The relationship between competitive pricing and direct-to-consumer advertising: How to manage DTC advertising of Rx drugs in an integrated marketing mix strategy

The oligopolistic nature of the U.S. pharmaceutical industry presents its members with a unique opportunity to leverage the interaction between competitive pricing strategy and promotion strategy.

MANAGEMENT SLANT

  • Direct-to-consumer advertising tends to be effective in stimulating drug-category sales in pharmaceutical markets, where leader–follower pricing behavior exists.
  • Under certain conditions, an integrated advertising and pricing

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