Marketing Research (Process and Methodology)

In the constantly changing pharmaceutical market

environments characterized by vast R&D costs,
heightened competition, increased regulation, and
ever more demanding consumers,
pharmaceutical marketers are called upon daily to
make critical judgments and decisions.

They evaluate a market's potential, the possible

influence of new government regulatory
restrictions, the effect of past price lowering by
competitors, or the extent to which a new product
satisfies the needs of prescribers and patients. In
addition to their prior education and professional
experience, they rely on accurate, timely, and
detailed information describing the factors that
have, are, or will be affecting their business-
operating environment in the future.

PROCESS AND METHODOLOGY

The marketing research process can be divided into distinct steps, namely…

1. Defining the problem

2. Setting the research objectives
3. Designing the research plan
4. Selecting the optimal sample and its size
5. Collecting the data
6. Analyzing the data collected
7. Creating a model based on the data; and, finally
8. Evaluating this model and deciding on the optimal marketing strategy

A closer look at each of these important steps follows.

1. Defining the Problem

This step is critical to the whole research process because the wrong definition of a problem may lead
pharmaceutical marketers to misleading and dangerous conclusions.

A commonly employed method used in marketing research problem definition is exploratory research. This
process uses a small number of interviewees and explores their beliefs, attitudes, or actual experiences
regarding a particular product to uncover the often concealed reasons for their prescribing or purchasing
behavior. A more thorough and expansive marketing research is then designed based on these findings.

The purposes of exploratory research are…

1. To develop hypotheses;
2. To better define the problem
3. To establish research priorities
4. To collect information on research methodologies
5. To test various alternatives

2. Setting the Research Objectives

Often, research objectives are distinguished as primary and secondary objectives, with emphasis and
thoroughness placed on primary objectives, and less time and effort allotted to secondary objectives.

1
Consider the following example for better understanding primary and secondary objectives…

A migraine medication is to be introduced to the Pakistani market. The company marketers are busy creating
their product's targeting and positioning. They have conducted their exploratory research, which led them to
the definition of the following research objectives…

• Primary: Which medical specialty primarily consults migraine sufferers, what is their
practice and prescription volume, what are their unmet needs, and what are their
current prescribing habits?

• Secondary: How do they react versus the product's campaign alternatives, their brand
awareness, and competitor company image?

3. Designing the Research Plan

Research planning involves the following three main steps.

Selecting a marketing research agency

This is a very sensitive process because, when identifying an able, external partner, it must possess essential
characteristics. Marketing research agency must have recognition among pharmaceutical market, therapeutic
category expertise, considerable human resources, practical location, and reasonable prices.

Preparing the research brief for the agency

This document has to be thoroughly researched and prepared so that it clearly describes the problem and
presents all knowledge about the problem with the external partner.

Agreeing on the research plan with the agency

In order to avoid possible misunderstandings, conflicts, and delays, the final research plan is mutually agreed
upon and respectively signed.

4. Collecting the Data

The collection of primary data is done using one of the following research methodologies…

Survey
A survey is systematic research effort, collecting information from a sample of individuals, using a
questionnaire.

Observation
Observation is the systematic recording of customer behavior, events, or objects. Some of the observation
research subjects are physical actions, verbal/expressive behavior, temporal patterns, and spatial relations.

Experimentation (test marketing)

Experimentation is often used by pharmaceutical marketers to test specific product characteristics or
marketing campaign items in an effort to fine-tune their R&D or promotional activities in advance of the actual
product launch. Common examples of such tests are patients tastes and packaging testing.

6. Analysing the Data Collected

Once the data collection phase has been completed, the data are entered into a suitable electronic database
and various statistical tests are utilized for their analysis.

7. Creating a Model, Based on the Data

The systematic collection and analysis of marketing research data eventually leads to the creation of a
detailed situational model describing customer’s attitudes and behaviors. These models are extremely

2
valuable tools for marketing decision making. Examples of such models include the prescribing-decision
process maps, patient purchasing decision and follow up.

8. Evaluating the Model and Deciding on the Optimal Marketing Strategy

The final step in the marketing research process is the evaluation of the situational model by company
experts, ranging from R&D to upper management, marketing, sales, manufacturing, advertising, and others
working in functional teams toward the improvement of the product's competitive advantage.