Various Sales Promotion Methods and Their Advantages and Disadvantages
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Transcript of Various Sales Promotion Methods and Their Advantages and Disadvantages
AO’s Presentation
BuilidingBrand Equity
The Elements of Integrated Marketing Communications
Sales promotion is only one of the elements of the Promotional Mix
The Promotional Mix in a Marketing Communications programme can contain the platforms as detailed in the previous slide.
Sales promotion is just one of them: and will be discussed after Personal Selling and Detailing.
The Most Important elements in Integrated Pharmaceutical
Marketing Communications
"Detailing" forms one of the most important tools in pharmaceutical marketing and advertising
When we detail, we are actually advertising the product to a particular targeted customer, to induce them into buying or prescribing it.
It is a type of personal selling which is thoroughly rehearsed, internalised and practiced to an extent that when it is heard, it sounds as if it is coming out of one's own talk about the product
Helps in creating a Brand Image
6
Influences on the Doctors’ Prescribing Habits
Source: IBM Analysis
Side EffectsSide Effects
Drug delivery method
Drug delivery method
Cost of drugCost of drug
EfficacyEfficacyPotential drug-
drug interactions
Potential drug-drug
interactions
DosageDosage
Payor formulary
status
Payor formulary
status
BrandBrand
Personal preference
Personal preference Patient requestPatient request
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• “I like the good, tangible information about a new drug”
• “The samples determine what I prescribe for the long term”
• “Samples are extremely valuable”• “I value the relationships with
them. Overall, I am satisfied with their service”
• “I rely on them to keep me aware of what’s happening in the drug industry”
• “I like their presence to break up my stressed schedule”
• “Everybody likes perks”
Comments From Doctor Interviews
• Learn new drug information
• Get drug samples
• Connect with peers or physician thought leaders
• Receive ‘‘the perks’’
• Establish personal contact with the drug company
• Provide “stress release”
Value of Relationship with PharmaCos to Doctors
Source: IBM Analysis
8
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: “Pharma’s Detailing Overhaul”, February 2001 (IMS Health, Scott-Levin, Forrester Research, Inc); (Ziment/WebSurveyMD.com); IBM Analysis
• “I view them as the liaison but I don’t take them at their word all the time”
• “I hate negative marketing. The lack of objectivity is a big turnoff for me”
• “If they keep coming back with the same information, it’s a waste of both parties ”time”
• “I appreciate the information, but the reps can be pushy”
• “The thing I dislike the most is when the rep doesn’t appreciate that I am busy and still tries to pitch the drug to me”
• “I don’t believe that someone with a bachelor’s degree knows more about how a drug works than I do”
Doctors’ Comments
78%
47%
Detailing story highlights :The relevant pointsThe unique selling points of the brand raising the doctor's interest It slowly creates a brand image
Detailing story has to be perfect in having :Ideal mixture of scientific informationQuality of product The manufacturing technique used
Advertisement of the company's product (a walking audio-visual).
To create and arouse interest in the doctors mind regarding products thus influencing his prescribing habit.
To emphasize the advantages / benefits and the salient features of products.
To generate more prescriptions
Communication is the essence of marketing
It has four elements:
MR - the medium Detailing folder / visual aid - the tool Voice of the MR - the audio The matter on the visual aid - the visual.
Thus in total, detailing must produce an "audio-visual" impact
There are 9 commandments of effective detailing in order of importance.
Text Voice Handling of Visual Aid Use of Pointer Eye to Eye Contact Body Language Listening Use of Senses Time Management
Even slight deviation could lead to wrong, misleading or unclear information.
Small addition or deletion could lead to misinformation.
Clarity of Speech Audibility / Loudness Tone Modulation of Voice and Emphasis Timing and Pause
The distance for effective viewing be minimum three feet between the doctor’s eye and the visual aid. It gives 100% clarity.
Secondly, folder / visual aid should be held at such an angle to the eye, so as to avoid any reflection of light. This avoids any distortion in vision.
It also helps in reducing distraction and private planning.
Adds up the punches given by modulation and emphasis
Visual contact with the prospect helps to determine whether doctors are really interested and bring them back to the main frame
It also reflects the confidence level of the MR
Helps in arousing interest in doctors and they start anticipating the next message
A confident, professional body language increases the power of detailing
• Customers raise objections, make remarks
• This can be handled only if you actively listen
• Helps in closing the sale and generate prescriptions
Not only in the West, but more and more Companies in India are taking to iPads for detailing:
Reason for choosing iPads • fast launch time• No sleep mode and no standby• Handy when you meet your customer• User-friendly Using iPads for detailing can create a wow-effect
Sales promotionSales promotion in Pharmaceutical Marketing includes several communications activities that attempt to provide added value or incentives to • The customers (doctors)• The consumers (patient)• The wholesalers (stockists) , retailers, or other organizational customers to stimulate immediate sales.
Sales promotionThe most popular methods of Sales promotion used in Pharmaceutical Marketing are:
• Quantity discounts or Trade Offers• Gifts to retail chemists and stockists on the purchase of a slab-wise predetermined quantity of a product or on value of an assortment of products
Limitations of Sales promotion• Sales Promotion cannot increase awareness, interest, evaluation, trial or usage in general.• Sales Promotion cannot increase the sales of products at the retail level unless it is supported by an increase in the prescription from doctors.• Sales Promotion will not be able to increase the stock levels with the retailers and wholesalers. It may boomerang if there aren’t enough prescriptions• Even in the case of OTC formulations, Sales Promotions should be backed by adequate advertising pressure
Positive Impact of Sales Promotion
• Usually the trade offers are also extended to dispensing doctors and nursing homes. This can dramatically improve the repeat usage by dispensing doctors and nursing homes.
• Sales Promotions are useful in achieving certain short term objectives like reducing inventories of products and increasing the stocking with the Trade provided there is simultaneously backing from the Company’s side with advertising and Personal selling efforts to increase the demand.
Sales Push vs. Demand Pull Strategy
The origin of these two terms refers to the supply chain and how the demand for the product is generated.
Sales Push vs. Demand Pull Strategy
A pull strategy concentrates on consumers who are the final purchasers
A push strategy involves pushing the product through the distribution channel by gaining the co-operation of the stockists and retailers.
Some companies employ combination of these two basic strategies.
The Push StrategyThe push strategy got its name because it involves pushing or urging members of the marketing channel to
• Sell a product by recommending it to end consumers• Or by giving the products adequate display
Companies offer special offers, discounts or gifts to stockists and retailers to gain their support.
The Pull StrategyThe pull strategy aims at pulling the customer towards the product
Every pharmaceutical company aims to create a demand for its products.
The company’s priority is to generate prescription for prescription products from the prescriber or customer viz. the doctor
Creating demand or generating prescriptions is a pull strategy
Sales Push vs. Demand Pull StrategyThe pull strategy should be properly balanced with an appropriate push strategy at the retailer level.
All the hard work of generating the prescription by a medical representative would go to waste if the prescription generated by him/her is not honoured due to want of stocks.
Products with seasonality eg. Cough and cold preparations and anti-diarrhoeals combine push and pull strategy during the relevant season.
AdvertisingDefinition of advertising as per American Marketing Association:
Any paid form of non-personal presentation and promotion ideas,
goods or services by an identified sponsor.
(The above definition clearly rules out any face to face communication with customers).
Advertising therefore can inform people, make them aware of your
product, create interest and take them to a stage of evaluation. eg.
Journal advertising for Ethical Products, Mass Media for OTC
products.
Advertising benefitsIn Ethical Pharmaceuticals, an advertising campaign
1. Can create a better climate, a favourable
disposition for the sales force to move in and clinch
the sale.
2. Also, it can reassure a convinced user and
maintain usage.
Advertising LimitationsIn Ethical Pharmaceuticals, an advertising campaign
1. Is not permitted in mass media.
2. Cannot create or increase sales directly.
3. It can never be a substitute for the Medical
Representative.
4. The true beneficiary, the patient, may never see the
advertisement in case of prescription drugs.
DTC Advertising Pros and Cons(Direct to Consumer)
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Pharmaceutical company perspective
• DTC advertising benefits public health by starting a dialogue
between patients and physician, which can lead to
education and treatment of patients.
• DTC advertising fosters competition among products which
lead to improved quality and lower prices.
• DTC advertising enhances consumer knowledge by making
them aware of new products, helps them identify symptoms
and new treatments for previously untreatable disease.
http://www.phrma.org/direct_to_consumer_advertising/
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Pharmaceutical company perspective …contd.
• DTC advertising encourage consumers having
interactive dialogue with their physician
about medical condition and illness they may
never have discussed before.
• Patient compliance could be increased.
http://www.phrma.org/direct_to_consumer_advertising/–phrma-The pharmaceutical and research manufacturers Association
Downsides of DTC AdvertisingLeads to uneducated self-diagnosis
Web Marketing• The advent of the Internet as a legitimate
marketing tool has created the first trackable
mass-marketing channel.
• Today, Internet marketing campaigns can capture
even the most granular details of every interaction,
which can then be stored for individual and
aggregate analysis.
• Internet campaigns, unlike TV, radio, and print,
need not rely on post hoc statistical surveys with
their inherent delay, potential error, and cost.
Three trends are driving change:
• Pharma and life sciences CEOs are demanding better accountability
and ROI from their marketing investments.
• Target audiences are increasingly using the Internet as a key
component in making healthcare decisions.
• New drugs targeting smaller populations make traditional broadcast
channels less desirable.
Web Marketing …contd.
Public RelationsUsually PR is interpreted as Public Relations but in the case of Ethical Pharmaceuticals, it may be more appropriate to refer to it as Professional Relations.
This cost effective medium for communicating our message includes • Medical press releases (particularly •for new products) • Reports on Scientific meetings/symposia• Reviews of publications• Accounts of Clinical Trials and • Professional meetings
Public Relations … contd.• Specialised PR Agencies exist to handle all the necessary work• Most large Companies in addition, have an internal PR department to liaise with the PR Agencies• But sometimes given the medical nature of the briefings, the Product Manager in conjunction with the Medical Director/Medical department, is required to assist the internal PR department to brief the external PR Agencies by providing all the relevant data. • The Product Manager also has to help the internal PR department, monitor and review the effectiveness and progress of the PR initiatives. .
Medical meetings/ symposia/ congresses
These may be at local/national or international level with the involvement of local / national or international speakers who may be external doctors of opinion leader status or in-Company medical doctors with suitable qualifications and experience.
More important is the degree of control which the host company has over the programme and speakers.
Obviously, a company gets better value if the event meets the company’s objectives.
Criticism against Medical meetings/ symposia/ congresses
and OPPI / IFPMA guidelines
Interactions with Healthcare Professionals: EVENTS … excerpts from OPPI IFPMA guidelines
Travel Facilities: No travel facilities to be extended to a healthcare professional as a delegate, inside the country or outside, including rail, air, ship, cruise tickets, paid vacations, etc. for self and family members for vacation or for attending conference, seminars, workshops, CME programme, etc.
Payments for Speakers and Presenters: Payments of reasonable fees and reimbursement of out-of-pocket expenses, including travel and accommodation, may be provided to healthcare professionals who are providing genuine services as speakers or presenters, other than delegates.
Conferences and Medical Events Hospitality/ Appropriate Venue/Limits of Hospitality /
Entertainment… excerpts from OPPI IFPMA guidelines
Hospitality: No hospitality, like hotel accommodation, for self and family members under any
pretext to be provided to a healthcare professionals other than as mentioned in sections 7.3 and 7.4
Appropriate Venue: All Events should be held in an appropriate venue that is conducive to
the scientific or educational objectives and the purpose of the Event or meeting. The additional requirements set forth in Article 7 of this Code also apply accordingly.
Limits of Hospitality: Hospitality, wherever applicable, should be limited to refreshments
and/or meals incidental to the main purpose of the Event and should only be provided:
• To participants of the Event and not their guests; and • If it is moderate and reasonable as judged by local standards. • As a general rule, the hospitality provided should not exceed what healthcare professional
recipients would normally be prepared to pay for themselves.
Entertainment: No stand-alone entertainment or other leisure or social activities should be
provided or paid for by companies. At Events, entertainment of modest nature which is secondary to refreshments and/or meals, wherever applicable, is allowed.
Medical ExhibitionsThese can be relatively expensive on account of:
• Cost of renting space• Cost of special stand• Samples and Literature• Staff time
It is important therefore to predetermine the objectives of participation vis-à-vis the cost likely to be incurred.
Direct MailingsEarlier it used to be by Post. Now internet has become a cost effective medium for Direct Mailings.
The objective must be defined first so that the following can be planned:
• Tailor made message• The Design• The Target Audience and • The Response Measurement
Phase IV or Post Marketing Surveillance Studies
Phase IV or other Marketing Oriented Studies can be very effective in:
• Creating Customer Knowledge• Documenting the experience of the product• Creating a useful pool of speakers for meetings / conferences etc.
The trials must satisfy Company’s own scientific and ethical standards
• Marketing executives are turning to Internet marketing as a
more effective means to measure branding and sales impact,
along with the promise of a greater ROI than traditional
marketing channels.
• Marketers in big pharma companies are looking to better
understand this medium of communication and use it to
develop a direct relationship with the consumer.
Web Marketing …contd.
• It all starts, of course, with your website: the cornerstone of any online
marketing effort.
• Most bio/ pharma companies soon realize that their website needs to
address multiple target audiences, such as:
• Physicians
• Patients
• Caregivers
• Investors
• Collaborators
• Clinical trials prospects
Web Marketing …contd.
• Must make it easy for each of these groups to find content of relevance to them.
• Engage your visitors
• Be readily usable
• Convey your company’s top-level and
supporting messages clearly
• Employ design that harmonizes well with
your company’s image/branding
• Reflect the quality of your company
• Provide analytics, so that visitor sources
and paths through your site are readily trackable
• Be updateable
The site’s architecture and navigation
Advantages of Web Marketing• In the past, patients’ independent sources of information were limited to family and friends and text books• All that has changed with the Internet: there is now a vast information available at the click of a mouse.• The patient may also browse through several blogs or forums to gain feedback from actual users of the drug.