Return on Investment Implications for Pharmaceutical Promotional Expenditures: The Role of Marketing-Mix Interactions

Narayanan, Sridhar; Desiraju, Ramarao; Chintagunta, Pradeep K.

doi:10.1509/jmkg.68.4.90.42734

Cited by 207 publications

(203 citation statements)

References 42 publications

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“…This fi nding is consistent with analyses from the business literature on the impact of pharmaceutical detailing on prescribing behaviors (Ching and Ishihara, 2012;Fischer et al, 2009;Huddle, 2008;Katz et al, 2010;Mizik and Jacobson, 2004;Narayanan et al, 2004;Velasco et al, 2011). Although there are ethical considerations regarding the nexus of health care organizations and pharmaceutical companies (Huddle, 2008;Katz et al, 2010), important lessons might be learned from a more nuanced investigation of the detailing strategies that are being used in the context of SUD treatment.…”

Section: Discussionsupporting

confidence: 68%

The Transition to Medication Adoption in Publicly Funded Substance Use Disorder Treatment Programs: Organizational Structure, Culture, and Resources

Knudsen

Roman

2014

J. Stud. Alcohol Drugs

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ABSTRACT. Objective: Medications for the treatment of substance use disorders (SUDs) are not widely available in publicly funded SUD treatment programs. Few studies have drawn on longitudinal data to examine the organizational characteristics associated with programs transitioning from not delivering any pharmacotherapy to adopting at least one SUD medication. Method: Using two waves of panel longitudinal data collected over a 5-year period, we measured the transition to medication adoption in a cohort of 190 publicly funded treatment organizations that offered no SUD medications at baseline. Independent variables included organizational characteristics, medical resources, funding, treatment culture, and detailing activities by pharmaceutical companies. Results: Of 190 programs not offering SUD pharmacotherapy at baseline, 22.6% transitioned to offering at least one SUD medication at follow-up approximately 5 years later. Multivariate logistic regression results indicated that the employment of at least one physician at baseline, having a greater proportion of Medicaid clients, and pharmaceutical detailing were positively associated with medication adoption. Conclusions: Adoption of pharmacotherapy was more likely in programs that had greater medical resources, Medicaid funding, and contact with pharmaceutical companies. Given the potential expansion of Medicaid under the Affordable Care Act, patients served by publicly funded programs may gain greater access to such treatments, but research is needed to document health reform's impact on this sector of the treatment system. (J. Stud. Alcohol Drugs, 75, 476-485, 2014)

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Section: Discussionsupporting

confidence: 68%

The Transition to Medication Adoption in Publicly Funded Substance Use Disorder Treatment Programs: Organizational Structure, Culture, and Resources

Knudsen

Roman

2014

J. Stud. Alcohol Drugs

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“…When accounting has the upper hand over marketing, decisions are based on historical accounting records, with risk-taking discouraged, and marketing prescribed for achieving short-term goals. This is misguided practice, since marketing's long-term impact can be much stronger than its short-term impact (Pauwels, Silva-Risso, Srinivasan and Hanssens, 2004;Narayanan, Desiraju and Chintagunta, 2004).…”

Section: The Importance and Challenge Of Gaining Board Statusmentioning

confidence: 99%

Denial at the top table: status attributions and implications for marketing

Davies

Ardley

2012

Journal of Strategic Marketing

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“…It has been suggested that DTCA can help in expanding the market, in gaining market share, and in improving drug compliance by patients (Wosinska 2005). Empirical evidence suggests that DTCA has a significant impact on the category or product class sales (Wosinska 2003, Narayanan et al 2004, Iizuka and Jin 2005. At the same time, much of pharmaceutical advertising is at the brand level, and patients' requests for specific drug brands may influence physicians' prescribing Bala and Bhardwaj: Detailing vs. Direct-to-Consumer Advertising Management Science 56(1), pp.…”

Section: Introductionmentioning

confidence: 99%

Detailing vs. Direct-to-Consumer Advertising in the Prescription Pharmaceutical Industry

Bala

Bhardwaj

2010

Management Science

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The pharmaceutical industry has always used sales representatives to target physicians (detailing), who are a key link in sales and market share for prescription pharmaceuticals. Since August of 1997, when the Food and Drug Administration eased the restrictions on direct-to-consumer advertising (DTCA), there has been a dramatic increase in the use of DTCA by pharmaceutical firms to target end customers (patients). DTCA seems to have two different effects on pharmaceutical markets. The first is to inform patients about the availability of drugs for some ailments, thus expanding the market (constructive). The second is to persuade patients to talk about specific brands when they meet physicians, with the objective of influencing market share (combative). We consider both effects of DTCA in the presence of a detailing program in a competitive environment. We incorporate the dynamics of physician-patient interaction in a game-theoretic model where firms decide on the form of DTCA to adopt (constructive or combative) and then compete in the marketplace by choosing detailing and DTCA levels. We answer four questions: What is the impact of adopting DTCA on competitive intensity? How do optimal detailing levels for a firm change with the adoption of DTCA? How should the DTCA strategy for a firm vary depending on whether it is stronger or weaker in its degree of influence in the physician's office? Finally, under what conditions would competing firms voluntarily decide to pursue constructive DTCA?pharmaceutical marketing, detailing, game theory

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Return on Investment Implications for Pharmaceutical Promotional Expenditures: The Role of Marketing-Mix Interactions

Cited by 207 publications

References 42 publications

The Transition to Medication Adoption in Publicly Funded Substance Use Disorder Treatment Programs: Organizational Structure, Culture, and Resources

The Transition to Medication Adoption in Publicly Funded Substance Use Disorder Treatment Programs: Organizational Structure, Culture, and Resources

Denial at the top table: status attributions and implications for marketing

Detailing vs. Direct-to-Consumer Advertising in the Prescription Pharmaceutical Industry

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