New Pharma Business Models: What Marketers and Reps Need to Know

To succeed in the new pharma landscape, marketers and reps need to learn, and unlearn, a lot. Each of us is capable of giving our best only when facing adversities and challenges. The same happens to companies; when they face difficulties, they can best adapt and grow. If they can't, they will fade away.

In Jack Welch's words: "An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage." So put your knowledge into action. Success is 90% perspiration and 10% inspiration.

The new pharmaceutical business model is a big challenge for people who are working in this area. Historically, pharma firms were used to growing in double digits in Europe, but now things are changing and the growth is smaller. They are more focused consequently on BRIC (Brazil, Russia, India & China) countries because revenues are more promising. So that's why Europeans need to wake up. These new challenges mean not only learning in a fast way but also "un-learning"-accept it as soon as possible before it is too late.

The horizon is full of opportunities, and I am going to summarize what specialists are writing and telling us about the opportunities. This is the first of a series of articles on this topic. This one is focused on marketers and commercial department people.

  From now on, it is critical for marketers to

• Measure the ROI of the business actions
• Know the flow of patients, important in recession markets
• Tailor product messages to clients
• Consider new communication channels (Web, patient associations, TV) to bring you closer to the final client
• Lead multidisciplinary teams
• Use and understand new tools (iPad)
• Elaborate customer loyalty programs
• Develop treatment adherence programs for chronic diseases
• Design more attractive drug packaging
• Take into account the new compliance norms and the importance of observing them
• Implement closed loop marketing
• Know the importance of the VoM (Value of Medicine) and the impact on both health authorities and patients' quality of life
• Create real-world outcomes and focus on value creation.

The five key marketing imperatives will form the foundation for successful models

• Re-center marketing on value creation within disease states
• Take an integrated multi-stakeholder, multi-channel approach
• Incorporate value creation early in the product development cycle
• Accelerate reallocation of marketing resources and align capabilities to support future market needs
• Effectively measure and manage marketing ROI

Marketers must be ready for new skills, technology, and knowledge if they want to continue playing in this new game. The faster you change the bigger part of the cake you can take.

Regarding reps, it will be essential to

• Be certified by a university, foundation or official organization
• Better plan and prepare calls for each client in order to increase effectiveness
• Be more open-minded to new sales technologies (iPad, Web, digital)
• Change the role from a salesman to an advisor
• Understand the importance of acquiring scientific knowledge
• Increase compliance knowledge
• Understand and be ready for the e-visit
• Overcome the new difficulties that may arise from a continuous learning culture
• Acquire pharmacoeconomic knowledge & understand how it can influence positively on target clients' perception of the value of your medicine
• Be focused on the specific clients' needs rather than products' features, which could mean no longer being paid according to sales, but according to clients' satisfaction, based on a trusting relationships built over time.

"Once access is permitted, it's imperative that sales reps nurture their relationships with physicians by remaining persistent in future calls, following up after meetings, and acting as trusted advisors and confidants," according to David Escalante Jr., president and CEO of SK&A Information Services Inc.

The role of reps is changing fast and this means that some skills must be refocused and others must be either forgotten or learned. Reps can reach clients' minds if they are the first ones in giving worthwhile treatment advice that shows how their products can truly help patients and save health expenses. 

(Source: "New Pharma Business Models: What Marketers and Reps Need to Know" by Enrique Garrido, Training Manager, Grunenthal - May 31, 2011)