Hail to King Google, but why?
Google grabbed 25%
of the $15.7 billion companies spent for online ads
last year. That's almost $4 billion for a web
property where users spend less than 5% of their
time. That's right, Internet users spend less than 5%
of their time actually searching the rest of the time
they are visiting their favorite sites via bookmarks.
One has to wonder if marketers are actually thinking
about the way their customers use the Web?
OK, when searching for health information people will
probably tend to use a search engine but actually we
are seeing some trends that indicate that online
health seekers are becoming more frustrated with
search engines. I heard this loud and clear at my
last research when diabetics said that when tried to
search for information on diabetes they were
bombarded with ads for everything from ED drug
pharmacies to diabetic supply stores. Yes there are
ways to refine searches and narrow the criteria but
remember the Internet is a relatively new channel
that people are still learning.
Now consider some of the new models of behavioral
targeting that are emerging. According to a recent
article in Business 2.0 some models can tell more
about you than you could write in a 1000 word essay.
They know what sites you visit, how long you stay,
what stories you click on and can run optimizers that
run 5000 to 10000 calculations to evaluate online ad
campaigns. They can tell you if more people clicked
on a blue background of your ad than a red one..if
the ad with the man was more responsive or the ad
with the woman. This ability to laser target is what
the Internet has always been about it's just that
marketers are finally getting into better ROI models
because their shrinking budgets demand more
accountability.
Should you allocate of 25% of your online media
budget to search? That depends on a lot of criteria
such as awareness of the disease state and brand but
remember that Google can sell your brand name to
other advertisers as well for paid search. The new
models of behavioral targeting being offered by
Microsoft and Yahoo are certainly the right step but
marketers have to become a lot more savvy in
describing their audience. We can't simply go by
demographics anymore we need a detailed
psychographics profile or our target audience.
This author feels that Google has a great product and
will continue to evolve but I think they will find
that the laws of gravity apply to them and their
stock price will come way back down to earth. In the
meantime try and think like your customers before
deciding to allocate dollars on search. It may save
you a lot of money and make you look like a
hero.
Rozerem gains but still sucking wind
While the ads with
Abe Lincoln and beaver continue to air a recent
snapshot of site visits indicate that although
Rozerem.com lags far behind AmbienCR.com that it has
taken over the number two spot. That said the ads are
still horrible and many people I talk to within the
industry have quietly informed me that it will be a
cold day in hell before they ever use AT for their
DTC.
Just how bad are the ads? Well the industry is abuzz
with just bad these ads are. They don't cut through
the clutter and for the life of me anyone that can
put together that Abe Lincoln stands for honesty and
the beaver for hard work watches way too much TV.
Still Rozerem's web traffic for January has increased
but somehow I don't think this is going to translate
than a marginal share increase against Ambien CR.
These ads are so bad that when I recently talked to a
colleague who was about to send out a request for
information for a new drug she informed me that
because the Rozerem ads were in fact soo bad they
were told that if the agency that created the ads
were invited to pitch she would be replaced.
I
have seen a lot of DTC ads over the last few years
but none as bad as the Rozerem ads. I can't get over
that they are still running but then what's a couple
of millions of dollars to create the spots and buy
media to lift share marginally. The Ambien brand team
should be thankful that the folks at Takeda are
sticking with this campaign because it means that
they just sit back and have a good laugh.
Web MD Relaunches Site: They still have a lot to
learn
Web MD has
relaunched their site with a new look & feel and
many features. However one gets the feeling your
walking in Times Square and experiencing sensory
overload when you go to their home-page. There are so
many different calls to action that it's hard to
determine where to go or what to do first. This is
what happens when you try to be all things to all
people rather than look at your audience needs and
segment your message to to THEIR needs, not
yours.
I'll say this the new Web MD site is more visually
appealing than their older site but with so much
information to digest on one page its a bit
overwhelming. There are imbedded FLASH modules that
change, articles that ask you to click and
advertisements that divert your attention. Instead of
segmenting the audience and looking at how they would
want to gather information Web MD seems to want to
entice people into a maze of pages that even I have
trouble navigating.

One
of the new features is the ability to store your
health information online. I find this interesting
because in recent research that we conducted we
continually heard that patients do not want to store
their personal health information online because of
privacy issues. It seems every week we hear stories
in the media about computers with personal
information being hacked or someone losing laptops
with databases on millions of people.
I
believe that people go to Web MD to get answers on a
variety of issues that they maybe facing. I don't
believe that people would regularly go to the site as
they would sites they visit everyday like CNN.com or
Wall Street Journal.com. click stream analysis
clearly shows that when people are faced with health
issues they usually go to a number of sites like
WebMD or Mayo Clinic.com. When deciding on
prescription medications they will go to the products
website but then also might go to competitors to
determine which medication has fewer side effects.
This gathering of information is a normal process for
online health users but what I have also found is
that online health seekers can quickly become
overwhelmed with informational choices. Where should
they go and more importantly who should they trust?
When designing health websites it's important to use
the KISS principle (keep is simple stupid). Don't try
to overwhelm your audience with a myriad of calls to
action. Take off your marketers hat and think the way
your audience thinks and you will be successful in
what you do. The new Web MD site is a step in the
right direction but they need to let their users
design their site rather than the business
people.
Another Pharma Awards Conference
Someone once said
that insanity is doing the same thing over and over
and expecting different outcomes. I think that could
be applied to the magazine for DTC called DTC
Perspectives. This week in the mail I received a
flyer about their upcoming DTV National in Washington
DC. Although there are some good speakers on the
agenda again we have presentations from other DTC
marketers about their successful campaigns blah blah
blah. Rather than listen to these boring
presentations how about inviting people who stir the
soul and invite innovation. People like Steve Jobs or
Seth Godin. It's time to think about new ways to
reach consumers not recycle old "been there done
that" stories.
What makes matters worse is that during the DTC
conference there is once again an awards dinner.
"Let's pat ourselves on the back for a job we feel we
did well". This at a time when ED ads are running on
"G" rated TV shows and the industry as a whole is
coming more and more under the microscope. Where are
the innovators? Where are the people who believe that
what we do if for our patients not for the bottom
line?
I recently heard about a major drug company who is
wants to speed approval of a new drug because the
potential for off label use is great and could lead
to a windfall in sales dollars. This, unfortunately
is what drives people at pharma; the pursuit of the
almighty sales dollar at any cost to keep the street
happy and ensure that the CEO gets his millions of
dollars in bonuses. And in the back are the DTC
marketers who use the same old marketing programs to
reach people with the delusion that someone seeing a
Cialis commercial is actually going to make them
overcome all their internal barriers to seeking
treatment. That people who see an Enbrel commercial
are not going to zero in on "the potential fatal side
effects" and block the brand message.
Maybe the Democratic Congress is right..maybe the
industry can't regulate itself and needs to be "big
brothered" by the FDA. I do know that it's time for
DTC Perspectives to stop patting people on the back
for mediocrity and talk about the issues that people
want to keep in the closet.
Oooops ! ED ads in trouble again
The last thing you
expect to see when watching a family movie, like
Miracle on 34th Street, is an ad for an ED product
yet that is exactly what happened over the
holidays. In December alone,
an ad for impotence drug Viagra aired at around 9
p.m. during "Prancer," a G-rated movie about a young
girl who nurses one of Santa's reindeers back to
health; another spot for rival medicine Levitra
appeared during an afternoon showing of the comedy
"Pee-wee's Big Adventure;" and another for Cialis
graced an early-evening presentation of the holiday
classic "Miracle on 34th Street." In addition to the
questions of "why this would happen" one has to ask
"why the hell are ED marketers still using TV and
ignoring the Web? Because they are ignorant and still
don't understand today's media.
Some impotence-drug makers have recently ramped up
spending on advertising in an attempt to jump-start
the category's faltering sales -- which have topped
out around $3.2 billion a year world-wide, short of
the $4 billion some analysts had predicted by now.
Despite its aggressive cost-cutting in other
marketing areas, Pfizer spent almost $35 million on
Viagra ads in the third quarter of last year, almost
50% more than the year-earlier period, according to
the most recent data available from TNS. Spending on
Levitra quintupled in the third quarter of 2006 over
the 2005 period. Both companies had pulled broadcast
ads during parts of 2005 over regulatory concerns,
though spending on other forms of advertising
continued. Drug companies still are spending less on
the ads for impotence medicines than in 2004, when
Cialis and Levitra had just launched. Ad's on the
Internet are all but completely gone even though when
this author worked on Cialis 85% of the traffic to
the website was the direct result of online ads and
paid search.
The viral component of the Web, especially consumer
generated media, could be leverage to deliver a great
message to a relevant audience. Somehow there are
still marketers that believe someone is going to see
a spot on TV and it is going to convince them to ask
their physician about Cialis, Levitra or Viagra. Why
did they come to that conclusion? They probably have
lots of qualitative research that shows the message
is memorable or motivating. But here's a news flash
geniuses : people say and do two different things in
focus groups ! That's what happens when marketers
rely too much on market research and manipulate data
to show that TV is the right way to go. As this
author reported before the websites for Levitra,
Viagra and Cialis have only had modest updates and
none of them take advantage of new media to break
through the barriers that men have to asking for
treatment. Maybe that's why their budgets are cut so
much because someone realized that the DTC they were
using was not producing the ROI that they had
expected.
The ED category is probably one that could benefit
the most from consumer generated media. Can you
imagine a real guy talking about the personal
decision he went through to ask his doctor for
treatment and then realizing how dumb he was for
waiting too long? Not to mention the fact that he
could mention that his doctor didn't ask him any
embarrassing questions. Marketers have a lot to learn
about the new consumer and new media but the mistakes
that are being made are unforgivable and it's time to
change the people who control the dollars with new
talent that can meet the needs of consumers who are
skeptical but still hungry for information.
Can the drug industry regulate itself?
There are 150 cases
of alleged fraud by pharmaceutical companies on the
Justice Department docket. J&J recently disclosed
of illegal payments in connection with the sale of
its medical devices in foreign countries. InterMune
agreed to pay a fine of $36 million to settle charges
of "off-label" promotion of one of its drugs. What's
going on here? Well the author of this BLOG feels
that the environment in which we market is changing
and it's time to redraw the line and ensure that we
stay well clear of its boundaries.
Who are the drug companies? They are not huge
buildings on a hill with all the warmth of an ice
storm. Companies are made up of people but somehow
during the last decade the marketers that have come
into the pharmaceutical industry have done a lot of
damage.
There is always pressure to make numbers in any
company. It's what drives our salaries, bonus and
expense budgets. But why would marketers make a bad
decision that could cause harm to patients and lead
to a mountain of litigation. Knowing the way most
drug companies operate, in a matrix environment, I
find it hard to believe that any one person could be
responsible for these problems. All pharma companies
have a process for getting promotional materials
approved that involves legal, regulatory and medical
support personnel. Unless there is a broad conspiracy
by a lot of people these mistakes are the result of
bad decisions that are the direct result of people
who forgot why we are in this industry.
Bad decisions are a risk in any industry. The auto
industry is always in the spotlight for safety issues
and it seems that every day there is a recall of some
type. Consumer Reports recently had to retract a
story it ran on children's safety seats because the
company that ran the tests reported the wrong data.
All this, along with Tyco, Enron, and MCI, feed into
an ere of consumer mistrust of "the establishment".
In politics the White House now admits that the
information they used to justify the war in Iraq was
faulty. More fuel for the fire.
What this means for marketers, and the drug industry
in general, is that we now need to redraw the line in
the sand and move it more to the right. If there is
the slightest possibility that a drug, or device, can
cause a side effect we have to report to the FDA and
physicians. We can't say anymore "that we are
studying the issue to determine if there is a
correlation". We now have to warn our patients and
customers that there maybe a link and we are studying
the correlation to determine the risk factors.
I also believe that more checks and balances are
needed in the promotional process. People who approve
promotional messages need to clearly indicate that
they are approving these materials with
documentation. Brand team leaders should be help
accountable for everything that comes out of the
brand including DTC and HCP materials. More than
anyone these people need to be made aware that the
environment in which we market is hostile and one bad
decision could cost the company millions of dollars
in lawsuits. More importantly the industry needs to
be reminded why we are here: to make a difference in
patients lives.
We all receive annual reviews and it has to be up to
management to weed out marketers who make
questionable decisions. The industry has to be more
proactive in cleaning house because if we are not
Congress will be glad to do it for us and the results
will not be pretty. In recent research that I
conducted with diabetics I learned of the problem
these people had with living normal lives. It
reminded me that I need to do whatever I can to help
these people and provide answers to their concerns.
Maybe it's time for everyone to listen more to
patients and less to Wall Street to get back on
track.
Continued Ignorance of the Web
Smart, good
marketers are hard to come by these days. Smart
marketers know what drives customers to purchase
brands and they also are aware that they are coming
under increased scrutiny for every marketing dollar
that is spent. While a lot of marketers are
allocating more dollars to online and testing new
consumer generated media pharma marketers remain
stuck in the past with little being allocated to
online media and websites that are updated once in a
while. A quick look at Cialis.com shows that the
website has had no major updates, except a
relationship quiz, in over two years. Viagra's
website has gone some minor updates as has
Levitra.com. Why is this? Because somewhere in the
pharma maze there are marketers who don't get
it...who believe TV rules...and who are stuck in the
past.
Second Life.com is an example of emerging media
online. Second Life is a 3-D
virtual world entirely built and owned by its
residents. Since opening to the public in 2003, it
has grown explosively and today is inhabited by a
total of 3,659,699 people from around the
globe. Some smart brands
are starting to make the plunge into this virtual
world where people can interact with each other and
share brand experiences. While this program is still
in the early stages of its product life cycle it
opens up a whole new opportunity to savvy marketers.
The
online viral opportunity of some brands, like Cialis,
could be huge but instead of breaking new ground your
more likely to see a "36 hour" commercial while
watching cable TV. No wonder the category is in a
funk. Marketers of ED products are stumped because
they can't figure out how to get men to ask their
doctors about their brands. They think that once
someone sees a commercial on TV it will eliminate the
potential barriers that men have to overcome to seek
treatment. Now you can see why I believe that a DTC
award is more of an oxymoron than an award.
This week I received an innovation to the next DTC
National in Washington DC and of course there is
another award dinner. Pharma marketers are great at
patting themselves on the back but this industry
should not reward baby steps as much as innovation.
Too many marketers out there stuck in traditional
brand marketing cycle..spend on DTV for reach and
frequency? No wonder the ED category has not seen
major growth..the marketers who control the media
dollars are just too myopic to understand that the
way to connect brands to people is to connect with
people. Too bad....
What you won't see in today's Times
Well, well..talk
about a turn around ! It seems that the law has sided
with Eli Lilly on the leaks in the Zyprexa case. The
judge in fact labeled the reporters conduct
"reprehensible" and issued an injunction against the
attorney who leaked the information to the press as
well as an "expert witness" for the plaintiffs.
Unfortunately this may be like putting water on a
fire after it has been extinguished.
The Times did a great job of reporting the leaked
documents in front page and front business page
stories, Rather than question the motives of the
attorney who leaked this information the Times chose
to point fingers. While it is true that any neglect
on Lilly's part to hide the weight gain issue is
inexcusable the reporter obviously felt that the
millions of people who have taken Zyprexa, and are
leading better lives, were not worthy of mentioning.
He also seemed to leave out the motives of the
attorney who is in litigation with Lilly over
Zyprexa. He was obviously looking for a huge payday
and wanted to pressure Lilly into a settlement.
This story of the injunction was not covered in the
Times, at least anywhere that this author could find.
The Times has an axe to grind with big pharma that
much is obvious from its editorials and continued
negative stories. It should however offer readers
better coverage and more balanced reporting than
this. When I read the Times I now question all their
stories and with each one a great newspaper becomes
more ordinary.
It's not only what it does but how you feel when
taking it
From
Today's Wall Street
Journal: A cancer drug's
effectiveness has long been measured in two important
ways: whether it shrinks a tumor and whether it
extends patients' lives. But researchers and
regulators are paying increasing attention to another
criterion: how a patient feels while taking the
medicine
A cancer
drug's effectiveness has long been measured in two
important ways: whether it shrinks a tumor and
whether it extends patients' lives. But researchers
and regulators are paying increasing attention to
another criterion: how a patient feels while taking
the medicine.
In an important change, cancer patients' own
assessments of how a drug is working, called
patient-reported outcomes or PROs, are increasingly
part of the drug-approval process at the Food and
Drug Administration. The agency says PROs have been
integral for the approval of a number of cancer drugs
in recent years, including Amgen
Inc.'s
Kepivance for severe mucositis, mouth sores that are
a side effect of cancer treatment, and Axcan
Scandipharm Inc.'s Photofrin, an agent used in
treating precancerous lesions in Barrett's esophagus.
There
have been calls by researchers to add PROs to reports
of drug toxicity that are used during clinical
trials, something traditionally reported only by
clinicians. There is even emerging evidence that, for
patients with advanced cancer, a patient's
self-report about how he is feeling is a better
predictor of how long a patient will live than other
standard clinical data.
Traditionally,
patients' quality of life or well-being while on a
drug has been a secondary consideration, rated and
reported by researchers. But one recent study
demonstrated that clinicians tend to underestimate
subtle signs of problems that patients can pick up on
earlier; patients reporting numbness in the hands or
feet, a symptom caused by some anticancer drugs, were
able to detect the problem months before the
clinician reports did.
The shift toward PROs is important for cancer
patients, whose opinions now play a much more
significant role in determining the success of a
drug. It is driven in part by the growing influence
of the patient-advocacy movement. But it can also be
valuable for drug companies, which often invest huge
sums of money in drugs that fail because they can't
demonstrate that the drugs extend a patient's life.
With the emerging role of PROs, drugs that don't
necessarily extend life but make the patient feel and
function better have a better chance of winning
approval.
PROs have long been an integral part of trials
testing new drugs to treat conditions such as
arthritis, where patients are the most accurate
source on whether a product relieves pain. In cancer
trials, though, whether a patient lives longer has
long been the central measure by which a drug is
judged. However, in recent years, the reality began
to sink in that there weren't many new cancer drugs
that dramatically extended people's lives. The FDA
increasingly began to acknowledge that giving someone
a higher quality of life offered clinical benefits
that could lead to an approval.
What drug companies and FDA both realized is that
"changes in tumor size do not always conform with
improvement as perceived by the patient," says Laurie
Burke, director of study endpoints and label
development in the Office of New Drugs at FDA.
Eli
Lilly & Co. has used
PROs in the regulatory process for its drug Gemzar,
approved for pancreatic cancer in 1996 and ovarian
cancer in 2006. In the 2004 approval of its Alimta
drug for lung cancer, PRO data were critical in
showing that the new drug not only shrank tumors as
effectively as the existing treatment, but had fewer
patient-reported side effects. "PROs are now a
standard part of our Phase III cancer drug trials,"
says Astra Lipa, senior health outcomes scientist at
Lilly.
Patient-reported data are also becoming more
important in determining which approved drugs
oncologists will prescribe -- especially important
given the high price of cancer drugs. At a meeting of
American Society of Clinical Oncology in Atlanta last
year, Bayer
Pharmaceuticals Corp. and Onyx
Pharmaceuticals Inc. made a point of presenting
patient-reported data on their new kidney-cancer drug
Nexavar, demonstrating the drug improved the way
patients perceived their own health-related quality
of life. (In the case of Nexavar, the PROs weren't
submitted for the FDA approval process because the
trial had early success and there wasn't time to
evaluate those data. The drug, the first new
kidney-cancer treatment approved in a decade, was
shown to double the time before the disease got
worse, compared with a placebo.)
Last
year, the FDA issued a set of guidelines as to how
the agency will evaluate PROs during drug approval;
the final version is expected to be issued in the
coming months. The guidelines emphasize that patient
responses should be relevant measures of whatever is
being tested, and raised concerns about the
credibility of the PROs in cases when patients know
they are getting an active drug, because patient
responses are subjective.
In a 2005 paper published in the Journal of the
National Cancer Institute, a group of researchers
associated with the Radiation Oncology Therapy Group
studied whether short-term radiation therapy was as
effective in alleviating pain in patients with cancer
that had spread to their bones as the standard
course, which was longer and involved higher doses.
By asking patients to rate how much pain they felt
and how much pain medicine they needed, doctors
concluded that shorter and lower doses of radiation
were just as effective. Deborah Watkins Bruner, one
of the authors of the study and a professor of
nursing at the University of Pennsylvania, says the
trial was a case study in the way PROs "can provide
evidence for important clinical changes."
The trial also demonstrated some of the challenges of
using patient information: 160 of the 845 patients
died or were too ill to fill out questionnaires after
three months of therapy. Even of the patients who
were able to provide the data, only 84% participated.
Ms. Burke at the FDA, says the problem of "missing
PRO data can't be ignored," and is especially
challenging in a disease like cancer where many of
the patients on a trial are likely to die. She said
the agency was asking companies to start working with
FDA on finding ways to deal with this issue as early
as Phase I of drug trials, when companies are still
only testing a drug in small numbers of patients for
safety issues.
Patricia Ganz, the director of the division of cancer
prevention and control in UCLA's cancer center, says
that all measures of how patients are faring have
problems. Blood-pressure readings can be different
depending on who is taking them. X-ray results may be
interpreted differently by various radiologists. It
isn't always easy to calculate exactly how much a
tumor has grown using CT scans. In her own research
and clinical experience, she says, "physicians are
very poor at predicting how long someone will live"
using standard clinical information. In a study she
and her colleagues conducted of patients with
advanced lung cancer, she said that patient
self-reports of their quality of life were a more
accurate predictor of survival outcome than physician
or laboratory assessments of prognosis.
David Cella, executive director of the Center on
Outcomes, Research and Education at Evanston
Northwestern Healthcare in Evanston, Ill., says drug
companies aren't going to be able to stray too far
from the issue of whether a drug has an impact on a
tumor. But Dr. Cella, who helped develop the
questionnaire used by Bayer and Onyx in the Nexavar
trials, says he noticed that patients and physicians
often had different priorities in assessing a drug.
Known as the Functional Assessment of Cancer
Therapy-Kidney Symptom Index, the questionnaire
included questions chosen by both patients and
clinicians. In the final list of questions, the top
eight chosen by patients included whether they were
able to work and whether they lacked energy.
Questionnaire items chosen by clinicians -- and not
ranked highly by patients -- included treatment side
effects, bone pain, shortness of breath and coughs.
Dr. Cella's group has created 10 other patient
questionnaires targeted to specific cancers.
At Bayer, which supplied a grant to help develop the
new index, Kathleen Gondek, the head of Global Health
Economics and Outcomes Research at the company, says
that "traditional measures" are necessary in
evaluating drug efficacy. But, she adds, "what we
have embraced is the understanding that how a patient
feels and functions may be equally important."
The experience of Robert Eppinger, 72, demonstrates
how important quality of life can be to patients. He
enrolled in the Nexavar trial in 2005 for advanced
kidney cancer. On the drug, his tumors have either
shrunk or held stable, and although Mr. Eppinger, a
retired office-furniture developer in Stamford,
Conn., said he would prefer a "cure," he still feels
well enough to continue activities such as going to
the theater. "To find out that I could maintain a
relatively normal life began to make me feel a lot
better," says Mr. Eppinger.
Charting the course in a sea filled with sharks
The return
of Michael Dell, as CEO of Dell Computers, was hailed
as good news by Wall Street which is ironic because
the problems at Dell were primarily caused by trying
to please the Street. CEO's today not only have to
please shareholders but more and more have to cater
to Wall Street analysts who don't understand the
meaning of the word strategic and all too often are
focused on short term outlook rather than long term
growth. This is especially true in the pharma
business where CEO's are caught in the middle trying
to please MBA analysts while focusing on the longer
term outlook of their companies.
Pfizer's recent decision to trim up to 20% of its
employees was due to some bad news. First a successor
to their blockbuster Lipitor failed in clinical
trials and second most of their top sellers, Zoloft
& Lipitor, are due to come off patent in the near
future. What better way to ensure the stock stays
attractive than to layoff people? Eli Lilly recently
announced another settlement in the Zyprexa
litigation and the completed purchase of Icos, the
biotechnology company that they comarketed Cialis
with. With all this money flowing out Lilly has had
to tighten its belt to ensure that they meet the
Streets expectations. To do this I am sure that a lot
of programs will be cut including investment in
R&D. While this will keep analysts happy now it
may mean trouble 5-10 years down the road.
I am an avid reader of business magazines, websites
and books and one thing is becoming more apparent to
me: great leaders are hard to come by ! CEO's are
treated like rock stars with perks that range from
private jets to exclusive residences. If they stay
on, even for a short period of time, they can leave
with golden parachutes that ensure they never have to
work again. They know that while they are there their
goal is to ensure the stock remains attractive even
if it means making bad short term decisions. Have 5
drugs in the pipeline? Well we can only afford to
fund two for clinical trials and further development
so let's pick the two with the biggest potential for
ROI. The problem with model of course is that drugs
were never looked at in terms of ROI it was always
about patients.
Great leaders have a vision of where they are going
and how they want to get there. They are not afraid
to go against the prevailing winds and chart a course
for new markets. It's too bad that most pharma CEO's
spend more time looking at the numbers than with
their customers because what we do is so important to
extending life and providing a better quality of
life. Maybe it's time to remind them that the reason
we're in business is for people...not banks.
People buy experiences not brands
Why is it that
Starbucks, after continually failing taste tests, can
command a premium price for a cup of coffee? Why do
Starwood hotels have the highest ROI per square foot
of rooms compared to Marriott? The answer is that
these two companies provide their customers with a
superior customer experience. People today don't buy
brands..they purchase experiences and if your not
charting the touch-points with your customers then
you are wasting time and money.
From the fist time your customers see one of your DTC
commercials to when they go to your product website
your customers are engaging in the brand experience.
If it's not a positive interaction for them what do
you think is going to happen? Marketers don't focus
on this today because they are too busy doing other
things but if you chart the customer experience with
the brand it can identify potential customer dropouts
and help you develop interventions to ensure that
these dropouts are minimal. It costs too much money
to get customers to interact with your brand for
marketers to ignore the touch points yet in my
conversations with other DTC marketers that is
exactly what is happening.
Starbucks knows that people come into a Starbucks for
the brand experience..it's rewarding and something
that they do for themselves. It's also cool to walk
around with a Starbucks coffee cup. Starwood hotels
continually promote the "heavenly shower and bed"
which entices business travelers who want to escape
the daily hassles of travel today. Because of this
superior brand experience they are able to command
premium prices and own a position in consumers minds.
Pharma companies have not adopted a model like this
often because they have to deal with a matrix
department to chart the customers experience with the
brand.
There are those who believe that customers are not
emotional about pharma brands and to them I say
simply "untrue". All brand choices are emotional.
Let's take the statin category for example; there are
a range of products that are all competing for a
share of this market from market leader Lipitor to
Vytorin. Yet type Lipitor into Google and you will
see a host of consumer generated media sites that
tell people of their horrible experience with
Lipitor. Rather than reach out to these people Pfizer
continues to ignore them and a risk that their voices
could become louder and sway people to competitors.
The best way to ensure that marketers understand
their customers is to simply chart each interaction
with the brand. What do we want to have happen and
what is happening now? How can we ensure that we
execute flawlessly to ensure that each touch point
with our customers is a positive one? The market is
getting just too competitive today for marketers to
ignore the brand experience. It's time to think like
consumers instead of marketers..
Understanding CRM: Why pharma doesn't get it
Customer
Relationship Management, we all talk about it but
very few pharma companies do it and do it well. There
is a wealth of information in your database but
before you start data mining you have to know what
the key business drivers are that can motivate your
customers.
Forming a relationship with your customers is not
easy. As people become more familiar with using the
Web, and eMail, they are becoming more and more
careful about whom they form a relationship with.
Most pharma companied focus on new Rx's rather than
increasing the lifetime value of current customers.
They don't understand that in order to form this
relationship they have to identify the value
proposition that will get customers to raise their
hands and say "yes, I want to have a relationship
with you". We also should remember that each segment
within your market may have a different need and thus
segmentation of messaging within CRM is essential.
It's
also important to identify trends within your
segments, develop messages for each segment and
deploy your CRM programs with speed and quality. If
your product, or disease condition, is in the news
then take advantage of than to talk and engage your
audience. Don't wait three months until it's old news
do it now and do it quickly is the key to a great CRM
program. Marketers often overlook people who have
opted in for information from your company. These
people can provide a wealth of information from
product packaging designs to competitive programs
that are capturing their attention.
CRM is not easy to implement but if you have the
right people in place it can provide valuable
insights and help your brand meet it's business
objectives. It's time for pharma to stop thinking
about new Rx's and look at ways to keep current
customers happy, and that is what a great CRM program
can do.
American Heart Association Misses Mark with Superbowl
Ad
Surely the folks at
the American Heart Association could have found a
better way to spend $2.6 million than the "your at
risk" spot that ran. I can just see it now..let's
leave the most exciting game of the season to see if
I am at risk to get heart disease. Give me a break.
The problem is that with $2.6 million allocated to
online targeted media the AHA could have driven 1
million people to its website and more importantly
informed people as to the dangers of heart
disease.
By all accounts the TV spots on this years Superbowl
were not exciting or entertaining. Creative people
have taken over instead of marketing people and when
that happens you get spots that may cut through the
clutter but don't drive business. The Budweiser spots
are a prime example. Although I feel that they are
very creative they don't make me want to go out and
purchase Bud and that is the driving issue with TV
ads today. The commercial for the AHA was bad and
misplaced. The website does have a nice interactive
tool but I can assure you that not a hell of a lot of
people want to go online to find out that their couch
potato lifestyles could lead to heart disease. This
is what happens when you think of what you want to
"push" to online customers rather than acknowledge
that the Internet is a "pull" customer content driven
channel.
$2.6 million was the going price for a 30-second spot
at the Superbowl. What idiot thought that while
people are sitting in front of their TV's eating
dinner or munching snacks that a reminder of heart
disease would cut through the clutter. That is like
trying to sell membership for AARP on MTV ! This my
friends is what happens when common sense it
overruled by corporate politics and media planners
whose job it is to get the client to spend as much
money as possible rather than engage and reach a
targeted audience. Shame on the people at the AHA for
such a bad move and wasting $2.6 million.
A prime example of whats wrong with Pharma (Gardasil)
Gardasil is getting
used less than doctors would like. Pediatricians and
gynecologists from Arizona to New York are refusing
to stock Gardasil because of its $360 price for the
three doses required and "totally inadequate"
reimbursement from most insurers. Rather than Merck
working with physicians and insurers to resolve this
problem they are using the standard reply "Merck,
which notes Gardasil is covered by 96 percent of
insurance plans, recently added Gardasil and its
other adult vaccines to its patient assistance
program, but only about 800 doses total were given
away in the last three months of 2006". This is a
prime example of what's wrong with pharma and adds to
the public perception that pharma is only in it for
the money.
According to CNN:
Many practices must tie up $50,000 or more in
vaccine inventory, run multiple refrigerators,
insure the vaccines and spend lots of time on
inventory management. They also must absorb the
cost of broken or wasted vials and say that's not
possible with most insurers reimbursing at just $2
to $15 over the $120 per dose charged by Gardasil's
developer, Merck & Co. of Whitehouse Station,
New Jersey "Doctors are drawing a line in the sand
on this. They're either not giving it or requiring
a surcharge," said Dr. Daniel Schwartz of Broadway
Pediatrics Associates in Westport, New Jersey,
which charges patients a $25 surcharge per shot.
Dr. Jill Stoller of Chestnut Ridge Pediatric
Associates in Woodcliff Lake, New Jersey, said the
inadequate insurance reimbursement for Gardasil is
keeping "a wonderful new vaccine" from many
patients. "It really is a shame," said Stoller, who
also assesses a surcharge
.
Pediatricians and gynecologists at solo and
large group private practices contacted by The
Associated Press said they would, at best, break
even if they stocked the vaccine. Most will give
patients a prescription to get filled and bring
back, but that could cost patients far more. "I
don't know where to turn," said Julie Falco, a
Marlboro, New York, elementary school teacher
trying to get her 13- and 15-year-old daughters
vaccinated. Her pediatrician, Dr. Herschel Lessin
told her his 20-doctor Children's Medical Group in
Poughkeepsie, New York, can't afford to stock
Gardasil. Lessin said insurers paying their
executives millions won't give him $25 to cover his
costs, but will spend tens of thousands if a
patient develops cervical cancer.
His practice will provide prescriptions but
warned Falco her insurer might not reimburse her
and pharmacies might mark each dose up to $200.
Falco then tried her gynecologist, who sent her
back to the pediatrician. "I still don't have the
shot and now I have to decide whether I want to
make a $1,200 investment to get them vaccinated,"
she said. "I really don't want to deny them what I
think is right." Dr. Michael Blum, senior partner
in a big pediatric practice in suburban Kansas
City, said it only provides Gardasil to patients
who pay $450 up front, then tries to get insurance
reimbursement for them. Only a half-dozen patients
have done so.
Dr. Kathleen Moore of AppleTree Pediatrics in
Tyler, Texas, said as a solo practitioner she not
only can't stock Gardasil but can't afford it for
her own 12- and 13-year-old daughters. When she
explains the situation to patients, "they all say
'We'll be happy to wait,' because they can't afford
to pay for it either."
What a shame that the company whose founder
said
"We try never to forget that medicine is for the
people. Not for the profits. The profits follow,
and if we have remembered that, they have never
failed to appear
". In this case
Merck seems to want to put profits ahead of good
medicine and that my fellow readers is nothing short
of a shame.
Didn't take long for the new Congress to take aim at
pharma
Congress is kicking
off efforts to pass big reforms of the Food and Drug
Administration, and that could produce some bitter
pills for the pharmaceutical industry: potentially,
tougher safety rules and provisions to reduce the
cost of medicines. Tying new reforms to the FDA's
budget the Congress wants to give the FDA more
enforcement power but the real question is how can
this be done without adding another layer of
government bureaucracy.
One thing I believe
about politicians; they will say anything to posture
for the media. Logistics don't matter t them, that's
someone else's responsibility. Among the provisions
of the new bill is a measure to restructure the FDA
to create a Drug Safety Center. This unit would have
the power to alter labels (including a black box
warning) on approved drugs if ongoing clinical
studies suggest that there maybe some safety issues.
What concerns me about this whole process of
development of "new guidelines" is the fact that the
senators who developed these programs did not reach
out to the pharma industry leaders to reach a
consensus that would benefit both benefit and protect
patients. They went off into their own little worlds
and developed these proposals without considering the
consequences of their actions.

As
this author has said all along there are changes on
the horizon for the drug industry but the issues are
complex and far reaching. Poll's continue to show
that the public is getting fed up with posturing and
lip service, they want people to work together to
find solutions for all of us. Pharmaceutical
companies continue to be targeted by the media and
Congress and who can blame them. All we see on TV are
commercials with the CEO of Merck telling us how the
company is committed to developing great drugs at a
time when they are in the headlines with Vioxx
litigation or Pfizer talking about innovation in new
drug development when they are laying off 10,000
people and have had a major new drug fail in clinical
tests.
Again this author believes that the pharmaceutical
industry needs to circle the wagons and inform a
skeptical public about the expense of developing new
drugs and the number of people worldwide who are
leading a better quality of life thanks to todays
prescription drugs. If the pharma industry does and
says nothing than they had better be prepared for the
consequences that will, I believe, limit their
ability to compete in an increasing competitive
marketplace.
Listening to my customers
This week we
conducted two days of qualitative market research to
listen to our customers. Although I believe that a
lot of marketers spend way too much time and money on
market research it's great to get out and listen to
our customers to see what's on their minds. What I
found was that they are more than willing to share
their opinions and insights about diabetes, today's
health care environment and the Internet.
Nearly all of the people participating in the focus
groups turn to the Internet for health information
but they also seem to be frustrated with the
"clarity" of that information. All too often they
find the information confusing and hard to understand
even on sites like Web MD. We also heard that they
tend not to trust manufacturers sites because "they
will only tell you the good things not the bad". We
heard this both days from all our groups. They want
to be able to compare products against each other and
are very frustrated that they usually have to go to a
number of different sites to get that information.
Content is king on websites and we heard from a
number of people that a lot of the content on
product.com websites is hard to understand.
We then did an interesting exercise, we let them
design our new website home-page and then they
presented the home pages to the other people in the
groups. This was enlightening because the Web is
about what users want not what marketers want them to
see. What was funny was that they quickly switched
hats from consumers to marketers saying things like
"we want our visitors to go here". One thing became
apparent though..I want what I want and if I can't
find it on your site I am going to leave and go
elsewhere.
Not
Happy With Their Doctors
One would think that their physicians would offer
advice on medications and or medical devices but we
found the opposite. All too often HCP's just gave
patients brochures or told them to go to the Web to
answer their questions. In fact on woman was as bold
to say that "all doctors are whores" when asked about
getting health information from their HCP's.
Obviously she has had a bad experience with her
doctor but people want to talk about their health
issues and more importantly talk to each other. This
is where the Web can play a big part in bringing
people together to share their experiences. Our
subjects continually expressed the desire for patient
testimonials but only if they were real and not
"edited". "I want to know what happens the good and
the bad experience" said one person, and the others
were quick to agree. The Internet can be that channel
to bring these people together but I am sure that the
legal and regulatory people are going to have
something to say about that. Still I am going to move
forward with this goal..I went as far as to invite a
person from my legal team to the research and she
said that it was "highly enlightening" and that I was
right we have to find a way to make it happen for the
benefit of our patients. For the benefits of our
patients....that to me is what it's all about.