Survival of a product in a crowded therapeutic class demands a powerful and creative marketing effort. This is vital to both the success of new drugs and for extending the lifetime of older products. Meanwhile, companies must strive to comply with the complex international regulatory requirements governing the marketing and promotion of medicines.

A new high-level, strategic guide to global pharmaceutical marketing from Scrip Reports discusses the merits of different strategies and highlights important regulatory issues. This report contains examples of strategies that pharmaceutical companies have adopted to incorporate direct-to-consumer campaigns into the marketing mix.

This report will enable you to: assess the effectiveness of existing strategies; design co-ordinated marketing campaigns based on expert advice and examples of successful strategies; analyse marketing activities of competitors and interpret the regulations surrounding the promotion of medicines.

PUBLISHED: January 2000
REF: BS981E
PAGES: 150+
PRICE: £695/$1,460/¥167,000

CONTENTS
LIST OF TABLES
LIST OF FIGURES
EXECUTIVE SUMMARY
ABBREVIATIONS

CHAPTER 1 INTRODUCTION AND OVERVIEW
1.1 The state of pharmaceutical marketing
1.1.1 The 1950s-1960s
1.1.2 The 1970s
1.1.3 The 1980s
1.1.4 The 1990s
1.1.5 Customer focus
1.1.6 Organisational change
1.1.7 Training and development
1.2 The global market value and trends
1.2.1 Value and growth trends
1.2.1.1 Total market
1.2.1.2 Geographical regions
1.2.1.3 Corporations
1.2.2 Therapeutic area trends
1.2.3 Industry trends
1.2.3.1 Mergers and acquisitions
1.2.3.2 Commercial alliances
1.2.3.3 Technology alliances
1.2.3.4 Generics
1.3 The forces acting on the pharmaceutical industry
1.3.1 An ageing population
1.3.2 Changing lifestyle and increasing expectations of healthcare systems
1.3.3 Customer power
1.3.4 Substitute power
1.3.5 New entrants
1.3.6 Supplier power
1.3.7 Industry rivalry
1.4 The challenges facing pharmaceutical marketing
1.4.1 Globalisation
1.4.2 Changing healthcare systems/new customers
1.4.3 The impact of information technology
1.4.4 Life-cycle management
1.4.5 Marketing skills and knowledge

CHAPTER 2 LIFE-CYCLE PLANNING: THE NEW IMPERATIVE
2.1 What is life-cycle planning?
2.1.1 The concept of life-cycles
2.1.2 The four phases of the life-cycle
2.1.3 The pharmaceutical industry life-cycle
2.1.4 Strategic life-cycle planning
2.2 Major changes driven by R&D
2.2.1 The first R&D revolution
2.2.2 The second R&D revolution
2.2.2.1 The discovery revolution
2.2.2.2 The clinical revolution
2.2.2.3 The regulatory revolution
2.2.3 The impact on marketing
2.3 Major changes driven by generics
2.3.1 The far end of the life-cycle
2.3.2 Healthcare system incentives
2.3.2.1 Generic prescribing
2.3.2.2 Generic dispensing
2.3.2.3 Generic substitution
2.3.3 Generic company maturity
2.3.4 The impact on marketing
2.3.4.1 Generic defence
2.3.4.2 Product/market segmentation and fragmentation
2.3.4.3 Delivery systems
2.3.4.4 Over-the-counter strategy
2.4 Planning 'time to profit' and return on investment
2.4.1 Portfolio marketing priorities
2.4.2 Modelling net present value
2.4.3 Risk assessment
2.5 Strategic marketing partnerships in the marketing life-cycle process
2.5.1 Evolution of strategic partnerships
2.5.2 Discovery alliances
2.5.3 Development alliances
2.5.4 Commercial alliances
2.5.4.1 Co-promotion and co-marketing
2.5.4.2 Therapeutic expertise
2.5.4.3 Geographical expertise
2.5.5 Technology alliances
2.5.6 Channel alliances

CHAPTER 3 DEVELOPING AN INTEGRATED MARKETING STRATEGY
3.1 What is marketing strategy?
3.1.1 The purpose of marketing strategy
3.1.2 A practical definition of marketing strategy
3.1.3 The difference between marketing strategy and corporate strategy
3.1.4 The difference between marketing strategy and promotional strategy: positioning
3.1.5 The difference between marketing strategy and tactics
3.2 How is marketing strategy developed today?
3.2.1 When and how is marketing strategy developed?
3.2.1.1 When and who?
3.2.1.2 Centre or affiliate?
3.2.1.3 The challenge
3.2.2 The reasons behind today's model
3.2.3 The consequences of today's model
3.3 When should marketing strategy be developed?
3.3.1 Options for marketing strategy development within the overall R&D process
3.3.1.1 How early is 'early'?
3.3.1.2 Discovery
3.3.1.3 Phases I-II
3.3.1.4 Phase III
3.3.2 The timing for marketing strategy development
3.3.2.1 The right time
3.3.3 The consequences of early marketing strategy development
3.3.3.1 Management of risk
3.3.3.2 Organisation structure and processes
3.3.3.3 Organisation skills and knowledge
3.3.3.4 Cost of people
3.3.3.5 Cost of action
3.4 How should marketing strategy be developed and fully integrated into the corporation?
3.4.1 How should marketing strategy be developed?
3.4.2 Guidelines for developing successful marketing strategy
3.4.3 Responsibility for developing marketing strategy
3.4.4 Managing the R&D/marketing interface
3.4.4.1 Process
3.4.4.2 Role clarity
3.4.4.3 Culture
3.4.4.4 Structure
3.4.4.5 Timing
3.4.5 Managing the central marketing and affiliate interface
3.4.5.1 Process
3.4.5.2 Role clarity
3.4.5.3 Structure
3.4.5.4 Timing
3.4.5.5 Communication

CHAPTER 4 MARKETING EFFECTIVENESS
4.1 What is marketing effectiveness and why is it important?
4.1.1 What is marketing effectiveness?
4.1.2 Why is marketing effectiveness important?
4.1.3 The marketing effectiveness challenge
4.2 What is marketing planning?
4.2.1 Elements of the marketing planning process
4.2.1.1 Situation analysis
4.2.1.2 Customer mapping
4.2.1.3 Market and customer drivers analysis
4.2.1.4 Product and company SWOT and PEST analyses
4.2.1.5 Critical success factors
4.2.1.6 Marketing objectives
4.2.1.7 Marketing strategy
4.2.1.8 Promotional strategy and key messages
4.2.1.9 Pricing strategy
4.2.1.10 Tactical implementation plan
4.2.1.11 Organisation plan
4.2.1.12 Financial analysis
4.2.1.13 Monitoring plan and key performance indicators
4.2.2 Implementing a marketing planning process
4.3 Marketing implementation
4.3.1 Making marketing 'happen'
4.3.2 Characteristics of excellence in implementation
4.3.3 Practical systems for marketing implementation
4.3.4 Marketing implementation through service providers
4.3.4.1 Clear direction
4.3.4.2 Listening
4.3.4.3 Involvement
4.3.4.4 Motivation
4.4 Challenges for marketing effectiveness
4.4.1 Measuring marketing effectiveness
4.4.2 Customer knowledge
4.4.3 Skills and knowledge
4.4.4 Change management

CHAPTER 5 INTERNATIONAL REGULATION OF PHARMACEUTICAL MARKETING
5.1 Introduction to pharmaceutical marketing legislation: the background to pharmaceutical regulation
5.2 Marketing regulation in Europe
5.2.1 Evolution of a 'European system'
5.2.2 Mechanisms for control
5.2.3 The EU Advertising Directive
5.2.4 Voluntary codes of practice
5.2.4.1 National level
5.2.4.2 International level
5.3 Marketing regulation in the US
5.3.1 Contrast with Europe
5.3.2 Mechanisms for control
5.4 Future challenges in marketing regulation
5.4.1 Direct-to-consumer advertising
5.4.2 Advertising on emerging technologies
5.4.3 Responses to a changing healthcare environment

CHAPTER 6 CASE STUDIES
6.1 Creating a global franchise: Glaxo Wellcome's respiratory business
6.1.1 Introduction
6.1.2 Allen & Hanburys: origins of a respiratory business
6.1.3 Critical success factors in the Glaxo Wellcome respiratory franchise
6.1.3.1 The right product portfolio: molecules and devices
6.1.3.2 Dedicated business unit
6.1.3.3 Leadership
6.1.3.4 Market segmentation and fragmentation
6.1.3.5 Branding
6.1.3.6 Marketing a clinical rationale
6.1.3.7 Creating an asthma management infrastructure
6.1.3.8 Raising the expectations of asthma patients
6.1.4 Responsiveness and learning in the Glaxo Wellcome respiratory franchise
6.1.4.1 The beta-agonist debate
6.1.4.2 Branding
6.1.5 Reflections
6.2 Creating a market: Merck's statins
6.2.1 Introduction
6.2.2 Background
6.2.3 Marketing strategy
6.2.4 Implementing the strategy
6.2.5 Early competition
6.2.6 Outcome data
6.2.7 Recent competitive response
6.2.8 Reflections
6.2.8.1 Efficacy versus price: the changing needs of customers
6.2.8.2 Patent protection
6.3 Creating awareness with direct-to-consumer marketing: Pfizer's Viagra
6.3.1 Introduction
6.3.2 Background
6.3.3 Launch
6.3.4 Internet response to massive demand
6.3.5 Response of state-funded healthcare systems
6.3.6 The 'club scene'
6.3.7 Reflections
6.3.7.1 Direct-to-consumer marketing where governments pay
6.3.7.2 Direct-to-consumer marketing as the route to co-payment in Europe
6.3.7.3 Positioning
6.3.7.4 European direct-to-consumer marketing restrictions in light of the Internet
6.4 Creating a strategic marketing alliance: angiotensin II antagonists
6.4.1 Introduction
6.4.2 Background
6.4.3 The marketing challenge
6.4.4 The marketing partnerships
6.4.4.1 Sanofi and Bristol-Myers Squibb
6.4.4.2 Takeda and Astra
6.4.5 Making strategic marketing relationships work
6.4.5.1 Shared goals for success
6.4.5.2 Cross company multidisciplinary brand teams
6.4.5.3 Regular communication at central and affiliate level
6.4.5.4 Leadership from the top regarding good co-operation
6.4.5.5 Integrated sales force activity
6.4.6 Results
6.4.7 Reflections
6.4.7.1 Differentiation
6.4.7.2 Sanofi and Astra new mergers
6.4.7.3 Changing customers/customer needs
6.4.7.4 Measuring the success of sales people

REFERENCES

List of tables
Table 1.1 US sales force reduction (1992-1994)
Table 1.2 Pharmaceutical sales in the world's 12 leading markets (1998)
Table 1.3 Expected growth of the pharmaceutical market by region (1998-2002)

Table 2.1 Total DNA microchip market: comparative assessment of US competitors (1997)
Table 2.2 SmithKline Beecham's development time
Table 2.3 FDA drug approval times (1984-1996)
Table 2.4 Major US patent expiries (2000-2005)
Table 2.5 Advantages and disadvantages of co-marketing and co-promotion
Table 2.6 Global ranking versus French ranking for Merck (1997)
Table 2.7 SkyePharma's product development pipeline

Table 3.1 Marketing planning process elements

List of figures
Figure 1.1 Decreasing exclusivity periods - the number of years between first and second launches in a new therapeutic class
Figure 1.2 The globalisation of pharmaceutical marketing
Figure 1.3 Healthcare systems - historically
Figure 1.4 A map of the UK healthcare system
Figure 1.5 Sales in leading therapeutic categories (1998-1999)
Figure 1.6 Porter's five forces

Figure 2.1 Stages of a product's life-cycle
Figure 2.2 Time to profit
Figure 2.3 The drug development process
Figure 2.4 Strategic life-cycle management
Figure 2.5 New technology impact on drug discovery
Figure 2.6 Rapid globalisation of new drugs: number of years to launch in five major markets
Figure 2.7 The UK retail transaction

Figure 3.1 Strategy flow
Figure 3.2 Strategy and tactics
Figure 3.3 Stages of the drug development process
Figure 3.4 Marketing planning process
Figure 3.5 Organisation models of the marketing/R&D interface

Figure 4.1 The marketing process
Figure 4.2 Industry cost pressures
Figure 4.3 Situation analysis
Figure 4.4 Customer mapping
Figure 4.5 Customer priority analysis
Figure 4.6 Customer drivers analysis
Figure 4.7 Critical success factors
Figure 4.8 Heart failure marketing programme

Figure 5.1 Food and Drug Administration structure

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