The main arguments of this paper are threefold:- 1. Firstly, that although the concept of global marketing of pharmaceutical products has many attractions, its application should be examined with extreme caution. In particular, that the onus of proof that a global brand can be successfully-created lies with its protagonist. 2. That a major obstacle to the development of global brands (or markets) lies more in substantial national differences in healthcare cultures and policies than in differences in marketing structures. That, while pharmaceuticals companies have excellent systems to track the size and composition of their markets, they devote less attention to the structure within which their markets operate.
The downward pressure on pharmaceutical product prices and the level of profitability is already forcing companies to consider how to cut costs and to gain the most out of the money that is spent. An improvement in the way resources are allocated will be the focus of all companies in the latter half of the 1990's and beyond. Although a great deal of information via audits and primary research is available, it is still surprising that relatively few companies are interrogating the data via econometric analysis to help understand the marketing and advertising forces that affect a specific brand's behaviour and the magnitude of these effects - a procedure used in the consumer area since the 1960's. It is vital to know what the likely effects will be on brand performance when considering a change in the promotional spend and the allocation across different media. It is also essential to understand the pricing dynamics in the market to assess the likely response to price changes. Short to medium term forecasting can be made much sharper and resources used more wisely if these issues are better understood. Furthermore, the need to review the return on the promotional investment from different brands within the company becomes a logical step for the marketing director. In future, despite the changing customer base, the attitudes of managed care groups towards different scenarios can be monitored via primary research using "choice-based conjoint" investigations to provide additional input for short to medium forecasting accomplished by econometric analysis. Creating great efficiency and helping to save valuable resources can also help to save jobs.
A forecast is the summary of all of the qualitative and quantitative, primary and secondary research on an issue, therapeutic class, or business opportunity. The forecast represents the best judgment of the market research group which combines market research results with experience, intuition, common sense, knowledge of the market place, and a good crystal ball. Forecasts drive key business decisions! In a recent decision of whether or not to form a project team for a new product, the scientists told us that much of the decision was going to be based on our forecast of the product's potential.
The market research group within Strategic Product Development in SmithKline Beecham Pharmaceuticals embarked on concept evaluation of a new drug, then in early clinical development. In a workshop context, bringing together the whole project team of marketing and scientific/clinical personnel, and moderated by an outside market research agency, four modular product concepts were agreed by all. These ranged from a description with a 90% chance of attaining its features in clinical trials, to a 'blue sky' profile with an estimated probability of no more than 10%. Once these concepts had been agreed, all four were tested with practising clinicians, who then played their part in the evaluation process by offering their views on the appeal of each and the clinical data required to support the various claims. The third phase involved quantification of likely uptake of the product, testing two separate concepts constructed on the basis of the findings of the previous research phase. This 3-phase project has yielded benefits in several respects. It has given us a simple and practical approach to early concept testing with an uncertain profile, taking a range of possible trial outcomes into account. Secondly, the close collaboration with R&D has helped to forge team spirit and ensure commonality of purpose among all those involved in development of the new compound.
This paper is divided into two parts. The first part discusses some of the cultural complexities involved with marketing in Japan, with particular emphasis on the case of the Japanese marketing of Rulid, an oral antibiotic co-promoted in Japan by Roussel Morishita and Eisai. Having been launched two years previously, Rulid had achieved a position as one of the leading antibiotics in its class; however, sales were not as high as originally expected. The reasons for this were analyzed internally; however, the local product management team and the local foreign manager were unable to arrive at a consensus as to how to properly address the problem. The foreign manager believed the product needed to be re-positioned, while the Japanese took the position of "why attempt to fix something that isn't broke" and planned to simply increase the level of product promotion with the original message. To objectively address this issue in a way that would not only be "face-saving" for all involved, but enhance the effectiveness of the product's marketing position, it was decided to undertake a survey of target users (doctors) on this subject. The second part of this paper describes the research design and the results obtained from that study. The findings outlined deal with the portion of the survey that evaluated the promotional materials of the top 3 competitors. The respondents were shown one of three journal ads and asked to evaluate it in detail. Specific factors analyzed include perceptions of the visual and ad copy (independently and together), perceived effectiveness, and lastly, general likability.
The sales force is the primary promotional vehicle between the pharmaceutical company and the GP universe. It is a large and labour-intensive function which is expensive to maintain, complex to structure and control and as in all people- based functions attracts inefficiency and potential for failure. This paper focuses on the process of setting and identifying a number of areas where management action for improvement would be appropriate. The responsibility for the quality and process of salesmanship is split between the Sales Manager and the Marketing Manager in the majority of pharmaceutical companies. The former recruits, trains and "polices" the field activity whilst the latter designs the tools of selling. This split in responsibilities is the cause of a significant weakness in the quality of salesmanship. The selling of a complex pharmaceutical product requires a considerable interplay with the current beliefs and habits of the GP and the assimilation by the GP of a new set of behaviours for himself, his patients and his colleagues. This complex interplay has to be understood by the Sales Manager and by the designer of the materials which support the selling process. The paper also identifies four problem areas between the representative and the GP all of which negatively influence the normal process of salesmanship and leads to observed symptoms of inefficiency. Recent research amongst sales and marketing managers indicates a desire for sales managers to have wider experience of marketing and market research issues. How this will be achieved is set out in guidelines for improving selling skills and ultimately for changing the organisational responsibilities for the selling function.
In today's rapidly changing climate it is vital that companies maximise the return from their investments. The sales force is one of the largest investments, and companies have added to that investment by introducing computers and electronic territory management systems (ETMS). In the writers view, the opportunity to fully use these systems to help redirect the way in which the sales force operates, and improve on its return, has not yet been grasped. As a result, only marginal benefits have stemmed from ETMS. Too much reliance has been placed on the ability of the representative to change into a territory manager simply by providing ETMS, and too little emphasis has been placed on how the data being generated could be used. Furthermore, the district managers have a vital role in the management of the changes that need to take place in sales force direction, and yet they have tended to be left out of these developments. This paper argues that information technology can be used to help in periods of culture change, but that a knowledge base and a clear strategy is required for this to be achieved. The development of a strategy that is based on a clear understanding of how to get the best return from a sales person's time is required. Within an organisation there are few people who have the business and analytical skills to build such a strategy, or model. Market research is one discipline that could have an important role to play in this area.
The aim of this paper is to outline some of the cultural issues which we as researchers need to take into consideration with regard to international pharmaceutical marketing research projects. The wealth of data available in the pharmaceutical arena clearly shows that doctor prescribing habits throughout the world are frequently diverse. Therefore when conducting marketing research it is essential to recognise this diversity, and design the research accordingly.
The paper summarizes the results of the commercial research project. It answers question if it is possible to enter the medicament distribution market in the Czech republic and what are the main barriers to enter. After a brief description of macroenviromnent and mesoenvironment there is a methodology of project. The third part analyzes both parts of distribution process - customer and supplier. It describes needs of drugstores and their level of satisfaction with the distribution work. It also evaluates the relationship between producer and distributor. The conclusion brings a list of recommendations for present and potential distributors so they would become more competitive.
The Gesundheitsstrukturgesetz (GSG) which was introduced in January 1993 has changed the German Health Market dramatically. Prior to the introduction, the health market was structured by more or less equal influential participants. The pharmaceutical industry even could be regarded as primus inter pares. After the introduction the Ministry of Health became the most powerful force in the health care system. From then on, the ministry dominated all developments and decisions. Each of the other participants found themselves in the situation of reacting instead of acting. Therefore, the Ministry reached absolutely its aim. The costs of health care system could be reduced by 10 billions DM. The doctors in private practice were worried of loosing money. Their obliging adaptation to the governmental aims made the huge cost reduction possible. The main loosers of the GSG were the pharmaceutical industry, the pharmacists and the population. The pharmaceutical industry had to figure de- creasing profits and turnovers. They had to reduce their staff and their in- vestments. The Positiv-Liste which will show up at the end of 1995 will cause again trouble for the financial situation of the pharmaceutical industry. It is very doubtful that the OTC-market will substitute the losses of the prescription- market. The chance of the future is the evolution of holistic therapy concepts instead of the simple sale of drugs.
This paper describes the exploratory part of a larger study on management of innovation, focussing especially on the interface between marketing and R&D (Research and Development). Marketing and R&D produce two critical flows of knowledge that have to be integrated in the interface. In this study we focus on one specific industry, namely the innovative pharmaceutical industry because of its high marketing and R&D intensity. Our conceptual model is based on the literature and on exploratory case studies of four pharmaceutical companies where variables are identified that seem important. With respect to the marketing - R&D interface, the qualitative data from in-depth interviews, company library research and financial analysis of the four companies support three main arguments. First, organizational structures change very often which implies that organizational flexibility (adaptability of the company) may be an important aspect in explaining innovative performance. Secondly, there is a number of ways to organize the interface, and there is no one best way. Third, instead of studying the Marketing - R&D interface, it is better to study the Marketing - Development and Marketing - Research interface separately. In the future, a survey will be used to generalize these and other findings, and to examine the relationship between different aspects of integration between Marketing and R&D and innovation success more in-depth. An experiment with a computer simulation game will be used to study the interface between marketing and R&D at the individual level.