THE EFFECTIVENESS OF INTEGRATED MARKETING

COMMUNICATIONS AS A TOOL IN THE PROMOTION OF

MEDICINES ON THE RUSSIAN PHARMACEUTICAL MARKET

ANIGBOGU NINA IFEANIYEVNA.

AIM OF STUDY

To analyse the effectiveness of integrated marketing communications (IMC) as an instrument in marketing campaigns in the promotion of medicines on the Russian pharmaceutical market

OBJECTIVES OF THE STUDY

To carry out a comparative analysis of the existing practices with regard to IMC in Russia, Belgium, UK, USA and Germany.

Determine main issues affecting effective use of IMC in the Russian Federation.

Develop recommendations to improve the use of IMC in marketing campaigns on the Russian pharmaceutical market.

COMMUNICATION PROCESS

Source CodeMessage/

Media Decoding Recipient

Setbacks

ResponseFeedback

TYPES OF COMMUNICATION MODELS

COMMUNICATION MODEL

SUMMARY OF FUNCTION

Propaganda model The spread of ideas with the aim to attract supporters. Selectively stimulate the mood and consciousness of people, with the aim of eliciting a particular reaction

Socio-psychological Socio-psychological effect

Semiotic The use of signs and symbols in communication

Psychotherapeutic Psychotherapeutic impact

Mythological The use of metaphors, belief in supernatural

Argumentative Full or partial justification of a fact based on existing facts

DEVELOPING AN EFFECTIVE IMC MODEL

SITUATION

AIM

STRATEGY

TACTIC

ACTIONS

CONTROL

CURRENT STATE OF THE RUSSIAN PHARMACEUTICAL MARKET

At the end of Q1 2014 the Russian pharmaceutical market was up 5.4 percent

compared to the sameperiod of 2013, amounting to RUB 284.9 billion

(3,866983949.9 Euro).

The Russian pharmaceutical market continues to show significant potential, with growth rates more

significant than those in Europe and the USA

CURRENT STATE OF THE RUSSIAN PHARMACEUTICAL MARKET

One of the first documents signed by the President of the Russian Federation in 2012 was the Decree on the Improvement of Public Health Policy. One of it’s outcomes is the development and implementation of the drug supply strategy by 2025.

СОВРЕМЕННОЕ СОСТОЯНИЕ ФАРМАЦЕВТИЧЕСКОГО РЫНКА РОССИИ

The Russian Federation Ministry of Education and Science developed a strategy – “Development of Russia’s pharmaceutical and medical industry by the year 2020 and further perspectives”

The document was approved by the Russian Federation Government on February 17, 2011 № 91 (named - Strategy 2020)

It invites all interested businesses and individuals to participate in the achievement of this strategy

All interested individuals were invited to participate, from 2012 – 2015, in the development of important issues to this effect as well as in the making of decisions on funding of projects.

PHARMACEUTICAL MARKETING ENVIRONMENT

WHAT MAKES THE PHARMACEUTICAL MARKET STAND OUT

FACTORS BEING COMPARED

PHARMACEUTICAL INDUSTRY

OTHER SECTORS

Consumer has deciding power

No Yes

Brand loyalty Very high Varies

Importance of ethics Very high Lower in comparison

Degree of regulation by state

Very high Lower in comparison

Price sensitivity Low High

IMC IN RUSSIAATL• Television and radio• Publications and other print materials.

BTL• Promoting sales through special offers in pharmacies• Internet sites dedicated to specific brands• Hot lines

Public Relations• Events• Communication between med reps and doctors and other

medical personnel.• Involvement of the mass media.• Corporate social responsibility.

IMC IN THE USA

Sales promotion, direct sales

Internet/Digital marketing

PatientDoctors, pharmacists

Event management, PR, advertising, media

Direct-to-consumer advertising(DTCA)

Pharmaceutical companies

IMC IN THE UK

Sales promotion, direct sales

Internet/Digital marketing

PatientDoctors, Pharmacists

PR, advertising, trainings, event management, media

Direct to pharmacist advertising (DTPA)

Pharmaceutical companies

IMC IN GERMANY

Internet/Digital marketing

Patient

Doctors

Event management, PR

Pharmaceutical companies

Members of the press

COMPARATIVE ANALYSISFACTORS/COUNTRY

USA UK GERMANY RUSSIA

Laws regulating the use of marketing communication channels in the pharmaceutical industry

None None Very strict laws Some laws exist

Interaction with medical personnel

Actively supported

Actively supported

Actively supported

Prohibited by law

Advertising in media Actively supported

Allowed, with the exception of prescription medication

Not allowed (except in professional medical publications)

Not sufficiently developed

СРАВНИТЕЛЬНЫЙ АНАЛИЗ ИМК

Interaction with members of the media

Supported Supported Actively supported

This tool is not sufficiently developed

Internet/Digital marketing

Actively present Actively present Underutilised Poorly developed

DTCA Actively present Underutilised (more emphasis on DTPA)

Prohibited Absent

DTPA - Actively present Prohibited Absent

ASTRAZENECA IN RUSSIA

• British-Swedish multinational pharmaceutical and biologics company headquartered in London, United Kingdom.

ANALYSIS OF THE USE IMC BY ASTRAZENECA IN RUSSIA

IN BRAND PROMOTION:• Corporate Social Responsibility• Partnership with Russian

government organs in investing in research institutes• Event Management

ANALYSIS OF THE USE IMC BY ASTRAZENECA IN RUSSIA

IN THE PROMOTION OF MEDICINES1. Advertising: • TV commercials• Advertising in specialised and other publications2. Public Relations• Organisation and participation in events• Interaction between marketing managers and

doctors and pharmacists, within the limitations of the law

• Interaction with members of the press• Digital marketing

IMC CAMPAIGN OF PRODUCT ‘EMLA’

“Beauty should not equal pain!”

• A 5% emulsion preparation, containing 2.5% each of lidocaine/prilocaine

• Can be administered adults and children

IMC CAMPAIGN OF ‘EMLA’

TV commercials in St. Petersburg, Ekaterinburg, Moscow, Krasnodar and other major cities (the so called millennials)

Traditional advertisingOutside banners TV commercials

IMC CAMPAIGN OF PRODUCT ‘EMLA’

• Publication of educational material – advertorials • Digital marketing – SMM,

creation of ‘Emla’ website • Interaction with members of the

press regarding new product

EFFECTIVENESS OF CAMPAIGN

STRENGTHS - The simultaneous use of at least one of

all categories of marketing communications (ATL и BTL).

- The integration of new communication channels (internet, SMM) into the IMC mix.

- Wide coverage: advertising in the regions.

WEAKNESSES - No mention of the product in ‘Vkontacte’

one of Russia’s leading social media sites

- No event was organised to support product launch

- Not enough time was allocated to educate health professionals on the product

OPPORTUNITIES - EMLA promotion via the Internet

makes it possible to conduct a survey in the future to determine the effectiveness of EMLA and IMC campaign.

- Publication in women's magazines establishes the company's brand among the female population which has very strong purchasing power.

THREATS - Emphasis was placed mainly on the use

of product among the female population, for cosmetic procedures. There is little or no mention of it for other significant purposes e.g. for children during vaccination and circumcision of male children.

PERSPECTIVES FOR IMC IN RUSSIA IMC is a modern and rapidly developing tool

in the promotion of goods and services. It should be studied and utilised in promoting medicines on the Russian market.

A successfully developed and implemented IMC campaign allows a company occupy a significant market share and increase brand and customer loyalty.

Russian pharmaceutical companies should pay particular attention to the IMC, as this can play a very important role in their successful entry into the international market

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