Embrace the Paradigm Shift: Reaching the Target Physician Audience … Virtually Jay Grobowsky President The Times They Are a Changing The pharmaceutical industry is in the midst of a fundamental shift in the manner in which prescription products are marketed. Restricted physician access, strong physician communication preferences, and unsustainable salesforce cost structures are pressuring marketing teams to deploy innovative and cost-effective solutions. One major change that has occurred in the pharmaceutical industry concerns both the size of salesforces and the effectiveness of their interactions. According to published reports, the number of sales representatives has increased 137% since 1995. And with most of these reps focused on the same high-prescribing physicians, it’s easy to appreciate why reports state that 70% of physicians now have policies restricting sales rep access and only 43% of reps ever get past the receptionist. For those who do gain access, the typical call lasts less than two minutes, less than one-third contain a product message, and less than 13% of product messages are delivered or recalled by the physician. Traditionally, physicians have engaged pharmaceutical representatives to increase their knowledge about the science behind the company’s product, and/or therapeutic information, as well as to obtain samples for patient use. But Web-based programs have emerged as an alternative channel for physicians to obtain both information and samples. These channels give physicians control over the information exchange, enabling them to determine when and where they receive the product resources. Conventional Targeting During Unconventional Times In general, brand teams know who the high prescribers are and how the overall prescribing universe is broken down. Traditionally, deciles 7 through 10 are called upon by the salesforce and are targeted for other indirect promotional channels. This strategy was traditionally thought to produce the greatest product revenue and ROI. The problem, however, is this strategy has been employed by multiple pharmaceutical companies all targeting the same doctors. Saturation can occur when any group is targeted too heavily using the same methods, so it should not be a surprise that the sales reps can’t get past the receptionist. An alternative approach is to focus on generating incremental revenue by marketing to those middle-decile prescribers with high-growth potential. By finding solutions to reach this physician segment in cost-effective personalized ways, marketers may be able to realize brand growth from beyond the upper deciles. It’s Time to Think Differently Pharmaceutical companies’ shareholders expect profits to continue to grow significantly, and the pressure is on marketing teams to have their brands reach peak sales as rapidly as possible to maximize revenue over the product’s life cycle. To accomplish this, brand teams will need to maximize the effectiveness of every asset and resource at their disposal and to develop tactics outside of their traditional approaches. Effective use of IT solutions, such as prescriber data analytics, online market research, electronic product presentations, integrated direct-to-customer marketing, CRM platforms, and physician portals can accelerate time to peak sales, increase market penetration through increased reach and frequency of message, and ultimately accelerate brand recognition and usage. Virtual solutions, such as electronic product presentations, e-sampling, and e-mail promotion, are effective tools that are being embraced by both physicians and brand teams. Their use will continue, according to a recent study by Manhattan Research, which reports that physicians expect to increase their time accessing electronic presentations by almost 66%. In another survey, 90% of physicians ranked the ability to request online samples as the most desired new service. Clearly, physicians are expressing their frustration with the old paradigm and are moving toward greater online access to information and other product-related resources. A Fundamental Change The pharmaceutical sales and marketing process is undergoing a fundamental change. Marketers must look beyond the 7- to10-decile and engage all relevant category prescribers. There is a clear need for alternative approaches, and Web-based solutions are emerging as the preferred choice. Data-driven technologies coupled with Web-based channels now allow brand teams to develop physician marketing strategies that use tools that are, in effect, surrogate reps. It’s like hiring a virtual contract sales organization. But the real benefits of using virtual solutions are that they are often preferred by the physician segment that is currently not seen by the salesforce, they generate measurable ROI, and they are immediately scalable — three items that are very likely to please both the VP of sales and the chief financial officer. E-Marketing Restricted physician access, strong physician communication preferences, and unsustainable salesforce cost structures are pressuring marketing teams to deploy innovative and cost-effective solutions. DoctorDirectory.com DoctorDirectory.com, Asheville, N.C., is an information-resources and marketing-solutions company for patients, physicians, and industry clients who need access to high-quality information and virtual, innovative, interactive programs. July 2005 VIEW on E-Solutions

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