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18 CMYK




   Feature    Shifting paradigms of
              communication strategies of
              pharma marketing
              Vijay Wagh
              SIES College of Management Studies (SIESCOMS), Nerul, Navi Mumbai, India



                 Marketing communication aims at influencing             media available and aim to address many target audience in a
              attitude and behavior of the buyer and public at large     single style known as “mass communication.” The methods
              related to a particular product. The marketer, through     available in this regard are:
              proper communication channels, always strives to           1. Advertisement.
              convey that the right product is available at the right    2. Public relations.
              place at the right price. All the promotional activities   3. Sales promotion.
              associated with marketing communication aim to             4. Direct marketing.
              satisfy the existing or latent demands of a set of            In order to become effective as a marketer, a marketing
              existing or potential customers, which finally results     manager, besides personal selling, has therefore to adopt other
              in proper exchange of goods/services for a financial       options as mentioned above to communicate with existing as
              consideration. In a competitive world, the                 well as potential buyers. To what extent or mix, one or more
              communication strategy should not only be effective        of the above strategies could be adopted depends on the
              but also aggressive enough to create a clear-cut           professional acumen of the marketing manager besides the
              impression and positioning in the minds of the             context and the permissibility under statutory provisions. For
              customers. The same is true for pharmaceutical             example, by and large, personal selling continues to be the
              industry as well with an added dimension. Since all        backbone of pharma marketing in the Indian context. This is
              customers (doctors) are knowledgeable in their own         primarily on account of the nature of market, products and
              domain, the communication should be persuasive and         statutory provisions as a result of which personal selling has
              convincing in knowledge and content so that it can         emerged as the most important method of contacting and
              motivate doctors to prescribe a specific brand. The        communicating with doctors and channel members. The prime
              marketing manager has, therefore, to adopt and choose      drivers for the above trend are:
              an effective promotion mix and integrate them in a         1. Legal provisions do not, by and large, permit pharma
              way that the methods of communication work as                  companies to use TV or press as a method of
              complementary and supplementary to each other.                 communication with direct consumers.
              There is, therefore, an imperative need for an ideal       2. The nature of products is highly technical and scientific in
              mix both for content of communication and its                  nature and directly related to health of consumers, as a
              promotion.                                                     result of which, they have to necessarily depend on doctors’
                                                                             advice and recommendations.
                  Integrated communication mix                           3. Awareness among masses about medicine and related
                                                                             health products is not high.
                 The two major elements in communication mix                Therefore, pharma marketers have great limitations on using
              are:                                                       advertising, public relations or other sales promotion methods.
              a) Personal communication.                                 The pharma marketers can however use occasions of medical
              b) Nonpersonal communication.                              seminars, conferences to publicize their products and services.
                                                                         Similarly, they can plan sales incentives at the level of their
                 While personal communication solely depends on          channel members (stockists and retailers) and sales force level.
              face-to-face meeting and discussion between company        However, this benefit cannot be extended to the final
              representatives/sales people and the customer,             consumer, i.e., patients.
              nonpersonal communication methods try to use other            Direct Marketing methods, however, can be used with
                                                                         limited audience, especially with doctors, through medical
                                                                         journals. For example, “Organon Pharma” used to advertise
              Address for correspondence:                                their products in “British Medical Journal” and gift it to their
              E-mail: vijay@siescoms.edu                                 target doctors. Many pharmaceutical companies give

18 Pharma Times - Vol 38 - No. 7 - July 2006
CMYK 19


                                                                              Wagh V: Shifting paradigms of strategies of pharma marketing

          advertisements in medical journals and circulate them among            Future of pharma marketing
          their target doctors.
             In view of the limitation of routes other than direct contact
                                                                                 communication
          selling, the role of personal selling in the Indian context has
          become extremely crucial. In a market where products and               Some of the major future trends of pharmaceutical
          strategies are in many cases “me-too” in nature, the battle is      communication will be as under:
          more between talents of different selling teams. A team of          1. Web-based communication.
          trained sales force with effective communication, presentation      2. E-mails (to doctors, chemists and distributors, advertising
          and persuasive skills has a decisive role in winning the                channel).
          marketing war.                                                      3. Advertising.
             To sustain an effective marketing campaign, a company
          needs to build a team of assertive, responsible marketing           1. Web-based communication
          professionals and strategies in place to augment their efforts.        Some of the leading Indian pharmaceutical companies have
          The role of this team is not only to do direct selling but also     already started using their own website-mechanics wherein
          to undertake innovative activities that help the company in         detailed (medical and commercial) information about each brand
          supporting the direct selling activities. For example, companies    is being hosted. It helps in educating the consumers (doctors
          like Cipla courier medical literature, sales promotion bulletins,   and patients) about products those companies are selling. In an
          samples and offer letters to doctors, chemists and stockists, in    increasingly knowledge-centric scenario, this approach obviously
          addition to the personal communication by their medical             augments awareness about a company and its products.
          representatives. Similar strategies are increasingly followed by
          many Indian pharmaceutical companies.                               2. E-mails
                                                                                 The visit of MRs can be supported by e-mails to doctors,
                                                                              chemists and distributors. This can be a highly individual and
             Direct marketing methods
                                                                              customized channel of communication. Some e-mails can be
                                                                              sent to consumers/patients under the pretext of extended
             The word “direct marketing” is possibly a misnomer; it           medical service, especially to diabetic, cardiac patients who
          should rather be termed as direct contact method/                   consume these prescription drugs for long periods. This
          communication method. It helps to establish direct                  communication strategy, besides taking objective feedback of
          communication channel between sellers and various                   the products and being inquisitive about well-being of the
          constituents involved in the selling process – like doctors,        consumers, can definitely lead to increased loyalty.
          chemists, distributors, among others. Direct communication
          methods aim at creating, recording and tracking the customer’s      3. Advertising
          response towards the products and services offered by the              In many advanced economies and countries, direct
          marketer over a period of time. They help in formulating            advertising of prescription drugs in mass media is permitted.
          marketing strategies as well as building long-term relationship     In the context of Indian marketing, this issue is highly debated
          with customers, resulting in increased brand loyalty.               due to low literacy and awareness about medicines and
             These methods are of great help to directly reach and deliver    possibility of misuse. But in the near future, this may be
          goods and services to consumers, and they help create data          permitted and could be an important communication method.
          base and measure the response of each individual customer.
          Some among the popular direct marketing media channels in
          vogue are:                                                             Conclusion
          a) Catalog.
          b) Direct mails.                                                       Effective communication to potential buyers, decision
          c) Telemarketing.                                                   makers, persons capable of influencing buying decisions,
          d) Fax.                                                             current buyers and people with referral power is the key to
          e) Internet/e-mail.                                                 success. It enables a marketer to sell his products/services
          f ) Interactive cable TV.                                           to customers through ethical but persuasive means. Successful
             In Pharma marketing, medical representatives (MR) do             marketers thus have to adopt proper blend of personal and
          usually carry out the function of personal selling wherein an       nonpersonal approaches to communication, depending on
          MR is expected to meet around 10-12 doctors and 4-6 chemists        the product as well as psyche of the customers. While the
          per day. Thus the total number of doctors visited in a month        former leads to demand generation, the latter, i.e., nonpersonal
          in a given sale territory would be around 250 to 280 doctors        communication helps in its sustainable retention. An effective
          and 125 to 150 chemists respectively. This is pretty low            marketing manager is one who can craft a proper mix of
          compared to the actual density of the population of doctors         communication strategy within the overall gamut of existing
          and chemists in a sales territory. In such a situation, direct      legal and statutory provisions of the country. Communication
          mail of samples, reminders and persuasive mails sent to the         strategies of pharma companies in India are expected to
          clients whom an MR could not meet could be of great use.            undergo radical transformation in years to come. The process
          These tools can also be used as powerful tools of                   has already started. What is needed is for some companies
          communication and brand recall strategy to supplement the           to take lead through some radical and innovative steps. That
          visit.                                                              will pave the way for others to follow.

                                                                                                           Pharma Times - Vol 38 - No. 7 - July 2006 19

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Vijay wagh feature1

  • 1. 18 CMYK Feature Shifting paradigms of communication strategies of pharma marketing Vijay Wagh SIES College of Management Studies (SIESCOMS), Nerul, Navi Mumbai, India Marketing communication aims at influencing media available and aim to address many target audience in a attitude and behavior of the buyer and public at large single style known as “mass communication.” The methods related to a particular product. The marketer, through available in this regard are: proper communication channels, always strives to 1. Advertisement. convey that the right product is available at the right 2. Public relations. place at the right price. All the promotional activities 3. Sales promotion. associated with marketing communication aim to 4. Direct marketing. satisfy the existing or latent demands of a set of In order to become effective as a marketer, a marketing existing or potential customers, which finally results manager, besides personal selling, has therefore to adopt other in proper exchange of goods/services for a financial options as mentioned above to communicate with existing as consideration. In a competitive world, the well as potential buyers. To what extent or mix, one or more communication strategy should not only be effective of the above strategies could be adopted depends on the but also aggressive enough to create a clear-cut professional acumen of the marketing manager besides the impression and positioning in the minds of the context and the permissibility under statutory provisions. For customers. The same is true for pharmaceutical example, by and large, personal selling continues to be the industry as well with an added dimension. Since all backbone of pharma marketing in the Indian context. This is customers (doctors) are knowledgeable in their own primarily on account of the nature of market, products and domain, the communication should be persuasive and statutory provisions as a result of which personal selling has convincing in knowledge and content so that it can emerged as the most important method of contacting and motivate doctors to prescribe a specific brand. The communicating with doctors and channel members. The prime marketing manager has, therefore, to adopt and choose drivers for the above trend are: an effective promotion mix and integrate them in a 1. Legal provisions do not, by and large, permit pharma way that the methods of communication work as companies to use TV or press as a method of complementary and supplementary to each other. communication with direct consumers. There is, therefore, an imperative need for an ideal 2. The nature of products is highly technical and scientific in mix both for content of communication and its nature and directly related to health of consumers, as a promotion. result of which, they have to necessarily depend on doctors’ advice and recommendations. Integrated communication mix 3. Awareness among masses about medicine and related health products is not high. The two major elements in communication mix Therefore, pharma marketers have great limitations on using are: advertising, public relations or other sales promotion methods. a) Personal communication. The pharma marketers can however use occasions of medical b) Nonpersonal communication. seminars, conferences to publicize their products and services. Similarly, they can plan sales incentives at the level of their While personal communication solely depends on channel members (stockists and retailers) and sales force level. face-to-face meeting and discussion between company However, this benefit cannot be extended to the final representatives/sales people and the customer, consumer, i.e., patients. nonpersonal communication methods try to use other Direct Marketing methods, however, can be used with limited audience, especially with doctors, through medical journals. For example, “Organon Pharma” used to advertise Address for correspondence: their products in “British Medical Journal” and gift it to their E-mail: vijay@siescoms.edu target doctors. Many pharmaceutical companies give 18 Pharma Times - Vol 38 - No. 7 - July 2006
  • 2. CMYK 19 Wagh V: Shifting paradigms of strategies of pharma marketing advertisements in medical journals and circulate them among Future of pharma marketing their target doctors. In view of the limitation of routes other than direct contact communication selling, the role of personal selling in the Indian context has become extremely crucial. In a market where products and Some of the major future trends of pharmaceutical strategies are in many cases “me-too” in nature, the battle is communication will be as under: more between talents of different selling teams. A team of 1. Web-based communication. trained sales force with effective communication, presentation 2. E-mails (to doctors, chemists and distributors, advertising and persuasive skills has a decisive role in winning the channel). marketing war. 3. Advertising. To sustain an effective marketing campaign, a company needs to build a team of assertive, responsible marketing 1. Web-based communication professionals and strategies in place to augment their efforts. Some of the leading Indian pharmaceutical companies have The role of this team is not only to do direct selling but also already started using their own website-mechanics wherein to undertake innovative activities that help the company in detailed (medical and commercial) information about each brand supporting the direct selling activities. For example, companies is being hosted. It helps in educating the consumers (doctors like Cipla courier medical literature, sales promotion bulletins, and patients) about products those companies are selling. In an samples and offer letters to doctors, chemists and stockists, in increasingly knowledge-centric scenario, this approach obviously addition to the personal communication by their medical augments awareness about a company and its products. representatives. Similar strategies are increasingly followed by many Indian pharmaceutical companies. 2. E-mails The visit of MRs can be supported by e-mails to doctors, chemists and distributors. This can be a highly individual and Direct marketing methods customized channel of communication. Some e-mails can be sent to consumers/patients under the pretext of extended The word “direct marketing” is possibly a misnomer; it medical service, especially to diabetic, cardiac patients who should rather be termed as direct contact method/ consume these prescription drugs for long periods. This communication method. It helps to establish direct communication strategy, besides taking objective feedback of communication channel between sellers and various the products and being inquisitive about well-being of the constituents involved in the selling process – like doctors, consumers, can definitely lead to increased loyalty. chemists, distributors, among others. Direct communication methods aim at creating, recording and tracking the customer’s 3. Advertising response towards the products and services offered by the In many advanced economies and countries, direct marketer over a period of time. They help in formulating advertising of prescription drugs in mass media is permitted. marketing strategies as well as building long-term relationship In the context of Indian marketing, this issue is highly debated with customers, resulting in increased brand loyalty. due to low literacy and awareness about medicines and These methods are of great help to directly reach and deliver possibility of misuse. But in the near future, this may be goods and services to consumers, and they help create data permitted and could be an important communication method. base and measure the response of each individual customer. Some among the popular direct marketing media channels in vogue are: Conclusion a) Catalog. b) Direct mails. Effective communication to potential buyers, decision c) Telemarketing. makers, persons capable of influencing buying decisions, d) Fax. current buyers and people with referral power is the key to e) Internet/e-mail. success. It enables a marketer to sell his products/services f ) Interactive cable TV. to customers through ethical but persuasive means. Successful In Pharma marketing, medical representatives (MR) do marketers thus have to adopt proper blend of personal and usually carry out the function of personal selling wherein an nonpersonal approaches to communication, depending on MR is expected to meet around 10-12 doctors and 4-6 chemists the product as well as psyche of the customers. While the per day. Thus the total number of doctors visited in a month former leads to demand generation, the latter, i.e., nonpersonal in a given sale territory would be around 250 to 280 doctors communication helps in its sustainable retention. An effective and 125 to 150 chemists respectively. This is pretty low marketing manager is one who can craft a proper mix of compared to the actual density of the population of doctors communication strategy within the overall gamut of existing and chemists in a sales territory. In such a situation, direct legal and statutory provisions of the country. Communication mail of samples, reminders and persuasive mails sent to the strategies of pharma companies in India are expected to clients whom an MR could not meet could be of great use. undergo radical transformation in years to come. The process These tools can also be used as powerful tools of has already started. What is needed is for some companies communication and brand recall strategy to supplement the to take lead through some radical and innovative steps. That visit. will pave the way for others to follow. Pharma Times - Vol 38 - No. 7 - July 2006 19