Building Relationship with doctors with effective marketing
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Building Relationship with doctors with effective marketing

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This case is about how you can build strong relation with Doctors with effective marketing

This case is about how you can build strong relation with Doctors with effective marketing

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Building Relationship with doctors with effective marketing Building Relationship with doctors with effective marketing Document Transcript

  • “Building Relationship with Doctors for Effective Marketing” Case Analysis of given case titled “Building Relationship with Doctors for Effective Marketing” with respect to Internal Evaluation Service Operation Management MBA (Pharmaceuticals) Semester- IV Submitted to: Prof. Nirav Joshi Prepared by: Milan Padariya Roll No: 63 Centre for Management Studies Ganpat UniversityPrepared by: Milan Padariya Page 1
  • “Building Relationship with Doctors for Effective Marketing”Brief of Case:Indian Pharma Industry-Background • Very fragmented market • Market worth Rs. 140,000 million • Healthy 10% growth rate • 16,000 players both in organized & Unorganized • Glaxo Wellcome -No.1 player with 5.8 % market share • Market share of top five companies put together < 20%Branded Generics Market • Indian Pharma market recognizes process patents and not product patents • As a result India is a branded generic • 50 brands for every molecule. • Total 30,000 brands in India • Even smallest player meets highest quality norms • This typical scenario brings in a challenge of Brand differentiation in the crowded brand names.Doctor Population • Approx. 5 lakh doctors in India registered under Indian Medical association • 60 – 65 % are General Practitioners (GP) with MBBS degree • Specialty doctors like Physicians, Gynecologists & pediatricians constitute 35-40 % • Pharma companies cannot meet more that 1,25,000 doctors out of the 5 lakhsPrepared by: Milan Padariya Page 2
  • “Building Relationship with Doctors for Effective Marketing” • As a result doctors are being met by atleast 60 – 100 companiesPromotion • In an ethical market Product promotion is directed towards qualified doctors • No advertising mentioning brand names is allowed in the lay press • Medical representatives play a major role in the promotion process by directly meeting the doctors and promoting their products • Other medias like Direct mail, journal, advertising and conferences also play a role but a limited one.CRM Initiative • Keeping in mind the challenges of typical pharma industry IDIC model by Don Peppers & Martha Rogers is used to understand the steps to a CRM initiative • Steps in IDIC Model  Identification  Differentiation  Interaction  Customization • Identification Process: First step is to identify your target customersPrepared by: Milan Padariya Page 3
  • “Building Relationship with Doctors for Effective Marketing”  Each Medical Rep maintains a list of doctors which is acquired by interviews with stockists, retailers and from peers  This list is called Must See List (MSL), Must Visit List (MVL), Customer list etc..  The list contains Name, address, telephone no, specialty, qualification, visit timings etc..Other sources of data collection • Membership directories of associations like Indian Medical Association • Individual specialty doctors association directories • National level specialty conferences • Doctor referrals These lists are finally consolidated and this data can be mined for details of specialtywise breakup, geographical coverage etc to serve as a tool for marketing decision makingprocess.Differentiation Process • Success of any loyalty program lies in differentiating its key customers • Doctors are classified using ABC method as Core, Important and Others • The classification is made based on the amount of business each classified doctor group generates to the company. • The whole differentiation process is performed in subjective terms of the perception of the local MRPrepared by: Milan Padariya Page 4
  • “Building Relationship with Doctors for Effective Marketing”Interaction Process • During interaction process the idea is to know the doctor intimately, his hobbies, likes, dislikes, family details etc.. • Individuality of doctor is to be maintained and decision on how the data collected will be used is to be decided with utmost importance • Interaction can be at two levels • One, the MR can personally collect most of the information from his day to day interaction with doctors. • Second, at corporate level by sending structured questionnaires and seeking further details by email communicationInformation collected is then incorporated to basic database with the following details • Personal information - Birthdays, Anniversary, Family • Hobbies and interests • Professional interests – Speciality, Journals read • Ownership details – Household durables, vehicles etc.Customization Process • Customization involves utilizing the colleted data to provided personalized service to the doctors • Like greeting on birthday, anniversary by simple card personally signed to a phone call to wish them • Even gifts, bouquets can be delivered at doorstepPrepared by: Milan Padariya Page 5
  • “Building Relationship with Doctors for Effective Marketing” • Major importance lies in how to customize the interaction with the doctor based on the data collected • Gifts based on interest and hobbies can be presented • The success of the whole CRM programme depends on how well the companies can pass on the data of the doctor to its field force and train them on how to use this dataLoyalty Programme • An ideal loyalty programme would identify its key accounts, reward them for their custom and encourage them to increase their spend • But in Pharma context the doctor is not the actual consumer. Thus ethical issues are involved in awarding reward points in return for prescriptions. • One approach would be to set the whole programme based on classification of doctor groups. The lowest rung doctors would be restricted to basic activities. • The number and level of activities would increase as the importance of doctor grows • A branded programme can be started for most important doctors • The objective of the programme has to be clearly defined in the onset and the exclusivity of the programme has to be communicated to doctors to make them understand that they are the “Chosen One” • The success of such programme hinges on making the doctor covet membership to the programme. Thus continuous monitoring is required to measure the returns generated from the doctor • If they fall below a predefined returns limit, then the doctor can be downgraded and his privileges would be reducedPrepared by: Milan Padariya Page 6
  • “Building Relationship with Doctors for Effective Marketing”Direct Marketing • A valuable tool for effective CRM • Brand awareness campaigns, new launch mailers and contests all can be conducted though direct marketing initiatives. • An cost effective method which can reach a large audience at cheaper costs • Easily measurable with reply devices which can gauge the efficacy of a campaign • The primary rationale is to save the time of the field by promoting low involvement products, promote brand recall for new product etc.. • Media like telemarketing and web have also been tried interms of direct marketingCall centreThe medium lends ear to 3 types of customers • Doctors who would like to know more about the drug profile, discuss a specific case and ask for references on the use in a specific condition • Patients seeking counselling, the nearest physician or chemist shop. The telephone provides anonymity to the called to discuss on taboo subjects. • Retailers asking for pricing details, product availability • Doctors would not prefer their queries being answered by a lay person and so most medical queries have to be escalated to a qualified physician. • Call center is an excellent medium to come closer to customers.Prepared by: Milan Padariya Page 7
  • “Building Relationship with Doctors for Effective Marketing”Measurement Systems • Any programme must have an effective measurement system to gauge its effectiveness. • The measurement systems would require study of  Prescription profile of doctors who are in CRM vis a vis a control sample who are met by field force but not exposed to CRM  Prescription give by doctors over a particular time frame.  Amount of prescriptions before and after exposure to CRM programme.Prepared by: Milan Padariya Page 8
  • “Building Relationship with Doctors for Effective Marketing”Q. 1: Explain IDIC model, suggested by Don Peppers and MarthaRogers, as CRM initiative to building relationship with Doctors foreffective marketing.Ans: IDIC MODEL: The IDIC model was developed by Peppers and Rogers. Thismodel suggests that companies should take four actions in order to building, keeping andretaining the long term one-to-one relationships with customers.IdentifyDifferentiate (value, need)InteractionCustomizeIdentifyFirst a company must identify who is actual customer and should know about deepknowledge of their customers. It is not only necessary to know about your customers butyou have to know about more and more your customers so that you can easily understandthem and serve them profitably.DifferentiateDifferentiate your customer on two bases: value and needValue: Differentiate your customer to identify which customer is generating most valuenow and which offer most for the future. Give more value to those customers who aregenerating more value for you.Need: Differentiate your customers according to their needs. Different customers havedifferent need and serving the in profitably ways need more knowledge about their needs.Prepared by: Milan Padariya Page 9
  • “Building Relationship with Doctors for Effective Marketing”InteractionCompany must emphasis on interaction with customer to ensure that you understandcustomer’s expectations and their relationship with brand. Company must considerInteraction with customers according to their needs and value that they are providing you.Interaction directly with customers makes believe that company has concern with themand company wants to serve them individually. These efforts make customers loyal andhelp company to build long term relationships.CustomizeWhen you differentiate your customers according to their values and needs, after that,you have to customize your product according to their needs and values. Customize theoffer and communications to ensure that the expectations of customers are met. Interactto customize is information to customers about your ability to cope with their need.Failure in the third step means something wrong with second or third steps. So return orgo back to previous steps study them again and search out more and more and rearrangethese steps.Prepared by: Milan Padariya Page 10
  • “Building Relationship with Doctors for Effective Marketing”Q. 2: Which kinds of information should be collected by PharmaceuticalCompany in CRM activity?Ans: Following data is collected by pharmaceutical companies in CRM Information.The structured questionnaires requesting further details can also be mailed to doctors witheach response entitled to a token gift, etc. This approach typically would yield a lowerrate of return but the quality of information would be superior to the first approach as it iscoming directly from the doctor. The information collected is then incorporated to thebasic database earlier formed. Just to give an idea of the type of information collected bycompanies consider the following:Personal information: date of birth, marriage anniversary, details of children,qualification and experience, etcHobbies and Interests: Activities during spare time, tv channels watched, generalinterest, magazines read, favorite vacation destinations, etcProfessional Interests: Type and name of medical journals read, professionalmembership of associations, attendance at national conferences, etcOwnership Details: Household durables owned, vehicle ownership, etcPrepared by: Milan Padariya Page 11
  • “Building Relationship with Doctors for Effective Marketing”Q. 3: Explain the loyalty programme, Direct marketing and call centreas an effective CRM tools.Ans: Loyalty programmeThe next obvious step is to have a loyalty programme as a frequency marketing initiative.An ideal loyalty programme would be able to identify its key accounts, reward them fortheir custom and encourage them to increase their spend. This concept in case of thepharmaceutical industry has a twist since the customer (the doctor) is not the actualconsumer (the patient) of the product. Thus there are ethical issues involved in rewardingpoints in return for prescriptions. One cannot have a reward programme based on theredemption of these points. One approach would be to set the whole programme based onthe classification into which the doctor falls. Thus the lowest rung would be restricted tothe basic of activities. The number and the level of activities would increase as theimportant of the doctor grows. A branded programme can be started for the mostimportant doctors. It is important that it is clearly defined at the onset what will be theobjective of the programme and more importantly convey the exclusivity of theprogramme. The doctor has to be made to realize that he is the ‘chosen one’. All activitiesand inputs should only reinforce this communication. The success of such a programmehinges on making the doctor covet the membership to the programme. Thus a continuousmonitoring is required of the returns generated from the doctor. If they fall below apredefined limit then the doctor can be downgraded and his privilege reduces.Direct MarketingIt is a valuable tool for effective CRM. Since a captive database has been put into place itcan easily lend itself to direct marketing initiatives. As the primary fields captured are thecontact address a program through mail is easiest to accomplish. Brand awarenessmailers, new launch, contests all can be conducted by mail. Information technology hasseveral advantagesPrepared by: Milan Padariya Page 12
  • “Building Relationship with Doctors for Effective Marketing” It is very cost effective: A large audience can be touched at a relatively cheaper cost ascompared to personal selling. It can be targeted and specific to the right target audience interm of specialization or geographical area.It is measurable with use of reply devices one can immediately gauge the efficacy of acampaign. In fact since the target audience for a brand is usually sharply defined in termsof their specialization e.g. An allergy product to ENTs, Dermatologists and GPs, theresponse received is usually much higher than that accepted as a norm in other industries.A response of 15-20% can be easily achieved through such communications. Most of thepharmaceutical companies have realized the advantages of this mode of communication.The primary rationale is to save the time of the field by promoting the low involvement(for the doctor) products, promote brand recall for a new product, exploit alternativeavenues for brand promotion etc. Apart from mail other DM media like telemarketingand web have also been tried. While telemarketing has been tried for promoting newlaunches to get instant feedbacks the web has still to achieve its potential. The PCpenetration in India is still very low which handicaps the growth of this mode. Using thee-mail to correspond and interact with doctors is being tried. It is especially useful fortargeting higher specialties, which is more technology savvy and information hungry.Call CentreIn case of chronic therapies like hypertension, serious conditions like AIDS, the callcentre provide the answer.The medium lends an ear to three types of customersDoctors, who would like to more about the drug profile, discuss a specific case; ask for areference on use in a specific condition.Patients who seek counseling, the nearest physician or chemist shop. The telephoneprovides anonymity to the caller especially when discussing taboo subjects.Retailers asking for pricing details, product availabilityPrepared by: Milan Padariya Page 13
  • “Building Relationship with Doctors for Effective Marketing”With the advent of paging companies who can provide a single number nationwide,facility of leased lines from DOT and the toll free numbers in select metros this mediumis set for take-off. There are certain factors to be borne in mind whilst setting up a callcentre. The sheer diversity of the country means that callers would speak differentlanguages and may not be comfortable with English. This is especially relevant if thecentre would cater to calls from patients. Also doctors would not prefer their queriesbeing answered by a lay person without any medical knowledge. Thus most medicalqueries have to be escalated to a qualified physician who responds to a doctor’s querieswithin a set time limit.These limitations notwithstanding, the call centre is an excellent medium to come closerto the customer and pharmaceutical industry is realizing the potential.Prepared by: Milan Padariya Page 14