Leveraging Social Media in the Pharmaceutical Industry - Innovation and Marketing in the Pharmaceutical Industry - page 468

Chapter 16
Leveraging Social Media
in the Pharmaceutical Industry

Venkatesh Shankar and Jiaoyang (Krista) Li

Abstract Social media and social networks are the rage these days. The healthcare
industry in general and the pharmaceutical industry in particular, are being reshaped
by the proliferation of electronic communication through social media. Consequently,
marketing practices are also evolving rapidly. Pharmaceutical marketers need a bet-
ter understanding of how social media work and how they influence marketing strat-
egy. This chapter reviews the burgeoning literature on word of mouth, in particular
relating to social media and on how social media and social networks are redefining
marketing strategy in this context. It provides a framework for analyzing the effects
of social media on patients, physicians, and marketers. It offers actionable implica-
tions for pharmaceutical companies, provides pointers to successfully develop and
implement an integrated social media marketing strategy, and highlights fruitful
avenues for future research.

16.1 Introduction

Social media and social networks are the rage these days. The emergence of social
media and the surge of social networks on different themes have transformed mar-
kets by engaging consumers through interactive communications. Unlike the tradi-
tional media for which consumers are passive recipients of messages, social media
have put consumers in control by allowing them to set the dialog agenda and influ-
ence marketing decisions and outcomes through word of mouth. Using social media,
consumers actively create and share information and experiences that invite further
inputs from other members of their social networks. Advances in new telecommu-
nication technologies and mobile devices have expedited the diffusion of social

V. Shankar ( * ) • J. (Krista) Li
Mays Business School, Texas A&M University, College Station, TX 77843, USA
e-mail: [e-mail]; [e-mail]