Improving Return on Investment in Pharmaceutical Marketing

Published by: Decision Resources

Published: Jun. 17, 2008 - 28 Pages

Table of Contents

Executive Summary

Strategic Considerations

Stakeholder Implications

Caught Between Scylla and Charybdis

Radical Changes in Marketing Strategies

Evolution of the Pharmaceutical Marketing Dilemma

The Great Pharmaceutical Marketing Spend Fest

Risk and Return

The Cola Wars and Mutually Assured Destruction

Return on Investment

Marketing Efficiency Considerations

Overarching Goal of Improving Marketing Efficiency

Improving ROI Measurement

Pitfalls of ROI Modeling

Metaphorical ROI Straightjacket

Key Issues for Effective Marketing

Marketing Quality

Pharmaceutical Marketing Audits

A Management Tool

Marketing Capability

The Changing Nature of Pharmaceutical Marketing

Customer Configurations

New Pharma Marketplace

Three-Tiered Approach to Fixing the Pharmaceutical Marketing ROI Problem

Strategic Foundation

The Multimarket Company

The Execution

The Reality Check

Figures

1. A New Set of Market Conditions Refl ected in Customer Strategies to Contain Volume and Price, Late 1990s

2. 35-Year Creep of Pharmaceutical Marketing and Selling Investments

3. Pharmaceutical Marketing Spend Cascade, 2002

4. U.S. Pharmaceutical Salesforces and the Law of Diminishing Returns: As Size Increases, Access Falls

5. Marketing Audits: Ten Most Common Findings

6. Pharma Marketing Audit Process

7. Maintaining Synergy in a Drifting Business Landscape

Sidebar

Marketing Audits: 14 Pharmaceutical Companies in 36 Countries

Abstract

• Pharmaceutical companies face extremely volatile economic, regulatory, technological, and competitive conditions. What strategies should companies employ in response to these challenging conditions? How does their approach to marketing need to change to succeed in this evolving market landscape?
• Pharma's marketing ROI has been declining. What impact has their burgeoning market spend had on their public image and on their relations with investors? What can companies do to improve their ROI?
• How do they maximize their marketing effectiveness?
• Marketing audits are widely used as diagnostic tools to examine a company's marketing efforts. What factors do these audits evaluate? What is the overall objective of these audits, and what benefits can they provide?

• Radical changes in marketing strategies: evolution of the pharma marketing dilemma, the great pharma marketing spend fest.
• Marketing efficiency considerations: ROI measurement, ROI modeling, the metaphorical ROI straightjacket.
• Key issues for effective marketing: marketing audits, management tools, marketing capability, changing customer configurations, the new pharma marketplace.
• Special feature-our analysis of pharmaceutical marketing audits: an analysis of 60 audits performed at 14 pharmaceutical companies in 36 countries, 10 key findings across companies.
• Three-tiered approach to fixing the marketing ROI problem: strategic foundation, multimarket companies, execution.

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