With the advent of new technologies, there has been a revolutionary change in the way consumer educate themselves and make critical purchasing decisions. These changes are also affecting highly regulated industries such as bio-pharma, where companies are rapidly adopting latest technologies to enhance their Consumer Marketing Research capabilities in Market Research field. Consequently, they are using novel tools and techniques to better understand consumer behavior. In fact, industry experts believe that this trend will not only help bio-pharma organizations in conducting deeper & faster research but, will also help them in increasing their efficiencies. Best Practices, LLC conducted this benchmarking study to identify current and evolving approaches for qualitative and quantitative consumer marketing research techniques and tools in pharmaceutical and medical device companies. This research examines the changing landscape for qualitative and quantitative research. It also reviews which quantitative research approaches market research leaders are currently utilizing most and why. This study includes data on two segments: pharmaceutical companies and the Total Benchmark Class.

1. Innovation in the Pharma Industry:
Market Research Tools, Technologies and
Approaches to Improve Consumer Interactions
Best Practices, LLC Strategic Benchmarking Research
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2. Table of Contents
I.
Executive Summary
pp. 4-21

Research Overview
pp. 4

Universe of Learning
pp. 5

Innovation Widely Dispersed but Thinly Seeded
pp. 6

Key Findings
pp. 7-20
II. Universe of Learning: Key Demographics of Participating Companies pp. 21-23
III. Innovation in Marketing Research Approaches
pp. 24-26
IV. Innovation in Marketing Research Tools
pp. 27-72

Using Innovation to Update the Use of Analysis Tools
for Key Market Research Activities
V. Marketing Research Trend Changes – Qualitative Trends
pp. 71-76
VI. Marketing Research Trend Changes – Quantitative Trends
pp. 77-82
VII. Emerging Market Research Tools in Pharma Sector
pp. 83-94
VIII. Communicating with Consumers
pp. 95-99
IX. Trends in Consumer Communication
pp. 100-105
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3. Table of Contents
X. Evaluating Direct-to-Consumer Marketing
pp. 106-108
XI. Lessons Learned and Pitfalls to Avoid
pp. 109-113
XII. Appendix
pp. 114-125
XIII. About Best Practices, LLC
pp. 126
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4. Research Project Objectives, Methodology & Results
Best Practices, LLC conducted this cross-industry benchmarking study to identify current and
evolving approaches for consumer marketing and marketing research techniques and tools. This
study contains extensive qualitative data.
Study Overview
Research Objective: New technologies are
transforming how consumers educate themselves
and make critical purchasing decisions.
Correspondingly, across industry sectors the
consumer marketing playbook and marketing
research analysis approaches are evolving to better
identify winning tools and techniques.
This cross industry study addresses topical issues
that include new media for interacting with
consumers, new qualitative techniques for insight
mining and new quantitative techniques for research
data analysis.
 Methodology: Best Practices, LLC engaged 59
Market Research leaders at 58 companies through a
benchmarking survey instrument. Eighteen
participants were from Pharma industry. In addition,
research analysts conducted executive interviews
with eight selected respondents to collect qualitative
data and insights.
Topics Included
 Innovativeness of MR Tools for:
 Forecasting
 Patient Flow Mapping
 Positioning
 Segmentation
 Brand Research
 Concept Testing
 Brand Awareness
 Customer Insights
 Direct-to-Consumer
 Tactic Testing
 Target Product Profile Testing
 Utilization of Emerging MR Tools
 Effectiveness of Consumer Marketing Tools
 Best Practices, Pitfalls & Lessons Learned
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5. 59 Benchmark Participants Represent Nine Industries
Fifty-nine benchmark survey respondents from 58 companies participated in this study. More than 40
percent are directors, VPs, and C-level and a third are manager level. The rest fall under “other.” The
participants represent more than nine industries with pharma the largest segment at 30%. To add
qualitative depth to the study, eight interviews were conducted with market research leaders.
Benchmark Class
Pharmaceutical Benchmark Class
Non-Pharmaceutical Benchmark Class
R2Business Solutions
Sekisanchi LLlC
(n=18)
(n=41)
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6. Innovation Has Many Faces in Consumer Market Research
The “Innovation Insights Story” in Consumer Marketing Research reveals ongoing evolutionary change –
rather than revolutionary disruptive technology change. Innovation is broad reaching, incremental and
assumes various forms through tools, technology, process improvements and hybrid adaptations of
proven practices.
1. Most Companies Rate
Themselves Low on Market
Research Effectiveness &
Innovation
6. Seed New Innovation
Projects Where It Most
Benefits Your Existing Brands
& New Products
5. Innovation Hot Spots Exist In
Customer Flow Mapping,
Segmentation & Concept Testing.
Innovation Has Many Faces:
Process, Tools, Hybridization,
Deeper, Faster & Cheaper
Examining Innovation
Across Consumer
Marketing Research
Landscape
4. No Single Company Has
Cornered the Market on M.R.
Innovation
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2. Innovation Is Evolutionary /
Incremental Across the Market
Research Process
3. Innovation Is Widely Dispersed
But Thinly Seeded: 80% Of
Venues Are Seed Beds With 5%
to 12% of Companies Innovating
At Most Research Milestones
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7. Qualitative Key Findings: Mobile Research and Online Tools
The following key findings and insights emerged from interviews and qualitative survey responses in
this study.

Improving Report Presentations Enhances Engagement: Finding innovative or fresh ways to
present reports/studies – such as formats like Prezi or the use of dynamic visuals – is an important
way to keep staff and internal stakeholders engaged.

Mobile Research Will Be a Key Tool for Market Research in the Future: Mobile research, with
its rapid delivery of point-of-care and point-of-sale data, will be an important tool for marketing
research in the future. Seventy percent of the Pharma Segment is using mobile research either
sometimes or frequently.

Online Communities Offer Bottomless Pool of Consumer Insights: Online communities are a
valuable qualitative source of consumer insights and yet the tool appears to be underutilized. In the
Pharma Segment, 50% said they were using online communities sometimes while the other half
said they don’t use them at all.

Social Media Listening Is Another Underutilized Tool: Social Media Listening is another
underutilized tool that can inform market researchers across many topics, including product
positioning, brand awareness and customer insights. In the Pharma Segment, 40% said they don’t
use it.
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8. More than 9 Industries Participated in Innovation Study
The benchmark study group was anchored by biopharma companies, which made up 30%
of respondents. Healthcare (non-manufacturers), agencies, telecommunications, services,
consumer goods, finance and electronics companies also participated in this marketing
research innovation study.
Q1. Please identify which industry sector your company represents
Industry:
*Others:
 Utilities
 Education
 Postal
Other, 17%
Pharma, 30%
Telecommunications,
5%
Services, 15%
Finance, 2%
Healthcare, 10%
Electronics, 2%
(n=59)
Marketing/Market
Research Agencies,
15%
Consumer Goods, 3%
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9. Staff, Budget & Other Factors Impede Pharma
Pharma companies identify the same top obstacles – Insufficient staffing and budget plus “other” factors – to
MR effectiveness. Insufficient staffing is clearly seen as the principal issue. Interestingly, the overall benchmark
class sees over-reliance on quantitative data to be an issue – but pharma sees over-reliance on qualitative data
as a larger obstacle. Again, Pharma sees lack of innovation as much less of an obstacle than the class at large.
Q. If you do not feel you have a highly effective market research organization, rate what factors are impeding your
effectiveness?
Effectiveness Obstacles (Pharma):
n=
14
14
13
14
14
14
14
*
8
% of Respondents
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*Other Major
Obstacles Cited:
• "Company does not
place much
emphasis on
marketing"
• "Cultural barriers"
• "Inexperienced /
poorly training
people managers"
• "Not enough
standardized
practices/protocols
in place that would
enable capacity for
insight/ innovation"
• "Too many low
value requests
required by internal
customer base"
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10. Innovation Topography Varies Widely across MR Landscape
Market research innovation is not only about new “tools.” This Innovation Topography Map shows that
Methodologies and Tools innovation (illustrated in blue) often outpaces new tools. Some activities – such as
customer flow mapping, segmentation and concept testing are fertile grounds. In contrast, tactic testing and
target product profile testing are sterile from an innovation perspective.
Percentage of Respondents Rating Each Tool “Innovative” for Each Category:
Methodologies and Tools
Data Collection
Analysis and Interpretation
Reporting & Communicating
25%
20%
15%
10%
5%
0%
Forecasting Patient Flow Positioning Segmentation
Brand
Mapping
Research
Concept
Testing
10
Brand
Awareness
Research
Consumer
Insights
DTC
Tactic
Testing
Target
Product
Profile
Testing for
Pipeline
Products
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11. Quant and Qual Working Together Create Synergy
Innovation in market research doesn’t have to be a new tool or methodology – it can come
from finding ways to combine work streams to reduce job timelines. One participant
thought having qual and quant teams work closer together would accomplish that goal.
“We do see where qualitative is starting to inform quant where it didn’t before. I’ve been in
the offices of most major market research firms in the world and there’s usually a keypad
door separating the qualitative teams from the quantitative teams.
We’re seeing that change with online ‘qual’…we’ve got the technologies that allow us to
bring people out of a large segmentation study, a customer satisfaction survey, and bring
into a qualitative discussion for a deeper dive with them. That’s allowed the quant-qual
teams to co-mingle on these projects.
It is unbelievably common where you do a segmentation study and find some unexplained
thing and go through the keypad door and say, ‘Qual team here’s something to go
explore.’ Well that can take months…today we’re radically reducing those timelines by
giving them technology that the quants can run themselves or that makes the quant and
qual teams work together very closely.”
– Chief Innovation Officer
Qualitative
Component
Merging to
provide more
realistic Insights
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Quantitative
Component
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12. Pharma Segment: Utilization of Emerging Tools Uneven
The pharma segment appears to be building up its comfort level for some emerging market
research tools like mobile research, web-use tracking, social media listening and online
patient communities. At least half of the pharma participants said they use all these tools at
least sometimes. Meanwhile, gamification and geotracking were not used at all.
Q. Please Indicate how often you use these emerging marketing research tools when targeting patients/consumers:
Emerging Market Research Tools (Pharma):
Don't Use
Use Sometimes
Use Frequently
n=
Mobile Research:
30%
50%
20%
10
Web-Use Tracking:
30%
50%
20%
10
Listening/Mining Social Media:
Online Patient/Consumer Communities:
40%
60%
50%
10
50%
10
Gamification:
100%
10
Geotracking:
100%
10
% of Respondents
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13. TBC Segment: Cost and Regulations Stop DTC Use
Not surprisingly, the cost and regulatory hurdles that come with Direct-to-Consumer
marketing were cited as the two principal reasons for not employing campaigns.
Q. Please note all the factors that informed your rationale for not employing a DTC campaign for a new product:
Reasons for NOT USING DTC:
Not Important
Consideration
Important Consideration
Too Costly
22%
Regulatory hurdles or restrictions
21%
DTC channels weren't targeted well
enough
Niche/small specialty market
Amount of fair balance required
* Other
Condition doesn't support self-diagnosis
22%
18
56%
32%
47%
35%
29%
28%
n=
39%
38%
31%
75%
59%
% of Respondents
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17 *Other:
•"Don't do DTC"
•"Not my segment
33%
18 of the market"
•"The company
does not currently
31%
16 support this - it has
been suggested"
13% 13% 8 •"We don't really
market products
29%
12% 17 directly to
consumers"
35%
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14. Pharma Segment Doesn’t Combine MR Techniques
The practice of combining market research tools or techniques appears to be even less
prevalent in the pharma sector. Only 11 percent of participating pharma companies said
they use that approach.
Q. Have you employed innovative combinations of existing market research tools or techniques that have produced
valuable insights (such as merging survey research with online behavioral tracking)?
Innovative Hybrid Approach (Pharma):
Yes, 11%
No, 89%
(n=9)
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15. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the
simple yet profound principle that organizations can chart a course to superior economic
performance by studying the best business practices, operating tactics, and winning
strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com
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