Unleash & Optimize the True Potential of Your Marketing Spend
Muthu Saravanan Ramanathan
Head, Product Development & Innovation
Swetank Gupta
Associate Consultant
Marketing spend being a key expenditure for all pharma companies, it requires considerable attention to optimize the spend across marketing channels, especially at a time when the pharmaceutical industry is under the pressure of rising health care cost and constantly changing landscape with the rapid growth of disruptive treatment types and health technologies. As the number of channels to reach stakeholders keep increasing the key challenge that every marketing team faces is coming up with the strategy that covers the right mix of conventional & digital channels that drives incremental sales by maximizing ROI
In this regard D Cube has devised a Marketing Mix – Spend Optimization solution by overcoming critical real-world challenges as follows
- One of the classical and primary issue, is different spend data available at different levels of geography. Leveraging our proprietary DDS data foundation platform created a master data integrating various spend data available at different levels that include,
Professional spend data (Physician detailing events, promoted events, samples, non-personal promotion) at the physician level, and
Consumer spend data (Internet, Mail, TV, Journal, Co-pay card, E-voucher / Coupons) available at Zip/DMA level or National level by categorized them as national and local variables
- Next challenge is to capture the carry over effect of marketing activity that spread across months, as it is observed that the effect of the marketing activity is not immediate but delayed across few months, built a lag distribution model that captures the impact that spans across the months by channel
- Another major issue is the high correlation that exists between the predictors (channel contribution) towards the sales, developed a transformation model to overcome this issue and produced channel wise response curves to account for the diminishing returns and to find out the contribution of each of the channels. Finally calculated the Average Marginal Return (AMR) and Marginal return on investment (mROI) to identify the sales due to marketing activity to come up with the optimal allocation for each of the channels
Contact us to request a demo to find out how D Cube can help you to optimize your marketing spend and maximize the ROI