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Sales & Marketing

Ensuring Profitable Return-on-Investment (ROI) in Pharmaceutical Marketing

Using Analytics and Metrics to Improve the Bottom Line

Publication Date   March 2007
Publisher   Eularis
Product Type   Strategic Report
Pages   103
ISBN Number   978-0-9555083-0-1
Product Code   ELA001
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Price £997.00

approximately: $2,000 | €1,252

Summary


The pharmaceutical environment is turbulent, and as a result, what used to work to create industry wide growth of 20% no longer does. The resulting bottom line return for brands is in decline as market growth slows in the major pharmaceutical markets and this inevitably leads to marketing budget cuts. The only way for a brand to grow effectively - and cost-effectively - is to improve the bottom line effectiveness of each marketing spend. Pharmaceutical marketers are under even more pressure to get more bang for their buck from their marketing spend, and be able to justify it. This in-depth report answers the questions that pharmaceutical marketing directors are asking, 'How do we successfully measure our individual marketing activities bottom line return, and prove it to the CFO?' and 'How do we prove exactly which marketing components are really growing our bottom line? How do we know what aspects need to be changed, and how, to grow the bottom line by a specific amount?' This report explains the different methods being used such as ROI, promotional response models, econometrics and predictive algorithms and the pros and cons of the different approaches. There are step-by-step guidelines on successfully implementing these approaches for real and measurable results, and numerous case studies of actual pharma brands who have successfully navigated these waters, and what they did to measure and improve - and prove - bottom line return.

This comprehensive report helps you navigate your way to competitive advantage prior to wasting significant time and money on an approach that is not providing the evidence you need.

In this report you will learn:

  • The practical skills every marketer needs for measuring the effectiveness of their marketing
  • Which tools and best practices really make a difference
  • The measurement principles that drive successful marketing measurement
  • How to propel strategy, growth, and bottom line return
  • Plus case studies in measurement of sales force return, eDetailing return, compliance/adherence programmes, cme speaker programmes, advertising campaigns, PR campaigns, CRM implementation return, and much more.

Includes:
  • Key learnings from the case studies
  • Interviews with top pharma marketing leaders on how they're handling pressing marketing return issues
  • Q&A's with experts on the hottest new measurement concepts and how to implement them
  • Six specific, practical questions on today's hottest topics in pharma marketing measurement
  • New ideas you can apply to your area of marketing responsibility - be it sales force, advertising, eDetailing, CME, CRM, PR or something else.

Topics include:
  • Why CFOs despair of marketing and impose budget cuts
  • What does marketing measurement provide? Do your tools measure up?
  • ROI basics: understanding, measuring and avoiding pitfalls
  • Challenges specific to the pharmaceutical industry that have bearing on measurement?
  • Metrics progression: from activity tracking to sophisticated analytics
  • The new thing: an accurate approach using present predictive analytics to measurably improve bottom line performance
  • Where does brand equity fit in with ROI?
  • How much market share are your product messages giving you? Do you need to change them?
  • Bridging the gap between marketing and sales
  • How do you know how much financial return your sales force is providing you?
  • How do you know if your advertising is working to increase financial return?
  • Measuring PR return: sophisticated analytics give high PR return accuracy
  • How do we measure patient compliance/adherence ROI
  • Can we measure speaker programme ROI?
  • What about 'e'? Can we measure eDetailing ROI and eActivities in general?
  • How does corporate brand marketing play into our brand financial results?
  • Can generics/stealth pharma also measure their activities?
  • Applying analytics to pharma OTC brands
  • What about pan-portfolio or pan-country analytics?
  • Can the market share/sales potential of pre-launch brands be measured and optimised using this approach?
  • How do we measure CRM ROI?
  • How does marketing measurement and shareholder value fit together?
  • The future of marketing measurement: interviews and strategic Q&A

Content


  • Section 1: The Need for Marketing Measurement
    • 1.1: Why Accountants Despair of Marketing and Impose Budget Cuts
      • Marketing effectiveness is a concern
    • 1.2: What does Marketing Measurement Provide?
      • Will measurement change spending?
      • Will measurement change growth?
      • Will measurement change how management feel about the marketing team?
      • What can be measured?
  • Section 2: Basic Marketing Return Measurement Principles
    • 2.1 Quick History of Return-on-Investment (ROI)
    • 2.2 Differences Between ROI in Marketing and Finance
    • 2.3 Financial Facts and Fallacies when Measuring Marketing ROI:
    • 2.4 Challenges of Applying the ROI Formula
    • 2.5 Where ROI Goes Wrong
    • 2.6 ROI Formula Key Limitations
    • 2.7 Reasons Pharma Marketing ROI Calculations Fail and How to Avoid Them
    • 2.8 Concerns with Using ROI Formulas for Guiding Marketing Decisions
      • Boost marketing budget return, not top line profit and brand value
      • Assess only what is easily measurable
      • Optimise specific individual marketing activities
      • Analysis of historical data in a constantly changing environment
    • 2.9 Summary of ROI
  • Section 3: Specific Pharmaceutical Industry Challenges that affect the Measurement of Marketing
    • 3.1 Declining Growth
    • 3.2 Empty Pipelines
    • 3.3 Customer Alienation
      • Public image and perception
      • Price
    • 3.4 Tightening Budgets
    • 3.5 Investor Returns
    • 3.6 More Competition
      • Increased number of competitors
      • Legally aggressive competitors
    • 3.7 Impact on Marketing
  • Section 4: Metrics Progression: From Activity Tracking to State-of-the-art Analytics
    • 4.1 Activity Tracking
      • Case study 1: Asacol website (US)
      • Case study 2: iPhysicianNet eDetailing study (US)
    • 4.2 Campaign Measurers
    • 4.3a Marketing Mix Analytics Using Historical Data
    • 4.3b Marketing Mix Analytics Using Analogue Data
    • 4.4 Internal Marketing Database Tracking Combined With Analytics
    • 4.5 Predictive Analytics Using Validated Current Market Perception Data
    • 4.6 Brand Optimisers
    • 4.7 Summary
  • Section 5: More Accurate Predictive Metrics to Improve Financial Performance
    • 5.1 The Eularis System
      • Phase 1
      • Phase 2
      • Phase 3
      • Phase 4
      • Phase 5
    • 5.2 Summary of Approach
    • 5.3 Case Study: A Brand in Decline
      • Current picture of brand
      • Budget allocation
      • Actions and results
    • 5.4 Comparison across a category
  • Section 6: Assessing Performance of the Marketing Mix
    • 6.1 Product Messages and Market Share: Are they Working?
      • Many brands do not get the messaging right.
    • 6.2 Measuring the Financial Return of a Sales Force
      • How to improve the bottom line performance of the sales force
      • Case study: primary care brand stagnated
    • 6.3 Bridging the Gap Between Sales and Marketing
    • 6.4 How to Know if Advertising and PR is Increasing Bottom Line Returns?
      • Advertising analytics
      • Case study: underperforming advertising
      • Measuring PR return
      • Example of PR component measurement for a pharma brand
    • 6.5 How to Measure Patient Compliance and Adherence ROI
    • 6.6 Measuring Speaker Programme ROI Compliantly
      • U.S. regulatory compliance issues
      • U.S. continuing medical education ROI standards
      • A new compliant way to measure CME bottom line return, but not ROI
      • Case study: CME measurement
    • 6.7 Can eActivity be Measured and How Should the eMarketing Mix be Allocated?
      • How to plan the optimal internet portfolio
    • 6.8 Measuring eDetailing
  • Section 7: Accurately Measuring Pharma Brand Situations like Pre-launch Brands, Generics and OTC
    • 7.1 Measuring Market Share and Sales Potential of Pre-Launch Brands
      • Eularis brand potential analytics case study
    • 7.3 Generics, Speciality and OTC Brands
      • Generics overview
    • 7.3 Approaches to Generic Marketing
      • Generic differentiation other than price
      • Generic reps
      • Branded generics
      • Case study: generics analytics
    • 7.4 Applying Analytics to Pharma OTC Brands
  • Section 8: Measuring Mutiple Brands and Across Regions
    • 8.1 Pan-Portfolio and Pan-Country Analytics
      • Case study: measuring a company's performance
      • What was uncovered about current practices?
      • What the company did
    • 8.2 Measurement of Corporate Reputation
      • Corporate reputation and impact on brand bottom line
  • Section 9: Customer Relationship Management and Technology Analytics?
    • 9.1 Measuring the ROI of CRM Approaches
      • How do you know something is wrong with your CRM roll-out?
      • How do pharma companies use CRM?
      • Getting value from CRM in pharma
      • Case study: a failing CRM system
  • Section 10: Using Marketing Measurement in your Organisation
    • 10.1 Strategic Measurement Recommendations for the Pharmaceutical Industry
      • What are my competitors doing? How successful are they?
      • What if I do not have doctor level, or brick level, prescribing data?
      • What will European marketers do as the prohibition of brick level data rolls out after 1st April 2007?
      • How will regulation changes affect the way my measurement is structured?
      • Will measurement result in better informed CFOs, who don't want to cut my budgets?
      • Conclusion
  • List of Figures
    • Figure 1.1 Definitions of marketing Return-on-Investment (ROI)
    • Figure 2.1 Relationships between revenue, gross margin, and return for a discrete marketing investment
    • Figure 2.2 The relationship between maximum profit and maximum ROI
    • Figure 3.1 Pharmaceutical market growth MIDAS MAT data, June 2005
    • Figure 3.2 Clippings from various magazines around pharmaceutical industry image
    • Figure 3.3 Article in Business Week 'Going Broke To Stay Alive' January 2006
    • Figure 3.4 Growing costs and concerns about Federal Medicare/Medicaid spending
    • Figure 3.5 National healthcare spending as a percentage of GDP
    • Figure 3.6 Increasing generic drug approvals and speed in approval in the U.S.
    • Figure 4.1 The 'ROI' continuum
    • Figure 5.1 Areas analysed by the Cambell Belman system
    • Figure 5.2 Example of an overview picture of a brand
    • Figure 5.3 Sample brand overview in a confidence graph
    • Figure 5.4 Brand position six months prior to engaging Eularis
    • Figure 5.5 Brand position at the time of initiating a Eularis analysis
    • Figure 5.6 Sample market to score predictor tables
    • Figure 5.7 Sample market to score predictor tables
    • Figure 5.8 Rep detailing effort allocation recommendation
    • Figure 5.9 Communication focus and budget allocation recommendations
    • Figure 5.10 Picture of brand six months after Eularis engagement
    • Figure 5.11 Comparison of brand over six months
    • Figure 5.12 Comparison of actual and predicted market shares for brands in a category
    • Figure 5.13 Comparison of UK angiotensin plain brand rep detailing quality
    • Figure 6.1 Comparison of messages with maximum prescribing impact for one therapy category
    • Figure 6.2 Demonstration of sales force growth and corresponding poor Rx growth
    • Figure 6.3 Wall Street Journal headline about Pfizer sales force cut
    • Figure 6.4 Brand position when first analysed by Eularis
    • Figure 6.5 Reallocation of focus for reps as recommended by Eularis
    • Figure 6.6 Results six months later after changing rep activity focus and time allocation within a sales call
    • Figure 6.7 Advertising measures, UK
    • Figure 6.8 Analysis of advertising campaign breakdowns and impact on market share
    • Figure 6.9 Analysis of advertising campaigns and impact on market share after six months of implementing changes recommended
    • Figure 6.10 Compliance/adherence rates for different therapy areas
    • Figure 6.11 Brand with poor perception of compliance by doctors reducing their prescribing of that brand
    • Figure 6.12 Key areas for patient analysis
    • Figure 6.13a Picture of adherence/compliance for the brand (Patient data) at Beginning of Eularis analysis
    • Figure 6.13b Picture of adherence/compliance for the brand (Patient data) 6 Months Following Eularis analysis
    • Figure 6.13c Comparison of adherence/compliance for the brand (Patient data) pre and post Eularis recommendations
    • Figure 6.14 Position of brand with previous problem of poor perception of compliance by physicians
    • Figure 6.15 Key areas for analysis
    • Figure 6.16 Picture of the brands' CME
    • Figure 6.17 Picture of the brands' CME after following recommendations
    • Figure 6.18 Picture of eDetailing contribution to market share
    • Figure 6.19 Recommendations made around components of the eDetail
    • Figure 6.20 Picture of eDetailing contribution to market share after following recommendations
    • Figure 7.1 Key areas analysed for Nexium
    • Figure 7.2 Nexium market position at launch
    • Figure 7.3 Nexium market position six months post launch
    • Figure 7.4 Percentage of respondents by target audience who had misconceptions about generic drugs
    • Figure 7.5 Eularis analytics of Venlor XR in October 2006
    • Figure 7.6 Eularis analytics of Effexor XR in October 2006
    • Figure 7.7 Eularis analytics of Lilly Fluoxetine in October 2006
    • Figure 9.1 Reinartz, Krafft and Hoyer CRM model
    • Figure 9.2 Key areas of a company's CRM system examined
    • Figure 9.3 Eularis analytics of the CRM system for one company
    • Figure 9.4 Eularis analytics of the CRM system for one company
    • Figure 9.5 Comparison of CRM results for the two time periods.