Pharmaceutical marketing course


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  • Health as defined by WHO is complete state of physical, mental and social well beingIllness define as person’s own perception of how he or she feelsDisease: Judgement by the doctor about health and illness
  • EMEAFDAGovt bodies
  • This slide to be elaborated in class understanding who they are, their needs and issues. This is very important from marketing point of view
  • This is a very important slide that will form the basis of the course content. As a brand manager, one must understand every component carefully
  • Discuss with the students if there are any other differences they can come out with
  • Pharmaceutical marketing course

    1. 1. Pharmaceutical Marketing Syllabus
    2. 2. Core Concepts1. Healthcare environment2. The Pharmaceutical Industry Environment3. The Pharmaceutical Marketing Environement4. Marketing Strategy5. Marketing Research6. Market Segmentation7. Situational Analysis
    3. 3. Core Concepts8. Positioning Targeting and Profiling9. New Product Development10 Product Life Cycle and Portfolio Management11.Distribution Strategy12. Pricing Strategy13. Communication strategy14. Personal Selling15. Advertising16. Public Relations and Sales Promotion
    4. 4. Healthcare Environment• Define Health• Define Illness• Define Disease
    5. 5. Healthcare Structure Hospital careIn Home Subacute care care Ambulatory Long Term Care Care
    6. 6. Personnel intertwined with structure Primary Providers Secondary Providers Regulatory
    7. 7. Personnel intertwined with structure Healthcare Professionals Patients Regulatory Media and General Public
    8. 8. Interelationships Primary ProvidersEmployers Insurance Patient Healthcare Pharma Cos profess
    9. 9. Pharma Industry EnvironmentNational Laws Pressure Groups MarketeersSelf Regulations International /Ethics directives
    10. 10. Pharma Industry Components APIs OTC Research Biotech Pharma Industry CRO Generics Supply Packaging Chain
    11. 11. Understand the role of stakeholders PatientsPrescribersHospitalsInfluencersFinancersRegulators
    12. 12. Pyramid of Influences in Rx KOL Specialists, Pharmacist in charge General Practitioners
    13. 13. Lets understand us - Patient• Usual consumers – Needs and Wants (Classical marketing based on Kotler’s book)• Patients: Needs, Wants and Rights are different.• Buying decisions are more complicated• Compliance – Huge impact from pharmaceutical marketing perspective – Examples,• Starting of Disease Management Concept
    14. 14. Patients• 20% of Rx are never filled• 50% of the patients don’t follow the dosage• 50% of patients never change lifestyle• Reasons for non compliance: – Complex dosage regiment – Perception of disease – Family Input – Age – Poor communication
    15. 15. Assignment• Identify any disease either you or your family member is suffering and answer: – Disease symptoms – Treatment regimen – Compliance – Reasons for non compliance – Calculate the loss to you if you if you were the brand manager – Steps you will take to convert this problem into opportunity
    16. 16. Besides Patient, let us understand nature of the industry Phase I Phase II Phase III Phase IV• Lowest • Moderate • Highest • Post Cost Cost cost Marketing• Safety • Safety and • Large • Market tested on efficacy clinical expansion healthy tested on trials • Heaven for disease marketing! individuals
    17. 17. Kotler Marketing –Pure vanilla Planning of Strategies for each Evaluation andAnalysis of Market Market Segmens marketing segment Control Programs, Activities
    18. 18. Pharma Marketing Different Clinical Health Medical Outcomes Market ForecastingResearch Brand Manager
    19. 19. What are the other differences Pharmaceutical ConsumerConsumer is decision maker Mostly not true TrueConsumer pays directly Not True TrueBrand Loyalty Not True TrueGovernment Regulations Very High LowR&D Complex Less complexPrice sensitivity Low high
    20. 20. Clinical/Medical• Pros and Cons of current treatment available• Technical ability to understand the drug• Knowledge of standard practice• It helps how patients are viewed and treated by physicians• Helps brand manager to develop SWOT analysis
    21. 21. Health Outcomes• Epidemiology• Economic benefit of various treatment• Pricing and reimbursements• Effect of product on QALY (Quality adjusted life years)
    22. 22. Market Research• Quantitative and Qualitative – IMS – Focus Groups – Treatment pattern – Drug of first choice – Issues to highlight in promotional message• Show and learn how to use IMS data –Real Life scenarios
    23. 23. Forecasting• Assess the commercial potential• Develop revenue models based on prescription• Arrive at numerical forecast and not to have strategic implications
    24. 24. Role of Pharm marketeer• Comprehnsive review of disease marketplace• Competitive landscape• Pros and Cons of currently available and pipeline treatment• Assessment of unmet medical need where new compound can fit it• Ultimately developing a brand positioning
    25. 25. Developing Product Strategy• Comprehensive marketing strategy to meet key objectives of the brand including – Product Positioning – Market Segmentation • Patient • Physicians – Develops Pricing Model – Roll out plan –operational and more tactical approach
    26. 26. Marketing Mix in PharmaProduct Price Promotion Place Detail Aid HospitalTherapeutic Class Competition Clinical Papers PharmaciesGeneric or Branded CME Programs Distributon strategy Margins Supply chain and Symposias Dosage Form Storage Regulatory Personal Selling requirements Treatment Cost Controlled versus non International events controlled
    27. 27. Defining a Product, Critical component in Pharma Marketing• Classical way – Efficacy – Safety – Tolerability – Speed of Action – Quality – Cost – Side Effects
    28. 28. Product Defination• New Paradigm – Life Style – Quality of Life – DTP Branding – Redefining the patient population – Redefining disease yardsticks
    29. 29. Price• Brand versus Generic• Duration of patent protection• Competitive landscape• Dosage form• Cost of API
    30. 30. Place• Hospital or Retail Product - Oncology• Controlled or non controlled -Psychiatric• Cold Chain - Vaccines• Dosage Forms – Suppository• Select market or Global launch
    31. 31. Promotion• Advertising• Personal Selling• Public Relations• Sales Promotion• Target Audience• ATL/BTL• Gimmicks• Global Branding
    32. 32. Strategic Framework• Which therapeutic area and geographical area?• Portfolio selection and resource allocation• Target physicians, target indications• Marketing Mix• Implementation• Discuss the examples of generic and branded company
    33. 33. Marketing Planning Stages Analysis of Execution ofEvaluation of Positioning Control and market marketingopportunties and strategy review segment plan
    34. 34. Pharma Market Research• Prescribers – Prescription Audit – Patient Compliance – Indications, both approved and off label• Patients – Therapy awarenss – Compliance
    35. 35. Pharma Market ResearchAttributes Quantitative QualityQuestion Nature How many What if, “WhyResearch Nature Quantity defining ExploratoryFocus Historic and Behavioral StatisticalResults Measurble OpinionatedSample Size Large Small
    36. 36. Hoe w to create and analyse IMS Data• Live demonstration using real life IMS Rx Audit• Calculations of Market Share, Growth, Volumes, Values, Performance Index
    37. 37. Concept of Market Segmentation, Targeting and PositioningReasons for Segmentation:• All Doctors and Patients are not identicle• Their response to same drug could be different based on perceived side effects, cost, dosage regiment, off label indications (discuss with examples)
    38. 38. Benefits of Segmentation• Optimal Product/Market Match• Optimal, cost effective promotional strategy• Media allocation
    39. 39. Segmentation in real life• By Indications – Maintenance – Acute• By Patient Profile – Ethnic background – Demographic – Severity of illness• By Physicians type – Specialist versus GPs – Hospital versus Private – Patient’s economic status• By Dosage Forms – Injectables – Oral – Suppository
    40. 40. Segment criteria• Differentiable• Measurable• Accessible• Actionable• Defendable
    41. 41. Segmentation AnalysisMarket Potential Therapeutic B C class/Indication APotential MarketSizeAvailable MarketSizeServed Market SizeAvegrage Rx ValueValue PotentialVolume PotentialMarket GrowthCompetitorsComplexity/Legal
    42. 42. Product Attribute AnalysisAttribute Your Product Competitor A B CEfficacySafetyTolerabilityAdverse EventsOnset of ActionOther Desgin attribute analysis and provide importance/score for physicians and patients both. Example Escitalopram versus Venlafaxin (Tolerability versus efficacy)
    43. 43. TargetingAfter arriving at segments, company has to target certain segment based on• SWOT Analysis• Sustainable Competitive Advantage• Evaluation of current and future resources• Product Life Cycle• Sales force capability• In house talent pool
    44. 44. Positioning• Most important job of marketer as this is the first message that goes outside!• Based on product attributes, real and perceptual• Wrong positioning leads to wrong message and cascading effect all the way down to a flop!• Once you are positioned, it is not easy to shift
    45. 45. PositioningQuestions to ask internally:• What is the licensed indication by FDA/EMEA• Different therapeutic segments to cover• How many physicians• SWOT/Competition/Patent Protection• USP versus other products• Can Clinical Trials support the message• Amount of resources• Can we prove/convince authority/doctors (for eg undefined MOA is very difficult to sell!
    46. 46. Positioning Fit with Corporate ObjecticeCreat USP
    47. 47. Two Dimensional PositioningEfficacy Safety
    48. 48. Examples of Product Positioning• Dosage• Formulations• Drug Delivery/Technology – Pk and Pd• MOA• Drug Drug Interactions• Safety in Children and Pregnant women• Product Class• Packaging• Reiumbursement• Onset of Action
    49. 49. Indian Generic Positioning• Unsubstantiated claims by Sales Force• Difficult to supervise• Difficult to control by regulation• Self regulation is limited• Erroneous claims• Too many claims
    50. 50. Pharmaceutical BrandingStrategy Segmentation Targeting Positioning Branding
    51. 51. Is Pharma Branding different than others?• Discuss attributes of brand and differentiate versus other industries• Front End branding: Name, Sign, Symbol, colors, location of placement, distribution outlets. Location of advertisement, price, celebrity endorsement, commercials, PR, Packaging, Consistency, Longevity, Design
    52. 52. Branding• Back end Factors: – Research and Development – Core Philosophy of Management – Investment and re investment – Quality throughout the value chain – Customer engagement – Talent Pool
    53. 53. Does Branding Work in Pharma Industry?Brands as the totality of perceptions and feeling that consumers have about any item identified a brand name including its identity(e.g. its packaging and logos), Quality and performance, familiarity, trust, perceptions about the emotions and values that Brand symbolizes and user imagery
    54. 54. Global and regional brands
    55. 55. How to stand out in crowded place?
    56. 56. Personal Branding plays significant role in Pharma Branding• Especially in Rx category• Role of KOL – Personality – Ability to speak well and influence – Technology – PR• Higher management is close to prescribers
    57. 57. Branding in Pharma• Limitations compared to consumer product – Patents Expiration – FDA /Regulatory requirements – Duality – Doctors versus Patients• Deductive versus Inductive – Deductive – Asking the target audience to choose from predefined concepts – Inductive – Asking the target audience what do they think about the treatment, how they see a brand and then creating concepts
    58. 58. Branding In Pharma• Rx versus OTC – Rx brand survives short period of time, approx 7 to 10 years. – OTC brand can continue for ever like Coke hence marketer can invest in brand building – Rx brand lacks organoleptics –appeal to senses such as touch, taste, smell – Sensory appeals are essential in brand building – All Rx brand looks more or less same
    59. 59. Question• How many of you think it is not possible to build an Rx Brand?
    60. 60. How to build an Rx Brand• Create with patients• Create tools for patient complinace• Direct marketing• Discuss the disease or conditions to be treated and alternatives patient should know about• Blend of doctor and patient communication• Committing resources to making it a character.
    61. 61. Difference between Branding and Positioning• Not inter changeable words• Positioning is all about perception –how you want doctors or patients to think about your product• Its an unemotional exercise• Branding: Its all about relationship with target doctors and patients.• Difficult to describe but it is a bond between product and doctors• Corporate branding supplements product branding
    62. 62. Assignment• Google search Claritin and Tylenol – Include message – Include images• Describe in your words difference between branding and positioning using two examples• Evaluate Indian brands and understand if any successful brands that appeals to you
    63. 63. Marketing Cases• New pain killer belonging to new therapeutic category having patent expiry of three years is being launched• Product is unique, once daily dosage compared to older drugs• Product has some side effects but manageable as long as patient follows the treatment• Suboptimal dose also works for mild to moderate cases
    64. 64. Objective• Develop communication plan for doctors• Evolve a strategy post patent• Highlight your recommendations with reasons• Make as many assumptions as you think appropriate• Think out of the box• Give a name to the product
    65. 65. Product Life Cycle and Portfolio Management• Diffusion of innovation• Competitive strucuture• Internal product portfolio• Research and Development• Patents and IP• Technological advances• Sustained Profitability
    66. 66. Standard Graph
    67. 67. Pharma PLC versus Consumer• Extensive Pre Launch Phase• Dependent on Patent Expiry• Reimbursement Limitations• Limited bandwidth to play around• Regulatory hurdles
    68. 68. What happens to business when you ride the wave Introduction Growth Turbulence Maturity DeclineRevenueSalesGrowthCostProfitPhysiciansProfileCompetitors
    69. 69. Premarketing• At least two years prior to launch• Develop advisory board, diverse members• Clear Mechanism of Action• Create a dedicated task force internally• Initiate selective exposure to KOL• Develop Speakers Bureau• Internal planning, Mfg, Packaging, PI, PM• Evolve positioning
    70. 70. Introduction• Launch Planning –WOW Effect – Regional Launch – Country Launch – Sampling – KOL seminars – PR – Promo material – Charged up sales force – Motivation, Incentives• Spend Spend Spend Spend
    71. 71. Growth Phase• Territories are further divided to increase the frequency and targets• Sales force expansion• Continued support to KOL• Focus increased in heavy prescribers• Expansion of target doctors to increase the share of prescription• Overall investment is high
    72. 72. Maturity• First impact is freeze on sales force• Cut down on lavish expenses, foreign trips etc• Cutting down on some target doctors.• More scrutiny on expenses• Stiff targets/growth expectations without must investment• Most difficult period from sales force point of view• No excitement !
    73. 73. Decline• Time to move on to new company!• Tail end products are interesting acquisition targets for start ups!• Allow slow decline by selective presence in the market• Product moves from elite sales force to contract sales force• Strictly no new initiative• Difficult period for sales force to understand – Confused state!
    74. 74. Product Portfolio and PLC• In Line Products, its different dosage forms, strengths and packaging• Pipeline Products (In Phase III and under)• PM and PLC are very critical from strategic planning• Investors and Analyst focus most on this two issues• Only way to judge the future cash flows, profits and sustainability of organization - Examples
    75. 75. Assessment techniques in PharmaPM Assessment Targets Long term SWOT Stratgic Fit Performance • Efficacy • NPV • Therapeutic • Pricing • ROI Class • Ease of Use • Market Value - • Regions • Patent Discounting • Competencies • PLC Stage • Clinical Support • Regulatory capbility
    76. 76. Concept of Net Present Value, NAV• Demonstrate it using an excel formula
    77. 77. Different Matrices for evaluation of Portfolio opportunity• Probability of Tech success versus NPV• Opportunity Cost versus Development Cost• BCG Model – Market Growth Rate versus Relative Market Share (Starts, Question Marks, Dogs and Cash Flows)• Market Attractivenss – Industry Attractiveness versus Business Strength
    78. 78. Competitive Strategy• Strategic Issues: – Research inhouse or outsource – Market yourself or outsource – International expansion or stay at home! – Acquisition of product portfolio – Brand versus Generic – How much backward integration one should do?
    79. 79. Discuss Classic Kotler example Leader Challenger Follower Specialist
    80. 80. Lets talk India, Lets focus on GenericsBioequivalence Bioavailability PatentRegulatory/Mkt Price Technology Access
    81. 81. Pricing • Highest price you can get • Stay thereBrand • • Patent Protection No threat, No Limit pricing, ex: Biotechnology • First mover advantage • Fast In, Fast OutGeneric • • Based on Brand Price Cost of APIs • Cost of Regulatory
    82. 82. Forecasting 2012/80 1955/551940/40
    83. 83. ForecastingEducation Awarness Consumption
    84. 84. Forecasting• Prevalence• Incidence• Compliance• Access• Availability• Dosage Form – MS• Diagnostic Tools• Advertising and Promotion• Historical sales
    85. 85. Forecasting a pharma product• Disease Patient• Converting healthy patients to disease patient• Life Style diseases and drugs• OTC component• Off label indications – Neurontin• Innovative dosage forms – Nicotine
    86. 86. Sales Force Management• Cornerstone of successful marketing• Territorial planning• Developing Call Plan• Identification of sales force size (RTF Model)• Hiring and recruitment• Training• Supervision• Motivation and incentives• Monitoring and Mentoring