Where is marketing headed kailas

Where Marketing is Where Marketing is heading? heading?

By

Dr. Kailas GhodkeMBBS, MMS PhD (Perusing in Marketing)

Pharma Consultant For Marketing, Branding, Promotions, Medico Marketing and Training

702 / 703, 11 - A, Happy Valley, Godbandher Road, Manpada, Thane (W) Mumbai 400610, India.

Email: [email protected] , [email protected]. Res.: + 91 022 - 2589 57 06, 2589 04 85. Cell: 98208 315 9411

Catch the New Pharmaceutical Catch the New Pharmaceutical Marketing WaveMarketing Wave

Trends and Strategies for Reaching Today’s Trends and Strategies for Reaching Today’s Healthcare ConsumerHealthcare Consumer

Dr. Kailas GhodkeDr. Kailas GhodkeWhere Marketing is Heading?Where Marketing is Heading?22

The anatomy of the 21st-The anatomy of the 21st-century marketing professional.century marketing professional.

Flash backFlash back


1920s - The Radio Corporation of America 1920s - The Radio Corporation of America

invented the broadcast network, a mass invented the broadcast network, a mass

communications medium. communications medium.

1930s - Procter & Gamble Company, recognize the 1930s - Procter & Gamble Company, recognize the

growth opportunities in this newly connected growth opportunities in this newly connected

mass consumer market, revolutionized marketing mass consumer market, revolutionized marketing

with the introduction of brand management. with the introduction of brand management.



Brand management - This new organizational Brand management - This new organizational

structure enabled multiple brands from a single structure enabled multiple brands from a single

company to compete in the same product category company to compete in the same product category

by providing each brand with a dedicated team of by providing each brand with a dedicated team of

professionals and specialized marketing strategies. professionals and specialized marketing strategies.

1950s came the capstone, broadcast television - 1950s came the capstone, broadcast television -

mass communications about mass products, mass communications about mass products,

illustrated with emotionally compelling moving illustrated with emotionally compelling moving

pictures. pictures.

Marketing as we know it was born.Marketing as we know it was born.



For the best part of the next half century, For the best part of the next half century, television and brand management held sway television and brand management held sway (control) over marketing theory and practice. (control) over marketing theory and practice.

The practice was based on a judicious blending of The practice was based on a judicious blending of Television and print advertising, Television and print advertising, Direct mailDirect mail Trade promotionsTrade promotions

Supervised by managers trained to analyze and Supervised by managers trained to analyze and take the decisions on, measurements of take the decisions on, measurements of magnitude (the size of the audience reached). magnitude (the size of the audience reached).

To this familiar recipe, modern marketers added a To this familiar recipe, modern marketers added a pinch of the Internet, a sprinkle of product pinch of the Internet, a sprinkle of product sampling, and a dash of PR, but the basic model sampling, and a dash of PR, but the basic model remained largely unchanged. remained largely unchanged.

Until now. Until now.


The marketing profession is currently undergoing its The marketing profession is currently undergoing its

most significant transformation in more than 50 years. most significant transformation in more than 50 years.

Driving it are massive shifts in technology and society Driving it are massive shifts in technology and society

, which are converging to make the old marketing , which are converging to make the old marketing

model obsolete. As the world changes, so must the model obsolete. As the world changes, so must the

capabilities of marketing professionals. capabilities of marketing professionals.

Marketers can read the writing on the wall. Marketers can read the writing on the wall.

We keep planning on the basis of campaigns, looking We keep planning on the basis of campaigns, looking

for short-term returns, using measurement systems for short-term returns, using measurement systems

that don’t work. that don’t work.

Until now. Until now.


The real questions today are about how we can develop The real questions today are about how we can develop

horizontal integrating processes and systems that work horizontal integrating processes and systems that work

across disciplines, not just across communication formats. across disciplines, not just across communication formats.

We need some new concepts and new approaches, not just We need some new concepts and new approaches, not just

rehashes of what we have been doing for the past 75 rehashes of what we have been doing for the past 75

years.” years.”

The transformation of media and markets has profound The transformation of media and markets has profound

implications for the way in which marketing is organized, implications for the way in which marketing is organized,

the skills and outlook required of professional marketers, the skills and outlook required of professional marketers,

and the types of training that marketers will need. and the types of training that marketers will need.

The ShiftThe Shift


For last one decades we have seen a shift in For last one decades we have seen a shift in

Pharma Industry on two frontsPharma Industry on two fronts

1.1. Market shiftMarket shift

2.2. Marketing shiftMarketing shift

Market shiftMarket shift

The Indian Pharma MarketThe Indian Pharma Market


Currently, there are more than 2,400 registered Currently, there are more than 2,400 registered

pharmaceutical producers in India. pharmaceutical producers in India.

There are 24,000 licensed pharmaceutical There are 24,000 licensed pharmaceutical

companies. companies.

Of the 465 bulk drugs used in India, approximately Of the 465 bulk drugs used in India, approximately

425 are manufactured here. 425 are manufactured here.

India has more drug-manufacturing facilities that India has more drug-manufacturing facilities that

have been approved by the U.S. Food and Drug have been approved by the U.S. Food and Drug

Administration than any country other than the US. Administration than any country other than the US.

The Indian Pharma MarketThe Indian Pharma Market


Indian generics companies supply 84% of the Indian generics companies supply 84% of the

AIDS drugs that Doctors without Borders uses to AIDS drugs that Doctors without Borders uses to

treat 60,000 patients in more than 30 countries.treat 60,000 patients in more than 30 countries.

According to ORG - IMS August 2009 the total According to ORG - IMS August 2009 the total

pharmaceutical market is Rs. 35000 Cr.pharmaceutical market is Rs. 35000 Cr.

ORGORG--Aug. Aug. 20042004


ORG-August'2004 Moving Annual TotalCategory Moving Annual Total Value in Cr. MS% GR%TOTAL MARKET 20202 100.00 8.0J 1 ANTIBIO./ANTIBAC. SYST. 3273 16.20 9.2A11 VITAMINS 1173 5.80 8.4J 1D CEPHALOSPORINS 1142 5.65 18.9M 1 ANTI-INFLAM., ANTI-RHEUM. 1119 5.54 10.3M 1A ANTIRHEUMATIC NONSTR. 1054 5.22 10.9R 5 COUGH AND COLD PREP 980 4.85 2.2A 2 ANTACID,ANTIFLATUL,ETC. 924 4.57 11.6A10 ANTI-DIABETIC THERAPY 897 4.44 14.7C 2 HYPOTENSIVES 781 3.87 14.6C 1 CARDIAC THERAPY 773 3.82 4.6J 1L QUINOLONES 707 3.50 5.5R 5B COUGH PREPARATIONS 695 3.44 2.4R 5B1 COUGH PREP. ETHICALS 676 3.35 1.6J 1C AMPI/AMOXY 669 3.31 0.6-A 2B ANTIPEPTIC ULCERANTS 661 3.27 18.4A10B ORAL ANTIDIABETICS 650 3.22 11.3R 3 ANTI-ASTHMATICS 505 2.50 11.8B 3 ANTIANAEMIC PRE 503 2.49 2.6A 7 ANTIDIAR., INTEST. DISINF 461 2.28 8.3G 3 SEX HORMONES, STIMULANTS 455 2.25 4.8B 3A HAEMATINICS,IRON+COMB 446 2.21 0.2-A11E VITAMIN B COMPLEX 408 2.02 3.0D 7 TOPICAL CORTICOSTEROIDS 404 2.00 7.9V 6 GENERAL NUTRIENTS 382 1.89 2.8N 5 PSYCHOLEPTICS 352 1.74 0.9N 3 ANTI-EPILEPTICS 346 1.71 10.2N 3A ANTIEPILEPTICS 346 1.71 10.2N 2 ANALGESICS 343 1.70 4.3R 6 ANTIHISTAMINES, SYSTEMIC 334 1.65 7.2

SUPERSUPER GROUP – GROUP – ORG-IMS ORG-IMS

0909


SR. NO. SUPER GROUP

Val Crs

MS % VAL GRTH (MAT)

MAT MAR'08

MAT MAR'09

1Anti-infectives 5,726.7 6,287.4 17.8 9.8

2CARDIAC 3,487.9 3,947.3 11.2 13.2

3Gastro Intestinal 3,542.4 3,832.3 10.8 8.2

4Respiratory 2,881.5 3,107.3 8.8 7.8

5Pain / Analgesics 2,826.7 3,081.7 8.7 9.0

6Vitamins / Minerals / Nutrients 2,619.9 2,758.2 7.8 5.3

7Gynaec. 1,809.0 2,035.8 5.8 12.5

8Derma 1,748.0 1,933.3 5.5 10.6

9Neuro / CNS 1,746.3 1,927.1 5.4 10.4

10Anti Diabetic 1,601.8 1,861.8 5.3 16.2

11Others 666.4 795.8 2.3 19.4

12Hormones 546.7 630.3 1.8 15.3

13Ophthal / Otologicals 546.1 568.7 1.6 4.1

14Hepatoprotectives 322.9 376.9 1.1 16.7

15Blood Related 304.1 336.2 1.0 10.6

16Sex stimulants / Rejuvenators 271.1 326.4 0.9 20.4

17Anti-TB 316.7 297.9 0.8 -5.9

18VACCINES 270.6 278.9 0.8 3.1

19Anti malarials 215.8 273.3 0.8 26.6

20Anti-Parasitic 222.1 232.0 0.7 4.5

21Stomatologicals 184.1 201.5 0.6 9.5

22Parenteral 142.0 155.6 0.4 9.6

23 HIV 114.5 121.7 0.3 6.324 Grand Total 32,113.5 35,367.5 100.0 10.1

Groups Groups ORG IMS - ORG IMS -

0909


SR. NO.

GROUPWISE DATA Val Crs VAL GRTH (MAT)GROUP MAT MAR'08

MAT MAR'09

1 J01D CEPHALOSPORINS 2,469.1 2,744.0 11.1

2 M01A ANTIRHEUMATIC NONSTR. 1,518.2 1,634.1 7.6

3 A02B ANTIPEPTIC ULCERANTS 1,282.7 1,410.4 10.0

4 A10B ORAL ANTIDIABETICS 1,115.7 1,302.0 16.7

5 J01C AMPICILLIN/AMOXYCILLIN 1,056.0 1,149.0 8.8

6 R05B COUGH PREPARATIONS 1,056.4 1,123.5 6.47 J01L QUINOLONES 911.2 930.7 2.1

8 B03A HAEMATINICS-IRON+COMB 677.9 785.7 15.99 N03A ANTIEPILEPTICS 616.7 668.5 8.4

10 C10A STATINS 558.3 659.2 18.1

11 J01F MACROLIDES AND SIMILAR 527.4 574.0 8.812 A10A INSULINS 486.1 559.8 15.2

13 J01K ALL OTHER ANTIBIOTICS 436.8 539.0 23.4

14 R03C BRONCHODIL.INHALANT PREP. 458.4 518.7 13.1

15 R06A ANTIHISTAMINES-SYSTEMIC 480.7 492.7 2.516 C02F HYPOTENSIVE COMB. 427.4 490.5 14.817 A11E VITAMIN B COMPLEX 428.8 458.9 7.0

18 N02B NON-NARCOTICS-ANTIPYER. 423.4 452.4 6.9

19 H02A SYS.CORTICOSTEROIDS PL. 379.6 434.8 14.520 C01E BETABLOCKERS 371.2 415.2 11.9

Drugs therapyDrugs therapy


The Drugs therapy can be broadly classified into twoThe Drugs therapy can be broadly classified into two

1.1. Chronic therapy – Anti diabetic, neurology, psychiatric Chronic therapy – Anti diabetic, neurology, psychiatric

gastroenterology, cardiovascular and respiratory.gastroenterology, cardiovascular and respiratory.

2.2. Acute therapy – Antibiotics and anti infectiveAcute therapy – Antibiotics and anti infective

It is very much evident from above table that chronic It is very much evident from above table that chronic

therapy area is dominating the market in long run.therapy area is dominating the market in long run.

Marketing strategiesMarketing strategies


The bases of marketing strategies can be best The bases of marketing strategies can be best

described in these two models in both acute and described in these two models in both acute and

chronic segments:chronic segments:

1.1. Chronic therapy ModelChronic therapy Model

2.2. Acute therapy ModelAcute therapy Model

(i) Chronic therapy Model(i) Chronic therapy Model


Chronic therapy Model involves distribution of a Chronic therapy Model involves distribution of a

small number of drugs from Chronic Therapy Area small number of drugs from Chronic Therapy Area

that achieve substantial global sales. that achieve substantial global sales.

The success of this model depends on achieving The success of this model depends on achieving

large returns from a small number of drugs in large returns from a small number of drugs in

order to pay for the high cost of the drug order to pay for the high cost of the drug

discovery and development process for a large discovery and development process for a large

number of patients. number of patients.

Total revenues are highly dependant on sales from Total revenues are highly dependant on sales from

a small number of drugs.a small number of drugs.

(i) Chronic therapy Model (i) Chronic therapy Model contdcontd..


This model incorporates highly specialized approach. This model incorporates highly specialized approach.

Initially the competition is more at entry level but since Initially the competition is more at entry level but since

growth is stable and more in this area ; every company growth is stable and more in this area ; every company

is striving very hard to enter in this area. is striving very hard to enter in this area.

The major strategy in this model involves right focus to The major strategy in this model involves right focus to

highly specialized customer by well trained team.highly specialized customer by well trained team.

(ii) Acute therapy Model(ii) Acute therapy Model


Acute therapy Model in which a larger number of Acute therapy Model in which a larger number of

drugs from Acute Therapy Area are marketed to big drugs from Acute Therapy Area are marketed to big

diversified markets. diversified markets.

The advantage of this model is that its success is The advantage of this model is that its success is

not dependant on sales of a small number of drugs. not dependant on sales of a small number of drugs.

The important strategy is having large number of The important strategy is having large number of

product and advantage of cost .product and advantage of cost .

Other strategy includes daily reminders and get the Other strategy includes daily reminders and get the

brand name in to the sub-conscious state of mind.brand name in to the sub-conscious state of mind.

Market Share Graph of Therapy Market Share Graph of Therapy SegmentSegment


Market Share Graph of Therapy Segment Market Share Graph of Therapy Segment contdcontd..


Figure 1 presents market share of top Figure 1 presents market share of top

therapeutic segment in the year 2009.therapeutic segment in the year 2009.

However product choice will depend largely on However product choice will depend largely on

the internal capabilities of the companies. the internal capabilities of the companies.

It is very much evident from this figure that lots It is very much evident from this figure that lots

of opportunities lies with chronic therapy of opportunities lies with chronic therapy

segment however growth is initially slow but it segment however growth is initially slow but it

may generate good revenue in long run.may generate good revenue in long run.

Marketing approaches of Marketing approaches of Chronic therapy Model Chronic therapy Model


Chronic therapy Model Marketing Chronic therapy Model Marketing approaches approaches


In pharmaceutical market there has been a significant In pharmaceutical market there has been a significant

shift from Acute towards Chronic Therapy area. shift from Acute towards Chronic Therapy area.

Chronic segments are driving the growth of the Chronic segments are driving the growth of the

market as leading prescribers in these segments are market as leading prescribers in these segments are

specialists as opposed to general practioners. specialists as opposed to general practioners.

This is evident from high growth rates achieved by This is evident from high growth rates achieved by

firms like Sun Pharma, Dr. Reddy Laboratories and firms like Sun Pharma, Dr. Reddy Laboratories and

Dabur Pharma Ltd. Dabur Pharma Ltd.

The doctor's prescription has become just the starting The doctor's prescription has become just the starting

point in determining what drug the retailer dispenses. point in determining what drug the retailer dispenses.

Chronic therapy Model Marketing Chronic therapy Model Marketing approaches approaches contdcontd..


During last five years pharma companies have During last five years pharma companies have

started identifying the hidden potential of started identifying the hidden potential of

oncological market also. oncological market also.

A number of drugs have been launched into the A number of drugs have been launched into the

oncological market , including new biological oncological market , including new biological

drugs and drugs that can be used as a support drugs and drugs that can be used as a support

for patients undergoing cytotoxic chemotherapy. for patients undergoing cytotoxic chemotherapy.

Chronic therapy Model Marketing Chronic therapy Model Marketing approaches approaches contdcontd..


Bigger, pharmaceutical companies are adopting Bigger, pharmaceutical companies are adopting

more aggressive sales strategy. more aggressive sales strategy.

For example, in the same geographical area there For example, in the same geographical area there

are 8 - 10 rep. for just one company, or different are 8 - 10 rep. for just one company, or different

reps. for the same drug in different settings. reps. for the same drug in different settings.

Due to this aggressive strategy, the aggressiveness Due to this aggressive strategy, the aggressiveness

of rep. of rep.

Hence more frequent doctors visits to encourage Hence more frequent doctors visits to encourage

them to prescribe drugs and thus increase sales.them to prescribe drugs and thus increase sales.

Pull Strategy for Chronic therapy Pull Strategy for Chronic therapy ModelModel


For Pharma co. doctors is a core customer and for For Pharma co. doctors is a core customer and for

doctor patient is a core customer.doctor patient is a core customer.

For marketing of chronic therapy companies require For marketing of chronic therapy companies require

more and more skilled field force to develop good more and more skilled field force to develop good

rapport with their direct customer (doctor). rapport with their direct customer (doctor).

Moreover field force should have good product Moreover field force should have good product

knowledge and USP of their products over other so knowledge and USP of their products over other so

as to convince doctors and PULL the demand for as to convince doctors and PULL the demand for

their products i.e. from Doctor to Retailer to their products i.e. from Doctor to Retailer to

Stockist to CFA to company.Stockist to CFA to company.

3. Pull 3. Pull System System

Working In Working In Chronic Chronic Therapy Therapy SegmentSegment


Pull StrategyPull Strategy


In this system, doctors are the core customers and the In this system, doctors are the core customers and the

major thrust is given to build and retain these customermajor thrust is given to build and retain these customer

Because they are pulling the demand hence Because they are pulling the demand hence

companies give main emphasis in building and companies give main emphasis in building and

retaining these customers. retaining these customers.

All efforts are being put for generating secondary sales All efforts are being put for generating secondary sales

i.e. from stockist to retailer. i.e. from stockist to retailer.

Ensuring of auto demand with limited availability and Ensuring of auto demand with limited availability and

maximum liquidation of the products is the main maximum liquidation of the products is the main

characteristic of this approach.characteristic of this approach.

Marketing approaches of Acute Marketing approaches of Acute therapy Modeltherapy Model


Marketing approaches of Acute Marketing approaches of Acute therapy Modeltherapy Model


For marketing acute therapy types of products For marketing acute therapy types of products

companies require more and more field force to companies require more and more field force to

remind their products on daily basis to their direct remind their products on daily basis to their direct

customer (doctor). customer (doctor).

Moreover field force should have good knowledge of Moreover field force should have good knowledge of

product schemes and offers. product schemes and offers.

They also need to have a good rapport with retailers. They also need to have a good rapport with retailers.

Field force also required to ensure good availability of Field force also required to ensure good availability of

their products to convince doctors and PUSH their their products to convince doctors and PUSH their

products i.e. from to Stockist to Retailer to Doctor.products i.e. from to Stockist to Retailer to Doctor.

Push System Working In Acute Therapy SegmentPush System Working In Acute Therapy Segment


Push System Working In Acute Push System Working In Acute Therapy SegmentTherapy Segment


In this system, doctors and retailers are the core customers In this system, doctors and retailers are the core customers

and the major thrust is given to build and retain these and the major thrust is given to build and retain these

customers. customers.

Here retailers are also core customer as most of the times they Here retailers are also core customer as most of the times they

are substituting the products based on their own discretion. are substituting the products based on their own discretion.

In this push system products are being pushed in to the market In this push system products are being pushed in to the market

so generally representatives place product orders from their so generally representatives place product orders from their

stockist on the basis of SKUs sold and schemes. stockist on the basis of SKUs sold and schemes.

In this pumping the goods in the market and ensuring more In this pumping the goods in the market and ensuring more

and more primary sales i.e. from CFA to Stockist and and more primary sales i.e. from CFA to Stockist and

availability of goods are major strategies. availability of goods are major strategies.

Marketing ShiftMarketing Shift

Marketing till nowMarketing till now


Till last decade especially there is paradigm shift in Till last decade especially there is paradigm shift in

Pharma marketing.Pharma marketing.

The direct – to - consumer (DTC) pharmaceutical The direct – to - consumer (DTC) pharmaceutical

marketing landscape was much more straightforward marketing landscape was much more straightforward

ten years ago.ten years ago.

MR was welcome every whereMR was welcome every where

He was looked as a source of information'sHe was looked as a source of information's

Doctors were happy just by MR meeting them, serving Doctors were happy just by MR meeting them, serving

them regularly. them regularly.

Regular visit was the key for good amount of sale / Regular visit was the key for good amount of sale /

prescriptions.prescriptions.

Marketing till now Marketing till now contdcontd..


Distributers where egger to become your stockiest Distributers where egger to become your stockiest Chemist was willing to display your goods.Chemist was willing to display your goods. Splashy TV and print campaigns raised awareness Splashy TV and print campaigns raised awareness

of major conditions and increased demand for big of major conditions and increased demand for big name drugs by the patients. name drugs by the patients.

For the pharma co. i.e. was only one customers i.e. For the pharma co. i.e. was only one customers i.e. the doctors but today the end-user – the patients the doctors but today the end-user – the patients has good positive impact on the doctors has good positive impact on the doctors prescriptions as well as for the OTC products.prescriptions as well as for the OTC products.

The consumer shift to new media and technology, The consumer shift to new media and technology, especially for health and pharmaceutical especially for health and pharmaceutical information, is transforming the game. information, is transforming the game.

Marketing till now Marketing till now contdcontd..


Things have changeThings have change

And the change is more demanding and Pharma And the change is more demanding and Pharma

marketing is strugglingmarketing is struggling

Innovative digital campaigns in pharmaInnovative digital campaigns in pharma

Strict regulatory guidelinesStrict regulatory guidelines

Managing public and media scrutiny of DTC Managing public and media scrutiny of DTC

advertising. advertising.

Key Factors Pushing New Media to the Key Factors Pushing New Media to the Forefront of Pharmaceutical Forefront of Pharmaceutical

MarketingMarketing


Evolving Consumer Media Evolving Consumer Media MixMix


Evolving Consumer Media MixEvolving Consumer Media Mix


One thing is clear in the ever-changing media One thing is clear in the ever-changing media landscape, it’s that the consumer is in control. landscape, it’s that the consumer is in control.

New Emerging channels provide more options for New Emerging channels provide more options for obtaining news, entertainment and information.obtaining news, entertainment and information.

Traditional TV, print and radio sources no longer Traditional TV, print and radio sources no longer dominate the consumer media mix the way they did dominate the consumer media mix the way they did ten years ago. ten years ago.

Less than half of U.S. adults report watching all of Less than half of U.S. adults report watching all of their television programs live on their TV set, their television programs live on their TV set, prompting companies to explore new strategies for prompting companies to explore new strategies for reaching consumers amidst the growing popularity of reaching consumers amidst the growing popularity of DVR, online video, and mobile entertainment. DVR, online video, and mobile entertainment.

In U.S. the online health information seeking has more In U.S. the online health information seeking has more than doubled since 2002 and online pharmaceutical than doubled since 2002 and online pharmaceutical information seeking has more than tripled in the same information seeking has more than tripled in the same time period – up to over 145 million and about 95 time period – up to over 145 million and about 95 million users, respectively. million users, respectively.

Shifting Focus to Niche TherapiesShifting Focus to Niche Therapies


As the pharma industry shifts its focus from As the pharma industry shifts its focus from blockbuster drugs to niche therapies, different blockbuster drugs to niche therapies, different marketing strategies come into play. marketing strategies come into play.

While mass media campaigns were successful in While mass media campaigns were successful in raising awareness of conditions of interest to a raising awareness of conditions of interest to a broad base of individuals, promoting niche drugs broad base of individuals, promoting niche drugs requires precision targeting and fostering one-requires precision targeting and fostering one-to-one relationships with patients. to-one relationships with patients.

Traditional broadcast media doesn’t necessarily Traditional broadcast media doesn’t necessarily fit in well with this approach, fit in well with this approach, but strategies around social media, search but strategies around social media, search

marketing, behavioral targeted advertising, marketing, behavioral targeted advertising, and the like can help marketers target better and the like can help marketers target better defined audiences and engage with them on a defined audiences and engage with them on a more personal level.more personal level.

Emerging Trends in Consumer Emerging Trends in Consumer Use of New Media and Use of New Media and Technology for HealthTechnology for Health


Emerging Trends in Consumer Use of Emerging Trends in Consumer Use of New Media and Technology for HealthNew Media and Technology for Health


Following are the new trends useful for Following are the new trends useful for

marketing healthcare products to the doctors as marketing healthcare products to the doctors as

well as the end-user – the patients.well as the end-user – the patients.

1.1. Franchisee and PDCFranchisee and PDC

2.2. E detailing and E detailing and Laptop Laptop

3.3. OTC MarketingOTC Marketing

4.4. DTC AdvertisingDTC Advertising

5.5. Brand ambassador Brand ambassador

6.6. Local radio, TV, Local radio, TV, cinemacinema

7.7. Evolving Use of TV, Evolving Use of TV, DVR, and Online DVR, and Online VideoVideo

8.8. InternetInternet9.9. Patients Engaging in Patients Engaging in

Web for Health.Web for Health.10.10. Going Mobile for Going Mobile for

HealthHealth

Emerging Trends in Consumer Use of Emerging Trends in Consumer Use of New Media and Technology for HealthNew Media and Technology for Health


1.1. TelemarketingTelemarketing2.2. Electronic Marketing -Electronic Marketing -

websites, the internet, websites, the internet, email, CD-ROM's, email, CD-ROM's, DVD's, etcDVD's, etc

3.3. Direct MarketingDirect Marketing4.4. Direct mailDirect mail5.5. Display advertisingDisplay advertising6.6. Directories - Yellow Directories - Yellow

Pages and internetPages and internet7.7. Brochures, leaflets and Brochures, leaflets and

printed materialprinted material8.8. 'Door to door' leaflets 'Door to door' leaflets

and advertising and advertising distributiondistribution

9.9. Posters sites and Posters sites and hoardingshoardings

10.10. Viral MarketingViral Marketing

11.11. Word of mouthWord of mouth12.12. Networking and clubsNetworking and clubs13.13. TelemarketingTelemarketing14.14. eMarketingeMarketing15.15. Guide books, hand-Guide books, hand-

books and newslettersbooks and newsletters16.16. Internet Marketing and Internet Marketing and

Promotion: Internet Promotion: Internet Advertising.Advertising.

17.17. Press And Public Press And Public RelationsRelations

18.18. Mergers & AcquisitionsMergers & Acquisitions19.19. Emerging Markets Emerging Markets 20.20. Open days and Open days and

exhibitionsexhibitions

1) Franchisee and Propaganda cum 1) Franchisee and Propaganda cum DistributionDistribution


Franchisee or PDC is not new to the pharma Franchisee or PDC is not new to the pharma

Industry, it has being operating for decades .Industry, it has being operating for decades .

In this system The marketing co. takes the right In this system The marketing co. takes the right

from the manufacturing co. to market its brands to from the manufacturing co. to market its brands to

the given territory or regionthe given territory or region

Or A marketing co. give rights to markets its brand Or A marketing co. give rights to markets its brand

to the third party for a given territory or a to the third party for a given territory or a

particular region.particular region.

Alembic has give its franchisee to four co. for Alembic has give its franchisee to four co. for

west, north, south and east. west, north, south and east.

2) E- Detailing 2) E- Detailing


Electronic detailing with the help of laptop is a new Electronic detailing with the help of laptop is a new

immerging trend to attract the doctors attentions.immerging trend to attract the doctors attentions.

Mostly it is done by the ASM and the above level as Mostly it is done by the ASM and the above level as

distributing laptops to all the field force is a costly distributing laptops to all the field force is a costly

affairs.affairs.

The marketing team can have animations and more The marketing team can have animations and more

scientific detailing to explain complex issue.scientific detailing to explain complex issue.

3) OTC3) OTC


In last 4-5 years we have seen many prescriptions In last 4-5 years we have seen many prescriptions

products are available over the counter – Crocin, products are available over the counter – Crocin,

Benadryl, etc.Benadryl, etc.

Even neutraceuticals products like food supplements Even neutraceuticals products like food supplements

and antioxidants are available without prescriptions.and antioxidants are available without prescriptions.

OTC is a huge market wherein the communications OTC is a huge market wherein the communications

strategy should be two fold catering the prescribing strategy should be two fold catering the prescribing

customers – doctors as well as the end-user.customers – doctors as well as the end-user.

4) DTC4) DTC


Direct to the customers is again the latest trend Direct to the customers is again the latest trend

specially for the non prescriptions product.specially for the non prescriptions product.

Various medium can be used to market the Various medium can be used to market the

pharma product directly to the customers like- TV, pharma product directly to the customers like- TV,

Radio, Website, Mailers, Email, online shopping Radio, Website, Mailers, Email, online shopping

etc.etc.

5) Brand ambassador5) Brand ambassador


Healthcare industry has also started to rely on the Healthcare industry has also started to rely on the

brand ambassador .brand ambassador .

Brand ambassador is a person well know Brand ambassador is a person well know

personality / celebrities either from films or sports.personality / celebrities either from films or sports.

E.g. Amitab Bachan for Himalaya , Jagjit Singh for E.g. Amitab Bachan for Himalaya , Jagjit Singh for

Torrent –Torex Torrent –Torex

6) Local radio, TV, cinema6) Local radio, TV, cinema


Other forms of targeted media advertising, are Other forms of targeted media advertising, are

TV and radio especially FM radio are increasingly TV and radio especially FM radio are increasingly

used by smaller haelthcare industry specially used by smaller haelthcare industry specially

clinics like- Batra Homeopathic and VLCL clinics like- Batra Homeopathic and VLCL

Cost of production can be a significant factor.Cost of production can be a significant factor.

7) Evolving Use of TV, DVR, and Online 7) Evolving Use of TV, DVR, and Online VideoVideo


Digital video recording, faster broadband Digital video recording, faster broadband speeds, and an increase in rich media content speeds, and an increase in rich media content have transformed the way that consumers have transformed the way that consumers obtain news, entertainment, and information. obtain news, entertainment, and information.

Less than half of U.S. adults watch all of their Less than half of U.S. adults watch all of their television programs live when it airs , patients television programs live when it airs , patients are watching streaming or downloaded TV are watching streaming or downloaded TV programs on the Internet. programs on the Internet.

Some brand teams are starting to experiment Some brand teams are starting to experiment with online video and other rich media with online video and other rich media promotionpromotion

But digital marketing faces the same regulatory But digital marketing faces the same regulatory challenges as other forms of DTC advertising.challenges as other forms of DTC advertising.

8) Internet 8) Internet


Producing your own information and managing Producing your own information and managing

e-commerce on the internet is now viable for e-commerce on the internet is now viable for

even very small businesses. even very small businesses.

For consumer businesses especially OTC For consumer businesses especially OTC

products , food supplement, antioxidants the products , food supplement, antioxidants the

on-line shopping boom began several years ago on-line shopping boom began several years ago

If you are supplying consumer products that can If you are supplying consumer products that can

be shipped easily through the post or a carrier be shipped easily through the post or a carrier

online shopping is the best options.online shopping is the best options.

9) Patients Engaging in Web for 9) Patients Engaging in Web for HealthHealth


Over 60 million U.S. adults are using social media Over 60 million U.S. adults are using social media applications for healthcare and medical purposes. applications for healthcare and medical purposes.

These outlets have become important resources These outlets have become important resources for patients and caregivers for for patients and caregivers for seeking to connect with others for advice and seeking to connect with others for advice and

treatment experiencestreatment experiences offering a convenient and – to an extent – offering a convenient and – to an extent –

anonymous way to connect with others dealing anonymous way to connect with others dealing with similar conditions. with similar conditions.

Popular activities include Popular activities include visiting health-related message boardsvisiting health-related message boards reading and contributing to health blogs,reading and contributing to health blogs, posting health content online,posting health content online, using online patient support groups.using online patient support groups.

Patients Engaging in Web for Health Patients Engaging in Web for Health contdcontd..


Growing number of patients which are rating Growing number of patients which are rating prescription drugs and treatments on sites like prescription drugs and treatments on sites like iGuard.org,iGuard.org, DailyStrength.org,DailyStrength.org, PatientsLikeMe,PatientsLikeMe, WebMD. WebMD.

A visit to DailyStrength.org reveals almost A visit to DailyStrength.org reveals almost nine thousand reviews of Zoloftnine thousand reviews of Zoloft over five and a half thousand reviews of over five and a half thousand reviews of

Seroquel Seroquel This shows how important it is for companies to This shows how important it is for companies to

consider how to best monitor, solicit, or respond consider how to best monitor, solicit, or respond to reviews and comments in these forums.to reviews and comments in these forums.













10) Going Mobile for Health10) Going Mobile for Health


Consumers using mobile devices to manage their Consumers using mobile devices to manage their healthcare are still early adopters, but are healthcare are still early adopters, but are increasing in number - over 10 million U.S. adults increasing in number - over 10 million U.S. adults currently use their cell phones and smartphones currently use their cell phones and smartphones to look up health and medical information.to look up health and medical information.

Many advertisers, especially those in pharma, Many advertisers, especially those in pharma, have been wary about jumping full force into the have been wary about jumping full force into the mobile marketing arenamobile marketing arena

But due to growing market and new platforms But due to growing market and new platforms major players like Research in Motion and Apple major players like Research in Motion and Apple are opening up new ways to engage with are opening up new ways to engage with consumers in the space. consumers in the space.

But opportunities do exist for innovative But opportunities do exist for innovative marketers - especially for chronic diseases .marketers - especially for chronic diseases .

11) Telemarketing11) Telemarketing


Using telemarketing staff or a telemarketing agency is a Using telemarketing staff or a telemarketing agency is a

proven method of marketing. proven method of marketing.

If well-managed, telemarketing can be an extremely good If well-managed, telemarketing can be an extremely good

and cost-effective method for generating sales enquiries, and cost-effective method for generating sales enquiries,

selling products and services and making appointments for selling products and services and making appointments for

sales staff. sales staff.

A good CRM computer system to manage lists, data, follow-A good CRM computer system to manage lists, data, follow-

up and outcomes, is normally essential for telemarketingup and outcomes, is normally essential for telemarketing

12) Online and electronic media12) Online and electronic media


Online and electronic media are fast becoming the most Online and electronic media are fast becoming the most flexible and dynamic advertising methods of all. flexible and dynamic advertising methods of all.

Conventional printed sales and marketing materials of all Conventional printed sales and marketing materials of all types (from newspapers and magazines, to brochures and types (from newspapers and magazines, to brochures and business cards) are becoming obsolete as customers look business cards) are becoming obsolete as customers look to the internet (via phones, pc's, laptops, PDA's and in to the internet (via phones, pc's, laptops, PDA's and in the future TV too) for quick, up-to-the-minute information the future TV too) for quick, up-to-the-minute information about products, services and suppliers of all sorts.about products, services and suppliers of all sorts.

As people's use of the internet increases, so does the As people's use of the internet increases, so does the internet's potency as a vehicle for advertising and internet's potency as a vehicle for advertising and marketing too.marketing too.

As the internet extends progressively to mobile phones As the internet extends progressively to mobile phones and hand-held devices (PDA's - Personal Digital and hand-held devices (PDA's - Personal Digital Assistants), the opportunity and necessity to make use of Assistants), the opportunity and necessity to make use of online and web-related marketing methods becomes online and web-related marketing methods becomes increasingly irresistible. increasingly irresistible.

13) Internet and Email13) Internet and Email


The internet and email provide unprecedented The internet and email provide unprecedented opportunity for radically new methods of opportunity for radically new methods of promotion and advertising, such as promotion and advertising, such as Viral marketingViral marketing RSS (Really Simple Syndication) of educationalRSS (Really Simple Syndication) of educational informative articlesinformative articles NewsgroupsNewsgroups ForumsForums email newsletters and campaignsemail newsletters and campaigns Internet listingsInternet listings internet directories advertisinginternet directories advertising 'pay-per-click' advertising'pay-per-click' advertising many other new ideasmany other new ideas

14) Basic Digital Marketing 14) Basic Digital Marketing methodmethod


Modern and emerging digital and web-related Modern and emerging digital and web-related advertising marketing methods offer audience advertising marketing methods offer audience 'reach', precision of targeting, level of fine-tuning 'reach', precision of targeting, level of fine-tuning and control, measurement and analysis, and cost-and control, measurement and analysis, and cost-effectiveness that conventional advertising media effectiveness that conventional advertising media simply cannot match.simply cannot match.

Aside from the more complex functionality of Aside from the more complex functionality of modern digital marketing methods, at a basic level,modern digital marketing methods, at a basic level, WebsitesWebsites CD ROM'sCD ROM's DVD's DVD's

These are of the same origination and set-up, very These are of the same origination and set-up, very feasible user-friendly, inter-active digital format and feasible user-friendly, inter-active digital format and sensible to produce all sales literature and brochures sensible to produce all sales literature and brochures etc.etc.

15) Display advertising15) Display advertising


Display advertisement is different from classified Display advertisement is different from classified advertisementadvertisement

It is taking of advertising space in the editorial sections of It is taking of advertising space in the editorial sections of magazines or newspapers, as opposed to the classified magazines or newspapers, as opposed to the classified sections, which are a less expensive, and generally lower sections, which are a less expensive, and generally lower performing method. performing method.

The publications provides their 'Media Pack', which gives The publications provides their 'Media Pack', which gives full details of all the types of display advertising available, full details of all the types of display advertising available, for how much, together with schemes etc. Info about their for how much, together with schemes etc. Info about their readership profile and circulation. readership profile and circulation.

For good response ratesFor good response rates Distributions of Free coupon etc. Distributions of Free coupon etc. Free-phone telephone numbersFree-phone telephone numbers Free-post addresses .Free-post addresses .

Display advertising is concerned with image-building and Display advertising is concerned with image-building and creating awareness. creating awareness.

16) Directories - Yellow Pages 16) Directories - Yellow Pages


A business telephone line normally gives free Yellow A business telephone line normally gives free Yellow

Pages under a single classification. Pages under a single classification.

Directories Books are published annually, at different Directories Books are published annually, at different

dates throughout the country. dates throughout the country.

These directories are often good ways to generate These directories are often good ways to generate

enquiries for consumer businesses, but are not enquiries for consumer businesses, but are not

appropriate for all types of business-to-business appropriate for all types of business-to-business

sectors. sectors.

17) Directories - internet17) Directories - internet


Internet directories and specialist search engines Internet directories and specialist search engines

are an increasingly effective way to advertise and are an increasingly effective way to advertise and

market your services, because so many market your services, because so many

customers now use these listings to find customers now use these listings to find

suppliers. suppliers.

18) Brochures, leaflets and printed 18) Brochures, leaflets and printed materialmaterial


Brochures and leaflets can be used for a variety of Brochures and leaflets can be used for a variety of

purposes, and can be distributed in different purposes, and can be distributed in different

ways. ways.

The aim of a brochure is foremost to generate The aim of a brochure is foremost to generate

new business through providing information in a new business through providing information in a

way that appeals to the reader.way that appeals to the reader.

19) 'Door to door' leaflets and advertising 19) 'Door to door' leaflets and advertising distributiondistribution


Large quantity leaflet drops to consumer Large quantity leaflet drops to consumer

households and business addresses, without the households and business addresses, without the

need for envelopes or normal postal charges, need for envelopes or normal postal charges,

through postal servicesthrough postal services

The leaflet is delivered during the normal post, or The leaflet is delivered during the normal post, or

at other times of the day if required. at other times of the day if required.

Demographic targeting, based on postcodes and Demographic targeting, based on postcodes and

population census data is possible. population census data is possible.

Other specialised household distributors provide Other specialised household distributors provide

similar services, sometimes incorporated within similar services, sometimes incorporated within

local newspaper deliveries. local newspaper deliveries.

20) Posters sites (hoardings)20) Posters sites (hoardings)


For advertising considered as public information a For advertising considered as public information a variety of poster sites are free for NGOs and Govt.variety of poster sites are free for NGOs and Govt.

Paid sites are available along roadside hoardings, Paid sites are available along roadside hoardings, buses, taxis, Railways platform, Train , sports buses, taxis, Railways platform, Train , sports grounds etc. grounds etc.

Anywhere that people pass or gather in large Anywhere that people pass or gather in large numbers is a potential poster site, and as with numbers is a potential poster site, and as with printed media, audience profile information is printed media, audience profile information is usually available. usually available.

New sites are being discovered and exploited all the New sites are being discovered and exploited all the time, such as time, such as Supermarket trolleys and floorsSupermarket trolleys and floors Table napkinsTable napkins Public conveniencesPublic conveniences The media extends now into continuous video at The media extends now into continuous video at

post offices and railway stations and airport etc.post offices and railway stations and airport etc.

21) Open days and exhibitions21) Open days and exhibitions


The advantage of personal contact , talk to your The advantage of personal contact , talk to your

potential customers, dramatically increases the potential customers, dramatically increases the

chances of getting your message across. chances of getting your message across.

But there is a limit to how many people you can But there is a limit to how many people you can

target and access using these methods. target and access using these methods.

Events of this nature offer good possibilities for Events of this nature offer good possibilities for

follow-up PR activity, which can contribute greatly follow-up PR activity, which can contribute greatly

to building a customer-friendly image.to building a customer-friendly image.

22) Social Media Pharma 22) Social Media Pharma MarketingMarketing


It is generally agreed that the return on It is generally agreed that the return on investments (ROI) for traditional media like print investments (ROI) for traditional media like print and TV is declining. and TV is declining.

A new approach in pharma marketing is needed A new approach in pharma marketing is needed and is actively being pursued by pharma and is actively being pursued by pharma marketers and their ad agencies. marketers and their ad agencies.

These new tools - lumped under the heading These new tools - lumped under the heading "social networking“ are big topics of discussion at "social networking“ are big topics of discussion at many pharmaceutical marketing conferences. many pharmaceutical marketing conferences.

The question is, will pharma marketers embrace The question is, will pharma marketers embrace them, learn how to use them, and will they see them, learn how to use them, and will they see benefits? benefits?

23) Mergers & Acquisitions23) Mergers & Acquisitions


The generic pharmaceutical sector has witnessed The generic pharmaceutical sector has witnessed an unprecedented level of mergers & acquisitions an unprecedented level of mergers & acquisitions (M&A) activity in recent years. (M&A) activity in recent years.

Companies are engaging in merger activity to Companies are engaging in merger activity to strengthen their strategic positioning in response strengthen their strategic positioning in response to the changing competitive landscape in the to the changing competitive landscape in the industry. industry.

In a growing global generic market, having In a growing global generic market, having adequate scale and financial strength will be key adequate scale and financial strength will be key attributes to manage attributes to manage Pressure on pricing and marginsPressure on pricing and margins Capture growth opportunities globallyCapture growth opportunities globally Establish a competitive cost baseEstablish a competitive cost base Able to pursue high valueAble to pursue high value

24) Sales Promotion.24) Sales Promotion.

Sales promotionSales promotion


Sales promotion is any initiative undertaken by an Sales promotion is any initiative undertaken by an

organisation to promote an increase in sales, usage or organisation to promote an increase in sales, usage or

trial of a product or service trial of a product or service

i.e. initiatives that are not covered by the other i.e. initiatives that are not covered by the other

elements of the marketing communications or elements of the marketing communications or

promotions mix. promotions mix.

Sales promotions are varied. Sales promotions are varied.

E.g. of some popular sales promotions activities:E.g. of some popular sales promotions activities:

Sales promotion Sales promotion contdcontd..


1) Buy-One-Get-One-Free (BOGOF)1) Buy-One-Get-One-Free (BOGOF)

Which is an example of a self-liquidating promotion. Which is an example of a self-liquidating promotion.

For example if a loaf of bread is priced at Re. 7, and For example if a loaf of bread is priced at Re. 7, and

cost Re. 1 to manufacture, if you sell two for Re 7, you cost Re. 1 to manufacture, if you sell two for Re 7, you

are still in profit - especially if there is a corresponding are still in profit - especially if there is a corresponding

increase in sales. increase in sales.

This is known as a PREMIUM sales promotion tactic.This is known as a PREMIUM sales promotion tactic.

2) Customer Relationship Management (CRM) incentives 2) Customer Relationship Management (CRM) incentives

Such as bonus points or money off coupons. Such as bonus points or money off coupons.

There are many examples of CRM, from banks to There are many examples of CRM, from banks to

supermarkets.supermarkets.



3) Merchandising additions 3) Merchandising additions such as dump bins, point-of-sale materials and such as dump bins, point-of-sale materials and

product demonstrations.product demonstrations.

4) Free gifts 4) Free gifts e.g. Subway gave away a card with six spaces for e.g. Subway gave away a card with six spaces for

stickers with each sandwich purchase. Once the card stickers with each sandwich purchase. Once the card was full the consumer was given a free sandwich. was full the consumer was given a free sandwich.

5) Discounted prices 5) Discounted prices e.g. Budget airline such as Goair /air deccan , e-mail e.g. Budget airline such as Goair /air deccan , e-mail

their customers with the latest low-price deals once their customers with the latest low-price deals once new flights are released, or additional destinations new flights are released, or additional destinations are announced.are announced.

6) Vouchers and coupons, 6) Vouchers and coupons, often seen in newspapers and often seen in newspapers and magazines, on packs.magazines, on packs.



7) New media - Websites and mobile phones that support 7) New media - Websites and mobile phones that support

a sales promotion. a sales promotion.

Nestle printed individual codes on KIT-KAT packaging, Nestle printed individual codes on KIT-KAT packaging,

whereby a consumer would enter the code into a whereby a consumer would enter the code into a

dynamic website to see if they had won a prize. dynamic website to see if they had won a prize.

Consumers could also text codes via their mobile Consumers could also text codes via their mobile

phones to the same effect.phones to the same effect.

8) Joint promotions 8) Joint promotions between brands owned by a company, between brands owned by a company,

or with another company's brands. or with another company's brands.

For example fast food restaurants often run sales For example fast food restaurants often run sales

promotions where toys, relating to a specific movie promotions where toys, relating to a specific movie

release, are given away with promoted meals.release, are given away with promoted meals.



9) Free samples 9) Free samples (aka. sampling) e.g. tasting of food and drink (aka. sampling) e.g. tasting of food and drink

at sampling points in supermarkets. For example Red Bull at sampling points in supermarkets. For example Red Bull

(a caffeinated fizzy drink) was given away to potential (a caffeinated fizzy drink) was given away to potential

consumers at supermarkets, in high streets and at petrol consumers at supermarkets, in high streets and at petrol

stations (by a promotions team).stations (by a promotions team).

10) Competitions and prize draws, 10) Competitions and prize draws, in newspapers, magazines, in newspapers, magazines,

on the TV and radio, on The Internet, and on packs.on the TV and radio, on The Internet, and on packs.

11) Cause-related and fair-trade products 11) Cause-related and fair-trade products that raise money for that raise money for

charities, and the less well off farmers and producers, are charities, and the less well off farmers and producers, are

becoming more popular.becoming more popular.

12) Finance deals 12) Finance deals - 0% finance over 3 years on selected - 0% finance over 3 years on selected

vehicles.vehicles.



Many of the examples above are focused upon Many of the examples above are focused upon consumers. Don't forget that promotions can be consumers. Don't forget that promotions can be aimed at wholesales and distributors as well. aimed at wholesales and distributors as well. These are known as Trade Sales These are known as Trade Sales

Promotions. Promotions. E.g. it might include joint promotions between a E.g. it might include joint promotions between a

manufacturer and a distributor,manufacturer and a distributor, sales promotion leaflets and other materials sales promotion leaflets and other materials

(such as T-shirts),(such as T-shirts), incentives for distributor sales people and incentives for distributor sales people and

their retail clients.their retail clients.

25) eMarketing25) eMarketing

eMarketingeMarketing


eMarketing is essentially part of marketing. eMarketing is essentially part of marketing. The American Marketing Association (AMA) definition (2004) The American Marketing Association (AMA) definition (2004)

is as follows:is as follows: Marketing is an organizational function and a set of Marketing is an organizational function and a set of

processes for creating, communicating and delivering value processes for creating, communicating and delivering value to customers and for managing customer relationships in to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.ways that benefit the organization and its stakeholders.

Therefore eMarketing by its very nature is one aspect of an Therefore eMarketing by its very nature is one aspect of an organizational function and a set of processes for creating, organizational function and a set of processes for creating, communicating and delivering value to customers and for communicating and delivering value to customers and for managing customer relationships in ways that benefit the managing customer relationships in ways that benefit the organization and its stakeholders. organization and its stakeholders.

As such an aspect, eMarketing has its own approaches and As such an aspect, eMarketing has its own approaches and tools that contribute to the achievement of marketing goals tools that contribute to the achievement of marketing goals and objectives.and objectives.

This also helps us to differentiate between eMarketing and E-This also helps us to differentiate between eMarketing and E-commerce, since E-Commerce is simply buying and selling commerce, since E-Commerce is simply buying and selling online.online.

Difference between eMarketing and Difference between eMarketing and internet or web marketinginternet or web marketing


There is no real difference between eMarketing and internet There is no real difference between eMarketing and internet or web marketing. or web marketing.

However, with the arrival of mobile technologies such as However, with the arrival of mobile technologies such as PDA's and 3G mobile phones, as well as Interactive PDA's and 3G mobile phones, as well as Interactive Television, both terms tend to be stretched to include these Television, both terms tend to be stretched to include these new media technologies. new media technologies.

On the other hand, others would see eMarketing and On the other hand, others would see eMarketing and internet or web marketing as subtly different, for example internet or web marketing as subtly different, for example Chaffey (below):Chaffey (below): internet internet [or web][or web] marketing is achieving marketing marketing is achieving marketing

objectives through applying digital technologies. objectives through applying digital technologies. (Chaffey (Chaffey 2006)2006)

eMarketing is achieving marketing objectives through use eMarketing is achieving marketing objectives through use of electronic communications technology. of electronic communications technology. (Chaffey 2006)(Chaffey 2006)

Whilst this distinction is wholly acceptable, it is difficult to Whilst this distinction is wholly acceptable, it is difficult to see where the distinction lies between digital technologies see where the distinction lies between digital technologies and electronic communications technologies, especially with and electronic communications technologies, especially with the convergence of technologies such as mobile devices.the convergence of technologies such as mobile devices.

eMarketing toolseMarketing tools


The Internet has a number of tools to offer to the The Internet has a number of tools to offer to the marketer. marketer.

1.1. A company can distribute via the Internet e.g. A company can distribute via the Internet e.g. Amazon.com. Amazon.com.

2.2. A company can use the Internet as a way of building A company can use the Internet as a way of building and maintaining a customer relationship e.g. and maintaining a customer relationship e.g. Dell.com. Dell.com.

3.3. Money collection part of a transaction could be done Money collection part of a transaction could be done online e.g. electricity and telephone bills. online e.g. electricity and telephone bills.

4.4. Leads can be generated by attracting potential Leads can be generated by attracting potential customers to sign-up for short periods of time, before customers to sign-up for short periods of time, before signing up for the long-term. signing up for the long-term.

5.5. The Internet could be used for advertising e.g. Google The Internet could be used for advertising e.g. Google Adwords. Adwords.

6.6. The web can be used as a way of collecting direct The web can be used as a way of collecting direct responses e.g. as part of a voting system for a game responses e.g. as part of a voting system for a game show. show.

Marketers plan for eMarketingMarketers plan for eMarketing


There are two ways of looking at this.There are two ways of looking at this.

1.1. An existing organization may embark upon some An existing organization may embark upon some eMarketing as part of their marketing plan. eMarketing as part of their marketing plan.

2.2. An organization trades solely on the Internet and so their An organization trades solely on the Internet and so their marketing plan focuses purely on eMarketing. marketing plan focuses purely on eMarketing.

The marketing plan in either case is the next step, The marketing plan in either case is the next step, whether focused upon eMarketing or all marketing. whether focused upon eMarketing or all marketing.

eMarketing plan - acronym AOSTC .eMarketing plan - acronym AOSTC . A - Audit - An audit of internal strengths and A - Audit - An audit of internal strengths and

weaknesses, an external opportunities and threats. weaknesses, an external opportunities and threats. O - Objectives - eMarketing objectives. O - Objectives - eMarketing objectives. S - Strategy - eMarketing strategies. S - Strategy - eMarketing strategies. T - Tactics - an eMarketing mix. T - Tactics - an eMarketing mix. C - Controls - measuring the performance of our C - Controls - measuring the performance of our

eMarketing plan.eMarketing plan.

eMarketing MixeMarketing Mix

eMarketing MixeMarketing Mix


The The eMarketing MixeMarketing Mix is essentially the same as the is essentially the same as the marketing mix. marketing mix.

It is simply the adaptation of price, place, product It is simply the adaptation of price, place, product and promotion to the eMarketing context. and promotion to the eMarketing context.

Of course one could also include physical evidence, Of course one could also include physical evidence, people and process when marketing planning for people and process when marketing planning for an online service. an online service.

eMarketing PriceeMarketing Price The Internet has influenced how online businesses The Internet has influenced how online businesses

price in a number of ways. price in a number of ways. eMarketing PlaceeMarketing Place Internet is an additional channel that enhances or Internet is an additional channel that enhances or

replaces their traditional channel(s) or replaces their traditional channel(s) or placeplace. .

eMarketing Mix eMarketing Mix contdcontd..


eMarketing ProducteMarketing Product

Tools for product decision-making - Product Life Cycle (PLC)Tools for product decision-making - Product Life Cycle (PLC)

eMarketing PromotioneMarketing Promotion

Ways of increasing the popularity of your website by Ways of increasing the popularity of your website by

looking at the internal optimization of the website itself. looking at the internal optimization of the website itself.

It considers many important ways of building your traffic, It considers many important ways of building your traffic,

including Search Engine Optimization (SEO) approaches. including Search Engine Optimization (SEO) approaches.

26) Internet Marketing and 26) Internet Marketing and Promotion: Internet Promotion: Internet

Advertising.Advertising.

Pay-Per-Click Advertising - Google Pay-Per-Click Advertising - Google Adwords.Adwords.


Adwords and Overture and YahooAdwords and Overture and Yahoo Adwords is a very targeted and controllable way of Adwords is a very targeted and controllable way of

online advertising - hence the huge rises in income online advertising - hence the huge rises in income and profit for Google over recent times. and profit for Google over recent times.

Overture is the Yahoo equivalent of Google's Overture is the Yahoo equivalent of Google's Adwords. Adwords.

Google Adwords is a cost-per-click (CPC) online Google Adwords is a cost-per-click (CPC) online advertising program. advertising program.

It means that you decide upon a keyword that It means that you decide upon a keyword that relates closely to your product or service.relates closely to your product or service.

Using Google's tools, you price how much it would Using Google's tools, you price how much it would cost your per-click for your chosen keyword. cost your per-click for your chosen keyword.

Pay-Per-Click Advertising Pay-Per-Click Advertising contdcontd..


You can allocate a budget, and pay Google by credit You can allocate a budget, and pay Google by credit card. card.

You can control the length of your campaign, or end it You can control the length of your campaign, or end it as soon as the money runs out. as soon as the money runs out.

Adverts appear alongside Google search results - so Adverts appear alongside Google search results - so go to Google and search for 'marketing.' The ad's go to Google and search for 'marketing.' The ad's appearing along side the main search results are CPC. appearing along side the main search results are CPC.

Ad's also appear on selected content websites Ad's also appear on selected content websites You only pay for adverts that get clicked - not for You only pay for adverts that get clicked - not for

page views - so you pay nothing if your advert is page views - so you pay nothing if your advert is simply viewed. simply viewed.

There is also an opportunity for 'Smart Pricing' There is also an opportunity for 'Smart Pricing' whereby you pay more for the advert if a sale is whereby you pay more for the advert if a sale is guaranteedguaranteed

Affiliate Marketing.Affiliate Marketing.


Affiliate Marketing is where an organization offers Affiliate Marketing is where an organization offers and incentive to other web-based organizations to and incentive to other web-based organizations to market the products or services that it offers. market the products or services that it offers.

So a company selling surfboards could have an So a company selling surfboards could have an affiliate program that is offered to other web-affiliate program that is offered to other web-based organizations that offer information on based organizations that offer information on surfing destinations. surfing destinations.

The affiliate program is supplied by one The affiliate program is supplied by one organization - whereas the 'affiliate' is the website organization - whereas the 'affiliate' is the website that promotes on behalf of the supplying that promotes on behalf of the supplying organization. organization.

Affiliate marketing is a basic agency arrangement. Affiliate marketing is a basic agency arrangement. There is rarely any pay-per-click cash, but affiliates There is rarely any pay-per-click cash, but affiliates take a commission on any goods sold as a result of take a commission on any goods sold as a result of the click. the click.

Affiliate Marketing. Affiliate Marketing. ContdContd..


Affiliate marketing sees a banners advert or a text Affiliate marketing sees a banners advert or a text

advert placed upon an affiliate's website. advert placed upon an affiliate's website.

When the advert attracts a click, the visitor is taken When the advert attracts a click, the visitor is taken

through to the site that originated the affiliate through to the site that originated the affiliate

program. program.

No cash changes hands until there is a sale, but No cash changes hands until there is a sale, but

affiliate rewards tend to be higher than regular pay-affiliate rewards tend to be higher than regular pay-

per-click. per-click.

Offline Promotions Strategies.Offline Promotions Strategies.


Suitable approaches to offline promotion:Suitable approaches to offline promotion: Create a media release or announce a media Create a media release or announce a media

conference regarding your website. conference regarding your website. Advertise using other media such as TV, billboards, Advertise using other media such as TV, billboards,

radio, newspapers and magazines, or the cinema. radio, newspapers and magazines, or the cinema. Send out direct mail shots and run campaigns. Send out direct mail shots and run campaigns. Print your domain name and e-mail contact Print your domain name and e-mail contact

addresses upon all of your corporate material. addresses upon all of your corporate material. Offer free products and services. FREE is one of the Offer free products and services. FREE is one of the

most powerful words in marketing. most powerful words in marketing. Provide free material e.g. fact sheets or guides that Provide free material e.g. fact sheets or guides that

could be posted or e-mailed to customers. could be posted or e-mailed to customers. Offer competitions or quizzes (with prizes when Offer competitions or quizzes (with prizes when

possible). possible). And many, many others . . . And many, many others . . .

27) Emerging Markets27) Emerging Markets


India's pharmaceutical sector is currently India's pharmaceutical sector is currently undergoing unprecedented change. undergoing unprecedented change.

Much of this is due to the country's introduction, on Much of this is due to the country's introduction, on 1st January, 2005, of a system of product patents. 1st January, 2005, of a system of product patents.

A further huge boost to the local market is A further huge boost to the local market is emerging from the rise of India's new affluent emerging from the rise of India's new affluent consumers, who lead more Western-style lives and consumers, who lead more Western-style lives and are demanding innovative drugs to treat the chronic are demanding innovative drugs to treat the chronic illnesses that these changing lifestyles may illnesses that these changing lifestyles may produce. produce.

India's leading drug manufacturers are becoming India's leading drug manufacturers are becoming global players, utilising both organic growth, global players, utilising both organic growth, through the gradual development of their business, through the gradual development of their business, and mergers and acquisitions as they seek to boost and mergers and acquisitions as they seek to boost their presence in existing markets and open up new their presence in existing markets and open up new ones. ones.

28) Press And Public Relations 28) Press And Public Relations (PR)(PR)

Press And Public Relations (PR)Press And Public Relations (PR)


The press release is the most under-rated form of The press release is the most under-rated form of advertising. advertising. Because it's freeBecause it's free

PR is a single, broad concept. It is broad since it PR is a single, broad concept. It is broad since it contains so many elements.contains so many elements.

PR are any purposeful communications between PR are any purposeful communications between an organisation and its publics that aim to an organisation and its publics that aim to generate goodwill. generate goodwill.

Publics, put simply, are its stakeholders. Publics, put simply, are its stakeholders. PR is proactive and future orientated, and has the PR is proactive and future orientated, and has the

goal of building and maintaining a positive goal of building and maintaining a positive perception of an organisation in the mind of its perception of an organisation in the mind of its publics. publics. This is often referred to as goodwill.This is often referred to as goodwill.

Public Relations (PR)Public Relations (PR)


It is difficult to pin point the difference between It is difficult to pin point the difference between marketing communications and PR since there is marketing communications and PR since there is a lot of crossover. a lot of crossover.

This makes it a tricky concept to learn. This makes it a tricky concept to learn. PR is often expensive, and not free, as some PR is often expensive, and not free, as some

definitions would have you believe. definitions would have you believe. PR agencies are not cheap. PR agencies are not cheap. Below are some of the approaches that are often Below are some of the approaches that are often

considered under the PR banner.considered under the PR banner.

1.1. Interviews and photo-calls.Interviews and photo-calls.

2.2. Speeches, presentations and speech writing.Speeches, presentations and speech writing.

3.3. Corporate literature e.g. financial reports.Corporate literature e.g. financial reports.

4.4. SeminarsSeminars


Interviews and photo-calls.Interviews and photo-calls.


It is important that company executives are available to It is important that company executives are available to

generate goodwill for their organisation. generate goodwill for their organisation.

Many undertake training in how to deal with the media, Many undertake training in how to deal with the media,

and how to behave in front of a camera. and how to behave in front of a camera.

There are many key industrial figures that proactively There are many key industrial figures that proactively

deal with the media in a positive way for E.g. Bill Gates deal with the media in a positive way for E.g. Bill Gates

(Microsoft) . (Microsoft) .

Interviews with the business or mass media give the Interviews with the business or mass media give the

opportunity to the company to put its own perspective / opportunity to the company to put its own perspective /

view on matters that could be misleading if simply left view on matters that could be misleading if simply left

untended for the public domain.untended for the public domain.

Speeches, presentations and speech Speeches, presentations and speech writing.writing.


Key figures from within an organisation will write Key figures from within an organisation will write

speeches to be delivered at corporate events, speeches to be delivered at corporate events,

public awards and industry gatherings. public awards and industry gatherings.

PR company officials in liaison with company PR company officials in liaison with company

managers often write speeches and design managers often write speeches and design

corporate presentations. corporate presentations.

They are part of the planned and coherent strategy They are part of the planned and coherent strategy

to build goodwill with publics. to build goodwill with publics.

Presentations can be designed and pre-prepared by Presentations can be designed and pre-prepared by

PR companies, ultimately to be delivered by PR companies, ultimately to be delivered by

company executives.company executives.

Corporate literature e.g. financial Corporate literature e.g. financial reports.reports.


Corporate literature includes Corporate literature includes Financial reportsFinancial reports In-house magazinesIn-house magazines BrochuresBrochures CataloguesCatalogues Price listsPrice lists Any other piece of corporate derived literature. Any other piece of corporate derived literature.

They communicate with a variety of publics. For They communicate with a variety of publics. For e.g. financial reports will be of great interest to e.g. financial reports will be of great interest to investors and the stock market, since they give all investors and the stock market, since they give all sorts of indicators of the health of a business. sorts of indicators of the health of a business.

A company CEO will often write the forward to an A company CEO will often write the forward to an annual financial report where he or she has the annual financial report where he or she has the opportunity to put a business case to the reader. opportunity to put a business case to the reader.

SeminarsSeminars


Creating an informative seminar and inviting target Creating an informative seminar and inviting target

audience is an excellent way to educate the market audience is an excellent way to educate the market

and promote your company and proposition. and promote your company and proposition.

This method works especially well in the business-to-This method works especially well in the business-to-

business market, and where educating customers is business market, and where educating customers is

appropriate, for instance if marketing a new appropriate, for instance if marketing a new

technology or service to architects and specifiers. technology or service to architects and specifiers.

Diff. Types of seminars includes CPD (Continuous Diff. Types of seminars includes CPD (Continuous

Professional Development) / CME by professional and Professional Development) / CME by professional and

institutes, which provides an extra incentive for institutes, which provides an extra incentive for

prospective customers to attend.prospective customers to attend.

29) Direct Marketing29) Direct Marketing

Direct MarketingDirect Marketing


Direct marketing is a channel free approach to Direct marketing is a channel free approach to

distribution and / or marketing communications. distribution and / or marketing communications.

Company can deal with its customers 'directly,' for Company can deal with its customers 'directly,' for

example banks (such as City Bank) or computer example banks (such as City Bank) or computer

manufacturers (such as Dell) or MLM manufacturers (such as Dell) or MLM

There are no channel intermediaries i.e. distributors, There are no channel intermediaries i.e. distributors,

retailers or wholesalers. retailers or wholesalers.

Therefore - 'direct' in the sense that the deal is done Therefore - 'direct' in the sense that the deal is done

directly between the manufacturer and the customer.directly between the manufacturer and the customer.

Direct Marketing Direct Marketing contdcontd..


Direct' also in the sense that marketing Direct' also in the sense that marketing

communications are targeted at consumers by the communications are targeted at consumers by the

manufacturers. manufacturers.

For e.g. a brand that uses channels of distribution For e.g. a brand that uses channels of distribution

would target marketing communications at would target marketing communications at

wholesalers / distributors, retailers, and consumers, wholesalers / distributors, retailers, and consumers,

or a blend of all three. or a blend of all three.

On the other hand, a direct marketing company could On the other hand, a direct marketing company could

focus upon communicating directly with its focus upon communicating directly with its

customers. customers.

Direct marketing and direct mail are often confused - Direct marketing and direct mail are often confused -

although direct mail is a direct marketing tool. although direct mail is a direct marketing tool.

Direct Marketing Direct Marketing contdcontd..


There are a number of direct marketing media There are a number of direct marketing media other than direct mail. These include : other than direct mail. These include :

1.1. Inserts in newspapers and magazines. Inserts in newspapers and magazines.

2.2. Customer care lines. Customer care lines.

3.3. Catalogues. Catalogues.

4.4. Coupons. Coupons.

5.5. Door drops. Door drops.

6.6. TV and radio adverts with free phone numbers TV and radio adverts with free phone numbers or per-minute-charging. or per-minute-charging.

7.7. . . . and finally - and most importantly - The . . . and finally - and most importantly - The Internet and New Media. Internet and New Media.

Direct mailDirect mail


Some of the principles and rules referenced here also Some of the principles and rules referenced here also apply to other types of direct marketing, including apply to other types of direct marketing, including 'door-to-door' distribution and telemarketing methods.'door-to-door' distribution and telemarketing methods.

Direct mail is the process of sending your material (by Direct mail is the process of sending your material (by itself or in a shared mailing with other items) direct to itself or in a shared mailing with other items) direct to the address of the potential customer by post. the address of the potential customer by post.

The elements which make up the direct mail process The elements which make up the direct mail process are basically: are basically:

1.1. A mailing list of names and addresses (own or sourced A mailing list of names and addresses (own or sourced data-base) data-base)

2.2. The item(s) to be mailed, and envelopes or packaging, The item(s) to be mailed, and envelopes or packaging, if applicable .if applicable .

3.3. Resource or facility to 'stuff' and address or label the Resource or facility to 'stuff' and address or label the envelopes/packaging envelopes/packaging

4.4. Postal charges, which depend on the size and shape Postal charges, which depend on the size and shape as well as the weight of the item being mailed. as well as the weight of the item being mailed.

Direct mail Direct mail contdcontd..


Direct Mail is generally used to generate a direct Direct Mail is generally used to generate a direct

response from the recipient and will commonly response from the recipient and will commonly

incorporate a reply or response section within the incorporate a reply or response section within the

mailed item. mailed item.

Direct mail is not a precise science. Direct mail is not a precise science.

There are many things that can go wrong, and even There are many things that can go wrong, and even

more things that are unknown and unimagined by the more things that are unknown and unimagined by the

campaign manager. campaign manager.

A direct mail campaign which produces more than a A direct mail campaign which produces more than a

2% response is normally considered very successful. 2% response is normally considered very successful.

Lower than 1% response is more usual. Lower than 1% response is more usual.

30) Viral marketing30) Viral marketing


Viral marketingViral marketing


SynonymsSynonyms

Word-of-mouth marketingWord-of-mouth marketing

Related TermsRelated Terms

email marketing, pass-along rate, permission marketingemail marketing, pass-along rate, permission marketing

DefinitionDefinition

Marketing phenomenon that facilitates and encourages Marketing phenomenon that facilitates and encourages

people to pass along a marketing message.people to pass along a marketing message.

Viral marketing Viral marketing contdcontd..


Viral marketing depends on a high pass-along rate Viral marketing depends on a high pass-along rate from person to person. from person to person. If a large percentage of recipients forward If a large percentage of recipients forward

something to a large number of friends, the something to a large number of friends, the overall growth snowballs very quickly. overall growth snowballs very quickly.

If the pass-along numbers get too low, the overall If the pass-along numbers get too low, the overall growth quickly fizzles.growth quickly fizzles.

With B2C it seemed as every startup had a viral With B2C it seemed as every startup had a viral component to its strategy, or at least claimed to component to its strategy, or at least claimed to have one. have one.

However, few marketing viruses achieve success on However, few marketing viruses achieve success on a scale similar to Hotmail, widely cited as the first a scale similar to Hotmail, widely cited as the first example of viral marketing.example of viral marketing.

Viral marketing Viral marketing contdcontd..


Viral marketing may have connotations of sending Viral marketing may have connotations of sending

unwanted messages i.e. spam. unwanted messages i.e. spam.

That is not what is meant. That is not what is meant.

It is basically the idea of using the Internet and e-mail It is basically the idea of using the Internet and e-mail

for recommendation and promotion among peers. for recommendation and promotion among peers.

E.g. a logo or a note on the scientist's home page E.g. a logo or a note on the scientist's home page

endorsing the use of the IR. endorsing the use of the IR.

A message of support at the bottom of the scientist's A message of support at the bottom of the scientist's

e-mail.e-mail.

Word of mouthWord of mouth


Personal referral is unsurpassed as an advertising tool. Personal referral is unsurpassed as an advertising tool. It costs nothing and is the most believable type of It costs nothing and is the most believable type of

'advertising of them all. 'advertising of them all. Encouraging word of mouth referral is therefore a good Encouraging word of mouth referral is therefore a good

reason for sustaining excellent customer service and reason for sustaining excellent customer service and relations. relations.

If your customers are thrilled by the service you give If your customers are thrilled by the service you give they'll tell their friends. they'll tell their friends.

You can encourage word of mouth referrals through the You can encourage word of mouth referrals through the use of use of Discount vouchers and coupons,Discount vouchers and coupons, Loyalty and 'friends and family' schemes,Loyalty and 'friends and family' schemes, Introduce a friend incentives,Introduce a friend incentives, Any other mechanism that encourages people to spread Any other mechanism that encourages people to spread

the word on your behalf.the word on your behalf.

Networking and clubsNetworking and clubs


Networking contacts and introductions is an cost-effective Networking contacts and introductions is an cost-effective marketing method for consumer services and products, and marketing method for consumer services and products, and more particularly for business-to-business services. more particularly for business-to-business services.

A variety of networking opportunities exist in all sectors A variety of networking opportunities exist in all sectors and regions, including and regions, including Trades associationsTrades associations Chambers of commerce and tradeChambers of commerce and trade Networking websitesNetworking websites Societies, clubsSocieties, clubs Breakfasts, lunches, Breakfasts, lunches, EventsEvents Anywhere that potential customers and influencers Anywhere that potential customers and influencers

gather, and the systems within which they communicate gather, and the systems within which they communicate and socialise. and socialise.

Use your imagination. Always be prepared to speak to Use your imagination. Always be prepared to speak to others enthusiastically about your business - the world is others enthusiastically about your business - the world is full of potential customers.full of potential customers.

An increasing number of networking 'clubs' are now found An increasing number of networking 'clubs' are now found on the internet. on the internet.

31) Advertising31) Advertising

AdvertisingAdvertising


Advertising is an important element of the marketing Advertising is an important element of the marketing communications mix. communications mix.

Advertising directs a message at large numbers of people Advertising directs a message at large numbers of people with a single communication. It is a mass medium. with a single communication. It is a mass medium.

Advertising benefits for the advertiser. Advertising benefits for the advertiser.

1.1. Control over the message. Control over the message.

2.2. The advert and its message, can be designed according The advert and its message, can be designed according to the specifications of the advertiser. to the specifications of the advertiser.

3.3. Can focus its message at a huge number of potential Can focus its message at a huge number of potential consumers in a single hit, at a relatively low cost per consumers in a single hit, at a relatively low cost per head. head.

4.4. Advertising is quick relative to other elements of the Advertising is quick relative to other elements of the marketing communications mix (E.g. personal selling). marketing communications mix (E.g. personal selling).

5.5. Communicate with all its target audience simultaneously. Communicate with all its target audience simultaneously.

Advertising MediaAdvertising Media


Advertising Media

Outdoor (Posters or transport)

New Media - Mobile devices

New Media Internet - websites and search

engines

Newspapers (Local and National) Television Magazines

Radio Cinema Others . . .

Planning for advertisingPlanning for advertising


Advertising agencies and their clients plan for advertising. Advertising agencies and their clients plan for advertising.

Any plan should address the following stages: Any plan should address the following stages:

1.1. Who is the potential TARGET AUDIENCE of the advert? Who is the potential TARGET AUDIENCE of the advert?

2.2. WHAT do I wish to communicate to this target audience? WHAT do I wish to communicate to this target audience?

3.3. Why is this message so IMPORTANT to them? Why is this message so IMPORTANT to them?

4.4. What is the BEST MEDIUM for this message to take? What is the BEST MEDIUM for this message to take?

5.5. What would be the most appropriate TIMING? What would be the most appropriate TIMING?

6.6. What RESOURCES will the advertising campaign need? What RESOURCES will the advertising campaign need?

7.7. How do we CONTROL our advertising and monitor success?How do we CONTROL our advertising and monitor success?

32) CRM32) CRM


Customer Relationship Management Customer Relationship Management (CRM)(CRM)


CRM has today become a topical area of interest CRM has today become a topical area of interest especially with the onset of e-commerce. especially with the onset of e-commerce.

As CRM is a term used in a broad manner, there As CRM is a term used in a broad manner, there is probably a need for the marketing practitioner is probably a need for the marketing practitioner to understand what it is, its impact on the to understand what it is, its impact on the organisation (not just on the marketing organisation (not just on the marketing aspects), its applicability to an organisation and aspects), its applicability to an organisation and its benefits to customers. its benefits to customers.

There is a need to understand that CRM is an There is a need to understand that CRM is an overall strategy for the organisation and not just overall strategy for the organisation and not just a sales tool with a short-term orientation. a sales tool with a short-term orientation.

CRM requires a long-term plan, and anything CRM requires a long-term plan, and anything long-term requires a strong organisational long-term requires a strong organisational commitment and appropriate investment.commitment and appropriate investment.


CRM concerns the relationship between the CRM concerns the relationship between the organization and its customers. organization and its customers.

Customers are the lifeblood of any organization Customers are the lifeblood of any organization be it a global corporation with thousands of be it a global corporation with thousands of employees and a multi-billion turnover, or a sole employees and a multi-billion turnover, or a sole trader with a handful of regular customers. trader with a handful of regular customers.

CRM focuses on the relationshipCRM focuses on the relationship


Successful organizations use three steps to build Successful organizations use three steps to build

customer relationships: customer relationships:

1.1. Determine mutually satisfying goals between Determine mutually satisfying goals between

organization and customersorganization and customers

2.2. Establish and maintain customer rapport Establish and maintain customer rapport

3.3. Produce positive feelings in the organization and Produce positive feelings in the organization and

the customersthe customers

CRM conditionsCRM conditions


The organization and the customers both have sets of The organization and the customers both have sets of

conditions to consider when building the relationship, conditions to consider when building the relationship,

such as wants and needs of both parties; such as wants and needs of both parties;

1.1. Organizations need to make a profit to survive and Organizations need to make a profit to survive and

grow grow

2.2. Customers want good service, a quality product and Customers want good service, a quality product and

an acceptable price an acceptable price

Good CRM can influence both sets of conditions. Good CRM can influence both sets of conditions.

How CRM impacts on the organizationHow CRM impacts on the organization


CRM can have a major impact on an organization CRM can have a major impact on an organization

through: through:

1.1. Shifting the focus from product to customer Shifting the focus from product to customer

2.2. Streamlining the offer to what the customer Streamlining the offer to what the customer

requires, not want the organization can make requires, not want the organization can make

3.3. Highlighting competencies required for an Highlighting competencies required for an

effective CRM process effective CRM process

Why does the organization need CRM?Why does the organization need CRM?


The ultimate purpose of CRM, like any The ultimate purpose of CRM, like any

organizational initiative, is to increase profit by;. organizational initiative, is to increase profit by;.

1.1. CRM provides better service to your customers than CRM provides better service to your customers than

your competitors. your competitors.

2.2. Reduces costs, wastage, and complaintsReduces costs, wastage, and complaints

3.3. Reduces staff stress, because attrition (errosion) - Reduces staff stress, because attrition (errosion) -

a major cause of stress - reduces as services and a major cause of stress - reduces as services and

relationships improve. relationships improve.

Why does the organization need CRM? Why does the organization need CRM? ContdContd..


4.4. Provides instant market research, gives you Provides instant market research, gives you direct constant market reaction to your direct constant market reaction to your products, services and performance, far better products, services and performance, far better than any market survey. than any market survey.

5.5. Steady business growth Steady business growth loyal customers stay with you longerloyal customers stay with you longer customer churn rates reducecustomer churn rates reduce referrals to new customers increase from referrals to new customers increase from

increasing numbers of satisfied customersincreasing numbers of satisfied customers demand reduces on fire-fighting and trouble-demand reduces on fire-fighting and trouble-

shooting staffshooting staff overall the organization's service flows and overall the organization's service flows and

teams work more efficiently and more happily.teams work more efficiently and more happily.

Features of good CRMFeatures of good CRM


The old viewpoint in industry was: The old viewpoint in industry was:

'Here's what we can make - who wants to buy our 'Here's what we can make - who wants to buy our

product?' product?'

The new viewpoint in industry is: The new viewpoint in industry is:

'what exactly do our customers want and need?' and 'what exactly do our customers want and need?' and

'What do we need to do to be able to produce and 'What do we need to do to be able to produce and

deliver it to our customers?'deliver it to our customers?'

This is a significant change of paradigm and a quantum This is a significant change of paradigm and a quantum

leap in terms of how we look at our business activity.leap in terms of how we look at our business activity.

Features of good CRMFeatures of good CRM


CRM is not: CRM is not:

having just a call-centre without appropriate having just a call-centre without appropriate

strategies strategies

l having just a database of consumers for l having just a database of consumers for

sending direct mail sending direct mail

l establishing just a social relationship with the l establishing just a social relationship with the

consumer consumer

l having an eternal price discount procedure. l having an eternal price discount procedure.

What do customers want?What do customers want?


Many organizations perceptions, is that customers Many organizations perceptions, is that customers

want cost-effective products or services that want cost-effective products or services that

deliver required benefits to them. deliver required benefits to them.

Note that any single product or service can deliver Note that any single product or service can deliver

different benefits to different customers. different benefits to different customers.

It's important to look at things from the customer's It's important to look at things from the customer's

perspective.perspective.

Customers' needs are distinctly different to and far Customers' needs are distinctly different to and far

broader than a product or service, and the features broader than a product or service, and the features

and benefits encompassed. and benefits encompassed.



Customers' needs generally extend beyond the suppliers' Customers' needs generally extend beyond the suppliers'

proposition, which includes the buying-selling process, proposition, which includes the buying-selling process,

the way that communications are handled, and the nature the way that communications are handled, and the nature

of the customer-supplier relationship.of the customer-supplier relationship.

Modern CRM theory refers to the idea of Modern CRM theory refers to the idea of 'integrating the 'integrating the

customer'. customer'.

Integrating (incorporating, together) the customer into all Integrating (incorporating, together) the customer into all

aspects of the supplier's business, and vice versa. aspects of the supplier's business, and vice versa.

CRM is a relationship that is deeper and wider than the CRM is a relationship that is deeper and wider than the

traditional 'arms-length' supplier-customer relationship.traditional 'arms-length' supplier-customer relationship.



The traditional approach to customer relationships was The traditional approach to customer relationships was based on a simple transaction or trade, and little based on a simple transaction or trade, and little

more. more. Majorly only a single point of contact between one Majorly only a single point of contact between one

person on each side. person on each side. All communication and dealings would be between All communication and dealings would be between

only these two people, even if the customers' only these two people, even if the customers' organization contained many staff, departments, and organization contained many staff, departments, and functional requirements (distribution, sales, quality, functional requirements (distribution, sales, quality, finance, etc). finance, etc).

The modern approach to CRM is The modern approach to CRM is based on satisfying all of the needs - people, based on satisfying all of the needs - people,

systems, processes, etc - across the customer's systems, processes, etc - across the customer's organization, such as might be affected and organization, such as might be affected and benefited by the particular supply.benefited by the particular supply.

Generating a customer focused CRM Generating a customer focused CRM solution solution


So what do we need to make this quantum leap of So what do we need to make this quantum leap of customer integration? customer integration?

A new way of thinking: A new way of thinking:

1.1. Change in paradigm Change in paradigm

2.2. Change in the messages sent and received Change in the messages sent and received

3.3. Change in the overall culture Change in the overall culture And a new way of doing things: And a new way of doing things:

1.1. Processes that are capable and effective Processes that are capable and effective

2.2. Structures and systems that support a business Structures and systems that support a business centred on its customers centred on its customers

3.3. Connectivity (end-to-end processes) both Connectivity (end-to-end processes) both internally and externally (e.g., With suppliers) internally and externally (e.g., With suppliers)

Customers' expectations Customers' expectations


Ideally a business organization should exceed its Ideally a business organization should exceed its customers' expectations, thereby maximising the customers' expectations, thereby maximising the satisfaction of its customers, and also the satisfaction of its customers, and also the credibility of its goods and services in the eyes of credibility of its goods and services in the eyes of its customers.its customers.

Customers normally become delighted when a Customers normally become delighted when a supplier under-promises and over-delivers. supplier under-promises and over-delivers.

To over-promise and under-deliver is a recipe for To over-promise and under-deliver is a recipe for customers to become very dissatisfied.customers to become very dissatisfied.

1.1. Rule No 1 - You cannot assume that you know what Rule No 1 - You cannot assume that you know what a customer's expectations are ... You must ask. a customer's expectations are ... You must ask.

2.2. Rule No 2 - Customer expectations will constantly Rule No 2 - Customer expectations will constantly change so they must be determined on an on-going change so they must be determined on an on-going basis.basis.

Customers' expectations Customers' expectations contdcontd..


The expectations of different customers for the The expectations of different customers for the

same product or service will vary according to: same product or service will vary according to:

1.1. Social and demographic factors Social and demographic factors

2.2. Economic situation Economic situation

3.3. Educational standards Educational standards

4.4. Competitor products Competitor products

5.5. Experience Experience

Therefore, given all these variable factors, it is no Therefore, given all these variable factors, it is no

surprise that one size certainly does not fit all.surprise that one size certainly does not fit all.



Ask your customers what is important to them. Ask your customers what is important to them.

Find out why your customers do business with Find out why your customers do business with

you. you.

There are a wide variety of relationship drivers. There are a wide variety of relationship drivers.

For example:For example:

1.1. Quality Quality

2.2. Price Price

3.3. Product Product

4.4. Location Location

5.5. Customer serviceCustomer service



When you ask you might discover some factors that When you ask you might discover some factors that

you'd perhaps never even considered, for example:you'd perhaps never even considered, for example:

1.1. Health and safety support Health and safety support

2.2. Systems compatibility Systems compatibility

3.3. Contract structure Contract structure

4.4. Distribution flexibility Distribution flexibility

5.5. Technical support Technical support

6.6. Troubleshooting and problem-solving, to name just Troubleshooting and problem-solving, to name just

a few a few

What service features will keep your customers What service features will keep your customers

loyal to you? Find out.loyal to you? Find out.

CRM as a processCRM as a process


CRM can be regarded as a process, which has:CRM can be regarded as a process, which has:

1.1. Identifiable inputs Identifiable inputs

2.2. Identifiable components Identifiable components

3.3. Identifiable characteristics, which define CRM for Identifiable characteristics, which define CRM for

your organization and customer base your organization and customer base

4.4. Capacity for improvement and evolution over Capacity for improvement and evolution over

time time

Managing customersManaging customers


Customers are usually the source of income for an Customers are usually the source of income for an

organization. organization.

If not then they will certainly leverage your income, as If not then they will certainly leverage your income, as

in the case of readers of a free publication which is in the case of readers of a free publication which is

funded by advertising. funded by advertising.

As such there are two types of customers: the readers As such there are two types of customers: the readers

and the advertisers.and the advertisers.

Customers are also an exceptional source of informationCustomers are also an exceptional source of information

information which is vital to enable a business to information which is vital to enable a business to

succeedsucceed


Managing customers entails:Managing customers entails:

1.1. knowing what customers want and need knowing what customers want and need which enables you to focus your production and which enables you to focus your production and

service efforts service efforts

2.2. knowing which products or customers have most growth knowing which products or customers have most growth potential potential which enables you to focus on developing highest which enables you to focus on developing highest

potential potential

3.3. knowing which products or customers are most or least knowing which products or customers are most or least profitableprofitable which enables you to focus on maximising profit which enables you to focus on maximising profit

4.4. knowing which customers will be advocates and knowing which customers will be advocates and supporterssupporters which enables you to provide references, case which enables you to provide references, case

studies, and to safely test new products and servicesstudies, and to safely test new products and services

Achieving good CRMAchieving good CRM


Achieving effective Customer Relationship Achieving effective Customer Relationship Management requires many organizations to adopt Management requires many organizations to adopt a new perspective. a new perspective.

1.1. traditional customer service is something you traditional customer service is something you 'do to' the customer 'do to' the customer

2.2. modern CRM 'done with' the customer modern CRM 'done with' the customer Your relationships with customers should be Your relationships with customers should be

ongoing, cooperative, and built for the long term. ongoing, cooperative, and built for the long term. Organizations who have many transitory Organizations who have many transitory

relationships with customers consequently have to relationships with customers consequently have to spend a lot of money on finding new customers.spend a lot of money on finding new customers.

The cost of keeping existing customers is a tiny The cost of keeping existing customers is a tiny fraction of the cost of acquiring new customers. fraction of the cost of acquiring new customers.

Pareto's Law (‘the Pareto Pareto's Law (‘the Pareto Principle‘)Principle‘)


Pareto's Law is commonly known as the 80:20 rule. Pareto's Law is commonly known as the 80:20 rule.

Typically in any organization: Typically in any organization:

20% of customers account for 80% of your turnover20% of customers account for 80% of your turnover

20% of customers account for 80% of your profits 20% of customers account for 80% of your profits

20% of customers account for 80% of your service 20% of customers account for 80% of your service

and supply problems and supply problems

It is important to know is which customers fit into It is important to know is which customers fit into

which category and then to manage them accordingly.which category and then to manage them accordingly.

Focus on building relationshipsFocus on building relationships


CRM focus should be on developing core CRM focus should be on developing core competencies, and an overall strategy of building competencies, and an overall strategy of building customer relationships. customer relationships.

1.1. customers and the culture of exceeding of customer customers and the culture of exceeding of customer expectation expectation

2.2. understanding and managing the people impact on understanding and managing the people impact on the culture of the organization the culture of the organization

3.3. customers being recognised and treated as partners customers being recognised and treated as partners

4.4. the value of relationship-building being valued the value of relationship-building being valued

5.5. service being seen as a value-adding activity service being seen as a value-adding activity

6.6. reward and recognition being based on customer reward and recognition being based on customer focus i.e., 'going the extra mile' focus i.e., 'going the extra mile'

7.7. evidence of corporate support for service activityevidence of corporate support for service activity

Characteristics of excellent CRMCharacteristics of excellent CRM


The following characteristics are associated with The following characteristics are associated with delivery of excellent CRM: delivery of excellent CRM:

1.1. ReliabilityReliability

2.2. Responsiveness Responsiveness

3.3. AccessibilityAccessibility

4.4. SafetySafety

5.5. Courtesy Courtesy

6.6. Consideration Consideration

7.7. Communication Communication

8.8. Recognising the customer Recognising the customer

9.9. Competence Competence

'Moments of truth’'Moments of truth’


'Moments of truth' are encounters with customers 'Moments of truth' are encounters with customers which cause them to form a view of the which cause them to form a view of the organization based on how they are engaged, organization based on how they are engaged, particularly compared to their expectations. particularly compared to their expectations.

Expectations can be met, exceeded or Expectations can be met, exceeded or disappointed. disappointed.

Moments of truth can therefore be positive, in the Moments of truth can therefore be positive, in the case of meeting and exceeding expectations, or case of meeting and exceeding expectations, or negative, in the case of disappointment. negative, in the case of disappointment.

Monitoring the 'moments of truth' allows the Monitoring the 'moments of truth' allows the company to focus on improving areas responsible company to focus on improving areas responsible for negative customer experiences. for negative customer experiences.

Remedial action to prevent repetition is crucial. Remedial action to prevent repetition is crucial. A single mistake is forgivable. A repeat rarely is. A single mistake is forgivable. A repeat rarely is.

'Moments of truth’ 'Moments of truth’ contdcontd..


To maximise positive moments of truth - set To maximise positive moments of truth - set

standards in your processes. standards in your processes.

Standards using SMART criteria StandardsStandards using SMART criteria Standards

SpecificSpecific

Measurable Measurable

Agreed Agreed

RealisticRealistic

Time-bound Time-bound

CRM and communications CRM and communications


Communication is central to any successful Communication is central to any successful

relationship. relationship.

In terms of CRM, communication needs to be In terms of CRM, communication needs to be

consistent and high quality; as determined by: consistent and high quality; as determined by:

1.1. On Time On Time

2.2. Focused Focused

3.3. Relevant Relevant

4.4. Reliable Reliable

5.5. Coherent (logical and rational)Coherent (logical and rational)

People and CRM People and CRM


As with any other business process people have a As with any other business process people have a huge impact on the success of the CRM process. huge impact on the success of the CRM process.

Successful and effective CRM people tend to Successful and effective CRM people tend to display the following key characteristics:display the following key characteristics:

1.1. Positive attitude Positive attitude

2.2. People orientationPeople orientation

3.3. Organizational skills Organizational skills

4.4. Analytical skillsAnalytical skills

5.5. Customer focus (natural empathy)Customer focus (natural empathy)

6.6. Understanding of the link between CRM and Understanding of the link between CRM and profitabilityprofitability

Benefits of effective CRMBenefits of effective CRM


There are significant business benefits which accrue There are significant business benefits which accrue from an effective, integrated CRM approach. from an effective, integrated CRM approach.

1.1. reduced costs, because the right things are being reduced costs, because the right things are being done (i.e., effective and efficient operation) done (i.e., effective and efficient operation)

2.2. increased customer satisfaction, because they are increased customer satisfaction, because they are getting exactly what they want (i.e., exceeding getting exactly what they want (i.e., exceeding expectations)expectations)

3.3. ensuring that the focus of the organization is external ensuring that the focus of the organization is external 4.4. growth in numbers of customers growth in numbers of customers 5.5. maximisation of opportunities (e.g., increased maximisation of opportunities (e.g., increased

services, referrals, etc.)services, referrals, etc.)6.6. increased access to a source of market and increased access to a source of market and

competitor informationcompetitor information7.7. highlighting poor operational processes highlighting poor operational processes 8.8. long term profitability and sustainabilitylong term profitability and sustainability

Key Takeaways for Key Takeaways for Pharmaceutical CompaniesPharmaceutical Companies


Know the Macro Trends – What is New Media Know the Macro Trends – What is New Media Today?Today?


In light of where pharmaceutical consumer marketing has In light of where pharmaceutical consumer marketing has

come todaycome today

and where it’s heading in the near futureand where it’s heading in the near future

it’s critical for brand teams to be educated in the latest it’s critical for brand teams to be educated in the latest

trends and best practices in new media and digital trends and best practices in new media and digital

marketing. marketing.

Agency partners are available but if pharma marketers don’t Agency partners are available but if pharma marketers don’t

have a solid grasp on the wide breadth of digital strategies have a solid grasp on the wide breadth of digital strategies

available to them, they may be missing out on channels that available to them, they may be missing out on channels that

are most relevant to their particular audience. are most relevant to their particular audience.

Education is keyEducation is key

Understand Your Therapeutic Understand Your Therapeutic CategoryCategory


Condition profile has a significant influence on online Condition profile has a significant influence on online

health activities and behavior. health activities and behavior.

A new media strategy that proved successful for one A new media strategy that proved successful for one

brand may not resonate at all with another’s target brand may not resonate at all with another’s target

audience audience

brand marketers need to utilize market data and brand marketers need to utilize market data and

analysis to gain an understanding of the media mix and analysis to gain an understanding of the media mix and

preferred health resources of their therapeutic category.preferred health resources of their therapeutic category.

Figure Out Your New Media PlanFigure Out Your New Media Plan


Once marketers understand their target audience’s, Once marketers understand their target audience’s,

media preferences, the ball is in their court to use media preferences, the ball is in their court to use

the knowledge to form brand strategies and the knowledge to form brand strategies and

campaigns. campaigns.

Market analyst and agency partners can guide brand Market analyst and agency partners can guide brand

teams on how to best use new channels to teams on how to best use new channels to

communicate with patients in a relevant and communicate with patients in a relevant and

authentic way.authentic way.

155155 Sampling and Evidence Based Marketing Sampling and Evidence Based Marketing Dr. Kailas GhodkeDr. Kailas Ghodke

156156 Sampling and Evidence Based Marketing Sampling and Evidence Based Marketing Dr. Kailas GhodkeDr. Kailas Ghodke