pharmaceutical marketing course
DESCRIPTION
Course is under development. Any input, suggestions and comments are welcomeTRANSCRIPT
Pharmaceutical Marketing
Syllabus
Core Concepts1. Healthcare environment2. The Pharmaceutical Industry Environment3. The Pharmaceutical Marketing
Environement4. Marketing Strategy5. Marketing Research6. Market Segmentation7. Situational Analysis
Core Concepts8. Positioning Targeting and Profiling9. New Product Development10 Product Life Cycle and Portfolio Management11.Distribution Strategy12. Pricing Strategy13. Communication strategy14. Personal Selling15. Advertising16. Public Relations and Sales Promotion
Healthcare Environment
• Define Health
• Define Illness
• Define Disease
Healthcare Structure
Hospital care
Subacute care
Long Term Care
Ambulatory Care
In Home care
Personnel intertwined with structure
Primary Providers
Secondary Providers
Regulatory
Personnel intertwined with structure
Healthcare Professionals
Patients
Regulatory
Media and General Public
Interelationships
Patient
Pharma Industry EnvironmentNational Laws
Pressure Groups
Self Regulations /Ethics
International directives
Marketeers
Pharma Industry Components
Pharma Industry
APIsOTC
Biotech
GenericsPackaging
Supply Chain
CRO
Research
Understand the role of stakeholders
Patients
Prescribers
Hospitals
Influencers
Financers
Regulators
Pyramid of Influences in RxKOL
Specialists, Pharmacist in charge
General Practitioners
Lets understand us - Patient
• Usual consumers – Needs and Wants (Classical marketing based on Kotler’s book)
• Patients: Needs, Wants and Rights are different. • Buying decisions are more complicated• Compliance – Huge impact from pharmaceutical
marketing perspective– Examples,
• Starting of Disease Management Concept
Patients
• 20% of Rx are never filled• 50% of the patients don’t follow the dosage• 50% of patients never change lifestyle• Reasons for non compliance:– Complex dosage regiment – Perception of disease– Family Input– Age– Poor communication
Assignment
• Identify any disease either you or your family member is suffering and answer:– Disease symptoms– Treatment regimen– Compliance – Reasons for non compliance– Calculate the loss to you if you if you were the brand
manager– Steps you will take to convert this problem into
opportunity
Phase I
•Lowest Cost•Safety tested on healthy
Phase II•Moderate Cost•Safety and efficacy tested on disease individuals
Phase III
•Highest cost•Large clinical trials
Phase IV
•Post Marketing•Market expansion•Heaven for marketing!
Besides Patient, let us understand nature of the industry
Kotler Marketing –Pure vanilla
Analysis of Market
Market Segmens
Strategies for each
segment
Planning
of marketing
Program
s, Activitie
s
Evaluation
and
Control
Pharma Marketing Different
Brand Manager
Market Research
Clinical MedicalHealth Outcomes
Forecasting
What are the other differencesPharmaceutical Consumer
Consumer is decision maker Mostly not true True
Consumer pays directly Not True True
Brand Loyalty Not True True
Government Regulations Very High Low
R&D Complex Less complex
Price sensitivity Low high
Clinical/Medical
• Pros and Cons of current treatment available• Technical ability to understand the drug• Knowledge of standard practice• It helps how patients are viewed and treated
by physicians• Helps brand manager to develop SWOT
analysis
Health Outcomes
• Epidemiology• Economic benefit of various treatment• Pricing and reimbursements• Effect of product on QALY (Quality adjusted
life years)
Market Research
• Quantitative and Qualitative– IMS– Focus Groups– Treatment pattern– Drug of first choice– Issues to highlight in promotional message
• Show and learn how to use IMS data –Real Life scenarios
Forecasting
• Assess the commercial potential• Develop revenue models based on
prescription• Arrive at numerical forecast and not to have
strategic implications
Role of Pharm marketeer
• Comprehnsive review of disease marketplace• Competitive landscape• Pros and Cons of currently available and
pipeline treatment• Assessment of unmet medical need where
new compound can fit it• Ultimately developing a brand positioning
Developing Product Strategy
• Comprehensive marketing strategy to meet key objectives of the brand including– Product Positioning– Market Segmentation• Patient• Physicians
– Develops Pricing Model– Roll out plan –operational and more tactical
approach
Marketing Mix in Pharma
Product
Therapeutic Class
Generic or Branded
Dosage Form
Price
Competition
Margins
Treatment Cost
Promotion
Detail Aid
Clinical Papers
CME Programs
Symposias
Personal Selling
International events
Place
Hospital
Pharmacies
Distributon strategy
Supply chain and Storage
Regulatory requirements
Controlled versus non controlled
Defining a Product, Critical component in Pharma Marketing
• Classical way– Efficacy– Safety– Tolerability– Speed of Action– Quality– Cost– Side Effects
Product Defination
• New Paradigm– Life Style– Quality of Life– DTP Branding– Redefining the patient population– Redefining disease yardsticks
Price
• Brand versus Generic• Duration of patent protection• Competitive landscape• Dosage form• Cost of API
Place
• Hospital or Retail Product - Oncology• Controlled or non controlled -Psychiatric• Cold Chain - Vaccines• Dosage Forms – Suppository• Select market or Global launch
Promotion
• Advertising• Personal Selling• Public Relations• Sales Promotion• Target Audience• ATL/BTL• Gimmicks• Global Branding
Strategic Framework
• Which therapeutic area and geographical area?• Portfolio selection and resource allocation• Target physicians, target indications• Marketing Mix• Implementation
• Discuss the examples of generic and branded company
Marketing Planning Stages
Evaluation of
opportunties
Analysis of market
segment
Positioning and
strategy
Execution of
marketing plan
Control and review
Pharma Market Research
• Prescribers– Prescription Audit– Patient Compliance– Indications, both approved and off label
• Patients– Therapy awarenss– Compliance
Pharma Market ResearchAttributes Quantitative Quality
Question Nature How many What if, “Why
Research Nature Quantity defining Exploratory
Focus Historic and Statistical
Behavioral
Results Measurble Opinionated
Sample Size Large Small
Hoe w to create and analyse IMS Data
• Live demonstration using real life IMS Rx Audit• Calculations of Market Share, Growth,
Volumes, Values, Performance Index
Concept of Market Segmentation, Targeting and Positioning
Reasons for Segmentation:• All Doctors and Patients are not identicle• Their response to same drug could be
different based on perceived side effects, cost, dosage regiment, off label indications (discuss with examples)
Benefits of Segmentation
• Optimal Product/Market Match• Optimal, cost effective promotional strategy• Media allocation
Segmentation in real life• By Indications
– Maintenance– Acute
• By Patient Profile– Ethnic background– Demographic– Severity of illness
• By Physicians type– Specialist versus GPs– Hospital versus Private– Patient’s economic status
• By Dosage Forms– Injectables– Oral– Suppository
Segment criteria
• Differentiable• Measurable• Accessible• Actionable• Defendable
Segmentation AnalysisMarket Potential Therapeutic
class/Indication AB C
Potential Market SizeAvailable Market SizeServed Market Size
Avegrage Rx Value
Value Potential
Volume Potential
Market Growth
Competitors
Complexity/Legal
Product Attribute AnalysisAttribute Your Product Competitor A B C
Efficacy
Safety
Tolerability
Adverse Events
Onset of Action
Other
Desgin attribute analysis and provide importance/score for physicians and patients both. Example Escitalopram versus Venlafaxin (Tolerability versus efficacy)
Targeting
After arriving at segments, company has to target certain segment based on
• SWOT Analysis• Sustainable Competitive Advantage• Evaluation of current and future resources• Product Life Cycle• Sales force capability• In house talent pool
Positioning
• Most important job of marketer as this is the first message that goes outside!
• Based on product attributes, real and perceptual
• Wrong positioning leads to wrong message and cascading effect all the way down to a flop!
• Once you are positioned, it is not easy to shift
Positioning
Questions to ask internally:• What is the licensed indication by FDA/EMEA• Different therapeutic segments to cover• How many physicians• SWOT/Competition/Patent Protection• USP versus other products• Can Clinical Trials support the message• Amount of resources• Can we prove/convince authority/doctors (for eg
undefined MOA is very difficult to sell!
Positioning
Fit with Corporate Objectice
Creat USP
Two Dimensional Positioning
Safety
Efficacy
Examples of Product Positioning
• Dosage• Formulations• Drug Delivery/Technology – Pk and Pd• MOA• Drug Drug Interactions• Safety in Children and Pregnant women• Product Class• Packaging• Reiumbursement• Onset of Action
Indian Generic Positioning
• Unsubstantiated claims by Sales Force• Difficult to supervise• Difficult to control by regulation• Self regulation is limited• Erroneous claims• Too many claims
Pharmaceutical Branding
Strategy Segmentation Targeting Positioning Branding
Is Pharma Branding different than others?
• Discuss attributes of brand and differentiate versus other industries
• Front End branding: Name, Sign, Symbol, colors, location of placement, distribution outlets. Location of advertisement, price, celebrity endorsement, commercials, PR, Packaging, Consistency, Longevity, Design
Branding
• Back end Factors:– Research and Development– Core Philosophy of Management– Investment and re investment– Quality throughout the value chain– Customer engagement– Talent Pool
Does Branding Work in Pharma Industry?
Brands as the totality of perceptions and feeling that consumers have about any item identified a brand name including its identity(e.g. its packaging and logos),
Quality and performance, familiarity, trust, perceptions about the emotions and values that Brand symbolizes and
user imagery
Global and regional brands
How to stand out in crowded place?
Personal Branding plays significant role in Pharma Branding
• Especially in Rx category• Role of KOL– Personality– Ability to speak well and influence– Technology– PR
• Higher management is close to prescribers
Branding in Pharma
• Limitations compared to consumer product– Patents Expiration– FDA /Regulatory requirements– Duality – Doctors versus Patients
• Deductive versus Inductive– Deductive – Asking the target audience to choose
from predefined concepts– Inductive – Asking the target audience what do they
think about the treatment, how they see a brand and then creating concepts
Branding In Pharma
• Rx versus OTC– Rx brand survives short period of time, approx 7 to
10 years.– OTC brand can continue for ever like Coke hence
marketer can invest in brand building– Rx brand lacks organoleptics –appeal to senses
such as touch, taste, smell – Sensory appeals are essential in brand building
– All Rx brand looks more or less same
Question
• How many of you think it is not possible to build an Rx Brand?
How to build an Rx Brand
• Create with patients• Create tools for patient complinace• Direct marketing• Discuss the disease or conditions to be treated
and alternatives patient should know about• Blend of doctor and patient communication• Committing resources to making it a character.
Difference between Branding and Positioning
• Not inter changeable words• Positioning is all about perception –how you want
doctors or patients to think about your product• Its an unemotional exercise• Branding: Its all about relationship with target
doctors and patients. • Difficult to describe but it is a bond between
product and doctors• Corporate branding supplements product branding
Assignment
• Google search Claritin and Tylenol– Include message– Include images
• Describe in your words difference between branding and positioning using two examples
• Evaluate Indian brands and understand if any successful brands that appeals to you
Marketing Cases
• New pain killer belonging to new therapeutic category having patent expiry of three years is being launched
• Product is unique, once daily dosage compared to older drugs
• Product has some side effects but manageable as long as patient follows the treatment
• Suboptimal dose also works for mild to moderate cases
Objective
• Develop communication plan for doctors• Evolve a strategy post patent• Highlight your recommendations with reasons• Make as many assumptions as you think
appropriate• Think out of the box• Give a name to the product
Product Life Cycle and Portfolio Management
• Diffusion of innovation• Competitive strucuture• Internal product portfolio• Research and Development• Patents and IP• Technological advances• Sustained Profitability
Standard Graph
Pharma PLC versus Consumer
• Extensive Pre Launch Phase• Dependent on Patent Expiry• Reimbursement Limitations• Limited bandwidth to play around• Regulatory hurdles
What happens to business when you ride the wave
Introduction Growth Turbulence Maturity Decline
Revenue
Sales GrowthCost
Profit
Physicians ProfileCompetitors
Premarketing
• At least two years prior to launch• Develop advisory board, diverse members• Clear Mechanism of Action• Create a dedicated task force internally• Initiate selective exposure to KOL• Develop Speakers Bureau• Internal planning, Mfg, Packaging, PI, PM• Evolve positioning
Introduction
• Launch Planning –WOW Effect– Regional Launch– Country Launch– Sampling– KOL seminars– PR– Promo material– Charged up sales force – Motivation, Incentives
• Spend Spend Spend Spend
Growth Phase
• Territories are further divided to increase the frequency and targets
• Sales force expansion• Continued support to KOL• Focus increased in heavy prescribers• Expansion of target doctors to increase the
share of prescription• Overall investment is high
Maturity
• First impact is freeze on sales force• Cut down on lavish expenses, foreign trips etc• Cutting down on some target doctors.• More scrutiny on expenses• Stiff targets/growth expectations without must
investment• Most difficult period from sales force point of
view• No excitement !
Decline
• Time to move on to new company!• Tail end products are interesting acquisition targets
for start ups!• Allow slow decline by selective presence in the
market• Product moves from elite sales force to contract sales
force• Strictly no new initiative• Difficult period for sales force to understand –
Confused state!
Product Portfolio and PLC
• In Line Products, its different dosage forms, strengths and packaging
• Pipeline Products (In Phase III and under)• PM and PLC are very critical from strategic
planning• Investors and Analyst focus most on this two
issues• Only way to judge the future cash flows, profits
and sustainability of organization - Examples
Assessment techniques in PharmaPM
Assessment Targets
SWOT•Efficacy•Pricing•Ease of Use•Patent•PLC Stage
Long term Performance
•NPV•ROI•Market Value -Discounting
Stratgic Fit
•Therapeutic Class•Regions•Competencies•Clinical Support•Regulatory capbility
Concept of Net Present Value, NAV
• Demonstrate it using an excel formula
Different Matrices for evaluation of Portfolio opportunity
• Probability of Tech success versus NPV• Opportunity Cost versus Development Cost• BCG Model – Market Growth Rate versus
Relative Market Share (Starts, Question Marks, Dogs and Cash Flows)
• Market Attractivenss – Industry Attractiveness versus Business Strength
Competitive Strategy
• Strategic Issues:– Research inhouse or outsource– Market yourself or outsource– International expansion or stay at home!– Acquisition of product portfolio– Brand versus Generic– How much backward integration one should do?
Discuss Classic Kotler example
Leader Challenger
Follower Specialist
Lets talk India, Lets focus on Generics
Bioequivalence
Bioavailability
Patent Regulatory/Mkt Access
Price Technology
Pricing
Brand•Highest price you can get•Stay there•Patent Protection•No threat, No Limit pricing, ex: Biotechnology
Generic•First mover advantage•Fast In, Fast Out•Based on Brand Price•Cost of APIs•Cost of Regulatory
Forecasting
1940/40
1955/55
2012/80
Forecasting
Education
Awarness
Consumption
Forecasting
• Prevalence• Incidence• Compliance• Access• Availability• Dosage Form – MS• Diagnostic Tools• Advertising and Promotion• Historical sales
Forecasting a pharma product
• Disease Patient• Converting healthy patients to disease patient• Life Style diseases and drugs• OTC component• Off label indications – Neurontin• Innovative dosage forms – Nicotine
Sales Force Management
• Cornerstone of successful marketing• Territorial planning• Developing Call Plan• Identification of sales force size (RTF Model)• Hiring and recruitment• Training• Supervision• Motivation and incentives• Monitoring and Mentoring