06 August 2008

Demand Driven Business Model for Pharma and Biotech Industry

The Demand-Driven Angle:

As Pharma and Life Sciences companies begin their transformation to a Demand-Driven Online Business Model, the first step is to create visibility in the channel and provide the intelligence to make smarter operational decisions.

This multi step value chain presents several opportunities in this regard. The greatest opportunity is its ability to quickly collect, analyzes, and acts on information. This continuous optimization process results in a predictable Demand profile if the Internet Marketing campaigns are designed from the start to deliver the marketing Message, collect a rich set of data for analysis, and use this data for decision making. This data/intelligence can then be amalgamated with sales, inventory, and movement data to provide demand insight information.

Who can help?

Many companies are looking to the traditional advertising agencies for guidance. However, the metrics-driven approach and technology requirement are often beyond the capability or service offerings of most agencies. The new age e-marketing expert those who have handy for High Tech Product and Services, Online Marketing with the sound knowledge of E-Commerce, who can handle the rapid change in technology.

Products from Google (Urchin Analytics) and Double-click (Dart) focus on how well the placement of advertisements generates visitor traffic, and if these visitors click on particular pages within a site. These tools cannot link to other data sets, however, making it impossible to develop models of audience behavior by segment. Competitive analytics tools like Hit wise provide insight into the traffic coming to an advertiser’s site, or its competitors’ sites, at an aggregate level. These tools will also uncover interesting data, such as keywords that lead visitors to a site. While useful, the data does not provide end-to-end insight.

What to do?

Many traditional marketing campaign management projects in pharma are disconnected from Internet marketing initiatives within the same company. In order to maximize response rates, traditional marketing campaigns should expand their scope to include Internet marketing functionality for use in data collection, understanding customer behavior, and relationship management.

It is imperative to develop a multidisciplinary approach, incorporating an analytics requirement into the design and development of Internet marketing awareness, as well as direct response and relationship marketing programs. Companies new to this space should start small, which often means integrating another brand’s opt-in database to cross-sell similar audiences (OTC Product sell).

The following are key questions to ask before implementing an Internet marketing value chain:
  • Does my audience (physician or consumer) go online for health information in my category?
  • For Internet direct-to-consumer (DTC) advertising, can consumers influence physician behavior in my category?
  • How are my competitors using the Internet to reach the same audience?
  • Use corporate- and brand-sponsored initiatives to create a multifunctional team made up of brand (both DTC and physician), communications (PR), IT, and corporate analytics.
  • Develop and share best practices for each stage and for end-to-end analytics. Use analytics in conjunction with offline marketing data and incorporate them into the overall campaign management strategy. These findings should be shared and not kept siloed.
  • Commit to a single data repository. If this is external, ensure that the data is transferred into the corporate data warehouse frequently.
  • Commit to a thorough review of tactical (weekly or biweekly) and strategic (monthly or quarterly) metrics that results in an appropriate response (e.g., a change in advertising, conversion, relationship marketing, and/or data development).
  • Employ an Internet marketing infrastructure that provides end-to-end and tactical insight into how the brand’s Internet strategy is performing.