Sales & Marketing Excellence Latam
Master new commercial models and drive efficiency in a changing stakeholder marketplace
Reaching the Smart Patient Requires ‘360-Degree Marketing’
Ben Steele talks with Eduardo Tchouhadjian, CEO of E. Tchouhadjian & Associates, about how companies in Latin America are responding to the rise of the ‘smart patient’ and how to use “360-degree marketing” to combat the issue of prescription switching in these fast-growing markets.
For Eduardo, the biggest change taking place in Latin American pharma markets today concern the patient. “The influences of the media, social networks and the higher cultural level of the population have made the patient more informed about their condition as well as the treatments and therapeutic solutions available to treat it. The ability to check whether the drug prescribed is the latest and best-suited medication for their condition, or if the price and efficiency matches up to their expectations, means we have to deal with a much more rational and intelligent patient than before. This does not mean patients will opt for self-medication, but they are more likely to evaluate the doctor's prescription and to discuss with the pharmacist the product benefits.”
“The final purchase decision depends not only on the physician but also the patient and ultimately the person who serves you at the POS”
In a market where there is a growing awareness of the availability of generics, and where patients are likely to ask to switch from branded to generic medication at the point-of-sale (POS) if they feel it is in their best interests, a practice known as prescription switching. Big Pharma needs to go on the offensive in order to maintain - and in some cases to regain - their market share.
Eduardo advocates what he terms “360-degree marketing” in order to reclaim patients lost to generics. “It is essential for Big Pharma to adapt their strategy, as the final purchase decision depends not only on the physician but also the patient and ultimately the person who serves you at the POS. This means that the promotional activity should be conceptualized as what we call “360-degree marketing,” which takes into account the decision-making power of the physician, the patient, the pharmacy and general environment surrounding the consumer. Not considering the interplay of these factors would risk giving your competitors the advantage, and may mean losing the completion of the sale to an action by a competitor at the POS.”
One example of this new approach to marketing that Eduardo is suggesting is the “shared treatment” tactic, which encompasses the patient’s journey from physician’s office to pharmacy counter.
“Shared treatments offer a price discount through loyalty programs that allow patients to purchase the product at a lower price at the beginning of their treatment. This procedure is widely used for products aimed at chronic diseases, as once the loyalty of the patient is secured it is less likely they will replace your product with a generic. This promotional activity starts with physicians: the doctor receives a bond that he or she gives to the patient along with their prescription; the patient then gives this bond to the pharmacy and receives money off their treatment, with discounts ranging from 30% to 80%, lasting usually over a 3 month to 6 month period. Physicians have typically not needed convincing of the benefits of this system, because usually when they have prescribed a branded drug they have done so for a reason. Most doctors will not want patients to switch to generics, and will appreciate the efforts of pharma companies to decrease the amount of prescription switching that goes on.”
The ‘shared treatment’ offer mentioned by Eduardo not only helps companies compete on price, it also fosters a closer relationship between the pharma company and the patient. Eduardo explains that “when patients start the treatment, data from the bond they give to the pharmacist is sent back via the wholesaler to the pharma company. This opens up a ‘data bank,’ which is added to every time the patient interacts with the pharmacy; this ‘data bank’ facilitates working with the patient to ensure they are getting the best use out of their treatment while at the same time giving the company a more detailed picture of the drug’s real world effectiveness. This real world data can be used later to convince healthcare providers and payers of the benefits of the medication.”
“Providing training to the pharmacist is vital because the new role of pharmacists as medical advisors is giving them greater influence over the patient’s final decision”
The pharmacist is becoming a force to be reckoned with in the Latin American healthcare system, as they are increasingly taking on the role of medical advisors to their customers. Eduardo thinks that this opens up the possibility of a closer relationship between pharma companies and pharmacists, where pharmacos can provide added value through education and training. “Foreign companies in Latin America are organising meetings, visits to plants, and giving students in their last years of pharmacy training more information about their products. Giving out information about the company and the quality of branded medications will help pharmacists to understand why it is important to advise the patient not to switch to a generic version of the drug at the POS. Providing training to the pharmacist is vital because the new role of pharmacists as medical advisors is giving them greater influence over the patient’s final decision.”
Appealing to pharmacists as medical advisors makes sense, but companies cannot leave it at this. In order to really get pharmacists on board, reps will have to get used to being not just a scientific but also financial liaison to the pharmacy, “when reps visit the pharmacy they will need to take on two roles. They should have scientific knowledge of the product but also the ability to liaise with the pharmacy purchasing manager and make the financial case for purchasing the product. In this sense they will need to be both reps and Key Account Managers, dealing with the medical side of things while also negotiating discounts and managing in-store promotional campaigns.”
Eduardo Tchouhadjian will be discussing this critical element to pharmaceutical marketing in greater depth at this year's Sales & Marketing Excellence Congress in Miami from 20th - 21st June. For more information on his presentation, or to find out who else is speaking, visit the official website.
Sales & Marketing Excellence Latam
Master new commercial models and drive efficiency in a changing stakeholder marketplace