RESEARCH TRIANGLE PARK, N.C.--()--As drugs move through development, pharmaceutical brand teams shift more than one quarter of their market research spending allocations to advertising and promotions, according to a new study by Cutting Edge Information.
“This leaves the majority of funding available for providing the brand the best marketing support to garner the greatest market share within its first six months following launch.”
To compete in today’s pharmaceutical market place, drug manufacturers pay particular attention to brands’ commercialization efforts between Phase 3 trials and the six months following launch. Brand teams develop pharmaceutical marketing mix strategies that effectively support their brands’ needs through the commercialization period. While no two strategies will look alike, there are trends that carry across successful commercialization spending mixes.
“Launching Pharmaceutical Brands: Formulas for Commercialization Success,” a recent study from Cutting Edge Information, found between Phase 3a and market approval for US launches, brand teams allocated an average of 20.8% of their spending to decision support and 34.6% to advertising and promotion. Decision support allocation drops to 14.3% during the market approval to launch period, and again to 7.4% from launch to six months post-launch. Conversely, advertising allocations rise to 40.6% during market approval to launch and 53.8% from launch to six months post-launch.
“Typically, all of the necessary market research spending is exhausted prior to launch, with only minimal amounts necessary for continued coverage,” explains David Richardson, senior research analyst at Cutting Edge. “This leaves the majority of funding available for providing the brand the best marketing support to garner the greatest market share within its first six months following launch.”
“Launching Pharmaceutical Brands: Formulas for Commercialization Success” (http://www.cuttingedgeinfo.com/research/marketing/pharmaceutical-brand-launch/) examines 15 pharmaceutical brand’s marketing resource allocations across three key phases of drug commercialization: Phase 3 to regulatory approval; approval to launch; and launch to six months post launch. Use this report to:
- Plan brand marketing budgets and win necessary resources for commercialization.
- Know when and how much to invest in specific advertising and promotion, market access, decision support and medical affairs activities.
- Develop a strategic marketing mix for your brand.