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Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
Social Media In Pharmaceuticals Acg
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Social Media In Pharmaceuticals Acg

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  • 1. 1Ananth Consulting Group (ACG)October, 2010 Ananth Consulting Group (ACG) www.ananthconsulting.com Digital Marketing in Pharmaceuticals October 17, 2010 Ananth Consulting Group Social media in pharmaceutical industry... …a changing paradigm By Rajaram Iyer October, 2010 Digital Marketing: New BEAT in pharmaceutical marketing; can you hear it??
  • 2. 2Ananth Consulting Group (ACG)October, 2010 Social Media, What? What should be my social media strategy? What are various companies doing in digital marketing? What has worked in social media so far? What are the regulatory guidelines?
  • 3. 3Ananth Consulting Group (ACG)October, 2010 Emerging challenges for pharmaceutical brand managers  The diversity of media channels through which Pharmaceutical companies can reach out to physicians and patient groups is fast changing and expanding  These forces are challenging the effectiveness of traditional marketing strategies that involved providing free drug samples, publishing drug details in journal articles or opinion leaders, offering gifts with company logos, and sponsoring CME, most of which was done through pharmaceutical company’s medical representatives  Physicans and patients are muti-tasking and want easy access to personalized information in short duration of time  Patients are relying on ‘wisdom of crowds’ to make their purchase decision  The promotional vehicles available to medical reps are increasingly being regulated (PhRMA Code 2008) and the average time of interaction between them and physician is reducing  Internet has become a leading source of healthcare related news, information and education for physicians and patients A number of top-selling drugs are going off-patent The gorwth rate of the global pharmaceutical sector is going to decelerate. According to IMS, the sector is expected to grow at 3-5% till 2013 The spate of mergers and acquisition is likely to continue, driven by the need to balance prescription vs. OTC portfolio, maintain operating margins and top line growth in lieu of drugs going off-patent Governments in the US, EU and Japan are taking steps to lower healthcare costs and promote generics substitution The rate of new drug development has declined over the last few decades. Over half of the new drugs to be launched are ‘Orphan’ drugs targetting specialists New market access strategies are being tested between pharma companies and payers/regulators to reduce pharma costs
  • 4. 4Ananth Consulting Group (ACG)October, 2010  Social media has opened a whole new way of communication and has connected the world in multiple ways  Earlier, in pharmaceutical industry, representatives were the only channel between the pharmaceutical companies & doctors, and there were no direct link between companies and patients, but now with social media channels there are multiple options available and most importantly the communication process has become two way as against one way in past  So far, the use of social media tools in pharmaceutical industry has been limited, however this area is evolving and is growing rapidly  Initial results of use of social media has been encouraging and this trend is likely to grow in future − The current success of various social media tools have been driven primarily by few big companies, which have used them effectively  Big concern for the limited usage of social media in pharmaceutical industry is lack of regulatory guidance from USFDA or other regulatory bodies around the world  Lot of companies are sitting on the fence and would jump into the bandwagon once the regulatory guidelines are clear  Patients with rare/niche diseases have embraced social media tools effectively than patients with common disorders Executive Summary Digital media eroding the power of institutions
  • 5. 5Ananth Consulting Group (ACG)October, 2010 Digital marketing is “marketing communicated thru various digital channels such as internet, email, social networking sites, mobile etc” As per a report by Econsultancy and ExactTarget, 70% respondents (companies) were planning to increase their budget for social media activities such as Facebook, Twitter etc Social Media: Changing the marketing landscape Blogs VideoHealth Portals Social Networking Sites
  • 6. 6Ananth Consulting Group (ACG)October, 2010 As Per „en.wiktionary.org‟, blog is “website that allows users to reflect, share opinions, and discuss various topics in the form of an online journal while readers may comment on posts. Entries typically appear in reverse chronological order.” Blogs, in pharmaceutical industry have used by various stakeholders for multiple reasons To share their opinion about drugs, adverse events, disease etc and also to know of good treatment option for very rare disease. Patients have used blogs effectively to connect with fellow patients to know how to manage their disease effectively To share their views on various diseases and treatments; this also helps them in connecting with their patients better To promote their brand and also to disseminate information about the medicines, diseases and various programs To share their views on various topics Patients Physicians Pharmaceutical Companies Individual Experts Blogs have given power of expression to all the stakeholders and has become an important mode of communication Blogs (1/2) Power of expression
  • 7. 7Ananth Consulting Group (ACG)October, 2010  Blogs have reduced the divide which existed before between various stakeholders and have also done a good job in connecting the patient community. Blogs have opened multiple channels of communication and have given the power of expression to various stakeholders  Pharmaceutical companies are using this medium to promote their products and other programs around disease management. Companies not only blog about their product but also use this as a tool to establish better relationship with the patient community. −Good example of this is “more than medicine” blog by GSK which features articles and expert opinions about various topics of general health and wellness −Another example is the BTW blog by JnJ, which provides information about various JnJ initiatives and also some articles about general wellness  Patient community is also using blogs effectively to communicate and connect with other patients with same disease −Diabetesmine.com and tudiabetes.org are good examples of effective blogging by patients where they solve each others problem and help in dealing with diabetes Blogs (2/2) Power of expression • Share views in an unbiased way • Be upfront and honest ; share adverse events also • Its better to promote a cause rather than promoting products Few Do’s
  • 8. 8Ananth Consulting Group (ACG)October, 2010 Social Networking Sites (1/2) Promotion thru networking Social networking sites such as facebook, twitter etc have also been a part of digital strategy for the pharmaceutical industry. These websites have been used to raise and spread awareness. Facebook is an effective medium to spread awareness especially amongst the youth as most of them are part of some kind of social media website and use them regularly Facebook has been used effectively by Merck (Gardasil) and Johnson & Johnson (JnJ) (awareness about ADHD-Attention Deficit Hyperactivity Disorder) to promote their respective brands Twitter is a useful tool in disseminating various updates about companies. Twitter so far has been used primarily as a corporate promotion site as against a site to promote brands Social networking sites such as facebook and twitter have given a new avenue for pharmaceutical companies to communicate with their audience. Interestingly, this communication is a two way process, as against one way in past
  • 9. 9Ananth Consulting Group (ACG)October, 2010 Social Networking Sites (2/2) Promotion thru networking  Big reason regarding the popularity of Merck‟s (take a step against Cervical cancer) and JnJ‟s(ADHD Moms) facebook page is that they stand for the disease and not for the brand. People want to get associated with a cause and not brand  Another reason is that these pages share lot of practical tips about disease management and most importantly, these tips come from people who are either the patients or caregivers, so these tips have really worked with someone  These sites also provide a platform to discuss various issues regarding the disease management  These websites also post success stories of patients and that acts as a big motivator  An area which is under active debate is „reporting of adverse events‟. Most people believe that pharmaceutical companies will not be very upfront in reporting adverse events with its drugs. There are no regulatory guidance on this and hence most of the companies are waiting for that clarity
  • 10. 10Ananth Consulting Group (ACG)October, 2010 Health Portals Healthy Information Health portals provide free information of various types related to various diseases. Portals like webmd, revolution health, everyday health etc provide basic information about the disease, treatment options, scientific guidelines etc. In addition to other features most of these websites have a feature where patients can blog about their condition, their experiences with various drugs etc. Health portals have become primary source of information for lot of people looking for health information online There are certain niche health portals which are meant for patients suffering from few rare disorders. Patientslikeme.com is one such example which provides information about diseases such as Parkinson‟s, Multiple Sclerosis, Fibromyalgia etc. Analytics from these health portals have also become sought after, as the data here is real time and is generated by the patients
  • 11. 11Ananth Consulting Group (ACG)October, 2010 Video Channels “A picture is worth a thousand words” Online video sharing sites have also been utilized by pharmaceutical companies for promoting . Sites such as youtube have drawn maximum attention. Pharma companies have used this channel to promote their products, clinical trial results etc. Companies use youtube to create their own mini channel (just like a big TV channel which airs different programs) which provides information about the company and its products, pipeline status, patient stories, videos about the various diseases etc. This channel concept looks good as it provides a platform to spread awareness about the disease in a more neutral manner Johnson and Johnson has a dedicated health channel on youtube which provides various contents for healthy living. It also posts success stories of patients. Sanofi Aventis TV is another channel where Sanofi is trying to promote information about the company and its wide range of patient-focused businesses, social responsibilities, and employee activities
  • 12. 12Ananth Consulting Group (ACG)October, 2010 Social Media: New chapter in pharmaceutical marketing (1/2)  Use of social media is relatively new and is an evolving area amongst pharmaceutical industry. Various companies are trying different things to promote themselves  Pharmaceuticals companies started social media activities for promoting their brands, but lately the trend is shifting towards engaging and empowering the patients. Most of the pharmaceutical companies are now encouraging open discussion about the disease treatment etc. − Human touch: Most of the blogs /twitter posts (tweets) by pharmaceutical companies are actively managed by individuals where patients and caregivers can ask questions about the disease and treatment options  There are multiple channels being tried in digital marketing such as twitter, facebook, blogs, etc. Some of the companies have adopted an integrated approach  Some of successful campaigns in social media has been: − JnJ‟s blog BTW − Merck‟s and JnJ‟s facebook page for Cervical Cancer and ADHD − Youtube channel for Novartis, Sanofi and JnJ  Patients are sharing lot of information on health portals such as patientslikeme.com etc and hence social media analytics is likely to become big in future − Patients share lot of data about disease management, efficacy and safety of various drugs, adverse events profile etc and hence analytics of this data will be sought after by both the payors and pharmaceutical companies − Payors will use this data to decide reimbursement and coverage while pharmaceutical companies will use this data for coming up with improved formulation/therapies
  • 13. 13Ananth Consulting Group (ACG)October, 2010 Social Media: New chapter in pharmaceutical marketing (2/2)  Lack of regulatory guidance / guidelines poses a big challenge for companies to adopt and embrace social media strategy. We expect more companies will join social media platform, if regulatory guidelines are clear − Pharmaceutical companies‟ biggest concern is reporting of adverse events and they are seeking clarity around the amount of disclosure  Social media strategy is not just about having a corporate account in twitter, facebook etc, but it is way beyond that and should focus on engaging the patients  Social media can be a great customer service tool, so please use it!
  • 14. 14Ananth Consulting Group (ACG)October, 2010 Social Media: Future trends (1/4) Companies will promote their products directly to patients and insurance companies/payors; role of representatives will be reducedTrend No1 Internet will replace physicians as the primary / first source of information about the disease. Patients will have much richer conversation with their doctors regarding their treatment approach Trend No 2 Social media analytics will become big and insurance companies will start using this data to decide coverage and reimbursement Trend No 3 Newer ways of DTC marketing will evolveTrend No 4 One way to two way communicationTrend No 5
  • 15. 15Ananth Consulting Group (ACG)October, 2010 Social Media: Future trends (2/4) As digital marketing and social media evolve, pharmaceutical companies will start focusing their promotional activities directly towards patients and will enable direct communication channel with patients. In terms of other stake holders for pharmaceutical companies, insurance companies have also emerged as a major stake holder and pharmaceutical companies will direct their communication to them also. As patients will directly get lot of information, both, about the disease and treatment options, role of physicians will become limited and hence pharmaceutical companies would reduce their spend on traditional methods of marketing. On the other hand, physicians will also get lot of information thru the internet and hence the role of medical representative will be marginalized. Additionally, the move away from blockbuster model will also reduce the need for sales force. Overall, in future, social media and digital channels will play a big role in communication and will reduce the impact of traditional ways of communication. Companies will promote their products directly to patients and insurance companies; role of representative will be reducedTrend No1
  • 16. 16Ananth Consulting Group (ACG)October, 2010 Social Media: Future trends (3/4) With the ease of availability of quality data (to patients) both about the disease and management, patients will be more involved in deciding the treatment option and also start playing a much bigger role. The conversation between physicians and patients will go to the next level. Moreover, with patients paying additional co-pay for newer therapies, they will take substantial control over their treatment decision. With patients at the helm of affairs, it will become a necessity for pharmaceutical companies to engage them thru social media. Internet will replace physicians as the primary / first source of information about the disease. Patients will have much richer conversation with their doctors regarding their treatment approach Trend No 2 With lot of data being generated thru patient community, social media analytics will play a center stage role in the future and insurance companies and PBMs (pharmacy benefit manager) will start using this data to decide coverage and reimbursement. Websites such as patientslikeme.com have lot of patient data and is a good source to see what are the common side effects of a drug , what's the general perception about the safety and efficacy etc. In future we expect lot of such data would be available live, generated by the patients, and payors will use this data to decide the reimbursement status. Social media analytics will become big and insurance companies will start using this data to decide reimbursement Trend No 3
  • 17. 17Ananth Consulting Group (ACG)October, 2010 Social Media: Future trends (4/4) As communication thru digital media evolves, newer ways of communication will develop. Digital media has evolved in last 5 years with lot of social networking tools being utilized. Currently, only few social media tools are being used by pharmaceutical companies. As the awareness increases, newer ways of DTC will evolve and shape up the market dynamics. Most of the current social media tools used by pharmaceutical companies such as facebook, blogs, twitter etc will become overused in near future and companies will have to look for newer and innovative ways to engage the audience. Newer ways of DTC marketing will evolveTrend No 4 In past, pharmaceutical companies were communicating directly with the physicians and there was no way for them, to both, communicate directly and also to take feedback from the patients. With the advent of social media tools, companies and patients are able to communicate with each other. In fact, with social media, multiple channels of communication have opened between all the stake holders. Patients are now able to share their data thru blogs, health portals etc and both pharmaceutical companies and payors are listening. One way to two way communicationTrend No 5
  • 18. 18Ananth Consulting Group (ACG)October, 2010 Social Media: Few questions?? Will social media improve the quality of healthcare; will this reduce the overall healthcare cost? What restrictions will regulatory agencies put? How do I measure my ROI (return on investment)? What changes should I do to my organization structure to participate in social media?
  • 19. 19Ananth Consulting Group (ACG)October, 2010 About Us ANANTH CONSULTING GROUP is an emerging business consulting firm which provide answers to various business problems of global pharmaceutical and other life sciences companies. We provide various market research and competitive intelligence support activities which enables you to make informed decisions. Please visit www.ananthconsulting.com for more information Commercial Strategy Support TA/Pipeline AnalysisCommercial Strategy Support Project ManagementPartner identification
  • 20. 20Ananth Consulting Group (ACG)October, 2010 This document is a property of Ananth Consulting Group and should not be reproduced or published without the permission of Ananth Consulting Group. For Details Contact: Rajaram Iyer President – Ananth Consulting Group D 305 Parsvnath Prestige Sector 93A, Noida 201304 UP, India Ph: +91 9818723030 Email: rajaram@ananthconsulting.com www.ananthconsulting.com All the logos, trademarks, signs, symbols, websites, screenshots used are property of their respective owners.

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