Marketing Spending Models - Innovation and Marketing in the Pharmaceutical Industry - page 550

Marketing spend categories

Physician-
oriented

Patient-
oriented

Oriented at other
stakeholders

Detailing at
pharmacists

Detailing Other

activities

Advertising
in professional
journals

„Below the line“ -
activities (e.g., PR
campaigns)

Direct-to-
Consumer
advertising

Detailing
at managed
care providers

Specialists

Detailing at
practice
nurses

General
practitioners

TV

Radio

Hospitals

Corporate
public
relations

Out-
door

Product
samples

Direct
mailing

Medical
education

Postmarketing
surveillance
studies

E-activities Print

Digital
media

Fig. 19.2 Pharmaceutical spend categories

neurologists. Hospira sponsors the global online community of hematologists.
The platform allows internationally scattered key opinion leaders to connect, share
insights and questions.

19.1.2 Pharmaceutical Spending Categories

Because of the high degree of industry regulation it might appear that promotion
activities are not very differentiated. The opposite, however, is true as Fig. 19.2
shows. Communication and promotion activities comprise tactics focused at physi-
cians, patients, and other stakeholders such as pharmacists, healthcare insurers,
regulators, etc. Communication efforts directed at physicians still account for the
lion's share of the marketing budget in the pharmaceutical industry (Manchanda and
Honka 2005 ; Neslin 2001 ; Wittink 2002 ). These efforts include personal selling
activities by sales representatives (detailing) that target different groups of physi-
cians: general practitioners, specialty physicians, and hospital-based physicians.
Sales representatives discuss 1-3 products during a typical visit and often leave
drug samples. Advertisement in professional journals is another physician-oriented
communication activity. In addition to these traditional activities, a number of other
activities have developed. Medical education encompasses invitations of physicians
to conferences, symposia, and other professional events that allow strengthening the
relationship with target physicians. Similar relationship-oriented motives are
associated with postmarketing surveillance studies. Pharmaceutical companies