Blueprint for Excellence - Pharmaceutical Executive


Blueprint for Excellence

Pharmaceutical Executive

Strategic implementation approach:
Set up a promotion-mix model at the customer segment level
Optimize brand spending and strategy by customer segment (For example, allow for differences in promotion mix and spending levels by customer segment.)
Use scenario-planning tools to establish a systematic, analytics-based process—one that allows brand teams to project sales from different spending levels and the associated risk of not meeting forecast under each scenario—for allocating promotion spending across the portfolio
Incorporate an assessment of risk into the portfolio allocation process, so that spending scenarios and sales results can be more accurately predicted and managed
Develop an internal process to facilitate cross-company strategic planning and execution

3. Lockstep Execution

Coordinated field execution of brand strategy is the next ROI priority. Companies typically deploy field forces without considering the overall promotional strategy, yet sales force performance must be accurately measured against key brand metrics to maximize ROI of field resources. Innovative relationship metrics report the value being received by customers, with critical insights about promotion channel performance; how multichannel marketing efforts contribute to brand ROI; which channels are driving this ROI; and opportunities for new relationship points with customers.

Such metrics enable commercial executives to identify areas of focus for their sales forces to build deeper relationships and achieve greater influence with customers. These metrics are being successfully implemented to change HCP perceptions of reps. Sales force KPIs should derive from customer-focused performance metrics and should ensure that the brand strategy is clearly reflected in every customer interaction, and that every opportunity to build brand equity is fully developed.

Strategic implementation approach:
Develop brand strategy–based metrics, such as message quality, detail quality, and customer value
Implement these metrics initially with the sales force, then expand to other promotion channels
Tie metrics to brand performance, to identify drivers of market share and to quantify the impact of improving the metrics
Design marketing programs and sales tools focused on these driver metrics to enable brand performance improvement
Customize all these steps to the differentiated customer segment

4. Opportunity Responsiveness

Using information obtained from sales force and brand KPIs, marketers can identify trends as they emerge, enabling companies to take action in advance of competitors. For example, one firm is using prescriber-level NBRx metrics to identify changes in prescribing tendencies, such as increasing or decreasing usage of a competitive brand for new therapy starts. An alert is triggered to the sales representative when such a change occurs, and selling tools are recommended to the rep to help address the opportunity/challenge. As more companies seek this near–real-time market feedback, the industry is likely to become more responsive—and realize a higher ROI on promotion.

Automated brand dashboards that report the key drivers of product and customer segment performance on a monthly basis are uncovering sources of dissatisfaction with competitor products, practices that improve patient adherence, and e-marketing programs that drive a rise in prescribing. These dashboards take advantage of two new capabilities: increasingly robust strategic data at both patient and prescribing levels, and lower cost technology solutions that enable development, integration, and delivery of KPI information. Pharmaceutical companies that have been early adopters of these new capabilities report productivity gains from their promotion investment and improved efficiencies in their businesses.

Strategic implementation approach:
Set up monthly brand strategy and execution tracking metrics, linking performance metrics to national target base performance
Implement a closed-loop marketing system taking advantage of dashboard and information-systems technology to obtain more insightful customer feedback and performance views (Closed loop marketing, as the name implies, is designed to "close the loop" around marketing, sales and physicians, measuring the results of marketing and communications programs by tracking the response rates of specific customer promotions.)
Capitalize on the value of digitized agencies and the flexibility to customize quickly
Establish an integrated management approach to channels, such as leveraging patient-relationship marketing
Measure performance of multichannel programs, and use insights gleaned to innovate


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Source: Pharmaceutical Executive,
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