Omnichannel Marketing Mix in the Life Science industry
How to maximize stakeholders’ engagement while optimizing investments in a multi-stakeholder / multi-touchpoint environment
The current global life science industry is characterized by great volatility, with a competitive landscape constantly evolving due to an increasing number of stakeholders in the customer journey, exploiting the newest channels and technologies. As a result, the vast amount of available information from a variety of alternative sources leads customers to continuously change their behavior and preferences.
The customer journey has historically been influenced by multiple stakeholders such as physicians, pharmacists and consumers / patients; the weight that the single stakeholders have at each stage of the customer journey is drastically changing: from a single-stakeholder environment, primarily focused on physicians, to a multi-stakeholder environment, where other stakeholders are taking on an increasingly significant role and patients have access to wider knowledge through online research and peer comparisons.
In this context, pharmaceutical companies are facing the challenge of moving away from a channel-based approach and siloed structures, where different internal functions work as totally separate departments, to an omnichannel mindset in which functions collaborate and contribute to a “one-company” approach.
To thrive in this constantly evolving and fast-paced environment, companies must adapt and adjust their strategies as scenarios evolve. This requires exploring potential developments in the marketing mix, with a strong emphasis on digital assets and omnichannel initiatives.
It is essential to understand that, especially in the life science industry, due to the extent and diversity of the available product portfolios, the optimal marketing mix can vary significantly not only between organizations but also across different business units within the same company, depending on the features of the products and the journey of the customers.
A critical question therefore arises: How to maximize stakeholders’ engagement through an effective marketing mix while optimizing investments?
To determine the optimal marketing mix, the following three-step approach can be adopted:
- Evaluate the weight of each stakeholder / touchpoint in the customer journey based on product characteristic
- Firstly, to ensure an effective allocation of marketing investments, it is essential to comprehend the features of the products in scope, such as their market share and patient carryover. By identifying these characteristics, it is possible to determine the weight each stakeholder / touchpoint has at each stage of the decision-making process of the customer journey (which may vary significantly depending on the product) and to figure out the magnitude of the unexplored potential market which could represent an ideal growth opportunity (aligned with product strategic positioning)
- Analyze the competitive environment
- Through benchmarking and intelligence analysis, it is possible to assess the competitive landscape, determining the marketing and commercial activities of other market players and how they leverage available channels and technologies to engage specific stakeholders
- Define budget allocation and initiatives
- Based on the insights gained from previous analysis, a detailed action plan can then be defined, prioritizing actions on specific key touchpoints, in line with the company’s overall strategy (such as increasing revenue or marginality) while considering the available budget.
The application of this methodology has led to noteworthy results in the life science industry, even in contexts where resources for marketing investments and commercial activities were limited.
Among others, the evaluation of the marketing mix contributed to successful outcomes in the following cases:
- a multinational pharma company identified the pharmacist as the main touchpoint in the customer journey for their mature drugs portfolio
- a leading Italian pharma company decided to dramatically leverage digital channels to direct marketing initiatives to customers (with double-digit growth even after 3 years!)
For further information, please contact:
Flavia GHISONI
f.ghisoni@eurogroupconsulting.it
Giovanni FALORNI