Pharmaceutical Marketing: The Dangers of a Short-Term Focus

Someone once said, “No company ever downsized its way to greatness.’ The traits that are vital to long-term success – innovation, customer loyalty, etc. – aren’t achieved by reducing staff. Yet all Pharma appear to be in downsizing mode. A report by the Institute for Policy Studies in 2012 reported that 119,000 Pharmaceutical jobs have been lost since 2008….and yet the downsizing continues.

Pharma Job Cut
 

In times of economic stress, companies tend to think conservatively and focus on the short term. The goal becomes protecting current revenues and profits, leaving expansion and long-term planning for the future.

Since sales aren’t driving revenues, companies have turned to cost cutting to make their numbers. In 2011, Merck began to slash its workforce by 12 000 to 13 000 jobs as part of a plan to squeeze another $1.5 billion from its annual cost base by 2015. The squeeze on profit is understandable, with several recent patent expirations in many countries, including the blockbuster Singulair.
 
Merck is not alone. According to a report from the Institute for Policy Studies, 119000 Pharma jobs have been cut since 2008. Pfizer was responsible for more than 50 000, Bristol-Myers Squibb for more than 9000, Eli Lilly more than 6000, and Novartis 2000.
 

This can’t continue. Pharmaceutical companies need to demonstrate true value through increased sales and market share.

Conclusion

Marketing departments need to be front and center in this effort. That, in turn, requires long-term focus and planning rather than a focus just on the next quarterly report to investors.
Using next generation analytics to provide a deep dive into the millions of data points you have on your customers and products can provide a roadmap for you to drive profits through growth, not contraction.

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