ABSTRACT
Price is the most important “p” component in pharmaceutical marketing. The price component of a pharmaceutical company is the only profit centre. Other cost centres include product, place, and promotion. The chapter begins with a discussion of pharmaceutical prices. In setting pharmaceutical prices, do pharmaceutical companies have a special interest? The importance of setting pharmaceutical prices has been discussed. The pharmaceutical pricing objectives have been elaborated from a variety of perspectives. There are many factors that influence the price of a pharmaceutical product, as explained in the section on determinants. A discussion of pharmaceutical pricing is also included in this chapter. In order to choose a method for fixing pharmaceutical prices, pharmaceutical marketers must consider certain factors and these factors have been extensively discussed in this chapter. Lastly, the chapter discusses global pricing and generic drug price wars.
