2. Core Concepts
1. Healthcare environment
2. The Pharmaceutical Industry Environment
3. The Pharmaceutical Marketing
Environement
4. Marketing Strategy
5. Marketing Research
6. Market Segmentation
7. Situational Analysis
3. Core Concepts
8. Positioning Targeting and Profiling
9. New Product Development
10 Product Life Cycle and Portfolio Management
11.Distribution Strategy
12. Pricing Strategy
13. Communication strategy
14. Personal Selling
15. Advertising
16. Public Relations and Sales Promotion
11. Pharma Industry Components
APIs
OTC
Research Biotech
Pharma
Industry
CRO Generics
Supply
Packaging
Chain
12. Understand the role of stakeholders
Patients
Prescribers
Hospitals
Influencers
Financers
Regulators
13. Pyramid of Influences in Rx
KOL
Specialists, Pharmacist
in charge
General Practitioners
14. 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
15. 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
16. 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
17. Besides Patient, let us understand
nature of the industry
Phase I Phase II Phase III Phase IV
• Lowest • Moderate • Highest • Post
Cost Cost cost Marketing
• Safety • Safety and • Large • Market
tested on efficacy clinical expansion
healthy tested on trials • Heaven for
disease marketing!
individuals
18. Kotler Marketing –Pure vanilla
Planning of
Strategies for each Evaluation and
Analysis of Market Market Segmens marketing
segment Control
Programs, Activities
20. What are the other differences
Pharmaceutical 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
21. 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
22. Health Outcomes
• Epidemiology
• Economic benefit of various treatment
• Pricing and reimbursements
• Effect of product on QALY (Quality adjusted
life years)
23. 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
24. Forecasting
• Assess the commercial potential
• Develop revenue models based on
prescription
• Arrive at numerical forecast and not to have
strategic implications
25. 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
26. 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
27. Marketing Mix in Pharma
Product Price Promotion Place
Detail Aid Hospital
Therapeutic Class
Competition
Clinical Papers Pharmacies
Generic or Branded
CME Programs Distributon strategy
Margins
Supply chain and
Symposias
Dosage Form Storage
Regulatory
Personal Selling
requirements
Treatment Cost
Controlled versus non
International events
controlled
28. Defining a Product, Critical component
in Pharma Marketing
• Classical way
– Efficacy
– Safety
– Tolerability
– Speed of Action
– Quality
– Cost
– Side Effects
29. Product Defination
• New Paradigm
– Life Style
– Quality of Life
– DTP Branding
– Redefining the patient population
– Redefining disease yardsticks
30. Price
• Brand versus Generic
• Duration of patent protection
• Competitive landscape
• Dosage form
• Cost of API
31. Place
• Hospital or Retail Product - Oncology
• Controlled or non controlled -Psychiatric
• Cold Chain - Vaccines
• Dosage Forms – Suppository
• Select market or Global launch
32. Promotion
• Advertising
• Personal Selling
• Public Relations
• Sales Promotion
• Target Audience
• ATL/BTL
• Gimmicks
• Global Branding
33. 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
34. Marketing Planning Stages
Analysis of Execution of
Evaluation of Positioning Control and
market marketing
opportunties and strategy review
segment plan
35. Pharma Market Research
• Prescribers
– Prescription Audit
– Patient Compliance
– Indications, both approved and off label
• Patients
– Therapy awarenss
– Compliance
36. Pharma Market Research
Attributes Quantitative Quality
Question Nature How many What if, “Why
Research Nature Quantity defining Exploratory
Focus Historic and Behavioral
Statistical
Results Measurble Opinionated
Sample Size Large Small
37. 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
38. 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)
39. Benefits of Segmentation
• Optimal Product/Market Match
• Optimal, cost effective promotional strategy
• Media allocation
40. 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
42. Segmentation Analysis
Market Potential Therapeutic B C
class/Indication A
Potential Market
Size
Available Market
Size
Served Market Size
Avegrage Rx Value
Value Potential
Volume Potential
Market Growth
Competitors
Complexity/Legal
43. Product Attribute Analysis
Attribute 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)
44. 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
45. 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
46. 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!
47. Positioning
Fit with
Corporate
Objectice
Creat USP
49. 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
50. 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
52. 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
53. Branding
• Back end Factors:
– Research and Development
– Core Philosophy of Management
– Investment and re investment
– Quality throughout the value chain
– Customer engagement
– Talent Pool
54. 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
59. 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
60. 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
61. 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
63. 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.
64. 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
65. 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
66. 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
67. 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
68. Product Life Cycle and Portfolio
Management
• Diffusion of innovation
• Competitive strucuture
• Internal product portfolio
• Research and Development
• Patents and IP
• Technological advances
• Sustained Profitability
70. Pharma PLC versus Consumer
• Extensive Pre Launch Phase
• Dependent on Patent Expiry
• Reimbursement Limitations
• Limited bandwidth to play around
• Regulatory hurdles
71. What happens to business when you
ride the wave
Introduction Growth Turbulence Maturity Decline
Revenue
Sales
Growth
Cost
Profit
Physicians
Profile
Competitors
72. 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
73. 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
74. 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
75. 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 !
76. 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!
77. 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
78. Assessment techniques in PharmaPM
Assessment Targets
Long term
SWOT Stratgic Fit
Performance
• Efficacy • NPV • Therapeutic
• Pricing • ROI Class
• Ease of Use • Market Value - • Regions
• Patent Discounting • Competencies
• PLC Stage • Clinical
Support
• Regulatory
capbility
79. Concept of Net Present Value, NAV
• Demonstrate it using an excel formula
80. 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
81. 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?
83. Lets talk India, Lets focus on Generics
Bioequivalence Bioavailability Patent
Regulatory/Mkt
Price Technology
Access
84. Pricing
• Highest price you can get
• Stay there
Brand •
•
Patent Protection
No threat, No Limit pricing, ex:
Biotechnology
• First mover advantage
• Fast In, Fast Out
Generic •
•
Based on Brand Price
Cost of APIs
• Cost of Regulatory
87. Forecasting
• Prevalence
• Incidence
• Compliance
• Access
• Availability
• Dosage Form – MS
• Diagnostic Tools
• Advertising and Promotion
• Historical sales
88. 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
89. 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
Notas del editor
Health as defined by WHO is complete state of physical, mental and social well beingIllness define as person’s own perception of how he or she feelsDisease: Judgement by the doctor about health and illness
EMEAFDAGovt bodies
This slide to be elaborated in class understanding who they are, their needs and issues. This is very important from marketing point of view
This is a very important slide that will form the basis of the course content. As a brand manager, one must understand every component carefully
Discuss with the students if there are any other differences they can come out with