MARKETING IN LIFE SCIENCES. Module Director: Yannick Drolet
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1 43 Executive MBA in Management of Technology MoT MARKETING IN LIFE SCIENCES Module Director: Yannick Drolet February 17 19, 2015 at EPFL, Innovation Park, Building E, 1st Floor Module Leaders Yannick L. Drolet, Regional Business Manager at AstraZeneca and lecturer on several MBA programs at the University Laval, University Sherbrooke and UQAM, Canada. Lisa A. Tétreault, Manager Strategic Capabilities, GlaxoSmithKline, Canada Overview This module uses a mixture of readings, lectures and discussions of real-life cases to provide integrating concepts and hands-on problem solving. Debates and the sharing of experience add to create a learning experience that is focused on shaping your thinking about marketing of life sciences rather than to provide cook-book solutions. This is based on the belief that you cannot develop a sound marketing strategy unless you first understand the problem or the situation. Cook-book solutions rarely work in practice because every situation is somehow unique and there are no universal marketing solutions. On the other hand, some basics and useful tools will be explored to reflect real-life approaches. Goals and Learning Outcomes The purpose of this module is to improve your expertise in evaluating and formulating strategic marketing decisions. The key challenge managers in the life sciences sector face today is to grow their business and make it more profitable in increasingly competitive and global markets that change at an ever faster pace. With so much happening at the same time and in different places, it is important that managers focus their attention to the key drivers of their markets. This module is therefore designed to help you: Improve your ability to understand customers, competitors, channels and the larger context in which they operate; Improve your command of marketing concepts and methods to design, implement and evaluate marketing strategies. Evaluation Participants will be evaluated on the basis of individual contribution in class (50%) and with a visual mapping homework (50%) based on the cases and the lectures, by Monday March 9, 9am. MoT - EPFL, Odyssea Building, Station 5, CH-1015 Lausanne
2 Place / Time Who Main Topics Assignment / Class Activities Tues :15-10:45 Yannick Drolet Part 1: What Is Marketing? Review of industry environment and challenges. Review of basic marketing principles and functions and their application to the life science industries. Industry competitor analysis and customer analysis. Role of marketing in building and sustaining a competitive advantage to create value for customers and shareholders. 10:45-11:05 Break 11:05-12:45 Group Work Becton-Dickinson case Case Discussion Becton-Dickinson case 12:45-14:15 Lunch (together at Cafétéria BC) 14:15-15:45 Yannick Drolet Part 2: Innovation: Actual and New Markets 15:45-16:15 Break Review of basic political, economic, social and technological trends and their impact on life sciences. New product diffusion and adoption process. Clients and market. 16:15-17:45 Group Work CTS case Case Discussion CTS case 2
3 Place / Time Who Main Topics Assignment / Class Activities Wed :15-10:45 Yannick Drolet Part 3: Positioning: Value Creation Segmentation, targeting, positioning. Developing and implementing a positioning strategy. From a strategic perspective to a tactical plan. Direct-toconsumer marketing. 10:45-11:15 Break 11:15-12:45 Group Work Lipitor case Case Discussion Lipitor case 12:45-14:15 Lunch (together at Cafétéria BC) 14:15-15:45 Yannick Drolet Part 4: Sales analysis, Forecasts and Pricing Considerations 15:45-16:15 Break Sales analysis techniques and dashboards. Annual marketing systems. Review of basic principles of pricing and forecasting. 16:15-17:45 Group Work The Medicines Company case Case Discussion The Medicines Company case 3
4 Place / Time Who Main Topics Assignment / Class Activities Thu :15-10:45 Yannick Drolet Part 5: Sales Forces involvement and CRM Actual gaps between Sales and Marketing. Sales techniques. Sales language. Sales force management and training. Customer Relationship Management (CRM) 10:45-11:15 Break 11:15-12:45 continued 12:45-14:15 Lunch (together at Cafétéria BC) 14:15-15:45 Lisa Tétreault Part 6: Putting it all together: Build a Strong Customer Experience with Real Commercial Competencies 15:45-16:15 Break 16:15 17:45 Putting it all together: conclusion! Synthesis through a visual mapping exercise MoT - EPFL, Odyssea Building, Station 5, CH-1015 Lausanne 4
5 Bill of materials CASES (provided before the module and to be read in advance) 1. Becton-Dickinson & Company: VACUTAINER Systems Division (condensed) (F. Cespedes and V. K. Rangan, HBS case ) 1. Who is BD s customer? 2. Why has BD been successful? 3. What is BD s distribution system? 4. How is it affected by the market changes? 5. Which of APG s 3 requests 20% discount, private label, APG distributors should B&D agree to in return for 90% of APG s business? 2. CardioThoracic Systems (CTS) (D. S. Gardner, HBS case ) 1. What do you think of the underlying innovation? 2. How does it create (more) value for customers? 3. How has CTS done so far? Why? 4. What are the obstacles to adopting the CTS device? Of these, which is most critical? 5. What should CTS do in the near term and how would you define success? 3. Lipitor (Reinhard Angelmar, INSEAD, ECCH ) 1. What do you think of W-L s decisions during the development of Lipitor? 2. How good was Lipitor compared to existing statins? 3. What challenges had W-L/Pfizer to overcome with the launch strategy for Lipitor? 4. What explains Lipitor s successful launch? 5. How serious a threat are Zocor s recent approvals (80mg tablet, 20mg starting dose, HDL-C indication)? What should Lipitor do? Should it advertise directly to patients? 4. The Medicines Company (John Gourville, HBS case ) 1. How much value does Angiomax create? 2. How much is it worth? 3. Explain the wiliness-to-pay (WTP) concept 4. What is a hospital s wiliness-to-pay (WTP)? 5. What are the drivers of WTP? 6
6 References and Suggested Readings 1. For Market Orientation: Customer-Focus and Managing Customer Loyalty, in Best, Market-Based Management, 4 th ed., Prentice Hall, 2004, pp For Industry & Competitive Analysis: Industry Analysis, Ch. 11 in Besanko, Dranove, & Shanley, Economics of Strategy, 2 nd ed., John Wiley, 2000, pp For Market Segmentation: Intra-Industry Analysis, Ch. 4 in Grant, Contemporary Strategy Analysis, 3 rd ed., Blackwell Publishers, 1998, pp For Product Positioning: Brand Knowledge Structures, Ch. 3 in K.L. Keller, Strategic Brand Management, Prentice Hall, 1998, pp For Healthcare Economics: Basic types of economic evaluation, Ch. 2 in Drummond, O Brien, Stoddart, & Torrance, Methods for the Economic Evaluation of Health Care Programmes, 2 nd ed., Oxford University Press, 1997, pp For B2B Marketing: Interpersonal Dynamics of Business Buyer Behavior, Ch. 5 in E.G. Brierly, R.W. Eckles & R.R. Reeder, Business Marketing, 3 rd ed. Prentice Hall, 1998, pp For Global Marketing: Developing a Global Mindset, Ch. 7 in J.-P. Jeannet and H. D. Hennessey, Global Marketing Strategies, 5 th ed. Houghton Mifflin, 2001, pp For Portfolio Management: Resource Allocation Methods, Ch. 8 in V.R. Rao & J.H. Steckel, Strategic Marketing, Addison Wesley, 1998, pp For Sales Forces Management: Jones, Eli, Steven P. Brown, Andris A. Zoltners, and Barton A. Weitz (2005), The Changing Environment of Selling and Sales Management, Journal of Personal Selling and Sales Management, 25, 2 (Spring), Bibliography Aaker, David (2007), Strategic Market Management, 8 th ed., Wiley. Best, Roger J. (2012), Market-Based Management, 6 th ed., Prentice Hall. Capon, N. (2008). «Managing Marketing in the 21st Century», Wessex Pr. Darmon, René-Yves (2006). Leading the Sales Force: A Dynamic Management Process. Kotker et Simon. (2004). Construire une biomarque. Le Marketing des biotechnologies. Pearson, Kotler, P. (2003). Les clés de marketing. Pearson. Nagle, Thomas T. and Reed K. Holden (2003), The Strategy and Tactics of Pricing. McGraw-Hill. Lambin Jean-Jacques, (2002), «Marketing stratégique et opérationnel», Éditions Dunod. Reinartz, Werner and V. Kumar (2005), Customer Relationship Management, Wiley. Rogers, J. (2004), Market-Based Management, 4th ed., Prentice Hall. Smith Mickey C., (1996), Pharmaceutical Marketing in the 21st century, Paperback. SMITH Mickey C., KOLASSA Mick E.M., PERKINS Greg, SIECKER Bruce, (2002), «PharmaceuticalMarketing: Principles, Environment and Practice», Éditions Paperback. All the information contained in this module description is subject to change without notice. 6
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