It is easier to change the products and services of the individual manufacturer to fit the needs of the market than it is to convince the entire market to use the products and services as the individual manufacturer prefers them
“ You can have any color car you want as long as it’s black”
All the resources of the firm should be organized into a total system aimed at meeting the needs of the consumer
The role of marketing is to influence or direct activities from the manufacturer to the patient:
Measures the “inflow” of products from the manufacturer to the hospital
Indirect (through wholesalers)
Direct purchases from manufacturers
Periodic Surveys Hospital Purchases Growth of pharmaceutical purchases by hospitals has greatly exceeded purchases from pharmacies on a proportional basis In many communities, the hospital has become more important in routine care
Monitoring of detailing visits to physicians by sales representatives
Monitoring of journal advertising
Monitoring of direct mail advertising
Periodic Surveys Promotional Media
Generic Stages of Market Research Marketing Problem
Marketing Objectives Reviewed
Alternative Marketing Options Considered
Formulation of data requirements, sources
Research objectives defined
Research Design Research Proposal Select Sample Design Survey & Feedback Design coding, analysis instructions Interpret Present Findings Take Action and Monitor Written marketing brief Costing Was this what was requested? Source: Smith, “Pharmaceutical Marketing”
Face-to-face visits to physicians or purchasing managers (e.g., hospitals, HMOs) to present new prescription drugs
Influence prescribing habit
Increase current prescription usage
Build relationships with doctors
Get drug into a formulary; “pull through”
Track delivery of prescription drug samples to physicians or other purchasers
Effective Detailing Influences on Physician Prescribing Habits Source: IBM Analysis Side Effects Drug delivery method Cost of drug Efficacy Potential drug-drug interactions Dosage Payor formulary status Brand Personal preference Patient request
“ 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 Physician Interviews Value of Relationship with PharmaCos to Physicians
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: “Pharma’s Detailing Overhaul”, February 2001 (IMS Health, Scott-Levin, Forrester Research, Inc); (Ziment/WebSurveyMD.com); IBM Analysis 78% 47%
“ 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”
Companies Are Experimenting with 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 Physicians
Allows physicians to see sales reps, gather information they deem important, and to have the flexibility and control to do it in their own schedule
Offers physicians a range of convenient interactive channels
Provides timely updated drug information
Provides simpler sample ordering and delivery
Provides quality peer-to-peer discussions on a topic that interests a physician.
Benefits to PharmaCos
Cost-effective: an online sales session costs about $110 on average, compared with about $200 for a field rep’s office visit
Cost effective: Increased contact time per visit allows for higher information content
Better control of detailing content: as a result, e-Detailing can be used as an efficient way to train less-skilled sales reps
Capture relevant physician practice data: with this information, Companies can identify potential high prescribers that sales reps can target later
Counter detailing and off-the-label discussion: with e-Detailing, the company’s medical experts can speak with physicians about competing drugs’ clinical trial flaws and off-the-label prescription, which is normally not allowed in a sales rep’s visit
The pharmaceutical industry in America distributed $6.7 billion worth of samples to physicians in 1999 *
During a typical month, the average pharmaceutical sales representative will visit 150 physicians, distribute thousands of packages of drug samples, obtain FDA required signatures on 150 sample distribution forms and receive scores of new sample cartons to their home-based office, and expend as much as 25% of their time tediously managing a paper-based process
Designed to minimize the threat to the public health posed by prescription drug diversion and counterfeiting
Requires that samples distributed by pharmaceutical representatives be signed for and tracked to create audit trails
Helps to ensure that the correct physician receives the correct samples. If a pharmaceutical company is found to be non-compliant, they could face significant penalties, fines, and possibly even prison terms
The pharmaceutical sales representative (rep) arrives at a physician’s office.
The rep manually fills out a pre-printed sample distribution form including physician information, sample product information, and the proper quantity of all samples to be distributed.
The representative conducts a 3-5 minute presentation with the doctor about the product he or she is promoting, encouraging the physician to write more scripts for the product.
The rep ends the detail by giving the physician the intended samples, and asks the physician to manually sign for the samples on the distribution form.
At the end of the day, the rep will review each distribution form to check for accuracy, and then manually type all of the data from every form into their laptop Sales Force Automation (SFA) system.
The rep then removes a copy of the triplicate form for his or her own records which must be kept for seven years, and mails a copy to a central processing location.
The data sent to the central processing location is then manually entered for a second time into a database by a team of data processors. Since this is a manual process, there is an increased chance for the data to be full of errors. Each discrepancy found must later be reconciled during an audit to meet PDMA standards. It can often take weeks before this information is matched to the sales representative’s inventory, and even longer for the marketing manager to gain access to it.
Finally, the representative will place a manual order, writing everything out on yet another pre-printed form, to replenish their own sample inventory