Bringing Drugs to Market The role of CRM in improving sales & marketing (Review Report)

• Falling margins in Pharma increasing ROI through CRM
• Formulating an effective CRM strategy
• CRM Spending in the Pharmaceutical Industry, 2006-2012
• The increasing importance of CRM in the pharma industry

• Gain a insight into market drivers and inhibitors within CRM in the Pharma Industry.
• View the market size of CRM in Pharmaceuticals from 2006-2012 for Europe, North America and Japan.
• Understand how the technological developments are going to affect your go-to-market strategies.

Overview

Catalyst

Summary

Executive Summary

Introduction

Falling margins in Pharma - increasing ROI through CRM (Market Focus)

Formulating an effective CRM strategy (Strategy Focus)

The increasing importance of CRM in the pharma industry (Technology Focus)

Future Spending of CRM Technologies, North America and Japan, 2006-2012 (Databook)

Future Spending of CRM Technologies, Europe, 2006-2012 (Databook)

Table of Contents

Table of figures

Table of tables

Falling margins in Pharma - increasing ROI through CRM (Market Focus)

Summary

Pharmaceutical companies are facing a multi-layered assault on their profit margins

The pharmaceutical industry is facing pressures from all sides

The end of an era for blockbuster drugs

Lack of drugs coming to market is only compounding the pharmaceutical industry's problems

Power to the people: fuelling the need for CRM in Pharmaceuticals

The patient is becoming an important influencer within the decision making process

The sales force has become less effective fuelling the need for a new strategy

Lack of ROI to date is holding pharmaceutical companies back from investing in CRM

Pharmaceutical companies are yet to see a ROI on their older CRM investments

Pharmaceutical companies do not have sufficient reference points for other CRM implementations

While an enterprise wide solution CRM solution is sought it can slow down the rate of implementation

Despite these inhibitors Datamonitor projects strong growth

Each region is producing differing challenges for the pharmaceutical industry

The US has the most consumer driven drugs market

Japan and Italy have cost constraints set by their governments on drug pricing

Pharmacoeconomics are becoming increasingly important in the UK

ACTIONS

Vendors need to use their references to help sell CRM solutions

The changing customer means vendors need to evolve their solutions

Formulating an effective CRM strategy (Strategy Focus)

Summary

Pharma companies need to increase drugs' profitability during their profit window

Sales need to be more effective in a short period of time

Getting the message of the new drug across is essential

A genericized trademark is the 'holy grail' for pharmaceutical companies

Viagra - a success story of branding

CRM and unified communications can help to make a reduced sales force more effective

Unified communications will help to increase sales

An effective communication strategy is based around the sharing of information

Knowledge of the physician is crucial to making the most of the time spent with them

Having a flexible sales force can allow market changes to be cushioned and demands shifted

Pharma needs to come up with an effective long term sales strategy and be less conservative

CRM solutions should be part of creating a coordinated marketing and sales approach

Coordination means communication from all departments

At the heart of this approach must be sales and marketing working in tandem

Pharma companies need CRM solutions that manage both the patient and physician

Reaching the patient is continuing to increase in importance

Providing the patient with sufficient advice and information is crucial as they become key influencers

As pharmacogenomics becomes more prevalent pharma companies need an appropriate strategy

ACTIONS

Vendors need to provide CRM solutions that can target different customers

Coordinated CRM solutions are essential to provide pharma with increased profit margins

The increasing importance of CRM in the pharma industry (Technology Focus)

Summary

Creating a unified enterprise wide solution for the industry is crucial

Large CRM companies are likely to dominate

Systems Integrators will continue to increase in importance a implementations become more complex

Unified enterprise wide solutions are crucial to provide an improved ROI

As M&A activity takes place vendors need to ensure that CRM systems can be integrated

A clear front runner for the future of CRM in pharmaceutical companies is yet to emerge

Analytic CRM is going to increase in importance within the industry

Analytical CRM can help pharma companies to comply with regulations

Mobile solutions will enable unified communications for the industry

SFA still is, and will remain so, the most important aspect of CRM

Ease of use is crucial to ensure optimum use of mobile solutions

Training programs that can be completed remotely and easily

SFA applications need to meet the needs of the sales force to ensure they effectively use solutions

As the sales force is highly mobile solutions' functionality should reflect this

The increase in mobile solutions will present opportunities for different vendors

Multiple vendors being involved will mean partnerships continue to increase in importance

Solutions should be able to adapt to the specific needs of the pharmaceutical industry

The complexity of the influencers within pharmaceuticals creates challenges for CRM solutions

There are a number of complex characteristics for the pharma industry

The complexities of the pharma industry requires sophisticated CSA and MA

ACTIONS

An understanding of the complex nature of the pharma industry is crucial

Unified solutions are crucial to help tie in the disparate parts of pharma companies

Vendors should market themselves on their ability to provide mobile solutions

Future Spending of CRM Technologies, North America and Japan, 2006-2012 (Databook)

Introduction

Software and Services Market Size in USA, 2006-2012

Software and Services Market Size in Canada, 2006-2012

Software and Services Market Size in Japan, 2006-2012

Future Spending of CRM Technologies, Europe, 2006-2012 (Databook)

Introduction

Software and Services Market Size in France, 2006-2012

Software and Services Market Size in Germany, 2006-2012

Software and Services Market Size in Italy, 2006-2012

Software and Services Market Size in Rest of EMEA, 2006-2012

Software and Services Market Size in Switzerland, 2006-2012

Software and Services Market Size in United Kingdom, 2006-2012

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: How likely are the following factors to affect or impact your prescribing decisions?

Table 2: Software and Services Market Size for CRM in Pharmaceuticals in the USA, 2006-2012

Table 3: Software and Services Market Size for CRM in Pharmaceuticals in Canada, 2006-2012

Table 4: Software and Services Market Size for CRM in Pharmaceuticals in Japan, 2006-2012

Table 5: Software and Services Market Size for CRM in Pharmaceuticals in France, 2006-2012

Table 6: Software and Services Market Size for CRM in Pharmaceuticals in Germany, 2006-2012

Table 7: Software and Services Market Size for CRM in Pharmaceuticals in Italy, 2006-2012

Table 8: Software and Services Market Size for CRM in Pharmaceuticals in the Rest of EMEA, 2006-2012

Table 9: Software and Services Market Size for CRM in Pharmaceuticals in Switzerland, 2006-2012

Table 10: Software and Services Market Size for CRM in Pharmaceuticals in the United Kingdom, 2006-2012

List of Figures

Figure 1: The pharmaceutical industry is facing pressures pricing from all sides

Figure 2: NMEs per year vs. Global R&D spend ($billion) 1980 - 2003

Figure 3: How CRM can maximize sales force effectiveness

Figure 4: Process by which patients become more influential in drug prescription

Figure 5: How likely are the following factors to affect or impact your prescribing decisions?

Figure 6: CRM in pharmaceuticals market for Europe, North America and Japan, 2006-2012

Figure 7: Percentage CRM market share in pharmaceuticals, 2007

Figure 8: CRM in pharmaceutical market size in Italy and Japan, 2006-2012

Figure 9: Increasing the profit from a drug during its lifecycle

Figure 10: Total CRM spending from 2006-2012

Figure 11: Market size for CRM by application from 2006-2012 in North America, Japan and EMEA

Figure 12: Diagram illustrating different strategies of pharmaceutical companies

Figure 13: Marketing Automation market size from 2006-2012

Figure 14: Market size for software and services in CRM for EMEA, North America and Japan, 2006-2012

Figure 15: Comparison of niche and leading CRM vendors in the pharmaceutical industry

Figure 16: US Customer Analytics Market, 2006-2012

Figure 17: Analytical CRM sitting alongside the data can view the whole sales process

Figure 18: Global market share for CRM by type of application, 2007

Figure 19: Software and Services Market Size for CRM in Pharmaceuticals in the USA, 2006-2012

Figure 20: Software and Services Market Size for CRM in Pharmaceuticals in Canada, 2006-2012

Figure 21: Software and Services Market Size for CRM in Pharmaceuticals in Japan, 2006-2012

Figure 22: Software and Services Market Size for CRM in Pharmaceuticals in France, 2006-2012

Figure 23: Software and Services Market Size for CRM in Pharmaceuticals in Germany, 2006-2012

Figure 24: Software and Services Market Size for CRM in Pharmaceuticals in Italy, 2006-2012

Figure 25: Software and Services Market Size for CRM in Pharmaceuticals in the Rest of EMEA, 2006-2012

Figure 26: Software and Services Market Size for CRM in Pharmaceuticals in Switzerland, 2006-2012

Figure 27: Software and Services Market Size for CRM in Pharmaceuticals in the United Kingdom, 2006-2012