Due to the world’s demographic development towards an increasing aging population, various richer economies experience major changes influencing the specific industries. This report will illustrate the implications of these changes, with particular reference to the population over the age of 65, on the pharmaceutical and the tourism industry from a marketing point of view. Examples will be drawn from the US, the UK, Germany and Japan as they are highly affected by the changing demographics.
The main purpose of the report is among others to outline significant impacts on the micro and macro environment, relating to the mentioned industries. Furthermore, the implications on the particular marketing strategies will be evaluated in order to solve potential problems with their implementation. Finally, recommendations will be given on how to overcome these problems and difficulties.
Table of Contents
1. Introduction
2. The Pharmaceutical Industry
3. The Tourism Industry
4. Conclusion
Research Objectives and Themes
This report aims to analyze the strategic implications of global demographic shifts, specifically the aging population, on the pharmaceutical and tourism industries. It investigates how changing age structures in economies like the US, the UK, Germany, and Japan necessitate adaptations in marketing strategies to address new consumer needs and environmental challenges.
- Impact of aging populations on market micro and macro environments.
- Strategic marketing challenges for the pharmaceutical industry regarding prescription and OTC drugs.
- Diversification of product offerings and travel incentives in the tourism sector.
- Evaluation of governmental influence and economic power of the 65+ demographic.
- Recommendations for overcoming implementation barriers in current marketing strategies.
Excerpt from the Book
The Pharmaceutical Industry
The pharmaceutical industry is highly dynamic and profitable but also “consists of thousands of companies” and the leading ‘Big Pharma’, “a dozen or so multinational firms”, which “account for roughly half of the world’s $55o billion retail drug market.” (El Feki, 2005, p. 3) According to ‘The Economist’ (The World in 2007, p. 113) the sales of pharmaceuticals will increase by 10.4 % in 2007 which represents double the world GDP growth rate. The phenomenon is due to the ageing populations in richer countries, which “are getting older, and many people suffer form chronic conditions.” (El Feki, 2005, p.3) However, it can be assumed that the ongoing developments will encourage governments to put pressure on the pharmaceutical companies to reduce drug prices.
When taking the US as an example, it can be analysed that almost 10 million people suffer from osteoporosis and another 32.9 million from low bone mass which could be a beginning stage of osteoporosis. These facts offer massive opportunities to the pharmaceutical industry as the treatment is extremely costly. In fact, global treatment requirements are expected to double from US $ 5.5 billion in 2001 to over US $ 10 billion in 2008 due to the aging population and the rising awareness of the illness. (Wood, 2006) Considering the micro environment, it is obvious that the demand is increasing constantly through the ageing population. On the other hand, competition is most likely to increase as well, especially in the prescription drug business, as many big drug companies such as Boots International and Bristol-Myers Squibb decided to exit the OTC healthcare market in order to concentrate more on the more profitable prescription drug market. (Euromonitor – OTC Healthcare – USA, 2006)
Summary of Chapters
1. Introduction: Outlines the global demographic transition towards an aging society and its significance for the macro and micro environments of various industries.
2. The Pharmaceutical Industry: Analyzes the increasing demand for medical care and drugs due to chronic conditions in elderly populations, while discussing marketing, pricing, and regulatory challenges.
3. The Tourism Industry: Examines how tour operators must diversify products to meet the specific needs, leisure time, and economic power of the 65+ segment.
4. Conclusion: Summarizes that successful future business performance relies on understanding the needs of the aging demographic and tailoring marketing strategies accordingly.
Keywords
Aging population, Pharmaceutical industry, Tourism industry, Marketing strategies, Demographic shift, Macro environment, Micro environment, Consumer behavior, Healthcare, Market segmentation, Economic power, Prescription drugs, OTC healthcare, Retirement, Disposable income.
Frequently Asked Questions
What is the core focus of this report?
The report focuses on the strategic implications of the global aging population on the pharmaceutical and tourism industries, specifically within major developed economies.
Which key sectors are analyzed?
The study primarily examines the pharmaceutical industry, focusing on drug demand and marketing regulations, and the tourism industry, focusing on travel habits of seniors.
What is the main objective of the study?
The objective is to outline how these industries are impacted by demographic changes and to evaluate how marketing strategies must be adapted to solve implementation problems.
Which scientific approach is utilized?
The report employs environmental analysis, incorporating macro-environmental PEST analysis and micro-environmental considerations to understand market dynamics.
What topics are discussed in the main body?
The main body covers demographic trends in the US, UK, Germany, and Japan, and analyzes how these trends influence product development, advertising regulations, and consumer targeting.
Which keywords define this work?
Key terms include aging population, pharmaceutical industry, tourism, marketing strategy, consumer segmentation, and economic development.
How does the aging population affect the pharmaceutical market?
The aging population increases the prevalence of chronic conditions, leading to higher demand for medication, but also pressures companies regarding drug pricing and marketing transparency.
How is the tourism industry adapting to older travelers?
The industry is diversifying its product offerings, focusing on cultural attractions over beach holidays and creating targeted offers for single seniors to encourage travel during off-peak seasons.
- Arbeit zitieren
- Miriam Mennen (Autor:in), 2007, Implications of the ageing population on the pharmaceutical and the tourism industry from a marketing point of view , München, GRIN Verlag, https://www.hausarbeiten.de/document/145656
