Strategic Marketing Decision Models for the Pharmaceutical Industry

  • Venkatesh Shankar
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 121)


1The healthcare industry is one of the largest industries worldwide. Healthcare expenditures constitute about 8–15% of the gross domestic product (GDP) of most developed countries. For example, in the United States of America (U.S.), healthcare expenditures made up about 15.3% of the GDP in 2003. Over the past 45 years, these expenditures have grown 2.7% faster than the U.S. GDP.2

The pharmaceutical industry forms a critical portion of the healthcare industry. The pharmaceutical industry comprises “companies that research, develop, produce, and sell chemical or biological substances for medical or veterinary use, including prescription, generic and OTC drugs; vitamins and nutritional supplements; drug delivery systems and diagnostic substances; and related products, equipment, and services, including distribution and wholesale” (Hoover’s 2006). In 2006, sales of pharmaceutical products in the U.S. were $274 billion. Today, about 10 cents of every health care dollar spent...


Gross Domestic Product Market Entry Product Portfolio Therapeutic Category Repeat Purchase 
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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Mays Business SchoolTexas A&M University, College StationUSA

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