34 S e p t e m b e r 2 0 07 VIEW on Marketing ROI s pharma companies cope with increasingly limited budgets, they are demanding that marketing be accountable for demonstrating ROI on promotional activities. For a true read on results, however, companies must move from looking at sales and marketing indi� vidually to viewing them holistically — and understanding how they work together to drive brand performance.Typically, companies assess marketing’s ability to create pull for a brand among physicians, patients, and other stakeholders separately from how sales creates push. This is not sur� prising, since most companies have different reporting structures for sales and marketing. As physician�centric sales programs gain force, some distinctions are becoming blurred — but they still exist. Pharma brands must determine whether they face a pull or push challenge, and what the issues are within each.They also must learn to combine push and pull strategies. Gaining a New Perspective The thrust of the brand performance optimization (BPO) model (see Optimal Brand and Market Equity chart) is that results come from under� standing both the power in the mind (or pull) and power in the market (or push). Marketing can create substantial power in the mind for a brand. If there are difficulties accessing it, however, the brand will underperform. Sim� ilarly, a brand may be accessible but if it doesn’t stand out in doctors’ minds or if patients don’t ask for it, it won’t reach its potential. The Power in the Mind vs. Power in the Market chart demonstrates the importance of looking at push and pull together.The combined results from several DTC studies demonstrate that a clear market mover established or changed the category, with market followers entering later and spending heavily on DTC . Results from these studies reveal definite patterns. The market mover has a decided lead over the market followers. Its lead, how� ever, is narrower for power in the mind than power in the market. The market mover’s push advantage comes from launching first and getting on more formularies than the market followers.The market follow� ers’ significant DTC spend, however, lessened the pull gap.This holistic per� spective helps address important strategic questions: . Should market followers invest heavily in building power in the mind and attempt to pass the market mover? Or should they shift resources to activities that might narrow the power in the market gap? . Conversely, should the market mover divert resources to widen the gap in consumer pull? Or can it rest on its push strength? Understanding Drivers To understand power in the mind, we must distinguish between the head and the heart. While pharmaceutical marketing is often about rational arguments, it’s catching up to other categories in focusing on the heart — a brand’s emotional benefits. A hypoglycemia medication is not just about controlling blood sugar it’s about offering a richer lifestyle. An ED medica� tion doesn’t just promote sexual function; it benefits relationships. As we think of the factors that build demand, we must consider them from both a head and heart perspective: . How relevant is the brand to unmet needs? . What attributes does it own compared with competitors? . Is it seen as a leader? To what extent does it control the debate within its category? Are competitive brands forced to react to it? . What is its potential stretch, whether for new indications or new pop� ulation segments? Conclusions Modeling can reveal how these factors contribute to power in the mind and power in the market, and how they combine to build brand commit� ment.This is a critical insight, because research shows a direct relationship between commitment and share. In today’s world, management cannot rely on thinking of spending as sales vs. marketing. Building brands requires understanding the joint contributions of each function and assessing which investments drive results. # TNS Healthcare TNS HEALTHCARE, NewYork, which is part of TNS, provides globally consistent solutions and custom advisory services to support product introductions, and brand, treatment, and sales�performance optimization, as well as professional and DTC promotional tracking. For more information, visit tns�global.com. A Holistic View of Optimizing Brand Performance Larry Friedman, Ph.D. Global Director, Brand and Communications Research Optimal Brand and Market Equity Key drivers of commitment identify where to focus for optimal brand and market equity Marketing Investment Sales Investment Brand Power in the Market Market Equity Brand Equity Key Drivers of Brand Commitment Patient Share/Rx Dynamics Ensure Sales & Profitability Leadership Relevance Ownership/ Differentiation Access Affordability Sales Performance Reach/Stretch Power in the Mind vs. Power in the Market Power in the Market Power in the Mind Market Mover Market Follower Market Follower 85% 11% 4% 52% 25% 23% A 0907 PVV Layout PROOFS 9/11/07 4:06 PM Page 34 * Validated with bothself�R eported and secondary Rx data. It Would Cost a Fortune toD o It. FACT: FICTION: TNSHealthcare research proves that building a physician’s Commitment to your brand more than doubles your patient share.* Plus, once doctors are committed, they stay committed. Their share stays high over time. They write more prescriptions. They don’t switch. They’re not swayed by competitive messages or price pressures. They form a lasting bond with your brand—so you can predict future prescribing. Best of all, building more Commitment doesn’t mean spending more money. It just means spending more effectively. Our breakthrough Invest$mart^TM solution tells you where to re�deploy budget for optimal results—and what you’ll gain in Commitment, share and dollars for every change you make. Anyone can deliver data. Only TNSHealthcare drives action. Whenwe say we optimize your business performance, it’s not just a slogan. It’s a proven fact. To learn more, contact Paul Barnes at 6—w 806 4141 or paul.barnes@tns�global.com. TNS Healthc are. Proven to Optimize Your Business Performanc e. Yo Can Increase Yo r Brand’s Patient Share by More Than 100%. FINAL PV Fact Ad 1.qxd:Layout 1 2/15/07 12:21 PM Page 1

Download PDF