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Managing Across Substitute Categories : How to Allocate Marketing Resources under Changing Competitive Intensity?
Type
conference paper
Date Issued
2010-06-16
Author(s)
Keller, Jens
Pauwels, Koen
Abstract (De)
Both changing competitive intensity and the pharmaceutical industry have become important research topics in economics and marketing. While the economics literature has started to consider the fortunes of generic drug manufacturers, the marketing literature has remained focused on how brand name drug manufacturers should respond to entry and competition from other brand name drugs and from generics. No paper has looked at the marketing actions and their effectiveness for both brand name and generic drug manufacturers. Moreover, research has considered competition and marketing spending within one chemical compound or for a therapeutic class as a whole, instead of distinguishing within-compound from across-compound competition, i.e. among drugs targeting the same therapeutic class with objectively different compounds. This is particularly important for marketing spending allocation because many large brand name and generic drug manufacturers produce several compounds for the same therapeutic class, and thus face a choice of entry strategies and marketing allocation across compounds. Our study uses a Dynamic Linear Model to investigate price response and marketing effectiveness of brand name and generic drug manufacturers. We analyze within-compound and across-compound behavior by incorporating 6 major compound-submarkets of the total antidepressant market.
Language
German
HSG Classification
contribution to scientific community
Refereed
No
Book title
Marketing Science 2010
Publisher
INFORMS
Publisher place
Hanover
Event Title
32nd INFORMS Marketing Science Conference 2010
Event Location
Köln
Event Date
16.-19.06.2010
Subject(s)
Division(s)
Eprints ID
62168