Sunday, February 24, 2008

Beyond Advertising: The Pharmaceutical Industry's Hidden Marketing Tactics

Beyond Advertising: The Pharmaceutical Industry's Hidden Marketing Tactics
http://www.prwatch.org/node/7026
In early January, the U.S. House Committee on Energy and Commerce began investigating celebrity endorsements in television ads for brand-name drugs. The investigation was sparked by Pfizer's commercials for its best-selling cholesterol drug Lipitor. These direct-to-consumer (DTC) ads feature Dr. Robert Jarvik, a pioneer in the development of the artificial heart. Viewers are not told that Jarvik is not a cardiologist, nor is he licensed to practice medicine. His presentation as a trusted expert, Pfizer presumably hopes, is enough to persuade viewers to ask their doctors for Lipitor by name. And that would help erode the increasing competition from generic alternatives.
 
DTC ads have been controversial since the Food and Drug Administration (FDA) loosened the rules governing pharmaceutical marketing in 1997. Before Lipitor made headlines, there was Viagra. Pfizer's "Viva Viagra!" campaign was criticized by the FDA and organizations including the AIDS Healthcare Foundation, who said the DTC ads encouraged recreational use of the erectile dysfunction drug. One print ad suggested that Viagra be used to "celebrate" events such as the Super Bowl or New Year's Eve.
 
While troubling, DTC ads represent only 14 percent of pharmaceutical companies' marketing budgets. By the time a 30-second drug commercial airs, the company has conducted months of segmentation studies, held dozens of meetings to define the "communication target" (typically a woman, usually a mother, and of a certain income), and spent millions of dollars to develop the drug's brand and its market. This strategic marketing, which represents the remaining 86 percent of drug promotion expenses, should receive at least as much attention from regulators and lawmakers as DTC ads.
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