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Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions
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Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions

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With the advent of new technologies, there has been a revolutionary change in the way consumer educate themselves and make critical purchasing decisions. These changes are also affecting highly …

With the advent of new technologies, there has been a revolutionary change in the way consumer educate themselves and make critical purchasing decisions. These changes are also affecting highly regulated industries such as bio-pharma, where companies are rapidly adopting latest technologies to enhance their Consumer Marketing Research capabilities in Market Research field. Consequently, they are using novel tools and techniques to better understand consumer behavior.
In fact, industry experts believe that this trend will not only help bio-pharma organizations in conducting deeper & faster research but, will also help them in increasing their efficiencies.

Best Practices, LLC conducted this benchmarking study to identify current and evolving approaches for qualitative and quantitative consumer marketing research techniques and tools in pharmaceutical and medical device companies. This research examines the changing landscape for qualitative and quantitative research. It also reviews which quantitative research approaches market research leaders are currently utilizing most and why.

This study includes data on two segments: pharmaceutical companies and the Total Benchmark Class.

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  • 1. Innovation in the Pharma Industry: Market Research Tools, Technologies and Approaches to Improve Consumer Interactions Best Practices, LLC Strategic Benchmarking Research BEST PRACTICES, ® LLC
  • 2. Table of Contents I. Executive Summary pp. 4-21  Research Overview pp. 4  Universe of Learning pp. 5  Innovation Widely Dispersed but Thinly Seeded pp. 6  Key Findings pp. 7-20 II. Universe of Learning: Key Demographics of Participating Companies pp. 21-23 III. Innovation in Marketing Research Approaches pp. 24-26 IV. Innovation in Marketing Research Tools pp. 27-72  Using Innovation to Update the Use of Analysis Tools for Key Market Research Activities V. Marketing Research Trend Changes – Qualitative Trends pp. 71-76 VI. Marketing Research Trend Changes – Quantitative Trends pp. 77-82 VII. Emerging Market Research Tools in Pharma Sector pp. 83-94 VIII. Communicating with Consumers pp. 95-99 IX. Trends in Consumer Communication pp. 100-105 BEST PRACTICES, ® LLC
  • 3. Table of Contents X. Evaluating Direct-to-Consumer Marketing pp. 106-108 XI. Lessons Learned and Pitfalls to Avoid pp. 109-113 XII. Appendix pp. 114-125 XIII. About Best Practices, LLC pp. 126 BEST PRACTICES, ® LLC
  • 4. Research Project Objectives, Methodology & Results Best Practices, LLC conducted this cross-industry benchmarking study to identify current and evolving approaches for consumer marketing and marketing research techniques and tools. This study contains extensive qualitative data. Study Overview Research Objective: New technologies are transforming how consumers educate themselves and make critical purchasing decisions. Correspondingly, across industry sectors the consumer marketing playbook and marketing research analysis approaches are evolving to better identify winning tools and techniques. This cross industry study addresses topical issues that include new media for interacting with consumers, new qualitative techniques for insight mining and new quantitative techniques for research data analysis.  Methodology: Best Practices, LLC engaged 59 Market Research leaders at 58 companies through a benchmarking survey instrument. Eighteen participants were from Pharma industry. In addition, research analysts conducted executive interviews with eight selected respondents to collect qualitative data and insights. Topics Included  Innovativeness of MR Tools for:  Forecasting  Patient Flow Mapping  Positioning  Segmentation  Brand Research  Concept Testing  Brand Awareness  Customer Insights  Direct-to-Consumer  Tactic Testing  Target Product Profile Testing  Utilization of Emerging MR Tools  Effectiveness of Consumer Marketing Tools  Best Practices, Pitfalls & Lessons Learned BEST PRACTICES, ® LLC
  • 5. 59 Benchmark Participants Represent Nine Industries Fifty-nine benchmark survey respondents from 58 companies participated in this study. More than 40 percent are directors, VPs, and C-level and a third are manager level. The rest fall under “other.” The participants represent more than nine industries with pharma the largest segment at 30%. To add qualitative depth to the study, eight interviews were conducted with market research leaders. Benchmark Class Pharmaceutical Benchmark Class Non-Pharmaceutical Benchmark Class R2Business Solutions Sekisanchi LLlC (n=18) (n=41) 5 Copyright © Best Practices, LLC BEST PRACTICES, ® LLC
  • 6. Innovation Has Many Faces in Consumer Market Research The “Innovation Insights Story” in Consumer Marketing Research reveals ongoing evolutionary change – rather than revolutionary disruptive technology change. Innovation is broad reaching, incremental and assumes various forms through tools, technology, process improvements and hybrid adaptations of proven practices. 1. Most Companies Rate Themselves Low on Market Research Effectiveness & Innovation 6. Seed New Innovation Projects Where It Most Benefits Your Existing Brands & New Products 5. Innovation Hot Spots Exist In Customer Flow Mapping, Segmentation & Concept Testing. Innovation Has Many Faces: Process, Tools, Hybridization, Deeper, Faster & Cheaper Examining Innovation Across Consumer Marketing Research Landscape 4. No Single Company Has Cornered the Market on M.R. Innovation 6 Copyright © Best Practices, LLC 2. Innovation Is Evolutionary / Incremental Across the Market Research Process 3. Innovation Is Widely Dispersed But Thinly Seeded: 80% Of Venues Are Seed Beds With 5% to 12% of Companies Innovating At Most Research Milestones BEST PRACTICES, ® LLC
  • 7. Qualitative Key Findings: Mobile Research and Online Tools The following key findings and insights emerged from interviews and qualitative survey responses in this study.  Improving Report Presentations Enhances Engagement: Finding innovative or fresh ways to present reports/studies – such as formats like Prezi or the use of dynamic visuals – is an important way to keep staff and internal stakeholders engaged.  Mobile Research Will Be a Key Tool for Market Research in the Future: Mobile research, with its rapid delivery of point-of-care and point-of-sale data, will be an important tool for marketing research in the future. Seventy percent of the Pharma Segment is using mobile research either sometimes or frequently.  Online Communities Offer Bottomless Pool of Consumer Insights: Online communities are a valuable qualitative source of consumer insights and yet the tool appears to be underutilized. In the Pharma Segment, 50% said they were using online communities sometimes while the other half said they don’t use them at all.  Social Media Listening Is Another Underutilized Tool: Social Media Listening is another underutilized tool that can inform market researchers across many topics, including product positioning, brand awareness and customer insights. In the Pharma Segment, 40% said they don’t use it. 7 Copyright © Best Practices, LLC BEST PRACTICES, ® LLC
  • 8. More than 9 Industries Participated in Innovation Study The benchmark study group was anchored by biopharma companies, which made up 30% of respondents. Healthcare (non-manufacturers), agencies, telecommunications, services, consumer goods, finance and electronics companies also participated in this marketing research innovation study. Q1. Please identify which industry sector your company represents Industry: *Others:  Utilities  Education  Postal Other, 17% Pharma, 30% Telecommunications, 5% Services, 15% Finance, 2% Healthcare, 10% Electronics, 2% (n=59) Marketing/Market Research Agencies, 15% Consumer Goods, 3% 8 Copyright © Best Practices, LLC BEST PRACTICES, ® LLC
  • 9. Staff, Budget & Other Factors Impede Pharma Pharma companies identify the same top obstacles – Insufficient staffing and budget plus “other” factors – to MR effectiveness. Insufficient staffing is clearly seen as the principal issue. Interestingly, the overall benchmark class sees over-reliance on quantitative data to be an issue – but pharma sees over-reliance on qualitative data as a larger obstacle. Again, Pharma sees lack of innovation as much less of an obstacle than the class at large. Q. If you do not feel you have a highly effective market research organization, rate what factors are impeding your effectiveness? Effectiveness Obstacles (Pharma): n= 14 14 13 14 14 14 14 * 8 % of Respondents 9 Copyright © Best Practices, LLC *Other Major Obstacles Cited: • "Company does not place much emphasis on marketing" • "Cultural barriers" • "Inexperienced / poorly training people managers" • "Not enough standardized practices/protocols in place that would enable capacity for insight/ innovation" • "Too many low value requests required by internal customer base" BEST PRACTICES, ® LLC
  • 10. Innovation Topography Varies Widely across MR Landscape Market research innovation is not only about new “tools.” This Innovation Topography Map shows that Methodologies and Tools innovation (illustrated in blue) often outpaces new tools. Some activities – such as customer flow mapping, segmentation and concept testing are fertile grounds. In contrast, tactic testing and target product profile testing are sterile from an innovation perspective. Percentage of Respondents Rating Each Tool “Innovative” for Each Category: Methodologies and Tools Data Collection Analysis and Interpretation Reporting & Communicating 25% 20% 15% 10% 5% 0% Forecasting Patient Flow Positioning Segmentation Brand Mapping Research Concept Testing 10 Brand Awareness Research Consumer Insights DTC Tactic Testing Target Product Profile Testing for Pipeline Products BEST PRACTICES, ® LLC
  • 11. Quant and Qual Working Together Create Synergy Innovation in market research doesn’t have to be a new tool or methodology – it can come from finding ways to combine work streams to reduce job timelines. One participant thought having qual and quant teams work closer together would accomplish that goal. “We do see where qualitative is starting to inform quant where it didn’t before. I’ve been in the offices of most major market research firms in the world and there’s usually a keypad door separating the qualitative teams from the quantitative teams. We’re seeing that change with online ‘qual’…we’ve got the technologies that allow us to bring people out of a large segmentation study, a customer satisfaction survey, and bring into a qualitative discussion for a deeper dive with them. That’s allowed the quant-qual teams to co-mingle on these projects. It is unbelievably common where you do a segmentation study and find some unexplained thing and go through the keypad door and say, ‘Qual team here’s something to go explore.’ Well that can take months…today we’re radically reducing those timelines by giving them technology that the quants can run themselves or that makes the quant and qual teams work together very closely.” – Chief Innovation Officer Qualitative Component Merging to provide more realistic Insights 11 Copyright © Best Practices, LLC Quantitative Component BEST PRACTICES, ® LLC
  • 12. Pharma Segment: Utilization of Emerging Tools Uneven The pharma segment appears to be building up its comfort level for some emerging market research tools like mobile research, web-use tracking, social media listening and online patient communities. At least half of the pharma participants said they use all these tools at least sometimes. Meanwhile, gamification and geotracking were not used at all. Q. Please Indicate how often you use these emerging marketing research tools when targeting patients/consumers: Emerging Market Research Tools (Pharma): Don't Use Use Sometimes Use Frequently n= Mobile Research: 30% 50% 20% 10 Web-Use Tracking: 30% 50% 20% 10 Listening/Mining Social Media: Online Patient/Consumer Communities: 40% 60% 50% 10 50% 10 Gamification: 100% 10 Geotracking: 100% 10 % of Respondents 12 Copyright © Best Practices, LLC BEST PRACTICES, ® LLC
  • 13. TBC Segment: Cost and Regulations Stop DTC Use Not surprisingly, the cost and regulatory hurdles that come with Direct-to-Consumer marketing were cited as the two principal reasons for not employing campaigns. Q. Please note all the factors that informed your rationale for not employing a DTC campaign for a new product: Reasons for NOT USING DTC: Not Important Consideration Important Consideration Too Costly 22% Regulatory hurdles or restrictions 21% DTC channels weren't targeted well enough Niche/small specialty market Amount of fair balance required * Other Condition doesn't support self-diagnosis 22% 18 56% 32% 47% 35% 29% 28% n= 39% 38% 31% 75% 59% % of Respondents 13 Copyright © Best Practices, LLC 19 17 *Other: •"Don't do DTC" •"Not my segment 33% 18 of the market" •"The company does not currently 31% 16 support this - it has been suggested" 13% 13% 8 •"We don't really market products 29% 12% 17 directly to consumers" 35% BEST PRACTICES, ® LLC
  • 14. Pharma Segment Doesn’t Combine MR Techniques The practice of combining market research tools or techniques appears to be even less prevalent in the pharma sector. Only 11 percent of participating pharma companies said they use that approach. Q. Have you employed innovative combinations of existing market research tools or techniques that have produced valuable insights (such as merging survey research with online behavioral tracking)? Innovative Hybrid Approach (Pharma): Yes, 11% No, 89% (n=9) 14 Copyright © Best Practices, LLC BEST PRACTICES, ® LLC
  • 15. About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 www.best-in-class.com 15 Copyright © Best Practices, LLC BEST PRACTICES, ® LLC

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