90-Minute Advantage - Course Outlines - Pitfalls in Building a Promotion Response Model

Promotion response models for pharmaceuticals are tools that enable marketing management to allocate resources to those elements of the marketing mix that have the highest correlation to performance.

Understand the purpose of promotion response models
Identify data that must exist to build a model
Know basic statistical concepts used to build promotion response models, including variability versus ROI
How to best use promotion response models
Understand the limits of the model and when to go beyond the model

Discussion of when a promotion response model can be built
1. Types of data
2. Historical needs (eg, minimum of 2 years of data)
Working with marketing, sales operations, and other departments to track programs for the purposes of the model and ROI analyses
1. Promotion response models and "marketing efficiency"
2. Promotion response models and ROI analyses
Basic statistics underlying promotion response models
1. Multivariate techniques such as linear regression
2. Isolating the effects of one variable at a time
3. The effects of multicollinearity
4. Impact of "noise" in the data (eg, unexpected adverse publicity on the drug)
Expected output
Using the output
1. Spend levels
2. Optimize marketing mix
3. Eliminate least effective elements of mix
4. Examining "what if" scenarios
5. Guidance in the event of budget cuts
Applying subjective input for decision-making
Choosing a vendor to build your promotion response model
1. Econometric and statistical qualifications
2. Level of understanding of pharmaceuticals versus benefit of cross-industry experience

Each participant will receive a 2-sided laminated card with key learnings from the course

Leslie Goldberg, Executive Vice President

666 Godwin Avenue, Suite 320
Midland Park, NJ 07432
p: 201-670-7722 ext. 205
f: 201-670-8707
lgoldberg@advantageh.com