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LOBBYING AS A PROMOTIONAL
TOOL.
Presented by:
Kranthikiran C
Regd no:130607016
Dept. of Pharmacy Management
(PharmacyAdministration)
MCOPS, Manipal.
Guided by:
Pradeep M Muragundi
Assistant Professor
Dept. of Pharmacy Management
MCOPS, Manipal.
CONTENTS
1. Introduction.
 Public
 Public relation.
 Definition of lobbying.
2. History of lobbying.
3.Types of lobbying.
4. Lobbying database.
5. Lobbying as a promotional tool.
6. Benefits of lobbying.
7. Conclusion.
8. References.
Introduction.
Public ?
 A public is any group that has actual or potential
interest in or impact on a company’s ability to
achieve its objectives.
So a company not only should relate to the customers,
suppliers, dealers but it also must relate to number of
interested people or the public. This is called public
relation.
Contd…
 Public relations perform some of the functions in
which Lobbying is one among them.
Definition of Lobbying:
It is an act of attempting to
influence the decisions made by officials in the
government, most often legislators or the members of
the regulatory agencies.
 Lobbying is done by many different types of people
and organized groups.
 The persons who are involved in the lobbying are
called Lobbyists.
 Professional lobbyists are people whose business is
trying to influence legislation on behalf of a group or
individual who hires them.
History of lobbying
 Although some have noted it’s influence on the
earliest political forums in Greece and Rome, what
we know as modern lobbying began in the US.
 In 1792, William Hull was hired by the Virginia
veterans of the Continental army.
Contd…
 In 1795, a Philadelphia newspaper described the way
lobbyists waited outside Congress Hall to "give a hint
to a member”.
 In 1850, Samuel Colt gave away a free pistol to the
twelve-year old son of a representative as a mild
encouragement to sign a patent bill.
 In 1946, Congress passed the first comprehensive
lobbying disclosure law, the Federal Regulation of
Lobbying Act.
 In 2011, Former Senator Chris Dodd (D-Conn.), author
of the Wall Street Reform and Consumer Protection
Act, became Hollywood’s Chief lobbyist as CEO of the
Motion Picture Association of America—but he’s not
registered.
Types of lobbying.
 Lobbying is of two types.
1) Direct lobbying
2) Grassroots lobbying.
Direct lobbying is an attempt to influence legislation
through communication.
 Here the communication refers to specific legislation
and reflects a view on legislation.
Contd…
Grassroots lobbying is an attempt to
influence legislation, through an attempt to influence
the opinions of general public.
It includes “a call to action”.
 Organizations that sends out frequent calls to action
urging their members to contact their legislators, and
organizations that lobby through their employees
should refer the IRS rules.
Lobbying by Country
Australia:
Over the past twenty years lobbying in Australia has
grown from a small industry of a few hundred
employees to a multi-billion dollar industry.
In Australia, lobbyists are expected to organize a pass
to obtain access to the Federal Parliament.
The Pass is valid for two years.
European Union:
 More the political influence the European
Union ("EU") gains on a global level and the more
policy areas it covers, the more interesting it becomes
for lobbyists.
 Lobbying takes place at the European level itself and
within the existing national states
As of 2003, around 15,000 Brussels-based lobbyists
(consultants, lawyers, NGOs etc.) sought to influence
the EU’s legislative process.
Contd…
• There are three main channels of indirect lobbying of
the Council.
 First, lobbying groups routinely lobby the national
delegations in Brussels.
The second indirect means of lobbying the Council is
for interest groups to lobby members of the many
Council-working groups.
The third means of influencing the Council is directly
via national governments.
United States:
Lobbying in the United States describes paid activity
in which special interests hire well-connected
professional advocates, often lawyers, to argue for
specific legislation in decision-making bodies such as
the United States Congress.
In Washington DC, lobbying usually targets congress
persons.
Contd…
• While lobbyists number upto 12,000 people in
Washington DC those with real clout number in the
dozens, a small group of firms handle much of
lobbying in terms of expenditures.
• The current pattern suggests much lobbying is done
by corporations, although a wide variety of coalitions
representing diverse groups is possible
Contd…
• Since the 1970s, there has been explosive growth in
the lobbying industry in Washington DC.
• By 2011, one estimate of overall lobbying spending
nationally was $30+ billion.
• An estimate of lobbying expenses in the Federal
arena was $3.5 billion in 2010, while it had been only
$1.4 billion in 1998.
Lobbying Database
 In addition to the campaign contributions to elected
officials and candidates, some of the pharmaceutical
companies and the other organizations spend billions
of dollars each year to lobby.
 Here we have got total lobbying spending as well as
number of lobbyists beginning in 1998 to 2013.
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Total lobbying spending in billions
Number of lobbyists
Lobbying as a promotional tool
Lobbying as a social interaction:
 Lobbying involves efforts to make direct, private,
face-to-face contact with public officials.
 It is a necessary component of the dialogue between
citizens and their public officials.
 Due to the number of Bills and Amendments
introduced during each legislative session, it is
impossible for the legislators to gauge the potential
effects that each have on individuals.
Contd…
 These public interest groups vary considerably in
every imaginable way.
 Some groups focus on single issue, while others focus
on broader areas of public policy.
 They promote policies that produce widely
distributed benefits that anyone can enjoy like
improvements in the public health.
 Interest groups and political parties share some
common attitudes and opinions.
AVANDIA (Rosiglitazone Maleate Tablet):
 It is one of the world’s best selling drug for Diabetes.
 But, it is a source of causing 100 thousands of
heart attacks in U.S.
 The investigation by U.S Senate and Finance
Committee found that GSK was aware of the possible
cardiac risks.
 GSK is still trying to prevent the heart attack
warnings printed on its boxes.
Contd…
 GSK had communicated that results from six clinical
trials show that Avandia does not increase the overall
risk of heart attacks.
 The company had concluded that when used in
appropriate patient and in accordance with labelling,
Avandia is safe and effective treatment option for
Type2 Diabetes.
 In 2006, Merck received FDA approval for Gardasil,
the vaccine for Human Papilloma Virus(HPV).
 Merck priced the vaccine at $360 for three injections.
 But, prior to the FDA approval, Merck began to
develop a market for Gardasil and launched an
intensive campaign to get states to make HPV
vaccine
LOBBYING BY BIG PHARMA
 Top officials from a number of US drug makers such
as Pfizer, Mylan, Merck recently met the DIPP
secretary to lobby against use of compulsory licenses
by India.
 US pharma majors are putting pressure on the Govt.
to stop issuing permits to domestic companies for
making low priced copies of patented drugs.
Contd…
 India has been facing huge protests from US after it
issued the first compulsory license to Hyderabad
based company, Natco for Bayer’s anti-cancer drug
Nexaver.
 Natco priced the copied version at Rs.8,800 for a
months treatment to Bayer’s version priced at Rs 2.8
lakhs.
 Indian Patent Office revoked Pfizer’s patent for anti-
cancer drug Sutent.
Corporate lobbying in India:
 The extent of lobbying in India has also widespread.
 Take the case of 2G spectrum which involved lobbyist
Nira Radia to lobby against the re-appointment of
Dayanidhi Maran to the post of Union IT and
Communication Minister.
Contd…
 Lobbyist, Nira Radia has lobbied prominent figures
which includes Telecom big heads.
 The Main cause for lobbying in this case is for
undercharging mobile, telephone companies for
frequent allocation issues, which they would then use
to create 2G spectrum subscriptions for cell phones.
Benefits of lobbying
 Tax Benefits.
 Improved Cash Flows: On average, and controlling
for other factors, firms that engaged in lobbying
received more generous depreciation treatment.
Contd…
 Increased Market Value: Another study demonstrates
that firms which lobby significantly outperform non-
lobbying firms with respect to increased market value
of equity. This can be as high as adding another 2%
per year to return.
Conclusion.
 By better understanding the rules applicable to
lobbying, organizations working to improve the
public’s health can maximize their effectiveness
while minimizing the possibility of endangering their
status.
 In addition, organizations can be in a better position
to appreciate the impact of any proposed new
restrictions on their lobbying.
 By effectively using the information available and
developing a focused campaign there is still a lot of
success to be had with public affairs for many
organizations.
References.
1. 1.Kotler P, Keller K L, Koshy A, Jha M.Marketing
Management, 13th
ed. New Delhi: Dorling
Kindersley Pvt ltd; 2009.
2. Radia Controversy[INTERNET].[updated on 2013
Nov 13;cited on 2013 Nov 14]. Available from:
http://en.wikipedia.org/wiki/Radia_tapes_controvers
y
3.US Pharma firms lobby to protect patents in
India[INTERNET].[Updated on 2013 Oct 23;cited
on 2013 Nov 12]. Available from:
http://www.the%2520hindubusinessline.com
%2Findustry-and-economy%2Fus-pharma-firms-
lobby-to-protect-patents-in-india
Contd…
4. Merck lobbying States to mandate Gardasil for school
girls.[INTERNET].2007 Jan 30;[cited on 2013 Nov
11]. Available from:
http://www.news-
medical.net/news/2007/01/30/21605.aspx
5.Lobbying[INTERNET].[Updated on 2013 Oct
22;cited on 2013 Nov 8]. Available from:
http://en.wikipedia.org/wiki/Lobbying
Lobbying as a promotional tool

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Lobbying as a promotional tool

  • 1. LOBBYING AS A PROMOTIONAL TOOL. Presented by: Kranthikiran C Regd no:130607016 Dept. of Pharmacy Management (PharmacyAdministration) MCOPS, Manipal. Guided by: Pradeep M Muragundi Assistant Professor Dept. of Pharmacy Management MCOPS, Manipal.
  • 2. CONTENTS 1. Introduction.  Public  Public relation.  Definition of lobbying. 2. History of lobbying. 3.Types of lobbying. 4. Lobbying database. 5. Lobbying as a promotional tool. 6. Benefits of lobbying. 7. Conclusion. 8. References.
  • 3. Introduction. Public ?  A public is any group that has actual or potential interest in or impact on a company’s ability to achieve its objectives. So a company not only should relate to the customers, suppliers, dealers but it also must relate to number of interested people or the public. This is called public relation.
  • 4. Contd…  Public relations perform some of the functions in which Lobbying is one among them. Definition of Lobbying: It is an act of attempting to influence the decisions made by officials in the government, most often legislators or the members of the regulatory agencies.
  • 5.  Lobbying is done by many different types of people and organized groups.  The persons who are involved in the lobbying are called Lobbyists.  Professional lobbyists are people whose business is trying to influence legislation on behalf of a group or individual who hires them.
  • 6. History of lobbying  Although some have noted it’s influence on the earliest political forums in Greece and Rome, what we know as modern lobbying began in the US.  In 1792, William Hull was hired by the Virginia veterans of the Continental army.
  • 7. Contd…  In 1795, a Philadelphia newspaper described the way lobbyists waited outside Congress Hall to "give a hint to a member”.  In 1850, Samuel Colt gave away a free pistol to the twelve-year old son of a representative as a mild encouragement to sign a patent bill.
  • 8.  In 1946, Congress passed the first comprehensive lobbying disclosure law, the Federal Regulation of Lobbying Act.  In 2011, Former Senator Chris Dodd (D-Conn.), author of the Wall Street Reform and Consumer Protection Act, became Hollywood’s Chief lobbyist as CEO of the Motion Picture Association of America—but he’s not registered.
  • 9. Types of lobbying.  Lobbying is of two types. 1) Direct lobbying 2) Grassroots lobbying. Direct lobbying is an attempt to influence legislation through communication.  Here the communication refers to specific legislation and reflects a view on legislation.
  • 10. Contd… Grassroots lobbying is an attempt to influence legislation, through an attempt to influence the opinions of general public. It includes “a call to action”.  Organizations that sends out frequent calls to action urging their members to contact their legislators, and organizations that lobby through their employees should refer the IRS rules.
  • 11. Lobbying by Country Australia: Over the past twenty years lobbying in Australia has grown from a small industry of a few hundred employees to a multi-billion dollar industry. In Australia, lobbyists are expected to organize a pass to obtain access to the Federal Parliament. The Pass is valid for two years.
  • 12. European Union:  More the political influence the European Union ("EU") gains on a global level and the more policy areas it covers, the more interesting it becomes for lobbyists.  Lobbying takes place at the European level itself and within the existing national states As of 2003, around 15,000 Brussels-based lobbyists (consultants, lawyers, NGOs etc.) sought to influence the EU’s legislative process.
  • 13. Contd… • There are three main channels of indirect lobbying of the Council.  First, lobbying groups routinely lobby the national delegations in Brussels. The second indirect means of lobbying the Council is for interest groups to lobby members of the many Council-working groups. The third means of influencing the Council is directly via national governments.
  • 14. United States: Lobbying in the United States describes paid activity in which special interests hire well-connected professional advocates, often lawyers, to argue for specific legislation in decision-making bodies such as the United States Congress. In Washington DC, lobbying usually targets congress persons.
  • 15. Contd… • While lobbyists number upto 12,000 people in Washington DC those with real clout number in the dozens, a small group of firms handle much of lobbying in terms of expenditures. • The current pattern suggests much lobbying is done by corporations, although a wide variety of coalitions representing diverse groups is possible
  • 16. Contd… • Since the 1970s, there has been explosive growth in the lobbying industry in Washington DC. • By 2011, one estimate of overall lobbying spending nationally was $30+ billion. • An estimate of lobbying expenses in the Federal arena was $3.5 billion in 2010, while it had been only $1.4 billion in 1998.
  • 17. Lobbying Database  In addition to the campaign contributions to elected officials and candidates, some of the pharmaceutical companies and the other organizations spend billions of dollars each year to lobby.  Here we have got total lobbying spending as well as number of lobbyists beginning in 1998 to 2013.
  • 20. Lobbying as a promotional tool Lobbying as a social interaction:  Lobbying involves efforts to make direct, private, face-to-face contact with public officials.  It is a necessary component of the dialogue between citizens and their public officials.  Due to the number of Bills and Amendments introduced during each legislative session, it is impossible for the legislators to gauge the potential effects that each have on individuals.
  • 21. Contd…  These public interest groups vary considerably in every imaginable way.  Some groups focus on single issue, while others focus on broader areas of public policy.  They promote policies that produce widely distributed benefits that anyone can enjoy like improvements in the public health.  Interest groups and political parties share some common attitudes and opinions.
  • 22. AVANDIA (Rosiglitazone Maleate Tablet):  It is one of the world’s best selling drug for Diabetes.  But, it is a source of causing 100 thousands of heart attacks in U.S.  The investigation by U.S Senate and Finance Committee found that GSK was aware of the possible cardiac risks.  GSK is still trying to prevent the heart attack warnings printed on its boxes.
  • 23. Contd…  GSK had communicated that results from six clinical trials show that Avandia does not increase the overall risk of heart attacks.  The company had concluded that when used in appropriate patient and in accordance with labelling, Avandia is safe and effective treatment option for Type2 Diabetes.
  • 24.  In 2006, Merck received FDA approval for Gardasil, the vaccine for Human Papilloma Virus(HPV).  Merck priced the vaccine at $360 for three injections.  But, prior to the FDA approval, Merck began to develop a market for Gardasil and launched an intensive campaign to get states to make HPV vaccine
  • 25. LOBBYING BY BIG PHARMA  Top officials from a number of US drug makers such as Pfizer, Mylan, Merck recently met the DIPP secretary to lobby against use of compulsory licenses by India.  US pharma majors are putting pressure on the Govt. to stop issuing permits to domestic companies for making low priced copies of patented drugs.
  • 26. Contd…  India has been facing huge protests from US after it issued the first compulsory license to Hyderabad based company, Natco for Bayer’s anti-cancer drug Nexaver.  Natco priced the copied version at Rs.8,800 for a months treatment to Bayer’s version priced at Rs 2.8 lakhs.  Indian Patent Office revoked Pfizer’s patent for anti- cancer drug Sutent.
  • 27. Corporate lobbying in India:  The extent of lobbying in India has also widespread.  Take the case of 2G spectrum which involved lobbyist Nira Radia to lobby against the re-appointment of Dayanidhi Maran to the post of Union IT and Communication Minister.
  • 28. Contd…  Lobbyist, Nira Radia has lobbied prominent figures which includes Telecom big heads.  The Main cause for lobbying in this case is for undercharging mobile, telephone companies for frequent allocation issues, which they would then use to create 2G spectrum subscriptions for cell phones.
  • 29.
  • 30. Benefits of lobbying  Tax Benefits.  Improved Cash Flows: On average, and controlling for other factors, firms that engaged in lobbying received more generous depreciation treatment.
  • 31. Contd…  Increased Market Value: Another study demonstrates that firms which lobby significantly outperform non- lobbying firms with respect to increased market value of equity. This can be as high as adding another 2% per year to return.
  • 32. Conclusion.  By better understanding the rules applicable to lobbying, organizations working to improve the public’s health can maximize their effectiveness while minimizing the possibility of endangering their status.  In addition, organizations can be in a better position to appreciate the impact of any proposed new restrictions on their lobbying.  By effectively using the information available and developing a focused campaign there is still a lot of success to be had with public affairs for many organizations.
  • 33. References. 1. 1.Kotler P, Keller K L, Koshy A, Jha M.Marketing Management, 13th ed. New Delhi: Dorling Kindersley Pvt ltd; 2009. 2. Radia Controversy[INTERNET].[updated on 2013 Nov 13;cited on 2013 Nov 14]. Available from: http://en.wikipedia.org/wiki/Radia_tapes_controvers y 3.US Pharma firms lobby to protect patents in India[INTERNET].[Updated on 2013 Oct 23;cited on 2013 Nov 12]. Available from: http://www.the%2520hindubusinessline.com %2Findustry-and-economy%2Fus-pharma-firms- lobby-to-protect-patents-in-india
  • 34. Contd… 4. Merck lobbying States to mandate Gardasil for school girls.[INTERNET].2007 Jan 30;[cited on 2013 Nov 11]. Available from: http://www.news- medical.net/news/2007/01/30/21605.aspx 5.Lobbying[INTERNET].[Updated on 2013 Oct 22;cited on 2013 Nov 8]. Available from: http://en.wikipedia.org/wiki/Lobbying

Editor's Notes

  1. A wise company may take a=necessary steps to manage successful relations with public,.
  2. Deals with legislators and govt. officials to promote of defeat the legislations and regulation
  3. Including individuals in private sector, fellow legislators govt officials advocacy groups
  4. To lobby for additional compensation for their war services. Hull told veterans that they have their agents who had cooperated with him to pass the compensation bill.
  5. 1st attempt to regulate lobbying came in 1928
  6. 1.Which requires registration by people who spend half of their time in lobbying.
  7. Specific legislation includes not only the bills that have already introduced in a legislator but also the specific legislative proposals that have not been formally introduced. Simply letting the lawmaker to know about ur position on specific legislation is the direct lobbying.may also involves trying to influence the public, in which case the public in essence are legislators.
  8. To influence the public to express a particular view to their legislators about specific legislative proposals. Ways of issuing a call to action includes providing name, address telephone num of a legislator or providing a copy of petition ,or simply identifying a particular as having a position on specific legislation.
  9. The parliamentary pass must be signed by two parliamentaranians. There are many groups in australia that lobby without passes.
  10. Although there have been efforts to influence executive ageny officials as well as US supreme court appointments
  11. To explain your positon on political and social issues in order to shape policymaking. All sorts of intrest groups and private individuals may schedule meetings wit public officials inn an attempt to get policies they favour.
  12. Like age size reources tactics and ideological orientation.some groups appear and disappear over the period of a single election, while others have long tradition of influencing eletions and public policy choices. Both seek to influence elections, govt.officials public policy choices.
  13. Earned abt 13 billion dollars. Such an evidence has became public. Company focussed on strategies to minimise or misrepresent the findings that avandia may increase cardiovascular risks.
  14. Identified as the cause of cervical cancer. And company was working on programs for the use of gardasil in developing countries at much lower prices.
  15. Is a permit issued by a govt. to local industry for producing copied versions of patented medicines without the conssent of the patent holder.
  16. Nira radia has extremely attempted to influence some media persons for this kind of indulging act.