Posts Tagged ‘Pharmaceutical marketing’

Can Pharma Marketing Hope to Create Brand Advocates?

February 11th, 2010

The holy grail for any marketer is to create “brand advocates.”  This is especially important for pharmaceutical companies.  Piles of research have demonstrated that a brand advocate wields disproportionate influence over their peer group, serves to extend a company’s presence and humanize its image.  For healthcare companies where patient health is the central issue, a personal brand advocate is priceless.  Health is personal and patients seek the counsel of others that have had similar experiences.

This dynamic occurs fundamentally because of the presence of trust between the brand, brand advocate and “would be” customer.  Therefore, to secure brand advocates, the relationship must be built on trust.  It stands to reason then that marketing programs should be built on trust, not persuasion.

When people consider the purpose of marketing they generally think of a company attempting to convince a prospective customer that its product is the best available product on the market.  This is a relationship built on persuasion.  Relationships built on persuasion rarely result in cultivating brand advocates.  With such a disconnect, it is plain to see why converting customers to brand advocates remains the holy grail.

In Principles of Advertising & IMC, by Tom Duncan, the idea of securing brand advocates is described as a linear process.  The first step in that process is for a customer to have some level of awareness with the brand.  From there, you would like that customer to identify with the brand and then feel connected.  Once you achieve those three steps, the hard work begins.  If you have a customer that feels connected with the brand, you ideally want that person to feel like they belong to a community.  And of course, the last step is converting community members into brand advocates outside that community.  In a marketer’s world, an easy way to think about this might be within the context of the sales funnel.  A lot of your customers enter the “brand advocate” funnel based on awareness but only a few come out the other side as advocates.  The trick is figuring out how to widening the bottom of that funnel to allow for a higher conversion rate of brand advocates.

As part of this process, a marketer needs to start at the desired outcome and work backwards.  As mentioned earlier, this means forming relationships that are built on trust—not persuasion.  For the pharmaceutical industry, which has a checkered past with its customer base, this point cannot be understated.  Relationships built on persuasion always feel coercive at best and adversarial at worst.  Pharma companies certainly do not want an adversarial relationship with patients, doctors or insurance providers.  That simply won’t yield brand advocates.  But given the current marketing tactics in favor, won’t it be difficult to foster relationships built on trust that yield brand advocates?  BINGO!

The very nature of most marketing techniques is built on persuasion or convincing a customer.  This won’t work.  That’s not to say that traditional advertisements and other forms of marketing are ineffective.  It simply means that the ad in question should be developed not based on persuading a customer, but on demonstrating why you should be trusted as a brand.  It’s subtle difference and will include similar messages—but the delivery will ultimately be different.  In addition, marketers will need to judge the mix of their marketing budgets moving forward in the context of whether or not they are building trust (i.e. long-term customers) or merely twisting a customer’s arm (short-term buyers).

A story in MediaPost yesterday highlights a survey of marketers that indicates 66% expect their digital marketing efforts to increase.  Why?  There is no shortage of reasons but I would venture to guess that part of it is marketers are coming to an awareness that trust cannot be built on the shoulders of advertising alone.  Relationship marketing requires a much more intimate connection with the brand than is offered through mass media.

Widening that funnel is about trust at its core.  How you get there is still debatable but I can assure you that the companies that realize relationship marketing is a top priority will figure out the path sooner than others.

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Comparing Social Media to Pharma Sales Reps

January 25th, 2010

Relationship marketing is really nothing new in the world of pharmaceutical companies.  For decades, the industry has relied on the ability of its sales reps to form lasting relationships that pay off in the form of increased prescriptions.  Say what you will about how the reps cultivated those relationships, but the fact is, they were able to tailor their information delivery to what doctors were seeking.

In recent years, the pharmaceutical industry has sought to regulate how those relationships are formed by cutting back on tchotchkes, expensive lunches and other ethically questionable practices that influence prescription writing.  Just today, the news circulated that New York Governor, David Patterson, was seeking to eliminate the practice of providing gifts to doctors after an office visit.  In some ways, this mirrors the voluntary code of ethics adopted by Big Pharma a little over a year ago.  However, others argue that the new limitations that Governor Patterson seeks to impose are too rigid and eliminate the ability of the sales rep to deliver his key value—education.  It’s an interesting conundrum: how do you allow the free flow of information to ensure access to the best sources available while at the same time curtailing the types of seedy relationships that place undue pressure on doctors?

Before you answer, ask yourself an additional question: is this problem all that different from what pharmaceutical marketers face when entering the world of social media?  To be an active participant in social networks, the key skill you need to possess is the ability to form relationships.  For a pharma company, the biggest value they can provide patients and doctors online is information.  In much the same way that sales reps face regulations on their relationship-building practices, pharma marketers will inevitably be faced with the same ethical questions.  But you knew that already. That is the primary reason why the FDA has started to pay attention and is certainly the reason why many pharma companies are skittish about launching a social media initiative.  The more pressing question is: how do you establish boundaries that govern a pharmaceutical company’s ability to provide information without crossing regulatory guidelines?  Can impending guidance from the FDA actually make it more difficult for pharma companies to get information it the hands of patients as a result of strict regulations?

There is no easy answer.  On the one hand, as a social media advocate, I believe that the primary value a pharmaceutical company can provide is information.  Impending regulation that prohibits the company’s ability to do that may ultimately harm the patient in the long run.  On the flip side, I also realize the importance of governing this industry given what is at stake and by no means would advocate a wild west atmosphere of lawlessness.

Yet still I struggle, how far is too far when it comes to restrictions on pharmaceutical companies?  In the offline world, there are hordes of honest, hard-working sales reps that feel they are providing a service in the form of information.  Regulations such as those proposed by Governor Patterson make it far more difficult to provide that service.  Online, we strive to provide that same service while at the same time thumbing our nose at the tactics of sales reps.  Where is the line between providing information and breaking an ethical code of conduct?  In some cases, the line is not always clear.

We often trumpet the arrival of social media as the newest tool in a marketer’s bag of tricks.  But it’s merely an extension of what has been taking place for decades at pharmaceutical companies—building relationships based on providing value to the target audience.

I have my own thoughts on why social media is different from the relationship marketing of years past, but would be curious to hear your feedback in the meantime.  I’ll post my ideas tomorrow on why social media is a new form of relationship marketing and how the ethically questionable tactics—regardless of guidance—will be rooted out.

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Don’t Write Off Traditional PR Entirely for Social Media

January 14th, 2010

It’s no secret that social media is the trend of the day in pharmaceutical marketing.  A combination of constant evangelism on the part of social media wingnuts (I mean advocates), an uptick in real-world examples from pharma companies and the FDA public hearing has vaulted social media into the limelight.  Since attaining such prominence, social media seems to have a stranglehold on the marketing discussion (or maybe it’s that whole echo chamber thing I posted about).  But the limelight can be so bright that it causes you to miss other things right before your eyes.

If you haven’t picked up on my thinly veiled metaphor just yet, social media is the bright light in this case.  In recent months, social media has been relegated to shiny object duty.  It’s the marketing tactic of the day being waived before pharma executives at every strategy session to increase patient engagement, raise brand awareness and break into new markets.  That’s a good thing.  The level of conversations that are occurring regarding social media is encouraging.  It indicates that pharmaceutical companies are slowly but surely buying into its potential.  But there is a fine line to walk between realistic potential and hype—we are getting dangerously close to the edge.

Social media enters into the hype zone when it causes otherwise level-headed marketers to write off alternative, viable marketing tactics.  And if they are not written off, they are certainly placed on the backburner.  As an aforementioned wingnut, I believe in the value of social media as much as the next guy.  But social media CANNOT exist in isolation.  It has to be conducted in the context of a larger marketing strategy that includes a broad range of tactics.  I’m a PR guy.  In fact, while I tout the benefits of social media on a regular basis, a large chunk of my work is dedicated to so-called traditional PR.  That’s right, writing press releases, reaching out to editors and forming relationships with the main-stream media.  Can you imagine?

(Warning, here comes a small commercial, bear with me, I think it is relevant).

At my agency, SHIFT Communications, we describe ourselves as a hybrid agency in the sense that we do both traditional PR and social media.  I think that’s crucial.  We do this not so we can sell both services, but because we firmly believe that social media, and traditional PR should happen in concert, not in isolation.

Social media is important.  It will only grow in importance as companies become better at engaging with relevant communities.  But remember, social media should not happen at the expense of the remaining parts of the marketing mix—even traditional PR.

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Pharma Social Media: There is No Easy Road

January 7th, 2010

Let’s get this out of the way: social media for pharmaceutical companies is hard work.  There I said it.

Far too many people suffer from the misconception that social media is simple and merely a question of value.  “How hard can Twitter really be—it’s only 140 characters?” “My daughter can master Facebook; surely I can make it work.”  Or worse still, “All I need to do is come up with a few good corporate messages and then proliferate social networks with them—think of how many people will see it!”

The latter statement is the one that keeps me up at night.  When engaging in social media, pharmaceutical marketers are faced with a choice—take the easy route or the longer, more difficult road.  As I mentioned in my previous post, the easy route in social media is tempting.  Instead of taking the time to form relationships, learn the landscape and provide meaningful commentary, pharmaceutical marketers can simply broadcast a canned message to the masses.  Of course, this isn’t really social media but that may not matter.

We’ve reached an important, dare I say, tipping point in social media for pharmaceutical companies.  We’ve moved passed the evangelism stage to a point where many pharmaceutical companies are actively weighing and pursuing some form of social media engagement.  As they do, will they be tempted by the lure of the easy route in search of quick hits?  Or will they take the methodical, strategic approach?

The answer to the question depends on how the social media marketer approaches the medium in the first place.  It is important to remember that social media is not a silver bullet.  It cannot cure all the ills of the checkered marketing past of pharmaceutical companies.  Social media is not a quick fix.  Relationships in the real world are hard work (just ask my wife who has to deal with me).  All relationships take commitments, dedications and honesty.

Social media is no different.  And like any meaningful relationship—when it works—boy is it rewarding.

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