1. Value Innovation to Pharma What changes to business? Interactive Symposium Marketing Summit October 2008 Zurich October 20th, 2008 Rob Halkes

3. I. So, what’s the business of pharma?

6. The basic pharma playing field What Clients General Standardised Approach Account Focus Detailing by Reps to individual doctors Communication One-way Push Product based Value Product profile Organisation Silos Medical Marketing Sales

7. II. Can we go on as we do?

9. Pharma excellence: make a choice… R&D Product Innovation Administration and Distribution Infrastructure management Sales and Service Customer Relationship Management Core question: What is the USP of producing new drugs? how to exploit that to create business? The key factor to success is: exploitation of the knowledge about the drug, gathered in R&D, in health care itself.

10. III. What then, is the perspective of Value Innovation?

11. Value Innovation is more than sales adaptation . It takes a process of repositioning to customer and consumer in the process of care delivery that makes the distinction to USP. Positioning is all about choosing a distinctive customer value proposition “ A (marketing) strategy must start with a different value proposition. Strategy delineates a territory in which a company seeks to be unique. It is about making choices. “ You can’t be all things to all people” Porter, M. (2001), Interview in Fast Company (March 2001)

12. Shifting perspectives in the basic playing field What Clients General Standardised Approach Differentiated activities for different segments Account Focus Detailing by Reps to individual doctors Integrated coordinated multidisciplinary account specific management Communication One-way Push Product based Multi channel interactive platforms on health care Value Product profile Outcome of health care for consumers Organisational Change Silos Medical Marketing Sales Integrated account focused units

15. IV. What changes to the organisation ?

19. Goals for Sales /Account management: Differentiated Network approach and covering the individual GP’s within. - + Access to network -/- +/+ Network relevancy -/- +/+ 1.B Enlarge the ROI of the network 1.C Cover all GP in the network 1. Get access to or develop the networks with the highest potential and relevance 1.A Get to a healthcare based relationship based on your product 1.D Continue and warrant your health care relationship by practice and patient support 2 Access those networks with less but still relevant potential O. Stay away from networks with low potential , or migrate at least through your contact to the related network with a larger potential 2.A Enlarge the acknowledgement of your product 2.B Enlarge the group of GP’s using your product Commercial potential A

20. Marketing Synergy between Targeting and Added Value Indication Orientation Company orientation Product Orientation Customer Oriented Consumer Driven Customer Defined B Product Support services Customer Individualizing surplus value Customer Individualizing surplus value 1 Relation getting - No relation - Selling 3 Extended Rx 5 Enhanced Long term and Life time 4 Long term 2 Ad hoc Rx E General practice and partnership D Therapy enhancing support packages C Implementation and consumer directed support Services General and Selling Communication and tools B Product support services Customer Individualizing added value 1 Relation Building - No relation - Selling 3 Extended Rx 5 Enhanced Long term and Life time 4 Long term 2 Ad hoc Rx E General practice and partnership D Therapy enhancing support packages C Implementation and consumer directed support services General and selling communication and tools Conditions of Relation ship A Brand Driven I Commercial Promotion II Support to medical doctor III Support to patient IV Partner

22. Account segmentation, Focus and Management is crucial: Everything must be seen fit to the account Account Segment type Data and characteristics Targeting Investment: volume Commercial action plan Account management Related professional functions Process structures Monitoring Effects and output Information and communication Means and channels

26. Van Spaendonck’s BU “Value Innovation in Medical and life Sciences” is a focused consultancy firm. Van Spaendonck management consultancy supports and directs parties and professionals to proper choices and processes to create and develop their USP , a better market position and performance. In the dynamics of health care systems, pharmaceutical industry, health care insurers, social parties, and health care professionals will be challenged more and more to their added value. The business unit “Value innovation for Medical and Life Sciences,” has the needed expertise and experience to initiate and develop processes and clinics for health care, marketing, sales and management systems, professional development, and strategic organisational change. 20 years of consultancy expertise to pharmaceutical and medical industry, life sciences and health care. Actual research and publications in health care and marketing developments. Rob Halkes BU Van Spaendonck – Value innovation in Medical and Life Sciences T +31 418 578000 F +31 418 578010 M+31 653 420722 Postbus 2005 E r.halkes@VanSpaendonck.nl Hogeweg 85 W www.medicalandpharmamarketing.com 5300 CA Zaltbommel the Netherlands Rob Halkes BU Van Spaendonck – Value innovation in Medical and Life Sciences T +31 418 578000 F +31 418 578010 M +31 653 420722 Postbus 2005 E r.halkes@VanSpaendonck.nl Hogeweg 85 W www.medicalandpharmamarketing.com 5300 CA Zaltbommel T www.twitter.com /@ rohal the Netherlands