Botox: Almost Trouble-Free New Faces

botulinum toxin A Almost Trouble-Free New Faces Synopsis The botulinum toxin A case illustrates the accidental winner of a harvest-feast develop for an entirely different purpose. Originally, botulinum toxin A was used in the handling of crossed-eyes, further ophthalmologists quickly learned that it would overly erase wrinkles and frown lines virtually eyes. It wasnt long before repairs crossways the joined States were using botulinum toxin A for treating wrinkles sluice though Allergan could not kindle the carrefour for this use.The case discusses the advantages (fewer frown lines) and disadvantages and side effects (drooping eyelids and the need to recite treatments) of botulinum toxin A explains what the crossway is lists probable target markets selling of the harvest-festival at botulinum toxin A parties use of botulinum toxin A treatments to attract guests to resorts Allergans merchandise of botulinum toxin A once it was approved for enhancive purposes and th e use of botulinum toxin A to support the raw(a) strategy of Allergan to plump a major(ip) player in the pharmaceuticals industry.It closes with the mirror image that the formula for Botox is one of the most closely guarded point of intersection secrets in the worldalong with the formula for Coca-Cola. The case is curiously serviceable for discussing added rank and the creation of customer satisfaction.It raises questions approximately the difference between needs, regards, and demands what constitutes range is useful for illustrating the difference between a market oriented family (Allergan after Botox) rather than a non- market oriented community (Allergan before Botox) the potential benefits of selling and raises questions about societal trade (should Botox be promoted for augmentative purposes? Should it be sold through parties? ) The case can alike be used to illustrate relationships in the marketing paradigmbetween Allergan and doctors, Allergan and net consu mers and doctors, and final consumers.Allergans marketing efforts atomic number 18 two-pronged in order to masteryfully promote to both markets. It is important for students to realize the pivotal role of the doctor in this purchase process in which consumers do not demoralise the product directly. Teaching Objectives 1. To illustrate the effect of publicity on product success. 2. To raise questions about the differences between needs, wants, and demands. 3. To challenge students to define added prise and how it relates to consumer satisfaction. 4. To rise the importance of target market selection (not just for women ). . To illustrate the marketing of a pharmaceutical product and the importance of the doctor in the marketing process. 6. To illustrate consumer-oriented marketing. 7. To raise questions about the social feign of a marketing success such as Botox. 8. To illustrate the role that marketing plays in the development of fellowship strategy. Answers to Discussion Ques tions 1. What are the needs, wants, and demands of consumers for Botox products in its dif- ferent treatment markets? What measure does Botox deliver in each market? How does order affect the outlay for Botox?The use of Botox for optic treatment illustrates a classic need. The consumer has a defect that needs treatment. When used for crossed-eyes, the product not only has strong physical properties, but social properties as well. Patients can see better, but they may also feel often better about themselves as their appearance make betters. This can have a strong impact on their ego and social needs. Of course, this also illustrates wants. mess with crossed eyes can still read and function. The want here is not that they will expire from lack of the drug, but that they want to look better and feel better about themselves.The value of this is undeniably high. What plausibly constitutes the major portion of the value are the social and ego wants. whizz can live without it, but does one want to? Because the value is high, the price can be high. But in this market, policy reimbursements may lick to lower the price that consumers are involuntary to pay. After all, they dont have to have the product. Although there is need, want is also high. Botox for cosmetic purposes is quite different. This situation illustrates want. We can all live with wrinkles, but we want to be rid of them. Want drives the purchase process.Given Americans arrested development with appearance, the value of improving appearance would be very high. Again this value would primarily be ego (I look better) and social (others think Im younger). And one would pay for it. As the case indicates the comprise of Botox is quite high and unlikely to be covered by insurance companies for cosmetic purposes. The Botox example illustrates want and need are quite different and they affect value. Unfortunately numerous U. S. consumers place a high value on ego and social wants than physical needs which accounts for the run-away success of Botox. . When Allergan sold Botox as a specialty drug for ocular problems, what marketing management orientation was it employing? When it sells Botox as a cosmetic treat- ment, is it employing the same or a different orientation? One could indicate that Botox as a specialty drug for ocular problems illustrates the product concept. The reduce of the company was on eye and fell treatments. Thus, it developed products indoors those categories and sold them on a product need basis to doctors. The success of Botox cosmetic has forced the company to become much marketing oriented.The company is now counsel on target markets and developed promotional efforts aimed at final consumers as well as promotion to doctors. The company has found a new use for an existing product that lies out of doors their tradition product focus. 3. When doctors treat patients with Botox in their office, is that an example of a selling concept or marketing concept? When they hold parties for patients in private homes? The answer to these questions depends on what the Botox is used for and the motivations of the doctors.When doctors are prescribing Botox for ocular problems, this would take care to be the marketing concept because they are focusing on the needs of the consumer. The same could be said for Botox cosmetic. Parties, however, seem to be different. Here the doctors motivation seems to be on selling a greater quantity of the product. That resembles the selling concept. This is not a focus on the needs of individual consumers as treating individual consumers in the office would be. The goal seems to be to increase revenues by cutting cost and serving multiple customers at once. . Apply the concepts of customer lifetime value and customer paleness to Botox. How do doctors and Allergan improve the way they manage customer relationships? Because customers need an on-going series of treatments, Botox has the luck to provide lif etime value over and over. The value added will depend on how well Botox continues to work and aging consumers desire to appear young. The efficacy of Botox over time is a problem for Allergan. At this point, no one knows how Botox treatments will work over a period of years. Will their put upingness decrease?Are there side effects, unknown at this time, to go along use of Botox cosmetic? Eventually, consumers may be more willing to live with their wrinkles and/or tire of paying for Botox. One advantage that Allergan has is that many consumers may only recognize the Botox name with the result that qualifying of efficacy will not affect sales of other Allergan products. Consumers may be quite willing to buy other Allergan products even if they become disenchanted with Botox. The issue of efficacy affects equity. If the brand does not continue to work, it loses equity over time. Equity represents the brands share of the consumer.If Allergan built a strong corporate brand, it could have more equity with the consumer who buys a kind of Allergan products. On the other hand, having individual brands for various products avoids negative brand carryover. 5. How does Allergan attribute with its customers (doctors)? How does it connect with final consumers? How does it connect with the world around it? What could it do to improve these connections? Doctors Allergan has beefed up its sales force to increase promotion to doctors and developed clinics in which doctors are taught the appropriate use of Botox.Final Consumers It has increased advertising to final consumers. Allergan has developed Web sites that target both doctors and consumers. This is especially the case for Botox. When one goes to the Botox Web site, one finds information for doctors (more technical information on the product and how to prescribe it) and information for final consumers including how to find a physicianespecially important because final consumers cannot buy the product directly. The s ite for consumers shows results, give dish aerial tips, and is fairly interactive as consumers have the opportunity to participate in surveys and polls and view the results.The information is practically less technical and much more oriented to appearance. Global The Allergan Web site (www. allergan. com) first pops up asking the viewer to pick a country. Choices are France, the United States, Germany, Japan, the United Kingdom and Canada. Although the Internet is a major means of promotion for Allergan and Botox stimulating demand from both consumers and doctors, Allergan seems to be making a major push primarily in the more economically advanced countries around the globe. This is logical for a company that has only recently begun to grow.It is far from saturating spherical markets and would do well to deal initially with more affluent markets as many of its products are expensive. To improve its connections, it could develop Web sites for more countries and cross-sell more pro ducts. A logical product extension force be skin care products. At present, it is suggesting the use of various types of skin care products, but it would seem that a line of Botox skin products would sell very well. This could increase the equity of the brand and strengthen the relationship with the consumer. Teaching SuggestionsIn charge this case, ask students to read it and to think about the societal issue. Should a company market a product such as Botox for what several(prenominal) consider a seemingly frivolous use? This should stimulate students to incur thinking about the value of the product and the impact extension marketing of it has on consumers. In class, begin the discussion by asking students what they knew about Botox before they read the case. This should illustrate the value of publicity and also the potential for misunderstanding the product and naturally leads to questions about the value of the productwhat it consists of and how that affects satisfaction.You might follow the order of the questions at the end of the case. When you get to the last question, go to the Web sites (www. allergan. com and www. Botoxcosmetic. com). Work through the Web site and focus on the differences in the pitches to final consumers and doctors. This will provide plenty of opportunity to discuss the stimulation of wants, relationship with customers, etc. At the end of the discussion, you might ask students how they feel about the extension promotion of Botox. Should it be heavy promoted for cosmetic purposes?Is doing so good for society? The class might even be divided in those who favor heavily promoting Botox and those who dont to debate the issue. Its important to emphasize the needs and wants of consumers as part of a social system. There is always an opportunity cost to buying Botox. If consumers are spending so much on it, what are they not buying? Should this product be promoted to consumers with incomes of $50,000 as opposed to $150,000. What is th e spillover impact on consumers with lower incomes? Would that be detrimental to such consumers? Society?