Multichannel Marketing in Healthcare: Industry perspectives
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1 INDUSTRY REPORT: Multichannel Marketing in Healthcare: Industry perspectives April 2013 Conducted by: EPG Health Media Royal Victoria House The Pantiles Tunbridge Wells Kent TN2 5TW United Kingdom Tel: +44 (0) Web: Copyright EPG Health Media (Europe) Ltd 1
2 Contents Page Introduction Methodology 3 5 Results 1. What type of organisation do you work for? 6 2. What is your current or recent geographic area of responsibility or experience? 6 3. In your experience, what proportion of marketing campaigns had multichannel / cross-channel integration in 2012? 4. What proportion of marketing campaigns do you expect to have multichannel / cross-channel integration in 2013? 5. How in favour are you personally of multichannel / cross-channel marketing? 9 6. Do you believe that your organisation (for pharma respondents)/ pharma (for agency respondents) is striving to implement multichannel / cross-channel marketing as standard practice? 7. Where does your organisation's core expertise in multichannel marketing lie? How well STRUCTURED do you think your organisation is for supporting multichannel and crosschannel marketing? 9. How well RESOURCED do you think your organisation is for supporting multichannel and crosschannel marketing? 10. Are you expecting a growth in the number of marketing related personnel within your team (for pharma /organisation during 2013? 11. How do you expect the marketing spend for each channel to change between 2012 and 2013? In your experience, what level of third-party/agency support is required for the following channels? 13. Which elements of pharma marketing campaigns has your organisation been involved in? How often is your organisation required to collaborate with other agencies/publishers/vendors as part of a multichannel or cross-channel marketing campaign for pharma? 15. In your experience, how often were the following channels integrated in marketing campaigns during 2012? 16. Approximately what percentage of total marketing budget was devoted to the following channels in 2012? 17. What changes have you seen in the past year related to integration of the following marketing channels? 18. In your experience during 2012, how often were the following elements integrated within multichannel/cross-channel marketing activities? 19. In your experience during 2012, on average how effective were the following individual elements within multichannel marketing campaigns? 20. In your experience, what factors influence which marketing channels to use? To what extent do you consider the following to be obstacles to multichannel marketing within healthcare? 22. Which of the following statements most accurately describes your personal experience of how pharma handles metrics for marketing campaigns? 23. What is your biggest frustration or difficulty concerning multichannel and cross-channel marketing within the Pharmaceutical industry? 24. Pharma and agency respondent demographics Conclusion 29 About EPG Health Media Copyright EPG Health Media (Europe) Ltd 2
3 Introduction During the past year in particular, the concept and practicalities of multichannel and cross-channel marketing have been the focus of much discussion and debate within the pharmaceutical industry. In this very competitive and ever more complex customer environment, it is becoming increasingly challenging to market and sell pharmaceutical and health products. Jon Clark and Per Hedman, from Nitrogen 1 This increased complexity is largely attributed to the advent of digital and the impact this has had on how we communicate with one another. It has opened up the channels of two-way communication and leveled the playing field, allowing customers to easily access the information they want, where, when and how they want to. 83 percent of pharmaceutical sales and marketing executives intend to increase digital and multichannel interactions. 2 Accenture Life sciences To remain competitive, pharma is increasingly investing in marketing across multiple and newly evolving channels, a transition that brings with it a new set of challenges that pharma is now struggling to overcome in practice. From a conceptual standpoint, its easy to understand. However, when you ask people about how they implement, this seems to be incredibly difficult, the elephant in the room. That said, multichannel is not a transient phenomenon, it s here to stay. 3 Len Starnes Pharma is having to adapt internal organisational structures and resources to the challenges that multichannel and cross-channel marketing present. Reasons companies fail to evolve (to multichannel) are; no defined strategy, incompatible org structure and disparate tech platforms Cross Channel Marketing report 2012 by econsultancy & Responsys. 4 In its attempt to overcome the latest set of challenges, pharma relies on the support of agencies, which in turn need to evolve and even lead the way. To manage the increased use of digital interactions, 66 percent of pharmaceutical marketing executives intend to use third-party providers, 16 percent intend to build in-house capabilities while 12 percent intend 1 Clark, J., & Hedman, P. (2013, April 15). The Incredible Journey: Multichannel communications with HCP's. Retrieved April 17, 2013, from PM Live Blog - Smart thinking : The_Directory_LiVE_15_April_2013&utm_medium= 2 Accenture Life Sciences. (2013). Life in the New Normal: The Customer Engagement Revolution. Coleman Parkes. Dublin, Republic of Ireland: Accenture. 3 Eyeforpharma (Composer). (2012). Multichannel Marketing Webinar. [L. S. Benedikt Hoffmann, Performer, & L. Starnes, Conductor] [Online]. London: 4 econsultancy & Responsys. (2012). Cross-Channel Marketing Report London: econsultancy & Responsys Copyright EPG Health Media (Europe) Ltd 3
4 to do both. 5 Accenture Life sciences Figure 1. Accenture Life Sciences. (2013). Life in the New Normal: The Customer Engagement Revolution. Coleman Parkes. Dublin, Republic of Ireland: Accenture. The question on the industry s lips is not whether to gear up for multichannel, but how? 'Yes MCM is more effective, but the more effective it is, the more complex and costly it becomes. If we are to speed up the process we need to focus on change management, on education'. 6 Lars Boegner, Head of digital center of excellence at Leo Pharma. The key objectives of this study are to determine: How are various marketing channels being used? What channels are proving the most or least effective for pharma? What are the biggest influences and obstacles in healthcare marketing today? How is multichannel marketing being structured and resourced? At what rate is multichannel marketing within healthcare evolving? What factors are driving decisions and change? How are pharma and their agencies working together This study is important to anyone working in healthcare marketing and communications, because it will: Provide a snapshot of current and future opportunities for multichannel marketing within pharma Highlight current limitations and challenges faced by industry peers Contribute to dialogue regarding best practices in the implementation of multichannel marketing 5 Accenture Life Sciences. (2013). Life in the New Normal: The Customer Engagement Revolution. Coleman Parkes. Dublin, Republic of Ireland: Accenture. 6 Soans, A. (2012, September 11). Making Sense of Multi Channel Marketing in Pharma. Retrieved April 15, 2013, from Slideshare: Copyright EPG Health Media (Europe) Ltd 4
5 Support decisions concerning the planning, funding and delivery of multichannel marketing within the wider pharmaceutical industry Methodology This report is based on a small-scale, independent study designed and conducted by EPG Health Media (Europe) Ltd. Every effort has been taken to ensure that the study is transparent, easy to understand, gives adequate coverage of topic and provides reliable response data. Target respondents Senior marketers within pharmaceutical organisations and partnering agencies Total respondents: 20 pharma and 46 agency employees (see page 28 for list or organisations) Target markets: Global Survey languages: English only Survey period: February - March 2013 Survey method: ed link to an online survey Survey type: Up to 24 multiple-choice questions Sampling: Random, voluntary (no honoraria), no control group There is much debate about the definitions of multichannel and cross-channel marketing, so for the purpose of this study, respondents were asked have been defined as follows: Multichannel marketing refers to sending out the same message via a variety of different channels ( , direct mail, website, social media, mobile, meetings etc.). The channels work independently and are generally not coordinated. Cross-channel marketing uses multiple marketing channels in a coordinated way, allowing the audience to journey across channels. Each communication channel is linked, timed, and orchestrated according to its particular strength Copyright EPG Health Media (Europe) Ltd 5
6 1. What type of organisation do you work for? 11% 5% Pharmaceutical or medical device company 38% Agency (medcomms, marketing, media buying etc) Medical publisher working with pharmaceutical industry 55% Other company working with pharmaceutical industry Interpretation 38% (n= 20) of respondents to the study were pharmaceutical or medical device employees, while 55% (n=36) worked for agencies with the remaining 16% (n=10) working for medical publishers or other organisations that work directly with pharmaceutical companies. 2. What is your current or recent geographic area of responsibility or experience? (Select all options that apply) Agency Pharma Other (not Europe, US or emerging markets) Emerging markets (China, India, Russia, Brazil etc) Local affiliate level USA Local affiliate level within Europe (non UK) Local affiliate level UK European level Global level 4% 5% 15% 24% 15% 10% 20% 10% 20% 30% 33% 39% 61% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% Copyright EPG Health Media (Europe) Ltd 6
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