New study finds that top-performing companies in the United States allocate budget to market research in early stage commercialization
Early Investment in Market Research Leads to Quick Sales Uptake for Pharmaceutical Brands, Says Cutting Edge Information
<0> Cutting Edge InformationEric Bolesh, 919-403-6583 </0>
Leading pharmaceutical and biotechnology companies invest heavily in market research early on to tailor messages to unmet needs. A new study finds that, on average, drug companies dedicate more money to market research prior to launch than any other activity, according to Cutting Edge Information.
The study, “: Formulas for Commercialization Success,” provides data showing that surveyed companies spent 17% of their brands’ marketing budgets on between Phase 3a to market approval for US launches. This is the highest budget allocation to any marketing initiative during this commercialization period. All other initiatives received between 3% and 12% of the marketing budget during this timeframe, according to the study.
When launching new products, pharmaceutical companies hope for a quick sales uptake. While achieving a quick uptake is not simple, drug companies that deeply examine their brands’ markets pre-launch consistently show the best results. Market research is the necessary tool that helps commercialization teams understand what patients’, doctors’ and payers’ needs within specific markets.
“Time and again, interviewed executives emphasized the importance of understanding the markets early in order to achieve a quick sales uptake,” said David Richardson, research manager at Cutting Edge Information. “By focusing commercialization efforts on uncovered market opportunities, companies are able to hit the ground running once they receive FDA approval.”
“Launching Pharmaceutical Brands: Formulas for Commercialization Success” can be found on Cutting Edge Information’s website: . This report examines 15 pharmaceutical brands’ marketing resource allocations across three key phases of drug commercialization: Phase 3 to regulatory approval, approval to launch, and launch to six months post launch. Use this report to:
For the latest research on global pharmaceutical marketing and brand launch strategy, contact Eric Bolesh at +1 919-403-6583.