In pharma marketing, there are two major segments — prescription products and over-the-counter (OTC) products. Prescription products are scheduled medicines (covered mostly by Schedule H and L of Drugs and Cosmetics Act, 1940). These medicines are prescribed by doctors to their patients. The doctors are briefed about the products by the sales staff of the pharma companies called medical representatives (MRs). These MRs are either biology or life sciences or pharma graduates trained by the companies about the pharmacology of prescription drugs. They call on the doctors (visits) to promote the prescription drugs. The more a product is prescribed, the better is its sale. This model of selling is called ethical promotion. Non-scheduled drugs such as antipyretics like acetyl salicylic acid (Aspirin), paracetamol (Crocin), external use preparations, multi-vitamins are branded, and these brands are promoted by the general media. Brand building is not an easy exercise, but once a brand gets established, it ensures steady and stable revenues. Some products are both prescription and OTC or OTX products, e.g. Liv 52 as a liver tonic is promoted among public, and is also promoted through doctors.

Mankind and Piramals have focused on OTC brands.

OTC route provides direct access to consumers and makes the company aware of the needs and preferences of the market. Such understanding fosters brand loyalty. Lupin promotes Softovac, an Isabgol-based bowel regulator through OTC route.

OTC products are not price controlled, whereas prescription products are price-controlled. OTC products thus offer better margins.

OTC products do require guidelines from the regulatory authorities. There should be clarity about packaging, labelling, marketing and licensing.