Tactical Marketing Program

The Marketing Tool Kit

Confidential and proprietary to IMS Health. Internal use only

Table of Contents
1 THE MARKETING PLANNING PROCESS 2 THE PHARMACEUTICAL MARKETING PLAN 1 Management Summary 5 6 9

1.1 Corporate Objectives....................................................................9

2 Analysis

10

2.1 Market Summary........................................................................10 2.2 Results Analysis.........................................................................10 2.2.1 Breakdown of Market Size.........................................................10 2.2.2 Breakdown of Market Share......................................................10 2.3 Internal Analysis: Brand Overview................................................11 2.3.1 Brand description.....................................................................11 2.3.2 Brand overview.......................................................................11 2.3.3 Health Economics Analysis........................................................12 2.3.4 Brand performance..................................................................12 2.4 External Analysis: Market Overview..............................................12 2.4.1 Customer overview..................................................................13 2.4.2 Patient overview......................................................................13 2.4.3 Competitor Analysis.................................................................13 2.5 Analysis Summary: SWOT...........................................................13 2.5.1 Critical Success Factors............................................................14

3 Strategy

14

3.1 Goals and Objectives...................................................................14 3.2 Brand Strategy...........................................................................14 3.3 Segmentation............................................................................14 3.4 Positioning.................................................................................14

4 Marketing Activities

15

4.1 Resource Allocation.....................................................................15 4.2 Sub-topics.................................................................................15 4.2.1 Sales Force Support.................................................................15

5 Financials

16

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6 Annexes 3 GLOSSARY OF TERMS 7 SUGGESTED READING 8 THE 10 KEY POINTS

16 17 28 29

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1 THE MARKETING PLANNING PROCESS

Corporate Objectives

GOALS & OBJECTIVES

Results Internal SWOT Strategic Statement Segmentation Positioning Marketing Activities External
ANALYSIS

STRATEGY

TACTICS

Financials

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2 THE PHARMACEUTICAL MARKETING PLAN

General Tips
Throughout the rest of these guidelines, we will be looking in detail at the suggested structure of the plan and the content of its sections. Some general ideas, however, include:
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Write your plan with the idea that someone entirely new to your product and market will be able to understand it. Write your plan in such a way that it will be understandable to someone outside of the marketing function. Back up your hypotheses when you have data, use them and cite them. At the same time, most plans contain too much data. The data should only be there to support your analysis include enough to do so, but do not overwhelm the reader. If you feel obliged to include all the analysis you have, try to separate the pertinent elements in the text and less pressing information in the annexes. When you have finished, and before showing it to anyone else, read your plan from the point of view of your boss. Is it complete?

Note
These guidelines have been created to represent a situation for a typical local product manager. As such, we have made certain assumptions:

The marketing plan is being written from the point of view of only one product, there are no portfolio issues to be taken into account. There is no input from the PM about pricing. There is no input from the PM about product development. This is not a product launch; the product is already on the market. The product is a pure ethical product; it is not OTC or semi-ethical. There are no major issues regarding distribution.

Of course, many of these assumptions might not hold for you. Nevertheless, this marketing plan provides the basics for writing any good marketing plan. Even in a dramatically different situation, the general structure should hold true there would simply be other elements added in. For international product managers the same flow should be used, although obviously they will need to avoid going into too much detail in too many countries! They should be more general, indicating regional differences only after drawing international conclusions.
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Table of Contents
1 THE MARKETING PLANNING PROCESS 2 THE PHARMACEUTICAL MARKETING PLAN 1 Management Summary 5 6 9

1.1 Corporate Objectives....................................................................9

2 Analysis

10

2.1 Market Summary........................................................................10 2.2 Results Analysis.........................................................................10 2.2.1 Breakdown of Market Size.........................................................10 2.2.2 Breakdown of Market Share......................................................10 2.3 Internal Analysis: Brand Overview................................................11 2.3.1 Brand description.....................................................................11 2.3.2 Brand overview.......................................................................11 2.3.3 Health Economics Analysis........................................................12 2.3.4 Brand performance..................................................................12 2.4 External Analysis: Market Overview..............................................12 2.4.1 Customer overview..................................................................13 2.4.2 Patient overview......................................................................13 2.4.3 Competitor Analysis.................................................................13 2.5 Analysis Summary: SWOT...........................................................13 2.5.1 Critical Success Factors............................................................14

3 Strategy

14

3.1 Goals and Objectives...................................................................14 3.2 Brand Strategy...........................................................................14 3.3 Segmentation............................................................................14 3.4 Positioning.................................................................................14

4 Marketing Activities

15

4.1 Resource Allocation.....................................................................15 4.2 Sub-topics.................................................................................15 4.2.1 Sales Force Support.................................................................15

5 Financials
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6 Annexes 3 GLOSSARY OF TERMS 7 SUGGESTED READING 8 THE 10 KEY POINTS

16 17 28 29

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1 Management Summary
The management summary summarizes the rest of the plan. Remember that your plan is not a novel a reader should not have to wait until the end to see your point. The management summary should be exactly that: it contains all of your conclusions. However it does not contain the details of your analysis or your action plan. In certain respects, from the readers point of view, the rest of the marketing plan should simply serve to support and explain your management summary. For a marketing plan dealing with one product, the management summary should take no more than two written pages. Try to avoid tables and graphs. This is where you should explain, not present. You can support your conclusions in the rest of the plan. Even though it comes at the beginning of the marketing plan, you should always write your management summary last.

1.1 Corporate Objectives

The Management Summary should include an explanation of the corporate objectives for the product. In other words, what are you trying to achieve with this plan? If your plan does not agree with the corporate objectives then this should be stated and you should be ready to explain this discrepancy within the plan. This is where you should state the corporate brand vision, including corporate guidelines, positioning statement, etc. to set the stage for the rest of the plan. Two different types of objectives can be addressed, depending on the PMs own goals and objectives:

Financial

this covers contribution, return on investment, cash flow, budgetary restriction, etc.

Marketing

this covers sales, market share, segment penetration, etc. Ideally, it will include measurements from the ladder of adoption as well (awareness, perceptual results, etc.) In all cases, one objective which must be addressed in the marketing plan is market share. Often, this is considered by market segment. Even if your own objectives are not stated by market share, derive your market share objectives by dividing projected market size by your sales objective.

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2 Analysis
The analysis section serves to indicate why you have arrived at your strategic conclusions, and why your plan is the best possible to fulfil your strategic goals as given to you form corporate. It should not simply be a stroll through all the relevant data! Remember always, analysis is a story of how the available data coupled with your intuition leads inevitably to the strategy you will be presenting afterwards. At the same time, your analysis should be completely objective. Always try to avoid presenting tables, graphs or really any numbers without commentary. If you do not think commentary is necessary for a given set of data then it probably belongs in the appendix.

2.1 Market Summary

This should be a description of the big picture in the market, including an overview of the performance of the competing brands (including your own). This is kind of a management summary of the analysis as a whole. You should draw no conclusions here, it should be as objective as possible. One important element of the market summary should be a description of the market segments. This covers major distinctions in the market, such as different specialties, hospital prescriptions, any public health segments, etc. It is not customer segmentation, which can be specific to your analysis and will be considered later. The market summary should also include information about current treatment patterns and trends in treatment as well as the legislative situation as it affects your market.

2.2 Results Analysis

Results analysis should begin with a description of your results in both sales and market share. It should then go into detail in two areas:

2.2.1

Breakdown of Market Size

Percent of the population with the disease Percent of patients diagnosed Percent of diagnosed patients treated Percent of prescriptions filled

This should detail how the market is constituted by considering:

2.2.2

Breakdown of Market Share

This section should consider how market share is constituted by considering the hierarchy of effects:
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 Percent of prescribers who consider prescribing your product Percent of prescribers who have tried your product Percent of prescribers who regularly use your product Percent of prescribers for whom your product is their first line treatment Note that in all cases, these analyses should be carried out for all relevant segments and markets (e.g. generalists, specialists, etc.)

2.3 Internal Analysis: Brand Overview

The purpose of this section is to examine all the relevant internal factors in your analysis. You should begin this section with a one paragraph summary. In it, you should state your opinion about where the product is on the product lifecycle, as well as briefly summarizing the key points in the analysis that follows.

2.3.1

Brand description

This should be a completely objective description of the product. It should begin with a purely scientific description, but it should also go farther, including a review of the extended product offering. This includes relevant points about packaging, support services, etc. that are strongly associated with the brand. You should also describe where the product is in its product lifecycle.

2.3.2

Brand overview

This can include the following elements note that the importance of these different elements will depend on the product, notably on the product class lifecycle and on the product lifecycle: 2.3.2.1 Place in portfolio The first thing to take into account is how the product fits in the overall portfolio. What is the corporate image of the product (already briefly mentioned in the management summary) and how does it fit with other products? 2.3.2.2 Pricing and reimbursement Here, you should explain the current pricing situation for the product, and its reimbursement status. Indicate any foreseen evolution in this situation. 2.3.2.3 Development and regulatory timeline Outline the development and regulatory timeline for the product. What is the situation and how is it likely to evolve?
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2.3.2.4

Source of business

This should indicate where your current business is coming from, and should be organized by market segment. 2.3.2.5 Activity overview Here, you should review the activities on the product up to now.

2.3.3

Health Economics Analysis

The

Here you should state any relevant health economics analysis. importance of this analysis will depend on the product.

2.3.4

Brand performance
2.3.4.1 Total performance

The brand performance should include the following elements: It includes a detailed analysis of both sales and market share trends. This should be split into the relevant market segments. 2.3.4.2 Breakdown of market share by patient type You should not be content with looking at overall market share, but should also consider how this breaks down: Share among new patients Share among existing patients Share of switch patients % of prescribers who have considered the product % of prescribers who have tried the product % of prescribers who use the product % of prescribers for whom the product is their drug of choice.

You should also consider your share across the adoption curve:

All of these analyses should be considered by GP and specialist, if appropriate.

2.4 External Analysis: Market Overview

A central part of the market overview will be the treatment flow. means indicating: Total patient population % of patient population who are diagnosed % of diagnosed patients who are treated with the class % of compliance: prescriptions filled through term and renewed (if applicable)
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% of switch: if branded products are prescribed and then switched in pharmacy, this should be estimated and indicated.

Any trends in these ratios should also be indicated.

2.4.1

Customer overview

Beyond a simple description of customers, you should also indicate the splits among the major market segments: what kinds of prescribers are there, how are they typified, what are the trends.

2.4.2

Patient overview
Trends in

The patients should also be classified into major groups. patient treatment should also be considered.

2.4.3

Competitor Analysis

Examine the performance of specific competitors. Pay particular attention to change in market share. You may want to consider relative market share movements. Highlight both your main competitor and your growth competitor the latter is the product against which your relative market share is progressing the least well. 2.4.3.1 Competitor activities The marketing activities of your competitors are what you see, but your analysis should go farther; what kind of strategy is driving that activity? Try to derive what their positioning statement might be, and where they are investing. Include descriptions of competitor promotional activities (events, advertisements, detail aids, etc.), any information gleaned from public sources (company annual reports, websites, presentations in industry conventions, etc.) and explain what they might mean in terms of strategy.

2.5 Analysis Summary: SWOT

A good Swot analysis summarizes the key points of all of the analysis, arranged into:

Strengths: key points coming from your internal analysis that are favourable. Weaknesses: key points coming from your internal analysis that are Unfavorable. Opportunities: key points coming from your external analysis that are favourable. Threats: key points coming from your external analysis that are Unfavorable
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2.5.1

Critical Success Factors

Your SWOT should give rise to clear critical success factors those elements that must be mastered in order to succeed. These should allow you to apply strengths to opportunities and mitigate weaknesses in the face of threats.

3 Strategy
This is the heart of your plan. All of your analysis simply serves to explain why you chose this strategy, and all the rest of the plan serves to explain how you will carry it out, and what the implications are. Make sure it is clear and that it ties into your analysis seamlessly while making your proposed actions seem obvious.

3.1 Goals and Objectives

This should not be confused with the corporate goals outlined in the management summary. Here, you should give detailed brand goals, going into greater details than the corporate objectives. Specifically, you should be able to state goals in terms of the critical success factors outlined at the end of your analysis.

3.2 Brand Strategy

You should begin this section with a clear paragraph explaining your strategy. This is your strategic statement. It should have the following template: "I will achieve objectives before deadlines, by focusing on targets, and addressing their needs. I will concentrate my resources on communication to raise effect" It is always a challenge to keep the strategic statement to one paragraph, but it is a useful exercise. Think of it as your elevator pitch: if you find yourself in an elevator with the chairman of the company and he asks what your strategy is, this is what you would say.

3.3 Segmentation
Here, you should build on your analysis to explain which segments you plan on targeting, and why. If you have developed a specific segmentation approach, you should explain here the reasoning and method. If you have done any sub segmentation then it should be explained.

3.4 Positioning
If your plan is well constructed, it should be clear where your key messages come from they should flow naturally from the critical success factors, through your strategic statement. Your positioning statement should be complete, and cover the following:
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What is your market Who are you targeting What is the underlying patient base What are the needs you are addressing Why should the brand be chosen over all other alternatives what is the main competitive advantage

For example: Suclor is the 2nd-generation ARB for conservative GPs who need a safe, no-risk treatment for their elderly patients, because it has the lowest drug interactions. The positioning statement, in many respects, represents the most concise summary possible of your strategy. It indicates your target, your strategy, and your message. It should, of course, seem logical given your plan so far and it should be the reference for all your activities: in other words, how does a given activity help promote your position?

4 Marketing Activities
This is the tactical part of the plan what exactly do you plan on doing to promote the product. It should begin with a brief one-paragraph summary. This should not list all your activities (that will follow) but rather explain where you plan on focus. The purpose of this summary is to show how these activities support your strategy, via the positioning statement.

4.1 Resource Allocation

Here, you should indicate how you plan on splitting your resources over the various promotional tools available to you.

4.2 Sub-topics
Here you should detail all of the different promotional activities you plan on undertaking, such as sales force support, events, CME, journal advertising, DTC, etc. Most of these elements should also be supported with detailed action plans, often including Gantt charts or other project planning elements. These details are often found in annexes instead of in the main text of the marketing plan. The specific activities available will differ from product to product and market to market. One element which will always be present is sales force support.

4.2.1

Sales Force Support

The principle promotional channel for the pharmaceutical industry is the sales force. The first element you discuss in your marketing activities is therefore how you plan on helping the sales force. This should include things such as detail aids, local events, etc.
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You should indicate the Call Frequency objective for each targeted segments. Other major Key Performance Indicators concerning the salesforce should also be specified (Coverage, Detail order in a multiple-product situation, etc.).

5 Financials
The financial segment should be built around a marketing P&L: this should include: All projected spend, broke down by marketing activity (plus other spend, such as market research). This should include not only costs coming from your specific marketing budget, but any costs that the company as a whole will attribute to the product. A notable case is that of sales force expenditure. If your company does not include sales force costs in your budget, they should still be incorporated into the cost section of your P&L. Other costs of this nature may exist as well. Projected sales. This should be determined in the following way:
o o

A detailed analysis of the forecasted market size, based on the breakdown you presented in the analysis section. A detailed analysis of the forecasted market share based on the breakdown you presented in the analysis section. Be sure to discuss the elements in your forecast of which you are unsure. Dont hesitate stating a number of different possible scenarios, although in the end you will usually be expected to select what you consider to be the most likely.

Depending on your companys policy, you may need to subtract the cost of goods from the sales figure for your product. The final revenue figure, with or without taking into account cost of goods, minus total costs, will give forecasted marketing contribution.

6 Annexes
The annexes should mirror the plan, primarily including any elements from analysis that you feel are not immediately relevant to the flow of the plan itself, as well as details of your actions. Exactly what goes into the annex as opposed to going into the body of the plan will depend, and is largely up to you. Remember, though, that if your annexes are considerably shorter than the plan, then you probably could have put more in the annexes!

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3 GLOSSARY OF TERMS A, B
Action Plan : Action plans are designed to meet the strategic objective(s) using the available resources and given the existing constraints. The action plan is intended to be both a translation of a strategic plan into operational terms as well as a means by which the strategic performance may be monitored and controlled. The action plan has three major components: (1) specific tasks-what will be done including the specification of the marketing mix to be employed; (2) time horizon-when it will be done; and (3) resource allocation. Adoption: The penultimate step of the Hierarchy of Effects, where the prescriber is actively using the product Analysis: As an activity, analysis involves separating the parts of a whole and examining each part. For the purposes of creating a pharmaceutical marketing plan, analysis involves assessing the external environment, the internal environment, and determining key issues and critical success factors. Awareness: The first step of the Hierarchy of Effects, taking the prescriber from a state of ignorance to cognition. For many ethical pharmaceutical products, it is probably safe to assume that all prescribers are fundamentally aware that the products exist after a relatively short time on the market. This does not mean, however, that they consider using them. Brainstorming: A group activity designed to stimulate creative thinking. The goal is to come up with as many ideas related to a topic as possible and to process and evaluate them afterwards. Brand: A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. In marketing, the term brand usually contains an element of reputation and associations that go with it. As is often said: A company produces a product, but a consumer buys a brand. Brand Attribution: A measure of the level a customer associates your product or company with the communications around it. Brand attribution is high if a customer can see a communication and immediately identify that it is linked to a company or product.
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B, C..
Brick: A geographical entity covering a group of prescribers and/or pharmacies for which collective sales and/or prescription data are available Channel: A channel, in marketing, refers to the medium through which information is transmitted from a sender (or transmitter) to a receiver. In practice, this can mean many different methods of facilitating communication between a company and a prescriber including detail aids, events, promotional tools, journal advertisements, etc. CME: Stands for Continuing Medical Education - courses which are offered to physicians to refresh their knowledge or to keep them updated on medical developments. Communication Mix: The mix of communications activities chosen by a marketer to promote his product, such as detail aids, CME initiatives, events, and public relations / product publicity. Concentration Curve: A curve that relates the percentage of physicians to the percentage of revenues generated. A curve with a high concentration would have a small percentage of physicians generating a large percentage of revenues. Consideration: The second step of the Hierarchy of Effects, representing a rising interest in a product. Conversion Rate: From each stage of the Hierarchy of Effects, it is the proportion of prescribers captured by the next stage Copy: A version of an advertising message, visual, etc. Copy Testing: The testing of audience reactions to advertising messages while the advertising is being developed (called pre-testing) or after the advertising has been produced in final form (called post-testing.) Coverage: The degree to which a particular advertising medium delivers an audience within a particular geographic area or within a specific target market. In pharmaceutical marketing, coverage often refers to the proportion of prescribers called on by the salesforce within a specific targeted segment.
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C, D, E.
Critical Success Factors: The factors that are a necessary condition for success in a given market. Decile: Any of ten sections that divided a distribution of ranked scores into equal intervals where each interval contains one-tenth of the scores Detail: Within a sales call, detail refers to the promotional presentation of a specific product, in order to secure goodwill and possible distribution or prescription of the product. Detail Aid: Promotional support developed by Marketing and carried out by the sales force during the calls on prescribers. % Diagnosed: Among the population of patients suffering from a specific disease, this ratio indicates the average of those who are correctly diagnosed. Disease Prevalence: The percentage of people suffering from a specific pathology within a population. Drug of Choice: The last stage of the Hierarchy of Effects, where the product is used by the prescriber as a first-line treatment. DTC: Stands for Direct To Consumer. Refers to press and audiovisual media communications aiming directly at patients. In many markets, DTC is strongly restricted or prohibited for ethical products. E-detailing: Using the Internet, through e-mails or web site links, to promote a product. Extrapolated Volume: Using past statistical data and trends to estimate future volume, or using sample data to extrapolate a probable volume for all prescribers, even those who were not part of the original sample.

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F, G, H....
Filled: Among the population of patients treated with a prescription, this ratio indicates the proportion of those who effectively go to the pharmacy and fill the script over its entire duration. Five-Forces: A model used to analyze the external environment. The 5 forces in pharmaceutical marketing are Consumers, Prescribers, Players, Other Stakeholders, and Competitive Dynamics. Focus Group: 1. (consumer behavior definition) A method of gathering qualitative data on the preferences and beliefs of consumers through group interaction and discussion usually focused on a specific topic or product. 2. (marketing research definition) A personal interview conducted among a small number of individuals simultaneously; the interview relies more on group discussion than on a series of directed questions to generate data. It is also called group in-depth interview. Forecasting: Refers to the process of anticipating future sales, market share or other marketing indicators through the analysis of historical data coupled with market analysis. Frequency: The number of sales calls per a given time period made on a particular prescriber or a group of prescribers. Comment: The call frequencies assigned to customers are used by sales representatives to plan their own route and sales call schedules. Gantt Chart: A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L. Gantt, an American engineer and social scientist. Frequently used in project management, a Gantt chart provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project. Typically, a Gantt chart shows the week, month, or quarter that each activity will be completed and the person or persons responsible for carrying out each activity. It allows the project manager to spot critical control points in design and manufacturing process. Hierarchy of Effects: Model developed in 1966 by Palda and related to the manner in which advertising supposedly works; it is based on the premise that advertising moves individuals systematically through a series of psychological stages such as (in ethical pharmaceuticals) Awareness, Consideration, Trial, Adoption and Drug of Choice.

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I, J, K, L, M
Innovation: In the marketing literature, innovation implies the introduction of a new product, idea, or service into the market place. According to Robertson, it involves a new product that is very different from the established products or at least perceived to be different by consumers in the relevant market segment Key Performance Indicators: Also known as KPIs, they are quantifiable metrics which reflect the performance of an organization in achieving its goals and objectives Mailing: Marketing activity consisting of sending electronic or hard copy promotional materials to a targeted group of customers Market Share: The level of a given product's sales as proportion of the total market in values or units Relative Market Share: The company or product market share divided by that of a specific competitor. Marketing Contribution: The level of sales generated by marketing activities MAT: The acronym for Moving Annual Total. MAT is used in many contexts, mainly for recording results of an activity in the previous 12 months Mind Mapping: Developed by Tony Buzan in the 1970s, mind mapping is a graphic way to brainstorm which can help stimulate creativity around an issue. It is based on the idea of non-linear thinking. Monitoring: The process of checking, observing or keeping track of something for a specific period of time or at specified intervals. In pharmaceutical marketing, monitoring refers to consistently tracking the results or progress of your marketing plan in order to be able to adjust certain aspects if necessary. Multidimensional Scaling: An approach to measurement in which people's perceptions of the similarity of objects and their preferences among the objects are measured, and these relationships are plotted in a multidimensional space. In general, the goal of the analysis is to detect meaningful underlying dimensions that allow the researcher to explain observed similarities or dissimilarities between the investigated objects
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N, O, P
Needs-based analysis: A type of marketing approach taking into account the customer's needs and trying to offer a solution that satisfies those needs. Opportunity: One of the 4 quadrants of a SWOT matrix. Refers to the identified external key issues that can positively affect the business. Optimal Frequency: Refers to the number of calls with the highest profitability, given specific response curve and cost curve. Patient compliance: Refers to the commitment of the patient to the prescription written by the prescriber, in terms of choice of drugs, quantities and length of treatment. Penetration: The level of acceptance and adoption of a product in a given market or segment. Often measured in market share, penetration indicates the position a product versus the competition. PEST: Stands for Political, Economy, Social and Technological. It refers to all environmental factors outside of the five forces that may impact the market dynamics. Positioning: Positioning refers to the customer's perceptions of the place a product or brand occupies in a market segment. Often, positioning involves the differentiation of the company's offering from the competition by making or implying a comparison in terms of specific attributes. In marketing theory, products occupy specific positions in the minds of the customers. Positioning Statement: The Positioning Statement is an internal document that should reflect what the brand is, for whom the brand is important and what are its benefits. Potential: The degree to which a prescriber could prescribe a certain product. Gross Potential: The total volume of prescriptions written by a prescriber in a given therapeutic area.

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P
Net Potential: Gross potential of a prescriber taking into account other factors, both qualitative and quantitative, that may impact the real potential of the prescriber. Net Adjusted Potential: The real potential of the prescriber taking into account the specificities of the offering and company and their impact on the prescriber. PR: Stands for Public Relations. That form of communication management that seeks to make use of publicity and other non-paid forms of promotion and information to influence the feelings, opinions, or beliefs about the company or its products, or about the value of the product or the activities of the organization to patients, prescribers or other stakeholders. Profiling: To analyze a group of customers and determine what characteristics (demographics, usage, behavior, attitude, etc.) they might have in common. Profit & Loss Statement (P&L): A financial statement listing revenues, costs, and net income throughout a given period. Promotional Audit: Service summarizing the calling activity of pharmaceutical companies sales forces in a given therapeutic area. Propensity to change: The probability for an individual to change his or her mind and behavior. Refers to the propensity for a prescriber to change his/her prescriptions habits and the drugs he/she prescribes in a given therapeutic area Psychographics: A term that describes consumers or audience members on the basis of psychological characteristics initially determined by standardized tests. Promotional Mix: Using several different types of communication to support marketing goals which include Advertising, Personal selling, Publicity, and Sales promotions, as well as any other types open to the marketer. Marketing Plan: A document composed of an analysis of the current marketing situation, opportunities and threats analysis, marketing objectives, marketing strategy, action programs, and projected or pro-forma income (and other financial) statements.
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R
R.O.I: Stands for Return On Investment. In marketing literature, it refers to the ratio of sales generated from a specific activity and the cost of it. ROI is often one of the key indicators of marketing performance. R: Statistical measure of how well a regression line approximates real data points; an R of 1.0 (100%) indicates a perfect fit. Radar Dynamics: Service providing information on the competitors' performance in a given therapeutic area. Allows breakdowns at each stage of the Hierarchy of Effects and the dynamic capture rates of each product for New, Switch and Repeat scripts. Recall: A test of advertising effectiveness in which a sample of members of the audience are contacted at a specific time after exposure to a media vehicle and asked to recall advertising messages they remember seeing and/or hearing in the media vehicle. It is called unaided recall if there is no prompting with elements of the ads or commercials being examined. With prompting, the results are called aided recall. Regression: Technique of fitting a simple mathematical equation to real data values. The most typical type of regression is linear regression (meaning you use the equation for a straight line, rather than some other type of curve), usually constructed using the least-squares method. Resource Allocation: Process of allocating a given marketing budget across possible activities. Response Curve: Measures the correlation between marketing activity and customers' buying behavior. In the case of pharmaceutical marketing, it refers to the relation between the number of calls or other type of marketing activity delivered to a prescriber (or group of prescribers) and the number of prescriptions consequently written for the corresponding product. Given the shape of response curves, they are often called "S-curves" Return on Calls: A measure of the revenues generated from a call relative to the cost of the call. If greater than 1, the call is profitable.

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R, S..
Return on Sales: Determined by taking the ratio of Net Contribution with total sales. Script: A short form pharmaceutical industry. term for "prescription" used commonly in the

New Script: The first script initiating treatment for a newly diagnosed condition. Repeat Script: The renewal of a script for the same product and dosage for an already diagnosed condition. Switch Script: A new script that changes the treatment for a previously diagnosed condition. Segment: Outcome of the segmentation process. Customer group seeking similar benefits and/or sharing characteristics that are strategically relevant. Segmentation: The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs. Each subset may conceivably be chosen as a market target to be reached with a distinct marketing strategy. The process begins with a basis of segmentation a product-specific factor that reflects differences in customers' requirements or responsiveness to marketing variables (possibilities are purchase behavior, usage, benefits sought, intentions, preference, or loyalty). To be of strategic value, the resulting segments must be measurable, accessible, sufficiently different to justify a meaningful variation in strategy, substantial, and durable. Segmentation Framework: The form segmentation will take. This can be defined with several parameters: number of dimensions, number of cut-offs for each dimension, number of segments, etc. Semantic Scaling: Semantic Scaling is a method of comparing the perceptions prescribers have regarding the attributes of different drugs and for identifying drugs relative strengths and weaknesses. It is carried out by asking respondents to rate products on a scale (of 1 to 4, 1 to 5, 1 to 10etc.).

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S.
Stakeholder: any individual or group that feels affected by a situation. In the case of marketing analysis, it means any individual or group with which the marketer must be concerned. Key stakeholders might include consumers, employees, stockholders, suppliers, and others who have some relationship with the organization. For pharmaceutical marketers, stakeholders who are not implicitly included in the 5-forces modal might include pharmacist groups, wholesalers, legislators, etc. Strategic Statement: A statement of how a brand or product line will achieve its objectives. The strategic statement provides decisions and direction regarding variables such as the segmentation of the market, identification of the target market, positioning, marketing mix elements, and expenditures. A strategic statement is usually an integral part of a business strategy that provides broad direction to all functions. Strategy: This describes the direction the business will pursue within its chosen environment and guides the allocation of resources and effort. It also provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction. Within a pharmaceutical marketing plan, it will always address market segmentation and product positioning. Strength: One of the 4 quadrants of a SWOT matrix. Refers to the identified internal key issues that can positively affect the business. Sub-segmentation: The process of dividing a segment into 2 or more parts (sub-segments) by defining differentiating factors. SWOT: A SWOT Analysis is an analytical tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strengths and weaknesses are internal to an organization. Opportunities and threats originate from outside the organization. A SWOT analysis is the core analytical tool for marketing analysis and planning. It should be used to summarize analysis.

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T, U, V, W, X, Y, Z..
Tactics: Short-term actions undertaken to achieve implementation of a broader strategy. Target: One or several segments or groups of prescribers that are considered as important and specifically addressed in marketing activities. Targeting: The process of selecting one or more of segments as a target, and developing marketing programs and ad campaigns directed towards each. Threat: One of the 4 quadrants of a SWOT matrix. Refers to the identified external key issues that can negatively affect the business. Trial: The 3rd stage of the Hierarchy of Effects, where the prescriber starts testing the product with a few patients. U.S.P (Unique Selling Point): The unique product benefits that the competition can not claim. Volume: The number of prescriptions generated in a given therapeutic area and in a given market. Weakness: One of the 4 quadrants of a SWOT matrix. Refers to the identified internal key issues that can negatively affect the business. Weighted matrix: Matrix in which all selected customers are sited on each axes defined by one or several criteria, weighted differently on the basis of relevance or importance. The position of a customer is given by the weighted average of the customer's values for all selected criteria. YTD: The acronym for Year To Date. YTD is used in many contexts, mainly for recording results of an activity in the time between today's date and the beginning of either the calendar or fiscal year.

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7 SUGGESTED READING

Principles of Marketing
By Philip Kotler | Pearson Education | March 2005

Principles of Pharmaceutical Marketing

By Mickey C. Smith, E. M. Mick Kolassa (Editor), Greg, Ph. D. Perkins (Editor), Bruce Siecker (Editor) | Haworth Press | June 1991

Pharmaceutical Marketing in the 21st Century

By Mickey C. Smith | Haworth Press | January 1997

Marketing Strategy in the Pharmaceutical Industry

By Marcel Corstjens | Chapman & Hall | June 1991

The 22 Immutable Laws of Marketing

By Al Ries, Jack Trout | Collins | April 1994

The Battle for your Mind

By Al Ries, Jack Trout | McGraw Hill | December 2000

Marketing Planning for the Pharmaceutical Industry

By John Lidstone, Janice MacLennan | Gower Publishing Company | August 1999

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8 THE 10 KEY POINTS

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Tactical Marketing Program. Tactical Marketing Tool Kit Confidential and proprietary to IMS Health

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Tactical Marketing Program. Tactical Marketing Tool Kit Confidential and proprietary to IMS Health

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Tactical Marketing Program. Tactical Marketing Tool Kit Confidential and proprietary to IMS Health

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Tactical Marketing Program. Tactical Marketing Tool Kit Confidential and proprietary to IMS Health

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