Market Research Trends:

The fast edition of this talk:

.... add the word online

General Remark 1:

Perspective of today‘s talk

General remark 2:

The market research gang

Traditionally, there is an agency and there is a

(pharmaceutical) client

You know life is always a bit more

complex....

Will take the perspective from the “middle”, not the agency

perspective, simply because I don’t have experience from the

agency point of view, not the client as I have many, many

internal clients.

General Remark 3:

The truth about forecasting trends

Agenda of my talk

• Part 1: The future of market research departments

– Integrated within Marketing vs. Independent Function

– Inside vs. outside world

– Conclusions

• Part 2: Trends from the real life

– Targeting targeted therapies (Disease Expert)

– Targeting the saturated target (Motivator)

• Summary

Part 1

• Organizational trends

Recent themes & challenges in the

pharmaceutical industry: Examples

• Few blockbusters

• Thin pipelines

• Patent Expiries

• Mergers & Acquisitions

• Globalization

• Changes in health care systems

• Regulatory scrutiny

• Communication more complex

What implications does this have to

market research agencies / departments?

• Increasing pressure on both agencies and market

research departments to adopt and change their role(s)

and function(s)

unlikely scenario

Face the lion

• Market researcher in pharmaceutical industry

1) Internal View:

• Integrated within Strategic Marketing vs. Independent Function

– Positioning of the market researcher?

2) External View:

• Interaction partner of the market research agency?

– Is the market researcher within the company still necessary?

Internal View:

(Global) Organizational Structure

• Integrated part of (strategic) marketing

– Separated by business units

• Independent department

– Function on its own

Small squares: MR dep‘s; Large squares: Business areas

Internal View:

Pro‘s & Con‘s

• Communication

– internal

– external

Diamonds: agencies

External View: Interaction with market research agencies

• Are market research departments still

necessary?

?

External View: one-stop-shops

• e.g. Branding

External View: complex (outsourced) service

• No internal market research

departments

• e.g. consultancy with market

research as service

What does this mean?

• At a certain point it will be pharmaceutical management to

decide which know-how can be outsourced and which

kind of know-how should be maintained within the

organization.

What does it mean to Market Research

Departments? Independence means freedom...

1) Center of Competence:

• Knowledge, Skills, Methods

2) Center of Excellence:

• High standard of processing,

methods, outputs

3) Consultancy Center:

• High quality expertise –

market research techniques &

business skills

... and new responsibilities

• Continuous learning

– Expertise in the field of business –> indication – e.g. oncology

– Increase of specialization, decrease of generalization

– Latest market research technologies

– Excellent communication skills

• Value for money

– Efficient to the overall organization

– Establishment of Generalized Processes

– Project management

– Global contracts: Business units – Sites – Entire organization

– Preferred Vendors Programs

1) Mediating role

• Successful management of the interaction of agencies with the client

2) Communicator

• Translating objectives into projects

3) Translator

• Outside - Inside

Balance between outside & inside

Part 2

• Trends – two examples

Two Examples

• Targeting targeted therapies

– (Disease Expert)

• Targeting the saturated target

– (Motivator)

Example 1:

Targeting targeted therapies

• Inhibitors of DNA replication -> cell death

„History“ - e.g. DNA base analogs

„give a face to a naked

molecule“

• Classical Positioning

„This morning“: Targeted Therapies

• ... a french cell

BRAND A BRAND B

INERT POSITIONING

„Now“: The target is a diva

• Female

• Never smoker

• Works in subsegment

INERT POSITIONING DOESN‘T WORK

Personalized

Medicine

„Later today & tomorrow“:

How can market research help?

INERT

POSITIONING

DOESN‘T

WORK

• Is it worth the effort?

Personalized MedicineThreats & Opportunities for market research

• Subdividing of the

pharmaceutical market

• Development Times

• Integration of molecular

diagnostics

• Cost – Revenue Balance?

• Segmentation

• Positioning

• Creating Value

• Pricing

• Communication

Example two:

Targeting the saturated target

Challenge: The oversaturated physician / patient

Problem: The pharmaceutical market is a speciality market

with a limited number of potential customers.

... short self-

completion

survey

Market research & and its objects of research:

the physician and the patient

• Many companies send out simultaneously project to research

attitudes, new product concepts, profiles, brand names, etc.

• Market researchers from different agencies & companies almost start

to queue in front of the physician’s offices to address their specific

questions.

• The physicians are overfed and react angry about the market

research flurry.

Market research & and its objects of research:

the physician and the patient

• Overt refusal to get involved

• Also fear to let somebody participate what is considered as “private”

• Less and less physicians are willing to attend

• Bias in surveys / Is the truth always told

• Bad market research / bad studies

• Negative market research image

Market researchers have to think about ways

how to overcome this problem!

• Market research could position itself to provide a forum for “participation &

creation” in drug development.

• So development would be from the “ear” to the “mouth & brain”.

• By this buy-in of the physician and patient to participate into market research

to higher degrees and express their true wills and/or needs.

• Cooperation between companies to avoid duplications.

• But over all: Sensitive issue and it involves cooperation between agencies

and pharmaceutical clients.

Summary

Part 1 - Positioning trends:2 scenarios for market research departments

“Best Case”

• Center of competence; continued existence as separate departments

• (strong) internal voice

“Worst Case”

• Desintegration and separation of market research as an independent body into different existing and/or new functions

• Consequence: Will ultimately loose its (internal) voice

Both cases: market research per se will continue to exist.

Part 2: Importance of market research

• Many interesting challenges & future areas

– Targeting targeted therapies

– Targeting new (internal) clients (Communicator & Translator)

– Targeting the saturated target (Motivator)

– .....

In any case: market research will stay an exiting field.

Thank you for your attention.