Question

Marketing to physicians is still the dominant paradigm for most pharmaceutical companies, "direct-to-consumer" (DTC) marketing has increased dramatically in recent years -- but with mixed success. Based on your understanding of consumer behavior, what steps do you believe pharmaceutical companies should take to improve their DTC investment returns? What objectives should they have in mind for DTC marketing programs? Should pharmaceutical companies intensify their efforts to understand consumer behavior? If so why? If not, why not?

Answer 1

First understand what is DTC Marketing

What Is Direct to Consumer Marketing?

MEANING

• In a traditional retail landscape, manufacturers are pretty limited in the ways they can reach consumers. Catalogs and mail-order purchasing have existed for a long time, but more often, manufacturers would sell their products at wholesale prices to retail stores, who would then sell them at retail prices to consumers who shopped at their physical locations.
• In a direct to consumer model, the middle man gets cut out. Manufacturers are able to reach their target consumers directly, marketing their own products that consumers can buy (often at lower prices because they’re wholesale). Where this could only be done via catalogs and mail order for much of history, ecommerce has made it much easier for manufacturers to sell directly to consumers.
• This can mean greater profits for manufacturers, as well as better control and faster time to market for their products.
• Direct to consumer marketing (sometimes called DTC marketing or D2C marketing) is all the ways manufacturers reach those consumers and sell them products, from maintaining a website to marketing products on social media to buying ad space online and other strategies. Those strategies for DTC sellers are what we’re going to talk about here.

what steps do you believe pharmaceutical companies should take to improve their DTC investment returns?

D2C Marketing Strategies & Tactics To Try

• DTC marketing is a constantly evolving field, and there are new strategies and trends emerging all the time. But if you want to boost DTC sales in the new year, these are some of the time-tested, tried and true strategies and tactics you might consider.

Create a Brand Identity

• The thing about marketing products in the internet age is that there are tons of channels retailers can use to reach their customers. That’s why it’s more important than ever for brands to have a strong and consistent identity, and to align their messaging across platforms. That way, when consumers encounter your brand — whether that’s on your website, on social media, or on a sign on the subway — they immediately recognize who you are and what you’re selling.

Market Based on Data

• Data is more powerful than it’s ever been. Thanks to technology tools, retailers have the ability to collect and analyze more data about their consumers than ever before, and that creates useful insights for effective product marketing. One of the most effective ways to market using data is to target specific subsets of your audience with offers that are especially relevant to them. Think offers like free trials, sample products, and coupon codes.

Get Social with your Marketing

• Social media is one of the most powerful tools retailers can use today, and there are a number of different ways you can use it.
• Social media is a great place to gather data you can use to learn about your customers. By analyzing a social following, you can learn about your audience’s demographics, likes and interests, behaviors, social media activity, and more.
• Brands are also increasingly using social media to become more accessible to their customers, increasing brand loyalty. By using social channels as a customer service touchpoint, you can create a better customer experience, respond quickly to feedback, humanize your brand, and more.
• And then there’s the option of using social media to sell products directly. Facebook, Instagram, and Pinterest all now allow companies all now allow companies to sell directly from their platforms, and more social channels are likely to follow suit.
• It may go without saying, but be sure to maintain your brand identity in all social media interactions. This is how brands like Wendy’s and Netflix have created loyal social followings.
• Get Social with your Marketing

Partner with People Who Can Market For You

• No social strategy is complete without some strategic partnerships, which your brand can use in a number of ways. Many brands find success by partnering with influencers, celebrities, or other people who have high follower counts on social media, paying them to post photo or video ads on their profiles. But partnering with normal, everyday customers who love your product can create word-of-mouth campaigns that can be effective without all the high follower counts and pricey sponsored posts.

Go Viral

• One of the big advantages that DTC marketing has over traditional retail is its home is online, and it can fully take advantage of the dynamics of the internet to reach as many customers as possible. Creating viral-ready content is one strategy that can maximize the number of eyes that reach your site, but the problem here is that no one can really predict what will go viral.
• Creating a clever, sharable ad is one way (like when Dollar Shave Club founder Mike Dubin stood in front of the camera to talk about his “f***ing great” razors). Another way is to take advantage of those partnerships you’ve formed, especially with influencers who can spread the word to tons of people online.

Abstract

• The influence of direct-to-consumer advertising and physician promotions are examined in this study. We further examine some of the ethical issues which may arise when physicians accept promotional products from pharmaceutical companies. The data revealed that direct-to-consumer advertising is likely to increase the request rates of both the drug category and the drug brand choices, as well as the likelihood that those drugs will be prescribed by physicians. The data further revealed that the majority of responding physicians were either neutral or did not feel that accepting some types of gifts from pharmaceutical companies affected their ethical behaviors.

Journal Information

• The Journal of Business Ethics publishes original articles from a wide variety of methodological and disciplinary perspectives concerning ethical issues related to business. Since its initiation in 1980, the editors have encouraged the broadest possible scope. The term 'business' is understood in a wide sense to include all systems involved in the exchange of goods and services, while 'ethics' is circumscribed as all human action aimed at securing a good life. Systems of production, consumption, marketing, advertising, social and economic accounting, labour relations, public relations and organisational behaviour are analysed from a moral viewpoint. The style and level of dialogue involve all who are interested in business ethics – the business community, universities, government agencies and consumer groups. Speculative philosophy as well as reports of empirical research are welcomed. In order to promote a dialogue between the various interested groups as much as possible, papers are presented in a style relatively free of specialist jargon.

ALL THESE RELATED THINGS IS ALSO APPLICABLE PHARMACEUTICAL COMPANY

Direct-to-Consumer (DTC) advertising is key to any business. However, DTC advertising has always been a challenge for pharmaceutical and medical device companies in India. Any marketing professional from either of these industries, will admit that there is an instinctive hesitation to advertise medicines and medical devices before the end consumers. This begs for the question – what is the basis of this hesitation? Do laws in India stop DTC advertising of medicines and medical devices? In the paragraphs below, we have explored the scope of laws that regulate direct to patient advertising in India.

FOR EXAMPLE :-

1. In India, the business of medicines is regulated by the Drug and Cosmetics Act, 1940 (DCA) and the Drugs and Cosmetics Rules, 1945 (DCR). Until 2015, the DCA and DCR did not regulate DTC advertising except for the content that appeared on the label of the product. The DCR now prohibits the manufacturers of medicines identified in Schedule H, H1 and X of the DCR from indulging in any form of advertisement. The language used to prohibit DTC advertising makes it amply clear that ‘public interest’ is not a cushion any longer to advertise medicines.

• Unfortunately, the language of the prohibition under the DCR sheds no light on the following crucial aspects of DTC advertising:
• OBJECTIVE
  • 1. What is the scope of the expression ‘advertisement’? Does spreading knowledge and awareness of facts such as the results of successful clinical trials before patients amounts to an advertisement? Do patient testimonials constitute an advertisement? Can the presence of facts and testimonials on the global website of a pharmaceutical company amount to an advertisement of the drug in India?
    2. Whether the restriction on advertisement applies to distributors and marketers? In India, several medicines are only imported and several others are manufactured on a contract basis by third-party manufacturers. The DCR defines the activities that would amount to ‘manufacture’ and leaves out import and distribution from the definition. This clearly implies that importers and marketers of medicines should not be referred to as manufacturers under DCR. So, is it fair to assume that DCR gives a free hand to importers and marketers to advertise their medicines directly to the end consumer? Does this fulfil the objective?
  • Interestingly, from January 1, 2018, the business of certain notified medical devices is regulated by a set of new rules called the Medical Devices Rules, 2017 (MDR). The MDR has absolutely no restriction for the advertisement of medical devices. Does that mean that manufacturers of medical devices can advertise their medical devices directly to consumers under the provisions of DCR?
  • Apart from the restrictions on advertising certain drugs, there are restrictions on advertising cure for certain stipulated diseases and conditions using medicines and medical devices. The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 (DMRA) and Drugs and Magic Remedies (Objectionable Advertisements) Rules, 1955 (DMRR) identifies certain diseases and conditions whose diagnosis, cure, treatment, prevention and mitigation cannot be advertised by a medicine or a medical device. Unlike DCA, the DMRA and DMRR apply to all individuals and not just manufacturers of the medicines.
  • However, the sad truth is that DMRA and DMRR have become anachronistic and irrelevant. For example, it is well known that Cataract can be cured and Asthma can be mitigated. Does DMRA permit the advertisement of the intra-ocular lens for treatment of Cataract and corticosteroids-inhalers for mitigation of Asthma? It just doesn’t, period. Thus, it may not be an overkill to state that DMRA AND DMRR is fairly out of sync with the advancements in the field of science and medicine. The problem doesn’t end there. Some of the diseases and conditions identified in DMRA and DMRR are described broadly and are capable of misinterpretation by the regulator. Take for example a condition called ‘rheumatism’. Many doctors are of the view that rheumatism and rheumatoid arthritis are totally different. However, the regulator believes that rheumatoid arthritis is a subset of rheumatism and has prosecuted companies who have advertised a treatment for rheumatoid arthritis. Such liberty in interpretation taken by the regulator is a serious cause of concern.
  • Given the questions on the applicability of restrictions on direct to patient advertisement under DCA and irrelevancy of DMRA, one wonders whether the drug and medical device industry has matured enough to self-regulate against unwarranted advertising. This will, perhaps, allow the government to concentrate its resources on enforcement and updation of rules that govern critical aspects of business such as quality of medicines and medical devices.

In fact, the Organization of Pharmaceutical Producers of India (OPPI) had published a ‘Code of Ethics for the members for the Advertisement of OTC drugs in India’ long time ago. The language of the code feels in-tune with time and one wonders why the government has hesitated to adopt it into a full-fledged law. It contained very forward-looking guidelines such as prohibition on using statements in advertisement that may create fear or apprehension in the minds of the public (eg. a person may suffer from ailment by not using a product), prohibition on implying that a medicine is recommended by health professionals, prohibition on offering rewards or other inducement leading to excessive use of the drug by a consumer, prohibition on giving impression that a medical consultation or surgical operation is necessary, mandatory use of warning such as “use only as directed” etc.

This piece would be incomplete without referring to broadcasting laws. Basically, in addition to the laws that restrict DTC advertisements by businesses, there are laws and guidelines that restrict broadcasters of radio and television from accepting advertisement of drugs and medical devices. For instance, there is a code called ‘Code for the Self-Regulation of Advertising Content in India’ (ASCI Code) published by the Advertising Standards Council of India. It does not prescribe restrictions on advertisement of medicines and medical devices but stipulates that the content of advertisements should not be misleading or offensive to the public. ASCI Code is to be mandatorily complied with by the television networks only owing to the Cable Television Network Rules, 1994. However, its compliance is not mandatory for pharmaceutical and medical device industry.

It would be improper to conclude that the hesitation within the pharmaceutical and medical device businesses to undertake DTC advertisement of medicines and medical devices is misplaced. The fact is that the laws in India have not matured with time to allow DTC advertisement, unlike the science and people around it. The pharmaceutical and medical devices companies today suffer from over-regulation of DTC advertisement, unlike sister industries such as healthcare, food as well as many non-healthcare sectors. However, it is very much possible even today to educate consumers about the advances in the field of medicine and medical devices within the four corners of law. It is also possible to enter into arrangements with stakeholders who are not governed by the aforementioned laws to gauge their interest in undertaking consumer education and awareness.

The time has arrived for the government to act and give the necessary cushion to the industry to do what is not only required for the industry to grow but also for the patients to remain educated about their health. After all, we all aspire for Ayushman Bharat (i.e. healthy India)!

1. WHOLE OF THE ESTION IS SOLVE BASE ON EXAMPLE PLEASE READ CAREFULLY & MUST READ....

Should pharmaceutical companies intensify their efforts to understand consumer behavior? If so why? If not, why not?

YES , BECAUSE OF Every industry needs more information about its customers—how to find them, how to reach them, and how to sell to them. In nearly every industry, the customer is direct, whereas in the pharmaceutical industry, a customer can be one of many indirect entities. Historically, pharmaceutical companies have seen their primary customers as the healthcare professional or prescriber.

There are four major concerns with using healthcare data for sales and marketing:

1. Impact of Sunshine Act regulations on commercial activity
2. HIPAA concerns
3. Compliance controls over enterprise data
4. Cross-channel challenges

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