Market and Sales

Example 2 Increased Profitability and Market for Drugs (Erythropoietin)11 

FIGURE I Profit functions for EPO (A) power-law model and (B) second-order polynomial. (Data taken from Furst.11) 

Here t is time in years. This equation provides a perfect fit for the sales figures for EPO as a function of time in years. Once again, t = 0 here indicates the base year, 1992, for which the sales numbers were first available. For practical or predictive purposes Eq. (2) may be better to use than Eq. (3) since it is a power-law type of equation and has some physical basis, even though Eq. (3) provides more accurate estimates than Eq. (2). Second-order polynomial fits can of course be applied to a wide variety of sales curves for different drugs with considerable accuracy. In other words, if one were to attempt to predict future sales of EPO, one should (a) obviously use caution, (b) extrapolate only for a short period (since one cannot predict market forces), and (c) use the powerlaw model as compared to the second-order polynomial model (Eq. 3). 

Considering the high level of profit that is possible in the manufacture of drugs (if one is successful in bringing it to the market) it is not unexpected that the level of competition will be intense. More often than not, alternative drugs for performing the same corrective action for a medical ailment will be manufactured by two or more companies. Let us get a better idea of this competition by analyzing an example. 

Example 3 Some Data on the Existing Market for Thrombolytic Drugs3 

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The packaging of distilled spirits has become more complex with both the demands for higher efficiencies of the production faciUties within the industry, and the request by marketing and sales departments for higher flexibiUty to provide customers with greater value on products. 

This chapter deals with contracts placed on the supplier by customers, rather than contracts placed by the company on its suppliers. This can be a source of confusion for those unfamiliar with marketing and sales functions. 

The advent of competition has virtually transformed the industry in evei y aspect, including its name. In the not too recent past, the industry was referred to as the electric utility industry. Today, given its significantly wide and numerous participants, it is more appropriate to refer to the industry as the electric power industry. This new power industry has new power generation and sales participants with names such as qualifying facilities, exempt wholesale generators, merchant facilities, small power production facilities, power marketers, and sales aggregators. 

Significant capital expenditure usually represents a substantial commitment of the resources of a business, both financially and in terms of man-hours. It is therefore incumbent upon management to ensure that proposals for such outlays receive proper and full consideration of all the relevant implications before implementation. Once policies as to levels of authorization and commitment are laid down, there should follow the formal appraisal of the financial effects of the proposal. These can be formulated only after detailed discussion with the appropriate departments as to all the physical, technical and environmental factors involved in making the final decision. There will also be brought into consideration, where pertinent, the marketing and sales effects. 

As to the future of organics, I remain optimistic. The barley plain is in retreat, and one hopes that some farmers will revert to a more sustainable mode of agriculture. It is here that Jon Newton s book will prove invaluable, setting technical standards and advising on finance, marketing and sales. 

A weekly publication of McGraw-Hill. This excellent pubheation concentrates on the news and business aspects of the chemical industry. It periodically has excellent marketing and sales studies for various products. It also publishes annually a plant-site-selection issue and a Buyers Guide. The Buyers Guide lists the major producers and the source of supply for over 6,000 chemical products, and has a list of chemical trade names. It publishes, quarterly, the current financial condition of 300 companies involved in chemical processing. 

Short-chained chlorinated paraffins (SCCP) are those with a chain length of C10-C13. EU Regulation 1907/2006 [12] restricts the marketing and sale of SCCP in preparations to a maximum of 1%. SCCP were mainly in the past used as fatliquors, but other alternatives are available in the market. The use of SCCP is also restricted by many eco-labels and RSL. 

Spot demand price elasticity is not a forecasted parameter but needs to be derived analytically. As specified in the value chain characteristics in subchapter 3.2 the company does not have a monopoly in the market and sales decision of the company do not influence the market price. Therefore, elasticity is not determined from a macro-economic perspective considering market prices but from a micro-economic perspective analyzing the specific spot demand forecasts the company receives. Table 24 provides the detailed steps of the algorithm for determining elasticity and the price-... 

SMOs operate with two business models some acquire physician prachces and operate them as clinical research centers exclusively, while others affiliate with existing practices and manage the administrative elements of the clinical trials. In both models, the corporate entity is responsible for marketing and sales. 

In the design of a hne-chemical plant the size of the equipment, especially the volume of the reaction vessels, is critical. In order to ensure that the potential customer s needs are met by the capabilities of the plant, this has to be dehned in close coordination with the marketing and sales function. Depending primarily on the differing quantities of the hne chemicals to be produced in the same multipurpose unit, the concentration of substances in the reaction mixture, and the reaction time, there is, however, an upper limit for the size of the reaction vessel and the ancillary equipment. Some factors run countercurrent to the economy of scale and point to small-size equipment ... 

Both sales and business development report to the general manager, respectively to the division head in larger companies, either through the inter-mediary of a VP (vice president) of marketing and sales, or—preferably— directly. 

It is the responsibility of the particular departmental managers and supervisors concerned (marketing and sales) to understand and implement management responsibilities described in the procedure. The ISO systems coordinator (management representative) is responsible for SOP compliance. 

Depending on the business model(s) chosen, companies need to define their specific innovation headroom . This includes answering questions such as how important are innovations in the segment What do strategic customers need Should companies go for innovation in technology, service offerings, or in the value chain What does that imply for R D capacities and skills How can R D best collaborate with marketing and sales, (potential) customers, and external research institutes What level of external versus internal R D is required ... 

They need to strive for operational excellence in particular in production and marketing and sales to improve their market position. 

Helping chemical producers and customers to focus on their core competences by offering more efficient and effective distribution, marketing and sales, or purchasing services. 

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