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Putting Promotion in Perspective: Part II - Timing, Mix, and Impact

Published by: Decision Resources

Published: Sep. 27, 2005 - 21 Pages

The price of this report has been reduced due to its age. The original price was $1,900 for PDF E-mail From Publisher.

Table of Contents


Overview

Methodology Underlying Our Analysis

Patterns in Promotional Activity

The Promotional Spend Mix

How Effective Is DTC Promotion?

Outlook for DTC Promotion




Table 1. Select Drugs Launched 1998-2003, Grouped by Total Annual Promotional Spend

Table 2. Summary of Findings of the Celebrex DTC Promotion Case Study, 2004

Table 3. Drug Information Survey of Arthritis Patients

Table 4. Drug Information Survey of Arthritis Patients




Figure 1. Total US Promotional Spend Activity as a Percentage of US Sales: Select Tier I Products

Figure 2. Total US Promotional Spend Activity as a Percentage of US Sales: Select Tier II Products

Figure 3. Total U.S. Promotional Spend Activity as a Percentage of U.S. Sales: Select Tier III Products

Figure 4. Trends in Pharmaceutical Promotional Spend Activity in the U.S., 2000-2004

Figure 5. U.S. Promotional Spend Activity Mix by Tier, First Full Year Following Launch

Figure 6. U.S. Promotional Spend Mix by Tier, Two to Three Years Following Launch

Abstract

Controversy surrounds direct-to-consumer (DTC) advertising, the segment of promotional activity that we focus on in Part II of “Putting Promotion in Perspective,” in which we expand our analysis of the issues outlined in Part I. We discuss several recently launched products whose promotional mix contains DTC advertising and consider how the mix might change in the future. To assist promotional decision making, we offer a three-tier method for characterizing new drugs and determining their promotional requirements. Because return on investment (ROI) in promotional activity, particularly ROI on specific components of that activity, is somewhat difficult to measure, we provide a model for measuring ROI in DTC advertising through the use of epidemiology data, sales data, and analysis of primary patient research. In addition, we provide insight from patients on the types of information they most value from pharmaceutical companies.

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