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Multichannel Relationship Marketing Published by: VirSci Corporation PO Box 760 Newtown, PA 18940 A Special Collection of Pharma Marketing News Reprints

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Multichannel Relationship Marketing

Published by: VirSci Corporation PO Box 760 Newtown, PA 18940

A Special Collection of Pharma Marketing News Reprints

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© 2012 VirSci Corporation (www.virsci.com). All rights reserved. Pharma Marketing News

Contents Introduction ................................................................................................... i Is Your Marketing Head in the Cloud? ..................................................................... 1 Podcast: Is Your (Marketing) Head in the Cloud? .................................................... 6 Making Sense of Multichannel Marketing ................................................................ 8 Multichannel Marketing: Easy to Brag About, But Difficult to Do ............................. 13 Multichannel Marketing & Medical Reprints ............................................................. 17 The Evolving Pharma-Physician Relationship ......................................................... 23 Building the "New" Pharma Physician Marketing Model .......................................... 29 Evolve Your Brand Into a Relationship With Consumers and Physicians ............... 35 The Digital Life of Doctors ........................................................................................ 39 Podcast: The Changing Pharma eDetailing Landscape .......................................... 46

PHARMA MARKETING NEWS www.pharmamarketingnews.com Published by VirSci Corp. PO Box 760 Newtown, PA 18940-0760 Pharma Marketing News is an independent periodic electronic newsletter focused on issues of importance to pharmaceutical marketing executives. It is a service of the Pharma Marketing Network—The First Forum for Pharmaceutical Marketing Experts—which brings together pharmaceutical marketing professionals from manufacturers, communications companies, and marketing service providers for wide ranging discussions and education on a multitude of current topics.

Each issue of Pharma Marketing News is packed with facts, opinions, and case studies based upon interviews with experts in the field of pharmaceutical marketing. Highlights of presentations from industry conferences, contact lists for experts consulted, and links to references help subscribers keep up to date on best practices and network with their peers.

Pharma Marketing Network & Pharma Marketing News provide executive-level content coupled with permission-based e-marketing opportunities.

Subscribe: http://bit.ly/pmnsubscribe Advertising information: http://bit.ly/pmnadvert

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Introduction

Written by John Mack, Editor

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ultichannel pharma marketing is con-ceptually relatively simple to understand, but incredibly difficult in practice," says Len

Starnes, former Head of Digital Marketing & Sales, General Medicine at Bayer Schering Pharma. "That said, multichannel is not a transient phenomenon, it’s here to stay."

This collection of Pharma Marketing News reprints focuses mainly on issues related to multichannel marketing to physicians.

What Exactly Is Multichannel Marketing? Proponents of MCM recognize that it is common for pharmaceutical company customers (consumers, patients, and physicians) to use different channels (print, TV, web, mobile, social media, etc.) at different stages of their decision cycles. Multichannel pharma marketing uses “multiple synchronized communication channels” to reach consumers, patients, and physicians with marketing communications or information at the appropriate point in their decision cycles.

These days, pharma marketers cannot rely solely on reaching physician clients via sales reps and print journal ads. Digital channels—including the Web, social media, and mobile—are increasingly being used by physicians to access information about pharma brands.

To successfully practice multichannel marketing to physicians, therefore, pharma marketers must master the digital channel and understand how physicians “live” online. Kantar Health’s 2011 Digital Life survey provides a closer look at pharma’s digital customers (see “The Digital Life of Doctors”; page 39). Monique Levy, VP Research at Manhattan Research, reveals some details from Manhattan Research's 2011 ePharma Physician® market research study that the online promotion land-scape changed, and which types of programs garner the largest audience (see “Podcast: The Changing Pharma eDetailing Landscape”; page 46).

Data-driven Marketing To effectively implement MCM, it is necessary to collect data about the target audience such as channel prefer-ences and other segmentation data. Marketing via digital channels adds a new dimension of available data. Multichannel marketers must operate in a new way, one that is more complex, technology-based and data-driven. Yet in many cases marketers do not have the tools they need to see an integrated view of their data, coordinate the customer experience across channels, and optimize campaigns in real-time to drive return on investment.

“Marketers have to be equipped with the tools to operate effectively in the new, more data-driven multi-channel environment,” says Bob Harrell, VP of Marketing for Appature, Inc. (see “Is Your Marketing Head in the Cloud?”; page 1).

Multichannel Relationship Marketing Multichannel is really a tactic that is part of a relation-ship marketing strategy, which uses various interactive media to develop, maintain, and foster a relationship with a current and prospective customers to maximize need satisfaction, share of mind and budget, and nurture loyalty and, ultimately, advocacy of the brand of a product or service.

Many experts agree that Relationship Marketing should be a natural for the pharmaceutical industry, which needs to support the long-term use of their products and help patients remain compliant with their treatment regime.

But not many pharmaceutical marketers understand what relationship marketing is and how it differs from other forms of marketing that they traditionally employ.

"Relationship marketing is permission-based,” noted Keli Bennett, former Consumer Marketing Director at Abbott Laboratories. “Communications are anticipated and relevant instead of random. Every communication asks for dialogue with respect. When permission is obtained, it creates a positive brand experience at every touch point” (see “Evolve Your Brand Into a Relationship with Consumers & Physicians”; page 35).

Relationship building requires a multichannel approach and that is why I have entitled this collection of articles “Multichannel Relationship Marketing.” I hope this collection provides you with a good introduction to the topic.

John Mack, Publisher & Editor Pharma Marketing News

“M

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Is Your Marketing Head in the Cloud?

The Appature Nexus Marketing Cloud Software Platform

This article originally appeared in the October 23, 2012, issue of Pharma Marketing News (Reprint #PMN-11901)

Written by John Mack, Editor

Chapter 1

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s the average pharma sales rep spends less time with physicians, healthcare marketers are be-coming more pressured to seek other ways to

drive effective marketing programs. Marketers must operate in a new way, one that is more complex, tech-nology-based and data-driven. Yet in many cases marketers do not have the tools they need to see an integrated view of their data, coordinate the customer experience across channels, and optimize campaigns in real-time to drive return on investment (ROI).

Appature, a unique software-as-a-service provider, sees this as an immense opportunity to couple the vast amount of data available to healthcare marketers with relationship marketing technology to discover new methods to personalize and optimize campaigns to both consumers and healthcare professionals.

Trend Toward Technology “Marketing has historically been one of the most under-served areas in the enterprise in terms of technology,” said Bob Harrell, VP of Marketing for Appature, Inc.

“Much of the capability invest-ment has focused on sales force with limited support for the broad-er marketing function,” said Harrell. “That trend is now shifting based on the growing prominence of other channels. Marketers have to be equipped with the tools to operate effectively in the new, more data-driven multi-channel environment. And that’s where Appature Nexus comes in.”

Appature Nexus is a Marketing Cloud software platform that drives sales growth through an integrated market-ing database, campaign management tool and reporting/ analytics engine. Nexus is:

• Designed exclusively for the life sciences industry • Surprisingly simple to use • Enables you to choose the best service provider • Can be rapidly implemented so you experience

value quickly

Nexus enables marketers to take an “informed marketing” approach that applies knowledge of their customers to marketing, sales or customer support decisions.

Be in Command of Your Marketing “Appature is on the cutting-edge of three key trends: the cloud, the transformation of pharma marketing model and increased investment in marketing software versus sales software,” said Harrell. The focus on marketing software is so significant that Gartner recently noted that CMOs will spend more on technology than CIOs within the next 5 years.

One of the key advantages of Appature Nexus is that it enables marketing to ramp up these capabilities quickly due to its cloud-based design. Clients have a subscrip-tion to the software and services are delivered through the browser rather than a large server-based IT infra-structure, thereby eliminating a huge investment of time, money and staff in software and servers housed on-site at the client’s location.

A

Bob Harrell

Figure 1: Features of Appature Nexus Nexus 360 includes: • Customer Segmentation • Customer profile

Nexus Touch includes: • Channel Integration, • Automated Campaigns, • Email and Mobile • Messages, • Website Integration & • Surveys;

Nexus Insight includes: • Operational Reports • Insight Builder

Continues…

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Nexus 360 Customer data that was once siloed—web activity, email metrics, mobile programs, sales force automation data, Rx data, tactics sent by third party vendors, etc.—is fed into Nexus 360. Two key components in Nexus 360 are:

1. Rich customer profiles. Our goal is to provide marketers access to every commercially relevant data point, in one visual, easy to understand profile screen; and

2. An incredibly robust segmentation engine that is super easy to use. You don’t need to know how to write any SQL Queries—you are literally logging into a web browser and dragging and dropping attributes and entities to create your own customer segments on the fly.

Nexus Touch Next is Nexus Touch, which includes a whole host of functionality that lets you reach out to your customers, design and coordinate the customer experience, cus-tomize messages, schedule and automate campaigns, and directly deploy both email and mobile messages directly from the system.

Nexus Insight Lastly, Nexus Insight provides business intelligence reports and data visualization tools that help you understand overall campaign performance and what’s happening in your market to know what’s working and what’s not.

“What’s really exciting about all of this is as you use this platform the system is getting smarter over time, automatically,” says Harrell. “Your ability to make intelligent decisions gets better with each touch point—whether the customer responded to a campaign or not—so you can use that to make decisions about what channels, messages, offers etc., to use for particular customers and segments.”

Simple and Secure Finally, to make ALL this truly surprisingly simple, Appature Nexus has highly configurable views. You might want to have a view to provide to your senior management with all of the reporting around perfor-mance and maybe some market segmentation. But you want your team or your agency to have the power of creating and launching the campaigns, and maybe you only want one particular user to be able to “hit the big red button” and launch a campaign. That is all possible and very easy with Appature Nexus.

Appature Nexus is designed with the stringent security and data storage requirements of the healthcare indus-try in mind. Each installation of Appature Nexus resides in its own isolated data cluster providing physical sep-aration of data, protected storage, reliable data

redundancy, and full 128-bit encryption for all data transmitted over the wire. Appature Nexus installations are housed in a SAS 70 Type II certified state-of-the-art co-location facility with biometric security and video-camera surveillance. Located on a major Internet backbone, rapid response times and high availability are of important consideration to both Appature and to our customers.

The following is an edited podcast interview of Bob Harrell who explained how Appature Nexus fits in to the new commercial model:

John Mack: Talking about the new commercial model that pharma is going through, can you explain what you mean by that? Because I think different people have different ideas of what the new commercial model is.

Bob Harrell: One way to look at it is by looking at the change in the marketing approach in other industries. If you look at financial services, for example, they don’t make the same kind of margins that we do in pharma. So when they make a credit card offer to you, they have to be really savvy and sophisticated about how they make that offer, how they optimize their marketing. Compare that to the way we’ve approached it in pharma for the last 34 years, which is sales reps fully loaded, costs that are very expensive, one-on-one conversations with doctors, etc.

It’s not just moving to a more multichannel approach or just moving to more optimization. It’s a whole different process of marketing that other industries have evolved to over the last 50 years. One that involves technology capabilities, multiple channels, and types of measure-ment and optimization that the pharma industry is not accustomed to doing.

Financial services or consumer package goods like P&G did TV in the 1940s. By the 1980s, they were doing fairly sophisticated direct mail. Then by the 1990s they were doing pretty effective data driven multi-channel marketing and of course became very savvy on the web early on and now have an entire engine behind campaign management optimization, changing the offer made to you versus the offer to your next door neighbor.

Move Up to Informed Marketing Well, the pharma industry is pretty much in the place where these other industries were between the ‘80s and the ‘90s. Now that we’re moving more into the place that other industries already addressed—i.e., tougher business environment as well as more complex channels—we’re going to have to move along that maturity curve in the same that they have. We just got a lot more catching up to do and we’re going to have to do it faster.

Continues…

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JM: Now you just mentioned this maturity curve. Can you tell me a little more about what you mean by that?

BH: Imagine two axes—one axis is the pressure on margins and ROI. On the other, is the complexity of the customer, the different types of customers you’re trying to reach, the different types of channels (see Figure 2, below). As you move to a greater pressure on ROI and greater customer and channel complexity, your market-ing sophistication or maturity has to increase.

At the bottom of the curve is traditional mass push marketing, which is the old way we’ve done marketing. As you move up the curve, you get data integration and a 360 view of the customer requiring more planning around the customer experience and integrating channels. At the top right of the curve is what we call “informed marketing.” Informed marketing means not only do you have a view of your customers, but you understand every offer and activity that you’re making. At this point you optimize your marketing on a daily or weekly basis, getting the most out of your marketing dollars.

You can’t get to the informed marketing portion of the curve overnight. To get to that point, you need a set of skills, processes, and capabilities that just weren’t required or available in the past.

Get Your Head in the Cloud JM: I have an impression that pharmaceutical com-panies know a lot about what their sales reps are doing. That’s just one channel though. So when you’re talking about multi channels, it really amplifies the skills and capabilities that you need and the data that you’re getting. But can you tell us how the “cloud” concept fits in with this? What does that bring to the table here?

BH: First, I agree with your point about having visibility and understanding of what the sales reps are doing. I think of it almost as if you had one arm that you’re working out for 20 years and you’ve got these massive biceps on your right arm and your other arm is going to atrophy. It’s a little bit like the balance of the marketing and sales arms in our business. You have the sales arm shrinking a little bit and people now need to work out the marketing arm in a way that they haven’t had to before. I’d say it’s still not caught up. We don’t have like symmetry yet in our two arms. We’re looking at the full customer experience across all these different channels and that’s the new way of thinking about it for our industry.

Regarding your question about the cloud—the cloud is really just a technology that Appature uses to deliver

Figure 2: Marketing Maturity Curve

Continues…

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software. Instead of maintaining software from many sources on enterprise servers and hiring a full-time staff to look after it, in the cloud model you just have a sub-scription. The software is available through the magic of the web and you access it through a browser. You can have very sophisticated capabilities that sit somewhere else that you can access through the cloud. You pay a monthly subscription and you get this really efficient, highly secure access to the technology and the data.

Amazon’s cloud-based server service is a good example. You rent space from them or you can host your websites or your data with them and you just pay them a monthly fee. Now obviously, there’s a location where Amazon has all these servers and their whole infrastructure, but they make it really easy for you. You sign up just like you would for a utility and you pay them a monthly fee and the “electricity” comes to your house.

We build marketing software and marketing technology and provide it to brand managers and marketing operations and commercial operations groups on a subscription basis.

Pharma companies have a huge investment in sales force technology and have been building the marketing equivalent of that for the last five years, but it’s all enterprise server-based stuff. Not to get too technical about it, but there’s customer management software like Siperian customer master and a data warehouse built on top of that. Then, added to that are campaign management software like Unica and business reporting objects on top of that. Companies stitch that whole thing together into some sort of Frankenstein system hosted on multiple servers.

The bottom line is it’s too expensive for most compan-ies to access, very hard to upgrade, very complex and you also have to have this infrastructure and staff to support it.

Appature was specifically built to (a) be focused on life sciences, (b) provide an end-to-end marketing technology platform, and (c) enable people to just subscribe to it like a utility through the cloud.

Surprisingly Simple

JM: Is that what you mean by being “surprisingly simple?” Just having access to all this information in one place integrated in a browser-based dashboard look at things making it simple for marketers who might be data challenged?

BH: Yes, but there’s a couple of layers to what we mean by “simple.” One is how simple and quick is it to get the service. Instead of spending twelve months to

build all these server racks and all the software that has to be stitched together to make it work, you can just order it from Appature and in a matter of weeks or short months, it will be implemented and ready for use. So that’s one aspect of simple.

The other aspect of simple is once you have the service, you don’t need to be a Unica programmer to launch a campaign, or be an analytics programmer and expert to be able to access the reporting tool.

Appature created not only a cloud-based subscription approach, but also a simple user interface. We can train people in a half day or a day how to use the entire system as opposed to other marketing automation approaches and marketing technologies that rely on a lot of complex manipulation and skills that are difficult and time-consuming to learn.

The last aspect of simple is access to data. If a marketer wants to see how a campaign is performing, he or she can go to a laptop or an iPad and pull up the desired information and directly ask intelligent questions from the data without calling a techie to run a query and then waiting three weeks for the result.

Listen to the Podcast Harrell had much more to say about Appature’s Nexus product suite or, as he calls it, “marketing power grid.” To hear it all, please listen to the podcast here: http://bit.ly/PMT173, or visit the Appature website here: www.appature.com

Pharma Marketing News

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Podcast: Is Your (Marketing) Head in the Cloud?

A chat with Bob Harrell about exploring the new commercial model based on "informed," data-driven

relationship marketing and technology

This podcast originally aired August 21, 2012.

Chapter 1A

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conversation with Bob Harrell, VP of Marketing at Appature. Harrell discusses the transfor-mation currently underway in the pharma commercial model, as well as his company's

"surprisingly simple" cloud-based marketing software platform for pharma and medical device companies.

As the average pharma sales rep spends less time with physicians, healthcare marketers are becoming more pressured to seek other ways to drive effective market-ing programs. Appature's CEO, Kabir Shahani sees this as an immense opportunity to use the vast amount of data available to healthcare marketers coupled with relationship marketing technology to discover new methods to digitally personalize the healthcare profes-sional experience.

Some Questions/Topics Discussed:

1. What are the major changes you see happen-ing in the industry right now with regard to physician promotion?

2. What gaps currently exist in pharma marketing teams or capabilities that may create risk in addressing the new commercial model?

3. Why have marketing organizations been slow to change over the past several years as the com-mercial model has been shifting around them?

4. What does it mean to be an "informed marketer"?

5. Why is marketing technology critical to achiev-ing the next stage of evolution for pharma brand managers?

Pharma Marketing News

A

Click on box above to listen to the podcast or Click here: http://www.talk.pharma-mkting.com/show173.htm

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Making Sense of Multichannel Marketing

Towards Achieving the "Holy Grail" of Marketing Effectiveness

This article originally appeared in the October 23, 2012, issue of Pharma Marketing News (Reprint #PMN-11902)

Written by John Mack, Editor

Chapter 2

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s the average pharma sales rep spends less time ultichannel marketing (MCM) is considered the "holy grail" for many marketers in pharma and

other industries. It has become a hot topic even though there is a huge amount of misunderstanding about what it really is.

This issue has troubled Len Starnes, Former Global Head of Digital Sales and Marketing at Bayer, now an independent consultant who provides strategic social media and digital marketing services to the global pharma industry.

“When I spoke to marketers,” said Starnes, “from a conceptual stand-point they said multichannel market-ing is easy to understand—using multiple channel to target, motivate and engage your audience. Every-one seemed to understand that. But the second thing I discovered was that it was extremely difficult in practice.”

Starnes hosted a poll on LinkdedIn that asked, "Will pharma marketing become de facto multichannel marketing in future?" (see Figure 1, below). A more complete presentation of results from that poll as well as comments from Starnes and colleagues can be found in Chapter 3 (see “Multichannel Marketing: Easy to Brag About, but Difficult to Do”; page 13).

This article summarizes the discussion lead by Starnes during a recent MultiChannel Webinar hosted by eyeforpharma, which also hosted the 2nd Annual Multichannel and Mobile Strategy conference November, 2012, in London. Also speaking at the webinar was Tim White, Head of Digital Commer-cialization—Europe for Novartis, Benedikt Hoffmann, Head of eBusiness, Janssen, and Morten Kamp Jorgensen, Director, Corporate Brand & Reputation, at Vestas, a company that specializes in wind power solutions.

The following is an edited transcript of the eyeforpharma webinar. Listen to the webinar here: http://bit.ly/QCvNBh

Len Starnes: The first question is a very simple one: What exactly is Multichannel? Is there one single definition that fits all?

Tim White: Multichannel is a very complex topic. For me the most important thing to understand is that channels are just the ways that we communicate with our customers. Put that way, it sounds simple. But multi-channel is really the strategy—the business process—that we use to approach our customers.

A

Len Starnes

Figure 1: Len Starnes’ LinkedIn MCM Poll Results

Continues on page 11… Tim White

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Taking Multichannel Marketing To The Next Level From The Multichannel Maturity Mandate, Forrester Research (http://bit.ly/Pi1fbB)

There is no de facto standard definition of multichannel marketing. Forrester explores the practice by describing four levels of multichannel maturity, identifying the key characteristics of each level (see Figure 2, below). The four levels are:

• Channel entropy. Non-integrated channel operations are the baseline of the multichannel maturity model. Marketers in this category independently manage customer interactions within each channel. They may have multiple teams executing programs in the same channel. The business logic behind the customer engagement strategy is different in each channel. Companies operating at this stage maintain independent channel-specific data stores. No true cross-channel capabilities exist across the enterprise. Only 5% of the respondents in our survey fell into this category.

• Channel independence. Managed channel operation is the mode in the next stage in the maturity model. Marketers in this category still manage customer engagement independently within each channel. However, they have integrated the teams executing programs in the same channel. The lack of process and technology integration we discovered leads to the conclusion that more than 50% of the respondents in the commissioned Forrester survey, who characterized themselves as “mature” multichannel practitioners, fell into this category.

• Multichannel integration. Integrated, cross-channel visibility characterizes the third stage of maturity. Marketers operating at this level have a single view of customer data, interactions, and transactions across multiple channels, in near real time. The integrated view of the customer’s multichannel interactions enables marketers to execute cross-channel campaigns and to analyze the results. However, this integration is at the data level, not the process level. Customers can, and usually do, have different experiences in different channels.

• Multichannel engagement. Holistic cross-channel customer engagement is the practice of the most mature multichannel marketers. Marketers operating at this level have a single view of customer data, interactions, and transactions across multiple channels. Processes are consistent across channel and user interfaces. Customer engagement in each channel is aware, and informed by, offers and interactions in other channels. Customers expect and receive consistent, reliable interactions with the company.

Figure 2. MCM Must Evolve. Source: Starnes, SlideShare (http://slidesha.re/Pi2mrK)

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Going even further, we can talk about how we are getting information back from customers. The key, however, is that we are leveraging the field force, email, Web, social, mobile—any of these various ways that we can communicate—it’s the full package that drives a true multichannel strategy.

Benedikt Hoffmann: When implementing multichannel marketing, sometimes you have to take some shortcuts and focus on certain channels. But as Tim said, it’s really looking at the whole mix of channels. But when when you’re trying to solve a specific challenge, you will have to focus on some channels to also prove the impact of what you are doing.

Morten Kamp Jorgensen: To me multichannel is about ensuring an integrated approach to the key audience and making sure that you actually hit them with targeted mes-sages with the highest possible relevance and making it as con-venient and valuable for them to engage with you.

LS: Definitions are good but not always that useful. So let’s move on and really get to the core of

multichannel. What really are the essentials of true or good multichannel? I’m stressing true and good here. What are the keys to executing really good multi-channels?

BH: You clearly have to define the objective—what do you want to achieve and be pragmatic because you have to show the value of what you’re doing quite quickly. Sometimes you try to do the whole market channel, but it takes too long to show the value. The approach we are using is to define specific challenges and then identify the channels we are going to use. Then we implement the campaign and make sure that we integrate all the data across the different channels. Afterwards can show the value in terms of cost saving but also in terms of sales impact.

TW: Integration for me is absolutely key. We may be doing an email campaign and also have reps out in the field with iPads. But in order to do “true multichannel” it’s about setting that vision, setting that target and then working through the processes, working to set up the right integrated systems. That requires working with IT and other partners. Behind all that is a great deal of change management and being able to understand where our customers are and to be accessing them on their terms and getting them the right message at the right time.

LS: Do you have any comments about the technology that is required? Do you have in-house technology or from the vendor side?

TW: Personally, I am a big believer in subscriber soft-ware service [software as a service; SaaS]. I think SaaS gives conservative industries like pharma the ability to catch up quite quickly on the tech side and actually stay up to speed with the rest of the world. It’s all about find-ing the right technology partner.

But let’s face it. Other industries are doing multichannel marketing very, very well as the technology exists. That’s why I come back to the idea that this is an internal thing, this is within organizations. So let’s go out there, let’s find the right technology and then let’s starts focusing on the business and the people in our organiz-ation and make it a reality.

LS: I would like to move on now to channels. How do you select the right channels, bearing in mind we have so many channels today?

BH: One approach I am using in Germany—where we still have a pretty good access to physicians by the field force—is to use the field force to capture channel pref-erences of our physician customers.

The other is approach is to just use different channels like direct mailing, phone calls, etc. and see who is responding and who is not responding and thereby refine the channel preference of your physicians.

So I think you just have to start and have a good CRM system in the back end to be able to improve the channel preference information you have.

TW: You have to first look at the objectives and then go fish where the fish are. Over time you can let your customers self select their preferred channels. This is the concept of approaching your customers on their own terms. It requires marketers that understand their customers. At that point you are starting to get into service itself and not just some kind of multichannel one way marketing.

LS: Is social media a channel suitable for pharma?

TW: Typically, we think of Facebook, Twitter, LinkedIn, etc. as social media “channels.” But social media in itself is a concept that says content is shareable. We are listening and not just pushing out information via these channels. Not everything is going to have a share on Facebook button and or is going to be on Twitter because we obviously know the regulatory and other limitations the drug industry faces.

Morten Kamp Jorgensen

Continues…

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We can learn a lot of lessons from other companies that have approached social media from service perspective and also learn who are the influencers in our sector and what they do in social channels.

LS: While multichannel marketing usually focuses on old marketing channels, most of your job titles refer to digital marketing. Does this mean that your focus is exclusively on digital channels or do you manage all channels?

BH: Digital is our focus area, but we are integrating that with all the alternative channels from direct marketing to digital. Of course, we try to integrate what we are doing with our field force. So yes it says digital but it means multichannel and including a very closed loop with our field force.

LS: Let’s move on now to a question that I know a lot of people are interested in. How do you measure ROI or determine cross channel KPIs?

BH: In the end you have to show senior management what is the sales impact or what is the return on investment. That’s the ultimate goal. But of course you normally also define leading indicators that show you whether your project is running well and which channel might be the most effective one. If you have to show the value for the first time, you should define some pilots and say okay we are just using this approach in one region with one customer segment and then track the sales. That’s one way to do it.

LS: But do you try to determine common KPIs for each channel so you have some basis for comparison?

BH: You can say okay we reached so many physicians by email, so many opened and so many clicked through, but in the end it doesn’t show you anything in terms of sales. So you can measure all those leading indicators and you can compare different campaigns by channel. But in the end you have to show the sales impact or the impact of cost savings. This you can only do if you really define areas or customer segments where you have a control group and where you have the group where you are implementing the certain campaign.

LS: Tim, would you like to tell us what Novartis is doing on the ROI front?

TW: ROI is a really hot topic. In countries where we can’t subscribe to customer level data it’s very hard to determine pure ROI on anything. We have different models that we use to try and get around this, but digital gives us a whole new set of metrics that we are able to wrap around these activities as well. So we can look at things like the amount of time we are actually spending with our customers and whether or not that is increasing.

With digital, we now understand things we never knew before such as what type of content is actually being discussed and what conversations are having an effect on sales. There are certainly leading performance indicators, but the ability to then see where the different levers that you are pulling are having an effect on your sales is only going to come when you can understand as much as possible the full picture of the contact points you are having with your customers.

It might sound like a broken record but it comes from integration, it comes from making sure your technology is all talking to itself and you have a 360 view of the customer. Then you look at the sales from there.

Driving Change Management

LS: Are you finding that marketers are willing to accept these types of leading indicators rather than hard ROI? How do your marketers feel about that?

MKJ: I don’t think the marketers are the problem here. I’m more worried about executive management. It’s difficult to argue against facts. So that’s why we try and base all our efforts on the power of facts and create as much transparency around our activities as possible. We measure everything we do and that can actually take you quite far.

To do that you need to develop a culture of profession-alizing your business. So ultimately I would also argue this is the matter of change management as was mentioned earlier.

LS: Regarding change management, do you have any advice for marketers that are used to traditional field force campaigns and not multichannel or integration? How have you driven change management?

TW: My perspective on change management is that you have to set a vision. You have to paint a picture of where you want to go. Maybe that means we are not going to get there in one year or in maybe one project, but we are going to reshape the organization. Over time what happens is you can get people starting to actually believe in that and they can start to say this is why we are doing it and this is why my role fits into this puzzle.

Also, find your milestones and say we’ve got a lot of success out of this project and we saved X amount of millions of Euros or we grew share voice by 10% by implementing this. These are really good milestones but the real change management then comes in when you say we are going here, here is the vision, here is the picture and then everything starts to fall in place over time but it is a process it’s not something that happens overnight.

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Multichannel Marketing Easy to Brag About, but Difficult to Do

This article originally appeared in the July 26, 2012, issue of Pharma Marketing News (Reprint #PMN-11703)

Written by John Mack, Editor

Chapter 3

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ultichannel pharma marketing (MCM) is conceptually relatively simple to under-stand, but incredibly difficult in practice,"

says Len Starnes, former Head of Digital Marketing & Sales, General Medicine at Bayer Schering Pharma. "That said, multichannel is not a transient phenomenon, it's here to stay," according to Starnes.

Starnes is well-known for his LinkedIn surveys, such as a 2009 survey that asked "Will doctors' social networks radically change pharma marketing & sales?" Thirty-one percent of respondents to that survey thought this would happen within 2 years (by 2011) and 38% said within 5 years (2014). For more on that, read "Socially Challenged Pharma" (http://bit.ly/pmn8403). I think it hasn't happened yet, but multichannel marketing (MCM)

to physicians these days must surely include social media "channels" and even more importantly mobile.

But given the "incredible difficulty" of implementing MCM, Starnes is hosting another survey on LinkedIn (here), which asks "Will pharma marketing become de facto multichannel marketing in future?" The results to date are shown in the chart below (see Figure 1). There seems to be overwhelming sentiment that MCM will be de facto for pharma within 5 years.

Starnes' survey also has generated a good number of comments, some of which are included below. My own opinion, however, has to do with the difficulty of imple-mentation vs. the ease with which pharma marketers talk about MCM, which used to be called "Customer Relationship Marketing (CRM)."

“M

Figure 1. Will pharma marketing become de facto multichannel marketing in the future? LinkedIn poll by Len Starnes. N=226. Survey ended August, 2012.

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MCM is the New CRM I've attended many pharma marketing conferences in the past that focused on "CRM." These days, however, I don't see any CRM presentations included in confer-ence agendas, whereas there are conferences dedi-cateed to "Multichannel Marketing." More often than not, these conferences actually focus on digital ma-rketing. The September, 2012, Pharma Marketing Show (Europe) is a good example. Its description includes this observation:

"The pharmaceutical marketing sector is fast moving with new marketing techniques developing to meet the wider challenges of the industry. Over recent years, pharma has learnt what emerging technologies such as online and mobile can offer to a marketing campaign."

There were some very interesting presentations on the agenda; even a couple that address the "difficult" part of MCM: data collection and management (propeller head stuff) such as:

• Managing and analysing vast amounts of data • How can pharma utilise data to enhance

strategic marketing? • Using big data to integrate multiple sourced

customer information and improve quality of customer engagement

Bring in the Propeller Heads In my mind, pharma marketers are "old school", mean-ing they believe marketing is more of an art than a science (see, for example, "Are Marketers Artists or Mathematicians?"; http://bit.ly/UPiD3L).

When I talk to my nephew who sells digital media advertising, it's all about numbers and esoteric measurement terminology, which is way over my head. These numbers, I bet, cause many pharma marketers' eyes to glaze over. But for MCM to be successful, more pharma marketers must become "propeller heads" or hire, enable, and listen to them, IMHO.

Here's a sampling of what experts are saying in relation to Len Starnes' LinkedIn survey:

Sales Are Nowhere to be Seen Christopher Wade said: Len - good question! It's not surprising that the consensus is that MCM will become the norm - in terms of aspiration if not actual reality - over the next few years, but I suspect that like other tech-dependent initiatives it will remain the preserve of the few if it sits in the same marketing organisations that exist today. My opinion is that one of the key points on which pharma trips time and again is that sales are nowhere to be seen. Marketing's role as understanding the product / customer / need space and formulating tactics is no less important, but the group that has the

information, resources and experience in executing complex activities is the sales force, or more specifically the SFE / SFO group. I would hope that marketing has access to a level of analyst support that helps them to identify key segments and understand their behaviour and preferences, but implementing is where sales excels - they just need to realise that their competence spans more than the rep/territory model.

MCM Requires Two-way Dialogue Robert Nauman said: Excellent discussion. Thanks for asking the question. I honestly have to say no. My rational is born from the assumption that good Multi-channel marketing requires some interaction on the part of the other party. We all suggest it is the marketing paradigm that has to change here. I am growing skep-tical in my belief that will occur anytime soon on the patient or the HCP side, can industry create a real two way dialogue. And given the recent US case with GSK and there $3Billion whistleblower settlement, My opin-ion is that other entities (not supported by pharma dollars) will be producing the content that meets the needs of healthcare consumers and professionals today. And pharma marketing will not be paying for that content creation. I believe that if truly tested, pharma produced content scores very poorly to content produc-ed via other healthcare entities. In terms of the multi-channels, it adds a level of complexity that in the silo'd world of pharma marketing today, may not be oper-ational. The grow of mobile and video's use in that channel is tremendous. And in developing nations, SMS messaging is making great strides in improving health care yet the industry is not leading in either of these approaches. It is sad, but I believe this is pushing marketers into similar roles that we see in the medical device industry today. Very few marketing dollars, very little innovation.

MCM Requires Content with Value Paul Simms said: Great question, Len. You're good at these! Rob, hope you're well (haven't spoken in ages...) I wanted to respond to your point, which unfortunately saddened me. I see every industry in the world, with the exception of pharma, investing in 'content' as a way of engaging its audience - because it works.Yet pharma still seems reluctant to engage those who can speak in the doctor's language (the medical affairs / liaison folks) fully as a communication device. These days we have simply moved from physician access to now worrying about payer access and soon it will be fretting over patient access. To me it feels like pharma continues to create the equivalent of a TV channel that plays only commercials - and that's never going to create high engagement or trust. Stuck on the one blaring channel, night and day. Yes, you are right, pharma is starting

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from a difficult position and news like that from GSK doesn't help. But are you resigning us all to eternal oblivion? To me the only way to dig ourselves out of this rut is to begin to produce content of value (let alone ser-vices of value) and to build those bridges. Otherwise pharma, and by default, healthcare will never reach its true potential. It is possible for GSK et al to produce content of value and to build trust that way. As for multichannel, I can't believe we're talking about it like it's something revolutionary (yes I'm guilty of running events on the topic but that's only because it's what everyone tells me they want...). I'm personally astound-ed we're even bothering to distinguish between the channel at all. Indeed it's a gross manifestation of the focus on the medium rather than the message. As some have said, we should simply provide valuable wisdom in whatever convenient format our customers request, and use technology to adapt to multiple chan-nels in a semi-automated fashion. Again, that's what other industries do. Can you imagine FMCG or other B2C industries having a big debate about multichannel???

Len Starnes: Reflecting on the comments from both Rob and Paul I am fully convinced that pharma is capable of providing "content", via whatever channel is necessary, and that HCPs want the industry to deliver it -- but it must be on their terms. Using Paul's TV analogy this would be a shift from airing commercials to running full-on documentaries. I state this having recently spoken to a leading doctors' social network here in Germany, Esanum, who's CEO confirmed that 80% of its 33,000 members want to access pharma "content" and engage with pharma peers (aka Medical Affairs, MLOs). This once again reconfirms my research with similar networks globally which indicates that the majority of community members welcome industry engagement of all types. What astounds me is that pharma largely continues to ignore these networks in its multichannel efforts -- snail mail and email still appear to be brand managers' favourites.

MCM Requires Resources and Experienced Marketers, Not Rookies Sandra Muzinich: Len, thanks for instigating a great MCM debate! Mmm are we becoming tired of hearing all about the wonderful world of MCM but seeing very little of it in practice in Pharma? I have hung my hat on 10 years...many of my reasons already clearly articu-lated by previous comments. It is inevitable but it will take turning Pharma marketing and its entire business model on its head - that's where it is getting stuck today...old familiar models, Sales in their DNA, product centric focus - maybe it's safer to do what we've always done? As Jonathan R. already mentioned, the mind set needs to shift to long term strategies which outlast the current short term tenure of a brand manager in post - with resources and expertise to match. Now we have to think beyond tactics and we can no longer give this job to a rookie marketer who just happens to be an ex-Sales Rep. MCM is a completely new way of looking at the Pharma business model and a truly multidisciplinary undertaking. Who is responsible for managing that kind of change in a company? I am very excited for the companies who recognise this and have the insight and commitment to their customers to truly adapt - these will be the companies that thrive....it's time to move on!

MCM Is Expensive R. A. Bavasso: Defacto? Pharma has not even mastered single channel marketing, how will it master MCM? I think that vendors will be more proactive in promoting MCM strategies and tactics but in a multi-vendor per brand world, who will coordinate central-ization? MCM, if done correctly, is expensive. Much more so than the single message, disjointed channel approach. I think part of the reluctance of Pharma to traverse MCM is the overwhelmingly cerebral under-taking it requires and the "not currently budgeted" costs to ensure success. All of us agree that MCM has a greater likelihood of success than traditional efforts but the long term timeframe required to realize those successes does not fit within the Pharma brand man-ager's traditional short term horizon (average term of brand manager is 18 months). It took 13 years for Pharma to adopt CLM with any vigor. Count on another 10 - 15 years before you see true MCM adoption.

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Multichannel Marketing & Medical Reprints

Putting Science on iPads, Apps, and HCP Websites

This article originally appeared in the July 26, 2012, issue of Pharma Marketing News (Reprint #PMN-11701)

Written by John Mack, Editor

Chapter 4

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he distribution of medical reprints to healthcare professionals (HCPs) by sales reps is not only a logistical problem but a channel problem as well.

Physicians these days are less and less likely to spend much time with sales reps and many are reluctant to open their doors to sales reps. On top of that, physi-cians are now very comfortable using mobile devices to access electronic versions of reprints (see “What Do HCPs Really Want?,” page 19).

“The good old paper reprint dis-tribution world is a hassle these days,” said Peter Derycz, President and CEO of Reprints Desk, during a recent Pharma Marketing Talk podcast.

“The logistical challenge of getting the reprints into the hands of your sales reps or delivered to the right conference at the right time is a hassle in and of itself,” said Derycz. “Plus you have to deal

with a variety of publishers regarding copyright pay-ments and also make sure that you are in compliance with FDA regulations related to the distribution of reprints” (for more on that topic, see “FDA Finalizes Guidance on Distribution of Reprints”; PMN81-03; http://bit.ly/PMN8103).

Reprints Desk (www.reprintsdesk.com helps life science companies and communications agencies deploy medical reprints as part of their multichannel marketing and sales efforts. For many of life science companies and healthcare agencies, Reprints Desk is a one-stop shop for quoting, licensing, and deployment of single e-prints and multi-article, multi-publisher e-print collections.

Recently, Reprints Desk launched a product called Article Viewer, which allows life science companies and publishers to deploy copyrighted e-prints and other marketing materials via iPads and other tablets, or via their own apps and websites in a controlled manner (see box, right).

The following is an edited transcript of an interview with Peter Derycz. You can listen to the full interview here: http://bit.ly/PMTalk169

John Mack (JM): Pharmaceutical companies have always distributed reprints to physicians, even reprints of published studies on off-label use of drugs if the physician specifically asked for them. Is that primarily the role that Reprints Desk is involved in when it comes to pharmaceutical marketing?

Peter Derycz (PD): Yes. Scientific, peer-reviewed reprints are a good way to communicate the effective-

ness of a product or how it compares with other products. We try to assist in this scientific-based communication and marketing process.

e-Reprint Deployment Challenges

JM: As mentioned in the introduction, there are sig-nificant challenges involved in the distribution of reprints by pharma companies, including copyright issues. Can you explain a little bit more what challenges pharma faces with regard to the distribution of reprints?

T

Peter Derycz

Article Viewer

Article Viewer is a mobile/web application for deploying copyrighted medical reprints via iPads, your own app for mobile devices, prod-uct websites, and portals for healthcare pro-fessionals and patients.

Reprints Desk specifically designed Article Viewer for use by companies in pharma-ceuticals, biotechnology, medical devices and diagnostics, as well as scientific publishing.

Article Viewer is powered by a content man-agement console that enables authorized administrators to efficiently load and deploy article e-prints and to access on-demand usage analytics.

Users with iPads can access the content they need by downloading the free Article Viewer mobile app from Apple's App Store, then load articles they have licensed for anytime and anywhere access. Users can also access article e-prints, both single e-prints and collections of e-prints, via a sleek interface on the web.

Articles remain accessible according to license agreements secured with rights holders.

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What Do HCPs Really Want? Sales Rep Interactions, Regulatory Compliance, and Digital Content Strategies Derycz is seeing a trend from queries regarding the distribution of medical reprints. More questions are focused in particular on mobile distribution. About 50% of reprint distribution currently is electronic and the trend is definitely shifting towards a world in which it will soon be 80% electronic and 20% print.

This same trend is being seen for the distribution of books to the general public. “Amazon really has to distribute both print- based and electronic books,” said Derycz. “Many life science companies are experiencing the same dilemma where they have to do both print distribution and electronic distribution.”

Reprints Desk recently announced the launch of HCPengage.com, which features video interviews with healthcare professionals and industry thought leaders from The CementBloc, Digitas Health, Epstein Becker Green, and Prolifiq Software, Inc., discussing:

• Opinions and preferences for sales rep interactions • The impact of scientific journal content • Digital content strategies & iPads • Off label promotions & Good Promotional Practices • Plus a number of other topics

Doctors Prefer Online/Mobile for Journal Reprints (from “Study: doctors prefer online to print”; http://bit.ly/MgtAvr) When making clinical decisions doctors spend twice as much time using online resources like professional websites and mobile apps compared to print, according to an online study of more than 500 practicing US physicians by Google and Manhattan Research. The study found print resources such as journals and

reference materials were seen as too cumbersome.

“Online sources outweigh the print, it’s so much easier,” said one respon-dent, an obstetrics/gynecology physician. “You don’t need to have books and journals in front of you, you can find information on your iPhone or laptop or wherever you are. I can be in with a patient and I can easily give the patient infor-mation or be able to explain things a little more easily.”

The study, Screen to Script - The Doctor’s Digital Path to Treatment, focused on trying to understand U.S. doctors’ digital adoption across devices and media channels and how this impacts patient treatment decisions. Find the study results here: http://bit.ly/MgCj0J

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PD: As already mentioned, just the good old paper reprints are a hassle in and of themselves. First, there is a distribution hassle. Then of course, it’s copyrighted material and you have an additional compliance layer regarding that.

In the current era of the Web, iPads and mobile, it all gets a little bit more complicated. You still have all the physical distribution issues going on, but now you have to figure out what to with iPads, which are becoming ubiquitous and indispensible to physicians who use them all day long and even at home. In a typical scen-ario we’ve seen, a pharma company just bought 4,000 iPads for their sales reps. What will they be showing on them that physicians value?

We all know that physicians and other healthcare professionals are using the Web and the Internet to access information and they’re using iPads to do that (see page 19). Sales reps today are increasingly

showing HCPs information using web browsers on notebook computers and on mobile devices—primarily the iPad. Microsoft recently announced their Surface tablet and I’m sure they’ll get some uptake among physicians with that.

So deploying scientific reprints on the Web and on the iPad starts getting more complicated than just the old-fashioned paper reprints.

Nevertheless, there’s definitely a shift to digital distri-bution of scientific reprints by healthcare companies. They put them on websites, on kiosks at medical meet-ings, and give them to sales reps to display on all sorts of devices. There’s a lot of copyright tracking and mon-itoring and reporting that goes along with that.

Figure 1. Article Viewer Bookshelf on iPad. For more information on how to use the Article Viewer or get more information about this app, visit the Reprints Desk Website (http://info.reprintsdesk.com/how-to-use-AV/).

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Digital Facilitates Compliance, Retraction, & Replacement

JM: What about FDA and other laws and regulations regarding distribution of e-reprints?

PD: Sometimes the FDA doesn’t like what a company is doing in terms of its marketing communications. If FDA requires something to be pulled or retracted or replaced, Article Viewer makes it easy to retract what’s being distributed and even replace what has been distributed with something new.

There’s also the Physician Payment Sunshine Act, which requires pharma companies to keep track of what they are giving to physicians in terms of hard cash as well as non-cash items of value such as reprints.

So when you distribute reprints, whether it’s via print or electronically, you have to keep track of who you’re giving the reprints to and the value. That’s were the electronic realm can really help out because you can do a lot more real-time tracking and statistics about who’s viewing what and when.

JM: Let’s talk a little bit more about the Article Viewer mobile app on the iPad or iPhone. Is this app meant for physicians or is it meant for sales reps to use with physicians? Tell us how it’s used.

PD: It’s important for pharma to get medical reprints into the hands of healthcare professionals, but also into the hands of their sales reps. Article Viewer is used both by sales reps and by physicians.

Life science companies are buying thousands of iPads and putting them in the hands of their sales reps to use as a more effective communications tool than the tablets and laptop computers currently being used by many reps.

We developed the Article Viewer system as a native iPad app to meet these needs.

How Physicians Use Article Viewer

JM: So physicians are be able to download the app for free, and are given passcodes to gain access to reprints. Is that how it works?

PD: Essentially, yes. The pharma sponsor or sales rep is able to send physicians a link and that link will take them to a website where the article or the reprints can be displayed or where HCPs can get an access code, which they can use in the iPad Article Viewer app. Once the code is entered, the reprints automatically download into the app directly. Article Viewer can also be used to display reprints that the physician already has down-loaded from the website.

So there are two ways to get a reprint—through the web browser and directly through app. The physician downloads the app for free, puts in the code, and the desired reprints and related documents are downloaded in one fell swoop.

JM: When I used the app I saw a bookshelf just as if I was ordering books from iTunes or from Amazon (see Figure 1, page 20).

PD: We tried to take advantage of the eBook reader type of look and feel so that physicians already know how to use Article Viewer.

Once the documents are on the bookshelf, you don’t need an Internet connection anymore. So physicians can read their electronic reprints on a plane or any-where without an Internet connection, which is great. The resolution is higher on these tablets than they are on typical computers so they just look nicer and are easier to read.

Statistics and ROI

JM: What other benefits are there to having reprints on an iPad for pharmaceutical marketers and salespeople? Are there ways, for example, for sponsors to determine what reprints their physicians are looking at? What kinds of return on investment (ROI) can you talk about?

PD: There are several reasons why accurate measure-ement of use is important. One concerns reprint copy-rights, which, as you know, are owned by the publish-ers. In the old days, we used to buy 5,000 print copies sold outright by the publisher. Now, when life science companies go to publishers and say they want to distribute the reprints on iPads, the publisher is saying well wait a minute, how do I know how many downloads and how many views are going to be occurring? The publisher cannot just hand over a pdf file for untracked or unlimited viewing unless the price was right; that is, exorbitant.

So one of the ROIs for controlled distribution of medical reprints on iPads is the fact that pharma companies can say to the publisher that they’re only going to allow re-prints to be viewed 5,000 times, or whatever. One of the main benefits of the Article Viewer system is that it counts the views and makes this sort of deal possible. Once the 5,000 views are made and counted, the re-print is no longer viewable. This allows the life science company to license electronic reprints on a predictable basis in terms of pricing.

In other words, one return on investment of Reprint Viewer is the benefit from better pricing on the elec-tronic reprints that are being distributed.

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Another benefit of working with Reprints Desk is having a license with publishers to provide the physician user with a single interface for a variety of reprints from diff-erent sources.

Imagine the cost of doing this yourself. We’ve got a system that’s ready built to do controlled distribution of these reprints. If your company just bought a thousand iPads and you want to get scientific copyrighted articles on them, we got a tool that’s readymade. In addition, the Article Viewer iPad app is available for free on the iTunes store.

In this case, the return on investment is you don’t have to build your own app and the money you save can be invested elsewhere.

Roll Your Own App, But Let Reprints Desk Keep Track

But, if you already have your own iPad app, we can integrate our controlled distribution mechanism within your app. So let’s say you’re a larger life science com-pany, you have a development team and you’ve built iPad apps but want to include reprints in them but just don’t have the mechanism to control, count and track. You can connect your own app to our Article Viewer system and then use it to solve that problem.

HCPEngage.com

JM: Okay. Well we can probably talk a lot more, but I wanted to give you a chance to tell people how they can find out more about Reprints Desk and the Article Viewer.

PD: Thanks. Well, the key point I’d like to make is that medical reprints are definitely shifting towards electronic and that’s happening today and is integral to every-body’s lifestyle. More information about that and our products including Article Viewer can be found at www.ReprintsDesk.com.

We also launched a new educational website called HCPEngage.com, which features interviews with healthcare professionals, life science attorneys, health communication agencies, thought leaders, and software companies. We have about three dozen interviews about sales rep interactions, including the impact of scientific reprint content on HCPs. It’s really interesting information about digital content strategies, iPads, off-label promotions and so on.

Future Plans

JM: Article Viewer is an app that was just recently re-leased. Do you have plans for updating it? I know apps are constantly being updated.

PD: Yes. We’ve already run a couple of updates on the app itself and we’ve designed Article Viewer so that it runs on other mobile platforms and operating systems including Android and Microsoft.

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The Evolving Pharma-Physician Relationship

New Power Players & New Technology Force Changes

This article originally appeared in the May 31, 2012, issue of Pharma Marketing News (Reprint #PMN-11504)

Written by Dorothy Wetzel, Contributor and John Mack, Editor

Chapter 5

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3 Things To Do Differently by Dorothy Wetzel

Dorothy Wetzel is the Founding Partner and Chief Extrovert at extrovertic, a full-service healthcare agency that infuses thought leadership and innovation into the communications mix. As former VP, Consumer Marketing at Pfizer Pharma-ceuticals, she worked on blockbuster

brands such as Lipitor, Viagra, Zoloft, and Celebrex. Dorothy’s summary “3 Things To Do Differently” first appeared on her company’s blog, Intro to Expo. It is republished here with permission.

I had the opportunity to participate in the Pharma-Marketing Summit 2012 in Chicago a few weeks ago. Unlike most summits where you have to sit through 3 days of dreck, this conference’s program was a veritable goldmine of thought-provoking presentations from a range of healthcare marketing leaders.

My top 3 takeaways about what pharma marketers should be doing differently in the future are:

1. Heed the needs of the new power players: Payers and patients.

2. Social media: Engage or be seen as indifferent. 3. Prepare for the “unexpected inevitable.”

The New Power Players Even with all of the changes in the healthcare land-scape over the past decade, physician marketing remains the heart and soul of every pharmaceutical company. Payer and patient marketing teams generally play second fiddle to their HCP colleagues in terms of budget, review committee time, perceived value, and company attention. Some of the talks at the summit, however, made me think marketing departments might want to change gears to focus on those who are increasingly calling the shots: Payers and patients.

While talking primarily about emerging markets, Neil Wolfe, Global Alliance Lead of Bristol-Myers Squibb, was adamant about the growing power of payers to make or break a drug. Payers have a different set of criteria for what “good” looks like that revolves more around populations than individuals. So according to Neil, a product that reduces the intensity of a heart attack is not as good as a drug that lowers hospital re-admittance rates.

In the past, a big sales force armed with smart market-ing pieces could often overcome payer restrictions at the physician office level. With sales forces shrinking, office access becoming more limited, and changes looming on the US policy front, I couldn’t help but extrapolate that payers will soon have the same grip here.

No extrapolation is needed, however, to see that patient opinion is increasingly a powerful lever in determining a product’s adoption and commercial success. At the summit, Dr. Frank Spinelli, a physician currently in private practice and formerly the Clinical Director of HIV Services at New York’s Cabrini Medical Center, spoke about how he and his partner (also a physician) finally set upon a definitive course of treatment for his part-ner’s cardiovascular condition only after joining and consulting the relevant Facebook community.

Consulting with 3 different physician specialists left them where they began— scared and unsure about which course to take. So Dr. Spinelli and his partner turned to Facebook and got passionate, personal, and specific information needed to tease out a way forward that made sense for his partner’s particular situation. This example is all the more powerful because it illustrates a growing trend of physicians turning to patient communities to help understand and solve clinical problems.

[For a summary of Dr. Spinelli’s presentation, see “Evolving Technologies and the Future of the Pharma/HCP Relationship,” page 26.]

But as the most recent Neilsen Study about global consumers’ trust in advertising points out, Dr. Spinelli is not alone in acting on information received online. 70% of those polled said they completely/somewhat trust consumer opinions posted online. Even going beyond the issue of presumed bias, why isn’t there more useful information being provided by experts like physicians and pharmaceutical companies?

Sometimes it's the fact that the labeling doesn’t contain all the information a patient needs—for example, how to deal successfully with side effects. If it’s not in the label, despite being medically accurate, helpful information is withheld from patients—end of story. But that repre-sents organizational inertia to me. I’ve seen some organizations develop new ways to adhere to the spirit of the regulations and dispense the needed advice. With every patient now having a trusted voice, doesn’t it make sense to be helpful wherever you can?

Which brings me to my second major conclusion:

Engage or be seen as indifferent.

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Pharma’s Social Media Journey While patients and doctors are fully engaging in social media to solve their health issues, what about pharma? John “PharmaGuy” Mack answered this question with a very comprehensive chronology of pharma’s activities in the social media sphere.

In reviewing John’s presentation post-conference, it struck me how few examples there were of truly helpful engagement with patients. One standout was Astra-Zeneca’s live chat about its prescription savings program, AZ&Me.™

In other industries, customer care similar to what Astra-Zeneca offers is a major focus of companies’ social media efforts. There are even conferences dedicated solely to the use of social media for customer service. Financial services manage to create meaningful, cus-tomer service offerings through social media, despite regulatory and public opinion pressures similar to those in the pharma world.

[You can access the presentation “Pharma Social Media Trials & Tribulations” on SlideShare here: http://slidesha.re/LZq7A1]

Despite FDA Inaction, We Know What to Do As Peter Pitts from the Center for Medicine in the Public Interest pointed out in an excellent presentation on social media, the offline rules apply to the online environment. Despite the lack of definitive FDA social media guidance, we do know what to do. I’d argue that ignoring consumers’ online complaints and questions is akin to refusing to answer phone calls to medical information lines.

It is easy to focus on the costs of answering patient questions (additional FTEs, infrastructure costs, and review time); however, angry patients have their costs, too! Frustrated patients now have a public outlet—the online community—where one woman blogged about how she did not receive a satisfactory response to her questions about why her hair did not grow back after her chemotherapy ended. No one likes to feel ignored.

Healthcare providers increasingly see that indifference has a tangible negative impact. As Dr. Richard G. Roberts (past president of the American Academy of Family Physicians) has written, doctors who are compassionate and communicative with patients, “can avert not only malpractice claims but also patient injury.” In this vein, 7 Massachusetts hospitals recently launched a "Disclosure, Apology, Offer" initiative to fully disclose mistakes to patients and apologize. Why wouldn’t we expect the same to carry over to the pharmaceutical arena?

While there are regulatory complications, companies like UCB with their PatientsLikeMe® partnership effort are taking a proactive approach to figuring out the challenges of using social media and fostering inter-active dialog with patients. Other companies need to do the same so they can actively engage in answering patient questions or risk being seen as indifferent.

This brings me to my last takeaway:

Prepare for the “unexpected inevitable”

The summit opened my eyes to a number of healthcare issues that I either thought were somewhere way off in the future or of which I had been totally unaware. Our annual planning processes largely ignore these looming changes since the specifics are so uncertain. I’d argue, however, one thing is certain; we spend too much on healthcare in the US and therefore, resources are going to become more limited and/or expensive. Most com-panies ignore this inevitability.

This “blinders on” approach reminds me of an interview I read a few years ago with a Toyota executive talking about Toyota’s decision to invest in the Prius despite operating in the midst of explosive consumer demand for big, gasoline-guzzling SUVs. Toyota thought that no matter what, energy was inevitably going to get more—not less—expensive. So while you can argue about the timing for a hybrid car, you can’t really argue about the inevitable need for one in the future.

It seems to me the same is true with healthcare. What products and practices can pharmaceutical companies develop in anticipation of shrinking dollars being invest-ed in healthcare? The conference presentations pro-vided some interesting “what-if” scenarios to think about.

So what if:

• Mumbai-style hospital cities made their appearance in or near the US? According to Neil Wolfe, patients can get a coronary bypass at one of these hospital cities for about $2,500—about 1/20th of what it costs in the US with overall outcomes the same or better than the major US centers of excellence

• The goal of US health policy went from offering the most “advanced” healthcare regardless of cost, to one based on getting the largest number of people covered with the least expensive option?

• Physicians get compensated on the quality of care they deliver versus the quantity (as is supposed to happen in 2014)?

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• Direct-to-patient pharmaceutical shipping went from a Loss Of Exclusivity strategy to a commonplace way of conducting business?

• Obviously, a company can’t prepare for all the unexpected inevitabilities. However, Ellen Brett, a former colleague of mine who headed up Global Strategy and Innovation at Pfizer, suggests a company can:

• Come to a consensus about the most likely and important changes

• Engage in scenario planning

With some dramatic changes looming in 2014, shouldn’t 2013 planning incorporate at least a nod to the future?

While none of my 3 takeaways from the PharmaMarket-ing Summit were out-of-the-blue surprises to me, each of them underscored the urgency to start acting NOW. Healthcare marketers can leverage lessons learned from counterparts in other industries that have come to understand and adopt new approaches before us. I still remember a Wyeth colleague telling me in the mid-1990’s that he didn’t have to invest promotional dollars in his Managed Care Organization customers, since fee-for-service practices still accounted for half of his business.

Wonder what he is doing now?

Is he thinking, “What if I had invested more in preparing for the future, shifting customer segments, the new ways to engage, and the inevitable realities of the future?” If not, then he should be.

###

Emerging Technologies and the Future of the Pharma/HCP Relationship By John Mack

Wetzel pointed out in her summary that there is a growing trend of physicians turning to patient com-munities to help understand and solve clinical problems (see page 24). She referred to the presentation by Frank Spinelli, M.D., at the PharmaMarketing Summit 2012 in Chicago. The following is a summary of that presentation.

Dr. Spinelli recounted the evolution of his experience with the pharmaceutical industry as follows:

• 1995: Pharma-friendly residency • 2000: Chief Resident and worked closely with

Pharma − Sponsored lunches − Grand Rounds − Dinners, events, parties, happy hours

• 2001: First practice was Pharma-friendly • 2010: Current practice and hospital affiliation

are NOT Pharma-friendly

He suggested that many physicians his age have experienced the same evolution. These days, it is likely that physicians will experience pharma-unfriendliness at the beginning of their careers.

Spinelli summarized results of a NEJM national survey of physicians that compared the financial perks physi-cians received in 2004 compared to 2001. The sum-mary is presented in the table below.

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Impact of PhRMA Code What happened between 2001 and 2004? In 2002, the Pharmaceutical Research and Manufacturers of America (PhRMA), published its Code on Interactions with Healthcare Professionals (see http://bit.ly/KZ6tzT).

The code states that the interactions between pharma and HCPs should primarily benefit the patients and enhance the practice of medicine. It discourages com-panies from giving HCPs tickets to entertainment or recreational events, goods that do not convey a primary benefit to patients and token consulting and advisory relationships that are used to reimburse HCPs for their time, travel or out of pocket expenses.

Since then, of course, even more light has been shone on the pharma-HCP relationship. The Physician Pay-ments Sunshine Act (PPSA), provisions of which were included in the Patient Protection and Affordable Care Act, will further affect this relationship in ways yet to be determined. The pharma industry already may be making changes in anticipation of reporting payments to physicians.

The Affordable Care Act also includes a provision— that will take effect in 2015—to tie physician payments under Medicare to the quality of care they provide. Physicians will see their payments modified so that those who provide higher value care will receive higher payments than those who provide lower quality care.

“It is clear,” said Spinelli, “that pharmaceutical com-panies will succeed or fail based NOT on how many drugs they sell but on how well they offer improvement in health outcomes.”

Emerging Technologies Spinelli also focused on how emerging technologies will change the physician-patient relationship. The Afford-able Care Act is one catalyst for this change: for ex-ample, it mandates that all medical practices and hos-pitals convert to electronic medical records by 2014. Other physician-patient technology trends that Spinelli noted were:

• Currently, many doctors communicate with their patients via email and text messaging

• Smart phones, iPads and tablets are becoming more important in the doctor-patient relationship

He gave an example of a patient taking a photo of his skin rash using his smartphone and sending it to his physician. “That picture helps the HCP make a diag-nosis and becomes part of the medical record,” said Spinelli. “Although there exists codes to bill for these encounters, insurance companies typically do not

pay for non-face-to-face visits.” Obviously, that is a challenge to the advancement of healthcare technology that could benefit patients and physicians alike.

“Patients and the government are pushing doctors and insurance companies kicking and screaming into adopt-ing emerging technologies,” said Spinelli.

Other emerging healthcare technologies that Spinelli mentioned include:

• Consult reports from referring physicians, labs, and x-rays reports can all be linked to patient’s medical record saving paper and postage; making appointments, new patient registration and prescription renewal requests can all be done through electronic medical records (EMR)

• Patients can log on to private access portals from their iPad/tablet, smartphone or home computer to view results

• Prescriptions are transmitted electronically via the EMR

• Psychiatrists already use Skype technology for virtual visits

• Paper prescriptions will be transmitted via apps. Eventually, smartphone app technology will allow pharmacists to scan patients’ device to register prescriptions much the same way that airlines scan smartphone boarding passes

For more about how new technologies may impact healthcare in the near future, see “Exploring the 2.0 Doctor-Patient Relationship”; PMN-115-01 (http://bit.ly/pmn11501).

Technologies That Can Facilitate the Pharma-HCP Relationship In the last half of his presentation, Spenilli focused on how technology can help pharmaceutical companies interact with physicians and help them deal with the new realities of patient care and reimbursement.

iPads and other tablets can help reps convey important product information to physicians in today’s shorter window of opportunity. Laptops need to be booted up and are too cumbersome, said Spenilli. Here are the other advantages of using iPads that Spinelli cited:

• Using an iPad/tablet can be interactive and transform the lecture/detail into a dialogue.

• Physicians are more prone to pick up an iPad and if it allows for interaction by clicking and linking to slides and graphics, it has been shown to leave a more lasting impression on the HCP.

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• Afterwards, reps could provide HCPs with apps for follow up and companies can track if these apps are downloaded.

Social Media Opportunities “Apps are a much better way for a company to repre-sent themselves and communicate through the Internet,” said Spenilli. “Digital technology and social media are now essential for engagement.” He urged pharma to “challenge” its marketing-as-usual modes of (1) driving physicians to prescribe, and (2) encouraging consumers to request treatment.

“The real opportunity for Pharma is to challenge these modes with digital and social media—providing plat-forms that extend the doctor-patient relationship, plac-ing value on the dialogue before and after a script is written,” said Spinelli. “Companies that ignore this approach run the risk of leaving consumers and HCPs feeling ignored and ultimately distancing themselves from their customers.”

Spinelli offered the following advice as to how pharma marketers can adapt to social media:

• Digital resources will be prescribed as part of care regimens; Pharma has to develop and curate reliable, objective information online.

• This information should be geared toward optimizing patient/HCP relationships.

• HCPs must contribute to digital resources and participate in online conversations with the goal of starting a dialogue before consultation and maintaining it through the treatment cycle.

• Brands that focus on merging online and in-office experiences will become the most relevant and valuable to both the HCP and the patient.

The Digital Care Kit: Prescriptions Include Apps “Imagine a relationship that begins in an online community,” said Spinelli. “This leads to an office consult where the patient brings their smartphone containing this information found prior to the office visit. The patient sits with their HCP, accesses this digital resource about wellness, prevention or disease management. In addition to the prescription, patients get a mobile app that facilitates care, monitoring, and adherence. The app reminds them of critical lifestyle

considerations, such as exercise during detected periods of inactivity, and provides geo-targeted restaurants recommendations tailored to a specific diet.”

A “Digital Care Kit” could include a referral to online support groups where patients could track and share their care. Physicians could post answers to questions and nurses would be alerted to patients who are lapsing and schedule an online consultation between office visits.

“The possibilities for brands to facilitate this type of engagement are limitless,” said Spenilli.

In other words, pharmaceutical companies need to develop a life-style/adherence app for every drug it markets. Physicians can then be encouraged to “prescribe” the app along with the drug and hence have a tool that will help them meet the challenges of the new outcomes-driven healthcare world.

So What About the Pharma Sales Rep? Spinelli outlined what he thought was the “ideal field representative profile”:

Venue • By appointment, in-person visits or virtually as

needed? • HCPs and institutions are moving towards “no

rep access,” so can HCPs obtain access to scheduled virtual visits with MSLs or Med Info to provide unscripted answers?

Tools and Resources • Product and disease state information, on-label

and off-label (slide decks on iPads/tablets, links to websites, and apps)

• HCP and patient education material (apps) • Literature searches and medical information

letters via email

In closing, Spinelli had this to say: “As the digital world evolves, the physical interaction between pharma and healthcare providers will diminish. But there is some-thing about the human connection that transports us in a way that digital media will never do. Until the time when in-person humans are replaced, pharma should seize the opportunity to maximize on this most cherish-ed and dwindling connection. Prepare to become a leader in the technological future.

Pharma Marketing News

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Building the “New” Pharma Physician Marketing Model

MedTera’s “Life Long Learning” Platform

This article originally appeared in the February, 2010, issue of Pharma Marketing News (Reprint #PMN-9201)

Written by John Mack, Editor

Chapter 6

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hysicians today are likely to receive drug infor-mation from a variety of sources and more often than not these sources are accessed via the Internet. Devices such as the iPhone—and

soon the iPad—will make it even more convenient for physicians to receive online content.

About 45,000 doctors meet with detailers using online video, and 300,000 physicians say they are open to doing so, according to a September 2008, study from Manhattan Research. At the same time, pharmaceutical companies are paring back the number of sales reps from a high of about 102,000 reps in the field in 2007 to a projected 75,000 in 2012 (see Figure 1, below).

Figure 1: Number of Pharma Sales Reps Past & Future

Upsurge in eMarketing In this new environment, eMarketing—also called non-personal promotion (NPP)—should be con-sidered a tactic with unique advantages. This is undoubtedly a growing tactic in the marketing mix for all companies, pharma included. According to a recent report from the Center for Media research, an Econsultancy survey, conducted in association with ExactTarget of more than 1,000 marketers, found that 46% of companies plan to increase their mar-keting budgets in 2010 and 66% will increase their investments in digital marketing channels.

“Brand teams can and should leverage the speed and efficiency of the ‘e’ channel to improve overall responsiveness and efficiency of their physician

marketing programs,” said David S. Duplay, presi-dent of MedTera™, an integrated marketing solu-tions company. “What we are doing at MedTera is building an integrated marketing solutions company dedicated to improving education, promotion and communications in the healthcare, life science and pharmaceutical industry.”

MedTera is a wholly owned division of Structural Graphics, which has over 30 years of experience in delivering high impact dimensional mail solutions to pharmaceutical brand managers and other health-care professionals. What MedTera is doing is devel-oping closed-loop marketing solutions that integrate the non-digital assets of Structural Graphics’ dimen-sional designs. It does this with digital assets like websites, eLearning tools, Personalized URLs and mobile technologies to establish and extend a mar-keting or learning relationship with its client’s target audience.

Duplay described MedTera’s branded integrated solutions—MedTera’s HC Professional “Life Long Learning” Platform (see page 31)—at a recent Pharma Marketing Talk interview (listen to the podcast: “Improve Patient & Physician Education with Integrated Closed-Loop Marketing & ROI Analysis”; http://bit.ly/diFvDU).

Research-based Solutions “Those are just a sample of some of our branded solutions,” noted Duplay. “Of course we also work with our clients to design and execute custom programs and campaigns depending on the current set of marketing challenges that brand is facing.”

Before launching MedTera, Duplay’s team conducted a significant amount of research on how pharma marketing was changing, how brand teams have allocated their marketing budgets in the past, and how they saw the mix of marketing tactics changing over the next several years. “The pharmaceutical industry has seen significant change over the last several years in the way marketers launch and promote their brands,” said Duplay. “We have also seen changes in the way medical professionals as well as patients and caregivers want to receive information and be educated.”

In conducting this research Duplay’s team conducted one-on-one interviews of brand managers and vice presidents of marketing at several big and mid-tier pharma companies. Duplay also met with and con-ducted focus groups with physicians, patients and caregivers to better understand how these important stakeholders wanted to be marketed to and edu-cated.

P

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From these studies Duplay determined which non-personal promotion tactics are most used and valued by physicians and pharma brand managers. The following is a summary of a few of the findings of that research.

What’s Important to Pharma Brand Managers “Our research validates that non-personal promotion is an important and growing tactic in the marketing mix for all pharma companies,” said Duplay. Table 1 on page 4 lists the marketing tactics valued the most by pharma brand managers in big and mid-tier pharmaceutical companies.

“One interesting finding was that marketers are looking at targeting and segmentation in a much different way,” said Duplay. “The days of looking at the market in terms of strictly deciled physicians is being expanded.”

Key takeaways of the research involving brand managers include:

• Brand teams can and should leverage the speed and efficiency of the “e” channel to improve overall responsiveness and efficiency.

• Segmentation and physician targeting is key to successful marketing.

• Plan/integrate eMarketing in conjunction with other channels.

• Involving the field sale force into the overall marketing effort provides an integrated approach to targeting physicians.

• Given the relatively short time that a brand has market exclusivity, brand managers search for marketing solutions that not only help their brand gain share quickly but also increase the returns on their promotional dollars.

What’s Important to Physicians Allied healthcare professions are playing a larger role in delivering care and educating patients. Key local physicians (not key opinion leaders but local respect-ed physicians) are having more influence over which medications are being prescribed in the clinical setting and more medical institutions are adopting no see/no sample policies. All these factors are requir-ing pharma marketers to rethink their marketing strategies.

“It’s no surprise that we found that digital and mobile technologies continue to grow in terms of importance to physicians when it comes to receiving medically relevant information,” said Duplay.

MedTera’s HC Professional “Life Long Learning” Platform

— MedTera™ 360: Proven closed-

loop marketing program that starts with detailed market segmentation and targeting to identify the right audience. We then launch a high-impact dimensional mail solution which will drive that target to an online environment to deliver the right message at the right time, We then complete the cycle with a comprehensive ROI analysis and dashboard which allows us to enhance the campaign for the next wave of target touch points.

— MedTera™ RxAccelerator: Fast,

cost-effective solution for marketers looking to accelerate the growth of their market share and increase new patient starts through market segmentation, influential marketing tools and ROI analysis.

— MedTera™ Rx Loyalty: Set of

online and off-line tools that help establish ongoing relationships with patients to drive adherence, compliance and persistency, ultimately increasing the lifetime value of a patient for a brand manager.

— MedTera™ Clinical Dialogue:

Establishes ongoing communication for brands with physicians, utilizing digital and non-digital tools such as pharmaceutical detail aids or representative tablet PCs.

— MedTera™ Clinical Perspective.

Innovative solutions to communicate with and educate patients and physicians through proven, high-impact detail aids, direct mail and informational marketing materials.

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Findings from the physician research include these key takeaways:

• Over 70% of the physicians use the internet one or more times a day for professional use.

• 77% prefer to go to a non-pharma site for information.

• 77% of them accept, store and use drug samples.

• 74% of the physicians believe that vouchers, debit, and co-pay assistance cards are as effective as live samples in delivering quality care.

• 67% of the physicians see drug reps to get medically relevant information.

• 70% of the physicians that see drug reps for medically relevant information will reduce or eliminate time with the rep in the near future.

• 60% of the physicians believe the number one value provided by a pharma rep is delivering samples.

• The preferred way to receive medically relevant information: email or direct mail.

• The preferred way of educating patients on medically relevant information: Physician approved website, dimensional models, printed materials.

• Over 70% of the physicians place a high value on doing eDetails.

Closed-Loop Marketing Pharma marketers are moving to a “closed loop” marketing approach through the utilization of real time program data for better segmentation, recruiting and program execution.

“At MedTera we view closed loop marketing solu-tions as beginning with very detailed segmentation of the market, which allows the marketer to better and more cost effectively recruit their targets into a mar-keting campaign,” said Duplay. “Once we have re-cruited them, we can authenticate them by gathering detailed demographic information so we know that we are truly hitting our target audience. We can then present a marketing message or educational infor-mation to them in the way they prefer to receive it (on-line or off-line).”

To close the loop, MedTera tracks whether or not the targeted phsyicians are responding to the call-to-action. Also, the impact on TRx and NRx is measued and the marketing program is modified and enhanc-ed to drive better campaign performance in future touch points to those targets. See Figure 2, page 33, for a comparison of Open Loop Marketing to Closed Loop Marketing.

Integrated and Life-Long Solutions “Based on our research of pharma brand managers, physician interviews, physician focus groups and pharma focus groups with [major pharmaceutical

Rated Highest by Big Pharma Brand Managers Rated Highest by Mid-Tier Pharma Brand

Managers

Online Patient Compliance Tools eDetailing

Online Physician Education Online Physician Education

eDetailing Online Disease Mgmt Info

Vouchers, Debit, Co-pay, COB Cards Vouchers, Debit, Co-pay, COB Cards

Online Patient Information Online Patient Compliance Tools

Direct Mail Programs Direct Mail Programs

eSampling eSampling

eMail Messaging eMail Messaging

Online Disease Mgmt. Info Tele-Marketing Peer to Peer

Tele-Marketing Peer to Peer Fax Marketing Programs

Fax Marketing Programs Online Specialty Focused Articles and Practice Info

Table 1: Impact and Value of Marketing Tactics Rated by Brand Managers. Tactics with the highest ratings appear closer to the top of each list.

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Figure 2. Open Loop Marketing vs. Closed Loop Marketing.

companies using alternative channels to maximize commercial productivity],” said Duplay, “it is clear that an integrated marketing solutions company must deliver an integrated set of capabilities.”

Based on MedTera’s research with both pharma-ceutical marketers and physicians, it is known that:

• Pharmaceutical marketers have not only a desire but also a significant business imperative to market the benefits of their brands to physicians, nurses and pharmacists in new and innovative ways.

• Physicians, nurses, and pharmacists have infor-mation needs and requirements based on critical medical decisions made across the continuum of care.

• With the development of an integrated learning/ education platform in which information is both pushed and pulled (based on user require-ments), the solution can be extended to the clinical enterprise user.

• If developed and executed properly, the learning/ education platform will extend throughout the life of the medical professionals career—from student to residency to professional practice—“Life Long Learning.”

Rated Highest by Physicians

Vouchers, Debit, Co-pay, COB Cards

eDetailing Online

eEducation (non-CME)

Physical Drug Samples

Disease Management Information

Patient Education Information

Drug Information

Hard Copy Patient Information

Peer Reviewed Articles

Patient Assistance Information

eDetailing Offline*

Table 2: Impact and Value of Marketing Tactics Rated by Physicians. Based on focus group study. *Concept that allows a physician to use a computer offline (ie, no access to Internet) to obtain information on specific pharmaceuticals and treatment protocols. The offline eDetail experience is generally non-interactive, however the user is taken through information and asked questions along the way to ensure understanding. The offline eDetailing solution is distributed to the physician by a CD or flash drive and used in their computer.

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Under Duplay’s leadership, MedTera develops solutions with the medical professional’s workflow in mind. “Over the last 20 years,” said Duplay, “I have focused my career on working with teams that are passionate about developing and executing market-ing and business strategies for the pharmaceutical and healthcare industries. The approach I have taken is to spend a significant amount of time under-standing the workflow of medical professionals along with the behavior of patients and care givers and then applying emerging technologies that enhance education and solve business and marketing challenges.”

Of course, the solution also must satisfy the needs of the brand manager. “If we are developing a pharma rep detail aid, patient education or starter kit or an on-line promotional campaign,” said Duplay, “we take into consideration how that solution will be delivered and the message or call to action it has to achieve to drive a return on investment that is acceptable to the brand manager.”

“I think it is also important to mention that at MedTera every solution that we develop whether it be digital, non-digital or the integration of the two in a closed loop fashion, is in compliance with the PhRMA Code,” said Duplay.

Pharma Marketing News

Comments from Physicians Regarding Non-Personal Promotion

MedTera received plenty of physician feed-back regarding non-personal promotions during its focus group interviews. A sampling of a few of these comments is presented below:

“Most if not all the physicians in our office are online and I think we are all using iPhones. We have all participated in eDetails and other online programs sponsored by pharma companies. Most of my online work is done at night when I am at home or on the weekends. Any solution that would be valuable to me would need to be accessed outside my office.”

“I have participated in eDetails and some are good and some are not so good. If a physician is doing an eDetail in the office, the system has to allow the phy-sician to end the session before it is completed and then pick up where we left off at another time. I got an edu-cation URL from one of the reps that came into the office and every time I had to exit the education, I had to start from the beginning again.”

“Online education for physicians as well as disease management information is the life blood of our learning. It must be easy to use, flexible / searchable and appropriate for my area of practice. Pharma companies have a bad habit of giving us what THEY want and not what is useful to us.”

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Evolve Your Brand Into a Relationship with

Consumers & Physicians Brand building Vs. Relationship Building

This article originally appeared in the September, 2003, issue of Pharma Marketing News (Reprint #PMN-2802)

Written by John Mack, Editor

Chapter 7

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uccessfully branding a product may take many years and require tens of millions of dollars. Since a product lifecycle averages about seven years,

there is a lot of pressure on marketers to perform. When successful, marketing leads to more informed patients who are better able to manage their health. Nevertheless, return on investment (ROI) is the classic way to determine whether or not marketers are perform-ing and producing effective marketing campaigns.

“More than half of all pharmaceutical companies consider ROI to be essential in building a brand,” said Keli Bennett, former Consumer Marketing Director at Abbott Laboratories, Abbott Park, Illinois. As a conse-quence of FDA regulations a large portion of DTC advertising investment is required to inform patients of product risks, thus increasing media costs. “Considering the fact that marketing costs are very high in our in-dustry, obtaining a satisfactory ROI may be a huge hurdle,” Bennett added.

Awareness-based marketing has been the traditional model utilized by pharmaceutical companies. However, Bennett suggested that the benefits associated with direct response (DR) or relationship marketing may help companies realize a more immediate ROI for specific types of products.

Traditional marketing and direct response (DR) marketing forge and appropriately motivate target audiences in different ways. Traditional marketing is one-way communication designed to build top-of-mind awareness with mass appeal that ultimately affects attitude. DR marketing is designed to achieve two-way dialogue with the prospect. The one-on-one nature of direct-response marketing is ultimately designed to affect behavior.

DR marketing also feels more rewarding and more educational—keys to building brand awareness and equity. “DR advertising is not just about facts and figures. It’s about connecting emotionally with our prospects. DR advertising feels less like a sales pitch and more like ‘edutainment,’” suggested Bennett.

Relationship marketing can make dollars more effective. “Because DR marketing is interactive, motivating, and measurable, you get market insight at every touch point. You get behavioral data. You learn about attitudes. You gain creative insight. You learn about creative differences. As a result, you can convert prospects at a higher rate than traditional branding,” said Bennett.

Brand Building Vs. Relationship Building

Brand Relationship

High Disease prevalence: GERD, OA, Allergies Targeted markets with complex messages: RA Oncology

CTA is Dr. dialogue CTA is response

Information flow is from advertiser to prospect Goal is 2-way dialogue

Top of mind awareness Immediately actionable and rewards interaction

Drives immediate action Drives education and interaction

Has mass appeal Is more personal

Affects attitudes Affects behavior

Product is hero Prospect is hero

Table 1. Brand Building Vs. Relationship Building

S

Continues…

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TIP A challenge for DR marketers within drug companies is how to allay the concerns of legal counsels, especially in direct mail campaigns in this era of heightened privacy awareness and HIPAA.

Bennet offered the following tip: Implement a 2-Step Process.

In the first step, you select an appropriate mailing list and mail out unbranded disease awareness information that includes a mechanism for opting in to receive more personalized branded messages in the second step. The opt-in mechanism can be a BRC and can ask for more personal information. Responses in the second step can then be customized based upon the personal information supplied. For example, to market in a cardiovascular therapeutic area, you might purchase a mailing list from AARP. Members of this organization are more likely to have a higher risk for cardiovascular problems than the population as a whole. In the first step, you would send all these people non-branded information about cardiovascular risk factors. The important thing is to ask for more personal data with a request for permission to send them product information relating to their specific risk(s).

Segmentation identifies market behavior for strategy development and is an essential component of DR marketing. “Segmentation is the most undervalued tool,” said Bennett. “No matter how small your target audience, there is still a need for segmentation and profiling to create more appropriate niche commun-ications. When you learn about your audience at every touch point, which DR advertising allows you to do, you can go back to your audience with more relevant information to obtain the desired response,” she added.

DR marketing is best for product introductions, especially in a new category. “It is potentially more effective because of its one-on-one nature,” said Bennett. DR strategies can also give marketers great flexibility in how they reach their target audiences. “DR advertising used to be direct mail. Now it’s the whole media mix. TV commercials with 800 numbers, print, radio, and the Internet are all avenues for DR marketing,” she added.

To maximize DR strategies, Bennett stressed the importance of working with a vendor that not only has experience in DR marketing but also has DR marketing as its focus. “Only an experienced DR marketing vendor will allow you to maximize your ROI,” she said, adding that “it is also critical to select an experienced data management group to maximize the utility of the data that is collected.”

“DR marketing requires a long-term commitment. ROI in the first year may very well be zero net. The long-term payoff, however, will be a marketing strategy that will ultimately accountable, measurable, cost-effective, pre-dictable, and which can deliver an immediate results,” concluded Bennett.

“But by no means should traditional marketing stra-tegies be cast aside. It may make the most sense to integrate DR marketing into traditional DTC strategies. When a hybrid strategy is used, you can drive brand uptake very effectively and more cost efficiently,” she added.

DIRECT RESPONSE MEDIA • DRTV: Generally, 60 sec units that include an

800 number and offer. Typically placed on cable networks at sharply discounted rates.

• Print: Rates discounted up to 40%. Often includes coupon or BRC, but always includes 800 number or URL. Must include an offer – such as free information

• Radio: Usually “reminder” medium that’s most effective with a vanity number

• Direct Mail: Can be highly effective for lead generation, but almost always critical to prospect education, conversion, and relationship management

• Online: Important for instant information fulfillment from all media. Includes website, email, search engine optimization, banners

Continues…

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Case Study Bennett illustrated the effective-ness of a hybrid approach with a case study (see charts below). The case study is a composite from several real life campaigns.

The assumptions are:

• Demographic: Male/Female, age 35-64 • Disease state prevalence: 7% • Disease state awareness: 92% • New product in an existing category • Budget: $20MM

The result is that the traditional brand awareness model results in 21% prescription growth, whereas the hybrid model achieves an Rx growth of 32% with the same budget.

Pharma Marketing News

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The Digital Life of Doctors Understanding How Physicians Live Online

This article originally appeared in the December 1, 2011, issue of Pharma Marketing News (Reprint #PMN-11801)

Written by John Mack, Editor

Chapter 8

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igital Life, the global survey of digital behavior from Kantar Health’s sister company TNS, which was run as part of the 2011 Stakeholder

Effectiveness survey featured in a previous issue (see “Stakeholder Effectiveness”; http://bit.ly/pmn1017-01), showed that while primary care physicians (PCPs) in general are frequent users of the Internet, oncologists see online sources of information as more important than PCPs and therefore may need less personal contact to learn about products.

That was just one of the results from the 2011 Digital Life survey of 1,454 physicians (PCPs and oncologists) that Oliver Feiler, Senior Consultant, Stakeholder Management, Kantar Health, presented during a September 21, 2011, web-inar. This article summarizes that presentation as well as other data relating to the digital life of physicians.

Although sales rep visits are still a very valuable aspect of marketing to physicians, severe cuts due to budget-ary concerns are forcing pharmaceutical companies to look for other ways to convey information to physi-cians—especially via digital channels. To effectively communicate with physicians digitally, it is important to understand how physicians “live” online.

Feiler focused on the following topics:

• a quick of today’s digital world in healthcare • highlights from the survey, which analyses

digital healthcare lifestyles • three examples taken from the data to

demonstrate the relevance of this digital perspective

• possible implications for the future of communicating to physicians

Pharma’s Growing Interest in the Digital Doctor Physicians and other healthcare specialists are online and use digital media all the time, much like their patients do. The past few years have seen the intro-duction of an abundance of online communities exclu-sively for physicians. Nowadays all pharma companies have online physician portals—either secure via pass-word or open communities—that are focused on spe-cific product information or on the company’s entire portfolio. Other platforms have emerged in the last few years dedicated to physicians and others such as WebMD in the U.S. and NetDoctor in the EU.

Feiler asked who among the webinar participants have included key digital factors into their customer segmen-

tation and use these in targeting customers. Feiler de-fined “digital” to include “everything that connects you to the outside world without face-to-face contact or by phone.” That would include smartphones, iPADs, Lap-tops, and even TVs that are capable of accessing the Internet (including YouTube, Twitter, and Facebook).

About 60% of the audience claimed they have already implemented or are in the process of implementing the digital world into their segmentation models. The rest plan to do it either in 2011 or in 2012.

This is surprising given the fact that according to Feiler the drug industry has invested “heavily” in online health-care advertising, spending $1.03 billion in this sector in the U.S. alone in 2010 (source: Medical Marketing & Media, April, 2011). That’s about 4% of the total $25.8 billion spent that year for all consumer and physician marketing in the U.S. Double digit growth rates are expected in the next few years.

Digital Life Healthcare “So, with the growing interest in the digital world,” said Feiler, “we thought it was necessary to take a closer look at pharma’s digital customers.” Digital Life—interviewing almost 50,000 consumers across 46 countries—is the largest and most comprehensive study of the global digital consumer ever undertaken. It was conducted by TNS, a sister company to Kantar Health. The included markets represent 88% of the global digital population.

The Digital Life Healthcare segment of the study included 1,454 PCPs and oncologists and included questions related to:

• the frequency of accessing the Internet in addition to the frequency of using different Internet activities (networking, email, knowledge-seeking, planning, etc.)

• the ranking of these activities by personal importance

• the agreement or disagreement to specific Internet-related statements, such as “the Internet provides a personal space” or “the Internet allows freedom of expression”

• age • gender

The six life styles that can be drawn from the analysis are detailed in Table 1, page 41.

General Online Population vs. Online Docs Feiler first showed the distribution of theses six different digital lifestyle segments in the general online popula-

D

Oliver Feiler

Continues on next page…

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Influencers The Internet is an integral part of my life. I’m young and a big mobile Internet user and generally access everywhere. I generally go online everywhere, all the time. I’m a blogger and a passionate social networker with tons of friends. I want as many people as possible to hear my online voice. I’m also a big online shopper, even on my mobile. Communicators I love to express myself, be it face to face, on a fixed line, on my mobile, via a social networking site or on email. I want to express myself online in a way I can’t offline. I’m most likely a smartphone user, and I tend to connect from my mobile, from home, at work, or at college.

Knowledge-Seekers I use the Internet to gain knowledge and information and to educate myself about the world. I’m not very interested in social networking but I do want to hear from like-minded people, particularly to help me make purchase decisions. I’m interested in the latest thing. Networkers The Internet is important for me to establish and maintain relationships. I have a busy life, from my profession to managing the home. I use social networking to keep in touch with people I wouldn’t have time to otherwise. I’m a big home Internet user, and I’m very open to engaging directly with brands and looking for promotions. That said, I’m not really the kind of person to voice my opinions online. Aspirers I’m looking to create a personal space online. I’m quite new to the Internet, and although I sometimes access it via mobile and at Internet cafés, I mostly connect from home. I don’t do a great deal online at the moment but I’m desperate to do more of everything, especially from my mobile. Functionals The Internet is a functional tool. I’m not looking to express myself online. I like emailing, reading the news, checking up on sports and the weather, and shopping online. I’m really not that interested in social networking, and I’m worried about data privacy and security. I’m older and have been using the Internet for a long time.

TABLE 1. The six different digital lifestyle segments in the general online population.

tion (see Figure 1, page 42). The distribution in the healthcare world is completely different, as illustrated in Figure 2, page 42.

The vast majority of both PCPs and oncologists are Functionals (Fu) and Knowledge-Seekers (Kn), while oncologists are slightly more Networkers (Ne) than are PCPs. “High involvement (In) and high consumption (Co) in the physicians’ digital world has not yet arrived,” noted Feiler.

To look at the results from a sales force effectiveness (SFE) perspective, Feiler focused on physicians who are Functionals, for whom the Internet is more or less a functional tool (mainly email); Knowledge-Seekers, who use the Internet to gain knowledge and information and to educate themselves; and Communicators, who just love to talk and express themselves in the online world.

Online Functional Physician Segment The Functionals segment of online physicians see the Internet as a tool. There is nearly an even split between males and females in this group (see Figure 3, page 43). They tend to be older—the average age is about 44 years. The frequency of Internet access is medium to high and two out of three physician Functionals access the Internet at least once a day (mostly using email), but their involvement is low, as is their consumption.

“This is definitely a group of physicians who value personal contact outside the digital world,” said Feiler. This segment might become smaller in the next years, but for now nearly half of all physicians fall into this segment.

Continues on next page…

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Figure 1. General Population Online Lifestyles, 2011. This represents online general population lifestyles in six countries: U.S., UK, Germany, Spain, Italy, and France.

Figure 2. PCPs and ONCs Online Lifestyles, 2011. This represents online physician lifestyles in six countries: U.S., UK, Germany, Spain, Italy, and France.

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Figure 3. Functional Segment Profile of Online Physicians in Six Countries (see Figure 2, page 42).

Figure 4. Knowledge-Seeker Segment Profile of Online Physicians in Six Countries (see Figure 2, page 42).

Figure 5. Communicator Segment Profile of Online Physicians in Six Countries (see Figure 2, page 42).

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Online Knowledge-Seeker Physicians The knowledge-Seeker segment of online physicians is a slightly smaller, but still significantly sized segment. More males than females are members of this group and they are slightly younger and have a higher degree of digital consumption than Functionals (see Figure 4, page 43). Like Functionals, they are concerned about data protection, but they see the Internet as an area where they can express themselves freely.

The main online activities of Knowledge-Seeker phys-icians are browsing the web, using social networks and writing emails. “Based on their high consumption rate, they appreciate a well-established and thought-through online platform,” noted Feiler. “But due to their low involvement, they still do not absorb it fully and still value personal contact.”

Applying this information to SFE, Feiler suggested that a sales rep needs to know everything from product to service and education offers for a Functional, but may-be only needs to know where to find the information to satisfy the Knowledge-Seeker.

Online Communicator Physicians The smallest but still valid segment in the healthcare population evaluated by TNS is the Communicators. They are different most notably in their high frequency of Internet access, high consumption, and especially high involvement (see Figure 5, page 43). “This is a group that lives much more online,” said Feiler. “All channels are possible, but to them email seems out-dated. Personal contact if fine, but not at all necessary.”

In terms of SFE, Feiler asked “How much focus do we want to put on this group in the future? I am sure this segments will grow, but I cannot answer how fast and to what size yet.”

In summary:

• Functionals appreciate the personal contact, but the segment will shrink in size.

• Knowledge-Seekers already use the Internet to a large extent. They need to find what they are looking for.

• Communicators are not yet big enough to really impact your approach in the digital world, but because of their digital involvement and consumption, they might influence others. Identifying these people and providing them with what they need will help your digital strategy.

Pharma sales teams must adapt to the changes in the real and digital world of physicians. Some physicians still need the personal contact that includes everything that was relevant three, five, or ten years ago. Others have a completely different profile. They don’t want to see a rep every week and if they see reps, they might want to be updated on the latest possibilities in online medical education and not about product information in print version. The challenge is knowing which customer needs which kind of information through which channel at what time.

Pharma Marketing News

Turn to page 45 for a summary of the EPG Health Media survey:

“The Online Behaviour and Demands of HCPs in Europe.”

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The Online Behavior and Demands of HCPs in Europe The purpose of this short EPG Health Media (www.epgonline.com) study published in November, 2011, was to gain greater insight into the current online behavior and preferences of healthcare professionals in Europe and to get an indication of how these are likely to change in the future. You can access the full report here: http://bit.ly/vvZKlu

According to EPG Health Media, “over the past 10 years, the range of types and sources of medical content available to doctors via the internet has grown significantly, as has the level of access that doctors have to such content. These developments have had a major impact on the online behaviour and preferences of doctors today, which will in turn impact or influence how publishers of online medical content cater for their audiences needs.”

Study objectives were to answer the following questions:

• How do HCPs access online information and how is this likely to change? • When do HCPs access online information and how often? • What types and sources of online information do HCPs access or prefer to access? • Why do HCPs access certain types or sources of information online? • What barriers do HCPs encounter in accessing certain types and sources of information online?

“Our research indicates that the internet is by far physicians’ preferred source of information or support for all work-related activities listed in the study, including queries related to individual patients, general academic research and CME,” said Chris Cooper of EPG Health Media in an interview with pharmaphorum (http://bit.ly/ufJ4Ns). “63% of respondents stated that they prefer the internet to printed materials, meetings / congress and information supplied by medical reps (see Figure 6 below).

“In terms of what activities particularly occupy doctor’s online time,” said Cooper. “most respondents (62%) spend at least a quarter of their online time researching queries related to individual patients, followed by general (non-accredited research) to improve their knowledge, then CME and lastly social networking. Whilst social networking occupied the smallest proportion of respondent’s online time, 52% spend at least 10% of their time social networking and only 7% do not spend any time social networking online.

Figure 6. What is your preferred method of accessing the following types of information? Source: EPG Health Media

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Podcast: The Changing Pharma eDetailing

Landscape A Chat with Monica Levy About the Three Main

Ways of Detailing Physicians Online

This podcast originally aired September 2, 2011.

Chapter 9

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conversation with Monique Levy, VP Research at Manhattan Research, about the changing pharma eDetailing landscape.

Ms. Levy discusses how the online pharma promotion landscape has changed, and which types of programs garner the largest audience as well as how the rep relationship is evolving and the role of new technologies such as tablets.

As part of the discussion, Ms. Levy reveals some details from Manhattan Research's 2011 ePharma Physician® market research study. The study is fielded online annually in Q2 among more than 1,700 U.S. physicians who are ePharma Physicians, or who use digital channels for pharma resources and for connecting with reps.

Some Questions/Topics Discussed:

1. Tablet Reps: How is the rep relationship evolving and what role are tablets playing?

2. Online Promotion: How has the online promotion landscape changed, and which types of programs garner the largest audience?

3. Product Info Seeking: Which offline and online sources—including pharma customer service channels—do physicians use to find Rx info and how does this vary across product maturity?

4. Value-Added Services: How strong of an opportunity do patient education, financial assistance and online sampling represent for pharma marketers?

Pharma Marketing News

A

Click on box above to listen to the podcast or click here: http://www.talk.pharma-mkting.com/show147.htm