marketing and sales roles in the pharmaceutical industry

8/12/2019 Marketing and Sales Roles in the Pharmaceutical Industry

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M arketing and Sales Rolesin the Pharmaceuti cal I ndustry


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MARKETING


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The Marketing Concept - Key Principles

It is easier to change the products and services of the individualmanufacturer to fit the needs of the market than it is to convince theentire market to use the products and services as the individualmanufacturer prefers them You can have any color car you want as long as its black

Henry Ford

All the resources of the firm should be organized into a total systemaimed at meeting the needs of the consumer

The role of marketing is to influence or direct activities from themanufacturer to the patient: The right products In the right quantity At the right place

For the right price At the right time


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Marketing as an Actualizing Process

Markets can be viewed as gaps that separate parties interested in an exchange Marketing removes the gaps between the parties through various actualization

processes

Source: McInnis; A Conceptual Approach to Marketing

MARKETSEPARATORS

TIME

SPACE

VALUE

OWNERSHIP

QUANTITY

ASSORTMENT

EXCHANGE FLOWS

PRODUCT FLOW:toward the consumer

INFORMATION FLOW:both ways

PAYMENT FLOW:toward the provider

USE RIGHT:toward the consumer

MARKETING ACTIVITIES

Assembly, transportation storage,packaging, grading

Advertising, personal selling, publicity,labeling, sales promotions, marketingresearch, consumer complaints, drugeducation programs

Credit and cash payments

Purchasing and selling, pricing, posttransactional rights

PRODUCERS

CONSUMERS


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ITs Role in the Actualizing Process

IT can assist marketing in closing the gaps that separate parties interested in anexchange

IT can make some of the gaps irrelevant (e.g., space and time)

Source: McInnis; A Conceptual Approach to Marketing

MARKETSEPARATORS

TIME

SPACE

VALUE

OWNERSHIP

QUANTITY

ASSORTMENT

IT

Connectivity across geographically dispersedregions

24 x 7 Availability

Enabling information access

Enhancing personalization

Right use Right amount Right need

Increasing the number of available options


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Unique Aspects of PharmaceuticalMarketing and Sales Influence of non-purchasers on the purchasing habits of the consumer

Veto/authorization power of physicians consumers need anauthorized document to purchase a prescription drug

Importance of the disease to identifying and classifying markets

Professional licensing required to stock and sell pharmaceutical products

Records of every transaction are kept that are specific to: Patient Physician Product


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Definitions

Market Research: Determination and assessment of qualitative and quantitative

dimensions of a market

Market ing Research: Analysis of the effects of various marketing activities of a

company or its competitors


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Market Research

Environmental scanning: Physicians Pharmacists Pharmacies Hospitals

Data gathering and analysis Influence of unique aspects of the pharmaceutical market on market

research: Known list of entities Knowledge-based decisions

Similarities in education and thinking (professionalization) Availability of records for transactional activity

Significant use of outside vendors for market research Syndicated services Custom services


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Questions Answered by Market Research

Strategic Level: What diseases or product areas should be considered for long-term

investment? Short-term? Market size or potential?

Availability and utilization of therapies? Next logical steps in therapy? Potential market segments to be exploited:

Disease conditions (e.g., migraine sufferers) Dosing preferences (inhalants vs. injections vs. patches)

Prevalence of disorder? Shared conditions? Potential development partners? Potential acquisitions?


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Clinical trial Planning: Seasonality Regionality Specialty

Premarketing Planning: What physician specialties are important in a given therapy or diagnosis? What patient characteristics are important? Who are our competitors in this market?

How do our competitors promote their product? Are there unsatisfied portions of the market? How do physicians perceive a proposed product?


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Post-marketing Monitoring: Adverse events Product sales Patient information (medical history)

This can be critical inproduct defensesituations!Example : Pfizersdefense of Viagrawhen suits were filedalleging an increased

risk of stroke.


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Types of Market Research

PeriodicSurveys

Retail PharmacyPurchases

HospitalPurchases

WarehouseWithdrawals

PromotionalMedia

PhysicianPanels

Retail PharmacyPrescriptions

Retail PharmacySales


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PeriodicSurveys

Retail PharmacyPurchases

Measures theinflow of productsfrom themanufacturer to the

pharmacy OTC Prescription drugs Indirect (through

wholesalers) Direct purchases

from manufacturers


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PeriodicSurveys

HospitalPurchases Measures the

inflow of productsfrom themanufacturer to thehospital

OTC Prescription drugs Indirect (through

wholesalers) Direct purchases

from manufacturersGrowth of pharmaceutical purchases byhospitals has greatly exceeded purchases frompharmacies on a proportional basis

In many communities, the hospital has become

more important in routine care


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PeriodicSurveys

WarehouseWithdrawals

Measures the outflow of products from thewarehouse to all

purchasers

OTC Prescription drugs)

Does not reflect direct purchases frommanufacturers

Provides ability to analyzesmall segments of themarketplace such as zipcode or territories

Can be valuable in dealing with questions ofindividual territory performance and potential ordifferent selling techniques


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PeriodicSurveys Retail Pharmacy

Prescriptions

Measures the outflow of prescription drugs fromthe pharmacy to consumers

Most sensitive indicator of

prescription product performance (factual)

Reflects mindset of prescribers and consumerdemand

Best indicator of marketingor promotional efforteffectiveness

Data available at nationaland sub-national levels


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PeriodicSurveys

PhysicianPanels

Specialized researchservices to identify patient

product usage alongspecific variables:

Diagnosis Patient characteristics Location of visit Drugs used Action desired from

drugs used

Tracking of new prescriptions over time andmonitors changes in doctor

prescribing habits


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PeriodicSurveys

Retail PharmacySales

Historically used for non- prescription pharmaceuticals

Data typically collected for

products of interest Collect unit and dollar

information at the packagesize level

Main use is to obtain prescription counts by

product Used for pricing analysis

and cross-tabulationanalysis using datawarehouses


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PeriodicSurveys

PromotionalMedia

Monitoring of detailingvisits to physicians bysales representatives

Monitoring of journaladvertising

Monitoring of direct mail

advertising Physician sampling


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Market Research Organizations

IMS Health Datamonitor Healthcare Consulting Frost.com Reuters Also check out:

Eyeforpharma.com FDA.gov Journal of the American Hospital Association AMA Drug Evaluations


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Market Research Industry Associations

EphMRA European Pharmaceutical ResearchAssociation (www.ephmra.org)

BHBIA British Healthcare Business IntelligenceAssociation (www.bhbia.org.uk)

PhRMA Pharmaceutical Research and ManufacturersAssociation (www.phrma.org)


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SALES


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Sales Roles Detailing

Face-to-face visits to physicians or purchasingmanagers (e.g., hospitals, HMOs) to present new

prescription drugs Influence prescribing habit

Increase current prescription usage Deliver samples Build relationships with doctors Get drug into a formulary; pull through

Sample Management Track delivery of prescription drug samples to

physicians or other purchasers


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Effective Detailing

Influences on Physician Prescribing Habits

Source: IBM Analysis

Side Effects

Drug deliverymethod

Cost of drug

EfficacyPotential drug-

druginteractions

Dosage

Payorformulary

status

Brand

Personalpreference

Patient request


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Detailings Value to the Physician

I like the good, tangibleinformation about a new drug

The samples determine what Iprescribe for the long term Samples are extremely valuable I value the relationships with them.

Overall, I am satisfied with theirservice

I rely on them to keep me aware of

whats happening in the drugindustry

I like their presence to break upmy stressed schedule

Everybody likes perks

Comments From PhysicianInterviews

Learn new drug information

Get drug samples

Connect with peers or physicianthought leaders

Receive the perks

Establish personal contact withthe drug company

Provide stress release

Value of Relationship withPharmaCos to Physicians

Source: IBM Analysis


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Detailing - Physician Concerns

20%Not enough samples

28%Not enough medical expertise

40%Take too much time

44%Too many from the same company

Inconvenient timing

Biased information

What are your top complaints about detailers?

Source: The Forrester Report: Pharmas Detailing Overhaul, February 2001 (IMS Health, Scott -Levin, Forrester Research, Inc); (Ziment/WebSurveyMD.com); IBM Analysis

I view them as the liaison but Idont take them at their word allthe time

I hate negative marketing. Thelack of objectivity is a big turnofffor me

If they keep coming back with thesame information, its a waste ofboth parties time

I appreciate the information, butthe reps can be pushy

The thing I dislike the most iswhen the rep doesnt appreciatethat I am busy and still tries topitch the drug to me

I dont believe that someone witha bachelors degree knows moreabout how a drug works than I do

Physician Comments

78%

47%


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Companies Are Experimentingwith e-Detailing

Source: IMS Health, iPhysicianNet website, Aptilon.com website, IBM Analysis

There have been promises made about the benefits of e-Detailing

Benefits to PhysiciansBenefits to PharmaCos

Cost-effective: an online sales session costsabout $110 on average, compared with about$200 for a field reps office visit

Cost effective: Increased contact time per visitallows for higher information content

Better control of detailing content: as a result,e-Detailing can be used as an efficient way totrain less-skilled sales reps

Capture relevant physician practice data: withthis information, Companies can identifypotential high prescribers that sales reps cantarget later

Counter detailing and off-the-label discussion:with e- Detailing, the companys medicalexperts can speak with physicians aboutcompeting drugs clinical trial flaws and off -the-label prescription, which is normally notallowed in a sales reps visit

Increased sales of under-marketed drugs

Allows physicians to see sales reps,gather information they deem important,and to have the flexibility and control todo it in their own schedule

Offers physicians a range of convenientinteractive channels

Provides timely updated druginformation

Provides simpler sample ordering anddelivery

Provides quality peer-to-peerdiscussions on a topic that interests aphysician.


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Sample Management

The pharmaceutical industry in America distributed$6.7 billion worth of samples to physicians in 1999 *

During a typical month, the average pharmaceuticalsales representative will visit 150 physicians,distribute thousands of packages of drug samples,obtain FDA required signatures on 150 sampledistribution forms and receive scores of new sample

cartons to their home-based office, and expend asmuch as 25% of their time tediously managing a paper-based process

* Source: IMS Health


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Sample Management andRegulatory Requirements

PDMA (Prescription Drug Marketing Act) Designed to minimize the threat to the public health

posed by prescription drug diversion and counterfeiting

Requires that samples distributed by pharmaceuticalrepresentatives be signed for and tracked to create audittrails

Helps to ensure that the correct physician receives thecorrect samples. If a pharmaceutical company is found

to be non-compliant, they could face significant penalties, fines, and possibly even prison terms

Source: FDA


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OTH ER M ARKETI NG& SAL ES TECH NI QUES


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Key Opinion Leader Management

Expert physicians -- often called "opinion leaders" or "thought leaders"-- play critical roles in driving pharmaceutical sales Participate in ongoing R&D Have privileged access to R&D information Company-sponsored featured speaking engagements at prestigious

conferences

Exchange ideas with other physicians regarding new products orindications or adverse events

Helps convince other doctors to prescribe new products and can makethe difference between a successful product launch and a majordisappointment

Program is actively integrated with marketing program: Physician recruitment (specialty, name recognition, etc.) Matching to appropriate R&D efforts Matching to appropriate marketing programs


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Medical Science Liaisons (MSLs)

Scientific professionals Pharmaceutical PhDs Pharmacists Physicians Nurses

Generally have more scientific knowledge than sales representatives Roles:

Support and expand sales representatives marketing of a product Be able to speak to the purchaser on a more scientific (peer) level; not on a

marketing level Will focus on clinical information

Focus on key opinion leaders Typically will only see more knowledgeable sales reps Organize symposia, conferences, focus groups, etc. Training and continuing education programs

May be involved in setting up Phase IV trials (post launch)

marketing and sales roles in the pharmaceutical industry

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