Factors and Reasons That Contribute to the Failure of the Pharmaceutical Companies Products - Research Paper Example

The paper “Factors and Reasons That Contribute to the Failure of the Pharmaceutical Companies Products” is an excellent version of the research paper on marketing. Developing drugs is not just a one-two step process. It requires precision and expertise. That is why these drugs have to be developed by experts who have relevant qualifications in this field. In the United States market, companies have to submit a new drug application or NDA to the Food and Drug Association in order to introduce a new drug into the market. It is the company’s duty to submit the drug to tests and submit evidence to the FDA that it’s safe and effective for human usage.

If the product is then successfully done, the company can now market the medicine in the price that they deem right after the calculation of the costs incurred. The problem with this product, and our basis for research, is that the companies do not get the expected returns from this creation, even after marketing. The products created are assumed to have demand from the people, but ironically, there is no demand for these products. This study seeks to establish the reasons for this and why the products don’t give the expected revenue.

Research Questions
This study aims at investigating the factors and reasons that contribute to the failure of the pharmaceutical companies’ drugs/products. Four factors have been taken into consideration, some from a marketing perspective, so as to understand the reason for this.

Firstly is the determination of the types of products that consumers would prefer. What product would capture the target population better and why? There is also the need to acknowledge the laws by the governing body, in this case, the FDA in the creation of these new drugs. The laws are clearly stipulated on their website. The product has to be tested and evidence submitted by the company itself. Thirdly, there needs to be a comparison between the first products that were marketed and the new ones. It is necessary to understand the strategies that were used and maybe correct where we went wrong. Lastly, we have to quantify the criteria in consideration of prices, the volume of the product, the effectiveness in performance, its conditions, the patent and the innovativeness of the product. The product cannot be over-priced, for example, just because we are targeting a higher profit percentile.

Significance of the study
Several researchers have carried out this study but none has come up with a conclusion on the matter. This has made it necessary to carry out the study and get to know why these products are advertised daily on our screens, billboards, etc. but pharmaceutical companies don’t actually make a killing on them.

The study will help to indicate factors that also affect the marketing of these products and the role they play in the market. Recommendations have been highlighted as better ways of improving the research and making a significant contribution to the marketing industry are being sought.

Literature review
In the past 200 years, there has been an upsurge in the innovation of new drugs. With these innovations come to misuse and abuse. Laws have been developed to combat these abuses over the years. As an example, heroin was introduced in 1898 as a medicinal drug. It was called for banning in the same year after health officials found it so addictive. Abuse of non-narcotics was decreed as the responsibility of the FDA in 1938 (Good Medicine Bad Behavior, 2015).