Transcript Pharmaceutical Marketing Characteristics

Pharmaceutical
Marketing at Merck
JOIN US IN BUILDING A HEALTHIER WORLD
Marketing at Merck
 Merck Human Health Divisions
 Asia Pacific
 Europe, Middle East, & Africa
 The Americas (US Human Health,
Canada, Latin America)
 Worldwide Human Health Marketing
 Merck Vaccine Division
 U.S. Vaccine Marketing
 Merck Vaccine International
Pharmaceutical Industry
Characteristics
 Highly Competitive but Fragmented industry
 Complicated business model with numerous
stakeholders
 Very Technical/Scientific products
 Major R&D expenditures and High Risk product
development environment
 Long Product-Development Timelines
Pharmaceutical Marketing
Characteristics
 Long Marketing-Planning horizons
 Highly regulated industry and highly regulated
marketing communications by FDA
 Primary targets: Healthcare Professionals and
Consumers
 Numerous “customers” with variety of information
needs requires multiple approaches to creating
marketing campaigns and communications
 Evolving selling environment
 Use of e-channel still in its infancy in our industry
STAGES OF PRODUCT
DEVELOPMENT
Basic
Research
Clinical
Studies
Regulatory
Approval
Role of Marketing
• Provide
• Recommend
background development
on market
• Define product
and product
profile needs
potential
• Define
comparators
• Input on
product
labeling
Product
Launch
• Finalize
strategy
Postlaunch
Marketing
• Monitor
performance
• Finalize pricing • Adjust strategy
• Recommend
and tactics
• Finalize
filing strategy
promotion
• Sequence
• Define
and branding
promotion
launch plan
• Define Outcomes
• Implement
• Manage
Research needs • Develop
launch
product
positioning
campaign
life cycle
• Develop market
and branding
• Finalize field
• Develop strategy
sales plans
Merck Marketing Principles
 Understand the customer’s perspective
 Anticipate and outmaneuver the competition
 Concentrate on selected audiences and behaviors
 Define the product’s distinctive value to
selected audiences
 Plan for sequenced growth throughout the product’s
life-cycle
 Shape customer’s perceptions
 Ensure that execution is efficient, consistent,
and well integrated
 Track results and re-evaluate decisions
Brand Management is the HUB of
pharmaceutical marketing
Market
Research
Marketing
Communications
Professional
Sales
Brand
Management
Customer
Marketing
Business
Development
Pricing
Analysis
Medical
Services
Pharmaceutical
Branding
Currently: Limited penetration
and use of e-channel
 Unclear regulatory guidance
 Limited e-commerce opportunity except with
major wholesellers—EDI works fine
 Difficult ROI measurement with consumers
 Commitment to personal selling model with
physicians
 Challenging privacy issues
 Physician role as “learned intermediary” has
to be considered and respected
Consumers are increasingly being
asked to take an “active role” in
managing their healthcare
 Numerous treatment options and
decisions to consider. Consumers are
expected to “partner” with their
physicians to consider risks and
benefits and make choices.
 Third-party payers and employers are
adopting cost-sharing models of
healthcare coverage. (Spending
accounts, 3-tier co-pays, etc.)
Healthcare information is a
Primary destination on the web
The Web Offers:
Speed
Convenience
Robust Resources
Anonymity
BUT brings concerns about:
Credibility/Accuracy
Privacy Protection
Relevance
The changing e-Health
Landscape:

In 1999 there were 750
health-information web
sites

Majority based on
“advertising revenue”
model

Today there are ~ 50 such
properties
 400 filed for
bankruptcy
 100 were acquired and
then went out of
business
 200 closed or
disappeared with no
explanation
Studies estimate between 73M100M US Adults have gone online to
look for health information

73M or 62% with internet access using the Web to
look at Healthcare information

68% of health seekers say the material affected
their decision about treatments and care for
themselves or a loved one.

61% of health seekers said the internet has
improved the way they take care of themselves

Top Reasons:
 93% looked for info about a particular illness or
condition
 65% look for nutrition, exercise, weight control advice
 64% looked for info on prescription drugs
 55% gathered info before visiting a doctor
Source: “The Online Health Care Revolution”, “Vital Decisions”; Pew Internet & American Life, 11/26/00, 05/22/02
The internet provides new
Opportunities for
Pharmaceutical Companies
 We have complex, highly technical products
 The empowered consumer needs information they
can learn from and use in discussions with their
physician
 Educated customers have always been our best
customers and we have a significant offline
commitment to education
 We are now bringing that commitment online to
better meet our customers’ needs through the web
channel
 This new channel requires us to evolve from a
“push” to a “pull” model as consumers demand
greater control and convenience in how they access
online healthcare information
What has Merck Done? Create
Online Websites with Merck Product
Information
 Integrated part of our marketing campaigns
that provide additional information online
 Can be accessed directly (www.product.com)
or through links at our corporate site, 3rd
party sites, or from banners throughout the
web
 Originated as “Brochureware”
 Evolving towards greater robustness,
interactivity, customization and permissionbased marketing approach
 Primarily Consumer Focused
 Developing an educational/ less advertising
oriented approach to healthcare professionals
Some Examples of Websites
What else has Merck Done?
Create Online Medical Education
Resources for physicians and patients
 MerckMedicus is a health-information portal designed to
support the medical-education needs of physicians
 MerckSource is a health-information resource for patients
 Both sites offer objective, credible,
evidenced-based resources to support
the doctor-patient dialog
 They deliver online on Merck’s
commitment to support the medicaleducation needs of customers
 “Merck Manuals” of the 21st Century
Issues for our Industry
 The web promises instant access to all
information, yet our regulated environment
poses limits on how we can use this channel to
meet customer expectations
 Our traditional “product-centric” approach vs the
“customer-centric” web environment requires
adjustments in how we create and offer
information to customers
 Supporting and respecting the doctor-patient,
payor and employer relationships while
adequately serving the consumer is a
challenging balancing act
 Privacy Protection is critical. Healthcare status
impacts employment and social relationships.
Where are we headed in the future?
Towards more integrated offerings
Relationship
Fully
Integrated
Information
& Services
Personalization
High Trust
High Value
Customization
Limited
Interactivity
Enriched Product
and Medical
Education sites
Product
Info
Corporate
Info
Discrete
Sets of
Information
Brochureware
PUSH
Corporate,
Product Focus
PULL
Customer
Focus