Integrated Market Research: The Intelligence Behind Commercial Transformation

• Cognizant 20-20 InsightsIntegrated Market Research: The IntelligenceBehind Commercial TransformationTo perform effectively in today’s challenging economic conditions,pharma companies are weaving primary research, secondary dataand analytics into an integrated model, yielding insights that drivenew product development, influential messaging and optimal spend. Executive Summary • Optimal spend through well-defined segmentation and channel alignment. Accomplishing more with fewer resources is the challenge life sciences companies face today, • More flexibility and lower fixed costs through whether they are cutting costs, increasing virtual teams. innovation or maximizing revenues from maturing product portfolios. Meeting that challenge suc- Leading life sciences companies today are already cessfully requires using new approaches to reaching these goals through integrated market commercial operations, sales and marketing that research. rely on smart, well-informed decision-making. In The Integrated Market Research Model turn, pharma companies must fully capitalize on the huge volumes of data available to them to With limited resources that must be used as effec- help segment their targets, match them to optimal tively as possible, it’s imperative for life sciences channels and develop effective messages. companies to have clear, defensible answers to these questions: Achieving these objectives means pharma companies must adopt a highly transformed, • What are the targets to which we should be directing our resources? integrated approach to using primary market research, secondary data sources and analytics. • Which traditional and non-traditional channels While each of these disciplines provides data on do our key targets prefer? their own, they are even more powerful in com- • What messages will most influence those bination, as each discipline can inform the other, targets? yielding robust insights that can drive: • Where does our product fit in the current • New product development, as well as extend competitive landscape? the life of maturing or niche brands. • What clinical endpoints will drive prescriptions? • More influential messaging to influence behavior. cognizant 20-20 insights | june 2012

• What data is required to measure the effec- multichannel campaigns and virtualizing brand tiveness of channels and messages during a management. campaign? Smarter Segmentation• How will the return of a specific campaign be Companies often use physician-level prescrib- measured? ing data from secondary sources to determineAnswering these questions has become a segments. This secondary data presents acomplex problem, with the expansion and growing snapshot of what is happening, such as theinfluence of digital channels alongside traditional highest prescriber in a class, early adopters vs.marketing channels, as well as marked differenc- laggards, etc. Secondary source data, however,es in which channels specific audiences prefer. cannot explain why a specific physician or group of physicians is prescribing or not prescribing aWhile a great deal of secondary data is available to product. Primary research can uncover thoseprovide information on these behaviors, this data “whys” but only for a limited sample size.offers little in the way of insights to help pharmacompanies understand why a target group is Knitting the two types of research together viabehaving a particular way or which channels it latent class analysis means that attitudes can beprefers. Making assumptions about behaviors attached to actual behaviors. That data can thenand channels based purely on secondary data can be projected onto a larger universe to determinelead to inappropriate tactics, missed targets and segment membership.wasted resources. Integrated secondary data and primary researchDeriving insights about behaviors and prefer- can offer a more granular analysis of segments,ences from these “big data” sources requires including which channels the segment prefers andthat they be combined with data garnered from why, as well as stronger conclusions about whatcarefully scoped primary market research. motivates segment behaviors. These insightsPrimary research can help pharma companies enable the pharma company to target segmentsunderstand the relationship between attitudes via the most effective channels and createand self-reported behavior. However, far more customized messages more likely to resonaterobust insights can be derived from combining with a segment’s attitudes.primary market research data with secondary Sample Optimizationbehavioral data. By integrating these sources,we can get a clear understanding of the relation- An inventory theory-based approach is the mostship between actual behavior and attitudes and effective for sample optimization. This analysisproduct perceptions. requires determining “habit rate” and “critical rate.”This approach is particularly useful in projectssuch as segmentation, where it is important to Typically, prescribing data — supplemented byproject the findings derived from the market secondary data, such as longitudinal patientresearch sample onto the universe of prescrib- data — is used to derive optimization parameters.ing physicians. Leveraging insight about which However, these estimates can have a largeattitudes and product perceptions are driving margin of error, leading to over-distribution ofprescribing within a segment allows sale repre- samples, potentially hurting prescription rates.sentatives to better target the physicians they Adding primary research yields more accuratecall on and tailor messages to meet their specific and cost-effective “habit” and “critical” rates.needs. By leveraging primary market research to obtain these parameters, pharma companies canSharper Insights Support New construct the sample frame, allowing them toCustomer Engagement Models develop optimal samples not just for the target universe, but for specific segments within thatIntegrated market research provides pharma universe, as well.companies with powerful, detailed insights toapply to a wide variety of activities across the Multichannel Optimizationcommercial value chain. In brand management Using a variety of channels for a campaign —— and sales and marketing activities in particular personal and non-personal, traditional and digital— integrated market research is especially — can be cost-effective, but only if the channelseffective in segmentation, sample optimization, cognizant 20-20 insights 2

match the top preferences of their targets. Deter- be most effective for each segment. Finally, itmining the best channels maximizes the exposure wanted to measure the effectiveness of its digitalof content and messaging, promotes long-term activities.loyalty and engagement with targets, and ensuresmarketing spend is well allocated. Solution: The company collaborated with a third- party services provider to apply an integratedUnderstanding these preferences means market research methodology. Some secondaryexamining the increasing diversity and volume data existed about the digital usage of the targetedof secondary data available for many digital physicians; however, that data was sparse and didchannels, alongside primary research about not provide preference insights. Primary researchhow digital users differ in their embrace of and identified physician digital usage patterns, corre-preference for these channels. A latent class lating channel use with professional activities.segmentation combining these disparate datasources is a logical first step in launching a digital Together, the secondary data and primarycampaign. research enabled the company to create narrower, more focused segments, with a comprehensiveAnalytics measure the effectiveness of all understanding of each segment’s digital prefer-channels and messages as the campaign unfolds ences. That allowed the company to customizeso tactics can be adjusted in near real-time. tactics to each section, with less expensive digitalOur experience has demonstrated that primary channels aligned with less frequent digital usersmarket research inputs are a valid proxy for and higher-dollar tactics put against higher-channels where the data is poor or unavailable value targets. Analytics monitored effective-when creating ROI models. ness against leading and lagging indicators, with follow-up primary research providing furtherRealizing Revenues from Noncore Brands insights into the ROI of specific channels.Insight is critical to realizing more revenues fromunlaunched, niche or otherwise “noncore” brands Situation: Repositioning an Establishedin a portfolio. Channels, tactics and spend must Drug for New Indicationsbe carefully aligned with a brand’s profit potential A leading pharmaceutical company had receivedto ensure cost-efficient program management. FDA approval to market a well-established drugPrimary research can uncover perceptions about for new indications. The company needed toexisting products and competitors, providing identify high-value physicians in the new special-insight into whether and how to reposition and ized markets and determine their channel prefer-message a brand and the most effective tactics ences, as well as what messages and positioningand channels for doing so. would resonate with them.Integrated Market Research in Action Challenges: Strong competition from existingLeading pharma companies are already drugs in the new treatment areas made itcombining primary research, secondary data imperative for the company to validate thesources and sophisticated analytics to support commercial value of targeted physicians,new customer engagement models. Here are two understand how they made prescribing decisionsscenarios in which companies are benefitting and know their attitudes toward brand-position-from this approach. ing messages. Historic physician-level prescribing data, though plentiful, could not provide theseSituation: Planning a Multichannel detailed insights.Digital Campaign Solution: Working with a partner skilled inA life sciences company was planning a campaign research and analytics, the pharmaceuticalfocusing on digital channels with minimal sales company integrated a wide variety of secondaryrepresentative support. data sources with primary market researchChallenges: For the campaign to succeed, the designed to understand and link physiciancompany had to identify the relevant physician attitudes and behaviors.segments in terms of digital media usage and By using latent class analysis, the partner providedpreferences. It then needed to understand which the pharmaceutical company with fully integratedchannels, tactics and custom messages would behavioral and attitudinal data, enabling the cognizant 20-20 insights 3

creation of sharply delineated physician segments and data that enable pharma companies to createin each of the new indication areas. The granular, more effective messages and send them to therobust data enabled the company to assess its right targets, through the right channels, at theforecast data with confidence and develop brand right time and place.positioning aligned with each segment’s key pre-scribing drivers. Collaborating with a skilled, experienced third party to virtualize the market research spectrumThe data also guided the pharma company’s also increases the speed with which insightschoice of channels, enabling it to optimize the use are delivered, while lowering the fixed costsof its human and financial resources in entering associated with research.the new markets. Its ability to create competitive advantage, evenAn Emerging Best Practice as market realities continue to shift, makesWeaving primary research, secondary data and integrated market research an emerging bestanalytics into an integrated market research practice, one that leading companies will quicklymodel helps pharma companies perform more adopt to support new commercial and customereffectively in today’s challenging economic engagement models.conditions. This technique helps uncover insightsAbout the AuthorStephanie D. Foye, Market Research Practice Leader in the Enterprise Analytics Practice, leads aglobal team of market research professionals, both qual and quant, as well as a desk research team.Stephanie is particularly adept at synthesizing data across disparate sources to garner deeper insights.She is knowledgeable about higher level analytic techniques, yet pragmatic in her approach to researchdesign and analysis. With 15 years of experience in the healthcare sector, Stephanie has knowledge ofall the major therapeutic areas and many of the niche markets, as well. She led the Market StrategiesDivisions at Bruskin/Goldring and Audits and Surveys Worldwide, leading a team that executed researchthat supported a client’s strategic initiatives regardless of industry vertical. Stephanie started her ownconsulting firm while in graduate school at Columbia University, working toward her Ph.D. in psychomet-rics. She had a diverse clientele that included market research firms, academic researchers, hospitalsand the United Nations. In this role, she was hired as an expert consultant to the Oklahoma City Bombingprosecution team in the area of survey research and statistics. Stephanie’s undergraduate degree is alsofrom Columbia University, where she graduated magna cum laude and was elected to Phi Beta Kappa. Shecan be reached at Stephanie.Foye@cognizant.com.About Cognizant’s Enterprise Analytics PracticeCognizant’s Enterprise Analytics Practice (EAP) combines business consulting, in-depth domainexpertise, predictive analytics and technology services to help clients gain actionable and measurableinsights and make smarter decisions that future-proof their businesses. The practice offers compre-hensive solutions and services in the areas of sales operations and management, product managementand market research. EAP’s expertise spans sales force and marketing effectiveness, incentivesmanagement, forecasting, segmentation, multichannel marketing and promotion, alignment, managedmarkets and digital analytics. With its highly experienced group of consultants, statisticians and industryspecialists, EAP prepares companies for the future of analytics through its innovative “Plan, Build andOperate” model and a mature “Global Partnership” model. The result: solutions that are delivered in aflexible, responsive and cost-effective manner. cognizant 20-20 insights 4

About Cognizant’s Healthcare and Life Sciences PracticeCognizant’s Healthcare and Life Sciences Practice is committed to helping change millions of lives forthe better by partnering with clients to build solutions to healthcare challenges, continually improve theway they do business, set the pace in clinical development, strengthen their regulatory infrastructure,and increase competitiveness. Consistently ranked among the top 10 on the Healthcare Informatics 100,Cognizant serves 27 of the top 30 global pharmaceutical companies, 15 of the top 20 health plans in theU.S., five of the top six pharmacy benefit management companies in the U.S., nine of the top 10 biotechcompanies, and 12 of the top 20 medical device companies. With a large team of dedicated profession-als including doctors, pharmacologists, physicians, biomedical engineers, pharmacists, biostatisticians,medical writers, and GxP consultants, the practice provides domain-aligned consulting, IT, businessprocess and analytics solutions globally.About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered inTeaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industryand business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50delivery centers worldwide and approximately 140,500 employees as of March 31, 2012, Cognizant is a member of theNASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performingand fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com© Copyright 2012, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein issubject to change without notice. All other trademarks mentioned herein are the property of their respective owners.

Integrated Market Research: The Intelligence Behind Commercial Transformation

by Cognizant on Jun 22, 2012

Accessibility

Upload Details

Usage Rights

Statistics

Integrated Market Research: The Intelligence Behind Commercial Transformation Document Transcript