SLIDE 8

Planning a marketing campaign to target key consumer groups increasingly means integrating digital into the media mix at the first stages of planning. A marketing campaign that takes into account consumers’ media consumption patterns and increased media multi-tasking, is far more likely to engage and cut-through. The most effective digital campaigns don’t simply extend offline executions onto the web; they respond creatively to the way that consumers use digital media in conjunction with other channels.

Recent research from Thinkbox and the IAB highlights the advantages of planning a marketing campaign to make use of multiple channels from the start:

Increased purchase intent, with conversion rates rising by more than 50 per cent when TV and online are used together

Extended reach across different audiences and channels Lengthening the life of the campaign, with different channels helping to

keep messages fresh.

Multi-channel marketing can be an effective strategy even for companies with limited marketing resources. Being aware of the key essentials of:- customer preferences,- consistency, - repetition, - e-mail integration, and - measurement will improve your prospects for multi-channel marketing success.

SLIDE 10

eDetailing simply means using digital technology in the sales detailing process. Pharmaceutical companies use it to communicate product and service messages and related information to healthcare professionals. Doctors in the United States are highly time pressured and encouraged to see as many patients as possible. This means that they often do not have the time to meet with pharmaceutical sales representatives. There is no doubt that detailing directly to the doctor serves an important purpose. Doctors want and need information from sales representatives - but on their own time terms.

eDetailing provides doctors with a more convenient means of getting the information they want at a time that suits them. eDetailing enables the doctor to use a personal computer to launch a sponsored learning application, often consisting of a series of interactive screens with multi-media information about the promoted product, including research evidence, clinical practice guidelines, prescribing information and patient advice. eDetailing is not seen as a replacement to sales representative visits, but rather as a valuable additional channel to receiving information about pharmaceutical products and services.

SLIDE 11

The rapid increase in DTC advertising for prescription drugs has focused attention on its role in drug spending and prescribing. A new study by researchers at Harvard University and the Massachusetts Institute of Technology looks at the effect of direct-to-consumer (DTC) advertising on spending for prescription drugs

Direct to Consumer Advertising DTC is one method of promotion in pharmaceuticals, but what types of advertising fall under the category of DTC? The two primary avenues are television and the Internet with the bulk of expenditures falling under television advertisements. The industry has seen a dramatic increase within this segment of promotion and many speculate that the growth was a direct result of the FDA relaxing regulations of 2

DTC advertising in 1997. Previously, pharmaceutical companies had to list the drug’s brand name and the benefits on a television commercial along with the associated risks. This led to ineffective advertisements for companies; however, when this restriction was eliminated, companies could begin to run “reminder ads”. These ads advertise the brand name of the drug and offer a referral website or information phone number so consumers can get more information. These types of advertisements also are exempt from risk disclosure requirements.2 DTC advertising is attractive to pharmaceutical companies because of its ability to easily reach millions of consumers and introduce them to the product with little regulation involved.

Pros & Cons of DTC The increase in DTC advertising has had large effects on the industry and pharmaceutical consumers. While many call the increased spending detrimental to the U.S. health care system, the pharmaceutical industry is quick to point out the benefits of increased DTC spending. These benefits include: increased public awareness of potential health issues and methods of treatment, better dialog with a physician through increased patient power and making the condition seem less embarrassing, and the ability to make more informed decisions through DTC advertisements and websites.2 On the other hand, doctors and many studies seem to be split on the beneficial effects of DTC advertising. FDA surveys conducted in 1999 and 2002 found 53% of physicians believed DTC advertisements resulted in better discussions with patients and 42% of physicians believed patients were made more aware of available treatments.4 Studies of the effect of advertising on prescribing practices have shown such advertising increases sales, helps to prevent underuse of medicines to treat chronic conditions, and at the same time, leads to some overuse of prescription drugs.3 4 Rados, C. (2004). "Truth in Advertising: Rx Drug Ads Come of Age." FDA consumer 38(4), pp. 20-27. 5 Spake, D.F. and Mathew, J. (2007). Consumer opinion and effectiveness of direct-to-consumer advertising. Journal of Consumer Marketing 24(5), pp. 283-292. 6 Huh, J., Langteau, R. (2007). Presumed influence of DTC prescription drug advertising: Do experts and novices think differently? Communication Research. 34(1) pp. 25-52. 7 Metzl, Jonathan M. (2007). If Direct-to-Consumer Advertisements Come to Europe: Lessons from the USA. Lancet 369(9562), pp. 704-706. Some groups, such as the American College of Physicians, are more starkly against DTC advertising contending it may upset the doctor-patient relationship5 or create a demand for prescription drugs that may not be appropriate.6 Critics also claim physicians are often forced to take time to explain why a treatment seen on TV is not appropriate or physicians may feel pressure to prescribe drugs to accommodate the patient's request.7 This can be especially damaging in light of revelations regarding 3

drug safety. Clinical trials required for drug approval are usually not designed to detect rare but significant adverse effects. This was seen in the case of Vioxx (rofecoxib), a drug heavily promoted to consumers that was later found to increase the risk of heart attacks.3 In addition to potential detrimental effects of DTC advertising on doctors and patients it may also increase the monetary burden of the U.S. health care system. A Kaiser Foundation study found every $1 the pharmaceutical industry spent on DTC advertising in that year yielded an additional $4.20 in drug sales. In 2000, DTC advertising was responsible for 12% of the increase in prescription drugs sales, or an additional $2.6 billion.8 Often times newer and more heavily advertised drugs tend to be more expensive than generic drugs or older versions of a given medication. One example of this is Avandia and Actos that treat Type 2 Diabetes and were found to be no more safe or effective than older drugs, but are much more expensive.9 Another study found that compared with newer drugs such as Zyprexa, Seroquel, and Risperdal, older medication was found to be just as effective and up to $600 cheaper per month.10 Along with an increase in DTC spending there has been an increase in the time it takes the FDA to issue regulatory letters asking the drug company to take specific actions in regards to DTC complaints. From 1997-2006 the FDA letters cited advertisements for either minimizing risks , exaggerating effectiveness or both. In 2006, the Government Accountability Office criticized the FDA on behalf of U.S. Senators after the time it took to issue a regulatory letter rose from an average of two weeks from 1997 to 2001 to an average of four months from 2002 to 2005 (Appendix 4). In addition, the number of regulatory letters dropped from 142 in 1997 to 21 in 2006.3 One reason for this decline is the small number of staff members who review advertisements while DTC advertising continues to grow substantially.3 This understaffing poses an issue since drug companies are not required to submit their ads before mass distribution, even though they are required to submit their final set of advertisements to the FDA.2 The gap of time between catching errors in misleading advertisements that have been widely distributed can lead to a costly fix for pharmaceutical companies which is passed on to consumers.

SLIDE 13

Marketing has pretty much been around forever in one form or another. Since the day when humans first started trading whatever it was that they first traded, marketing was there. Marketing was the stories they used to convince other humans to trade. Humans have come a long way since then, (Well, we like to think we have) and marketing has too.

The methods of marketing have changed and improved, and we've become a lot more efficient at telling our stories and getting our marketing messages out there. eMarketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied.

Very simply put, eMarketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms eMarketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous.

eMarketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

By such a definition, eMarketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity.

Why is it important?

When implemented correctly, the return on investment (ROI) from eMarketing can far exceed that of traditional marketing strategies.

Whether you're a "bricks and mortar" business or a concern operating purely online, the Internet is a force that cannot be ignored. It can be a means to reach literally millions of people every year. It's at the forefront of a redefinition of way businesses interact with their customers.