An empirical investigation of the marketing practices within the Pharmaceutical industry in Nairobi

Abstract

The study objective was to investigate the marketing practices within the pharmaceutical industry in Nairobi. The research was conducted between March and August 2001. The sampling frame comprised one hundred twenty three (123) pharmaceutical firms in Nairobi dealing with manufacturing and distribution of drugs as listed in the medical Directory, 2000. Sixty-two (62) firms were selected using simple random sampling process. The underlying premise was that lately there has been a hue and cry on the question of quality and rising cost of pharmaceutical products. Inadequate regulatory and lengthy bureaucratic procedures have led to inefficient and insufficient supplies of pharmaceutical products in the public sector. The Advert of HIV/AIDS has further complicated the issues with the moral question being asked on whether pharmaceutical firms should be allowed to profit from Human Misery. Alongside these, major changes have occurred in the industry which has been characterized by the exit of multinational manufacturing facilitates, proliferation of firms and number of products available in the market. Owing to these challenges, the need for firms to embrace the marketing concept cannot be over emphasized. Both primary, and secondary data was collected. Secondary data was obtained from extensive review of literature, while primary data was collected using structured and unstructured questionnaire comprising two sections. The technique for analyzing the data comprised the use of descriptive statistics such as charts, tables, graphs and percentages. The study found that although most of the firms were adhering to some of the marketing concepts, they were far from grasping its full potential. The firms did not have adequate procedures and systems necessary for implementation of marketing concepts. The marketing plans were short term and did not focus of the strategic value of building brands. The author recommends that marketers should behave like entrepreneurs by creating market driven strategies by adopting and implementing the marketing concepts rather than applying it haphazardly, thereby failing to realise its full benefit. Marketing managers must have factual, market based information that will help them design innovative ways and strategies on how to keep their market share and profitability in the short and long term. The finding reported represent the population of the pharmaceutical industry in Nairobi that is involved with marketing activities. That is both manufacturing and distribution firms. It is through the actions and decisions of these respondents that we are able to measure, learn and make conclusions and recommendations on the application of marketing concepts