Evaluating DTC spend levels

Aug/16/2008 01:14
screenshot_01
There are so many variables to evaulate when launching a new pharmaceutical product but where do marketers start? Well in today’s environment all marketers have to be prepared to justify every dollar they request. Awareness alone does not necessarily translate into sales especially in the complex environment of pharma marketing. A great place to start it with a BASES simulated test market and DTC message evaluation. With BASES it’s easy to input some variables to determine the potential impact on sales, and the brand. However, remember that the market is changing rapidly today and a simulated test market and DTC message evaluation don’t mean much without perfect execution.
When your product is in clinical phase III, and your marketing team is preparing for launch what and how do get your market forecasts? A lot of pharma companies utilize the “BASES Rx Forecaster” service to support a successful launch planning. BASES provides your team with critical insights in three important metrics:
1. Volume Potential Developed by analyzing actual physician response and by marrying that response to in-market behavior, this BASES service provides reliable forecasts for the market potential of a new therapy.
The thorough volumetric assessment of a new product launch includes:
  • Sensitivity analysis on marketing plans, managed care, competitive impact et al.
  • Period by period volume build, throughout Year III.
  • Volume contribution from physician and patient types.

PP3yr
PPpatienttype


2. Normative Database Benchmarking
Customers’ (physicians, patients, or other relevant Health Care providers) interest in a new drug is captured via a core set of questions, commonly referred to as BASES Key Measures. BASES R&D shows that these Key Measures are systematically linked to actual in-market behavior. As these Key Measures are consistently used in every BASES project, results can be data-based and compared across studies, categories and countries.
Normative database benchmarking effectively allows for evaluating overall strength and opportunities for improvements of new products.
Also, database results indicate potential volume levers: While physicians might indicate the desire to write your therapy, their claimed speed of adoption might be relatively low -- does this indicate that physicians are concerned about the efficacy of the therapy? Or, are they more worried about your side effects? Or, are they just satisfied with the current suite of therapies in the treatment area? BASES' analytical team will help you understand why the data is what it is.

PPKeymodelinputs
PPaltbrand

3. Diagnostics
With the diagnostic analysis, BASES provides brand teams with a thorough understanding about what drives or limits physicians interest, and thus gives marketers and brand teams insights in how to optimize the message to physicians or consumers.
Common diagnostic issues they explore:

  • Understanding from which competitors the new drug will most likely source volume from.
  • How physicians perceive the new therapy compared to competition? How does the new drug differentiates itself from competition?
  • Which attributes/benefits most strongly affect physicians’ adoption, and on which attributes should communication focus on to maximize prescribing/usage levels

What I really like about BASES however is the DTC ROI evaluations. With great input they can provide you with the correct level of DTC spend to meet sales objectives. This includes how DTC ads can be improved and the optimal level of DTC spend. Believe me these come in handy when you’re meeting with management to try and get initial funding for your product.


PPoptDTC-1




PPDTCadconcept-1




It’s sad that, while today, it’s harder to get money for DTC programs that more DTC managers don’t use BASES. It should be required for every major product launch. Yes it can be expensive to use BASES on a regular basis but isn’t the extra money worth a reduction in risk?

|