Given efforts on many fronts to hold down costs of medical care and health insurance, ethical questions
Question:
Given efforts on many fronts to hold down costs of medical care and health insurance, ethical questions have been raised about the positioning of new medications that sometimes perform no better than old treatments but at sharply higher prices. One example is the introduction of a drug called TPA (for tissues plasminogen activator) that helps break up blood clots in heart attack victims. The Pharmaceutical firm that introduced TPA positioned the drug as the newest treatment and priced it at $2500 per treatment compared to $220 for streptokivase, the traditional treatment. Later research showed no significance difference in the effectiveness of the two drugs. Managers in Pharmaceutical firms commonly face similar dilemmas, once the results of the clinical trials are in.
Required Answer:
Comment on above stated dilemma and being a marketing manager suggest positioning (marketing) strategy for new products similar to existing range of products. Please explain at least with one practical example.
Statistics for Management and Economics Abbreviated
ISBN: 978-1285869643
10th Edition
Authors: Gerald Keller