Understand your market

Once the key organisations and key stakeholders are identified, the second step is to segment and map the disease area on a local, regional or national level. Segmentation includes primary and secondary research analysing the role of the organisations and the channels of communications between key stakeholders.

The disease landscape also includes the area of pricing and reimbursement. It is becoming more important for companies involved in new product launches or in-licensing activities to include a pricing and reimbursement assessment as part of their market entry preparation.

Brand Positioning / Market Segmentation

Marketing in the pharmaceutical industry is integral to the overall success of a brand. Pharmaceutical companies spend almost as much on marketing as they do on research and development. The combination of effective product differentiation and comprehensive market segmentation can ultimately position the brand as a leader in the field.

Brand positioning in the market place is an important strategy in maximising revenue. In order to position the product effectively, the market must be divided into unique segments from which the key segments are chosen. This process, known as market segmentation, involves partitioning markets into groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour. A detailed environmental analysis will enable the brand team to clearly identify the various market segments within their disease area resulting in the development of a more effective marketing plan.

In addition to disseminating information about the benefits of new therapies, an essential role for pharmaceutical marketing and promotion is to encourage physicians and payors to adopt and use their products as early as possible.

KOL Identification and Segmentation

Pharmaceutical markets are constantly changing in terms of new developments, but one thing that remains constant is the need to consult and develop relationships with the key individuals who drive these developments and the use of novel compounds in the marketplace: the opinion leaders.

True key opinion leaders (KOLs) are limited in number, representing only a small proportion of the universe of physician and research specialists. They form only a part of the early adopters section that populates 12.5% of Everett Rogers’ innovation curve. Therefore, qualitative research techniques are most appropriate when seeking advice from these individuals, either in the form of in-depth interviews (IDIs) or an advisory board. In either case, a representative sample of the top-tier KOLs in terms of nationalities, interests and expertise is usually required for the most valid and objective market research.

The most objective approach to identifying KOLs and influencers is to ask the marketplace itself, either by targeting key individuals including prolific authors publishing on a disease topic, or by contacting the high prescribers in a disease area. The first approach, ‘top-down’, is ideal for identifying the internationally and nationally-renowned KOLs in an area. Individuals nominated here would constitute the key targets for international and national strategic market research. The second approach, ‘bottom-up’, is an ideal tool for identifying the national, regional and local prescription influencers, enabling a tactical targeting of a national sales team to the key physicians who influence particular treatment choices. Following this identification, further investigation can be carried out to ‘segment and profile’ the key individuals identified based on their expertise and experience.

As pharmaceuticals become more complex and expensive, the role of payors in the marketplace is becoming increasingly important. Today, a demonstrable improvement in drug efficacy over the gold standard is sometimes not enough; the improvement gained has also to be deemed cost-effective. The environment in which the costs and benefits are weighed out to determine which treatments are reimbursed is becoming an increasingly important factor for companies to consider when introducing a new therapy to the market. There is an increasing need therefore to have an understanding of the structural organisation of the therapy area, including healthcare trusts and organisations and regulatory committees as well as the key individuals in it.