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The application of new product development principles in the pharmaceutical industry : a comparative study of marketing practitioners' perceptions

Thesis (MComm)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: New products are indispensable to the growth of the modem business enterprise. Increased
global and local competition, better informed consumers, rapidly changing technology and the
short life span of products are typical of the reasons why it is necessary to develop new products.
Traditionally new product development took place in accordance with a rigid new product
development process where a next phase was dependent on the completion of preceding phases.
The increased pressure to produce new products in shorter time spans has led to the development
and application of less streamlined and rigid processes for the development of new products.
The pharmaceutical industry has certain unique characteristics important for new product
development. It spends more than five times than the average of all industries on research and
development. New product development in the pharmaceutical industry largely depends on the
discovery of new clinical entities and the development process is furthermore also highly regulated
by governments. The focus of product evaluation in the pharmaceutical industry has also undergone
a major shift. Traditionally the industry dealt with diseases which were defined broadly and as such
the focus was on diseases and not individuals. The result was that consumer acceptance was virtually
never evaluated. The shift is now to consumer acceptance because consumers become increasingly
better informed and take part in decisions regarding their health and medical care. A further reason
for the consumer focus lies in the genetic understanding of patients and this enable pharmaceutical
companies to segment patients on the basis of pharmaco-genomic descriptions.
The objectives of the study are twofold. In the first instance, the study assesses whether marketing
practitioners in the South African pharmaceutical industry agree with the fundamental principles of
new product development which are identified in academic literature. The responses from marketing
personnel were obtained and analysed to establish their beliefs regarding new product development.
The fundamental principles of new product development which form the focus of this study, were
those that Calantone, Di Benedetto and Haggblom (1995) used in their research. The second
objective of the study is to compare the findings in respect of the South African pharmaceutical
industry with those of the study undertaken by Calantone, Di Benedetto and Haggblom in 1995. The
purpose of the study is to establish whether the new product development principles taught in
marketing management courses are relevant for the pharmaceutical industry. The method of investigation was divided into two sections, i.e. a literature overview and an
empirical study. The literature study commenced with research on new product development in
the South African Pharmaceutical Industry and other parts of the world.
The Calantone, Di Benedetto and Haggblom (1995) questionnaire was also used in this study for
data collection. The 91 pharmaceutical companies listed in Volume 34 of the 1999 MIMS Desk
formed the population of the study. After contacting these companies a more accurate list was set
up. After taking into account all the mergers that took place, 65 companies eventually constituted
the population. Twenty nine of the questionnaires sent were returned and could be used. This
represents a response rate of 44.6%. The organisations involved were responsible for 69.4% of
the annual turnover of the total pharmaceutical industry in 1998 and their responses could
therefore be regarded as representative of the pharmaceutical industry of South Africa. The
questionnaire attended to the following principles of new product development:
• Product innovation
• New product development and launch tasks
• Product diffusion
• Interface between marketing, research and development
• Organisational issues
The information collected in respect of each pharmaceutical company was the following:
• Annual turnover
• Number of products manufactured and marketed
• Number of employees
• Number of new products launched during the past five years
The findings of this study indicate that marketing staff in the South African pharmaceutical industry
strongly agreed with those fundamental principles of new product development which were
identified in academic literature. There was also a significant correlation between this study and the
study undertaken by Calantone, Di Benedetto and Haggblom with respect to the percentage
agreement on the various statements. It may thus be concluded that new product development
principles taught in marketing managing courses are relevant for and are applied by marketing staff
in the pharmaceutical industry in South Africa. / AFRIKAANSE OPSOMMING: Nuwe produkte is onontbeerlik vir die groei van die moderne sake-onderneming. 'n Toename in
globale en lokale mededinging, beter ingeligte verbruikers, snel veranderende tegnologie en die
kort lewensduur van produkte is tipies van die redes waarom dit belangrik is om nuwe produkte
te ontwikkel. Tradisioneel het nuwe produk ontwikkeling volgens 'n rigiede nuwe produk ontwikkelingsproses
plaasgevind waar 'n volgende fase afhanklik was van die voltooiing van
voorafgaande fases. Die verhoogde druk om nuwe produkte in korter tye te vervaardig het tot die
ontwikkeling en toepassing van minder stroombelynde en rigiede prosesse vir die ontwikkeling
van nuwe produkte gelei.
Die farmaseutiese bedryf het sekere unieke eienskappe wat belangrik is vir nuwe produk ontwikkeling.
Die farmaseutiese bedryf bestee meer as vyfkeer die gemiddelde van alle bedrywe
op navorsing en ontwikkeling. Nuwe produk ontwikkeling in die farmaseutiese bedryf is grootliks
afhanklik van die ontdekking van nuwe kliniese entiteite en die ontwikkelingsproses word verder
ook intensief gereguleer deur regerings. Die fokus van produkbeoordeling in die farmaseutiese
bedryf het ook 'n verskuiwing ondergaan. Tradisioneel het die bedryf gehandel met siektes wat
breed omskryf is en die fokus as sulks was op siektes en nie op individue nie. Die gevolg was dat
verbruikersaanvaarding feitlik nooit beoordeel was nie. Die verskuiwing is nou na verbruikersaanvaarding
omdat verbruikers toenemend beter ingelig word en deelneem aan besluite wat hulle
gesondheid en mediese sorg raak. 'n Verdere rede vir die verbruikerfokus is daarin geleë dat
pasiënte nou geneties verstaan kan word en dit maak vir farmaseutiese maatskappye moontlik
om pasiënte op 'n farmakologies-genomiese basis te segmenteer.
Die doelstellings van die studie is tweeledig. In die eerste instansie beoordeel die studie of
bemarkingspersoneel werksaam in die die Suid-Afrikaanse farmaseutiese bedryf, saamstem met
die fundamentele beginsels ten opsigte van nuwe produk ontwikkeling wat in die akademiese
literatuur geïdentifiseer is. Die response van bemarkingpersoneel is verkry en ontleed om hulle
oortuigings ten opsigte van nuwe produk ontwikkeling vas te stel.
Die fundamentele beginsels van nuwe produk ontwikkeling wat die fokus van hierdie studie vorm,
is dié wat Calantone, Di Benedetto en Haggblom (1995) in hulle navorsing gebruik het. Die
tweede doelstelling van die studie is om die bevindings ten opsigte van die Suid-Afrikaanse
farmaseutiese bedryf te vergelyk met dié van die studie onderneem deur Calantone, Di Benedetto
en Haggblom in 1995. Die doel van die studie is om vas te stel of die nuwe produk ontwikkeling beginsels wat in bemarkingsbestuurkursusse onderrig word, relevant is vir die farmaseutiese
bedryf.
Die metode van ondersoek is onderverdeel in twee gedeeltes, naamlik 'n literatuuroorsig en 'n
empiriese studie. Die literatuurstudie het begin met navorsing oor nuwe produk ontwikkeling in
die Suid-Afrikaanse farmaseutiese bedryf en ander wêrelddele.
Die Calantone, Di Benedetto en Haggblom (1995) vraelys is ook in hierdie studie vir die
insameling van data gebruik. Die 91 farmaseutiese firmas wat in Volume 34 van die 1999 MIMS
Desk gelys is, het die populasie van die studie gevorm. Na gesprekke met hierdie firmas en nadat
alle samesmeltings in ag geneem is, is 'n meer akkurate lys opgestel en het die populasie
uiteindelik uit 65 firmas bestaan. Nege en twintig van die vraelyste wat terugontvang is kon
gebruik word. Hierdie verteenwoordig 'n responskoers van 44.6%. Die organisasies wat
gereageer het was verantwoordelik vir 69.4% van die jaarlikse omset van die totale
farmaseutiese bedryf in 1968 en die responses sou dus as verteenwoordigend van die
farmaseutiese bedryf in Suid-Afrika beskou kon word. Die vraelys het aandag aan die volgende
beginsels van nuweprodukontwikkeling gegee:
• Nuweproduk ontwikkeling en loodstake
• Produkdiffusie
• Koppelvlakke tussen bemarking, navorsing en ontwikkeling
• Organisatoriese kwessies
Die inligting wat ten opsigte van elke farmaseutiese firma ingesamel is, is die volgende:
• Jaarlikse omset
• Aantal produkte vervaardig en bemark
• Aantal werknemers
• Aantal nuwe produkte wat gedurende die afgelope vyf jaar geloods is.
Die bevindings van hierdie studie toon aan dat die bemarkingspersoneel in die Suid-Afrikaanse
farmaseutiese bedryf sterk saamstem ten opsigte van die beginsels van nuwe produk ontwikkeling
wat in die akademiese literatuur geïdentifiseer is. Daar bestaan ook 'n betekenisvolle korrelasie
tussen hierdie studie en die Calantone, Di Benedetto en Haggblom studie ten opsigte van die
persentasie wat saamgestem word oor die verskillende stellings. Die gevolgtrekking kan dus
gemaak word dat die nuwe produk beginsels wat in bemarkingskursusse aangebied word,
relevant is vir en toegepas word deur bemarkingspersoneel in die farmaseutiese bedryf in Suid-
Afrika.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52486
Date03 1900
CreatorsVenter, Gertruida Helena Christina
ContributorsTerblanche, N. S., Stellenbosch University. Faculty of Economic & Management Sciences . Dept. of Business Management.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format115 p.
RightsStellenbosch University

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