The explosion in technologies, such as the Internet and desktop video conferencing, allow pharmaceutical companies to expand educational and promotional messages beyond basic product information. For example, companies may participate in patient advocacy campaigns and programs to increase public awareness of health issues. In an effort to provide exceptional customer service, many pharmaceutical companies are providing a package of value-added services in addition to the sale of drugs. Examples of value-added services include patient education materials and information hotlines. As managed care continues to grow and healthcare providers further ally themselves in integrated healthcare systems, pharmaceutical companies have restructured their sales and marketing divisions to compete for large managed care accounts.
Indirect distribution is the predominant method.
Indirect distribution involves the use of an intermediary, such as a wholesaler, between the manufacturer and the consumer outlet. Wholesalers are the largest conduit for drug distribution. They purchase pharmaceutical products from manufacturers and resell them to community pharmacies and hospitals. Wholesalers provide a national network for distribution of manufacturers' products. Wholesalers face increasing competition from various sources, including chain stores, pharmacy networks and mail-order businesses.