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To support the prioritization of commercial investments through
Promotional Response Analytics, MattsonJack provides evidence-based
support of the effectiveness of sales and marketing spending
for sales forces, marketing campaigns and DTC advertising.
Facing intense pricing pressure and government scrutiny, top
pharmaceutical company managers now are seeking this support
because the investment is becoming a burden financially and
politically.
MattsonJack's Promotional Response Analytics staff has the business
knowledge to ensure that investments yield the desired return.
Using proprietary methodology, the company answers questions
such as:
- How much spending is required?
- What is the optimal mix and timing
of that spending by major class of marketing investment,
such as sales calls and position, samples, physician meetings
and events, professional journals and DTC, if warranted?
- How might the competition respond,
and how could that be countered (war-gaming)?
- What should the investment be
across brands in a group or across the company to optimize
the overall return on sales and marketing?
MattsonJack's approach simultaneously evaluates the impact on physician
prescribing of sales calls, samples, physician meetings and
events, professional journal pages and DTC spending by media.
Econometric methods adapted by MattsonJack specifically for pharmaceutical
promotion are used to analyze each of these environments.
MattsonJack's methods integrate and correlate the findings with actual
prescribing outcomes. As a result, MattsonJack clients receive a true
interrelated promotional response model that facilitates evidence-based
marketing decisions.
MattsonJack methods are unique in the industry and are based on the
premise that new prescriptions result from a complex, dynamic
and simultaneous interaction of all quantifiable influences
on prescribing. MattsonJack's approach is highly effective because
its basic structure allows for measuring and predicting effects
outside of the traditional set. Then, actions can be monitored
through sensitive econometric analysis to allow rapid response
to competitive reaction.
Fundamentally, MattsonJack methods enable "what-if" analysis
of changes in promotional investment by level, modality and
timing, as well as changes in any of the key market, product
or disease environments. Using this methodology, MattsonJack predicts
new prescriptions over a 12- to 18-month period following
implementation of a specific promotional plan, and typically
yields forecasts with r2 values in the 95% or higher range.
Detailing Optimization — Reach and Frequency
Although the pharmaceutical industry is somewhat familiar
with product / market adoption theory and has made some application
in targeting physician calls, the standard governing call
frequency continues to be based on total prescription volume
by a physician in a target therapeutic category, such as the
physician's prescribing decile. The concept of importance
by prescribing decile is completely valid for determining
reach (which physicians should be called on) but is the wrong
criterion to determine call frequency (how frequently a physician
should be called on).
MattsonJack examines actual prescribing in relation to the
number of sales calls and creates a marginal product revenue
curve for each physician. For many pharmaceutical companies,
the "high-value physician" is being called on with
a frequency so high that the marginal return on each call
actually is negative. MattsonJack's approach is based on the
supposition that to maximize the return on those calls, a
given number of calls must be distributed across a defined
physician target audience. Stated differently, MattsonJack's
Redeciling methodology identifies those physicians on whom
a call is most likely to yield the highest marginal return.
The value of this approach is enormous. In one study, analysis
showed the sales gain from call frequency based on maximizing
marginal return equaled the sales gain from adding 150 sales
representatives and leaving the traditional call-frequency
in place.
For more information on our Promotional Response Analytics
services, please phone (314) 469-7600 or e-mail info@mattsonjack.com. |
