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Pharmaceutical Marketing Club

Pharmaceutical Marketing Club. of Quebec (PMCQ). Advertising Effectiveness with Reference to:. Sales Activity. Journals. D-T-C. Internet. C. Marshall Paul. PERQ/HCI Corp. April 17, 2001. Pharmaceutical Marketing Club of Quebec. April 17, 2001. I. US Trends in ROI. II.

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Pharmaceutical Marketing Club

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  1. Pharmaceutical Marketing Club of Quebec (PMCQ) Advertising Effectiveness with Reference to: Sales Activity Journals D-T-C Internet C. Marshall Paul PERQ/HCI Corp. April 17, 2001

  2. Pharmaceutical Marketing Club of Quebec April 17, 2001 I. US Trends in ROI II. US Trends in Pharmaceutical Promotion MD - Detailing  Consumer - TV  III. US Trends in D-T-C IV. US Trends in Internet Usage V. Conclusion VI. Implications for the Future

  3. Promotion Effectiveness of Media Mix on Message Association (All MD's) % Association 100 90 80 57 49 70 45 60 34 50 40 16 30 5 20 10 0 No Print Detail Detail & Detail & Detail Promotion Only Only Print Sales Aid & S.A. & Print Message Base 199 375 112 136 40 1023 1st Choice Therapy 3 3 8 13 13 17 Market Share 1.1 3.6 5.9 8.4 5.3 9 Pt Chg in Shr 0.5 0.7 -0.1 1.7 -0.1 2.3

  4. CTS-2000 ROI Analysis (from a study of 68 campaigns 1995-1999 136,000 MDs) 72% of print promotion raises the ROI from  detailing. Campaigns Studied # % Print raised detailing's ROI 49 72% Print lowered detailing's 19 28% ROI 68 100%

  5. CTS-2000 ROI Analysis Effective Campaigns (N = 48 Campaigns) 4 2.59 38% 2.29 3 1.88 2 1 0 Print Detailing Print + Detailing

  6. CTS-2000ROI Analysis Analysis of Effective Campaigns by Product Characteristics Source: CTS-2000, 1995-98

  7. Detailing is Becoming Less Efficient "The number of pharmaceutical representatives  has ALMOST DOUBLED since 1993"* "The number of sales calls has remained almost  flat (38 million [1993] to 42 million [1997])* "43% of representative visits ended at the  receptionist's window"**  "87% of sales calls to HVP's are <2 minutes"

  8. Detailing is Becoming Less Efficient (cont'd) "The ROI from detailing has dropped significantly  as the sales forces have increased"*** Avg*** # of Avg # of Years Detailing Tests Reps**** ROI 1994-96 40 3.34 / 1.00 44,500 1997-99 35 1.94 / 1.00 57,600 *Scott-Levin ( , December 17, 1999, pg 3) MM&M Media FAX **Health Strategies ( , Volume 8, Number 1, pgs 2,3) MM&M Media FAX ***PERQ/HCI ****1994-97: Medical Advertising News 1998-99: (April) 1999 Pharmaceutical Executive Note: Sales force size generally includes only 50 pharmaceutical companies. Some suggest the figure for the year 2,000 is close to 70,000 reps

  9. Not All D-T-C Promotion is Efficient Most researchers agree that in general less than half  of TV provides a positive ROI. PERQ/HCI research confirms that in many cases TV  is not as strong at communicating a message as print. In addition, print usually provides a greater ROI than TV. Response to DTC promotion varies greatly depending  on a product's rank in market share.

  10. Consumer-CTS Media Mix Message Association % Correct Msg Assoc. (14 campaigns*) 25% 22% 20% 15% 12% 9% 10% 4% 5% 0% No Magazine TV Mag + TV . Promotion *Fourteen campaigns (allergy market) studied used both magazine and TV promotion

  11. Media Mix Consumer-CTS ROI With and Without Market Leader All Prods w/o Mkt Leader $10.00 $7.84 $5.68 $5.49 $4.64 $5.00 $2.50 $1.73 w w/o w w/o w w/o $0.00 Magazine TV Mag + TV Source: PERQ/HCI Consumer-CTS. Norms based on 14 campaigns that contained both TV and magazine advertising in the allergy market.

  12. Direct-to-Consumer Ad Expenditures: Rx Brands (Gross $) LNA/MEDIA WATCH Multi-Media Service $ In Millions 2400 DTC Est. 2200 2200 2000 1800 1590.2 1600 1400 1173.4 1200 1000 843.8 800 595.5 600 363.8 400 240.7 163.3 157.1 200 51.7 43.5 0 90 91 92 93 94 95 96 97 98 99 0 0 Note : PERQ/HCI Class Summary & All Journal Ad Expenditures CMR LNAClass 560

  13. DTC Promotion Expenditures* October 1999 - September 2000 Other Magazine TV Total Total DTC 131197 702113 1393922 2227230 Healthcare 6% 31% 63% 100% *Source: CMR

  14. IV. US Trends in Internet Usage

  15. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Objectives Trend computer/Internet usage patterns over the  years Identify the most frequently visited sites  Profile users to evaluate how representative they  are of the physician universe

  16. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Details Sample: 7,000 physicians in 23 specialties Only doctors in active practice Timing: Updated semi-annually Latest edition December '00

  17. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Table 1 Computer Use/Access Internet Specialty Avg. Range Computer users 90% 75% - 97% Access the Internet 86% 63% - 95% % Universe -- All Specialties

  18. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Table 2 Method of Internet Access Specialty Avg. Range Consumer Online Service 74% 57% - 85% Online Service Designed 28% 12% - 41% for Physicians % Universe -- All Specialties

  19. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Table 3 Uses of Internet Specialty Avg. Range Personal/Entertainment 12% 2% - 21% ONLY Professional ONLY 3% 1% - 8% Pers/Ent & Prof 71% 43% - 90% Professional Use 74% 45% - 93% % Universe -- All Specialties

  20. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Table 4 Professional Uses of Internet Specialty Avg. Range Access Medical Sites 70% 41% - 93% E-Mail 43% 23% - 67% Conferencing/Chatting 5% 1% - 9% % Universe -- All Specialties

  21. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Table 5 Types of Medically Related Sites Accessed Specialty Avg. Range Medical Library Sites 52% 23% - 81% (Medline, etc.) Online Services Designed 33% 20% - 45% for Physicians Medical Association Sites 32% 12% - 48% Medical Publisher/ 29% 11%-50% Journal Sites % Universe -- All Specialties

  22. Internet Usage Study -- 12/00 Internet Usage Study -- 12/00 Table 5 (cont'd) Types of Medically Related Sites Accessed Specialty Avg. Range Government Sites 28% 14%-70% (CDC, NIH, etc.) University/Medical 26% 14% - 51% School Sites Drug Specific Sites 14% 4% - 26% Pharmaceutical Mfr Sites 8% 2% - 13% % Universe -- All Specialties

  23. Conclusion • Both political and economic forces will push the industry to become more efficient in its marketing practices

  24. VI. Implications for the Future

  25. Implications • If a universally known, well-respected Internet site emerges, the Internet could become the centerpiece of the industry’s communication efforts to physicians and consumers • In this scenario, promotion, both on the Internet and ancillary (detailing, TV, direct mail, journals, magazines, etc.) would be used to reinforce the educational messages contained on the Internet. • This would represent a dramatic change in how pharmaceuticals are marketed!

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