Marketing Spending Models - Innovation and Marketing in the Pharmaceutical Industry - page 551

provide financial support to selected physicians who are willing to report on their
observations of a promoted drug within a patient sample. Since such studies are not
considered independent medical studies, this type of marketing activity may be
criticized under ethical norms. Finally, pharmaceutical companies use direct mail-
ings to inform physicians about new drugs, therapies, etc.
Marketing activities that are directed at the patient/consumer are only allowed in
a few countries such as New Zealand and the USA that relaxed its restrictive policy
in 1997. DTC advertising covers the classical media, e.g., print media, TV and
broadcasting, and the new digital media. In countries where DTC advertising is not
allowed, companies use below-the-line activities such as general PR campaigns on
disease programs and therapies to reach the patient. Generally, mentioning the
drug's name is not allowed in such campaigns.
Finally, I note that promotion tactics that are directed at stakeholders other than
physicians and patients have emerged over the last years. Among those tactics are
detailing directed at pharmacists, practice nurses, and managed care providers.
Depending on the drug category and the structure of the healthcare system in a
country, these groups gain influence through their role as gatekeeper. In the diabetes
care business, for example, a large share of the detailing budget is invested into
practice nurses and pharmacists because these groups often recommend the blood
sugar meter to the patient. Finally, pharmaceutical companies spend money on cor-
porate public relations.
Today, several commercial vendors collect information on pharmaceutical
expenditures in high quality and with a broad coverage of categories and countries.
Well-established databases are the CAM database by CEGEDIM, S.A. ( http://www.
cegedim.com ), the Verispan database by SDI Health LLC ( http://www.sdihealth.
com ), and the MIDAS database by IMS Health Inc. ( http://www.imshealth.com ).

19.1.3 Industry Facts on Marketing Spending

Table 19.1 displays an excerpt from the Ad Age's list of top marketing spenders in
2009. Unsurprisingly, consumer packaged goods companies such as Procter &
Gamble, Unilever, and L'Oréal lead this list. Interestingly, we find 11 pharmaceuti-
cal companies or 11 %, respectively, among the top 100 global marketers. Pfizer and
GlaxoSmithKline spent US $ 1.83 billion and 1.63 billion, respectively, on advertis-
ing alone. The other firms in this list spent at least several hundred millions of US
dollars.
Advertising expenditures are important but by far not the leading marketing spend
category for pharmaceutical firms. Figure 19.1 shows the development of detailing
expenditures, DTC expenditures, and expenditures on professional journal advertis-
ing in the USA. The lion's share of the marketing budget is spent on physician-
oriented activities, whereas detailing covers more than 90 % of these expenditures.
It should be noted that this statistic does not include the value of distributed free drug
samples and expenditures on other activities such as postmarketing surveillance