CORE COMPETENCY AND DYNAMICS OF HEALTHCARE MARKETING

SALIL S. KALLIANPUR

When you closely observe developments across different sectors of industry including other

spheres of healthcare and overlap them with those in the pharmaceutical arena, interesting

patterns emerge. These days, strategy planners within a wide range of healthcare-related

businesses are forced to constantly evaluate new market opportunities while navigating

through endless diversions created by hype. From the most respected scientific journals to

leading marketing and financial publications, the noise emanating from media (social or

otherwise) regularly publicizes the promise of new technologies, diagnostics and therapeutics.

This brings to fore the need to discuss whether core competencies of companies will remain

the same? In other words, will a pharmaceutical company limit itself to just that, or will the

demarcation between companies and other healthcare providers blur significantly?

Core competencies are particular strengths relative to other organizations in the industry

which provide the fundamental basis for the provision of added value. In the pharmaceutical

sector, this means that companies focused on creating better products than competitors

since that was the best thing they could do. The core business model remaining the same –

product made, brought to market, information created through clinically studying that

product, and that information disseminated to customers (doctors) and consumers

(patients/patients’ families or caregivers). The model did have its share of “innovation”, yet

remained more or less the same.

In the last few years, technological advancement has allowed collaboration to present itself

as an opportunity to wary marketers who considered themselves boxed in by ever tightening

regulations. Health - a public good – and providing healthcare – more privately run than by

the state - has been steadily identified as an opportunity to grow in by companies across

industries. Information technology (IT) providers, for instance – both hardware and

software – have made remarkable strides in creating products and services ranging from

supercomputers used to decipher the human genome to complex software used to design

personalized medicines, to hand held mobile health solutions for the end-user.

A need to collaborate with IT providers for creating customized products, with

telecommunication companies to distribute those products, services and information to the

far reaches of the Earth, with public and private hospitals to use both the products and

improved information is required to tap into high-potential markets. Learning from the

creative solutions created in other sectors also will become more a “need-to-do” strategy.

While there are enormous gains to be made in multiple emerging markets, these

opportunities are overwhelming, and often “the next best thing.” The somewhat ambiguous

concept of “emerging markets” encompasses the majority of hyped claims. However, at the

end of the day, any improvements in patient outcomes through these initiatives are the need

of the hour. At the moment, pharma executives and health practitioners alike may regard

these ideas, and many similar novel tools to hit the market in the near future, as

investigational or unproven. Despite a lack of clarity, some novel tools such as mobile health

or mHealth, telemedicine, initiatives such as ITC’s E-chaupal model to spread health

awareness, using tourists, the Indian Postal system and other volunteers as cost-effective
distribution channels at ‘bottom-of-pyramid’ locations etc. will drive the development of

market microcosms, each with fairly significant growth projections.

After all, in the rapidly changing environment, pharmaceutical companies must look at an

evolved model so that:

1. It provides consumer benefits

2. It is not easy for competitors to imitate

3. It can be leveraged widely to many products and markets.

Most Big Pharma companies have traditionally done everything from research and

development (R&D) through to commercialization themselves. However, by the end of this

decade, this model will no longer work for many organizations. If they are to prosper, they

will need to improve R&D productivity, reduce costs, tap the potential of emerging

economies and switch from selling medicines to managing outcomes – activities few, if any,

companies can accomplish on their own. Even the largest pharmaceutical companies will

have to collaborate with other organizations to develop effective new medicines more

economically, help patients manage their health and ensure that the products and services

they provide really make a difference. To achieve this, they may have to step far outside the

sector to find some of the partners they need.

 SALIL S. KALLIANPUR
I am just another guy caught in the quagmire of pharmaceutical
marketing, trying to get my two cents across through my blog and
this newsletter. I haven't worked outside the pharmaceutical
industry and outside the sales & marketing function. I sincerely
hope that there will be people from other industries and domains
who will deem it fit to share their views and rich experiences. Last
but not least, I am no John Mack, so do forgive the limitations in
views expressed! It is my sincere hope that this newsletter helps
each of us understand how our work in healthcare marketing
intersects with life, in general, and helps us to become better human
beings.

Thank you for sparing time to read this issue of

The Pharma Reviews Marketing Forum
Newsletter. I hope you liked it!

This newsletter will benefit from your feedback and suggestions.

Please feel free to write to me at salilkallianpur@yahoo.com or
skallianpur@gmail.com with your comments and suggestions on
how to make this better and more interesting.

I would be very happy to receive your suggestions on topics that

you think I should include in this monthly newsletter. If you
think I should feature something that you wrote, I will be happy
to do it.

Salil S. Kallianpur