NEW
This strategic management report from MORPACE Pharma Group and Scrip Reports combines primary data with in-depth analysis to provide the most comprehensive view available of the future direction of direct-to-consumer (DTC) advertising of prescription pharmaceuticals.
Although DTC advertising still comprises a small portion of overall promotional budgets, spending in this area is climbing rapidly, apparently to good effect. Companies have figured out how to bring their message to consumers. Now they need to know how to enlist prescribing doctors as allies rather than enemies; how formulary managers responsible for drug costs are reacting to increased demand spurred by DTC advertising, and what they plan to do about it; and what consumers say about how drug advertising can be made more effective.
The Future of Direct-to-Consumer Advertising answers these and other questions through analysis of up-to-the-minute survey data from consumers, physicians and formulary managers. In addition, the report reviews the strategies of leading companies that employ DTC advertising, as well as spending patterns and returns, recent regulatory initiatives in both the US and Europe and areas of untapped potential. By combining primary research found nowhere else with authoritative brand, company and industry analysis, this report gives you the information you need to direct your investment most effectively in reaching the increasingly powerful consumer segment.
PUBLISHED: DECEMBER March 2000
REF: BS1050E
PAGES: 150+
PRICE: £995/$1,995/¥239,000
A report from MORPACE Pharma Group, Ltd,
distributed by PJB Publications Ltd
Table of Contents
List of Tables
List of Figures
About the Authors
Executive Summary
Chapter 1: Introduction
A Comprehensive Analysis Is Needed
Our Approach, with Three New Surveys
BACKGROUND
Chapter 2: DTC Emerges as a New Marketing
Innovation within the U.S. Pharmaceutical Industry
History
Prescription Drugs First Marketed Only to Professionals
Marketing Shifts from Professionals to Consumers
The FDA Liberalizes Its Rules
Recent Trends in DTC Spending
Spending Skyrockets
DTC's Contribution to Drug Spending Overstated
Spending is Concentrated on Only a Few Products
Media Preferences Shift, with TV and Print Top Choices
Consumer and Provider Perspectives
Physicians Oppose DTC
Consumer Surveys Inconsistent
Inconclusive Evidence of DTC's Benefits
Chapter 3: DTC Strategy - a Work in Progress
A Conceptual Framework for Understanding DTC
A Flow Chart Model
Market Maturity and Competitive Position
DTC Case Examples - Good and Bad Experiences
Propecia: Merck Drops the Ball But Recovers Nicely
Viagra: A Unique Success
Lescol: A Preventable Failure
Pravachol and Zocor: Scoring a Goal for the Competition
Factors Affecting Success
Unanswered Questions About DTC Advertising Strategy and Prospects
Which Drugs Are Good DTC Candidates?
What Is the Optimal Timing and Intensity of DTC Advertising?
What Is the Optimal Media Mix?
Will Providers Eventually Accept DTC Advertising?
How Will Interactive Television Change DTC Advertising?
What Will Be the Role of the Internet?
SURVEY FINDINGS
Chapter 4: The Consumer's Experience with DTC
Advertising
Response to DTC Advertising
Few Actual DTC Requests
Large Range of Products Requested
Influence of Advertising Varies by Drug Class
Ads Offering New Information Have the Largest Impact
Physicians Amenable to DTC Requests
Most Requests Covered by Insurance, But Not All
Experience with the Requested Medications
DTC May Create Unrealistic Expectations
Lower Compliance with DTC-Generated Prescriptions
Opinions of DTC Advertising
Three Distinct Camps
People Who Have Requested DTC Prescriptions Look Favorably on DTC
Television and Magazine Ads Most Useful Information Sources
Recall of DTC Ads
Educated, Affluent Whites Over 35 Have Highest Recall
Television Achieved Highest Recall
Nonresponders Haven't Seen Relevant Ads, or Remain Unmotivated
Targeting High-End Demographic Shortsighted
Chapter 5: The Physician's Experience with DTC
Advertising
Low Volume of Drug Requests Received
DTC Drugs Are the Most Requested, But Not All DTC Drugs Are
Requested
Physicians Accommodate DTC Requests
Physicians Split Over DTC's Benefits
Chapter 6: The Formulary Manager's Experience
with DTC Advertising
Escalating Drug Costs Worry Formulary Managers
Aggressive Efforts to Control Drug Costs
Formulary Managers Believe DTC Worsens Program Performance
Impact of DTC Advertising on Managed Care Policy
Major Effect on Formulary Management
Product Advantages and Total Costs Drive Product Selection
Recent Removals of DTC Drugs
DISCUSSION
Chapter 7: Implications of Survey Findings
Key Findings
Strategic Consequences
Drug Manufacturers Must Learn How to Market Products to Consumers
All Marketing Efforts Must Be Integrated
DTC's Chief Impact Is on Brand Switching
Chapter 8: DTC's Importance to Europe and Other
Markets
Observers Believe DTC is Coming
Pharmaceutical Companies Push the Regulatory Envelope in Europe
and Canada
A Long, Slow Road Before Approval
Chapter 9: Potential Pitfalls
Provider Alienation
Managed Care Backlash
Consumer Rejection
New FDA Regulation
Legal Liability Expansion
Chapter 10: Recommendations
1. Launch a Strategic Analysis that Considers Market Maturity and
Competitive Position
2. Conduct Market Research and Test Advertising Concepts
3. Integrate DTC and Physician Marketing
4. Bridge the Cultural Gap between Established Consumer Practices
and the Pharmaceutical Business
5. Implement a Public Relations Campaign to Bolster General
Opinion of DTC
6. Perform Outcomes Research to Confirm DTC's Benefits
Future Trends
Addendum: Late-Breaking Release of FDA Survey Findings
About This Report
List of Tables
Table 2-1 Spending on Top Ten DTC Drugs, January
- July 1999
Table 2-2 U.S. Spending on Pharmaceutical
Advertising, 1998
Table 2-3 DTC: Pro and Con
Table 4-1 Consumer Survey: Drug Classes Most
Commonly Requested Within Prior 12 Months
Table 4-2 Consumer Survey: Specific Drug
Requests by Class (Among Key DTC Classes)
Table 5-1 Physician Survey: Products Most
Frequently Requested
List of Figures
Figure 2-1 Division of Promotional Spending,
1998
Figure 2-2 U.S. Promotional Spending by
Activity, 1994-1998
Figure 2-3 Changes in Promotional Spending,
1997-1998
Figure 2-4 DTC Spending by Advertising Medium,
1994-1998
Figure 3-1 A Flow Chart Model of DTC Advertising
Figure 3-2 Stages of Pharmaceutical Market
Development
Figure 4-1 Consumer Survey: Within the Past 12
Months, Have You Asked a Doctor to Prescribe a Particular
Medication?
Figure 4-2 Consumer Survey: Source of
Information for Requested Drug
Figure 4-3 Consumer Survey: What About the Ad
Made You Decide to Try the Medication?
Figure 4-4 Consumer Survey: Physician Attitudes
Toward Drug Requests
Figure 4-5 Consumer Survey: Physician Responses
to Drug Requests
Figure 4-6 Consumer Survey: Did the Doctor
Discuss Whether the Medication Was Covered by Your Insurance?
Figure 4-7 Consumer Survey: Insurance Coverage
for Requested Drugs
Figure 4-8 Consumer Survey: Did the New
Medication Meet Your Expectations?
Figure 4-9 Consumer Survey: Do You Plan to
Continue Taking This Medication or to Take it Again if the
Condition Arises?
Figure 4-10 Consumer Survey: Compliance with New
Medication Compared with Other Medications
Figure 4-11 Consumer Survey: Usefulness of
Prescription Drug Advertising
Figure 4-12 Consumer Survey: Given Your
Experience, How Do You Feel About Advertisements for Prescription
Drugs?
Figure 4-13 Consumer Survey: Most Useful Form of
Advertising for Providing Relevant Information
Figure 4-14 Consumer Survey: Percent Recalling a
DTC Advertisement, by Education Level
Figure 4-15 Consumer Survey: Percent Recalling a
DTC Advertisement, by Income
Figure 4-16 Consumer Survey: Percent Recalling a
DTC Advertisement, by Ethnicity
Figure 4-17 Consumer Survey: Percent Recalling a
DTC Advertisement, by Age
Figure 4-18 Consumer Survey: Sources of
Pharmaceutical Advertising Recalled
Figure 4-19 Consumer Survey: Sources of
Information for Requested Drug
Figure 4-20 Consumer Survey: Reasons for Not
Requesting a Relevant Advertised Drug
Figure 4-21 Consumer Survey: Among People Who
Have Seen or Heard a DTC Ad, Demographic Differences Between
Those Who Requested an Advertised Drug and Those Who Haven't
Requested a Drug
Figure 5-1 Physician Survey: Physicians'
Perceptions of the Effects of DTC Advertising on Specific Drugs
Prescribed
Figure 5-2 Physician Survey: Physicians'
Perceptions of the Effects of DTC Advertising on Patient Health
Care
Figure 6-1 Formulary Manager Survey: Formulary
Managers' Perceptions of the Magnitude of the Drug Cost Problem
Figure 6-2 Formulary Manager Survey: Drug Cost
Control Initiatives Reported by Formulary Managers
Figure 6-3 Formulary Manager Survey: Formulary
Managers' Perceptions of the Effects of DTC Advertising on
Program Performance
Figure 6-4 Formulary Manager Survey: Formulary
Managers' Perceptions of the Effects of DTC Advertising on
Formulary Management
Figure 6-5 Formulary Manager Survey: Factors
Influencing Formulary Product Selection
Figure 6-6 Formulary Manager Survey: Factors
Influencing Formulary Product Removal
All rights reserved. No part of this publication may be reproduced in any form without the express permission of the Publisher, except under the terms of the publisher's distribution agreement with PJB Publications Ltd. Although all reasonable steps have been taken to ensure the accuracy of the data on which the publication's opinions and analysis are based, neither MORPACE Pharma Group nor PJB Publications assumes any liability for the correctness, comprehensiveness, or use of the information presented.
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