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Business And Economics Essay

1198 words - 5 pages

Product Team Cialis: Getting Ready
Brief background
Mark Berbato is the product team leader and executive director of Cialis. He has for a long time worked to provide a remedy for impotence in men competing existing leader, Viagra. The team is structured according to the function of its members. The product and marketing team works day and night to provide differential marketing strategies in order to survive the competition. Viagra has been used for a long time to treat erectile dysfunction in men. Despite this statistics, Mark’s team is optimistic about the uncertainties involved. Lilly management decided to find a better erectile dysfunction treatment by first understanding the ...view middle of the document...

The team was forced with a task of clearly choosing a market for Cialis and ways of achieving results against the competition. The side effects of ED drugs such as facial flashing also prevents users from trusting the drugs hence it is very difficult to penetrate the market. The physicians believe that they are the only people who decides what patients should take hence they influence the consumption habit of ED victims.
Important details for better decision making
For better understanding and decision making, the team should first understand its target group hence details regarding consumption of Viagra, the health practitioners, the partners of male victims, and the views on the media regarding those who do not take the drug and why should be analyzed. The consumer today is more demanding, more connected and less loyal to a product hence the team should find better ways of dealing with certain target groups especially if they go for the niche strategy. Things that make the chosen target group different from the rest should be studied and the details should be analyzed. In order to make the right choice between the two options, the decision makers must compare the two market strategy so as to justify their choice.
Analysis
Consumers tend to follow what others do; it is a life preserving habit. The target market is already used to the existing product hence changing their perspective involves a lot of work. All the two market strategies can be effective depending on the approach given by the decision markers. The niche strategy can only be used when the team decides to assume the position held by Viagra and concentrate on their product. The team can then market Cialis to a specific target group regardless of how Viagra is performing in other areas. In the health sector, people tend to avoid using harmful substances despite the campaigns conducted by the health experts and advices provided. Viagra is an example of such products that have received mixed reactions.
Niche strategy
Pros
The reason for niche strategy is that working with a specific target group is cheaper especially for a new product in the market that is not well established. It is also a way of avoiding coalition with the existing products such as Viagra. Narrowing the market segment means that the new product will have relatively less competition.
Cons
The strategy however assumes the importance of other target groups because of its narrow market segment. This strategy may be successful but its slower hence can easily cause failures during the implementation. It is sometimes difficult to identify the right target group to focus on hence the team can choose...

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