The paper "Marketing Audit of Wyeth Company" is a great example of a marketing case study. Wyeth is a global pharmaceutical company which is involved in research and manufacture of pharmaceutical products. It develops and markets vaccines, biotechnological and pharmaceutical products. The company produces both human and animal products. The company faces several challenges both environmental and competition. To be able to grow and increase its market share and profitability, the company should employ a relationship marketing strategy, multi-segment strategy and competitive marketing strategy. Introduction Wyeth is a global pharmaceutical company, which is involved in research and manufacture of pharmaceutical products (Wyeth Company, 2010).
It develops and markets vaccines, biotechnological and pharmaceutical products. The company produces both human and animal products. The company products are found in more than 140 countries and its manufacturing plants are located in five continents. Wyeth was initially called American Home Products (AHP) before changing to Wyeth in 2002. None of Wyeth’ s products bears the company’ s name (Wyeth Company, 2010). The company has enjoyed for long financial success resulting from competent management, product diversification and closely guarded expenditures. The main expenditure of the company is the advertisement.
Some legal problems arising from side effects of the company’ s products have cost the company greatly. This is exemplified by lawsuits, which cost the company over $3.75 billion in a settlement. This was because of some weight-reducing drugs from this company causing heart valve damages. The company continues to invest much in research and development in infectious and antibiotic resistance. PEST analysis This is a scan of the external macro environment of the firm. This scan analyses political, economic, social and technological factors affecting the firm.
PEST is the acronym of these macro-environmental factors. Political factors These factors define formal and informal rules, which include legal issues, and government regulations under which the firm operates (Allred, et al, 2007). Some of the political factors include tax policy, environmental regulations, employment laws, political stability and trade restriction. Even though the country of origin of Wyeth Company, USA, has comprehensive tax policy, employment laws, environmental regulations, limited trade restrictions and politically stable, the fact that the company operates in over 140 countries is likely to present the company with several political challenges. Economic factors The purchasing power of customers and the cost of capital of the company is usually affected by economic factors (English, 2006; Petley, 2003).
In macroeconomy, economical factors include economic growth, interest rates, exchange rates and inflation. The recent economic downturn hit many countries and thus the purchasing power of Wyeth’ s customers dropped drastically. The interest rates also rose and this affected the company’ s investment in research and development of new products. The varying exchange rates and inflation rates in the different nations present several challenges to the performance of the company products in the market.
In some markets due to high exchange rates and inflation rates, the prices of Wyeth’ s products are usually higher than those of competing firms. Social factors Social factors consist of cultural aspects and demographic aspects (Allred, et al, 2007). These factors influence the customer needs and the size of the markets. They include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Many people are becoming health conscious and this present Wyeth Company an opportunity to increase its market share (Wyeth Company, 2010).
The increasing world population implies that there is a growth of the market for the products of the company given that it supplies health-related products. However, the consciousness of the population on safety is presenting challenges to the company since any unsafe product produced by the company can result in lawsuits as witnessed in some of its drugs for reducing weight.
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