September 2007

The GfK U.S. Healthcare Companies’ Vision for the Next Five Years

As I look back at the 35 years or so that I have been involved in pharmaceutical marketing research, I note with great interest the kinds of research on which I, and the companies I have headed, have focused. In the 1970s and 1980s, my colleagues at The Vanderveer Group (now TVG) and I spent most of our time developing the product positioning, or story, that would be used to describe beta blockers, calcium channel blockers, low dose oral contraceptives and myriad other genuinely new products to physicians. The therapeutic advances were significant, and physicians would take time to listen to what we had to tell them about the products.

As we moved into the 1990s, we found ourselves focused on micromarketing, i.e., using the newly available Individual Physician Level prescribing data (IPLRx) to serve as the basis for: Targeting particular physicians based on their prescribing activity and style; Tailoring the story to meet their information needs; and adjusting the Tactical Implementation to match the individual physician’s preference in terms of information consumption media. The bottom line of all of this, the fourth “T” in micromarketing, was Total Customer Satisfaction, based on the assumption that all the other Ts were simply customizing devices aimed at leaving us with a happy customer.

As we moved into the current decade, several new foci emerged for our marketing research attention. These included a multitude of research projects surrounding the new e-media and dot-com communications channels, most of which turned out to be busts, and increasing amounts of work in foreign countries as the pharmaceutical industry finally became global. Fewer new products were being introduced, and thus work related to product positioning, etc., was less of a focus. Many blockbuster products went, or were about to go, generic, and marketing research focused on how to promote these products has understandably dried up rather substantially.

Because GfK has more than 500 people worldwide doing pharmaceutical marketing research, with 275 in the GfK U.S. Healthcare Companies alone, we are often asked about our vision for pharmaceutical marketing for the balance of the decade. By way of shorthand response, we offer that:

  • We see major changes coming in the pharmaceutical marketplace and in the marketing research arena that services it. For a good overview of these changes, download and read the (no cost) PricewaterhouseCoopers analysis of the future of the pharmaceutical marketplace (www.pwc.com Pharma 2020: The Vision), and/or read our Orange Pages’ summary of its predictions and impact on marketing research.


  • A major prediction in this report is that the pharmaceutical marketplace will double in size by 2020, largely because of population growth and economic progress in “developing” countries, e.g., the BRIC (Brazil, Russia, India and China) countries. Thus, while top line revenues will grow substantially, bottom line profitability will be less positively impacted because of the inability of the health care systems in such countries to pay the same prices or support the kinds of margins we enjoy in the United States.


  • Thus, the major directions for GfK’s marketing research efforts over the next five years will include examining pharmaceutical marketing in the United States, determining what works and doesn’t work, and cooperating with our colleagues in other aspects of pharmaceutical marketing (e.g., product management, advertising agencies, etc.) to help build “Pharmaceutical Marketing 2.0.” It is anticipated that the new pharmaceutical marketing will be comprised of existing methodologies and others yet to be developed. A key factor here is that we intend to develop relationships with organizations that can help build the new pharmaceutical marketing and will quarterback their efforts to do so. Thus, our work will not end with a series of “Conclusions and Recommendations” but with a workable system that can be installed in a pharmaceutical company on a turnkey basis.


  • A second and final major component of our vision for the future will be to use our worldwide presence in pharmaceutical marketing research to build a thorough understanding of how health care is delivered and pharmaceutical products are marketed, emphasizing similarities and differences, around the globe. For the reasons outlined above, special attention will be paid to developing countries in these investigations. Developing and keeping up to date a robust body of knowledge covering the delivery of health care and the marketing of pharmaceuticals worldwide will help our clients be more responsive to the changing pharmaceutical marketing landscape.
That’s it, folks. That is our future as we see it in mid-2007. It is a future that is far different from the past and even from the present, and we are already moving in the direction of staffing and organizing the GfK Healthcare team members, some 500 strong across the globe, to deliver on this vision.



Richard B. Vanderveer, Ph.D.
Group Chief Executive Officer

GfK U.S. Healthcare Companies