Pharma marketing’s changing skills set
pharmafile | October 21, 2003 | Feature | Business Services, Sales and Marketing |Â Â marketing, recruitment, skillsÂ
Sales and marketing are undergoing something of a revolution as the pharmaceutical industry reacts to a multitude of challenges. Waning pipelines, generic erosion, regulatory restrictions, new technologies and a changing customer base have set up a race to find high-calibre commercial executives. Consequently companies are looking for individuals with the flexibility and strategic vision to innovate marketing practices to meet both global and local needs.
Consumer sector inspiration?
With ever-dwindling pipelines, pharma companies are desperately seeking to maximise revenue generation from existing as well as future products. Brands are being considered more seriously as a vital source of wealth creation within a company, with commentators increasingly advocating using the learnings and principles from the consumer goods industry in order to maximise revenue generation.
The influence from the consumer sector is already starting to make itself known, at least at the more senior levels, with some high-flyers from the FMCG arena having made the move over to pharma. However, although companies are increasingly looking to the consumer goods arena, the proof of the pudding lies in whether these principles can be successfully applied in the pharma industry environment.
Alan Kent, an International Marketing Consultant with Medical Radar, a strategic marketing consultancy, has noted that some of the larger pharma companies are employing marketers from the FMCG sector. Although he believes that consumer marketers can add real value, some caution is needed as, for some, the leap from consumer to pharma marketing can prove too great with some individuals struggling with getting to grips with, in particular, the peculiarity of the pharma industry's strict regulatory systems. For Alan, individuals who come from consultancies after a solid career in pharma marketing would equally be of interest and he wonders whether individuals from the OTC and diagnostic sectors would perhaps more easily adapt into pharma?
Bengt Avodin, a country General Manager for Novo Nordisk, agrees that with the need to innovate, some inspiration will undoubtedly come from the consumer sectors with examples being frequent flyer programmes, subscription activities and consumer clubs, although he argues that consumer marketing is not necessarily the only solution. He stresses that as the legal situation changes in many countries, buying decisions are becoming increasingly complex with ever more stakeholders.
Overall, the general consensus appears to be that pharma marketing needs to innovate, although not everyone thinks that consumer marketing is the solution. Many marketers are sceptical as to whether the direct-to-consumer advertising situation in the US will ever be replicated in Europe.
Marketing skills shortages
Euromedica has not seen a shortage in any particular skill area, it is however relatively rare to find a combination of several key facets, such as solid sales and marketing experience combined with strong strategic vision and interpersonal / people management competencies. That is not to say that certain key specialist skills are not in demand. As the number of stakeholders rises, marketing strategies have had to shift with patient advocacy becoming increasingly important. In addition, concerted efforts by governments to evaluate the cost vs. therapeutic value of a given product mean that experience and knowledge of health value assessments will be highly sought after.
Interestingly, some skills that might be taken for granted are still lacking. Bengt Avodin argues that, whether at global or local levels, marketers are not able to sufficiently 'sell' their ideas. He points out that there is often a disparity between seasoned marketers – who are put in leadership positions when a launch is about to take place – and the HQ individuals who may have been taken on either from business schools or consultancies. Although the junior marketers are often up-to-date with the latest in marketing strategy and theory, this knowledge is not always communicated to senior marketers within the organisation.
Alan Kent concurs that the ability to communicate and manage upwards is absolutely crucial for individuals wanting to succeed at an international level. When making the switch from an affiliate to a HQ role, it is essential to bond with senior managers in order to get internal sponsorship. He says marketers in the larger pharma companies are still not taking a 'stakeholder approach' with the willingness and ability to drive partnerships with other pharma companies. He also points out that, with the increasing focus on softer interpersonal competencies, actual marketing skills are sometimes overlooked.
Nevertheless, Alan feels that there is still a need for specialist marketers but that companies may need to come up with creative ways of rewarding and acknowledging this talent. Having worked in pharma marketing for over 20 years, Alan has frequently seen how companies offer management roles as a career advancement strategy. However, in some instances this has had disastrous effects, resulting both in poor leadership and the specialist knowledge being lost to the organisation. With the days of the blockbuster fading and with diverse pipelines becoming the norm, he believes that marketers with multi-market, multi-therapeutic area knowledge and the flexibility to adapt quickly to new challenges will be in demand.
Bengt also questions the sense in trying to make all new drugs become blockbusters, advocating a degree of scepticism with regards to the forecasting of some of these new products. Bengt contends that: "Marketers should be able to sell the idea of a profitable niche product instead of launching the blockbuster theme all the time." He also finds that there is a lack of consistency and implementation and stresses that basic marketing know-how would go far if kept consistent. For both affiliate and HQ marketers, he sees being a visionary, having a strategic mind-set, being an effective communicator with strong analytical skills as key.
Skills in demand
David Briscoe, an independent consultant specialising in commercial strategy, agrees that, particularly at a global level, vital skills are not only the ability to operate strategically but also the capacity to see the big picture. He says that he would like to see individuals travelling more, working across different countries in order that they experience the dynamics of different markets, achieving a real understanding of different cultures. This is a sentiment held by many who feel that the value of having had first-hand experience of working in several countries/markets cannot be underestimated as it helps ensure that global versus local marketing needs can be effectively managed.
It will not have gone unnoticed that an increasing number of commentators are arguing for applying consumer marketing principles to healthcare in order to capitalise on revenue from existing as well as pipeline products. Although there is evidence of cross-fertilisation, with marketers from the consumer sector having made the switch to the pharma industry, in reality companies are still, at most levels, seeking professionals with solid pharma marketing experience.
Innovative and strategic marketers with highly evolved interpersonal and management skills combined with multi-market, multi-therapeutic area knowledge will always be in demand. With the increasing numbers of stakeholders, a broader set of skills and a special mindset are required to be able to market products to more than one group. Therefore those marketers with specialist expertise in the areas of patient advocacy and health assessments are likely to be highly sought after.
Carina Sonnak is a Consultant at Euromedica, an international executive search consultancy specialising exclusively in the healthcare and life science sectors.
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