pharma marketing 21st

8/7/2019 Pharma Marketing 21st

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Pharmaceutical Marketing

in the 21st Century

Perri Cebedo & Associates

Santa Clara, California [email protected]


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Pharmaceutical Marketing

in the 21stCentury

The Growth of DTC

The Shift in Marketing Mix

More Reps, Less Doctors Calls

Opportunities in the Internet

The Growth of Chain Stores

Changing Aspects ofTraining


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The Growth of DTC

DTC: Direct to Consumer Advertising

Phenomenal growth in the last 5 years

Journals: 200m vs. $3.7B on DTC! Morepatients askPhysicians what they want

So, Moresamples


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Effects o

fDTC

Morepatients telling their Doctor what

medicines they need

Products with DTC: highest sales increases Increase ofsamples

More informed patients

Betterpatient compliance Moresatisfied patients


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EMarketing

Training via the Internet

CME in the Internet

Internet Portals for the MD Using the Internet to Support

Marketing Effectiveness

Patient Groups in the Internet


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Pharma Consolidation Slowdown in mergers, but they will continue

Previous M&As driven by fear and pain

Now by conviction that bigger is better

Makes financial sense, redundant costs

Strategic sense


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Do Pharma M&As make

Strategic sense?

Combined field forces could call on more MDs

Savings on support Staff

Modest savings, but with new RD & Marketing muscle More products in the pipeline less risky

Bottom 33% of top 50 Companies: RD=21% ofSales

Middle 33% ofTop 50 Companies: RD=18% ofSales

Top 33% ofTop 50 Companies: RD= 15% ofSales

Conclusion? Additional 6% ofProfits compared to bottom 33%!


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Growth in Promotional SpendLast 5 years

Total Promo Expenditure= $9.2 to $19.1B

Promotion Office Based MDs= $2.4 to $4.8 B

Samples @ retail value= $4.9B to $10.5B DTC= $791m to $3.7 B

Most significant growth product: Lipitor 2001


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Use of Online Detailing E Detailing: another component of the marketing

mix

MDs are invited to participate

With a promise of a coupon for a book

71% ofe Details doneevenings orearly mornings

or weekends

E Detailing lasts 8-10 minutes

Increased use of attention mechanics

MD selects the time. So attention


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The Changing World of

Medical Education PhRMA Voluntary Code

Growth ofOnline CME

Moreelectronic Media will support live Meetings, eg

CDrom orOnlineeducational support Small low budget events can have bigger impact if

supported with CDrom, withslides, speaker bios,transcripts, abstracts and interviews

Casestudies can come alive withelectronic media

More CME, moreprofessional Reps!


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Increasing Field Forces

Increasing Sales and Marketing Staff

Increased Pay and Reward!

Only slowdown in the use of Contract Sales Slower turnoverexcept in Specialty Reps

Pharma salaries now ahead by 20% compared

with other industries


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Growth in Pharma Salaries Primary Care Rep $45,800--$47,000

TopPC Rep $81,000--$82,300

Oncology Reps plus 30%

DMS plus 13% more than their top reps

Highest salary increase: Senior DMs=11%

IncentivePay is 25-30% of basepay


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Changes inIncentive Schemes

Incentivepay =25-30% ofsalary

Performance vs goals; Quantitative: 83%

Qualitative: 17% 82% Individual Performance

TopTen PCRep in 2001=59% of basesalary

TopTen PCRep in 2002=76% of basesalary


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Drug Discount Programs Senior Poor struggle to pay for

medicines

No drug insurance coverage

GSK: Orange Card


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Successful Use o

fthe

Internet

Marketing to Physicians who regularly go

online

For latest information on diseasemanagement, research

Latest clinical papers

Networking with others


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The Drive for New Types of

MD Contacts

Background (INCOMM Survey of 500 Reps):

26% =less than 1 minute

63% =1 minute 11% = 3-5 minutes

In Conventions, MD contacts =5-10 minutes

Many Hard-to-See MDs or No-See MDs(84%)!

So, expect more participation at MDconventions!!!


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Dinner Meetings

Pure CME Activity

Group Selling Focus Group Discussions

MAPs or Marketing Advisory Panels

Social Activity to Celebrate Something

Peer Selling

As MDs get harder to see...


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Peer Selling over Meals

Evolvement over Focus Groups in the 80s

MAPs: Marketing Advisory Panels

PIG

s: PeerI

nf

luenceG

roups Based on the more the MD knows, the more

convinced he is, the more likely to share

experiences

The Key: The Facilitator!


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Group Selling at Conventions

The Rationale: Foreach MD contacted at the Booth, 6 walk by

4-6 MDs for 10-15 minute interaction The Key: Training in Groupselling Techniques

Special Training in Questioning Techniques

Eliminate give-aways in the Counter and eliminate the Counter

Benefits: More MD contacts, better interaction, more time!


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Growth of E-SalesTraining Cuts costs of bringing Reps to theOffice

BringsTraining to the Reps

Information transfer can beefficient & consistent

Learning curve is 60% faster

Average content retention of Instructor-ledcourse: 58%

E-Learning adds additional 25% retention


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Other Benefits o

fE

-Training More fun, less fear and apprehension

Moreerrors, the deeper the knowledge asconsequence oferrors areexplained

Allows courses to be broken up in shortersessions Will grow faster withhighspeed DSL and cable

connections

PDA and JIT: Just-in-timeTraining

Savings of 50%-70%

Used best in conjunction with conventional training


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DifferencesinTraining Practices USA Specialized Field Forces: Preceptorships

Use ofMultimediainTraining

Training theTrainerPrograms Cost to traina Rep: $100,000

Amount:TrainingperRep: 5% ofSalary

ProfessionalDevelopment Programs

ContinuingTrainingand Education


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Situation Outside the USA Training=Product Training

No SalesTraining System

Product Launchesprovide information

overload Reps are not given enough opportunity to

practice and role-play

No training Videos on basic skills

Trainers and PMs: are not given training!


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New Techniques in Training Elimination of the Classic RolePlay

Replaced by theHappy Griller

The Use of Video Models

Focused on Selling Skills

Each Rep role-plays 40 times!

Reinforcing his/her own confidence andenthusiasm


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Problems are Opportunities!In disguise

The only thing permanent is change

How quickly & how well we adapt, willdetermine oursuccess.

Time to change the conservatism of ourIndustry.

Time to invest in training!

Our capacity to learn faster is only sustainableadvantage wehave against competition!


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Perri [email protected]

Thank You for Your Attention!

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