Analyzing ROI's for Rx Drugs to increase revenues

Arthur M. Mahoney

This paper describes an independent study which examined the rate of return on investment for four of the most frequently used promotional tactics in the pharmaceutical industry.

analyzing rOI's for rx drugs to increase revenues

Results show reallocating funds to advertising in medical publications can improve revenues and ROIs

Arthur M. MahoneyBay Head Consulting Group

Prescription pharmaceutical marketers have a number of promotional tactics available to help generate brand awareness and prescriptions. Four primary promotional tactics alone accounted for an estimated $11 billion in promotional expenditures during 2000. Detailing, or sales calls (excluding samples), accounted for $6 billion of that amount, $2.5 billion was spent on direct-to-consumer advertising, just over $0.5 billion was allocated to advertising in medical publications, and $1.9 billion was for physician meetings...

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