Most pharma companies have historically marketed to physicians or hospitals. But with the number of patients taking charge of their own healthcare, and looking up information online, it has become increasingly important for pharma companies to do DTC (direct to consumer) marketing or at least leverage the big data of the consumers' actions online.

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To D2C or Not to D2C?
Innovation in Marketing
Dr. Augustine Fou
May 2014, NYC
acfou [at] mktsci.com
@acfou

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Challenge and Opportunity
Historically, many pharma
companies only did B2B marketing.
Do we even need to do D2C? And
how would it help us innovate our
multichannel marketing?

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Agenda
1. Irreversible Technology Trends
2. Changes in User Behavior
3. Direct-to-Consumer? New Audiences
4. How to Take Advantage of New
Opportunities

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Irreversible
Technology Trends
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Computer Use
Source: Pew Internet, Feb 2014
81% use computers
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Internet Adoption
Source: Pew Internet, Feb 2014
87% use internet
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Cell Phone Ownership
Source: Pew Internet, Feb 2014
90% have cell phones
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Source: comScore via Marketing Charts May 2014
69% use smartphones
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Smartphone Penetration
Source: comScore April 2014

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Speed of Adoption
Source: Forbes Magazine

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Indispensible Tech
Source: Pew Internet, Feb 2014
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Information Consumption
Source: Google, August 2012 Multi-screen World
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Industries Disrupted
video rentalnewspapers

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Users Have Changed
Empowered with Information
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Users have instant and …
…constant access to info
“no, that isn’t the ‘best price’
for this HDTV and the reviews
aren’t even that good… ”
• 43% smartphone owners used
device in-store
• 15% checked prices in-store and
then bought from competitor
Source: comScore 2012
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It’s All About Trust
Source: Deloitte Digital May 2014
Shoppers Prefer Own Cell Phone to Store Sales Associates

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Users trust peers most..
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Source: Marketing Science, March 2014
#1 Recommendations
#2 Consumer opinions

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People ignore “interruption media” and
only pay attention to information they are
seeking. (“Purple Cow” by Seth Godin)
• Direct marketing
• Email marketing
• Online marketing
• Sports marketing
• Word of mouth marketing
• Guerrilla marketing
• Blog marketing
• Event marketing
• Product placement
• In-game marketing
• Sponsorships
Advertisers push message out Users do their own research
Users “pull” info
PULLPUSH
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Users are more savvy
Source: Chitika, Jan 2012Source: Chitika, June 2010
• Users are searching longer
terms
• Users click more on ads
related to longer terms

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Users Take Health
Into Their Own Hands

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Mobile Health Intentions

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Integrating Mobile
Source: PwC June 2012

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Smartphone Used to Find

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Mobile for Health

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Patients Search OTC and Rx
Patients search more for information online
OTC drug: Advil Rx Drug: Humira

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Users Taking Action
in Digital Channels
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Searches
Google reports more than
3 billion searches per day
Source: Business Insider 2012
Users search more and more

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Conversations
Offline conversations now online

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Shares
What others found valuable enough to share
# of shares

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Likes
Brands now have direct access to users
14 million fans
historic images
25,495 like the item
1,168 comments

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Reviews
Reviews from others who bought and used

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Observed Data
Creates New Opportunities

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Search Volume Trends
Search volume spikes indicate when demand spikes.
chocolate covered strawberries
chocolate covered cherries
Source; http://go-digital.net/blog/2011/12/search-as-research-using-search-for-continuous-consumer-insights/

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Optimize Existing Content
Search volume provides insights to select optimal keywords

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swine flu
h1n1
swine flu drove 1st peak
h1n1 drove 2nd peak
Purell demand and
search volume lifted
Study Cause and Effect

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Marketing Performance
Detect if target users are searching more, during marketing
Tapentadol
Nucynta
Source: Google Trends

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Optimize Delivery Channel
Reach and engage high-risk diabetes
patients in Harlem via mobile devices
Mobile-first approach based on target audience tech

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Audience Segmentation
The exact words users use to search indicates who they are
Physician Nurse Patient
“orexin
receptor
agonist”
“dosage”
“sleep
drug”“how to
administer”
“hysterectomy” “hysterectomy
recovery time”
“hysterectomy
surgeon”
Top of Funnel Consideration Ready to Act

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Real-time Feedback/Insights
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Did consumers request device, pick up from pharmacy?

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Salesforce eDetailing
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Analytics of usage of content assets

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GE #GetFit Cancer Prevention Campaign
Source: Waggener Edstrom

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Recap
1. Irreversible Technology Trends
2. Changes in User Behavior
3. Direct-to-Consumer? New Audiences
4. How to Take Advantage of New Oppts
... have changed the landscape in which we market
... mean the rules of the game have changed
... is a must; creates new competitive advantages
... leverage the data and faster feedback loops

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Dr. Augustine Fou – Digital Consigliere
“I advise pharma, med-device, and
healthcare clients on using digital
insights to drive innovation and
create sustainable competitive
advantage.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou
Slideshares: http://www.slideshare.net/augustinefou
Bio: http://www.linkedin.com/in/augustinefou
LinkedIn: https://www.linkedin.com/today/author/84444-augustinefou
@acfou

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Further reading …
Search Marketing and Social Media in
Regulated Industries - http://bit.ly/zCBLaY
Mobile Stats and Research -
http://bit.ly/19FqWN6
Articles and Slideshares on Innovation by
Augustine Fou - http://bit.ly/1bOaW8W
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