April 2007
      
Reality Research: Using Ethnography to Uncover What Customers Really Do With Your Products

Ethnographic research has been used for years by consumer product companies and other industries to gain deeper insights about their markets and the beliefs, motivations and behaviors that characterize their customers. Increasingly, pharmaceutical companies are seeking the unique insights this form of marketing research can provide.

In brief, ethnographic research is a means by which pharmaceutical companies can gain more detailed and comprehensive insights about their customers than can typically be obtained from traditional marketing research methods. Using a range of data collection techniques that hinge on participant observation, ethnographic research is useful for those pharmaceutical marketers who want to deepen the pursuit of their marketing questions by exploring the often significant gaps between what respondents say they do, in a formal marketing research interview setting, and what they actually do when observed in a more natural environment.

In a recent Medical Marketing & Media article, Barry J. Cerf, Ph.D., GfK V2 Executive Vice President and a trained anthropologist, explores the application of ethnographic methods to pharmaceutical marketing research and outlines a number of ideal scenarios where product teams can benefit from the ethnographic “edge.”

The Future of Pharmaceutical Marketing Research: Challenges and the Pharma MR Industry Response

Over the next five to six years, the global pharmaceutical industry will face several immense and unprecedented challenges that will necessitate important shifts in the marketing research demands placed upon supplier agencies. As a tool for reducing business decision-making risk, marketing research will continue to play a vital role within the global pharmaceutical industry. However, with massive challenges looming in the drug business, there are key sectors where marketing researchers need to evolve to meet drug companies’ needs.

This article, written by Noah M. Pines, Executive Vice President of GfK V2, illustrates these challenges, the big picture strategic actions that drug companies are taking, and how the industry-MR supplier relationships may change as a result.

The Four Colors of Marketing Research: Different Colors for Different Strategic Marketing Situations

Fact: Only 30 percent of the human brain is organized to process verbal information while 70 percent works to process visual information. Accordingly, in this month’s published document for The Orange Pages, we employ visualization techniques to think about pharmaceutical marketing research in terms of colors – red, blue, white and black. We make color designations according to the different types of strategic situations a product, a portfolio or even a company can find themselves in, and we discuss the different kinds of marketing research issues and methodologies that should be brought forth in each of these situations.

Red marketing research is virtually always focused on a single competitive product – or a competitive set of products – and evaluates our product against the competition. Although Blue marketing research still supports marketing efforts against the competition, it does not attempt to move the product on the scales but rather to move the scales, by adding a new dimension or increasing the importance of an existing one. White marketing research is used in the unusual circumstance when a genuinely new product can permit a pharmaceutical marketer to create a whole new marketplace. Finally, Black marketing research helps us determine what factors have a negative impact on our business.

Your Guide to Getting Global Research Right: GfK's Workshop at the PBIRG Conference, Sunday, May 6

We invite you to join the GfK U.S. Healthcare Companies May 6-9 in Savannah, Georgia, at the Pharmaceutical Business Intelligence Research Group’s (PBIRG) Annual General Meeting. The theme of the 2007 conference is entirely focused on international marketing research.

To kick off the conference, on Sunday, May 6, at 2 p.m., two of GfK’s top leaders and global marketing research veterans – Bart Weiner, President of GfK V2, and Brian Hull, President of GfK Strategic Marketing – will present a fast-paced “boot-camp” style workshop, Best Practices for Global Marketing Research in the Key Markets: 120 Tips in 120 Minutes.

Participants will be engaged with an overview of the “Top 9” countries representing the main markets for pharmaceutical products, and thus the countries on which most pharmaceutical manufacturers focus their global marketing research efforts: the United States, Japan, Germany, France, Italy, the United Kingdom, Spain, Mexico and Brazil.

Key takeaways from the session will include:
  • General primers on how medicine is practiced in each of the nine countries, as well as a briefing on the specific cultural and regulatory nuances that impact the conduct of marketing research in each market.
  • Specific actionable tips and best practices for the conduct of global marketing research, addressing such issues as fieldwork, central facility research, working with pharmaceutical companies’ local affiliates, variables that impact pricing and specific qualitative and quantitative research practices, including selection of methodology, location and scheduling issues specific to various cultures.


Readying Bold New Strategies for a Discontinuous Future

Having just returned from the PMRG Conference in Las Vegas, I came away with one major thought on my mind. As luck would have it, that thought was instilled in the closing session, where as usual only about a third of the more than 500 conference attendees were still present. (What is with people who schlep all the way across the country and then bail out before the closing bell?)

The thought came from Dr. Glenna Crooks, who is one of my favorite thinkers and speakers in pharmaceutical strategy. Having been deeply involved at the federal level with healthcare policy in several administrations, Dr. Crooks gets how things work in a way far more profound than the way the world is seen by the average pharmaceutical marketing researcher, including me.

Glenna first got my attention several years ago with a brilliant presentation she made about the important “covenants” that need to exist linking all the players in healthcare, and how many of these covenants have broken down and are badly in need of repair. I confess that having heard her presentation and then reading her book on the same topic, I will never think of “pharmaceutical marketing” in the same way again. Sure we need to gain market share and make money for our stockholders, but can we really do it at the cost of breaking down our covenants with physicians and their patients?

This time around, she got me with another thunderbolt. Citing and agreeing with a pronouncement by futurist Jonathan Peck, she suggested that within the next two decades or so, there would be no such thing as the protection of intellectual property – patents as we know them in the pharmaceutical business – and that the profitability of pharmaceutical companies would then be dependent upon their speed, agility and efficiency in marketing their version of a product that would be offered by numerous companies around the world.

Yikes! Talk about a paradigm shift. How do we even begin to get ready for such a fundamental transition in our industry? First, I think we need to consider for a moment whether they are right in their predictions. You should think about this and draw your own conclusions, but I believe that they are indeed correct. We already see mini-versions of this world around us...

Richard B. Vanderveer, Ph.D.
Group Chief Executive Officer
GfK U.S. Healthcare Companies




Did You Miss the March Issue of Topline?

Click here to read the issue, which includes:
  • Details on a new brand positioning research methodology, Customer-Driven Positioning
  • Advice on using survey research and GIS to Make geodemographic patient segmentation work
  • News on the appointment of a new President for GfK Strategic Marketing