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Marketing essentials for referral-based healthcare providers

Big Pharma Bans Freebies

On July 10, 2008, Pharmaceutical Research and Manufacturers of America (PhRMA) released a new code of conduct for sales reps.  They have banned gifts such as pens, mugs, pads, clip boards, etc.  They have also banned meals at restaurants as gifts and tickets to sporting events.  Pharmaceutical sales reps may only provide food in a prescriber’s office when the food is offered in conjunction with an educational presentation.  The new rules take effect on January 1.  PhRMA members Johnson & Johnson, Merck, Amgen, Eli Lilly, and AstraZeneca have already pledged compliance with the new guidelines. Reports conflict about the extent to which the ban will be mandatory for PhRMA members. 

This marketing decision from the nation’s major pharmaceutical companies reflects an important shift in attitudes among your referral sources.  Marketing managers interested in keeping their doctors happy need to understand why PhRMA made this bold move.  Referral-based healthcare providers need to make a strategic decision about whether they will step in line with the marketing practices of Big Pharma.

The Associated Press quoted Ken Johnson, PhRMA senior vice president, as saying, “There’s been a backlash to some of our members’ sales and marketing practices. . .Prudence dictates that we take a look at the problem and see if we can address concerns of physicians and patients.”  You may recall that the AdVisor reported earlier how 43% of prescribers “opposed” free lunches.  Referring to logo gifts, Billy Tauzin, CEO of PhRMA, told Reuters, “It has the look of an unprofessional relationship. . . Removing that look is important.”

Marketing professionals sometimes refer to small gifts bearing the company logo as “reminder items.”  Clearly, a doctor who earns in excess of $100,000 per year will not be unprofessionally influenced by an inexpensive pen, mug, or pad.  The fact of the matter is that doctors have a wide range of options for treating almost any condition that walks through their doors.  Reminder items help promote top of mind awareness for specific companies. 

A release from PhRMA states that meetings between sales representatives and doctors should be focused on informing health care professionals about products, sharing scientific and educational information, and supporting research and education.  Indeed, communication that meets this description will meet the approval of even the most discerning referral source. 

There are methods that enable referral-based healthcare providers to do both, inexpensively.  You can simultaneously build top-of-mind awareness and provide research and education to your referral sources.  If you have questions about this, feel free to contact Brazzell Marketing Agency.