Customer Segmentation and Pricing Management Strategies in Pharmaceutical Industry: A Pfizer Case Study
Overview
This paper examines customer segmentation strategies and pricing management practices in the pharmaceutical industry, using Pfizer as a primary case study. It discusses how companies utilize segmentation across geographic, socioeconomic, psychographic, social media, and behavioral categories to optimize pricing and customer engagement while maintaining affordability and ethical considerations.
What this coursework covers
- Introduction to customer segmentation and its importance in enterprise value creation
- Pricing management techniques and their role in profit maximization and loss mitigation
- Customer categorization into resellers, producers, government, and institutions with Pfizer examples
- Organization-specific pricing strategies based on customer segment and economic factors
Preview
5-2-Customer Segmentation
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Customer segmentation
Introduction
Customer segmentation is typically the art of grouping customers according to similarities, and it helps companies to improve value through customer engagement. Customer segmentation is crucial to an enterprise since it enables it to use in terms of creating value and marketing. Additionally, it also enhances understanding between customers and companies; for example, by understanding customers' needs, a company can produce goods and services that meet those needs. Customer segmentation is grouped into five segments, geographic, socioeconomic, psychographic, social media, and behavioral segmentation. According to Csimarket (2020), Pfizer company reported more than 17% customer increment in 2020.
Pricing Management
Technically, pricing management incorporates all necessary information to arrive at the optimal price for a product or service. In this case, comprehensive pricing management leads to lose mitigation and profit maximation.
- Customer Categories
Business customers are categorized into four parts, resellers, producers, government, and institutions. Pfizer is a multinational organization with comprehensive product-price strategies. Its core objective is to provide affordable products to its customers, which help lower the cost of medicine. Product pricing management in the Pfizer organization is determined based on several factors. Firstly, the impact of the disease in respect to patients; for example, the Company has been producing the Covid-19 vaccine at a cost to ensure it is affordable to every patient Csimarket (2020). It is the art of considering the impact of infection or disease on the patients.