An assessment of market orientation of pharmaceutical companies registered in Goa

Abstract

There are contrasting views on consumer goods style of marketing for the pharma products, the impact of new drugs on the overall health of society, and specific ethical concerns related to marketing. The paper evaluates the need for market orientation in the face of growing competition in the pharmaceutical industry, coupled with ethical considerations that will strengthen the marketing strategy of every organization. The study traces the antecedents and consequences of a market orientation, and assesses the ethical dimension of implementing the marketing concept in the pharmaceutical industry. Drawing on this background, the paper aims to understand the process of initiation and implementation of change efforts directed at improving the market orientation of the selected pharmaceutical firms registered in Goa, under the Companies Act. Data for the present paper which is part of the ongoing Ph.D. research work on 'Marketing Practices and Problems of Pharmaceutical Firms Registered in Goa' has been collected by administering a structured questionnaire to the CEO's/Senior Managers of select companies and conducting personal interviews to cross validate the responses. The eight selected Goan Companies are then ranked based on the scores obtained on intelligence generation, intelligence dissemination and response design/implementation components of market orientation. Statistical measures of standard deviation and coefficient of variation test the degree of unanimity among firms on these components and implications are drawn. Based on market orientation profile of each individual firm, a link between market orientation and business performance is then sought to be established for the selected firms. The paper highlights the ethical concerns related to pharmaceutical marketing in the Goan context and ends with suggestions for a healthy balance between the two.