Pharmaceutical Marketing

Pharmaceutical MarketingSyllabusCore Concepts1. Healthcare environmentThe 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 EnvironmentDefine Health

Define Illness

Define Disease

Health as defined by WHO is complete state of physical, mental and social well beingIllness define as persons own perception of how he or she feelsDisease: Judgement by the doctor about health and illness5Healthcare StructurePersonnel intertwined with structurePersonnel intertwined with structureInterelationshipsPharma Industry EnvironmentEMEAFDAGovt bodies

10Pharma Industry ComponentsUnderstand the role of stakeholdersThis slide to be elaborated in class understanding who they are, their needs and issues. This is very important from marketing point of view12Pyramid of Influences in RxLets understand us - PatientUsual consumers Needs and Wants (Classical marketing based on Kotlers book)Patients: Needs, Wants and Rights are different. Buying decisions are more complicatedCompliance Huge impact from pharmaceutical marketing perspectiveExamples, Starting of Disease Management ConceptPatients20% of Rx are never filled50% of the patients dont follow the dosage50% of patients never change lifestyleReasons for non compliance:Complex dosage regiment Perception of diseaseFamily InputAgePoor communicationAssignmentIdentify any disease either you or your family member is suffering and answer:Disease symptomsTreatment regimenCompliance Reasons for non complianceCalculate the loss to you if you if you were the brand managerSteps you will take to convert this problem into opportunityBesides Patient, let us understand nature of the industryKotler Marketing Pure vanillaPharma Marketing DifferentThis is a very important slide that will form the basis of the course content. As a brand manager, one must understand every component carefully19What are the other differencesPharmaceuticalConsumerConsumer is decision makerMostly not trueTrueConsumer pays directlyNot TrueTrueBrand LoyaltyNot TrueTrueGovernment RegulationsVery HighLowR&DComplexLess complexPrice sensitivityLowhighDiscuss with the students if there are any other differences they can come out with20Clinical/MedicalPros and Cons of current treatment availableTechnical ability to understand the drugKnowledge of standard practiceIt helps how patients are viewed and treated by physiciansHelps brand manager to develop SWOT analysisHealth OutcomesEpidemiologyEconomic benefit of various treatmentPricing and reimbursementsEffect of product on QALY (Quality adjusted life years)

Market ResearchQuantitative and QualitativeIMSFocus GroupsTreatment patternDrug of first choiceIssues to highlight in promotional messageShow and learn how to use IMS data Real Life scenariosForecastingAssess the commercial potentialDevelop revenue models based on prescriptionArrive at numerical forecast and not to have strategic implicationsRole of Pharm marketeerComprehnsive review of disease marketplaceCompetitive landscapePros and Cons of currently available and pipeline treatmentAssessment of unmet medical need where new compound can fit itUltimately developing a brand positioning

Developing Product StrategyComprehensive marketing strategy to meet key objectives of the brand includingProduct PositioningMarket SegmentationPatientPhysiciansDevelops Pricing ModelRoll out plan operational and more tactical approachMarketing Mix in PharmaDefining a Product, Critical component in Pharma MarketingClassical wayEfficacySafetyTolerabilitySpeed of ActionQualityCostSide EffectsProduct DefinationNew ParadigmLife StyleQuality of LifeDTP BrandingRedefining the patient populationRedefining disease yardsticks PriceBrand versus GenericDuration of patent protectionCompetitive landscapeDosage formCost of API

PlaceHospital or Retail Product - OncologyControlled or non controlled -PsychiatricCold Chain - VaccinesDosage Forms SuppositorySelect market or Global launch

PromotionAdvertisingPersonal SellingPublic RelationsSales PromotionTarget AudienceATL/BTLGimmicksGlobal BrandingStrategic FrameworkWhich therapeutic area and geographical area?Portfolio selection and resource allocationTarget physicians, target indicationsMarketing MixImplementation

Discuss the examples of generic and branded companyMarketing Planning StagesPharma Market ResearchPrescribersPrescription AuditPatient ComplianceIndications, both approved and off labelPatientsTherapy awarenssCompliance

Pharma Market ResearchAttributesQuantitativeQualityQuestion NatureHow manyWhat if, WhyResearch NatureQuantity definingExploratoryFocusHistoric and StatisticalBehavioralResultsMeasurbleOpinionatedSample SizeLargeSmallHoe w to create and analyse IMS DataLive demonstration using real life IMS Rx AuditCalculations of Market Share, Growth, Volumes, Values, Performance IndexConcept of Market Segmentation, Targeting and PositioningReasons for Segmentation:All Doctors and Patients are not identicleTheir response to same drug could be different based on perceived side effects, cost, dosage regiment, off label indications (discuss with examples)

Benefits of SegmentationOptimal Product/Market MatchOptimal, cost effective promotional strategyMedia allocation

Segmentation in real lifeBy Indications MaintenanceAcuteBy Patient ProfileEthnic backgroundDemographicSeverity of illnessBy Physicians typeSpecialist versus GPsHospital versus PrivatePatients economic statusBy Dosage FormsInjectablesOralSuppository

Segment criteriaDifferentiableMeasurableAccessibleActionableDefendableSegmentation AnalysisMarket PotentialTherapeutic class/Indication ABCPotential Market SizeAvailable Market SizeServed Market Size

Avegrage Rx ValueValue PotentialVolume PotentialMarket GrowthCompetitorsComplexity/LegalProduct Attribute AnalysisAttributeYour ProductCompetitor ABCEfficacySafetyTolerabilityAdverse EventsOnset of ActionOtherDesgin attribute analysis and provide importance/score for physicians and patients both. Example Escitalopram versus Venlafaxin (Tolerability versus efficacy)TargetingAfter arriving at segments, company has to target certain segment based onSWOT AnalysisSustainable Competitive AdvantageEvaluation of current and future resourcesProduct Life CycleSales force capabilityIn house talent poolPositioningMost important job of marketer as this is the first message that goes outside!Based on product attributes, real and perceptualWrong positioning leads to wrong message and cascading effect all the way down to a flop!Once you are positioned, it is not easy to shiftPositioningQuestions to ask internally:What is the licensed indication by FDA/EMEADifferent therapeutic segments to coverHow many physiciansSWOT/Competition/Patent ProtectionUSP versus other productsCan Clinical Trials support the messageAmount of resourcesCan we prove/convince authority/doctors (for eg undefined MOA is very difficult to sell!PositioningTwo Dimensional PositioningSafetyEfficacyExamples of Product PositioningDosageFormulationsDrug Delivery/Technology Pk and PdMOADrug Drug InteractionsSafety in Children and Pregnant womenProduct ClassPackagingReiumbursementOnset of Action

Indian Generic PositioningUnsubstantiated claims by Sales ForceDifficult to superviseDifficult to control by regulationSelf regulation is limitedErroneous claimsToo many claimsPharmaceutical BrandingIs Pharma Branding different than others?Discuss attributes of brand and differentiate versus other industriesFront End branding: Name, Sign, Symbol, colors, location of placement, distribution outlets. Location of advertisement, price, celebrity endorsement, commercials, PR, Packaging, Consistency, Longevity, DesignBrandingBack end Factors:Research and DevelopmentCore Philosophy of ManagementInvestment and re investmentQuality throughout the value chainCustomer engagementTalent PoolDoes 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 BrandingEspecially in Rx categoryRole of KOLPersonalityAbility to speak well and influenceTechnologyPRHigher management is close to prescribersBranding in PharmaLimitations compared to consumer productPatents ExpirationFDA /Regulatory requirementsDuality Doctors versus PatientsDeductive versus InductiveDeductive Asking the target audience to choose from predefined conceptsInductive Asking the target audience what do they think about the treatment, how they see a brand and then creating conceptsBranding In PharmaRx versus OTCRx 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 buildingRx brand lacks organoleptics appeal to senses such as touch, taste, smell Sensory appeals are essential in brand buildingAll Rx brand looks more or less same QuestionHow many of you think it is not possible to build an Rx Brand?How to build an Rx BrandCreate with patientsCreate tools for patient complinaceDirect marketingDiscuss the disease or conditions to be treated and alternatives patient should know aboutBlend of doctor and patient communicationCommitting resources to making it a character.

Difference between Branding and PositioningNot inter changeable wordsPositioning is all about perception how you want doctors or patients to think about your productIts an unemotional exerciseBranding: Its all about relationship with target doctors and patients. Difficult to describe but it is a bond between product and doctorsCorporate branding supplements product brandingAssignmentGoogle search Claritin and TylenolInclude messageInclude imagesDescribe in your words difference between branding and positioning using two examplesEvaluate Indian brands and understand if any successful brands that appeals to youMarketing CasesNew pain killer belonging to new therapeutic category having patent expiry of three years is being launchedProduct is unique, once daily dosage compared to older drugsProduct has some side effects but manageable as long as patient follows the treatmentSuboptimal dose also works for mild to moderate casesObjectiveDevelop communication plan for doctorsEvolve a strategy post patentHighlight your recommendations with reasonsMake as many assumptions as you think appropriateThink out of the boxGive a name to the productProduct Life Cycle and Portfolio ManagementDiffusion of innovationCompetitive strucutureInternal product portfolioResearch and DevelopmentPatents and IPTechnological advancesSustained ProfitabilityStandard Graph

Pharma PLC versus ConsumerExtensive Pre Launch PhaseDependent on Patent ExpiryReimbursement LimitationsLimited bandwidth to play aroundRegulatory hurdlesWhat happens to business when you ride the waveIntroductionGrowthTurbulenceMaturityDeclineRevenueSales GrowthCostProfitPhysicians ProfileCompetitorsPremarketingAt least two years prior to launchDevelop advisory board, diverse membersClear Mechanism of ActionCreate a dedicated task force internallyInitiate selective exposure to KOLDevelop Speakers BureauInternal planning, Mfg, Packaging, PI, PMEvolve positioningIntroductionLaunch Planning WOW EffectRegional LaunchCountry LaunchSamplingKOL seminarsPRPromo materialCharged up sales force Motivation, IncentivesSpendSpendSpendSpendGrowth PhaseTerritories are further divided to increase the frequency and targetsSales force expansionContinued support to KOLFocus increased in heavy prescribersExpansion of target doctors to increase the share of prescriptionOverall investment is highMaturityFirst impact is freeze on sales forceCut down on lavish expenses, foreign trips etcCutting down on some target doctors.More scrutiny on expensesStiff targets/growth expectations without must investmentMost difficult period from sales force point of viewNo excitement !DeclineTime to move on to new company!Tail end products are interesting acquisition targets for start ups!Allow slow decline by selective presence in the marketProduct moves from elite sales force to contract sales forceStrictly no new initiativeDifficult period for sales force to understand Confused state!Product Portfolio and PLCIn Line Products, its different dosage forms, strengths and packagingPipeline Products (In Phase III and under)PM and PLC are very critical from strategic planningInvestors and Analyst focus most on this two issuesOnly way to judge the future cash flows, profits and sustainability of organization - Examples

Assessment techniques in PharmaPMAssessment TargetsConcept of Net Present Value, NAVDemonstrate it using an excel formulaDifferent Matrices for evaluation of Portfolio opportunityProbability of Tech success versus NPVOpportunity Cost versus Development CostBCG Model Market Growth Rate versus Relative Market Share (Starts, Question Marks, Dogs and Cash Flows)Market Attractivenss Industry Attractiveness versus Business StrengthCompetitive StrategyStrategic Issues:Research inhouse or outsourceMarket yourself or outsourceInternational expansion or stay at home!Acquisition of product portfolioBrand versus GenericHow much backward integration one should do?Discuss Classic Kotler exampleLets talk India, Lets focus on GenericsPricingForecastingForecastingForecastingPrevalenceIncidenceComplianceAccessAvailabilityDosage Form MSDiagnostic ToolsAdvertising and PromotionHistorical salesForecasting a pharma productDisease PatientConverting healthy patients to disease patientLife Style diseases and drugsOTC componentOff label indications NeurontinInnovative dosage forms Nicotine

Sales Force ManagementCornerstone of successful marketingTerritorial planningDeveloping Call PlanIdentification of sales force size (RTF Model)Hiring and recruitmentTrainingSupervisionMotivation and incentivesMonitoring and Mentoring