n Management Dynamics : Journal of the Southern African Institute for Management Scientists - The application of new-product development principles in the pharmaceutical industry : a replication study of marketing practitioners' perceptions
|Article Title||The application of new-product development principles in the pharmaceutical industry : a replication study of marketing practitioners' perceptions|
|© Publisher:||Southern African Institute for Management Scientists (SAIMS)|
|Journal||Management Dynamics : Journal of the Southern African Institute for Management Scientists|
|Publication Date||Jan 2002|
|Pages||2 - 13|
New products are indispensable to the growth of the modern business enterprise. Increased global and local competition, better-informed consumers, rapidly changing technology, and the short life-span of many products, are typical reasons why it is necessary to develop new products. 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. New product development is highly regulated by governments. The pharmaceutical industry spends more than five times the average of all industries on research and development, and new product development depends largely on the discovery of new clinical entities. The focus of product evaluation has also undergone a major shift towards consumer acceptance. This shift stems firstly from better-informed consumers who take part in decisions regarding their health and medical care, and secondly from the genetic understanding of patients that enable pharmaceutical companies to segment patients on the basis of pharmaco-genomic descriptions. The objectives of this study were to assess whether marketing practitioners in the South African pharmaceutical industry concur with the fundamental principles of new product development, 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, and to establish whether the new product development principles taught in marketing management courses are relevant for the pharmaceutical industry. The findings of this study indicate that marketing staff in the South African pharmaceutical industry strongly agree with those fundamental principles of new product development which have been identified in the academic literature. There was also a great deal of similarity between the findings of this study and the study undertaken by Calantone, Di Benedetto and Haggblom (1995). 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.
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