16 Ma r ch 20 08 VIEW on Advertising BUSINESS MODELS P eer: (v) (1) to look closely and searchingly, or squint, as in trying to see more clearly; (n) (2) a person or thing of the same rank, value, quality, ability. This definition ignited some thought. Have we as marketing agency pro fessionals perpetuated the issues our industry faces today? As all know, the pharmaceutical industry today is challenged with conducting business as usual while implementing rapid change in response to competing forces in a highly scrutinized marketplace. In the pursuit of the blockbuster of tomor row, we have essentially commoditized our offerings by mirroring the struc ture of our clients and building massive vertically organized communication networks designed to create the largest share of voice possible through the maximum number of channels — a costly endeavor. Rethinking the Model Our colleagues in the pharmaceutical industry have begun to change by reducing their fixed costs (i.e., reducing the number of sales reps), which will undoubtedly affect our marketing mix. Do we want to be forced into a reactionary position or should we take a leadership role? Now is the time for us to rethink our business model and lead by example.We should make it our mission to rebel against our traditions and go beyond the obvious. Then it struck me! We have by tradition defined a peer as someone of equal worth or quality through title or function (i.e., a physician, patient, payer, etc.), thereby establishing numerous welldefined verticals. Marketing to these verticals requires a significant amount of fixed costs and human resource allocation to be successful. Our challenge is to compress the num ber of verticals and drive costs down while simultaneously increasing returns on investment. We can accomplish these seemingly competing goals by changing how we define a peer and exploiting the complete definition. We should employ social sciences (1. look closely and searchingly, as in an effort to discern more clearly) to identify people of common mindsets that cut across functions to create “communities of influence” (2. something of equal worth or quality). The creation of “communities of influence” composed of likeminded individ uals cuts horizontally across existing verticals, effectively compressing the number of verticals with whom we need to communicate and allowing us to create credible and relevant communications in a more efficient manner. This line of thinking then sparked the idea that the word peer can become the driving principle for a new generation of marketing strategies. And like true marketers we can create an acronym: P.E.E.R. — Personalize, Engage, Economize, Recognize. Personalize the Connection Between People Identifying “communities of influence” with common mindsets will allow us to personalize our communications in a healthcare environment where decisions are becoming increasingly fragmented, emotional, and formed through a community context.There is nothing more powerful than a cross section of people with a common mindset, regardless of their title or func tion. Engage People with Community Relevant Brands and Solutions We must engage people in these communities with relevant strategies, content, and brands that have enough staying power to outlast an increas ingly shorter period of onmarket patent protection, and we must dispel the notion that a brand only has seven years to live. Pharmaceutical brands of the future will be more specialized and, there fore, follow a more gradual and steady revenue curve. Community constituents will have more influence on prescribing behav ior, and an opportunity exists to capitalize on their willingness to become brand loyal. Economize the Cost of Information Our business model must change to reduce costs for our clients. Build ing highly specialized teams to deliver solutions to these “communities of influencers” will challenge our current infrastructures, but if done thought fully, this will allow us to economize the volume of communication vehicles needed to influence mindset shifts and related behavioral change in these communities while simultaneously reducing costs to our clients. Recognize the Return on Investment If all goes well, our ideas will become solutions that will be recognized as credible, thereby generating a positive ROI and gaining true brand loyal ty. There is nothing more powerful than agreement among a crossfunc tional group of PEERs. So, perhaps bigger is not better and less is more, but as has been point ed out in various settings, “If we do what we have always done, we will get what we always got” — and in this changing healthcare environment — even less. # VOX MEDICA is one of the largest independent healthcare communications companies in the country. Independent ownership allows Vox Medica to form flexible and strategic partnerships with industry players of all sizes. Peering Into The Future Now is the time for us to rethink our business model and lead by example. We should make it our mission to rebel against our traditions and go beyond the obvious. Vox Medica Inc. George Glatcz President, HealthCare Marketing Communications Group 0308 PVV VIEW Layout FINAL 3/18/08 4:18 PM Page 16 PharmaVoice_FIRE_3_08.pdf 3/3/08 9:53:04 AM
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