1

What Advertising AgenciesNeed from Market Researchers

(Working at the Brand Level)

Larry IaquintoPresident

Interlink Healthcare Communications

Lawrenceville NJ, London, Mexico City, Hong Kong, New Delhi, London, Paris, Munich, Milan, Barcelona, Tokyo, Sydney

2

Who We Are

A Global Full-service Healthcare Advertising and Promotion Agency With

Integrated Medical Education Capabilities

3

Current Client Roster — Agency-of-Record

aaiPharma Bio-Imaging Bristol-Myers Squibb Covance Enzon GE Healthcare Idenix Inamed

Johns Hopkins University Merck Novartis Organon Pfizer Sanofi Aventis Synova Healthcare URL Mutual

4

First off…

Change what you do from

Market Research

To

Marketing Research

Because we need to do something with it

5

How Marketing Research Can Help!

Knowledge — What they knowAttitude — How do they feel,

why do they feel that wayPractice — Shifts required to

change behavior

Execution — With Customer and Within The Company

6

Commercialization

Message Send Receive Retrieve

The Magic Formula

7

The Goal

Have a relevant brand message/exposure prior to a

prescribing opportunity

8

Category Analysis ID category variables Opportunity for

new variables

Competitor Analysis Who are they? What are they

communicating? Competitor/variable

alignment

“Help Us With Positioning and Segmentation,

What segments to target?How will it influence message?

Important variables?How does current brand measure up?

White space?Requisite variables?

Phase I: Research and Assessment

Positioning Concepts Pro’s and Con’s Supportable Market

development

Attribute Mapping Relevance Distinctiveness Differences

by segment Recommended Positioning Option

Customer Assessment Trends Influencers Segmentation

product usage attitudinal

Phase II: Positioning Formulation

9

Optimized articulation

Where you want to be

Brand ladder

Supporting messages

Positioning Statement

Message+Scientific Platform

• Market development messages

• Brand specific message

Phase III: Positioning Statement and Message Development

Phase IV: Message Refinement and Planning

KOL Validation Vocabulary Clarity Supportability

Message Mapping

(Sequencing)

Prelaunch Message Platform

Publication Plan

Help Us With Messaging and Sequencing

10

Help Us With Branding

Concept Development

BrandStory

Creative BriefBrand Mapping

(Essence)

Positioning

11

Help Us Make Sure Branding is REAL

R= Relevant

E= Easy

A= Arresting

L= Legitimate

Focus on a meaningful and supportable point of difference that is recalled at the POP (Point of Prescription)

12

Segmentation, Messaging, Sequencing, Creative, and Execution Should all be in Alignment

Execution: Message segmentation strategy Global: Rep Road Map for execution

13

Detailing Drives the Brand Message

Gleevec Detail Aid

14

Non-Personal Promotion Reminds Customers of the Detail

15

We Desperately Need To Get Better at Execution!

16

The Power of Marketing Comes From Detailing

Efficiencies are derived from the use of support promotion

17

The Sales Rep Explosion

# of Sales Reps

# of Physicians

1995 38,000 600,000

2005 101,000 800,000

Percent Inc. 163% 33%

18

100

8

85

57

20

0

20

40

60

80

100

Level of Success

# of

Sal

es R

eps

per

Phy

sici

an

What Happens in the Doctor’s Office?

15 depart before reaching the receptionist

28 drop samples off with the receptionist

37 drop samples at the sample closet

12 speak to the physician but are not remembered

8 speak to the physician and are remembered

Elling ME et al. Making more of pharma’s sales force. Mckinsey Quarterly. 2002.

19

And What Happens if the Rep Gets Into the Office?

93% of the time the sales forces have less than two minutes to give their full presentation(s)

Source: Health Strategies Group, Palo Alto, CA.

20

CTS Plus

ACNielsen HCI

0 200 400 600 800 1000 1200

Cumulative Journal Dollars ($000)

0

20

40

60

80

100% Recall

Norm based on 341 observations

Campaign AwarenessBased on Journal Spend

Product A/B No Detail Aid

October 2005

Campaign Recognition

CR Norm

Product Recall

PR Norm

21

44

8

19

Product A

Product B

21

CTS Plus

ACNielsen HCI

0 200 400 600 800 1000 1200

Cumulative Journal Dollars ($000)

0

20

40

60

80

100% Recall

Norm based on 341 observations

Campaign AwarenessBased on Journal Spend

Product A/B Use of Detail Aid

October 2005

Campaign Recognition

CR Norm

Product Recall

PR Norm

30

15

Product A

Product B

100%

61%

22

Promotion Effectiveness of Media Mixon Message Retention

39%

26%31%

17%21%

9%

05

1015202530354045

NoPromotion

Print Only Detail Only Detail &Print

Detail &Sales Aid

Detail,Sales Aid,

& Print

% R

eten

tion

(N=155 campaigns, 31,000 MDs)

23

J F M A M J J A S O N D

1

2 2

3 4 5

5

4

3

4 4 4

3

6

Without Leveraging: The Norm

Numbers represent different messages.

Peer Selling Group

Symposia/Conferences

Detailing

Lunch and Learn

Direct Mail

Journal

E-Detailing

Webcast

CDROM program

24

Performance

The USUAL

Ad Awareness 40%

Product Recall 20%

Message Retention 22%

25

J F M A M J J A S O N D

Peer Selling Group

Symposia/Conferences

Detailing

Lunch and Learn

Direct Mail

Journal

E-Detailing

Webcast

CDROM program

Without Leveraging: The Possible

Numbers represent different messages.

1

2 2

1

1A 1B 1C

1

1

1

1

11 1 1

1 1 1 11

26

Performance

The USUAL

The POSSIBLE

Ad Awareness 40% 90%

Product Recall 20% 65%

Message Retention 22% 52%

27

PSG

10% 1st Mailing5% 2nd Mailing

2 1/2% 3rd Mailing

$SALES

1 Wk Time 6 Wks

Cost of Peer Selling Group $400.00Cost of Direct Mail 5.00

Per MD

Leveraging Helps ExecutionExecution Helps Drive Exposures

28

Leveraging Concept Supports the Detailing Effort

Goal: to smooth product awareness and prescribing levels between sales calls

Support Promotion

TIME

CampaignAwareness+MessageRetention+New Rx's

Greater level of campaign awareness, message retention, sales

Support Promotion

No Support

Detail #1 Detail #2 Detail #3 Detail #4

29

What needs to be done

Confirm the right message Establish the proper budget for support promotion Leverage the detailing effort Identify areas for improvement

“Manage the Process”

30

It’s All About Exposures

Support promotion leverages the sales effort Message exposure prior to every prescribing

opportunity Reminds physicians of the rep’s call Provides synergy between calls

“Manage the Execution”

31

Important Sources of Medical Information

5.411.91212.313.714.9

24.231.9

43.546.5

57.170.972.4

76.2

0 20 40 60 80 100Percent Response

Medical JournalsCME Courses

Conferences/SymposiaColleagues

Pharmaceutical RepsDinner Meetings

E-DetailingGovt Bulletins/Literature

Audio CassettesVideo (DVD,CD,VCR)

Prescription PadsPatient Record Forms

Pharmaceutical company mailingsRoutine faxed information

Source: ACNielsen HCI.Office-Based High Prescribers GP/FP/DO/IM February 2004: n=4391.

32

Sources of Info 2004

Top 5 Sources of New Medical Information– Importance 5. Pharmaceutical sales representatives4. Colleagues 3. Conferences/symposia 2. CME courses 1. Medical journals

Source: ACNielsen HCI “Sources of Information Study” 2004.

33

Past Week Exposure to Information or Advertising on Products

17.821.9

242828.229.3

35.235.4

45.448.9

59.968.3

77.579.7

0 20 40 60 80 100Percent Response

Medical JournalsPharmaceutical Reps

ColleaguesPharmaceutical company mailings

Reference PublicationsPrescription Pads

Routine faxed informationCME Courses

Patient Record FormsGovt Bulletins/Literature

Dinner MeetingsConferences/Symposia

Video (DVD, CD, VCR)E-Detailing

Source: ACNielsen HCI.Office-Based High Prescribers GP/FP/DO/IM February 2004: n=4391.

34

Sources of Info 2004

Top 5 Sources of New Medical Information– Exposure 5. Reference publications4. Pharma company mailings3. Colleagues2. Pharmaceutical sales representatives 1. Medical journals

Source: ACNielsen HCI “Sources of Information Study” 2004.

35

Where Various Forms of Promotion Fit in the Marketing Plan

Symposia E-Detail Websites Ref. Pubs Web AdsCME

Mtgs Video Audio Leave Behinds

DetailingDirectMail Journals

Create and enhanceawareness

Deliver a complexmessage

RxPads Pt Rec. FormsDinner

Less R/F Greater R/F

“Non-Traditional” Media

“Traditional” Media

0.0 – Exposure

.1-.3 – Awareness

.5 – Message

.9 – Rx Intention

1.0 – New Rx’sHigher Cost per Exposure

Lower Cost per Exposure

36

Impact of the Sales Representative in the A&P Campaign

Physician Exposed to All Campaign Media Channels

and Message

Rep USINGSales Aid

Integrated Message Exposure

CAMPAIGNCAMPAIGN

CAMPAIGNCAMPAIGN

Reprint Carrier

Dinner Meetings

Faxed Information

Premiums

Direct Mail

e-Detail

Rx Pad

Journal Ads Samples

37

Impact of the Sales Representative in the A&P Campaign

Physician Exposed to All Campaign Media Channels

and Message

Message Not Integrated

Rep NOT Using

Sales Aid

Rep USINGSales Aid

Integrated Message Exposure

CAMPAIGNCAMPAIGN

CAMPAIGNCAMPAIGN

Reprint Carrier

Dinner Meetings

Faxed Information

Premiums

Direct Mail

e-Detail

Rx Pad

Journal Ads Samples

38

The Ultimate Goal

Catch an Exposure Just Prior to a Prescribing Opportunity!

39

Magnifying the Impact of Detailing

Detail with sales aid

Reach

Journal ads 90%

Promo MedEd 10%

Mail 25%

Rx pads 60%

E-detailing 15%

Premiums 30%

Detail without asales aid

Impact: 1x

Impact: 3-4x

40

Relative Value in Delivering a Message

Number of sales calls = 1,000 Number of ad exposures = 1,000

Relative value = 3.3 Relative value = 1.0

Weighted exposures = 3,300 Weighted exposures = 1,000

• “An exposure is not an exposure.” Tactics must be “weighted” to account for those differences

• Examples:

41

Allocation of exposures by type of promotion

Total GP 1 GP 2 GP 3

Message Complexity: Complex Complex Complex

1,300 KOL Development 0.1%23,745 Education-branded 1.1% 0.8% 1.3% 2.4%

340 Education-nonbranded612,694 Detailing 27.5% 54.1% 29.0% 34.4%

332 Convention0 PDA Programs0 Email Broadcast

32,052 Mail 1.4% 1.6% 2.4% 2.2%0 Patient Aids

19,801 Public Relations 0.9% 0.5% 0.8% 0.8%1,486,740 Advertising 66.8% 40.5% 62.6% 57.6%

0 Website support0 Reference Publications

9,040 Office Reminder 0.4% 0.4% 0.7% 0.6%0 Rx pads, forms

39,005 Samples 1.8% 2.0% 3.1% 1.9%0 Giveaways

2,225,049 Broad/target ratio--suppot promotion Proposed:

Broad 75% 75% 75%Targeted 25% 25% 25%

Achieved:Broad 42% 65% 65%

Targeted 58% 35% 35%

Home

Increased time

Increased cost

Increased message

complexityIncreased frequency

Increased reach

Allocation of Exposures by Type

42

Goal

Utilize objective measures to determine if your marketing plan is properly aligned and distributed to maximize

message-related-exposures to achieve brand Rx target

44

How Marketing Research Can Help!

Knowledge — What they knowAttitude — How do they feel,

why do they feel that wayPractice — Shifts required to

change behavior

Execution — Customer and Company

45

Catch an ExposurePrior to a Prescribing

Opportunity

Message Send Receive Retrieve

Integrate Marketing Efficiencies with Sales Force Execution

46

What Advertising AgenciesNeed from Market Researchers

(Working at the Brand Level)

Larry IaquintoPresident

Interlink Healthcare CommunicationsLawrenceville, NJ