Marketing mix insights from real-world evidence study

As countries across the world continue to deal with the aftermath of the pandemic, pharma and life sciences companies also face an evolving landscape for interacting with healthcare systems. To navigate these changes effectively, companies rely on econometric models. Our analysis of these econometric Marketing Mix models on promotional spend data with product-level sales revealed a comprehensive insight on the impact of each channel in the life sciences industry especially in context of the COVID-19 pandemic.

The findings highlight the shift towards digital channels, such as emails and remote or phone calls, due to the pandemic and evolving HCP preferences. The analysis reveals a significant misalignment between HCPs’ preferred channels and the actual promotional efforts they receive, indicating room for optimization. [1]

Source: IQVIA Promo Impact model, with data provided from IQVIA ChannelDynamics and IQVIA MIDAS. Each time period is defined as follows: pre-pandemic is Q2 2016 to Q1 2020; mid-pandemic is Q2 2020 to Q4 2021; post-pandemic is Q1 2022 to Q1 2023.

Building on the analysis, the model reveals that the shift towards digital channels varies significantly by country, influenced by cultural and demographic factors. For instance, Italy shows a higher preference for face-to-face interactions compared to the UK. The analysis also highlights variations in promotional impact across therapy areas, with oncology showing higher impactable sales from digital promotions compared to respiratory therapies. These insights underscore the need for tailored promotional strategies to maximize ROI. [2]

Source: IQVIA Promo Impact model, with data provided from IQVIA ChannelDynamics and IQVIA MIDAS. Each product is classified based on the therapy area for which its sales are highest, using IQVIA MIDAS Disease.

Adapting Marketing Mix analysis to changing pharma market landscape

While Marketing Mix Modeling could uncover crucial insights as above, a key challenge that shines in today's dynamic digital marketing landscape is the constant interplay of variables that makes isolating true cause behind specific effects extremely challenging. Furthermore, a successful marketing mix model (MMM) thrives on the synergy between its components. This is where the necessity of designed MMM analysis such as Causal Marketing and supplementing Promotion Synergy or Sequencing prevails.

Causal Marketing is an approach that combines several techniques to transcend the MMM limitations of the correlational based studies. Ideally, pharma and life sciences companies should incorporate multi-dimensional features [ref. Fig below] in MMM analysis to establish a causal relationship between promotion variables and sales.

Promo Synergy or Sequencing on the other hand is a symphony where each element – advertising, social media, public relations, and sales efforts – works together to create a powerful, unified message. This is the concept where individual promotional activities are strategically combined to amplify their collective impact [ref. Image below].

The future consideration of Marketing Mix modelling in healthcare

The future of Marketing Mix Modeling (MMM) in the pharmaceutical and consumer health industries is set to evolve significantly, driven by technological advancements, changing consumer behaviors, and regulatory landscapes. Here are the main key trends and developments to consider:

1. Integration of Advanced Analytics and AI

• Enhanced Data Processing: AI and machine learning will play a crucial role in processing vast amounts of data from various sources, providing deeper insights and more accurate predictions.
• Predictive Analytics: These technologies will enable predictive analytics, allowing companies to forecast the outcomes of different marketing strategies and adjust their approaches proactively.

2. Real-Time Data and Dynamic Modeling

• Real-Time Insights: The integration of real-time data will allow for dynamic modeling, enabling companies to quickly adapt to market changes and optimize their marketing efforts on the fly.
• Agility: This agility will be crucial in responding to rapidly changing market conditions and consumer behaviors, particularly in the fast-paced pharmaceutical and consumer health sectors.

3. Cross-Channel Attribution

• Holistic View: MMM will evolve to provide a more holistic view of marketing effectiveness across multiple channels, helping companies understand the interplay between different marketing activities and their collective impact on sales and brand perception.
• Omnichannel Strategies: The adoption of omnichannel marketing strategies will become more prevalent, ensuring consistent and cohesive messaging across all touchpoints.

4. Focus on ROI and Value-Based Metrics

• ROI Measurement: There will be a greater emphasis on measuring the return on investment (ROI) of marketing activities, with MMM providing more granular insights into the financial impact of different strategies.
• Value-Based Marketing: Companies will focus on value-based metrics, assessing the broader impact of their marketing efforts on patient outcomes and overall brand value.

5. Personalization and Patient-Centric Approaches

• Tailored Marketing: There will be a greater focus on personalized marketing strategies, leveraging patient data to tailor messages and campaigns to individual needs and preferences.
• Patient Engagement: Enhanced patient engagement through personalized content and communication channels will become an even more pivotal focus, improving patient outcomes and satisfaction.

6. Collaboration with Healthcare Providers

• Integrated Campaigns: Future MMM strategies will likely involve closer collaboration with healthcare providers, aligning marketing efforts with healthcare goals and patient care objectives.
• Shared Insights: Sharing insights and data with healthcare providers will help create more effective and integrated marketing campaigns, ultimately benefiting patients.

7. Regulatory and Compliance Considerations

• Compliance Integration: MMM will need to incorporate regulatory and compliance considerations, ensuring that marketing strategies adhere to legal and ethical standards while still being effective.
• Data Privacy: With increasing scrutiny on data privacy, companies will need to ensure that their data collection and analysis methods comply with regulations such as GDPR and HIPAA.

These trends highlight the imperative for the pharmaceutical, MedTech and consumer health industries to adapt and elevate their MMM approach, to continue navigating a complex and evolving market landscape and sustain competitiveness.

IQVIA Promo Mix Suite – Future MMM Enabler

IQVIA Promo Mix Suite is a powerful Automated MMM tool designed to optimize promotional strategies and enhance marketing effectiveness. It leverages custom based algorithms and advanced technologies like Generative AI to simplify budget planning across different channels. It can help marketing teams to achieve better outcomes and timely reflect HCP evolving preferences and market dynamics by:

• Simplifying data processing with its automation features,
• Transforming complex analytical tasks into efficient, and collaborative exercises,
• Creating MMM-based “what-if” scenario to help marketing/brand team plan out the next budget,
• Leveraging IQVIA’s extensive benchmark repository (250+ brands covered across globe) categorized by geography, market segment, and lifecycle stage to generate multi-dimensional market benchmarks.

Interested in learning more about how IQVIA Promo Mix Suite tool can create solutions to help you drive healthcare forward? Contact us.