs help overcome...
01:15Impact of Pharmacokinetic–Pharmacodynamic Models: Regulatory Decisions
PK–PD modeling has significantly influenced FDA regulatory decisions, particularly drug approval, dosage optimization, and labeling. These models integrate pharmacokinetics (PK) and pharmacodynamics (PD) to predict drug behavior and effects, aiding in optimizing dosing regimens and enhancing the probability of clinical trial success.One notable example is Nesiritide (Natrecor®), a recombinant human brain natriuretic peptide for treating acute decompensated congestive heart failure (CHF).